HHS awards $45M for Pharmaceutical Prep Manufacturing to Elusys Therapeutics Inc
Contract Overview
Contract Amount: $44,971,900 ($45.0M)
Contractor: Elusys Therapeutics Inc
Awarding Agency: Department of Health and Human Services
Start Date: 2015-11-02
End Date: 2021-09-30
Contract Duration: 2,159 days
Daily Burn Rate: $20.8K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: IGF::OT::IGF FOR OTHER FUNCTIONS
Place of Performance
Location: PINE BROOK, MORRIS County, NEW JERSEY, 07058
Plain-Language Summary
Department of Health and Human Services obligated $45.0 million to ELUSYS THERAPEUTICS INC for work described as: IGF::OT::IGF FOR OTHER FUNCTIONS Key points: 1. Spending of $44.97M over 6 years on pharmaceutical preparation manufacturing. 2. Competition was full and open after exclusion of sources. 3. Risk of reliance on a single vendor for critical supplies. 4. Sector focus on pharmaceutical preparation manufacturing.
Value Assessment
Rating: fair
The contract value of $44.97M over 6 years appears reasonable for pharmaceutical preparation manufacturing, but without specific product details or market benchmarks, a precise valuation is difficult. The fixed-price structure provides cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition after exclusion of sources, suggesting a competitive process was initiated. However, the 'exclusion of sources' clause warrants further investigation into why specific sources were excluded and if this limited the competitive pool.
Taxpayer Impact: Taxpayer funds are being used for critical pharmaceutical preparation manufacturing, which is essential for public health preparedness. The cost-effectiveness of this contract will determine the ultimate taxpayer impact.
Public Impact
Ensures availability of essential pharmaceutical preparations for public health emergencies. Supports a company in the pharmaceutical manufacturing sector. Potential for long-term supply chain security for critical medical countermeasures.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for limited competition due to 'exclusion of sources'.
- Long contract duration (6 years) may not adapt to rapidly changing needs.
- Dependence on a single awardee for critical supplies.
Positive Signals
- Addresses a critical need in public health preparedness.
- Fixed-price contract provides cost predictability.
- Awarded through a competitive process.
Sector Analysis
This contract falls within the Pharmaceutical Preparation Manufacturing sector, which is vital for national security and public health. Spending benchmarks for similar contracts can vary widely based on the specific product, quantity, and duration.
Small Business Impact
The data does not indicate any specific set-asides for small businesses. Further analysis would be needed to determine if small businesses were involved as subcontractors or if opportunities were missed.
Oversight & Accountability
The contract was awarded by the Office of Assistant Secretary for Preparedness and Response (ASPR) within HHS, an agency focused on public health emergencies. Oversight would involve monitoring delivery, quality, and adherence to contract terms.
Related Government Programs
- Pharmaceutical Preparation Manufacturing
- Department of Health and Human Services Contracting
- Office of Assistant Secretary for Preparedness and Response Programs
Risk Flags
- Potential for limited competition due to 'exclusion of sources'.
- Long contract duration may lead to obsolescence or unmet evolving needs.
- Dependence on a single vendor for critical supplies.
- Lack of specific product details hinders comprehensive value assessment.
Tags
pharmaceutical-preparation-manufacturing, department-of-health-and-human-services, nj, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $45.0 million to ELUSYS THERAPEUTICS INC. IGF::OT::IGF FOR OTHER FUNCTIONS
Who is the contractor on this award?
The obligated recipient is ELUSYS THERAPEUTICS 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 $45.0 million.
What is the period of performance?
Start: 2015-11-02. End: 2021-09-30.
What specific pharmaceutical preparations are being manufactured under this contract, and what is their criticality to national health security?
The specific pharmaceutical preparations are not detailed in the provided data. However, given the awarding agency (ASPR), it is highly probable that these preparations are critical medical countermeasures or supplies intended for use during public health emergencies, such as pandemics or bioterrorism events. Their criticality lies in ensuring the nation has adequate resources to respond effectively to such threats.
What were the reasons for excluding certain sources during the 'full and open competition after exclusion of sources' process, and did this exclusion impact the final price?
The reasons for excluding specific sources are not provided. This exclusion could stem from various factors, such as the unique capabilities of the selected vendor, specific technical requirements, or prior performance issues with other potential bidders. If the exclusion significantly narrowed the competitive field, it could have potentially led to a higher final price than if a broader competition had been feasible.
How does the $44.97M contract value compare to industry benchmarks for similar pharmaceutical preparation manufacturing contracts, considering the 6-year duration?
Without knowing the exact nature and quantity of the pharmaceutical preparations, a direct comparison to industry benchmarks is challenging. However, a $44.97M contract over six years averages approximately $7.5M annually. This figure needs to be assessed against the complexity, scale, and market price of the specific products being manufactured to determine if it represents good value for taxpayer money.
Industry Classification
NAICS: Manufacturing › Pharmaceutical and Medicine Manufacturing › Pharmaceutical Preparation Manufacturing
Product/Service Code: RESEARCH AND DEVELOPMENT › N – Health R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 25 RIVERSIDE DR STE 1, PINE BROOK, NJ, 07058
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $44,971,900
Exercised Options: $44,971,900
Current Obligation: $44,971,900
Actual Outlays: $950
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HHSO100201300010I
IDV Type: IDC
Timeline
Start Date: 2015-11-02
Current End Date: 2021-09-30
Potential End Date: 2021-09-30 00:00:00
Last Modified: 2021-05-18
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