HHS awarded $235M to Dynport Vaccine Company for biological product manufacturing, with 8 bidders

Contract Overview

Contract Amount: $235,119,971 ($235.1M)

Contractor: Dynport Vaccine Company LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2006-05-01

End Date: 2012-01-30

Contract Duration: 2,100 days

Daily Burn Rate: $112.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: COST PLUS FIXED FEE

Sector: Healthcare

Official Description: IGF::OT::IGF

Place of Performance

Location: FREDERICK, FREDERICK County, MARYLAND, 21702

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $235.1 million to DYNPORT VACCINE COMPANY LLC for work described as: IGF::OT::IGF Key points: 1. The contract's value of $235 million over its period of performance suggests a significant investment in biological product manufacturing. 2. With 8 bidders, the competition level indicates a moderately competitive market for these specialized services. 3. The contract type (Cost Plus Fixed Fee) can lead to cost overruns if not managed carefully. 4. The duration of the contract (2100 days) points to a long-term need for the services provided. 5. The specific product category (Biological Product, except Diagnostic) highlights a focus on advanced medical countermeasures. 6. The award to Dynport Vaccine Company LLC suggests a specific capability or existing relationship with the agency.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more specific details on the biological products manufactured and their market value. However, a $235 million award over approximately 5.75 years represents a substantial commitment. The Cost Plus Fixed Fee (CPFF) contract type, while allowing for flexibility, often carries a higher risk of cost escalation compared to fixed-price contracts. Without comparable contract data for similar biological product manufacturing services, it's difficult to definitively assess value for money, but the competitive bidding process offers some assurance.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with 8 bidders participating. This level of competition is generally positive, suggesting that multiple capable vendors were aware of and responded to the requirement. A higher number of bidders typically leads to better price discovery and can drive down costs for the government. The agency's decision to pursue full and open competition indicates a belief that a robust market exists for these services.

Taxpayer Impact: The full and open competition with 8 bidders is beneficial for taxpayers as it likely resulted in a more competitive pricing structure and ensured the government received offers from a wide range of qualified suppliers, maximizing the potential for cost savings.

Public Impact

The primary beneficiaries are likely the U.S. population, through the potential availability of critical biological products for public health needs. The services delivered involve the manufacturing of biological products, crucial for disease prevention, treatment, or response. The geographic impact is primarily national, ensuring domestic capacity for essential medical supplies. Workforce implications include job creation within the biological product manufacturing sector, potentially requiring specialized scientific and technical personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type introduces inherent risk of cost overruns if not rigorously managed.
The long contract duration (2100 days) necessitates sustained oversight to ensure continued performance and value.
Specific details on the 'biological products' are not provided, making it difficult to assess the criticality or market alternatives.
The contractor's track record with similar large-scale biological manufacturing contracts would be a key risk indicator.

Positive Signals

Awarded under full and open competition with 8 bidders, indicating a healthy competitive environment.
The contract addresses a critical area of public health (biological product manufacturing).
The agency (HHS) is responsible for public health, suggesting alignment with core mission objectives.
The definitive contract award implies a structured and documented procurement process.

Sector Analysis

The biological product manufacturing sector is a highly specialized and critical component of the healthcare and defense industries. It involves the research, development, and production of vaccines, therapeutics, and other biological agents. This sector is characterized by high barriers to entry due to stringent regulatory requirements, significant capital investment, and the need for specialized expertise. Government contracts in this area often support national biodefense initiatives, pandemic preparedness, and the development of novel medical countermeasures. Comparable spending benchmarks would depend heavily on the specific type and scale of biological products being manufactured.

