USAID's $66.6M Scaling Up Nutrition Program in Zambia aims to reduce stunting, building on lessons from Phase 1

Contract Overview

Contract Amount: $66,588,835 ($66.6M)

Contractor: DAI Global LLC

Awarding Agency: Agency for International Development

Start Date: 2019-02-07

End Date: 2025-08-17

Contract Duration: 2,383 days

Daily Burn Rate: $27.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: THE SCALING UP NUTRITION PROGRAM IS A CROSS-MINISTRY AND MULTI-DONOR PROGRAM TO REDUCE STUNTING IN ZAMBIA THROUGH IMPLEMENTATION OF THE GOVERNMENT OF THE REPUBLIC OF ZAMBIA (GRZ) 1,000 MOST CRITICAL DAYS PROGRAM. THE FIRST PHASE, REFERRED TO AS SUN 1.0. WAS FUNDED BY SEVERAL DONOR ORGANIZATIONS AND SIGNIFICANT LESSONS WERE LEARNED REGARDING COORDINATION AND IMPLEMENTATION. ANNEX 1 SUN 2.0 DESIGN REPORT, SEPTEMBER 2016 PROVIDES A COMPREHENSIVE BACKGROUND ON THE LESSONS LEARNED OF SUN 1.0 AND THE OVERALL DIRECTION OF THE SUN 2.0 PROGRAM.

Plain-Language Summary

Agency for International Development obligated $66.6 million to DAI GLOBAL LLC for work described as: THE SCALING UP NUTRITION PROGRAM IS A CROSS-MINISTRY AND MULTI-DONOR PROGRAM TO REDUCE STUNTING IN ZAMBIA THROUGH IMPLEMENTATION OF THE GOVERNMENT OF THE REPUBLIC OF ZAMBIA (GRZ) 1,000 MOST CRITICAL DAYS PROGRAM. THE FIRST PHASE, REFERRED TO AS SUN 1.0. WAS FUNDED BY SEVERAL DONO… Key points: 1. The program targets a critical development issue: childhood stunting, with significant long-term economic and social implications. 2. Building on lessons learned from SUN 1.0, this phase emphasizes improved coordination and implementation strategies. 3. The contract utilizes a Cost Plus Fixed Fee (CPFF) structure, which can incentivize contractor efficiency but requires careful oversight. 4. The duration of the contract (over 6 years) suggests a complex, long-term intervention requiring sustained effort. 5. The program's success hinges on cross-ministry collaboration within the Zambian government and effective donor coordination. 6. The broad scope of 'All Other Professional, Scientific, and Technical Services' necessitates clear performance metrics and monitoring.

Value Assessment

Rating: good

The total contract value of $66.6 million over approximately six years for a large-scale nutrition program in Zambia appears reasonable, especially considering the complexity of multi-stakeholder coordination and the critical development objective of reducing stunting. Benchmarking against similar large-scale international development programs, particularly those focused on health and nutrition in Sub-Saharan Africa, suggests this funding level is within expected ranges for comprehensive interventions. The CPFF pricing structure, while common, requires diligent monitoring to ensure cost efficiency and prevent overruns.

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 had the opportunity to submit proposals. This competitive process is generally expected to yield a fair price and encourage innovative solutions. The presence of 7 bidders suggests a healthy level of interest and competition for this type of development contract.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it promotes a competitive environment, which typically leads to better pricing and value for money. It ensures that the most capable and cost-effective contractor is selected.

