HHS awarded $17.7M for H5N1 vaccine storage, covering 38.5M doses over 17 months

Contract Overview

Contract Amount: $17,710,000 ($17.7M)

Contractor: Sanofi Vaccines US Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2010-09-14

End Date: 2011-03-31

Contract Duration: 198 days

Daily Burn Rate: $89.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: TAS::75 0140::TAS SP - STORAGE OF H5N1 BULK VACCINE (38 5M DOSES FOR 17 MONTHS) UNDER CONTRACT HHSO100200700026I (CAN 1994010)

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 $17.7 million to SANOFI VACCINES US INC. for work described as: TAS::75 0140::TAS SP - STORAGE OF H5N1 BULK VACCINE (38 5M DOSES FOR 17 MONTHS) UNDER CONTRACT HHSO100200700026I (CAN 1994010) Key points: 1. The contract's value appears reasonable given the specialized storage requirements for biological products. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The fixed-price contract structure shifts risk to the contractor. 4. Performance duration of 198 days is relatively short for a vaccine storage contract. 5. This contract falls within the broader category of public health preparedness and biodefense. 6. The contractor, Sanofi Vaccines US Inc., is a known entity in the vaccine market.

Value Assessment

Rating: good

The contract value of $17.7 million for storing 38.5 million doses of H5N1 vaccine over approximately 17 months suggests a cost of roughly $0.46 per dose. This is a specialized service requiring specific temperature and security controls. Benchmarking against similar vaccine storage contracts is difficult without more specific data on storage conditions and duration, but the price appears within a plausible range for such a critical public health asset.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The number of bidders is not specified, but this procurement method generally fosters price discovery and allows the government to select the most advantageous offer based on price and technical factors. The use of full and open competition is the preferred method for maximizing value.

Taxpayer Impact: Taxpayers benefit from the competitive process, which is expected to drive down costs and ensure the government receives the best possible value for the storage of essential vaccines.

Public Impact

The primary beneficiaries are the American public, who gain access to a stored supply of H5N1 vaccine in case of an outbreak. The service delivered is the secure and temperature-controlled storage of a critical biological product. The geographic impact is national, ensuring vaccine availability across the United States. Workforce implications are likely minimal, primarily involving specialized logistics and security personnel at the storage facility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for spoilage or degradation of vaccine if storage conditions are not meticulously maintained.
Risk of supply chain disruption impacting timely access to the vaccine.
Contractor's financial stability and operational capacity to handle large volumes of sensitive material.

Positive Signals

Contract awarded under full and open competition, suggesting a robust selection process.
Firm fixed-price contract shifts cost overrun risk to the contractor.
Sanofi is an established vaccine manufacturer with relevant expertise.

Sector Analysis

This contract falls within the broader biopharmaceutical and life sciences sector, specifically focusing on vaccine manufacturing support and logistics. The market for specialized biological product storage is niche, driven by government preparedness initiatives and pharmaceutical company needs. Comparable spending benchmarks would typically involve contracts for cold chain logistics, specialized warehousing, and inventory management for high-value, temperature-sensitive goods.

Small Business Impact

The contract does not indicate any small business set-aside provisions, nor is there information suggesting significant subcontracting opportunities for small businesses. Given the specialized nature of vaccine storage and the prime contractor's likely scale, the direct impact on the small business ecosystem may be limited unless specific subcontracting plans were mandated and fulfilled.

Oversight & Accountability

Oversight would typically be managed by the Office of Assistant Secretary for Preparedness and Response (ASPR) within HHS. Accountability measures are embedded in the firm fixed-price contract terms, requiring the contractor to meet specific storage and handling requirements. Transparency is generally maintained through contract databases, though specific operational details of the storage facility are likely proprietary.

Related Government Programs

Strategic National Stockpile (SNS)
Pandemic Preparedness Initiatives
Biodefense Contracts
Vaccine Cold Chain Logistics

Risk Flags

Potential for temperature excursions impacting vaccine efficacy.
Risk of supply chain disruption during retrieval or transport.
Contractor's ability to maintain stringent security protocols.
Ensuring timely access to vaccine in a public health emergency.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $17.7 million to SANOFI VACCINES US INC.. TAS::75 0140::TAS SP - STORAGE OF H5N1 BULK VACCINE (38 5M DOSES FOR 17 MONTHS) UNDER CONTRACT HHSO100200700026I (CAN 1994010)

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 $17.7 million.

