DoD awards $4.4M for Japanese Encephalitis vaccine, highlighting critical medical supply chain needs

Contract Overview

Contract Amount: $4,412,621 ($4.4M)

Contractor: Valneva USA, Inc.

Awarding Agency: Department of Defense

Start Date: 2026-01-07

End Date: 2026-02-26

Contract Duration: 50 days

Daily Burn Rate: $88.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: 8511845813!JAPANESE ENCEPHALIT

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20814

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $4.4 million to VALNEVA USA, INC. for work described as: 8511845813!JAPANESE ENCEPHALIT Key points: 1. Contract value represents a significant investment in a specialized vaccine, suggesting a critical public health requirement. 2. The fixed-price nature of the contract provides cost certainty for the government. 3. A single delivery order under a larger contract indicates a focused procurement action. 4. The short performance period suggests an immediate need for the vaccine. 5. The award to a single vendor warrants scrutiny regarding market availability and potential alternatives. 6. This procurement supports the health readiness of military personnel stationed in or deploying to endemic regions.

Value Assessment

Rating: good

The contract value of $4.4 million for Japanese Encephalitis vaccine appears reasonable given the specialized nature of the product and its critical application for military health. Benchmarking against similar procurements for vaccines of this type would provide further context, but the fixed-price structure suggests a negotiated value. The absence of extensive contract modifications or overruns, as indicated by the data, points to effective initial pricing and management.

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. The data does not specify the number of bids received, but the competitive process is a positive sign for price discovery and ensuring the government receives fair market value. This approach typically leads to more competitive pricing compared to sole-source or limited competition awards.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it encourages a wider range of suppliers to offer their best pricing, potentially leading to cost savings and ensuring the government is not overpaying for essential medical supplies.

Public Impact

Military personnel stationed in or deploying to areas where Japanese Encephalitis is endemic will benefit from access to this vaccine, enhancing their health protection. The Department of Defense, specifically the Defense Logistics Agency, is the primary recipient of the services/goods, ensuring readiness. The geographic impact is primarily related to military installations and operational areas where the threat of Japanese Encephalitis exists. This contract supports the pharmaceutical and biotechnology sector by providing a market for specialized vaccines.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited information on the number of bidders in the full and open competition makes it difficult to fully assess the competitive landscape.
The short duration of the delivery order could indicate a time-sensitive need, potentially limiting future strategic sourcing opportunities.
Reliance on a single vendor for this specific vaccine delivery could pose a risk if supply chain disruptions occur.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
The firm fixed-price contract provides cost predictability for the government.
The contract is for a critical medical countermeasure, addressing a specific health threat.
The Defense Logistics Agency's involvement indicates established procurement channels for medical supplies.

Sector Analysis

The procurement of vaccines falls within the broader healthcare and pharmaceutical sector, a critical area for both public health and national security. The market for specialized vaccines, particularly those addressing infectious diseases prevalent in specific geographic regions, is often characterized by a limited number of manufacturers. This contract represents a targeted investment by the Department of Defense to secure a vital medical countermeasure, aligning with broader government efforts to maintain force health protection and respond to global health threats. Comparable spending benchmarks would likely be found in other DoD or HHS procurements for vaccines against similar vector-borne diseases.

Small Business Impact

The provided data indicates that small business participation (sb: false) and small business set-asides (ss: false) were not applicable to this specific contract award. Therefore, this procurement does not appear to have directly benefited small businesses through set-aside provisions. There is no information available regarding subcontracting plans for small businesses related to this delivery order. The focus of this contract is on a specialized medical product likely manufactured by larger pharmaceutical firms.

Oversight & Accountability

Oversight for this contract is managed by the Department of Defense, likely through the Defense Contract Management Agency (DCMA) and the Defense Contract Audit Agency (DCAA) for financial and performance oversight. The Defense Logistics Agency (DLA) is responsible for the procurement and distribution. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Department of Defense Medical Materiel
Vaccine Procurement Programs
Japanese Encephalitis Prevention Initiatives
Defense Health Agency Readiness Programs
Medical Countermeasure Stockpiling

Risk Flags

Single Vendor Reliance
Supply Chain Vulnerability
Limited Competition Visibility

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $4.4 million to VALNEVA USA, INC.. 8511845813!JAPANESE ENCEPHALIT

Who is the contractor on this award?

The obligated recipient is VALNEVA USA, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Logistics Agency).

What is the total obligated amount?

The obligated amount is $4.4 million.

What is the period of performance?

Start: 2026-01-07. End: 2026-02-26.

What is the historical spending pattern for Japanese Encephalitis vaccines by the Department of Defense?

Analyzing historical spending on Japanese Encephalitis (JE) vaccines by the Department of Defense (DoD) requires accessing and aggregating data from contract databases over several fiscal years. While this specific award is for $4.4 million, understanding the broader trend involves looking at previous awards for JE vaccines, including quantities, prices, and contract types. Factors influencing historical spending include changes in troop deployment locations, updated threat assessments for JE in operational theaters, and the availability of different vaccine formulations. A consistent or increasing spending trend might indicate a persistent or growing requirement, while fluctuating spending could suggest variable needs or the impact of alternative prevention strategies. Without access to a comprehensive historical database for this specific vaccine, it's challenging to provide precise figures, but the current award suggests a continued need for this critical medical countermeasure.

How does the unit price of this vaccine compare to commercially available Japanese Encephalitis vaccines?

Determining the precise unit price for this contract is difficult without knowing the exact quantity of vaccine doses procured under the $4.4 million award. However, government contracts, especially those awarded through full and open competition, often achieve competitive pricing. To compare, one would need to identify the specific vaccine product (e.g., Ixiaro) and its typical commercial price per dose from pharmaceutical distributors or public health program data. Government entities can sometimes negotiate lower prices due to bulk purchasing power or specific contract terms. If the government's unit price is significantly lower than commercial rates, it indicates effective negotiation and competition. Conversely, a higher unit price might warrant further investigation into the specific requirements, packaging, or delivery logistics that could justify the difference.

What are the potential risks associated with relying on a single vendor for this vaccine delivery order?

Relying on a single vendor for this specific vaccine delivery order, even if awarded through full and open competition initially, presents several potential risks. Firstly, there's a supply chain risk: if the vendor experiences manufacturing issues, raw material shortages, or logistical disruptions, the delivery of the vaccine could be delayed, impacting military readiness. Secondly, a lack of ongoing competition for subsequent orders or related needs could lead to price increases over time, as the government may have fewer alternatives. Thirdly, if this vendor is the sole or primary manufacturer of this specific vaccine, any unforeseen issues with their production capacity or business viability could create a critical shortage. Mitigating these risks often involves maintaining strategic stockpiles, closely monitoring vendor performance, and exploring opportunities for second-sourcing or alternative products where feasible.

What is the track record of VALNEVA USA, INC. in supplying vaccines to the U.S. government?

VALNEVA USA, INC. has a track record of supplying vaccines to the U.S. government, particularly in the area of infectious disease countermeasures. Their involvement in providing vaccines like the Japanese Encephalitis vaccine demonstrates their capability to meet stringent government requirements. Examining their contract history would reveal the types of vaccines supplied, the value of those contracts, and their performance metrics. Positive performance indicators would include timely deliveries, adherence to quality standards, and successful contract completions. Conversely, any history of contract disputes, delivery failures, or quality issues would be a concern. For this specific contract, the award itself suggests they met the government's criteria at the time of selection, but a deeper dive into their broader performance history provides a more comprehensive risk assessment.

How does this contract contribute to the overall readiness and health protection of U.S. military personnel?

This contract directly contributes to the overall readiness and health protection of U.S. military personnel by ensuring access to a critical vaccine against Japanese Encephalitis (JE). JE is a serious mosquito-borne viral disease that can cause severe neurological illness and death, posing a significant risk to individuals living in or traveling to endemic regions, which include parts of Asia and the Western Pacific. Military personnel deployed to or stationed in these areas are at risk of contracting the disease. By procuring and distributing the JE vaccine, the Department of Defense proactively mitigates this health threat, preventing illness, reducing medical evacuation needs, and maintaining the deployability and operational effectiveness of service members. This is a key component of force health protection strategies.

Industry Classification

NAICS: Wholesale Trade › Professional and Commercial Equipment and Supplies Merchant Wholesalers › Medical, Dental, and Hospital Equipment and Supplies Merchant Wholesalers

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Valneva

Address: 4550 MONTGOMERY AVE STE 460, BETHESDA, MD, 20814

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $4,412,621

Exercised Options: $4,412,621

Current Obligation: $4,412,621

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPE2DP25D0002

IDV Type: IDC

Timeline