HHS awards $99.3M for LEUKINE 250MCG VIL INJ, a significant investment in pharmaceutical preparation manufacturing

Contract Overview

Contract Amount: $99,315,090 ($99.3M)

Contractor: Partner Therapeutics, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2023-09-26

End Date: 2027-03-29

Contract Duration: 1,280 days

Daily Burn Rate: $77.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: LEUKINE 250MCG VIL INJ (5PKG)

Place of Performance

Location: LEXINGTON, MIDDLESEX County, MASSACHUSETTS, 02421

State: Massachusetts Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $99.3 million to PARTNER THERAPEUTICS, INC. for work described as: LEUKINE 250MCG VIL INJ (5PKG) Key points: 1. The contract value of $99.3M represents a substantial commitment to ensuring the availability of critical medical supplies. 2. Competition dynamics for this pharmaceutical supply contract are crucial for ensuring fair pricing and reliable delivery. 3. Performance indicators will be key to monitoring the effectiveness and timeliness of pharmaceutical deliveries. 4. This contract positions the government to secure essential medical countermeasures. 5. The duration of the contract suggests a long-term need for these pharmaceutical products. 6. The fixed-price nature of the contract provides cost certainty for the government.

Value Assessment

Rating: good

The contract value of $99.3M for LEUKINE 250MCG VIL INJ (5PKG) appears to be a significant procurement. Benchmarking against similar pharmaceutical supply contracts would provide a clearer picture of value for money. The firm fixed price structure offers predictability, but ongoing monitoring of market prices for similar injectables is recommended to ensure continued cost-effectiveness over the contract's duration. The awarded amount is substantial, indicating a critical need or a large quantity of product.

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 had the opportunity to bid. The specific number of bidders is not provided, but this approach generally fosters a competitive environment, which can lead to better pricing and terms for the government. The open competition suggests that the government sought the best value from the widest possible pool of qualified suppliers.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the potential for cost savings through competitive bidding and encourages a broader range of suppliers to participate, potentially leading to innovation and better service.

Public Impact

The primary beneficiaries are likely government health agencies and potentially the public through the strategic stockpiling of essential medical supplies. The services delivered involve the provision of pharmaceutical injectables, specifically LEUKINE 250MCG VIL INJ. The geographic impact is national, supporting federal health preparedness and response capabilities. Workforce implications are indirect, primarily supporting the pharmaceutical manufacturing and logistics sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions impacting delivery timelines.
Ensuring consistent quality and efficacy of pharmaceutical products over the contract period.
Market fluctuations in raw material costs could impact long-term affordability if not managed.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
Firm fixed price contract provides cost certainty and budget predictability.
Long contract duration (approx. 5.5 years) indicates a sustained need and potential for stable supply.
Procurement by HHS, a key agency for health security, suggests strategic importance.

Sector Analysis

The pharmaceutical preparation manufacturing sector is highly regulated and critical for public health. This contract falls within the broader healthcare and life sciences industry, which is characterized by significant R&D investment, stringent quality control, and complex supply chains. Government contracts in this sector often focus on ensuring the availability of essential medicines, vaccines, and medical countermeasures, particularly for national security and public health emergencies. Comparable spending benchmarks would typically involve analyzing other large-scale procurements of similar pharmaceutical products by federal agencies.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. As it was awarded under full and open competition, it is unlikely that small businesses were exclusively targeted. However, the prime contractor, PARTNER THERAPEUTICS, INC., may engage small businesses as subcontractors to fulfill aspects of the contract, though this is not explicitly detailed in the award information. Further analysis would be needed to determine subcontracting plans and their impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Health and Human Services (HHS), specifically the Office of Assistant Secretary for Preparedness and Response (ASPR). Accountability measures will be tied to the delivery of specified pharmaceutical products according to the contract terms, including quantity, quality, and delivery schedules. Transparency is generally maintained through contract award databases and reporting requirements, though specific performance metrics may not always be publicly disclosed. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Strategic National Stockpile
Medical Countermeasures Stockpile
Pharmaceutical Supply Chain Management
Emergency Preparedness and Response Contracts

Risk Flags

Long contract duration may increase exposure to market volatility.
Reliance on a single supplier for critical pharmaceuticals requires robust supply chain monitoring.
Potential for price increases if raw material costs escalate significantly over the contract term.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $99.3 million to PARTNER THERAPEUTICS, INC.. LEUKINE 250MCG VIL INJ (5PKG)

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 $99.3 million.

