HHS/CDC Spends $1.32B on Childhood Vaccines in 2009 from Merck
Contract Overview
Contract Amount: $1,319,368,887 ($1.3B)
Contractor: Merck Sharp & Dohme Corp.
Awarding Agency: Department of Health and Human Services
Start Date: 2009-04-01
End Date: 2010-04-30
Contract Duration: 394 days
Daily Burn Rate: $3.3M/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: VACCINE FOR CHILDREN 2009
Place of Performance
Location: ATLANTA, DEKALB County, GEORGIA, 30329, UNITED STATES OF AMERICA
State: Georgia Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $1.32 billion to MERCK SHARP & DOHME CORP. for work described as: VACCINE FOR CHILDREN 2009 Key points: 1. Significant investment in childhood vaccines highlights public health priorities. 2. Merck Sharp & Dohme Corp. secured the contract, indicating a key supplier. 3. Full and open competition was utilized, suggesting a robust procurement process. 4. The contract value is substantial, requiring careful monitoring for cost-effectiveness.
Value Assessment
Rating: good
The contract value of $1.32 billion for vaccine preparation manufacturing is substantial. Benchmarking against similar large-scale pharmaceutical procurements is difficult without specific unit cost data, but the firm fixed-price structure suggests a degree of cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically drives competitive pricing. The firm fixed-price contract type further aids price discovery by setting a definitive cost for the goods.
Taxpayer Impact: The significant expenditure on vaccines aims to improve public health outcomes, representing a long-term investment in child welfare and disease prevention.
Public Impact
Ensures availability of critical vaccines for children, supporting public health initiatives. Large contract value may influence market dynamics for vaccine manufacturing. Potential for long-term supply agreements based on this initial award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- High contract value requires diligent oversight to ensure value for money.
- Dependence on a single supplier (Merck) could pose supply chain risks.
- Potential for price increases in future contract renewals.
Positive Signals
- Procurement utilized full and open competition, promoting market fairness.
- Firm fixed-price contract provides cost predictability.
- Addresses a critical public health need for childhood immunizations.
Sector Analysis
The pharmaceutical preparation manufacturing sector is characterized by high R&D costs, stringent regulatory requirements, and significant market concentration. This contract represents a major federal investment in a critical public health area within this sector.
Small Business Impact
The data does not indicate specific participation or subcontracting by small businesses in this large pharmaceutical contract. Typically, large prime contracts in this sector may involve complex supply chains where small businesses could play a role in specialized components or services.
Oversight & Accountability
The Centers for Disease Control and Prevention (CDC) is responsible for overseeing this contract. Robust oversight is crucial given the value and public health implications, ensuring adherence to quality standards and delivery schedules.
Related Government Programs
- Pharmaceutical Preparation Manufacturing
- Department of Health and Human Services Contracting
- Centers for Disease Control and Prevention Programs
Risk Flags
- High contract value
- Sole-source potential in future renewals
- Supply chain disruption risk
- Price volatility in pharmaceutical markets
Tags
pharmaceutical-preparation-manufacturing, department-of-health-and-human-services, ga, dca, billion-dollar
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $1.32 billion to MERCK SHARP & DOHME CORP.. VACCINE FOR CHILDREN 2009
Who is the contractor on this award?
The obligated recipient is MERCK SHARP & DOHME CORP..
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 $1.32 billion.
What is the period of performance?
Start: 2009-04-01. End: 2010-04-30.
What was the average cost per vaccine dose under this contract?
The provided data does not specify the number of vaccine doses or the breakdown of costs per unit. The total award amount of $1.32 billion is for 'Pharmaceutical Preparation Manufacturing,' which could encompass various vaccine types and quantities. A detailed cost analysis would require further information on the specific products and volumes procured.
What were the key performance indicators and quality assurance measures for this vaccine contract?
Specific performance indicators and quality assurance measures are not detailed in the provided data. However, for pharmaceutical preparations, especially vaccines, stringent quality control, adherence to Good Manufacturing Practices (GMP), and timely delivery are standard requirements. The CDC would typically have robust protocols in place to monitor these aspects.
Were there any post-award modifications or contract adjustments made during the performance period?
The provided data does not include information on post-award modifications or contract adjustments. The contract duration was approximately 13 months (April 2009 to April 2010). Any significant changes would typically be documented through contract modification records, which are not available here.
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
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Merck & CO., Inc. (UEI: 054554290)
Address: 770 SUMNEYTOWN PIKE, WEST POINT, PA, 19486
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $1,504,849,470
Exercised Options: $1,504,849,470
Current Obligation: $1,319,368,887
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2009-04-01
Current End Date: 2010-04-30
Potential End Date: 2010-04-30 00:00:00
Last Modified: 2015-11-24
More Contracts from Merck Sharp & Dohme Corp.
- Vaccine for Children — $1.4B (Department of Health and Human Services)
- TAS::75 0512::TAS 00hcvgbc-2010-82343 - Merck Pediatric Vaccine Contract — $1.3B (Department of Health and Human Services)
- TAS::75 0512::TAS Purchase of Vaccine for Children — $1.3B (Department of Health and Human Services)
- Vaccine for Children 2011 — $1.3B (Department of Health and Human Services)
- Vaccine for Children 2008 Contract — $1.2B (Department of Health and Human Services)
Other Department of Health and Human Services Contracts
- Contact Center Operations (CCO) — $5.5B (Maximus Federal Services, Inc.)
- TAS::75 0849::TAS Oper of Govt R&D Goco Facilities — $4.8B (Leidos Biomedical Research Inc)
- THE Purpose of This Contract IS to Provide the Full Complement of Services Necessary to Care for UC in ORR Custody Including Facilities Set-Up, Maintenance, and Support Internal and Perimeter (IF Applicable) Security, Direct Care and Supervision Inc — $3.5B (Rapid Deployment Inc)
- Contact Center Operations — $2.6B (Maximus Federal Services, Inc.)
- Federal Contract — $2.4B (Leidos Biomedical Research Inc)
View all Department of Health and Human Services contracts →