USAID's $202M malaria service delivery contract awarded to Population Services International shows strong competition

Contract Overview

Contract Amount: $202,244,246 ($202.2M)

Contractor: Population Services International

Awarding Agency: Agency for International Development

Start Date: 2018-02-13

End Date: 2024-05-31

Contract Duration: 2,299 days

Daily Burn Rate: $88.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::CT::IGF - ADVANCING PROGRESS IN MALARIA SERVICE DELIVERY

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20036

State: District of Columbia Government Spending

Plain-Language Summary

Agency for International Development obligated $202.2 million to POPULATION SERVICES INTERNATIONAL for work described as: IGF::CT::IGF - ADVANCING PROGRESS IN MALARIA SERVICE DELIVERY Key points: 1. Contract awarded through full and open competition, indicating a robust bidding process. 2. The contract duration of 2299 days suggests a long-term commitment to malaria service delivery. 3. The definitive contract type implies a clear scope of work and established terms. 4. Awarded to a single contractor, Population Services International, for specialized services. 5. The contract's value of over $200 million signifies a significant investment in global health. 6. The North American Industry Classification System (NAICS) code 541990 points to a broad range of professional, scientific, and technical services.

Value Assessment

Rating: good

Benchmarking the value of this contract requires detailed cost breakdowns and comparisons to similar global health initiatives. However, the significant investment suggests a perceived value in addressing malaria. The cost-plus-fixed-fee structure allows for flexibility while maintaining cost control through a fixed fee component. Further analysis would involve comparing the per-unit cost of services delivered against established benchmarks for malaria prevention and treatment programs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified bidders were likely considered. This competitive process is expected to drive better pricing and service quality. The presence of 5 bids suggests a healthy level of interest and competition for this significant global health contract.

Taxpayer Impact: Full and open competition generally benefits taxpayers by ensuring that the government receives the best possible value through competitive pricing and innovation from multiple vendors.

Public Impact

Beneficiaries include populations in malaria-endemic regions receiving essential health services. Services delivered likely encompass malaria prevention, diagnosis, treatment, and community outreach. Geographic impact is global, focusing on areas with high malaria prevalence. Workforce implications include the potential for employment of local health workers and support staff in recipient countries.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns in cost-plus contracts if not managed rigorously.
Dependence on a single contractor for critical health services could pose a risk if performance falters.

Positive Signals

Awarded through full and open competition, suggesting a competitive and potentially cost-effective process.
Long contract duration indicates a stable and committed approach to addressing malaria.
The contractor, Population Services International, likely has a strong track record in global health delivery.

Sector Analysis

This contract falls within the broader professional, scientific, and technical services sector, specifically addressing global health challenges. The market for such services is substantial, driven by government and non-governmental organizations focused on international development and disease control. Comparable spending benchmarks would involve analyzing other large-scale global health initiatives funded by USAID and other international donors.

Small Business Impact

Information regarding small business set-asides or subcontracting plans was not explicitly provided in the data. However, for a contract of this magnitude and specialized nature, the primary awardee is typically a large organization. Further investigation would be needed to determine if any subcontracting opportunities exist for small businesses within the scope of this malaria service delivery program.

Oversight & Accountability

Oversight mechanisms for this contract would likely involve regular performance reviews by USAID, financial audits, and potentially site visits to ensure compliance with contract terms and effective service delivery. Accountability measures are inherent in the cost-plus-fixed-fee structure, requiring justification of costs and adherence to the fixed fee. Transparency would be facilitated through reporting requirements mandated by the contract.

Related Government Programs

Global Health Security Agenda
President's Malaria Initiative
USAID Global Health Programs
International Health Regulations

Risk Flags

Cost-plus contract type requires diligent oversight to manage costs.
Long contract duration necessitates sustained performance monitoring.
Dependence on a single awardee for critical services.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $202.2 million to POPULATION SERVICES INTERNATIONAL. IGF::CT::IGF - ADVANCING PROGRESS IN MALARIA SERVICE DELIVERY

Who is the contractor on this award?

The obligated recipient is POPULATION SERVICES INTERNATIONAL.

Which agency awarded this contract?

