DoD Awards $330M for 388K Monoclonal Antibody Doses to Eli Lilly

Contract Overview

Contract Amount: $329,800,000 ($329.8M)

Contractor: ELI Lilly and Company

Awarding Agency: Department of Defense

Start Date: 2021-09-14

End Date: 2021-11-05

Contract Duration: 52 days

Daily Burn Rate: $6.3M/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: PURCHASE OF 388,000 DOSES OF MONOCLONAL ANTIBODY LY-COV016.

Place of Performance

Location: INDIANAPOLIS, MARION County, INDIANA, 46285

State: Indiana Government Spending

Plain-Language Summary

Department of Defense obligated $329.8 million to ELI LILLY AND COMPANY for work described as: PURCHASE OF 388,000 DOSES OF MONOCLONAL ANTIBODY LY-COV016. Key points: 1. Significant investment in critical pharmaceutical supplies. 2. Eli Lilly is a major player in the pharmaceutical sector. 3. Potential for supply chain disruptions or efficacy concerns. 4. Spending aligns with healthcare and defense sector needs.

Value Assessment

Rating: good

The price per dose is approximately $85. This appears competitive given the specialized nature of monoclonal antibodies and the scale of the purchase, though direct public benchmarks are scarce.

Cost Per Unit: $85

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally promotes price discovery and potentially better value for the government.

Taxpayer Impact: Taxpayer funds are being used for a critical health supply, with competition aiming to ensure reasonable pricing.

Public Impact

Ensures availability of a specific medical treatment for potential use. Supports the pharmaceutical industry and its manufacturing capabilities. Contributes to national health security and preparedness.

Waste & Efficiency Indicators

Waste Risk Score: 75 / 10

Positive Signals

Critical medical supply acquisition
Full and open competition utilized
Major pharmaceutical manufacturer awarded contract

Sector Analysis

This purchase falls within the pharmaceutical manufacturing sector, which is a subset of the broader healthcare industry. Spending benchmarks for specific monoclonal antibodies are highly variable based on therapeutic area and development costs.

Small Business Impact

The contract was awarded to Eli Lilly and Company, a large pharmaceutical corporation. There is no indication that small businesses were directly involved in this specific award, though they may be suppliers further down the chain.

Oversight & Accountability

The Department of the Army, under the Department of Defense, managed this award. Standard procurement oversight processes would apply, focusing on contract compliance and delivery.

Related Government Programs

Pharmaceutical Preparation Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Potential for obsolescence due to evolving medical treatments.
Storage and handling costs may be significant.
Uncertainty regarding actual utilization rate.
Dependence on a single manufacturer for this specific product.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $329.8 million to ELI LILLY AND COMPANY. PURCHASE OF 388,000 DOSES OF MONOCLONAL ANTIBODY LY-COV016.

Who is the contractor on this award?

The obligated recipient is ELI LILLY AND COMPANY.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $329.8 million.

What is the period of performance?

Start: 2021-09-14. End: 2021-11-05.

What is the specific medical indication for LY-COV016 and its expected utilization rate?

LY-COV016 is a monoclonal antibody treatment. Its specific indication and expected utilization rate are crucial for assessing the true value and necessity of this large purchase. Without this context, it's difficult to determine if the quantity procured aligns with anticipated demand or if it represents potential overstocking or a strategic reserve.

What are the shelf-life limitations and storage requirements for these antibodies?

Monoclonal antibodies can have specific storage requirements (e.g., refrigeration) and shelf-life limitations. Understanding these factors is critical for assessing the long-term value and potential waste associated with this $330 million purchase. Improper storage or expiration before use would significantly diminish the return on investment for taxpayers.

How does the efficacy of LY-COV016 compare to other available monoclonal antibodies or treatments?

The effectiveness of LY-COV016 relative to alternative treatments is a key factor in evaluating the overall value. If newer, more effective, or more cost-efficient alternatives exist or emerge, the government's investment in this specific antibody could be less optimal. Continuous monitoring of treatment advancements is necessary.

Industry Classification

NAICS: Manufacturing › Pharmaceutical and Medicine Manufacturing › Pharmaceutical Preparation Manufacturing

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

Address: 1 LILLY CORPORATE CTR, INDIANAPOLIS, IN, 46285

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: $329,800,000

Exercised Options: $329,800,000

Current Obligation: $329,800,000

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W911QY21D0012

IDV Type: IDC

Timeline