USAID's $264M IHS IDIQ contract awarded to Management Sciences for Health, Inc. for technical services

Contract Overview

Contract Amount: $26,437,450 ($26.4M)

Contractor: Management Sciences for Health, Inc.

Awarding Agency: Agency for International Development

Start Date: 2020-06-26

End Date: 2025-04-08

Contract Duration: 1,747 days

Daily Burn Rate: $15.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: TASK ORDER SOLICITATION-IHS IDIQ

Place of Performance

Location: MEDFORD, MIDDLESEX County, MASSACHUSETTS, 02155

State: Massachusetts Government Spending

Plain-Language Summary

Agency for International Development obligated $26.4 million to MANAGEMENT SCIENCES FOR HEALTH, INC. for work described as: TASK ORDER SOLICITATION-IHS IDIQ Key points: 1. Contract awarded through full and open competition, suggesting a competitive pricing environment. 2. The contract type is Cost Plus Fixed Fee (CPFF), which can incentivize cost control but requires robust oversight. 3. The duration of 1747 days indicates a long-term commitment to the services provided. 4. The North American Industry Classification System (NAICS) code 541990 covers 'All Other Professional, Scientific, and Technical Services,' a broad category. 5. The contract's value of $264,374,500 is substantial, requiring careful monitoring of performance and expenditures. 6. The award was a Delivery Order under an existing IDIQ, indicating a pre-established relationship and procurement vehicle.

Value Assessment

Rating: good

The contract's value of $264.3 million over approximately 4.8 years suggests a significant investment in professional services. Benchmarking this against similar large-scale technical assistance contracts managed by USAID or other development agencies would provide a clearer picture of value for money. The CPFF structure necessitates diligent oversight to ensure costs are reasonable and fixed fees align with performance expectations. Without specific performance metrics or comparable contract data, a definitive value assessment is challenging, but the competitive award process is a positive indicator.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a 'Full and Open Competition' solicitation, indicating that all responsible sources were permitted to submit a bid. The presence of 5 bidders suggests a healthy level of competition for this significant contract. A competitive process generally leads to better price discovery and potentially more innovative solutions as contractors vie for the award.

Taxpayer Impact: Taxpayers benefit from a competitive award process as it typically drives down costs and ensures the government receives the best possible value for its investment.

Public Impact

The primary beneficiaries are likely USAID's international development programs, which receive essential technical and professional services. Services delivered under this contract support a broad range of 'All Other Professional, Scientific, and Technical Services,' potentially encompassing areas like public health, economic development, or governance. The geographic impact is likely global, aligning with USAID's mission to advance American interests and provide humanitarian assistance worldwide. Workforce implications could include the employment of numerous technical experts, program managers, and support staff by the contractor and potentially through local hiring in program countries.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Cost Plus Fixed Fee (CPFF) contract type requires careful monitoring to ensure costs remain reasonable and the fixed fee is justified by performance.
The broad scope of 'All Other Professional, Scientific, and Technical Services' could lead to scope creep if not managed tightly.
Long-term contracts can sometimes face challenges in adapting to rapidly changing global needs or technological advancements.
Reliance on a single contractor for a large portion of technical services could pose a risk if performance falters.

Positive Signals

Awarded through full and open competition, indicating a robust and fair bidding process.
The contractor, Management Sciences for Health, Inc., has a history of working with USAID and in the international development sector.
The contract is an IDIQ task order, suggesting it builds upon an existing, vetted procurement vehicle.
The substantial value of the contract indicates a significant need and potential for impactful development outcomes.

Sector Analysis

This contract falls within the broad professional, scientific, and technical services sector, specifically NAICS code 541990. This sector is crucial for government operations, providing specialized expertise across various domains. The market for such services is large and competitive, with numerous firms offering a wide array of capabilities. USAID's spending in this area supports its global development mission, often involving complex, long-term projects requiring specialized knowledge and implementation support.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). While the primary awardee is likely a large business, there may be opportunities for small businesses to participate as subcontractors. The extent of small business subcontracting would depend on the contractor's strategy and the specific requirements of the task orders issued under this IDIQ. Further analysis would be needed to determine the actual impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily reside with the Agency for International Development (USAID). As a Cost Plus Fixed Fee contract, rigorous financial and performance oversight is critical to ensure funds are used effectively and objectives are met. USAID's Office of Inspector General (OIG) would likely have jurisdiction for audits and investigations, providing an additional layer of accountability. Transparency would be enhanced through regular reporting requirements stipulated in the contract.

Related Government Programs

USAID Global Health Supply Chain Program
USAID Technical Assistance Contracts
International Development Assistance
Professional and Technical Services Procurement
Cost Plus Fixed Fee Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires enhanced oversight.
Broad NAICS code may require careful task order definition.
Long contract duration necessitates adaptability and sustained performance monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $26.4 million to MANAGEMENT SCIENCES FOR HEALTH, INC.. TASK ORDER SOLICITATION-IHS IDIQ

Who is the contractor on this award?

The obligated recipient is MANAGEMENT SCIENCES FOR HEALTH, INC..

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 $26.4 million.

What is the period of performance?

Start: 2020-06-26. End: 2025-04-08.

What is the track record of Management Sciences for Health, Inc. with USAID, particularly on similar large-scale technical assistance contracts?

Management Sciences for Health, Inc. (MSH) has a long-standing history of partnering with USAID on global health and development initiatives. They have managed numerous complex projects focused on improving health systems, strengthening local capacity, and delivering essential health services in various countries. Their experience often involves technical assistance, program implementation, and capacity building. While specific details on past contract performance, including any challenges or successes, would require a deeper dive into contract databases and performance reports, MSH is generally recognized as a significant player in the international development contracting space, with substantial experience relevant to the scope of this IHS IDIQ.

How does the awarded value of $264.3 million compare to other large technical assistance IDIQs managed by USAID?

The $264.3 million ceiling for this IHS IDIQ is substantial and falls within the range of large-scale, long-term technical assistance contracts managed by USAID. USAID frequently awards IDIQs with ceilings in the hundreds of millions of dollars to address complex development challenges across various sectors like health, economic growth, and democracy and governance. Comparing this specific IDIQ's value requires looking at the total ceiling amounts and durations of similar contracts awarded within the same timeframe and for comparable service categories. Generally, such large awards reflect significant programmatic needs and the agency's reliance on external expertise for implementation.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this magnitude?

The primary risks associated with a CPFF contract of this magnitude ($264.3 million) revolve around cost control and performance oversight. While the fixed fee provides the contractor with an incentive to manage costs efficiently to maximize profit, the 'cost plus' component means the government bears the risk of actual costs incurred. Key risks include potential for cost overruns if initial estimates are inaccurate or unforeseen challenges arise, and the possibility of the contractor focusing on maximizing allowable costs rather than achieving the most efficient outcomes. Robust oversight by USAID is crucial to scrutinize allowable costs, ensure adherence to the contract scope, and verify that the fixed fee is commensurate with the effort and performance delivered. Inadequate oversight can lead to inefficiencies and reduced value for taxpayer money.

What are the potential implications of the broad NAICS code (541990) for contract performance and oversight?

The broad NAICS code 541990, 'All Other Professional, Scientific, and Technical Services,' presents both opportunities and challenges. It allows for flexibility in addressing a wide range of technical needs that may not fit into more specific categories, which can be advantageous for a dynamic agency like USAID. However, this breadth also necessitates meticulous contract management and clear definition of tasks within individual task orders. Oversight bodies must ensure that the services procured align with the intended development objectives and that the contractor possesses the requisite expertise for each specific task. Without well-defined statements of work and diligent monitoring, there's a risk of scope creep or performance issues if the contractor's capabilities are stretched too thin across diverse service areas.

How does the contract's duration (1747 days) influence its strategic importance and risk profile?

A contract duration of 1747 days (approximately 4.8 years) signifies a long-term strategic commitment by USAID to the services provided under this IDIQ. This extended timeframe allows for the planning and execution of complex, multi-year development programs, fostering stability for both the agency and the contractor. Strategically, it enables the development of deeper partnerships and sustained impact in program areas. However, a longer duration also increases the risk profile. It heightens the potential for the contract's objectives to become misaligned with evolving global needs or policy shifts. Furthermore, it necessitates ongoing vigilance in performance monitoring and contract administration to ensure continued relevance and effectiveness over the entire period.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 5

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 4201 WILSON BLVD STE 500, ARLINGTON, VA, 22203

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: $70,006,560

Exercised Options: $70,006,560

Current Obligation: $26,437,450

Actual Outlays: $22,599,929

Subaward Activity

Number of Subawards: 16

Total Subaward Amount: $3,778,222

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 7200AA18D00025

IDV Type: IDC

Timeline