DoD's $92M pharmaceutical contract awarded to Resilience Government Services, Inc. for fill-and-finish capacity

Contract Overview

Contract Amount: $92,024,000 ($92.0M)

Contractor: Resilience Government Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2020-08-17

End Date: 2021-07-31

Contract Duration: 348 days

Daily Burn Rate: $264.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: FILL AND FINISH CAPACITY

Place of Performance

Location: ALACHUA, ALACHUA County, FLORIDA, 32615

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $92.0 million to RESILIENCE GOVERNMENT SERVICES, INC. for work described as: FILL AND FINISH CAPACITY Key points: 1. The contract's value of $92 million indicates a significant investment in pharmaceutical manufacturing capabilities. 2. Awarded under full and open competition, suggesting a robust market with multiple interested parties. 3. The firm-fixed-price structure aims to control costs and provide predictability for the government. 4. The duration of 348 days suggests a focused effort on a specific production phase. 5. The contract's focus on fill-and-finish capacity addresses a critical bottleneck in pharmaceutical supply chains. 6. The award to a single contractor, Resilience Government Services, Inc., warrants scrutiny of the competitive process and potential for future competition.

Value Assessment

Rating: good

The contract value of $92 million for fill-and-finish capacity appears reasonable given the critical nature of pharmaceutical production and the potential for large-scale manufacturing. Benchmarking against similar government contracts for pharmaceutical manufacturing services is challenging without more specific details on the scope of work and production volume. However, the firm-fixed-price nature of the award suggests an effort to establish a clear cost structure. The number of bids received (5) provides some indication of market interest, but a deeper analysis of the bid prices would be needed for a definitive value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with five bids received. This indicates that the solicitation was widely publicized, allowing any interested and capable vendor to submit a proposal. The presence of multiple bidders suggests a healthy level of competition in the market for pharmaceutical fill-and-finish services. The government's ability to solicit and receive multiple offers is a positive sign for price discovery and potentially achieving a more competitive price.

Taxpayer Impact: The full and open competition process is beneficial for taxpayers as it increases the likelihood of obtaining services at a fair market price by fostering a competitive environment among potential contractors.

Public Impact

The primary beneficiary is the Department of Defense, which gains enhanced capacity for pharmaceutical production, crucial for national security and readiness. The contract delivers essential fill-and-finish services, a critical step in preparing pharmaceutical products for distribution and use. The geographic impact is centered in Florida, where Resilience Government Services, Inc. is located, potentially creating local economic benefits and jobs. Workforce implications may include the need for specialized personnel in pharmaceutical manufacturing, quality control, and logistics at the contractor's facility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for contractor lock-in if future needs are highly specific to this contractor's capabilities.
Reliance on a single contractor for a critical function could pose supply chain risks if unforeseen issues arise.
Limited transparency into the specific technical capabilities and quality control processes of the awarded contractor without further review.

Positive Signals

Awarded through full and open competition, indicating a broad market search and competitive pricing potential.
Firm-fixed-price contract type helps manage cost certainty for the government.
The contract addresses a vital need for pharmaceutical fill-and-finish capacity, enhancing national pharmaceutical security.

Sector Analysis

The pharmaceutical manufacturing sector is highly regulated and capital-intensive. This contract falls within the 'Pharmaceutical Preparation Manufacturing' industry (NAICS 325412). The market for fill-and-finish services is critical, especially for government contracts supporting defense and public health initiatives. The $92 million award represents a significant, albeit specific, investment within this sector. Comparable spending benchmarks would depend on the exact scale and type of pharmaceuticals being filled and finished, but this amount suggests a substantial operational capacity.

Small Business Impact

This contract was not set aside for small businesses, and the contractor, Resilience Government Services, Inc., is not explicitly identified as a small business in the provided data. Therefore, there are no direct small business set-aside implications. However, the potential for subcontracting opportunities with small businesses in areas like logistics, specialized equipment maintenance, or raw material supply should be investigated to understand the broader impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Army contracting officers and program managers. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to deliver specified services within the agreed-upon price. Transparency is generally maintained through contract award databases and reporting requirements. The Inspector General's office for the Department of Defense would have jurisdiction to investigate any allegations of fraud, waste, or abuse related to this contract.

