Morrison government injects $1.2m into consultant coffers to provide COVID-19 vaccine rollout advice

The Department of Health has spent $1.2m on advice from consultants to ensure a swift delivery of a COVID-19 vaccine.

Pfizer’s vaccine needs to be transported at temperatures as low as -70°. Picture: AFP

The federal Department of Health spent more than $1.2m on consultants advising on the rollout of COVID-19 vaccines, with one contract equating to about $26,000 a day.

As the Morrison government sets a date for when the first Australians will be inoculated against the virus, The Australian can reveal the Department of Health has recruited external advice regarding the delivery of a coronavirus vaccine.

The advice was sought despite the Therapeutic Goods Administration having yet to approve the four types of vaccines the government secured in a $1.7bn deal.

McKinsey and Company has been the biggest beneficiary, with the Department of Health paying the firm $660,000, or $26,000 a day, for one month’s work, according to government tender documents.

McKinsey Pacific Rim won the contract to provide vaccine and treatment strategy advice, with the contract completed between August 17 and September 17.

Big four consultancy firm Ernst & Young received $550,000 of taxpayers’ cash to complete a 2020 Influenza Evaluation and Covid Vaccine System Readiness Review. Work began on November 3 and is set to be completed by the end of the financial year, according to tender documents.

The cheapest tender, at $31,000, was awarded by the Department of Foreign Affairs and Trade’s Aid Program to ABT Associates to provide advice on “COVID-19 vaccine delivery capability and gaps in Pacific Island countries and Southeast Asia”.

ABT Associates, which has a global staff of more than 3000, was given six weeks to November 30 to complete the contract.

Despite spending $1.2m on advice from consultants, the government is yet to formally engage pharmaceutical wholesalers, including ASX-listed companies Sigma and Australian Pharmaceutical Industries, about using their logistics networks to deliver the vaccine across the country.

“National Pharmaceutical Services Association member companies are health logistics experts with an established and highly efficient national distribution network,” an NPSA spokeswoman said.

“While we have had some discussions with government on the COVID-19 vaccine rollout, we have not at this stage been engaged. NPSA understands the government is still working through the process for this significant logistical challenge and we will provide any assistance needed given our extensive experience in delivering medicines to Australians through community pharmacies and hospitals.” The distribution of a COVID-19 vaccine is complex, particularly for Pfizer’s vaccine, which needs to be transported at temperatures as low as -70°.

Other vaccines such as those from AstraZeneca and from CSL and the University of Queensland can be transported at 2° to 8°, the temperature of a household fridge and the same range needed for seasonal influenza vaccines.

Pfizer’s vaccine will be the first available to Australians, from March next year. Health Minister Greg Hunt said he had spoken to Pfizer Australia chief executive Anne Harris, who confirmed delivery remained on schedule.

“Our advice remains that the timeline for a decision on approval is expected by the end of January 2021,” Mr Hunt said.

The British government gave emergency-use authorisation to Pfizer’s vaccine on Wednesday “in response to the increased spread of COVID-19 and loss of life”.

But the Therapeutic Goods Administration said in a statement it was yet to approve the Pfizer vaccine and was still seeking data about its safety and efficacy.

“This emergency approval is not a market authorisation. Therefore, there is no general authorisation to place this vaccine on the market in the UK,” the TGA said. “The TGA continues to assess and receive ongoing vaccine efficacy and safety data from Pfizer as part of the Australian assessment process. The ability to access early data and planned collaboration with international regulators will assist the TGA to expedite the evaluation of any new vaccines without compromising on our strict requirements for safety, quality and effectiveness.”