Public Impact

The primary beneficiaries are children under two years old in Zambia, aiming to reduce stunting and improve long-term health and cognitive development. The program delivers technical assistance, capacity building, and support for the implementation of the Zambian government's '1,000 Most Critical Days Program'. Geographic impact is national, focusing on the '1,000 Most Critical Days Program' which targets vulnerable populations across Zambia. Workforce implications include strengthening local capacity within government ministries and potentially creating employment opportunities through implementing partners.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The CPFF contract type can lead to cost overruns if not managed tightly, as the contractor is reimbursed for all allowable costs plus a fixed fee.
The broad 'All Other Professional, Scientific, and Technical Services' NAICS code makes it challenging to precisely benchmark the scope of work and associated costs.
Coordination across multiple ministries and donors presents inherent risks to program implementation and effectiveness.
The long contract duration increases the risk of scope creep or misalignment with evolving country needs if not regularly reviewed.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process and potential for competitive pricing.
The program builds on lessons learned from a previous phase (SUN 1.0), indicating a commitment to adaptive management and continuous improvement.
The focus on a critical development issue (stunting) with a clear government-led program ('1,000 Most Critical Days') provides a strong foundation for impact.
The contract is with DAI Global LLC, a well-established international development firm with a track record in similar projects.

Sector Analysis

This contract falls within the international development and technical assistance sector, specifically focusing on public health and nutrition initiatives in developing countries. The market for such services is characterized by a mix of large international NGOs, private sector consulting firms, and specialized development organizations. Spending in this area is driven by foreign aid budgets and global health priorities. Comparable spending benchmarks would include other large-scale USAID-funded health and nutrition programs in Africa, which often range from tens to hundreds of millions of dollars over several years.

Small Business Impact

There is no explicit indication of small business set-asides for this contract. However, large prime contractors like DAI Global LLC are often required to subcontract a portion of the work to smaller businesses, including small disadvantaged businesses, women-owned small businesses, and service-disabled veteran-owned small businesses. The extent of subcontracting to small businesses will depend on the specific requirements outlined in the contract and the contractor's subcontracting plan, which can significantly impact the small business ecosystem by providing them with opportunities to participate in large federal projects.

Oversight & Accountability

Oversight for this contract is primarily managed by the U.S. Agency for International Development (USAID), likely through a Contracting Officer's Representative (COR) and technical specialists. Accountability measures would include regular performance reporting by the contractor, site visits, and periodic reviews of program progress against established milestones and objectives. Transparency is typically facilitated through public contract databases and potentially through USAID's own program reporting mechanisms. Inspector General jurisdiction would apply for any allegations of fraud, waste, or abuse related to the contract.

Related Government Programs

Scaling Up Nutrition (SUN) Movement
USAID Global Health Bureau Programs
Feed the Future Initiative
Zambia Health Sector Support Programs
UNICEF Nutrition Programs

Risk Flags

Contract Type Risk (CPFF)
Coordination Complexity
Sustainability Risk
Performance Measurement Challenges
Geopolitical/Economic Instability

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $66.6 million to DAI GLOBAL LLC. THE SCALING UP NUTRITION PROGRAM IS A CROSS-MINISTRY AND MULTI-DONOR PROGRAM TO REDUCE STUNTING IN ZAMBIA THROUGH IMPLEMENTATION OF THE GOVERNMENT OF THE REPUBLIC OF ZAMBIA (GRZ) 1,000 MOST CRITICAL DAYS PROGRAM. THE FIRST PHASE, REFERRED TO AS SUN 1.0. WAS FUNDED BY SEVERAL DONOR ORGANIZATIONS AND SIGNIFICANT LESSONS WERE LEARNED REGARDING COORDINATION AND IMPLEMENTATION. ANNEX 1 SUN 2.0 DESIGN REPORT, SEPTEMBER 2016 PROVIDES A COMPREHENSIVE BACKGROUND ON THE LESSONS LEARNED OF SUN 1.0 AND THE

Who is the contractor on this award?

The obligated recipient is DAI GLOBAL LLC.

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 $66.6 million.

What is the period of performance?

Start: 2019-02-07. End: 2025-08-17.

What is the track record of DAI Global LLC in implementing large-scale nutrition and development programs in Sub-Saharan Africa?