Awarding agency: Agency for International Development (Agency for International Development).

What is the total obligated amount?

The obligated amount is $202.2 million.

What is the period of performance?

Start: 2018-02-13. End: 2024-05-31.

What is the track record of Population Services International in delivering malaria-related services?

Population Services International (PSI) is a well-established global health organization with a long history of implementing health programs in developing countries. They have extensive experience in malaria control, including the distribution of insecticide-treated nets (ITNs), diagnostics, and treatment. PSI often works through social marketing and behavior change communication strategies to reach vulnerable populations. Their track record generally indicates a capacity to manage large-scale, complex health projects and achieve measurable health outcomes. Specific details on their performance metrics for malaria programs would be available in their annual reports and evaluations conducted by funders like USAID.

How does the value of this contract compare to other major malaria initiatives?

A contract value of $202 million for malaria service delivery is substantial and indicative of a significant, multi-year commitment. To benchmark this value, one would compare it to other large-scale malaria programs funded by entities such as the Global Fund to Fight AIDS, Tuberculosis and Malaria, or the President's Malaria Initiative (PMI). For instance, PMI alone has a budget in the hundreds of millions of dollars annually. The specific value of this contract should be assessed relative to the geographic scope, duration, and the specific interventions it aims to support. A direct comparison would require identifying contracts with similar objectives and operational scales.

What are the primary risks associated with a cost-plus-fixed-fee contract for global health services?

Cost-plus-fixed-fee (CPFF) contracts, while offering flexibility, carry inherent risks. For the government, the primary risk is that the contractor may not have sufficient incentives to control costs, as costs are reimbursed. While the fixed fee provides some incentive for efficiency, there's a risk of scope creep or unforeseen cost increases that could exceed initial estimates, although the total contract value is capped. For the contractor, the risk lies in accurately estimating costs to ensure the fixed fee is sufficient to cover their efforts and generate a reasonable profit. Effective oversight, detailed cost reporting, and robust performance monitoring by the agency are crucial to mitigate these risks.

What is the expected impact of this contract on malaria prevalence in the targeted regions?

The expected impact of this contract on malaria prevalence is significant, assuming effective implementation. By funding comprehensive service delivery, the contract aims to increase access to and utilization of malaria prevention methods (like bed nets), prompt diagnosis, and effective treatment. This, in turn, should lead to a reduction in malaria transmission, a decrease in morbidity and mortality, and improved overall health outcomes for affected populations. The specific impact will depend on factors such as the intensity of interventions, community engagement, the specific malaria burden in the target areas, and the contractor's ability to adapt to local contexts and challenges.

How has USAID's spending on malaria control evolved over the past decade?

USAID's spending on malaria control has been substantial and has evolved significantly over the past decade, largely driven by initiatives like the President's Malaria Initiative (PMI). While specific figures fluctuate annually based on appropriations and program priorities, USAID has consistently been one of the largest bilateral donors for malaria control. Spending has focused on a range of interventions including vector control (ITNs, indoor residual spraying), case management (diagnosis and treatment), and malaria in pregnancy prevention. The agency has also increasingly emphasized data-driven approaches, monitoring and evaluation, and adapting strategies to combat insecticide and drug resistance.

What are the implications of awarding a definitive contract versus other contract types for this service?

Awarding a definitive contract, especially when paired with a cost-plus-fixed-fee structure, suggests that the scope of work for malaria service delivery was sufficiently defined at the time of award, but that precise costs might be variable or difficult to estimate upfront. Definitive contracts provide a clear, long-term commitment. For services like global health delivery, where operational needs can evolve and require flexibility, a CPFF definitive contract allows the implementing partner to adapt while maintaining a defined relationship and oversight framework. This contrasts with fixed-price contracts, which might be less suitable for complex, long-term service delivery in dynamic environments.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: SOL-OAA-17-000043

Offers Received: 5

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1120 19TH ST NW STE 600, WASHINGTON, DC, 20036

Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $203,393,540

Exercised Options: $203,393,540

Current Obligation: $202,244,246

Actual Outlays: $190,080,434

Subaward Activity

Number of Subawards: 338

Total Subaward Amount: $83,551,732

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline