VA awards $70M contract for flu vaccines to Seqirus USA Inc. for prefilled syringes

Contract Overview

Contract Amount: $69,996 ($70.0K)

Contractor: Seqirus USA Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-07

End Date: 2027-04-06

Contract Duration: 364 days

Daily Burn Rate: $192/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: FLUAD PREFILLED SYRINGES

Place of Performance

Location: SUMMIT, UNION County, NEW JERSEY, 07901

State: New Jersey Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $69,996 to SEQIRUS USA INC for work described as: FLUAD PREFILLED SYRINGES Key points: 1. The contract value of $69.996 million represents a significant investment in public health preparedness. 2. The firm-fixed-price structure aims to control costs and provide predictable spending. 3. The duration of one year, with potential for extensions, allows for agile response to public health needs. 4. The award is for pharmaceutical preparation manufacturing, a critical sector for national health security. 5. The contract is managed by the Department of Veterans Affairs, indicating a focus on veteran health and broader public health initiatives.

Value Assessment

Rating: good

The contract value of approximately $70 million for a one-year supply of flu vaccines appears reasonable given the scale of national health needs. Benchmarking against similar large-scale vaccine procurements by federal agencies would provide a more precise value-for-money assessment. The firm-fixed-price contract type suggests that the government has negotiated a set price, which can be advantageous in preventing cost overruns. However, without specific per-unit pricing or comparison to market rates for similar vaccine preparations, a definitive assessment of cost-effectiveness is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors were likely solicited and had the opportunity to bid. This process generally fosters a competitive environment, encouraging vendors to offer their best pricing and terms. The number of bidders is not specified, but the full and open nature suggests a robust competition that should lead to a fair market price.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down prices through market forces, ensuring that federal funds are used efficiently.

Public Impact

Veterans will benefit from access to essential influenza vaccinations, contributing to their overall health and well-being. The contract ensures the availability of prefilled syringes of flu vaccine, a critical medical supply for public health. The geographic impact is national, as the vaccines will be distributed to various VA facilities and potentially other federal entities. The pharmaceutical manufacturing sector will see continued demand, supporting jobs and innovation in vaccine production.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases in subsequent years if market conditions change significantly.
Dependence on a single contractor for a critical public health supply could pose a risk if supply chain issues arise.
Ensuring equitable distribution and access across all intended beneficiaries.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing.
Firm-fixed-price contract provides cost certainty for the government.
Long-term relationship potential with a key pharmaceutical supplier.
Focus on prefilled syringes streamlines administration and reduces waste.

Sector Analysis

The pharmaceutical preparation manufacturing sector is a vital component of the healthcare industry, responsible for producing essential medicines and vaccines. This contract for flu vaccines fits within the broader federal strategy to ensure public health preparedness and access to critical medical supplies. Spending in this sector is substantial, with government agencies frequently procuring vaccines and pharmaceuticals to serve beneficiaries and maintain national health security. Comparable spending benchmarks would involve looking at other large-scale vaccine procurements by agencies like the CDC or DoD.

Small Business Impact

There is no indication that this contract included a small business set-aside. The nature of large-scale pharmaceutical manufacturing often favors established, larger companies with significant production capacity and regulatory compliance infrastructure. Subcontracting opportunities for small businesses may exist within the supply chain for raw materials or ancillary services, but direct set-aside is unlikely for the primary vaccine manufacturing.

Oversight & Accountability

The Department of Veterans Affairs is responsible for the oversight of this contract. Accountability measures are inherent in the firm-fixed-price contract, requiring the contractor to deliver the specified product at the agreed-upon price. Transparency is facilitated through federal contract databases where such awards are reported. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Influenza Vaccine Procurement
Department of Veterans Affairs Pharmaceutical Contracts
Public Health Preparedness Programs
Medical Supply Chain Management

Risk Flags

Potential for supply chain disruption
Contractor performance risk
Price volatility in pharmaceutical markets

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $69,996 to SEQIRUS USA INC. FLUAD PREFILLED SYRINGES

Who is the contractor on this award?

The obligated recipient is SEQIRUS USA INC.

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $69,996.

What is the period of performance?

Start: 2026-04-07. End: 2027-04-06.

What is the historical spending pattern for influenza vaccines by the Department of Veterans Affairs?

Historical spending data for influenza vaccines by the Department of Veterans Affairs (VA) would reveal trends in procurement volume, pricing, and contractor relationships over time. Analyzing past awards can indicate whether the VA consistently procures from Seqirus USA Inc. or if there has been a rotation of suppliers. It can also highlight fluctuations in demand, potentially linked to public health recommendations or specific outbreaks. Understanding historical spending helps in assessing whether the current $70 million award represents an increase, decrease, or stable level of investment in flu vaccines. Without specific historical data, it's difficult to determine if this award is an anomaly or part of a consistent procurement strategy. This context is crucial for evaluating the long-term financial commitment and the effectiveness of the VA's vaccine procurement strategy.

How does the per-unit cost of these flu vaccine syringes compare to other federal agencies or the commercial market?

Comparing the per-unit cost of these flu vaccine syringes to those procured by other federal agencies (like the CDC or DoD) or the commercial market is essential for assessing value for money. Federal agencies often leverage bulk purchasing power, which can lead to lower per-unit costs than commercial rates. However, variations in vaccine types, formulations (e.g., high-dose for seniors), and packaging can affect direct comparisons. If the VA's per-unit cost is significantly higher than comparable federal procurements or market benchmarks, it could indicate potential issues with pricing negotiations or a lack of sufficient competition. Conversely, a cost that aligns with or is lower than benchmarks would suggest efficient procurement. This analysis requires access to detailed pricing information for the specific vaccine product being procured under this contract.

What are the specific risks associated with relying on Seqirus USA Inc. for this critical vaccine supply?

Relying on Seqirus USA Inc. for a critical vaccine supply carries several potential risks. Firstly, supply chain disruptions, whether due to manufacturing issues, raw material shortages, or logistical challenges, could impact the timely delivery of vaccines. Secondly, if Seqirus faces unexpected production problems or quality control issues, it could lead to shortages, affecting the VA's ability to vaccinate its population. Thirdly, a sole-source or limited competition scenario (though this contract was full and open) can reduce leverage in future negotiations. Dependence on a single supplier also means that any adverse events or recalls associated with their product could have a widespread impact. Continuous monitoring of the contractor's performance, financial stability, and adherence to quality standards is crucial to mitigate these risks.

What is the track record of Seqirus USA Inc. in fulfilling government vaccine contracts?

Seqirus USA Inc. has a significant track record in supplying vaccines, including influenza vaccines, to various government entities. They are a known player in the global vaccine market. Assessing their past performance on government contracts would involve reviewing contract completion data, any instances of late delivery, quality issues, or disputes. Positive performance indicators would include consistent on-time delivery, adherence to quality specifications, and successful management of large-scale procurements. Conversely, any history of significant contract failures or performance issues would raise concerns. A thorough review of their past government contract history provides insight into their reliability and capability to meet the demands of this specific VA contract.

How effective are prefilled syringes in improving vaccine administration efficiency and reducing waste compared to multi-dose vials?

Prefilled syringes (PFS) are generally considered more efficient and safer for vaccine administration compared to multi-dose vials (MDVs). PFS come with a pre-measured dose, eliminating the need for drawing up medication, which saves nursing time and reduces the risk of dosing errors. This pre-measured format also minimizes the risk of contamination during the drawing process. Furthermore, PFS can reduce waste, as there is no leftover vaccine in the vial after the single dose is administered. While MDVs might offer a lower per-dose cost initially, the labor savings, reduced waste, and enhanced safety associated with PFS often make them a more cost-effective and practical choice, especially in large-scale vaccination programs like those managed by the VA.

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: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 25 DEFOREST AVE STE 200, SUMMIT, NJ, 07901

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: $69,996

Exercised Options: $69,996

Current Obligation: $69,996

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36E79726D0010

IDV Type: IDC

Timeline