DoD awards Pfizer $4B for COVID-19 Adult MDV Vaccine, a sole-source contract with 610 days duration
Contract Overview
Contract Amount: $4,038,717,532 ($4.0B)
Contractor: Pfizer Inc
Awarding Agency: Department of Defense
Start Date: 2022-06-29
End Date: 2024-02-29
Contract Duration: 610 days
Daily Burn Rate: $6.6M/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: COVID-19 ADULT MDV VACCINE
Place of Performance
Location: NEW YORK, NEW YORK County, NEW YORK, 10017
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $4.04 billion to PFIZER INC for work described as: COVID-19 ADULT MDV VACCINE Key points: 1. Significant investment of over $4 billion for a critical public health need. 2. Sole-source award to Pfizer raises questions about price discovery and competition. 3. Contract duration of 610 days suggests ongoing supply needs. 4. Pharmaceutical preparation manufacturing sector sees substantial government expenditure.
Value Assessment
Rating: questionable
The contract value of $4.04 billion for 610 days is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to potential market alternatives or previous contracts for similar vaccines.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating a lack of competition. This method limits price discovery and may result in higher costs for taxpayers compared to a fully competed procurement.
Taxpayer Impact: The sole-source nature of this large contract means taxpayers may not be receiving the best possible price for these vaccine doses.
Public Impact
Ensures availability of COVID-19 vaccines for adults. Supports ongoing public health efforts against the pandemic. Potential for significant taxpayer expenditure due to lack of competition. Reliance on a single supplier for a critical medical supply.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- High contract value
- Lack of competition
Positive Signals
- Addresses critical public health need
- Ensures vaccine supply
Sector Analysis
This contract falls within the Pharmaceutical Preparation Manufacturing sector, a critical area for public health. Government spending in this sector is often substantial, especially during health crises, but competitive bidding is crucial for cost-effectiveness.
Small Business Impact
This contract was awarded to Pfizer Inc., a large corporation, and there is no indication of small business participation. The sole-source nature likely precluded opportunities for small businesses to compete.
Oversight & Accountability
The sole-source award warrants scrutiny to ensure the government obtained fair pricing and that this approach was justified. Further oversight is needed to understand the rationale behind not competing this significant procurement.
Related Government Programs
- Pharmaceutical Preparation Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award limits price competition.
- High contract value raises concerns about potential overpayment.
- Lack of transparency in pricing justification.
- Potential for single-point-of-failure in supply chain.
Tags
pharmaceutical-preparation-manufacturing, department-of-defense, ny, definitive-contract, billion-dollar
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $4.04 billion to PFIZER INC. COVID-19 ADULT MDV VACCINE
Who is the contractor on this award?
The obligated recipient is PFIZER INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $4.04 billion.
What is the period of performance?
Start: 2022-06-29. End: 2024-02-29.
What was the justification for awarding this contract on a sole-source basis instead of seeking competitive bids?
The justification for a sole-source award typically involves factors such as the urgency of the need, the unique capabilities of the sole provider, or the lack of adequate competition. Without specific documentation, it's difficult to ascertain the precise reasons, but it's a critical point for oversight to ensure taxpayer funds are used efficiently and that competition was genuinely not feasible.
How does the per-unit cost of this vaccine compare to other similar government or commercial contracts, if data is available?
Benchmarking the per-unit cost is challenging without access to comparable contract data, especially for sole-source awards. If similar vaccines were procured competitively, comparing those prices could offer insights. However, the unique nature of specific vaccine formulations and supply agreements often makes direct comparisons difficult, necessitating a thorough review of the pricing justification.
What is the long-term strategy for vaccine procurement to ensure cost-effectiveness and supply chain resilience?
A robust long-term strategy should prioritize competitive procurement whenever feasible to drive down costs and foster innovation. Building relationships with multiple suppliers, exploring advanced manufacturing techniques, and maintaining strategic stockpiles can enhance supply chain resilience. Regular market analysis and proactive engagement with industry are key to ensuring both cost-effectiveness and consistent availability of essential medical supplies.
Industry Classification
NAICS: Manufacturing › Pharmaceutical and Medicine Manufacturing › Pharmaceutical Preparation Manufacturing
Product/Service Code: MEDICAL/DENTAL/VETERINARY EQPT/SUPP
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: W58P0522R0006
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 235 E 42ND ST, NEW YORK, NY, 10017
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: $8,660,000,000
Exercised Options: $4,039,016,224
Current Obligation: $4,038,717,532
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2022-06-29
Current End Date: 2024-02-29
Potential End Date: 2024-02-29 00:00:00
Last Modified: 2023-06-30
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