Small Business Impact

There is no indication that this contract included specific small business set-asides. The nature of biological product manufacturing often requires large-scale facilities and specialized expertise, which may favor larger, established companies. However, the prime contractor, Dynport Vaccine Company LLC, could potentially engage small businesses as subcontractors for specific components or services, contributing to the small business ecosystem indirectly. Further analysis would be needed to determine the extent of small business subcontracting.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Health and Human Services (HHS), specifically the Office of Assistant Secretary for Preparedness and Response (ASPR). Mechanisms likely include regular performance reviews, financial audits, and adherence to contractual milestones. Transparency is generally maintained through contract award databases, though specific operational details may be sensitive. The Inspector General of HHS would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Biodefense Programs
Vaccine Development and Manufacturing
Medical Countermeasures
Public Health Preparedness
Pharmaceutical Manufacturing Contracts

Risk Flags

Contract Type Risk (CPFF)
Long-Term Commitment
Specialized Industry Requirements
Potential for Cost Overruns

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $235.1 million to DYNPORT VACCINE COMPANY LLC. IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is DYNPORT VACCINE COMPANY LLC.

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 $235.1 million.

What is the period of performance?

Start: 2006-05-01. End: 2012-01-30.

What is Dynport Vaccine Company LLC's track record in fulfilling large-scale biological product manufacturing contracts for the government?

Information regarding Dynport Vaccine Company LLC's specific track record in fulfilling large-scale biological product manufacturing contracts is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or successes with similar government procurements. Understanding their experience with Cost Plus Fixed Fee (CPFF) contracts and their ability to manage complex manufacturing processes under such terms would be crucial for evaluating their reliability and the potential risks associated with this award.

How does the $235 million contract value compare to similar government contracts for biological product manufacturing?

Direct comparison of the $235 million contract value to similar government contracts for biological product manufacturing is difficult without more specific details on the exact nature of the biological products and the scope of manufacturing services required. However, given the duration of over 5 years and the specialized nature of the industry, $235 million represents a substantial investment. Contracts in this sector can range widely based on product type (e.g., vaccines vs. therapeutics), production volume, and research & development components. Further analysis would involve benchmarking against contracts for similar product categories and production scales awarded by agencies like HHS, DoD, or NIH.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for biological product manufacturing?

The primary risks associated with a CPFF contract for biological product manufacturing revolve around cost control and potential overruns. While the fixed fee provides the contractor with a guaranteed profit margin, the 'cost plus' component means the government bears the risk of increased expenses incurred during production. In a complex field like biological manufacturing, unforeseen technical challenges, material cost fluctuations, or regulatory changes can significantly drive up costs. Effective oversight, detailed cost tracking, and robust negotiation of the fee are essential to mitigate these risks and ensure the government receives value for its investment.

What is the strategic importance of this contract for HHS's mission and public health preparedness?

This contract is strategically important for HHS's mission, particularly for the Office of Assistant Secretary for Preparedness and Response (ASPR), as it directly supports the nation's capability to produce essential biological products. Such manufacturing capacity is critical for responding to public health emergencies, including pandemics, bioterrorism threats, and emerging infectious diseases. By securing manufacturing services for these products, HHS enhances its ability to stockpile necessary medical countermeasures, ensuring timely availability during crises and bolstering overall national health security.

How has HHS spending in the biological product manufacturing sector evolved over time, and does this contract represent a trend?

Analyzing historical HHS spending in the biological product manufacturing sector would require access to detailed budget and contract data over multiple fiscal years. Without that specific data, it's impossible to definitively state whether this $235 million contract represents a trend. However, government investment in this area has generally seen fluctuations tied to national security priorities, public health threats (like pandemics), and advancements in biotechnology. Increased focus on preparedness and domestic manufacturing capabilities could indicate a growing trend in such contract awards.

What are the potential implications of awarding a long-term contract (2100 days) for biological product manufacturing?

Awarding a long-term contract, such as this 2100-day (approx. 5.75 years) agreement, for biological product manufacturing offers several implications. Positively, it provides stability and predictability for both the government and the contractor, fostering a strong working relationship and potentially leading to process efficiencies. It ensures a consistent supply of critical products over an extended period. However, it also necessitates sustained government oversight to ensure ongoing performance, adapt to potential technological advancements, and manage risks over the contract's lifecycle. It commits significant resources over a long horizon, requiring careful justification and ongoing evaluation of need.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 8

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Wico Limited

Address: 64 THOMAS JOHNSON DR, FREDERICK, MD, 21702

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $235,119,971

Exercised Options: $235,119,971

Current Obligation: $235,119,971

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline