HHS awards $1.23B for Anthrax Vaccine Adsorbed (AVA) to Emergent BioDefense, facing limited competition
Contract Overview
Contract Amount: $1,234,686,641 ($1.2B)
Contractor: Emergent Biodefense Operations Lansing LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2011-09-30
End Date: 2016-11-30
Contract Duration: 1,888 days
Daily Burn Rate: $654.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: ANTHRAX VACCINE ADSORBED (AVA)
Place of Performance
Location: LANSING, INGHAM County, MICHIGAN, 48906
State: Michigan Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $1.23 billion to EMERGENT BIODEFENSE OPERATIONS LANSING LLC for work described as: ANTHRAX VACCINE ADSORBED (AVA) Key points: 1. Significant investment in a critical biodefense product. 2. Sole reliance on Emergent BioDefense raises supply chain concerns. 3. Contract value is substantial, requiring careful cost oversight. 4. Sector focus is biopharmaceutical manufacturing for public health.
Value Assessment
Rating: fair
The contract value of $1.23 billion over five years is substantial. Without competitive bidding, it's difficult to assess if this price represents fair value compared to potential alternatives or market rates for similar biological products.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there is no market pressure to drive down prices.
Taxpayer Impact: The lack of competition may result in higher taxpayer costs for this essential vaccine.
Public Impact
Ensures availability of a critical vaccine for national biodefense. Potential for supply chain disruptions if Emergent BioDefense faces production issues. Taxpayers bear the cost of a non-competitive award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price negotiation.
- High contract value requires robust oversight.
- Dependence on a single supplier poses supply chain risk.
Positive Signals
- Secures a vital public health asset.
- Long-term contract provides supply stability.
Sector Analysis
This contract falls within the biopharmaceutical manufacturing sector, specifically for biological products. Spending benchmarks for such specialized, high-value contracts are difficult to establish due to unique development and production requirements.
Small Business Impact
The contract was awarded to Emergent BioDefense Operations Lansing LLC, a large business. There is no indication of small business participation in this specific award, which is common for highly specialized biopharmaceutical production.
Oversight & Accountability
Given the sole-source nature and significant value, robust oversight is crucial to ensure performance, quality, and adherence to contract terms. The CDC should actively monitor production and delivery.
Related Government Programs
- Biological Product (except Diagnostic) Manufacturing
- Department of Health and Human Services Contracting
- Centers for Disease Control and Prevention Programs
Risk Flags
- Sole-source award
- High contract value
- Single supplier dependency
- Potential for supply chain disruption
- Lack of competitive pricing pressure
Tags
biological-product-except-diagnostic-man, department-of-health-and-human-services, mi, definitive-contract, billion-dollar
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $1.23 billion to EMERGENT BIODEFENSE OPERATIONS LANSING LLC. ANTHRAX VACCINE ADSORBED (AVA)
Who is the contractor on this award?
The obligated recipient is EMERGENT BIODEFENSE OPERATIONS LANSING LLC.
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 $1.23 billion.
What is the period of performance?
Start: 2011-09-30. End: 2016-11-30.
What is the government's strategy to mitigate the risk associated with relying on a single supplier for the anthrax vaccine?
The government's strategy likely involves close monitoring of Emergent BioDefense's production capabilities, maintaining strategic stockpiles, and potentially exploring alternative suppliers or technologies for future procurements. However, the current contract structure indicates a primary reliance on this single entity for immediate supply needs.
How does the government ensure the quality and efficacy of the anthrax vaccine under this sole-source contract?
Quality assurance is typically managed through stringent contract requirements, including adherence to Good Manufacturing Practices (GMP), regular facility inspections, and rigorous testing of vaccine batches before acceptance. The CDC would have specific quality control protocols in place to verify the vaccine meets all safety and efficacy standards.
What is the long-term plan for anthrax vaccine procurement beyond this contract's expiration?
Beyond this contract, the government will likely reassess its needs and the market landscape. This could involve re-competing the requirement, seeking new technologies, or negotiating follow-on contracts. The decision will depend on factors like vaccine efficacy, production capacity, and the evolving threat assessment.
Industry Classification
NAICS: Manufacturing › Pharmaceutical and Medicine Manufacturing › Biological Product (except Diagnostic) Manufacturing
Product/Service Code: MEDICAL/DENTAL/VETERINARY EQPT/SUPP
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: 2011N13414
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Emergent Biosolutions Inc. (UEI: 173570271)
Address: 3500 N MARTIN LUTHER KING JR BLVD # 1, LANSING, MI, 48906
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: $1,359,695,769
Exercised Options: $1,234,686,641
Current Obligation: $1,234,686,641
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2011-09-30
Current End Date: 2016-11-30
Potential End Date: 2016-11-30 00:00:00
Last Modified: 2018-07-17
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