HHS awards $23.9M contract for adult vaccines to Merck Sharp & Dohme LLC

Contract Overview

Contract Amount: $23,952,373 ($24.0M)

Contractor: Merck Sharp & Dohme LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2014-07-01

End Date: 2015-06-30

Contract Duration: 364 days

Daily Burn Rate: $65.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: VACCINES FOR ADULTS 2014

Place of Performance

Location: WEST POINT, MONTGOMERY County, PENNSYLVANIA, 19486

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $24.0 million to MERCK SHARP & DOHME LLC for work described as: VACCINES FOR ADULTS 2014 Key points: 1. Contract awarded to a single, well-established pharmaceutical company. 2. The contract value is significant, indicating a substantial need for adult vaccines. 3. Competition was full and open, suggesting a competitive bidding process. 4. The sector is pharmaceuticals, a critical area for public health.

Value Assessment

Rating: good

The contract was awarded using a firm-fixed-price structure, which provides cost certainty. Without specific unit pricing data or benchmarks for similar vaccine procurements, a precise value assessment is difficult, but the total award amount appears reasonable for a year's supply of adult vaccines.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes price discovery and can lead to more favorable pricing for the government.

Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by securing competitive pricing for essential adult vaccines.

Public Impact

Ensures availability of critical adult vaccines for public health programs. Supports disease prevention and reduces healthcare burdens associated with vaccine-preventable illnesses. Provides a stable supply chain for essential pharmaceutical products.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific unit cost data for detailed price analysis.
Potential for price increases in future contract renewals if competition diminishes.

Positive Signals

Awarded under full and open competition.
Firm-fixed-price contract provides budget predictability.
Procurement supports a vital public health need.

Sector Analysis

The pharmaceutical sector is characterized by high R&D costs, stringent regulatory requirements, and significant market competition. Spending on vaccines is a crucial component of public health initiatives, with government contracts often awarded to major pharmaceutical manufacturers.

Small Business Impact

This contract was awarded to Merck Sharp & Dohme LLC, a large pharmaceutical company. There is no indication that small businesses were involved as prime contractors or significant subcontractors in this specific award.

Oversight & Accountability

The contract was awarded by the Centers for Disease Control and Prevention (CDC), a federal agency with established procurement processes. Oversight would typically involve contract management to ensure delivery and adherence to terms, with standard federal acquisition regulations applying.

Related Government Programs

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

Risk Flags

Lack of detailed unit pricing.
Limited information on specific vaccine types.
No explicit mention of small business participation.
Potential for price escalation in future procurements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $24.0 million to MERCK SHARP & DOHME LLC. VACCINES FOR ADULTS 2014

Who is the contractor on this award?

The obligated recipient is MERCK SHARP & DOHME 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 $24.0 million.

What is the period of performance?

Start: 2014-07-01. End: 2015-06-30.

What was the average cost per vaccine dose under this contract?

The provided data does not specify the number of individual vaccine doses procured, only the total contract value of $23,952,372.50. To determine the average cost per dose, the total value would need to be divided by the total number of doses. Without this quantity information, a per-unit cost cannot be calculated.

What specific adult vaccines were included in this procurement?

The contract description 'VACCINES FOR ADULTS 2014' and the North American Industry Classification System (NAICS) code '315412' (Pharmaceutical Preparation Manufacturing) indicate the general category. However, the specific types and formulations of adult vaccines covered under this contract are not detailed in the provided data. Further information would be needed to identify the exact vaccines.

Were there any performance metrics or quality standards specified in the contract?

The data indicates a 'DEFINITIVE CONTRACT' with a 'FIRM FIXED PRICE' type and a duration of 364 days. While standard for such contracts, specific performance metrics, delivery schedules, and quality assurance requirements are not detailed here. These are typically outlined in the contract's statement of work and associated clauses.

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

Solicitation ID: 2014N15815

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Merck & CO., Inc.

Address: ONE MERCK DRIVE, WHITEHOUSE STATION, NJ, 08889

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: $94,525,918

Exercised Options: $94,525,918

Current Obligation: $23,952,373

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline