USAID's Global Health Technical Assistance contract awarded to Credence Management Solutions for $398.9M over 3 years

Contract Overview

Contract Amount: $398,914,055 ($398.9M)

Contractor: Credence Management Solutions Limited Liability Company

Awarding Agency: Agency for International Development

Start Date: 2021-09-28

End Date: 2025-02-26

Contract Duration: 1,247 days

Daily Burn Rate: $319.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: THE PURPOSE OF GHTASC IS TO PROMOTE EFFECTIVE GLOBAL HEALTH PROGRAMMING AND ADVANCE THE MISSION OF THE U.S. AGENCY FOR INTERNATIONAL DEVELOPMENT, BUREAU FOR GLOBAL HEALTH THROUGH INSTITUTIONAL SUPPORT AND WORKFORCE DEVELOPMENT SERVICES FROM JUNIOR, M

Place of Performance

Location: VIENNA, FAIRFAX County, VIRGINIA, 22182

State: Virginia Government Spending

Plain-Language Summary

Agency for International Development obligated $398.9 million to CREDENCE MANAGEMENT SOLUTIONS LIMITED LIABILITY COMPANY for work described as: THE PURPOSE OF GHTASC IS TO PROMOTE EFFECTIVE GLOBAL HEALTH PROGRAMMING AND ADVANCE THE MISSION OF THE U.S. AGENCY FOR INTERNATIONAL DEVELOPMENT, BUREAU FOR GLOBAL HEALTH THROUGH INSTITUTIONAL SUPPORT AND WORKFORCE DEVELOPMENT SERVICES FROM JUNIOR, M Key points: 1. Contract provides institutional support and workforce development for USAID's global health initiatives. 2. The contract is structured as a Cost Plus Award Fee (CPAF), allowing for performance-based incentives. 3. Competition was full and open, indicating a broad market search for qualified contractors. 4. The contract duration is substantial, suggesting a long-term need for these services. 5. The North American Industry Classification System (NAICS) code 541330 points to Engineering Services, which may encompass a wide range of technical support. 6. The contract was awarded as a Delivery Order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle or a similar framework.

Value Assessment

Rating: good

The contract's value of $398.9 million over approximately 3.5 years suggests a significant investment in global health programming. Benchmarking this against similar large-scale technical assistance contracts for international development agencies would provide a clearer picture of value for money. The Cost Plus Award Fee (CPAF) structure allows for flexibility and incentivizes performance, which can be a positive indicator if managed effectively. However, without specific performance metrics and award fee payouts, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically involves a broad solicitation to all eligible responsible sources. This suggests that multiple companies likely bid on the requirement, fostering a competitive environment. The number of bidders is not specified, but full and open competition generally leads to better price discovery and potentially more innovative solutions as contractors vie for the award.

Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and higher quality services due to the competitive pressure on bidders.

Public Impact

Beneficiaries include global populations served by USAID's health programs, receiving improved technical assistance and workforce development. Services delivered encompass institutional support and workforce development critical for effective global health programming. Geographic impact is global, supporting USAID's worldwide health initiatives. Workforce implications include the potential for employment of numerous technical experts and support staff by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Award Fee contracts if not closely monitored.
Complexity of managing global health programs requires robust oversight to ensure effectiveness.
Dependence on a single contractor for critical institutional support could pose a risk if performance falters.

Positive Signals

Full and open competition suggests a robust selection process and potential for strong performance.
Award fee structure incentivizes contractor performance and alignment with USAID's goals.
Long-term contract duration indicates a sustained commitment to global health, providing stability for program implementation.

Sector Analysis

The global health sector is a significant area of U.S. foreign assistance, with agencies like USAID playing a crucial role. This contract falls within the broader professional, scientific, and technical services market, specifically focusing on engineering and management consulting for public health initiatives. Spending in this area is driven by the U.S. government's commitment to addressing global health challenges, disease prevention, and health system strengthening in developing countries. Comparable spending benchmarks would involve analyzing other large technical assistance contracts awarded by USAID and similar development agencies.

Small Business Impact

The contract data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this specific award. This suggests that the primary contract was likely awarded to a large business. However, the contractor, Credence Management Solutions LLC, may engage small businesses as subcontractors to fulfill specific aspects of the contract, depending on the scope of work and subcontracting plans. Further analysis would be needed to determine the extent of small business subcontracting.

Oversight & Accountability

Oversight for this contract would primarily reside with the U.S. Agency for International Development (USAID), likely through a Contracting Officer's Representative (COR) and potentially an Inspector General (IG) if issues arise. The CPAF structure necessitates diligent monitoring of performance metrics and cost expenditures to ensure award fees are justified and the overall value is achieved. Transparency would be enhanced through regular reporting requirements mandated by the contract.

Related Government Programs

USAID Global Health Supply Chain Program
PEPFAR (President's Emergency Plan for AIDS Relief)
Global Fund to Fight AIDS, Tuberculosis and Malaria
Millennium Challenge Corporation

Risk Flags

Potential for scope creep in long-term service contracts.
Effectiveness of award fee structure in driving desired outcomes.
Adequacy of oversight for complex global health programs.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $398.9 million to CREDENCE MANAGEMENT SOLUTIONS LIMITED LIABILITY COMPANY. THE PURPOSE OF GHTASC IS TO PROMOTE EFFECTIVE GLOBAL HEALTH PROGRAMMING AND ADVANCE THE MISSION OF THE U.S. AGENCY FOR INTERNATIONAL DEVELOPMENT, BUREAU FOR GLOBAL HEALTH THROUGH INSTITUTIONAL SUPPORT AND WORKFORCE DEVELOPMENT SERVICES FROM JUNIOR, M

Who is the contractor on this award?

The obligated recipient is CREDENCE MANAGEMENT SOLUTIONS LIMITED LIABILITY COMPANY.

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 $398.9 million.

What is the period of performance?

Start: 2021-09-28. End: 2025-02-26.

What is the specific nature of the 'institutional support and workforce development services' provided under this contract?

The contract aims to provide comprehensive institutional support and workforce development services to the U.S. Agency for International Development (USAID), Bureau for Global Health. This likely encompasses a range of activities such as strategic planning, program management, policy development, technical expertise provision, training, capacity building for USAID staff and partner organizations, and potentially recruitment and human resource support. The goal is to enhance the effectiveness and efficiency of USAID's global health programming by ensuring they have the necessary institutional frameworks and skilled personnel to achieve their mission objectives. The specific tasks would be detailed in the Statement of Work (SOW) and subsequent task orders issued under the contract.

How does the Cost Plus Award Fee (CPAF) structure influence contractor performance and cost control for this contract?

The Cost Plus Award Fee (CPAF) structure is designed to incentivize contractor performance by allowing the contractor to earn a base fee (cost reimbursement) plus an award fee based on achieving specific performance objectives. For this USAID contract, Credence Management Solutions LLC would be reimbursed for allowable costs incurred. Additionally, they have the potential to earn an award fee, determined by USAID's evaluation of their performance against pre-defined criteria. This structure encourages the contractor to go beyond minimum requirements to achieve superior performance, as recognized by the award fee. However, it also requires robust oversight from USAID to ensure that award fees are justified and that the contractor remains cost-conscious, as the total potential cost can be higher than fixed-price contracts if performance is exceptionally good.

What are the potential risks associated with a long-term contract (over 3 years) for global health technical assistance?

Long-term contracts for global health technical assistance, like this $398.9 million award to Credence Management Solutions, carry several potential risks. Firstly, the global health landscape is dynamic; priorities, funding levels, and geopolitical factors can shift, potentially making the contract's original scope misaligned with current needs. Secondly, there's a risk of contractor 'lock-in,' where the agency becomes overly dependent on a single provider, potentially reducing flexibility and stifling innovation. Thirdly, maintaining consistent high performance over an extended period can be challenging, and contractor fatigue or institutional knowledge loss could occur. Finally, the significant financial commitment over several years requires sustained budget allocation and could be vulnerable to future budget cuts or policy changes, impacting program continuity.

Given the 'Engineering Services' NAICS code (541330), how might this contract differ from traditional IT or management consulting contracts?

The NAICS code 541330, 'Engineering Services,' suggests that this contract likely involves a significant technical or scientific component beyond standard IT or management consulting. While management consulting focuses on organizational efficiency, strategy, and operations, and IT consulting on technology solutions, engineering services often imply the application of scientific and mathematical principles to design, develop, and implement solutions for complex problems. In the context of global health, this could translate to technical assistance in areas like health infrastructure development, medical equipment assessment and deployment, water and sanitation systems, or epidemiological modeling and analysis. It suggests a deeper level of technical expertise and problem-solving related to the physical or biological aspects of health programs, rather than purely administrative or digital systems.

What does the contract's award as a 'Delivery Order' imply about its structure within USAID's procurement system?

The fact that this contract was awarded as a 'Delivery Order' (aw: DELIVERY ORDER) implies that it is likely a task order issued under a larger, pre-existing indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar type of multiple-award framework. IDIQs allow government agencies to procure a broad range of supplies or services over a set period, with individual task orders defining the specific scope, quantity, delivery schedule, and price for a particular requirement. Awarding this as a delivery order suggests that Credence Management Solutions LLC was selected as one of potentially multiple awardees under a parent IDIQ contract, and this specific order represents a defined project or set of services within that larger framework. This procurement method can streamline the acquisition process for recurring needs.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering 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: 3

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Address: 8609 WESTWOOD CTR DR STE 300, VIENNA, VA, 22182

Business Categories: Category Business, Limited Liability Corporation, Minority Owned Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $682,653,619

Exercised Options: $682,653,619

Current Obligation: $398,914,055

Actual Outlays: $252,753,222

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QRAD20DU108

IDV Type: IDC

Timeline