HHS Spends $55M on Leukine Injections from Partner Therapeutics, Inc
Contract Overview
Contract Amount: $54,999,800 ($55.0M)
Contractor: Partner Therapeutics, Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2019-09-16
End Date: 2020-09-15
Contract Duration: 365 days
Daily Burn Rate: $150.7K/day
Competition Type: NOT COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: LEUKINE 250MCG/VIL INJ 186,440
Place of Performance
Location: LEXINGTON, MIDDLESEX County, MASSACHUSETTS, 02421
Plain-Language Summary
Department of Health and Human Services obligated $55.0 million to PARTNER THERAPEUTICS, INC. for work described as: LEUKINE 250MCG/VIL INJ 186,440 Key points: 1. High contract value of $55M for pharmaceutical preparation. 2. Sole-source procurement raises questions about price discovery. 3. Potential risk associated with single supplier dependency. 4. Sector context: Pharmaceutical preparation manufacturing is critical for public health preparedness.
Value Assessment
Rating: questionable
The contract value of $55M for 186,440 units of Leukine is significant. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar pharmaceutical preparations.
Cost Per Unit: $295.05
Competition Analysis
Competition Level: sole-source
This contract was not competed under SAP, indicating a sole-source award. This lack of competition limits price discovery and may lead to higher costs for taxpayers.
Taxpayer Impact: The absence of competition in this sole-source award could result in inflated prices, impacting taxpayer funds allocated for essential medical supplies.
Public Impact
Ensures availability of critical medication for public health emergencies. Potential for higher costs due to lack of competitive bidding. Dependence on a single supplier for a vital drug.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source procurement
- Lack of competition
- High contract value
Positive Signals
- Ensures supply of critical medication
Sector Analysis
The pharmaceutical preparation manufacturing sector is vital for national security and public health. Spending benchmarks for similar critical drug procurements are often high, but competitive pricing is crucial.
Small Business Impact
There is no indication that small businesses were involved in this contract, as it was awarded to a single, likely larger, firm.
Oversight & Accountability
The sole-source nature of this contract warrants further oversight to ensure the price paid was justified and that future procurements explore competitive options.
Related Government Programs
- Pharmaceutical Preparation Manufacturing
- Department of Health and Human Services Contracting
- Office of Assistant Secretary for Preparedness and Response Programs
Risk Flags
- Sole-source award
- Lack of competitive bidding
- Potential for overpricing
- Supply chain dependency
Tags
pharmaceutical-preparation-manufacturing, department-of-health-and-human-services, ma, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $55.0 million to PARTNER THERAPEUTICS, INC.. LEUKINE 250MCG/VIL INJ 186,440
Who is the contractor on this award?
The obligated recipient is PARTNER THERAPEUTICS, INC..
Which agency awarded this contract?
Awarding agency: Department of Health and Human Services (Office of Assistant Secretary for Preparedness and Response).
What is the total obligated amount?
The obligated amount is $55.0 million.
What is the period of performance?
Start: 2019-09-16. End: 2020-09-15.
What is the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or an urgent need where only one source can fulfill the requirement. Without further details, it's presumed that Partner Therapeutics, Inc. was the only viable option for supplying Leukine under the specific terms and timeline required by the Department of Health and Human Services.
What is the risk associated with relying on a single supplier for this critical medication?
The primary risk of relying on a single supplier is supply chain vulnerability. Disruptions due to manufacturing issues, natural disasters, or geopolitical events at the supplier's end could lead to shortages of this critical medication, impacting public health preparedness and response capabilities.
How does the lack of competition impact the overall effectiveness of this spending?
The lack of competition significantly reduces the effectiveness of this spending by potentially inflating the cost per unit. Without competitive pressure, the government may not achieve the best possible price, meaning taxpayer funds could be used more efficiently elsewhere or more medication could be procured for the same amount.
Industry Classification
NAICS: Manufacturing › Pharmaceutical and Medicine Manufacturing › Pharmaceutical Preparation Manufacturing
Product/Service Code: SPECIAL INDUSTRY MACHINERY
Competition & Pricing
Extent Competed: NOT COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 19 MUZZEY STREET SUITE 105, LEXINGTON, MA, 02421
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $54,999,800
Exercised Options: $54,999,800
Current Obligation: $54,999,800
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Timeline
Start Date: 2019-09-16
Current End Date: 2020-09-15
Potential End Date: 2020-09-15 00:00:00
Last Modified: 2022-03-02
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