DAI Global LLC has a substantial track record in international development, including numerous projects focused on health, nutrition, agriculture, and governance across Sub-Saharan Africa. They have managed complex, multi-year, multi-million dollar contracts for USAID and other development agencies. For instance, DAI has been involved in various USAID-funded health system strengthening projects, agricultural value chain development, and economic growth initiatives in countries like Ethiopia, Kenya, and Nigeria. Their experience often includes managing large consortia of partners and working closely with host governments to achieve development outcomes. While specific performance data for every project isn't publicly detailed, their consistent selection for large contracts suggests a generally positive performance history and capability to handle complex development challenges.

How does the cost structure (CPFF) compare to other contract types for similar international development programs?

The Cost Plus Fixed Fee (CPFF) contract type is common for large, complex international development programs where the scope of work may evolve or is difficult to define precisely at the outset. In CPFF, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. This contrasts with Fixed Price contracts, where the price is set upfront, offering more cost certainty to the government but potentially shifting risk to the contractor. Cost Plus Incentive Fee (CPIF) contracts offer shared savings or award fees based on performance. For development work involving significant research, capacity building, or adapting to local contexts, CPFF can be advantageous as it allows flexibility. However, it places a greater burden on the government to meticulously monitor costs and ensure efficiency, as the contractor has less direct financial incentive to control expenses compared to fixed-price arrangements.

What are the key performance indicators (KPIs) used to measure the success of the Scaling Up Nutrition Program?

While the specific KPIs are detailed within the contract's Statement of Work (SOW) and Performance Work Statement (PWS), typical KPIs for a program like the Scaling Up Nutrition (SUN) Program in Zambia would focus on measurable improvements in nutritional status and related health outcomes. These often include: reduction in the prevalence of stunting (height-for-age) among children under five, reduction in wasting (weight-for-height) and underweight (weight-for-age); increased rates of exclusive breastfeeding; improved dietary diversity among mothers and children; increased access to and utilization of essential nutrition services; strengthened capacity of local health workers and government ministries in nutrition programming; and improved coordination mechanisms among stakeholders. Performance is usually assessed through baseline, midline, and endline surveys, as well as regular programmatic monitoring data.

What is the historical spending trend for USAID nutrition programs in Zambia or similar countries?

USAID has consistently invested in nutrition programs globally, recognizing their critical impact on child survival, cognitive development, and long-term economic productivity. Historical spending trends for USAID nutrition programs in countries like Zambia, which face significant burdens of malnutrition, are substantial. These programs often receive tens of millions of dollars over several years, reflecting the complexity and long-term nature of addressing undernutrition. Funding is typically channeled through various mechanisms, including direct support to government initiatives, partnerships with NGOs and local organizations, and technical assistance. Spending can fluctuate based on global health priorities, country-specific needs, and the agency's strategic focus, but nutrition remains a core component of USAID's global health and development portfolio.

What are the potential risks associated with implementing a multi-sectoral nutrition program in a country like Zambia?

Implementing a multi-sectoral nutrition program like SUN 2.0 in Zambia involves several significant risks. Political instability or changes in government priorities could disrupt cross-ministry coordination and sustained commitment. Weak institutional capacity within government ministries can hinder effective implementation and absorption of technical assistance. Logistical challenges, such as poor infrastructure in rural areas, can impede service delivery and monitoring. Socio-cultural factors, including traditional beliefs and practices related to infant feeding, may require sensitive and tailored approaches. Furthermore, reliance on donor funding introduces risks related to funding fluctuations or shifts in donor priorities. Economic instability within Zambia could also impact the government's ability to co-finance or sustain program activities. Finally, the effectiveness of interventions can be undermined by concurrent health crises (e.g., disease outbreaks) or environmental factors (e.g., drought affecting food security).

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-611-17-000005

Offers Received: 7

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 7600 WISCONSIN AVE STE 200, BETHESDA, MD, 20814

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $66,602,775

Exercised Options: $66,602,775

Current Obligation: $66,588,835

Actual Outlays: $59,644,150

Subaward Activity

Number of Subawards: 107

Total Subaward Amount: $16,494,117

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline