HHS Awards $65.1M for Ebola Vaccine Development to Merck Sharp & Dohme LLC
Contract Overview
Contract Amount: $65,103,309 ($65.1M)
Contractor: Merck Sharp & Dohme LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2016-08-29
End Date: 2024-09-30
Contract Duration: 2,954 days
Daily Burn Rate: $22.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: BPS - ADVANCE THE DEVELOPMENT OF V920, A VACCINE AGAINST EBOLA VIRUS USING A RECOMBINANT VESICULAR STOMATITIS VIRUS VECTOR. IGF::OT::IGF
Place of Performance
Location: AMES, STORY County, IOWA, 50010
State: Iowa Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $65.1 million to MERCK SHARP & DOHME LLC for work described as: BPS - ADVANCE THE DEVELOPMENT OF V920, A VACCINE AGAINST EBOLA VIRUS USING A RECOMBINANT VESICULAR STOMATITIS VIRUS VECTOR. IGF::OT::IGF Key points: 1. Contract focuses on developing V920, an Ebola vaccine using a recombinant VSV vector. 2. Merck Sharp & Dohme LLC is the sole awardee for this specific development effort. 3. The contract spans nearly 8 years, indicating a long-term R&D commitment. 4. This falls under the Biotechnology Research and Development NAICS code.
Value Assessment
Rating: good
The contract type is Cost Plus Fixed Fee, which is common for R&D where final costs are uncertain. The award amount of $65.1M over nearly 8 years suggests a significant investment in vaccine development.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting multiple vendors had the opportunity to bid. This method aims to ensure fair pricing and access to the best available technology.
Taxpayer Impact: Taxpayer funds are being invested in critical public health infrastructure, specifically the development of a vaccine for a dangerous disease, which has long-term societal benefits.
Public Impact
Development of a vaccine against the Ebola virus, a significant public health threat. Investment in advanced biotechnology research and development capabilities. Potential for future pandemic preparedness and response. Supports the advancement of novel vaccine vector technologies.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration may lead to cost overruns if not managed effectively.
- Reliance on a single contractor for a critical vaccine development phase.
- Uncertainty in R&D outcomes can impact the value for money.
Positive Signals
- Addresses a critical public health need with a potentially life-saving vaccine.
- Utilizes advanced recombinant viral vector technology.
- Awarded through full and open competition, promoting market fairness.
Sector Analysis
This contract falls within the Biotechnology Research and Development sector, a high-growth area focused on scientific innovation. Spending benchmarks for similar R&D contracts can vary widely based on the complexity and stage of development.
Small Business Impact
The contract was awarded to Merck Sharp & Dohme LLC, a large pharmaceutical company. There is no indication of specific set-asides or participation goals for small businesses in this award.
Oversight & Accountability
The contract is managed by the Department of Health and Human Services, specifically the Office of Assistant Secretary for Preparedness and Response, indicating a focus on public health emergencies. Oversight would typically involve monitoring research progress, adherence to cost controls, and milestone achievement.
Related Government Programs
- Research and Development in Biotechnology
- Department of Health and Human Services Contracting
- Office of Assistant Secretary for Preparedness and Response Programs
Risk Flags
- Long-term commitment with potential for scope creep.
- Reliance on a single large entity for critical R&D.
- Cost uncertainty inherent in research and development.
- Potential for delays in clinical trials or regulatory approval.
- Need for robust oversight to ensure value for money.
Tags
research-and-development-in-biotechnolog, department-of-health-and-human-services, ia, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $65.1 million to MERCK SHARP & DOHME LLC. BPS - ADVANCE THE DEVELOPMENT OF V920, A VACCINE AGAINST EBOLA VIRUS USING A RECOMBINANT VESICULAR STOMATITIS VIRUS VECTOR. IGF::OT::IGF
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 (Office of Assistant Secretary for Preparedness and Response).
What is the total obligated amount?
The obligated amount is $65.1 million.
What is the period of performance?
Start: 2016-08-29. End: 2024-09-30.
What is the projected timeline for the completion of V920 vaccine development and potential market approval?
The contract end date is September 30, 2024, suggesting this is the anticipated completion for this phase of development. However, vaccine development is a lengthy process involving multiple stages, including clinical trials and regulatory review. Further information would be needed to determine the full timeline to market approval.
How does the Cost Plus Fixed Fee structure mitigate risks associated with R&D uncertainty for taxpayers?
The Cost Plus Fixed Fee (CPFF) structure allows the government to reimburse the contractor for actual costs incurred plus a predetermined fixed fee representing profit. While it accommodates R&D uncertainty, the government bears the risk of cost overruns. Effective oversight and clear milestone definitions are crucial to manage this risk and ensure value for taxpayer money.
What are the key performance indicators (KPIs) used to measure the effectiveness of this vaccine development contract?
Effectiveness is likely measured by achieving specific research and development milestones, such as successful preclinical studies, demonstration of the vaccine's safety and immunogenicity in early-stage trials, and progress towards a viable manufacturing process. Adherence to the scientific plan and timely delivery of research outcomes are also key indicators.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in Biotechnology
Product/Service Code: RESEARCH AND DEVELOPMENT › N – Health R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: CBRNBAA13100SOL00013
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
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, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $78,296,147
Exercised Options: $65,103,309
Current Obligation: $65,103,309
Actual Outlays: $31,499,937
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2016-08-29
Current End Date: 2024-09-30
Potential End Date: 2024-09-30 00:00:00
Last Modified: 2025-09-04
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