What is the period of performance?

Start: 2023-09-26. End: 2027-03-29.

What is the historical spending pattern for LEUKINE 250MCG VIL INJ by the Department of Health and Human Services?

Analyzing historical spending for LEUKINE 250MCG VIL INJ by HHS requires access to detailed procurement databases beyond the provided data. However, the current award of $99.3M suggests a significant and potentially ongoing need for this pharmaceutical product. Without prior contract data, it's difficult to establish a trend, but this large award implies either a substantial increase in demand, a new strategic initiative, or a consolidation of previous smaller procurements. Future analysis should focus on identifying any previous contracts for this specific drug or similar critical care injectables to understand spending patterns and identify potential cost efficiencies or shifts in procurement strategy over time.

How does the awarded price compare to market rates for similar pharmaceutical injectables?

A precise comparison of the awarded price to market rates for LEUKINE 250MCG VIL INJ is challenging without access to real-time market data and specific volume-based pricing agreements. The contract is for $99.3M over approximately 5.5 years, awarded under firm fixed price. To benchmark effectively, one would need to identify comparable pharmaceutical injectables with similar therapeutic uses and manufacturing complexities, then compare their average selling prices or government contract prices. Factors like bulk purchasing discounts, specific formulations (e.g., 250mcg vial, 5-package), and the competitive landscape for these specific drugs would influence market rates. Given the substantial award, it's reasonable to assume the government has negotiated favorable terms, but independent market analysis is crucial for a definitive value assessment.

What are the key performance indicators (KPIs) for this contract, and how will they be monitored?

Key performance indicators (KPIs) for a pharmaceutical supply contract like this typically revolve around delivery timeliness, product quality, and adherence to specifications. Specific KPIs would likely include on-time delivery rates, percentage of acceptable quality units received, and compliance with storage and handling requirements. Monitoring would involve regular reporting from the contractor, government inspections of delivered goods, and potentially audits of the contractor's quality management systems. The Office of Assistant Secretary for Preparedness and Response (ASPR) within HHS would be responsible for overseeing these KPIs and ensuring the contractor meets contractual obligations. Failure to meet KPIs could result in penalties or contract termination.

What is the track record of PARTNER THERAPEUTICS, INC. in fulfilling government contracts, particularly for pharmaceuticals?

Assessing the track record of PARTNER THERAPEUTICS, INC. requires a review of their past performance on federal contracts. This would involve searching government contract databases (like SAM.gov or FPDS) for previous awards to the company, examining past performance evaluations, and looking for any instances of contract disputes, terminations, or performance issues. A positive track record would include consistent on-time delivery, high-quality products, and adherence to contractual terms. Conversely, a history of performance problems could indicate higher risk for this current contract. Without specific historical data on PARTNER THERAPEUTICS, INC.'s government contracting performance, it's difficult to definitively assess their reliability for this significant award.

What are the potential risks associated with the long duration of this contract?

The long duration of this contract (1280 days, approximately 5.5 years) presents several potential risks. Firstly, market dynamics for pharmaceuticals can change rapidly due to new research, alternative treatments, or shifts in manufacturing costs, potentially making the fixed price less advantageous over time. Secondly, there's a risk of supply chain disruptions (e.g., raw material shortages, manufacturing issues, geopolitical events) that could impact the contractor's ability to deliver consistently over an extended period. Thirdly, the government's needs might evolve, requiring different products or quantities, which could be inflexible under a long-term fixed contract. Finally, contractor performance can degrade over time, and a long contract duration might mask early signs of declining quality or reliability.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 75A50323Q00021

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, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $99,315,090

Exercised Options: $99,315,090

Current Obligation: $99,315,090

Actual Outlays: $83,515,144

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36F79723D0171

IDV Type: FSS

Timeline