DoD Awards $41.8M for Anthrax Vaccine, Sole-Source Contract Raises Competition Concerns
Contract Overview
Contract Amount: $41,801,810 ($41.8M)
Contractor: Emergent Biodefense Operations Lansing LLC
Awarding Agency: Department of Defense
Start Date: 2024-01-22
End Date: 2025-11-30
Contract Duration: 678 days
Daily Burn Rate: $61.7K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: PROCUREMENT OF BIOTHRAX (ANTHRAX VACCINE ADSORBED)
Place of Performance
Location: LANSING, INGHAM County, MICHIGAN, 48906
State: Michigan Government Spending
Plain-Language Summary
Department of Defense obligated $41.8 million to EMERGENT BIODEFENSE OPERATIONS LANSING LLC for work described as: PROCUREMENT OF BIOTHRAX (ANTHRAX VACCINE ADSORBED) Key points: 1. Significant contract value for a critical biodefense product. 2. Sole-source award limits competitive pricing and innovation. 3. Potential risk associated with single supplier dependency. 4. Biodefense sector relies on specialized manufacturing capabilities.
Value Assessment
Rating: questionable
The contract value of $41.8 million for Biothrax is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to potential alternatives or previous contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning only one vendor was considered. This significantly limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for this essential vaccine.
Public Impact
Ensures availability of a critical vaccine for national security. Potential for higher costs due to lack of competitive bidding. Reliance on a single manufacturer could pose supply chain risks. Impacts the biodefense industry's competitive landscape.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of price competition
- Potential supply chain risk
Positive Signals
- Secures critical biodefense capability
- Ensures vaccine availability
Sector Analysis
This procurement falls within the biodefense and pharmaceutical manufacturing sector, which often involves high R&D costs and specialized production. Government contracts are crucial for maintaining domestic supply chains for such critical medical countermeasures.
Small Business Impact
The contract was awarded to Emergent BioDefense Operations Lansing LLC, a large business. There is no indication of small business participation in this specific award, which is common for highly specialized biopharmaceutical manufacturing.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure the government negotiated the best possible price and terms. Future procurements should explore competitive options where feasible to enhance accountability.
Related Government Programs
- Medicinal and Botanical Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated pricing due to lack of competition.
- Dependency on a single supplier creates supply chain risk.
- Lack of transparency in price justification.
- Limited opportunity for small business participation.
Tags
medicinal-and-botanical-manufacturing, department-of-defense, mi, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $41.8 million to EMERGENT BIODEFENSE OPERATIONS LANSING LLC. PROCUREMENT OF BIOTHRAX (ANTHRAX VACCINE ADSORBED)
Who is the contractor on this award?
The obligated recipient is EMERGENT BIODEFENSE OPERATIONS LANSING LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $41.8 million.
What is the period of performance?
Start: 2024-01-22. End: 2025-11-30.
What is the historical pricing for Biothrax, and how does this award compare?
Historical pricing data for Biothrax is not readily available in the public domain for direct comparison. However, sole-source contracts inherently lack the price discovery mechanisms of competitive bidding. Without transparency into the negotiation process and cost breakdowns, it's challenging to definitively state if this $41.8 million award represents optimal value compared to what could have been achieved through a competitive solicitation.
What are the risks associated with relying on a single supplier for an anthrax vaccine?
Sole-source reliance creates significant supply chain vulnerability. Any disruption at the supplier's facility, such as production issues, quality control problems, or geopolitical events, could directly impact the availability of this critical vaccine. This dependency also limits the government's leverage in price negotiations and discourages innovation from potential competitors.
How effective is the current procurement process in ensuring value for money for this sole-source contract?
The effectiveness of this sole-source procurement in ensuring value for money is questionable. While it guarantees the acquisition of the vaccine, the absence of competition means there's no market-driven pressure to achieve the lowest possible price. The government must rely heavily on its negotiation expertise and cost analysis capabilities to mitigate potential overspending, which is inherently more difficult without competing offers.
Industry Classification
NAICS: Manufacturing › Pharmaceutical and Medicine Manufacturing › Medicinal and Botanical Manufacturing
Product/Service Code: MEDICAL/DENTAL/VETERINARY EQPT/SUPP
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Emergent Biosolutions Inc.
Address: 3500 N MARTIN LUTHER KING JR BLVD, LANSING, MI, 48906
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: $41,801,810
Exercised Options: $41,801,810
Current Obligation: $41,801,810
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W911SR24D0001
IDV Type: IDC
Timeline
Start Date: 2024-01-22
Current End Date: 2025-11-30
Potential End Date: 2025-11-30 00:00:00
Last Modified: 2025-09-17
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