USAID's $30M HIV service delivery contract in Kenya awarded to Family Health International

Contract Overview

Contract Amount: $29,843,137 ($29.8M)

Contractor: Family Health International

Awarding Agency: Agency for International Development

Start Date: 2017-12-08

End Date: 2023-06-29

Contract Duration: 2,029 days

Daily Burn Rate: $14.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: HIV SERVICE DELIVERY SUPPORT ACTIVITY (HSDSA) CLUSTER 2 - BARINGO, KAJIADO, LAIKIPIA, NAROK, NAKURU, SAMBURU AND TURKANA.THE UNITED STATES AGENCY FOR INTERNATIONAL DEVELOPMENT (USAID) KENYA AND EAST AFRICA IS ISSUING THIS CONTRACT ENTITLED HSDSA CLUSTER 2. THE OVERALL GOAL OF THE ACTIVITY IS TO INCREASE ACCESS AND COVERAGE FOR HIV PREVENTION, CARE AND TREATMENT SERVICES TOWARDS ACHIEVING THE 90-90-90 TARGETS IN KENYA.

Plain-Language Summary

Agency for International Development obligated $29.8 million to FAMILY HEALTH INTERNATIONAL for work described as: HIV SERVICE DELIVERY SUPPORT ACTIVITY (HSDSA) CLUSTER 2 - BARINGO, KAJIADO, LAIKIPIA, NAROK, NAKURU, SAMBURU AND TURKANA.THE UNITED STATES AGENCY FOR INTERNATIONAL DEVELOPMENT (USAID) KENYA AND EAST AFRICA IS ISSUING THIS CONTRACT ENTITLED HSDSA CLUSTER 2. THE OVERALL GOAL OF THE… Key points: 1. Contract aims to improve HIV prevention, care, and treatment services in Kenya. 2. Focus on achieving 90-90-90 targets for HIV/AIDS response. 3. Awarded through full and open competition, suggesting a robust bidding process. 4. Contract duration extends over 2000 days, indicating a long-term commitment. 5. The contract type is Cost Plus Fixed Fee, which can incentivize cost control. 6. The geographic scope covers seven counties in Kenya, highlighting a significant regional focus.

Value Assessment

Rating: good

The contract value of approximately $30 million over its duration appears reasonable for a large-scale public health initiative in Kenya. Benchmarking against similar USAID-funded health service delivery contracts in the region would provide further context. The Cost Plus Fixed Fee structure allows for cost reimbursement plus a predetermined profit, which can be effective in managing projects where costs are difficult to estimate upfront, though it requires careful oversight to prevent cost 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 process typically leads to a more competitive pricing environment and a wider selection of potential contractors. The presence of three bidders suggests a healthy level of interest and competition for this significant USAID initiative.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through market forces and ensuring the government receives the best value for its investment.

Public Impact

The primary beneficiaries are individuals in Baringo, Kajiado, Laikipia, Narok, Nakuru, Samburu, and Turkana counties in Kenya who will receive improved HIV prevention, care, and treatment services. The services delivered are critical for advancing Kenya's national HIV/AIDS response and working towards the 90-90-90 targets. The geographic impact is substantial, covering seven diverse counties, which are likely to have varying levels of HIV prevalence and access to healthcare. The contract supports the local healthcare workforce and potentially local organizations involved in service delivery, contributing to capacity building within Kenya.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Fixed Fee contracts if not rigorously monitored.
Ensuring equitable distribution of services across the seven diverse counties presents logistical challenges.
Measuring the direct impact on achieving the 90-90-90 targets requires robust monitoring and evaluation systems.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that likely secured fair pricing.
The long contract duration allows for sustained program implementation and impact.
Focus on critical public health goals (HIV prevention, care, treatment) aligns with significant development needs.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically focusing on public health program implementation. The global market for international development and health services is substantial, with organizations like USAID playing a key role in funding such initiatives. Comparable spending benchmarks would involve looking at other large-scale USAID health projects or similar programs funded by other international development agencies in sub-Saharan Africa.

Small Business Impact

The provided data does not indicate any specific small business set-asides or subcontracting requirements for this contract. Further investigation would be needed to determine if small businesses were involved in the subcontracting chain or if there were opportunities missed for their participation.

Oversight & Accountability

USAID typically employs robust oversight mechanisms for its contracts, including regular performance reviews, financial audits, and monitoring by its Inspector General. The agency's presence in Kenya suggests direct program management and oversight capabilities. Transparency is generally maintained through contract award databases and public reporting on program achievements.