Related Government Programs

Department of Defense Pharmaceutical Procurement
National Biodefense Strategy and Implementation Plan
Medical Countermeasure Stockpile
Pharmaceutical Supply Chain Resilience Initiatives

Risk Flags

Single source award risk
Supply chain dependency
Critical infrastructure reliance

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $92.0 million to RESILIENCE GOVERNMENT SERVICES, INC.. FILL AND FINISH CAPACITY

Who is the contractor on this award?

The obligated recipient is RESILIENCE GOVERNMENT SERVICES, 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 $92.0 million.

What is the period of performance?

Start: 2020-08-17. End: 2021-07-31.

What is the specific type and volume of pharmaceuticals this contract is intended to fill and finish?

The provided data indicates the contract is for 'FILL AND FINISH CAPACITY' but does not specify the exact type or volume of pharmaceuticals. This capacity could range from vaccines and therapeutics to other critical medical supplies. Understanding the specific products is crucial for assessing the strategic importance and potential risks associated with this contract. For instance, contracts involving biologics or complex formulations would have different manufacturing requirements and quality control standards compared to simpler dosage forms. Further details on the Statement of Work (SOW) would clarify the scope and intended output.

How does the awarded amount of $92 million compare to typical government spending on similar pharmaceutical fill-and-finish contracts?

Directly comparing the $92 million award to 'typical' government spending on pharmaceutical fill-and-finish contracts is difficult without more granular data on contract scope, duration, and specific services rendered. However, $92 million represents a substantial investment, suggesting a significant capacity build-up or a long-term production agreement. Government needs for pharmaceutical manufacturing can fluctuate based on national security requirements, public health emergencies (like pandemics), and routine medical supply needs. Larger contracts often involve multi-year durations and cover a wide range of products. This contract's duration of 348 days suggests a focused, potentially shorter-term engagement or a specific phase of a larger initiative, making direct comparisons complex.

What are the key performance indicators (KPIs) and quality assurance measures stipulated in this contract?

The provided data does not detail the specific Key Performance Indicators (KPIs) or quality assurance (QA) measures for this contract. However, for pharmaceutical manufacturing, especially for government contracts, stringent QA protocols are standard. These typically include adherence to Good Manufacturing Practices (GMP), rigorous testing of raw materials and finished products, precise environmental controls, and detailed documentation of every production step. KPIs would likely focus on production output, adherence to timelines, defect rates, and compliance with regulatory standards. The firm-fixed-price nature implies that meeting these quality and performance standards is a condition of payment.

What is Resilience Government Services, Inc.'s track record in pharmaceutical manufacturing and government contracting?

Information regarding Resilience Government Services, Inc.'s specific track record in pharmaceutical manufacturing and government contracting is not detailed in the provided data. A comprehensive assessment would require reviewing their past performance on similar contracts, their facility certifications (e.g., FDA approval, GMP compliance), and any history of quality issues or contract disputes. Their ability to successfully execute this $92 million contract hinges on their demonstrated expertise and reliability in handling sensitive pharmaceutical production processes. Further due diligence would be necessary to evaluate their capabilities and past performance.

What are the potential risks associated with relying on a single contractor for this critical fill-and-finish capacity?

Relying on a single contractor, Resilience Government Services, Inc., for critical fill-and-finish capacity introduces several potential risks. These include supply chain disruption if the contractor faces operational issues (e.g., equipment failure, labor shortages, natural disasters), potential price increases in future contract renewals if competition diminishes, and a lack of alternative sources during emergencies. Furthermore, if the contractor's performance or quality falters, the government may have limited immediate recourse without significant disruption. Diversification of manufacturing capabilities across multiple trusted vendors is often a strategy to mitigate such risks.

How does this contract align with broader U.S. government strategies for pharmaceutical supply chain security and domestic manufacturing?

This contract directly aligns with U.S. government strategies aimed at enhancing pharmaceutical supply chain security and bolstering domestic manufacturing capabilities. By investing in fill-and-finish capacity, the Department of Defense is reducing reliance on foreign sources for critical medical supplies and ensuring a more resilient supply chain. This is particularly important in the context of national security and public health preparedness, as demonstrated during recent global health crises. Strengthening domestic production infrastructure helps ensure timely access to essential medicines and medical countermeasures.

Industry Classification

NAICS: Manufacturing › Pharmaceutical and Medicine Manufacturing › Pharmaceutical Preparation Manufacturing

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: TWO STEP

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 13200 NW NANO COURT, ALACHUA, FL, 32615

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $92,024,000

Exercised Options: $92,024,000

Current Obligation: $92,024,000

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline