CDC's $10.8M Smallpox Vaccine Stockpile Contract Awarded to Wyeth in 1997

Contract Overview

Contract Amount: $10,839,308 ($10.8M)

Contractor: City of Milwaukee

Awarding Agency: Department of Health and Human Services

Start Date: 1997-06-01

End Date: 2002-05-31

Contract Duration: 1,825 days

Daily Burn Rate: $5.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: WYETH/97-00052/SMALLPOX VACCINE STOCKPILE

Place of Performance

Location: PHILADELPHIA, PHILADELPHIA County, PENNSYLVANIA, 19101, UNITED STATES OF AMERICA

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $10.8 million to CITY OF MILWAUKEE for work described as: WYETH/97-00052/SMALLPOX VACCINE STOCKPILE Key points: 1. Contract value of $10.8 million for a critical public health resource. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration of 5 years (1825 days) indicates a long-term supply need. 4. Firm Fixed Price contract type aims to control costs and provide budget certainty.

Value Assessment

Rating: good

The contract value of $10.8 million for a 5-year supply of smallpox vaccine appears reasonable given the critical nature of the product and the historical context of stockpile management. Benchmarking against similar public health procurements from the late 1990s 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, which typically allows for the widest possible range of bidders and promotes price discovery. This method is generally expected to yield competitive pricing.

Taxpayer Impact: The use of full and open competition suggests that taxpayers likely benefited from a fair market price for this essential public health stockpile.

Public Impact

Ensures availability of a critical vaccine for national security and public health emergencies. Supports the CDC's preparedness efforts against potential bioterrorism threats. Provides a stable supply chain for a vital pharmaceutical product.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases over the 5-year contract term.
Dependence on a single supplier for a critical vaccine.
Ensuring vaccine efficacy and shelf-life over the contract period.

Positive Signals

Proactive procurement of a vital public health resource.
Use of a competitive bidding process.
Firm Fixed Price contract for cost control.

Sector Analysis

This contract falls within the Healthcare and Pharmaceuticals sector, specifically focusing on biodefense and public health preparedness. Spending in this area is often driven by national security concerns and the need to maintain critical medical stockpiles.

Small Business Impact

The data indicates that small business participation was not a factor in this specific contract award. The procurement likely involved large pharmaceutical manufacturers capable of meeting the stringent requirements for vaccine production and supply.

Oversight & Accountability

Oversight would typically involve monitoring contract performance, ensuring timely delivery, and verifying vaccine quality and compliance with FDA regulations. The CDC's role as the contracting agency suggests a robust oversight framework.

Related Government Programs

Department of Health and Human Services Contracting
Centers for Disease Control and Prevention Programs

Risk Flags

Potential for vaccine obsolescence or reduced efficacy over time.
Dependence on a single manufacturer for a critical supply.
Limited information on specific performance metrics and quality assurance.
Price escalation not explicitly addressed for potential future needs beyond the contract term.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $10.8 million to CITY OF MILWAUKEE. WYETH/97-00052/SMALLPOX VACCINE STOCKPILE

Who is the contractor on this award?

The obligated recipient is CITY OF MILWAUKEE.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Centers for Disease Control and Prevention).

What is the total obligated amount?

The obligated amount is $10.8 million.

What is the period of performance?

Start: 1997-06-01. End: 2002-05-31.

What was the specific unit cost of the smallpox vaccine under this contract, and how does it compare to market prices at the time?

The provided data does not include the specific unit cost of the smallpox vaccine. To determine this, one would need to divide the total contract value ($10,839,308) by the total number of vaccine doses procured. Comparing this to market prices from 1997-2002 would require accessing historical pharmaceutical pricing data, which is not readily available in this dataset.

What were the primary risks associated with maintaining a smallpox vaccine stockpile in the late 1990s, and how did this contract address them?

Primary risks included vaccine efficacy degradation over time, potential supply chain disruptions, and the high cost of maintaining a large inventory. This contract, with its firm fixed price and 5-year duration, aimed to mitigate cost volatility and ensure a consistent supply. However, ongoing monitoring of vaccine stability and manufacturer reliability would have been crucial.

How effective was this contract in ensuring the availability of smallpox vaccine for public health needs during its term?

The contract's effectiveness can be inferred from its successful completion and the subsequent availability of the vaccine for public health purposes. The CDC's decision to procure through full and open competition suggests a focus on securing a reliable supply. However, a definitive assessment would require examining actual usage and any emergency response scenarios during the contract period.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 1997N00064

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 841 N BROADWAY FL 3, MILWAUKEE, WI, 53202

Business Categories: Category Business, Government, U.S. Local Government, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $11,324,179

Exercised Options: $11,374,308

Current Obligation: $10,839,308

Contract Characteristics

Multi-Year Contract: Yes

Timeline