Related Government Programs

USAID Global Health Security Agenda
PEPFAR (President's Emergency Plan for AIDS Relief)
Global Fund to Fight AIDS, Tuberculosis and Malaria
UNAIDS programs

Risk Flags

Geographic disparities in service access
Sustainability of services post-contract
Monitoring and evaluation effectiveness
Cost control in CPFF contract

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $29.8 million to FAMILY HEALTH INTERNATIONAL. HIV SERVICE DELIVERY SUPPORT ACTIVITY (HSDSA) CLUSTER 2 - BARINGO, KAJIADO, LAIKIPIA, NAROK, NAKURU, SAMBURU AND TURKANA.THE UNITED STATES AGENCY FOR INTERNATIONAL DEVELOPMENT (USAID) KENYA AND EAST AFRICA IS ISSUING THIS CONTRACT ENTITLED HSDSA CLUSTER 2. THE OVERALL GOAL OF THE ACTIVITY IS TO INCREASE ACCESS AND COVERAGE FOR HIV PREVENTION, CARE AND TREATMENT SERVICES TOWARDS ACHIEVING THE 90-90-90 TARGETS IN KENYA.

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 $29.8 million.

What is the period of performance?

Start: 2017-12-08. End: 2023-06-29.

What is the track record of Family Health International (FHI) in managing large-scale USAID health contracts, particularly in sub-Saharan Africa?

Family Health International (FHI) is a well-established global non-profit organization with extensive experience in international public health, including a long history of working with USAID. They have managed numerous large-scale health programs, including those focused on HIV/AIDS prevention, care, and treatment, across various countries in sub-Saharan Africa. Their track record generally indicates a capacity to implement complex projects, manage significant budgets, and work towards ambitious public health goals. Specific performance metrics and past evaluations of their USAID contracts would provide a more detailed assessment of their effectiveness and efficiency in similar endeavors.

How does the cost structure (Cost Plus Fixed Fee) typically perform in terms of value for money compared to other contract types for similar health service delivery programs?

Cost Plus Fixed Fee (CPFF) contracts reimburse the contractor for allowable costs plus a fixed fee representing profit. This structure is often used when the scope of work is well-defined but the exact costs are uncertain, as is common in complex service delivery programs. While CPFF can incentivize contractors to complete work efficiently to maximize their fixed profit margin, it also requires strong government oversight to ensure costs are reasonable and necessary. Compared to fixed-price contracts, CPFF may offer less upfront price certainty for the government but can be more adaptable to evolving program needs. Value for money is highly dependent on the effectiveness of USAID's cost monitoring and performance evaluation.

What are the key performance indicators (KPIs) used to measure the success of this HIV Service Delivery Support Activity (HSDSA) Cluster 2 contract?

While specific KPIs are not detailed in the provided summary data, contracts like the HSDSA Cluster 2 typically measure success against the overarching goals of the program, which are to increase access and coverage for HIV prevention, care, and treatment services towards achieving the 90-90-90 targets. Key performance indicators would likely include metrics such as the number of individuals receiving HIV testing, the percentage of individuals testing positive who are linked to care, the number of individuals on antiretroviral therapy (ART), the viral load suppression rate among those on ART, and the reduction in new HIV infections. Data quality and reporting accuracy would also be critical performance indicators.

What is the historical spending pattern for HIV/AIDS service delivery support in Kenya by USAID?

USAID has been a major funder of HIV/AIDS programs in Kenya for many years, primarily through the President's Emergency Plan for AIDS Relief (PEPFAR). Historical spending has been substantial, focusing on prevention, treatment, care, and strengthening health systems. The HSDSA Cluster 2 contract represents a significant portion of this ongoing investment. Analyzing USAID's historical budget allocations and expenditures for HIV/AIDS in Kenya would reveal trends in funding levels, shifts in program priorities (e.g., from prevention to treatment scale-up), and the geographic distribution of resources over time.

What are the potential risks associated with implementing a large-scale health service delivery program across seven diverse counties in Kenya?

Implementing a large-scale health program across seven diverse counties in Kenya presents several potential risks. These include logistical challenges in reaching remote populations, variations in local healthcare infrastructure and capacity, potential for political instability or security concerns in certain regions, and the need to adapt program strategies to different socio-cultural contexts and local epidemiology. Ensuring equitable access to services across all counties, managing a complex supply chain for medical commodities, and maintaining consistent quality of care are also significant risks. Furthermore, the risk of program discontinuity due to funding fluctuations or changes in government priorities always exists.

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-61517-000002

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 359 BLACKWELL ST STE 200, DURHAM, NC, 27701

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: $29,972,257

Exercised Options: $29,972,257

Current Obligation: $29,843,137

Actual Outlays: $12,977,963

Subaward Activity

Number of Subawards: 48

Total Subaward Amount: $7,316,491

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline