HHS awarded $51.5M for H1N1 vaccine bulk, a critical public health need during the 2009 pandemic

Contract Overview

Contract Amount: $51,500,000 ($51.5M)

Contractor: Sanofi Vaccines US Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2009-12-01

End Date: 2010-01-15

Contract Duration: 45 days

Daily Burn Rate: $1.1M/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: SANOFI PASTEUR - PURCHASE OF H1N1 BULK VACCINE AT 15UG HA

Place of Performance

Location: SWIFTWATER, MONROE County, PENNSYLVANIA, 18370, UNITED STATES OF AMERICA

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $51.5 million to SANOFI VACCINES US INC. for work described as: SANOFI PASTEUR - PURCHASE OF H1N1 BULK VACCINE AT 15UG HA Key points: 1. The contract secured a vital public health resource during a critical period. 2. Awarded under full and open competition, suggesting a broad market search. 3. The short performance period indicates an urgent response to a specific health threat. 4. Fixed-price contract type helps manage cost certainty for the government. 5. The bulk vaccine purchase addresses a large-scale public health requirement. 6. The award was made by the Office of the Assistant Secretary for Preparedness and Response (ASPR), highlighting its emergency nature.

Value Assessment

Rating: good

The $51.5 million award for H1N1 bulk vaccine appears reasonable given the urgent public health need and the scale of the pandemic response. While direct comparisons are difficult due to the specific nature of pandemic preparedness contracts, the fixed-price structure provides cost control. The benchmark of $11.4 million in prior comparable awards suggests this contract was within a similar range for bulk vaccine procurement, indicating a potentially good value for money in a high-stakes situation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. This approach is generally preferred as it maximizes the potential for competitive pricing and innovation. The fact that a specific vendor, SANOFI VACCINES US INC., was awarded the contract suggests they were the most advantageous offer based on the evaluation criteria, which could include price, technical capability, and delivery schedule.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down prices through market forces and ensures the government receives the best possible value by considering a wide range of potential suppliers.

Public Impact

The primary beneficiaries are the general public, who gain access to a critical vaccine during a pandemic. The service delivered is the provision of bulk H1N1 vaccine, essential for mass immunization efforts. The geographic impact is national, aiming to protect the U.S. population. Workforce implications include the manufacturing and distribution efforts by the contractor, and potentially public health workers administering the vaccine.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price fluctuations in future pandemic preparedness contracts if competition is not consistently robust.
Reliance on a single vendor for a critical public health resource could pose supply chain risks.
The short performance window might have limited the number of potential bidders or increased urgency pricing.

Positive Signals

Awarded under full and open competition, indicating a broad market search and potential for competitive pricing.
Fixed-price contract type provides cost certainty for the government.
Secured a critical public health resource during a declared health emergency.

Sector Analysis

This contract falls within the pharmaceutical and biotechnology sector, specifically focusing on vaccine manufacturing. The market for pandemic preparedness and response is specialized, often involving large-scale production capabilities and stringent regulatory compliance. Comparable spending benchmarks in this area are highly variable, depending on the specific disease, vaccine type, and global demand. The $51.5 million award reflects the significant investment required for bulk vaccine production to meet national public health needs.

Small Business Impact

There is no indication that this contract involved small business set-asides. Given the scale and specialized nature of bulk vaccine manufacturing, it is likely that only large, established pharmaceutical companies possess the necessary infrastructure and expertise. Subcontracting opportunities for small businesses might exist in ancillary services related to logistics, distribution, or raw material sourcing, but are not explicitly detailed in the award information.

Oversight & Accountability

The contract was awarded by the Department of Health and Human Services (HHS), a major federal agency with established oversight mechanisms. The Office of the Assistant Secretary for Preparedness and Response (ASPR) specifically focuses on national health security and emergency preparedness, implying a high level of scrutiny. Transparency is generally maintained through federal contract databases like FPDS. Inspector General jurisdiction would likely apply to ensure the proper use of funds and adherence to contract terms.

Related Government Programs

HHS Pandemic Preparedness Programs
CDC Vaccine Procurement
BARDA Contracts
Strategic National Stockpile Acquisitions

Risk Flags

Urgent Public Health Need
Short Performance Period
Bulk Vaccine Procurement

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $51.5 million to SANOFI VACCINES US INC.. SANOFI PASTEUR - PURCHASE OF H1N1 BULK VACCINE AT 15UG HA

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 (Office of Assistant Secretary for Preparedness and Response).

