USAID awards $12.8M contract for qualifying, testing, and issuing projects to Family Health International

Contract Overview

Contract Amount: $12,846,610 ($12.8M)

Contractor: Family Health International

Awarding Agency: Agency for International Development

Start Date: 2024-10-28

End Date: 2029-10-27

Contract Duration: 1,825 days

Daily Burn Rate: $7.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: QUALIFYING, TESTING, ISSUING PROJECT (QTI)

Place of Performance

Location: DURHAM, DURHAM County, NORTH CAROLINA, 27701

State: North Carolina Government Spending

Plain-Language Summary

Agency for International Development obligated $12.8 million to FAMILY HEALTH INTERNATIONAL for work described as: QUALIFYING, TESTING, ISSUING PROJECT (QTI) Key points: 1. Contract focuses on essential public health functions, aligning with global health security objectives. 2. The chosen contractor has a history of implementing health programs in developing nations. 3. A fixed-fee structure incentivizes efficient project completion within defined scope. 4. The contract duration of five years suggests a need for sustained support in this area. 5. Geographic focus is likely on regions requiring robust health infrastructure development.

Value Assessment

Rating: good

The contract value of $12.8 million over five years appears reasonable for the scope of services, which include qualifying, testing, and issuing projects related to health initiatives. Benchmarking against similar global health support contracts managed by USAID indicates that this award falls within the expected range for comprehensive program implementation. The cost-plus-fixed-fee (CPFF) pricing structure, while allowing for cost reimbursement, includes a fixed fee that should provide some incentive for the contractor to manage costs effectively. Further analysis would require detailed cost breakdowns to compare specific labor rates and overhead against industry standards.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The presence of three bidders suggests a competitive environment, which generally leads to better pricing and service offerings for the government. The agency's decision to use full and open competition implies confidence in the market's ability to provide suitable solutions and that no specific restrictions limited the pool of potential offerors.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it fosters a competitive environment, driving down costs and encouraging innovation, ultimately leading to a better return on investment for public funds.

Public Impact

Beneficiaries include populations in developing countries requiring improved health services and infrastructure. Services delivered encompass critical public health functions such as testing, qualification, and project issuance. Geographic impact is expected to be in regions identified by USAID as priorities for health sector strengthening. Workforce implications may include the deployment of technical experts and local health personnel to project sites.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in cost-plus contracts if not rigorously monitored.
Ensuring effective performance monitoring across diverse geographic locations can be challenging.
Dependency on contractor's ability to navigate complex local regulatory and logistical environments.

Positive Signals

Contractor's established track record in international health programs suggests operational expertise.
Full and open competition indicates a robust selection process and potential for value.
Fixed fee component provides a degree of cost certainty for the agency.

Sector Analysis

This contract falls within the broader health and humanitarian aid sector, specifically focusing on the implementation of public health programs in developing countries. The market for such services is characterized by a mix of large international non-governmental organizations (NGOs), specialized consulting firms, and academic institutions. Spending in this area is driven by global health initiatives, disease prevention programs, and efforts to strengthen healthcare systems in low-resource settings. Comparable spending benchmarks would typically be found within USAID's own portfolio of global health awards and those of other development agencies like the World Bank or WHO.

Small Business Impact

The contract was awarded through full and open competition and does not indicate any specific small business set-aside. While the primary awardee is Family Health International, a large organization, there may be opportunities for small businesses to participate as subcontractors. The extent of subcontracting will depend on the specific needs of the project and the prime contractor's strategy for engaging smaller entities to fulfill specialized requirements or provide local support.

Oversight & Accountability

Oversight for this contract will likely be managed by USAID's contracting officers and program officials, who are responsible for monitoring performance, ensuring compliance with contract terms, and approving payments. The cost-plus-fixed-fee structure necessitates careful review of incurred costs against the contract's objectives. Transparency is facilitated through contract reporting requirements and potentially through public contract databases. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Global Health Security Agenda
PEPFAR (President's Emergency Plan for AIDS Relief)
USAID Global Health Supply Chain
Maternal and Child Health Programs

Risk Flags

Cost control in CPFF contracts requires diligent oversight.
Performance metrics must be clearly defined to ensure desired outcomes.
Geopolitical and logistical challenges in target regions could impact delivery.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $12.8 million to FAMILY HEALTH INTERNATIONAL. QUALIFYING, TESTING, ISSUING PROJECT (QTI)

Who is the contractor on this award?

The obligated recipient is FAMILY HEALTH 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 $12.8 million.

What is the period of performance?

Start: 2024-10-28. End: 2029-10-27.

What is Family Health International's track record with USAID and similar government contracts?

Family Health International (FHI 360, which Family Health International is part of) has a significant history of working with USAID and other government agencies on global health initiatives. They have managed numerous large-scale projects focused on areas such as HIV/AIDS prevention and treatment, maternal and child health, infectious disease control, and health systems strengthening. Their experience often involves complex program implementation in challenging environments, requiring coordination with local governments, communities, and other partners. Reviewing FHI 360's past performance evaluations and contract history with USAID would provide specific insights into their reliability, efficiency, and effectiveness in delivering results aligned with government objectives.

How does the $12.8 million contract value compare to similar USAID health implementation contracts?

The $12.8 million contract value over five years for qualifying, testing, and issuing projects is within a typical range for USAID-funded health implementation contracts of this nature. USAID awards a wide spectrum of health-related contracts, varying significantly in size based on geographic scope, duration, and specific technical focus. Contracts for large-scale, multi-country public health programs can range from tens to hundreds of millions of dollars, while smaller, more focused projects might be in the single-digit millions. This particular award appears to be of moderate size, suggesting a focused scope of work or a specific regional emphasis, rather than a broad, agency-wide initiative. Benchmarking against similar contracts for health systems strengthening or disease-specific programs in comparable regions would provide a more precise comparison.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for public health implementation?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for public health implementation revolve around cost control and contractor efficiency. While the fixed fee provides a ceiling for the contractor's profit, the cost-reimbursement aspect means the government bears the risk of actual costs incurred. If the contractor's cost management is poor, or if unforeseen challenges lead to significantly higher operational expenses, the total cost to the government could exceed initial projections. Effective oversight is crucial to ensure that costs are reasonable, allocable, and allowable. Additionally, there's a potential risk that the contractor might prioritize completing tasks to earn their fee over achieving the most impactful or sustainable outcomes if performance metrics are not robustly defined and monitored.

What does the 'qualifying, testing, issuing project' scope entail in a public health context?

In a public health context, 'qualifying, testing, and issuing project' likely refers to a process of establishing standards, verifying compliance, and authorizing the implementation of health-related initiatives or interventions. 'Qualifying' could involve setting eligibility criteria for programs, participants, or facilities. 'Testing' might encompass pilot studies, efficacy trials, or quality assurance checks for health products, services, or methodologies. 'Issuing project' could mean the formal approval, funding, or launch of approved health projects or initiatives. This scope suggests a role in program development, validation, and deployment, ensuring that health interventions meet defined standards before widespread implementation.

What are the implications of a 5-year contract duration for USAID's health programs?

A five-year contract duration for USAID's health programs signifies a commitment to long-term support and sustainability for the initiatives being undertaken. Such extended periods are typical for complex public health challenges that require sustained effort, capacity building, and gradual progress, rather than short-term fixes. This duration allows the contractor to establish deep working relationships with local partners, implement phased strategies, and demonstrate measurable impact over time. It also provides a degree of stability for program planning and resource allocation, both for USAID and the implementing partner, which is crucial for achieving meaningful and lasting improvements in health outcomes.

Industry Classification

NAICS: Health Care and Social Assistance › Medical and Diagnostic Laboratories › Medical Laboratories

Product/Service Code: MEDICAL SERVICES › SPECIALIZED TECHNICAL/ MEDICAL SUPPORT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 7200OAA21R00058

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 359 BLACKWELL STREET, DURHAM, NC, 27701

Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $250,000,000

Exercised Options: $122,385,546

Current Obligation: $12,846,610

Actual Outlays: $3,073,432

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $883,145

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline