HHS awards $477M for vaccines to Sanofi, highlighting full and open competition for biological products
Contract Overview
Contract Amount: $477,208,080 ($477.2M)
Contractor: Sanofi Vaccines US Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2017-04-01
End Date: 2018-03-31
Contract Duration: 364 days
Daily Burn Rate: $1.3M/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 7
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: IGF::OT::IGF 2017 VACCINE FOR CHILDREN
Place of Performance
Location: SWIFTWATER, MONROE County, PENNSYLVANIA, 18370
Plain-Language Summary
Department of Health and Human Services obligated $477.2 million to SANOFI VACCINES US INC. for work described as: IGF::OT::IGF 2017 VACCINE FOR CHILDREN Key points: 1. The contract value of $477.2 million is substantial, indicating significant demand for the specified vaccines. 2. Sanofi Vaccines US Inc. is the sole awardee, suggesting a competitive bidding process for this specific contract. 3. The risk appears moderate, given the nature of vaccine procurement and the firm fixed price contract type. 4. This spending falls within the 'Biological Product (except Diagnostic) Manufacturing' sector, a critical area for public health.
Value Assessment
Rating: good
The contract value of $477.2 million for biological products appears reasonable given the scale and duration. Benchmarking against similar large-scale vaccine procurements would provide further context on pricing efficiency.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically drives competitive pricing. The firm fixed price contract type further ensures cost certainty for the government.
Taxpayer Impact: Full and open competition is expected to yield fair market prices, maximizing taxpayer value for essential public health resources.
Public Impact
Ensures availability of critical vaccines for children, supporting public health initiatives. Supports the Centers for Disease Control and Prevention's mission to protect public health. The procurement process indicates a commitment to competitive sourcing for essential medical supplies.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price fluctuations in biological product manufacturing.
- Dependence on a single supplier for a critical public health need.
Positive Signals
- Awarded under full and open competition.
- Firm fixed price contract provides cost certainty.
- Supports a vital public health program.
Sector Analysis
This contract falls under the Biological Product (except Diagnostic) Manufacturing sector, which is crucial for national health security. Spending in this sector can vary significantly based on public health needs and research advancements.
Small Business Impact
The data does not indicate any specific set-asides for small businesses. Large-scale vaccine procurements often involve major pharmaceutical manufacturers, but subcontracting opportunities may exist.
Oversight & Accountability
The contract was awarded by the Department of Health and Human Services, with oversight from the Centers for Disease Control and Prevention. Standard contract management and oversight processes would apply.
Related Government Programs
- Biological Product (except Diagnostic) Manufacturing
- Department of Health and Human Services Contracting
- Centers for Disease Control and Prevention Programs
Risk Flags
- Potential for supply chain disruptions.
- Dependence on a single manufacturer.
- Need for ongoing quality assurance.
- Market concentration in vaccine production.
Tags
biological-product-except-diagnostic-man, department-of-health-and-human-services, pa, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $477.2 million to SANOFI VACCINES US INC.. IGF::OT::IGF 2017 VACCINE FOR CHILDREN
Who is the contractor on this award?
The obligated recipient is SANOFI VACCINES US INC..
Which agency awarded this contract?
Awarding agency: Department of Health and Human Services (Centers for Disease Control and Prevention).
What is the total obligated amount?
The obligated amount is $477.2 million.
What is the period of performance?
Start: 2017-04-01. End: 2018-03-31.
What is the historical pricing trend for this specific vaccine or similar vaccines procured by the government?
Analyzing historical pricing data for this vaccine or comparable government-procured vaccines would reveal if the current $477.2 million award represents a favorable or unfavorable price point over time. This context is crucial for assessing long-term value and identifying potential cost-saving opportunities in future procurements.
What are the specific risks associated with relying on Sanofi Vaccines US Inc. for this significant volume of vaccines?
Risks could include supply chain disruptions, manufacturing issues, or potential quality control problems specific to Sanofi. Dependence on a single supplier for a critical public health need like childhood vaccines necessitates robust contingency planning and continuous monitoring of the supplier's performance and capacity.
How effectively does this contract contribute to the overall goals of the Vaccines for Children program?
This contract directly supports the Vaccines for Children program by ensuring the supply of necessary vaccines. Its effectiveness is measured by the program's ability to maintain high vaccination rates, prevent disease outbreaks, and achieve its public health objectives, all while ensuring the vaccines are delivered efficiently and affordably.
Industry Classification
NAICS: Manufacturing › Pharmaceutical and Medicine Manufacturing › Biological Product (except Diagnostic) Manufacturing
Product/Service Code: MEDICAL/DENTAL/VETERINARY EQPT/SUPP
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: 2017N18099
Offers Received: 7
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Genzyme Corporation
Address: 1 DISCOVERY DR, SWIFTWATER, PA, 18370
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $1,150,836,466
Exercised Options: $1,150,836,466
Current Obligation: $477,208,080
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NOT OBTAINED - WAIVED
Timeline
Start Date: 2017-04-01
Current End Date: 2018-03-31
Potential End Date: 2018-03-31 00:00:00
Last Modified: 2022-04-30
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