HHS awards $16.6M for Ciprofloxacin Injection to Sagent Pharmaceuticals, Inc

Contract Overview

Contract Amount: $16,638,758 ($16.6M)

Contractor: Sagent Pharmaceuticals, Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2025-09-30

End Date: 2026-09-29

Contract Duration: 364 days

Daily Burn Rate: $45.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: CIPROFLOXACIN SOLUTION FOR INJECTION, 400MG/ 200ML FLEXI-BAG

Place of Performance

Location: HINES, COOK County, ILLINOIS, 60141

State: Illinois Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $16.6 million to SAGENT PHARMACEUTICALS, INC for work described as: CIPROFLOXACIN SOLUTION FOR INJECTION, 400MG/ 200ML FLEXI-BAG Key points: 1. The contract is for a critical pharmaceutical product, Ciprofloxacin Injection. 2. Sagent Pharmaceuticals, Inc. is the sole awardee for this delivery order. 3. The contract duration is one year, with a firm fixed price. 4. The award falls under the Pharmaceutical Preparation Manufacturing sector.

Value Assessment

Rating: good

The award amount of $16.6M for 400mg/200ml flexi-bags of Ciprofloxacin Injection appears reasonable given the product's nature and the contract duration. Benchmarking against similar pharmaceutical contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. This method is expected to yield fair market prices and ensure value for taxpayer dollars.

Taxpayer Impact: The competitive award process aims to secure the best possible price for this essential medication, maximizing the value of taxpayer funds.

Public Impact

Ensures availability of a critical antibiotic for public health needs. Supports the Department of Health and Human Services' preparedness and response capabilities. Provides a stable supply chain for a vital pharmaceutical product.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This award is within the Pharmaceutical Preparation Manufacturing sector, which is crucial for national health security. Spending benchmarks in this sector can vary significantly based on drug type, volume, and contract terms.

Small Business Impact

The data does not indicate any specific set-asides for small businesses in this award. Further analysis would be needed to determine the extent of small business participation in the broader pharmaceutical supply chain.

Oversight & Accountability

The contract is managed by the Office of Assistant Secretary for Preparedness and Response (ASPR) within HHS, indicating oversight for critical medical supplies. Regular performance reviews and audits would ensure accountability.

Related Government Programs

Risk Flags

Tags

pharmaceutical-preparation-manufacturing, department-of-health-and-human-services, il, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $16.6 million to SAGENT PHARMACEUTICALS, INC. CIPROFLOXACIN SOLUTION FOR INJECTION, 400MG/ 200ML FLEXI-BAG

Who is the contractor on this award?

The obligated recipient is SAGENT PHARMACEUTICALS, 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 $16.6 million.

What is the period of performance?

Start: 2025-09-30. End: 2026-09-29.

What is the historical pricing trend for this specific Ciprofloxacin formulation and packaging?

Analyzing historical pricing data for this exact Ciprofloxacin formulation (400mg/200ml flexi-bag) is crucial. Without it, it's difficult to definitively assess if the current $16.6M award represents a favorable price point compared to previous procurements or market trends. Understanding past price variations can highlight potential cost efficiencies or identify areas where prices may have increased.

What are the risks associated with relying on a single supplier for this critical medication?

Reliance on a single supplier, Sagent Pharmaceuticals, Inc., for this delivery order presents risks such as supply chain disruptions due to unforeseen events (e.g., manufacturing issues, natural disasters, geopolitical instability). This could lead to shortages of a critical medication. Mitigation strategies might include maintaining strategic stockpiles or identifying alternative suppliers for future contracts.

How effectively does this contract contribute to the ASPR's mission of national health security?

This contract directly supports the ASPR's mission by ensuring the availability of Ciprofloxacin, a vital antibiotic used in various public health emergencies and treatments. By securing a year's supply through a competitive process, ASPR enhances its preparedness and response capabilities, contributing to national health security and the ability to manage critical medical needs.

Industry Classification

NAICS: ManufacturingPharmaceutical and Medicine ManufacturingPharmaceutical 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

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Nichi-Iko Pharmaceutical CO.,Ltd.

Address: 1901 N ROSELLE RD STE 450, SCHAUMBURG, IL, 60195

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $16,638,758

Exercised Options: $16,638,758

Current Obligation: $16,638,758

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36F79724D0107

IDV Type: FSS

Timeline

Start Date: 2025-09-30

Current End Date: 2026-09-29

Potential End Date: 2026-09-30 00:00:00

Last Modified: 2025-09-26

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