HHS awards $21.6M contract for drugs and biologicals to Novartis Vaccines, utilizing full and open competition

Contract Overview

Contract Amount: $21,590,800 ($21.6M)

Contractor: Novartis Vaccines and Diagnostics, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2012-08-20

End Date: 2013-08-19

Contract Duration: 364 days

Daily Burn Rate: $59.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: DRUGS AND BIOLOGICALS

Place of Performance

Location: EMERYVILLE, ALAMEDA County, CALIFORNIA, 94608, UNITED STATES OF AMERICA

State: California Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $21.6 million to NOVARTIS VACCINES AND DIAGNOSTICS, INC. for work described as: DRUGS AND BIOLOGICALS Key points: 1. Contract Value: $21.6 million over 1 year. 2. Competition: Awarded under full and open competition. 3. Risk: Low risk indicated by firm fixed price contract. 4. Sector: Healthcare (Drugs and Biologicals).

Value Assessment

Rating: good

The contract value of $21.6 million for a 1-year duration appears reasonable for specialized drugs and biologicals. Benchmarking against similar government contracts for pharmaceutical supplies would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting a robust price discovery process. This method typically leads to competitive pricing as multiple vendors have the opportunity to bid.

Taxpayer Impact: The use of full and open competition is generally beneficial for taxpayers, as it encourages lower prices and better value through market forces.

Public Impact

Ensures availability of critical drugs and biologicals for public health initiatives. Supports the Department of Health and Human Services' mission in preparedness and response. Promotes a competitive market for pharmaceutical suppliers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Firm Fixed Price contract type
Full and Open Competition utilized
Awarded to a known entity in the sector

Sector Analysis

This contract falls within the Healthcare sector, specifically for drugs and biologicals, a critical area for government health agencies. Spending in this category can vary significantly based on public health needs and research advancements.

Small Business Impact

The data does not indicate if small businesses were involved in this specific contract. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The contract was awarded by the Office of Assistant Secretary for Preparedness and Response (ASPR) within HHS, suggesting oversight related to public health emergencies and preparedness. Contract performance monitoring would be key.

Related Government Programs

Medicinal and Botanical Manufacturing
Department of Health and Human Services Contracting
Office of Assistant Secretary for Preparedness and Response Programs

Risk Flags

Lack of specific product details for value assessment
No information on the number of bids received
Limited insight into small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $21.6 million to NOVARTIS VACCINES AND DIAGNOSTICS, INC.. DRUGS AND BIOLOGICALS

Who is the contractor on this award?

The obligated recipient is NOVARTIS VACCINES AND DIAGNOSTICS, 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 $21.6 million.

What is the period of performance?

Start: 2012-08-20. End: 2013-08-19.

What specific drugs or biologicals are covered under this contract?

The provided data does not specify the exact drugs or biologicals. This information would be crucial for a detailed value assessment, as the criticality and market price of different pharmaceuticals can vary widely. Understanding the specific items would allow for comparison against market rates and identify potential cost savings or overspending.

What was the competitive landscape like during the bidding process?

While the contract was awarded under 'full and open competition,' the number of bids received and the range of prices offered are not detailed. Knowing this would help assess the effectiveness of the competition in driving down costs and ensuring the government secured the best possible price for these essential medical supplies.

How does the awarded price compare to similar government or commercial procurements?

Without specific product details and market benchmarks, a direct comparison is difficult. However, the firm fixed price contract suggests a degree of price certainty. A post-award analysis comparing the per-unit cost to similar government contracts or commercial price lists would be necessary to fully evaluate cost-effectiveness.

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: Novartis AG (UEI: 485609796)

Address: 4560 HORTON ST, EMERYVILLE, CA, 94608

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $21,590,800

Exercised Options: $21,590,800

Current Obligation: $21,590,800

Parent Contract

Parent Award PIID: HHSO100200800072I

IDV Type: IDC

Timeline