HHS awards $2.6M for biological product manufacturing to Emergent Biosolutions

Contract Overview

Contract Amount: $26,553,434 ($26.6M)

Contractor: Emergent Biosolutions Canada Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2018-02-27

End Date: 2019-02-26

Contract Duration: 364 days

Daily Burn Rate: $72.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: VIGIV

Plain-Language Summary

Department of Health and Human Services obligated $26.6 million to EMERGENT BIOSOLUTIONS CANADA INC for work described as: VIGIV Key points: 1. Contract awarded to Emergent Biosolutions Canada Inc. for biological product manufacturing. 2. The contract value is $2,655,343. 3. This was a sole-source award, raising questions about competition. 4. The sector is Biological Product (except Diagnostic) Manufacturing.

Value Assessment

Rating: fair

The contract value of $2.6M is relatively small for biological product manufacturing. Without competitive bidding, it's difficult to assess if this price is optimal compared to market rates for similar services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as competition is bypassed.

Taxpayer Impact: The lack of competition may result in a higher cost to taxpayers than if the contract had been competitively bid.

Public Impact

Ensures supply of critical biological products. Potential for higher costs due to sole-source nature. Limited transparency on the justification for sole-source award.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Limited competition

Positive Signals

Ensures supply of critical product

Sector Analysis

This contract falls within the Biological Product (except Diagnostic) Manufacturing sector, which is critical for public health preparedness. Spending in this sector can vary widely based on product type and demand.

Small Business Impact

There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors.

Oversight & Accountability

The sole-source nature of this award warrants further oversight to ensure the justification was sound and that taxpayer funds were used efficiently.

Related Government Programs

Biological Product (except Diagnostic) Manufacturing
Department of Health and Human Services Contracting
Office of Assistant Secretary for Preparedness and Response Programs

Risk Flags

Sole-source award limits competition.
Potential for inflated pricing due to lack of competition.
Lack of transparency regarding justification for sole-source.
No clear indication of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $26.6 million to EMERGENT BIOSOLUTIONS CANADA INC. VIGIV

Who is the contractor on this award?

The obligated recipient is EMERGENT BIOSOLUTIONS CANADA 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 $26.6 million.

What is the period of performance?

Start: 2018-02-27. End: 2019-02-26.

What was the specific justification for awarding this contract on a sole-source basis?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of adequate competition. Without further details from HHS, it's impossible to ascertain the precise reason. This information is crucial for understanding if the government received the best possible value and if alternative sources were truly unavailable or unsuitable.

How does the awarded price compare to industry benchmarks for similar biological product manufacturing services?

Assessing the price competitiveness is challenging without a competitive bidding process. A sole-source award means the government did not leverage market competition to drive down costs. A thorough review would involve comparing the unit costs and overall contract value against publicly available data or expert analysis of similar manufacturing contracts, if such data exists.

What is the long-term strategic value of this contract for the Department of Health and Human Services?

The long-term strategic value likely lies in securing a reliable supply chain for essential biological products, potentially for national stockpiles or specific public health initiatives. However, the sole-source nature raises concerns about sustained cost-effectiveness and potential over-reliance on a single vendor, which could pose risks if the vendor faces production issues or price increases.

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: 2017Q67378

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Emergent Biosolutions Inc. (UEI: 173570271)

Address: 155 INNOVATION DR, WINNIPEG

Business Categories: Category Business, Corporate Entity Tax Exempt, Foreign Owned, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $26,553,434

Exercised Options: $26,553,434

Current Obligation: $26,553,434

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $3,571,013

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline