DoD awards $210M for 100,000 doses of Combination Monoclonal Antibody from Eli Lilly
Contract Overview
Contract Amount: $210,000,000 ($210.0M)
Contractor: ELI Lilly and Company
Awarding Agency: Department of Defense
Start Date: 2021-02-25
End Date: 2021-11-24
Contract Duration: 272 days
Daily Burn Rate: $772.1K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: COMBINATION MONOCLONAL ANTIBODY - DELIVERY ORDER FOR 100,000 DOSES.
Place of Performance
Location: INDIANAPOLIS, MARION County, INDIANA, 46285
State: Indiana Government Spending
Plain-Language Summary
Department of Defense obligated $210.0 million to ELI LILLY AND COMPANY for work described as: COMBINATION MONOCLONAL ANTIBODY - DELIVERY ORDER FOR 100,000 DOSES. Key points: 1. Significant investment in a critical pharmaceutical product. 2. Eli Lilly and Company is a major player in the pharmaceutical sector. 3. Potential for future demand and follow-on orders. 4. Focus on a specific therapeutic area with high public health relevance.
Value Assessment
Rating: good
The contract value of $210 million for 100,000 doses suggests a per-unit cost of $2,100. This pricing needs to be benchmarked against similar monoclonal antibody treatments and production costs to assess value.
Cost Per Unit: $2,100
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a competitive bidding process. This method is expected to drive price discovery and ensure a fair market price for the government.
Taxpayer Impact: The government secured a competitive price for a vital medical supply, potentially saving taxpayer money compared to a non-competitive award.
Public Impact
Ensures availability of a critical medical treatment for national needs. Supports the pharmaceutical industry and related supply chains. Contributes to public health preparedness and response capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Warning Flags
- Potential for price fluctuations in future orders.
- Dependence on a single supplier for this specific product.
Positive Signals
- Awarded through full and open competition.
- Secures a large quantity of a critical medical supply.
- Firm fixed price contract provides cost certainty.
Sector Analysis
The pharmaceutical sector is characterized by high R&D costs, complex manufacturing, and significant regulatory oversight. Spending in this area is often driven by public health needs and defense readiness.
Small Business Impact
This contract was awarded to a large corporation, Eli Lilly and Company. There is no indication of specific subcontracting opportunities for small businesses within this data.
Oversight & Accountability
The Department of the Army awarded this delivery order under a larger contract, suggesting existing oversight mechanisms. Further review of the parent contract and delivery order details would be needed for a comprehensive oversight assessment.
Related Government Programs
- Pharmaceutical Preparation Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for price escalation in future orders.
- Sole-source dependency for this specific product.
- Vulnerability to manufacturing or supply chain disruptions.
- Need for ongoing efficacy and safety monitoring.
Tags
pharmaceutical-preparation-manufacturing, department-of-defense, in, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $210.0 million to ELI LILLY AND COMPANY. COMBINATION MONOCLONAL ANTIBODY - DELIVERY ORDER FOR 100,000 DOSES.
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 $210.0 million.
What is the period of performance?
Start: 2021-02-25. End: 2021-11-24.
What is the specific medical indication for this combination monoclonal antibody, and how does its efficacy compare to alternative treatments?
The specific medical indication for this combination monoclonal antibody is not detailed in the provided data. However, monoclonal antibodies are typically used to target specific diseases or pathogens. Its efficacy would need to be compared against other available treatments through clinical trial data and post-market surveillance to ensure it represents the best available option for patients and the government.
What are the long-term supply chain risks associated with relying on a single manufacturer for this critical pharmaceutical product?
Long-term supply chain risks include potential disruptions due to manufacturing issues, raw material shortages, geopolitical events, or the manufacturer prioritizing other markets. Dependence on a single source can lead to price increases or supply interruptions if the manufacturer faces unforeseen challenges, impacting national health security and preparedness.
How does the per-unit cost of $2,100 compare to the government's negotiated prices for similar monoclonal antibody treatments?
The per-unit cost of $2,100 needs to be benchmarked against government contracts for comparable monoclonal antibody treatments. Factors such as the specific therapeutic target, complexity of manufacturing, and the scale of the order influence pricing. A detailed comparison with historical data and other agency procurements is necessary to determine if this represents a fair and reasonable price.
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: $210,000,000
Exercised Options: $210,000,000
Current Obligation: $210,000,000
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W911QY21D0012
IDV Type: IDC
Timeline
Start Date: 2021-02-25
Current End Date: 2021-11-24
Potential End Date: 2021-11-24 00:00:00
Last Modified: 2021-05-27
More Contracts from ELI Lilly and Company
- Lycov1404 Bebtelovimab — $1.5B (Department of Defense)
- Monoclonal Antibody Ly-Cov555 — $1.4B (Department of Defense)
- Purchase of a Total of 614,000 Doses of Combination Monoclonal Antibody — $1.3B (Department of Defense)
- Purchase of 388,000 Doses of Monoclonal Antibody Ly-Cov016 — $329.8M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)