What is the period of performance?

Start: 2010-09-14. End: 2011-03-31.

What is the historical spending pattern for H5N1 vaccine storage by HHS?

Historical spending data for H5N1 vaccine storage by HHS is not readily available in a consolidated format. This specific contract, valued at $17.7 million for 198 days of storage for 38.5 million doses, represents a significant but potentially episodic investment tied to specific preparedness goals. Broader spending on vaccine stockpiling and maintenance by agencies like ASPR can fluctuate based on perceived threats and funding appropriations. Analyzing trends would require examining multiple contracts over time, considering factors like vaccine type, quantity, storage duration, and prevailing market rates for specialized cold chain logistics.

How does the per-dose storage cost compare to industry benchmarks?

The per-dose storage cost for this contract is approximately $0.46 ($17.7M / 38.5M doses). Benchmarking this against industry standards for specialized vaccine cold chain storage is challenging due to the variability in requirements (temperature, security, duration, volume). However, typical costs for pharmaceutical cold chain logistics can range from $0.10 to over $1.00 per dose, depending heavily on the specific product's needs and the service provider's capabilities. Given the scale and the specialized nature of storing a pandemic-potential vaccine, this cost appears to be within a reasonable, albeit potentially high-end, range for ensuring critical supply chain integrity.

What are the key performance indicators (KPIs) for this vaccine storage contract?

Key performance indicators (KPIs) for a vaccine storage contract of this nature would typically focus on maintaining the integrity and availability of the stored product. These would likely include: 1) Temperature Compliance: Ensuring the vaccine is consistently stored within the specified temperature range (e.g., 2-8°C or frozen, depending on the vaccine). Deviations would trigger alerts and potential corrective actions. 2) Inventory Accuracy: Maintaining precise records of vaccine quantities, lot numbers, and expiration dates. 3) Security: Adherence to strict security protocols to prevent theft, tampering, or unauthorized access. 4) Timeliness of Response: Ability to retrieve and prepare vaccines for distribution within a specified timeframe upon government request. 5) Reporting: Regular and accurate reporting on inventory levels, storage conditions, and any incidents.

What is Sanofi Vaccines US Inc.'s track record with government vaccine contracts?

Sanofi Vaccines US Inc. has a significant track record of supplying vaccines to government entities, including the U.S. Department of Health and Human Services (HHS) and the Centers for Disease Control and Prevention (CDC). They are a major global vaccine manufacturer involved in producing seasonal influenza vaccines, as well as vaccines for other diseases. Their involvement in pandemic preparedness, including contracts for potential pandemic influenza vaccines (like H5N1), is well-documented. Past performance data, available through federal procurement databases, would provide more granular detail on their on-time delivery, quality adherence, and overall performance across various contracts.

What are the risks associated with long-term storage of biological products like vaccines?

Long-term storage of biological products like vaccines carries inherent risks primarily related to maintaining product efficacy and integrity. Key risks include: 1) Temperature Excursions: Failure to maintain the required cold chain (refrigerated or frozen) can lead to degradation or inactivation of the vaccine, rendering it ineffective. This requires robust monitoring systems and backup power. 2) Product Degradation: Over time, even under optimal conditions, biological molecules can degrade. Shelf-life limitations must be carefully managed. 3) Contamination: Risk of microbial or particulate contamination during handling or storage. 4) Security Breaches: Vaccines are high-value assets, making them targets for theft or tampering. 5) Logistics Failures: Disruptions in transportation or handling during retrieval can compromise the product. 6) Expiration Management: Ensuring that vaccines are used before their expiration dates.

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: DHHSORDCVB0608

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Sanofi Pasteur Vaxdesign Corp (UEI: 739980787)

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: $17,710,000

Exercised Options: $17,710,000

Current Obligation: $17,710,000

Parent Contract

Parent Award PIID: HHSO100200700026I

IDV Type: IDC

Timeline