DOJ's $2.5B FY26 Flu Vaccine Contract Awarded to Sanofi for Federal Prisons
Contract Overview
Contract Amount: $2,522 ($2.5K)
Contractor: Sanofi Vaccines US Inc.
Awarding Agency: Department of Justice
Start Date: 2026-04-02
End Date: 2026-10-15
Contract Duration: 196 days
Daily Burn Rate: $13/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: FY26 B1 SANOFI/SEQIRUS FLU VACCINES JAN 26
Place of Performance
Location: SWIFTWATER, MONROE County, PENNSYLVANIA, 18370
Plain-Language Summary
Department of Justice obligated $2,521.8 to SANOFI VACCINES US INC. for work described as: FY26 B1 SANOFI/SEQIRUS FLU VACCINES JAN 26 Key points: 1. Significant contract value of $2.52 billion for essential healthcare supplies. 2. Competition method is 'Full and Open', suggesting a competitive bidding process. 3. Risk of supply chain disruption for critical vaccines impacting federal inmates. 4. Sector is Pharmaceutical Preparation Manufacturing, vital for public health.
Value Assessment
Rating: good
The contract value of $2.52 billion for flu vaccines appears substantial. Benchmarking against similar large-scale pharmaceutical procurements would be necessary to definitively assess pricing, but the firm fixed-price structure provides cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple bidders likely participated. This method generally promotes competitive pricing and ensures the government obtains the best value.
Taxpayer Impact: Taxpayer funds are being used for essential healthcare for federal inmates, ensuring public health within correctional facilities.
Public Impact
Ensures a critical public health service for federal inmates. Supports the pharmaceutical industry and vaccine manufacturing. Potential for price fluctuations if market conditions change significantly.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for supply chain disruptions impacting delivery.
- Dependence on a single supplier for a critical health need.
Positive Signals
- Awarded through full and open competition.
- Firm fixed-price contract provides cost predictability.
Sector Analysis
This contract falls within the Pharmaceutical Preparation Manufacturing sector, which is crucial for national health security. Spending benchmarks for large-scale vaccine procurements are typically in the billions, reflecting the scale and importance of these acquisitions.
Small Business Impact
While the primary awardee is Sanofi, the 'Full and Open Competition' process may have allowed for subcontracting opportunities for smaller businesses involved in logistics, distribution, or related services.
Oversight & Accountability
The Department of Justice's Federal Prison System is responsible for this procurement. Oversight would involve ensuring timely delivery, vaccine efficacy, and adherence to contract terms throughout the performance period.
Related Government Programs
- Pharmaceutical Preparation Manufacturing
- Department of Justice Contracting
- Federal Prison System / Bureau of Prisons Programs
Risk Flags
- Potential for supply chain disruptions.
- Dependence on a single manufacturer.
- Long-term contract duration.
- Fluctuations in vaccine efficacy against evolving strains.
Tags
pharmaceutical-preparation-manufacturing, department-of-justice, pa, delivery-order, under-100k
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $2,521.8 to SANOFI VACCINES US INC.. FY26 B1 SANOFI/SEQIRUS FLU VACCINES JAN 26
Who is the contractor on this award?
The obligated recipient is SANOFI VACCINES US INC..
Which agency awarded this contract?
Awarding agency: Department of Justice (Federal Prison System / Bureau of Prisons).
What is the total obligated amount?
The obligated amount is $2,521.8.
What is the period of performance?
Start: 2026-04-02. End: 2026-10-15.
What is the historical pricing trend for similar large-scale flu vaccine contracts awarded by the government?
Historical data on similar large-scale flu vaccine contracts would be crucial for a comprehensive value assessment. Analyzing past awards, including quantities, pricing structures (firm fixed-price vs. other), and supplier performance, can reveal trends and identify potential outliers. This comparison helps determine if the current $2.52 billion award represents a fair market price or if there are opportunities for cost savings in future procurements.
What are the contingency plans in place to mitigate risks associated with potential supply chain disruptions or manufacturing delays?
Contingency plans for supply chain disruptions or manufacturing delays are vital for ensuring the continuous availability of flu vaccines for federal inmates. This could include pre-established relationships with secondary suppliers, buffer stock inventories, or contractual clauses that penalize suppliers for non-performance. The government should have robust monitoring mechanisms to track production and distribution proactively.
How will the effectiveness of the procured vaccines be monitored and ensured throughout the contract period?
The effectiveness of the procured vaccines will be monitored through various mechanisms. This includes ensuring the vaccines meet all FDA efficacy and safety standards upon delivery, tracking vaccination rates among the inmate population, and potentially monitoring for any adverse events. The contract likely includes provisions for quality assurance and performance metrics that the Federal Prison System will use to evaluate the supplier's adherence to requirements.
Industry Classification
NAICS: Manufacturing › Pharmaceutical and Medicine Manufacturing › Pharmaceutical Preparation Manufacturing
Product/Service Code: MEDICAL SERVICES › MEDICAL, DENTAL, AND SURGICAL SVCS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Sanofi
Address: 1 DISCOVERY DR, SWIFTWATER, PA, 18370
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $2,522
Exercised Options: $2,522
Current Obligation: $2,522
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 36E79726D0009
IDV Type: IDC
Timeline
Start Date: 2026-04-02
Current End Date: 2026-10-15
Potential End Date: 2026-10-15 00:00:00
Last Modified: 2026-04-02
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