HHS awards $111.7M for antigen-sparing vaccine development to Seqirus Inc
Contract Overview
Contract Amount: $111,755,114 ($111.8M)
Contractor: Seqirus Inc
Awarding Agency: Department of Health and Human Services
Start Date: 2007-01-17
End Date: 2019-08-31
Contract Duration: 4,609 days
Daily Burn Rate: $24.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 10
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: TAS::75 0140::TAS ADVANCE DEVELOPMENT OF ANTIGEN-SPARING
Place of Performance
Location: EMERYVILLE, ALAMEDA County, CALIFORNIA, 94608
Plain-Language Summary
Department of Health and Human Services obligated $111.8 million to SEQIRUS INC for work described as: TAS::75 0140::TAS ADVANCE DEVELOPMENT OF ANTIGEN-SPARING Key points: 1. Significant investment in advanced vaccine research and development. 2. Competition was full and open, suggesting market-based pricing. 3. Contract duration is substantial, indicating a long-term project. 4. Focus on R&D in life sciences, a critical sector for public health.
Value Assessment
Rating: good
The contract value of $111.7M over approximately 12.6 years suggests a significant R&D investment. Benchmarking against similar large-scale, long-term R&D contracts is difficult without more specific cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive pricing. The fixed-fee structure provides some cost control for the government.
Taxpayer Impact: Taxpayer funds are supporting critical research into advanced vaccine technology, potentially leading to improved public health outcomes.
Public Impact
Advancement of vaccine technology to combat future health threats. Potential for improved public health preparedness and response. Investment in scientific innovation within the life sciences sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration may present scope creep risks.
- Cost-plus contracts can incentivize spending if not closely monitored.
Positive Signals
- Supports critical R&D in a vital public health area.
- Full and open competition promotes market efficiency.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on life sciences. Spending in this area is crucial for innovation but can be subject to long development cycles and uncertain outcomes.
Small Business Impact
The data indicates the awardee is Seqirus Inc., a large pharmaceutical company. There is no explicit indication of small business participation in this specific contract award.
Oversight & Accountability
The contract was awarded by the Department of Health and Human Services, Office of Assistant Secretary for Preparedness and Response, suggesting oversight from a relevant agency. Monitoring the progress and cost-effectiveness of this long-term R&D effort will be key.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences
- Department of Health and Human Services Contracting
- Office of Assistant Secretary for Preparedness and Response Programs
Risk Flags
- Long contract duration
- Cost-plus contract type
- Uncertainty inherent in R&D projects
- Potential for scope creep over extended period
Tags
research-and-development-in-the-physical, department-of-health-and-human-services, ca, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $111.8 million to SEQIRUS INC. TAS::75 0140::TAS ADVANCE DEVELOPMENT OF ANTIGEN-SPARING
Who is the contractor on this award?
The obligated recipient is SEQIRUS INC.
Which agency awarded this contract?
Awarding agency: Department of Health and Human Services (Office of Assistant Secretary for Preparedness and Response).
What is the total obligated amount?
The obligated amount is $111.8 million.
What is the period of performance?
Start: 2007-01-17. End: 2019-08-31.
What specific milestones or deliverables are associated with this cost-plus fixed-fee contract to ensure value for money?
The contract details should outline specific research phases, experimental targets, and data submission requirements. Regular reviews by the contracting officer are essential to track progress against these milestones and ensure the fixed fee remains justified by the work performed. Without clear deliverables, the cost-plus nature could lead to inefficiencies.
How will the government ensure the long-term effectiveness and adaptability of the developed antigen-sparing technology?
Effectiveness will likely be assessed through rigorous preclinical and clinical trials, as well as ongoing scientific review. Adaptability could be built into the contract by requiring modular research designs or the development of platforms that can be modified for different pathogens. Post-award monitoring and potential follow-on contracts for specific applications will be crucial.
What is the projected return on investment for the taxpayer given the significant R&D expenditure and uncertain development timelines?
The return on investment is primarily measured by the successful development of a novel vaccine technology that enhances public health preparedness and reduces the burden of infectious diseases. While direct financial returns are unlikely, the societal benefit of a more effective vaccine against potential future pandemics represents a significant, albeit intangible, ROI.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences
Product/Service Code: RESEARCH AND DEVELOPMENT › N – Health R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: DHHSORDCVB0508
Offers Received: 10
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: CSL Behring L.L.C. (UEI: 753243823)
Address: 475 GREEN OAKS PKWY, HOLLY SPRINGS, NC, 27540
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Manufacturer of Goods, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $111,755,114
Exercised Options: $111,755,114
Current Obligation: $111,755,114
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NOT OBTAINED - WAIVED
Timeline
Start Date: 2007-01-17
Current End Date: 2019-08-31
Potential End Date: 2019-08-31 00:00:00
Last Modified: 2019-06-24
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