What is the total obligated amount?

The obligated amount is $51.5 million.

What is the period of performance?

Start: 2009-12-01. End: 2010-01-15.

What was the specific H1N1 strain targeted by this bulk vaccine purchase?

The data indicates the purchase was for 'H1N1 BULK VACCINE'. This refers to the influenza A (H1N1) virus that caused the 2009 pandemic, often referred to as swine flu. The bulk vaccine would have been the active pharmaceutical ingredient that was later formulated, filled, and finished into individual doses for public administration. The specific strain details would have been critical for the manufacturer, Sanofi Pasteur, to ensure the correct antigen was produced for effective immunization against the circulating pandemic virus.

How does the $51.5 million award compare to other pandemic-related vaccine procurements by HHS?

Comparing this $51.5 million award directly to other pandemic vaccine procurements requires access to historical data on similar large-scale, urgent acquisitions. However, the 'br' field in the provided data, showing '1144444', might represent a benchmark or prior award value. If 'br' signifies a comparable prior award, then $51.5 million is significantly higher, suggesting either an increase in market prices, a larger quantity procured, or a different scope of work. Pandemic preparedness contracts are highly variable due to the unpredictable nature of outbreaks, the specific vaccine technology, and the urgency of the need, making direct comparisons challenging without more context on the 'br' value.

What were the key evaluation criteria used in the full and open competition for this contract?

While the provided data specifies 'FULL AND OPEN COMPETITION', it does not detail the specific evaluation criteria used for selecting Sanofi Pasteur. Typically, for such critical procurements, evaluation criteria would likely include factors such as: technical approach (manufacturing capability, quality control), past performance (track record with vaccines and government contracts), delivery schedule (ability to meet the urgent timeline), and price. The government aims to select the offer that represents the best value, balancing these factors to ensure a reliable supply of effective vaccine under the specified terms and conditions.

What is the significance of the 'bulk vaccine' aspect of this award?

Procuring 'bulk vaccine' means the government acquired the concentrated, unformulated active ingredient from the manufacturer. This is a crucial step in the vaccine supply chain. Instead of buying finished, ready-to-administer doses, the government (or a designated contractor) would then handle the subsequent steps: formulation (mixing the bulk with other necessary components), filling into vials or syringes, finishing (labeling, packaging), and distribution. This approach can offer flexibility and potentially cost savings by allowing the government to manage the final stages of production and distribution, especially during a rapidly evolving public health crisis.

What risks are associated with a sole vendor securing a large portion of a pandemic vaccine supply?

While this contract was awarded under full and open competition, the fact that Sanofi Pasteur secured this specific award highlights potential risks associated with relying on a limited number of manufacturers for critical public health resources like pandemic vaccines. Risks include: supply chain disruptions (if the sole vendor faces manufacturing issues, raw material shortages, or geopolitical instability), price escalation in future procurements if competition diminishes, and potential delays in vaccine availability if demand surges beyond the vendor's capacity. Diversifying the supplier base and maintaining robust stockpiles are common strategies to mitigate these risks.

How did the short performance period (45 days) impact the contract's execution and pricing?

The extremely short performance period of 45 days (December 1, 2009, to January 15, 2010) indicates a highly urgent requirement, likely driven by the immediate threat of the H1N1 pandemic. This compressed timeline would have placed significant pressure on the contractor, Sanofi Pasteur, to rapidly scale up production or reallocate resources. Such urgency can influence pricing, potentially leading to higher costs due to expedited manufacturing processes, overtime labor, and the need for immediate raw material sourcing. For the government, it signifies a critical need that outweighed concerns about potentially higher costs associated with rapid delivery.

Industry Classification

NAICS: Manufacturing › Pharmaceutical and Medicine Manufacturing › Medicinal and Botanical Manufacturing

Product/Service Code: MEDICAL/DENTAL/VETERINARY EQPT/SUPP

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: RFPHHSBARDA0825

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Sanofi Pasteur MSD SNC (UEI: 577272925)

Address: 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: $51,500,000

Exercised Options: $51,500,000

Current Obligation: $51,500,000

Contract Characteristics

Multi-Year Contract: Yes

Parent Contract

Parent Award PIID: HHSO100200800073I

IDV Type: IDC

Timeline