HHS Spends $32.5M on Avian Flu Vaccine for National Stockpile

Contract Overview

Contract Amount: $32,500,007 ($32.5M)

Contractor: Sanofi Vaccines US Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2008-09-18

End Date: 2009-09-17

Contract Duration: 364 days

Daily Burn Rate: $89.3K/day

Competition Type: NON-COMPETITIVE DELIVERY ORDER

Number of Offers Received: 3

Pricing Type: FIXED PRICE

Sector: Healthcare

Official Description: ACQUISITON OF AVIAN INFLUENZA H5N1 VACCINE (VIRUS STRAIN: VIETNAM) FOR STRATEGIC NATIONAL STOCKPILE

Place of Performance

Location: SWIFTWATER, MONROE County, PENNSYLVANIA, 18370, UNITED STATES OF AMERICA

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $32.5 million to SANOFI VACCINES US INC. for work described as: ACQUISITON OF AVIAN INFLUENZA H5N1 VACCINE (VIRUS STRAIN: VIETNAM) FOR STRATEGIC NATIONAL STOCKPILE Key points: 1. Significant investment in pandemic preparedness through vaccine acquisition. 2. Sole-source procurement raises questions about price discovery and competition. 3. Potential risk of vaccine obsolescence if H5N1 strain evolves. 4. Focus on a specific virus strain may limit broad pandemic response.

Value Assessment

Rating: fair

The contract price of $32.5 million for a fixed-price delivery order appears high given the non-competitive nature. Benchmarking against similar pandemic preparedness vaccine procurements would be necessary for a definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This was a non-competitive delivery order, likely due to the specific nature of the vaccine strain required for the Strategic National Stockpile. The lack of competition limits the government's ability to negotiate the best possible price.

Taxpayer Impact: Taxpayers funded a critical public health asset, but the absence of competition may have resulted in a higher cost than if multiple vendors had been considered.

Public Impact

Ensures a supply of vaccine against a specific avian flu strain to protect public health. Supports national biodefense and pandemic preparedness initiatives. The vaccine will be stored in the Strategic National Stockpile for rapid deployment during an emergency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source procurement
Potential for vaccine obsolescence
Limited competition may lead to higher costs

Positive Signals

Addresses a specific public health threat
Enhances national biodefense capabilities

Sector Analysis

This acquisition falls under the pharmaceutical and biotechnology sector, specifically related to vaccine manufacturing for public health emergencies. Spending benchmarks for pandemic preparedness stockpiles vary widely based on threat assessment and specific countermeasures.

Small Business Impact

The data does not indicate any specific involvement or benefit to small businesses in this sole-source acquisition. Large pharmaceutical companies typically dominate vaccine production.

Oversight & Accountability

The Department of Health and Human Services, through the Office of Assistant Secretary for Preparedness and Response, is responsible for managing the Strategic National Stockpile. Oversight would focus on inventory management, vaccine efficacy, and procurement processes.

Related Government Programs

Medicinal and Botanical Manufacturing
Department of Health and Human Services Contracting
Office of Assistant Secretary for Preparedness and Response Programs

Risk Flags

Sole-source procurement limits price competition.
Vaccine efficacy may degrade over time due to viral mutation.
Reliance on a single strain may not cover all pandemic scenarios.
High cost for a single delivery order.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $32.5 million to SANOFI VACCINES US INC.. ACQUISITON OF AVIAN INFLUENZA H5N1 VACCINE (VIRUS STRAIN: VIETNAM) FOR STRATEGIC NATIONAL STOCKPILE

Who is the contractor on this award?

The obligated recipient is SANOFI VACCINES US 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 $32.5 million.

What is the period of performance?

Start: 2008-09-18. End: 2009-09-17.

What was the justification for procuring this specific H5N1 vaccine strain on a sole-source basis?

The justification for a sole-source procurement likely stems from the specific requirements of the Strategic National Stockpile, which may necessitate a particular vaccine formulation or strain that only one manufacturer can provide. This could be due to proprietary technology, existing development contracts, or the unique characteristics of the Vietnam H5N1 strain.

What is the risk of this vaccine becoming obsolete before it is needed?

The risk of obsolescence is moderate. Influenza viruses, including H5N1, are known to mutate. If the circulating strains evolve significantly, the efficacy of this specific vaccine could be diminished. Regular monitoring of viral strains and potential updates to the stockpile are crucial mitigation strategies.

How does this acquisition contribute to overall pandemic preparedness effectiveness?

This acquisition contributes to effectiveness by ensuring a readily available supply of a specific countermeasure against a known threat. However, its overall effectiveness is contingent on the continued relevance of the vaccine strain and the ability to rapidly deploy it. A diverse stockpile with multiple vaccine types would offer broader protection.

Industry Classification

NAICS: Manufacturing › Pharmaceutical and Medicine Manufacturing › Medicinal and Botanical Manufacturing

Product/Service Code: MEDICAL/DENTAL/VETERINARY EQPT/SUPP

Competition & Pricing

Extent Competed: NON-COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: RFPHHSBARDA0825

Offers Received: 3

Pricing Type: FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Sanofi Pasteur MSD SNC (UEI: 577272925)

Address: DISCOVERY DR, SWIFTWATER, PA, 18370

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $3,595,381,895

Exercised Options: $998,290,215

Current Obligation: $32,500,007

Contract Characteristics

Multi-Year Contract: Yes

Parent Contract

Parent Award PIID: HHSO100200800073I

IDV Type: IDC

Timeline