HHS awards $40.6M for H7N9 Bulk Lots to Sanofi Vaccines US Inc. under full and open competition

Contract Overview

Contract Amount: $40,642,758 ($40.6M)

Contractor: Sanofi Vaccines US Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2017-05-19

End Date: 2017-12-31

Contract Duration: 226 days

Daily Burn Rate: $179.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: H7N9 BULK LOTS

Place of Performance

Location: SWIFTWATER, MONROE County, PENNSYLVANIA, 18370

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $40.6 million to SANOFI VACCINES US INC. for work described as: H7N9 BULK LOTS Key points: 1. Significant investment in pandemic preparedness for H7N9 strain. 2. Competition method suggests potential for competitive pricing. 3. Contract duration of 226 days indicates a focused, short-term need. 4. The biological product manufacturing sector is critical for public health.

Value Assessment

Rating: good

The award amount of $40.6M for biological product manufacturing appears reasonable given the nature of vaccine bulk lots. Benchmarking against similar large-scale biological product procurements would provide a more precise assessment.

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 is generally expected to drive competitive pricing and ensure the government receives fair value.

Taxpayer Impact: The expenditure supports national health security by ensuring the availability of critical biological products, ultimately benefiting taxpayers through preparedness.

Public Impact

Ensures availability of H7N9 vaccine components for public health emergencies. Supports the domestic pharmaceutical manufacturing sector. Contributes to national biodefense and pandemic preparedness strategies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions in biological product manufacturing.
Dependence on a single supplier for critical vaccine components.

Positive Signals

Proactive procurement for a specific viral strain.
Use of a competitive bidding process.

Sector Analysis

This procurement falls within the biological product manufacturing sector, which is vital for national health security and pandemic response. Spending in this area is often driven by public health needs and research initiatives.

Small Business Impact

The data does not indicate specific participation or subcontracting by small businesses in this particular award. Further analysis would be needed to determine the extent of small business involvement.

Oversight & Accountability

The contract was awarded by the Office of Assistant Secretary for Preparedness and Response (ASPR), a key agency for managing health emergencies. Oversight would focus on delivery timelines and product quality.

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

Potential for long-term obsolescence if H7N9 strain evolves.
Reliance on specific manufacturing capabilities.
Quality control challenges inherent in biological product manufacturing.
Market concentration in vaccine production.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $40.6 million to SANOFI VACCINES US INC.. H7N9 BULK LOTS

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 $40.6 million.

What is the period of performance?

Start: 2017-05-19. End: 2017-12-31.

What is the projected cost per unit for the H7N9 bulk lots?

The provided data does not specify a per-unit cost for the H7N9 bulk lots. The total award is $40.6 million for a quantity of 4 (likely referring to lots or batches). A detailed cost breakdown or unit pricing information would be necessary to determine the cost per unit.

What are the primary risks associated with procuring biological products like H7N9 bulk lots?

Key risks include potential manufacturing defects, contamination, efficacy issues, and supply chain disruptions. Given the nature of biological products, stringent quality control and adherence to manufacturing standards are paramount to mitigate these risks and ensure product safety and effectiveness.

How effectively does this contract contribute to national pandemic preparedness?

This contract is a direct investment in preparedness by securing bulk lots of H7N9 vaccine components. It enhances the nation's ability to respond rapidly to an H7N9 outbreak by having essential materials readily available, thereby contributing significantly to overall public health security.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 15100SOL00003

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Sanofi

Address: 1 DISCOVERY DR, SWIFTWATER, PA, 18370

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: $40,642,758

Exercised Options: $40,642,758

Current Obligation: $40,642,758

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HHSO100201600006I

IDV Type: IDC

Timeline