USAID's $32.5M Integrated Health Program in Bauchi State awarded to Palladium International LLC

Contract Overview

Contract Amount: $32,489,329 ($32.5M)

Contractor: Palladium International LLC

Awarding Agency: Agency for International Development

Start Date: 2019-01-31

End Date: 2025-03-24

Contract Duration: 2,244 days

Daily Burn Rate: $14.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Healthcare

Official Description: INTEGRATED HEALTH PROGRAM (IHP TO03) - BAUCHI STATE

Plain-Language Summary

Agency for International Development obligated $32.5 million to PALLADIUM INTERNATIONAL LLC for work described as: INTEGRATED HEALTH PROGRAM (IHP TO03) - BAUCHI STATE Key points: 1. Significant investment in health services, potentially impacting millions. 2. Sole awardee suggests limited competition, raising cost-efficiency questions. 3. Long contract duration (2019-2025) requires ongoing performance monitoring. 4. Focus on 'All Other Professional, Scientific, and Technical Services' requires clear performance metrics.

Value Assessment

Rating: fair

The contract type is Cost Plus Fixed Fee, which can lead to higher costs if not managed tightly. Benchmarking against similar health program contracts is difficult without more detailed cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Despite being listed as 'full and open competition,' the award to a single entity, Palladium International LLC, suggests potential challenges in attracting multiple bidders or a specific niche requirement. This limited effective competition may impact price discovery.

Taxpayer Impact: Taxpayer funds are directed towards a large-scale health initiative. Ensuring value for money is crucial given the contract's substantial value and duration.

Public Impact

Improved healthcare access and quality for beneficiaries in Bauchi State. Potential for knowledge transfer and capacity building within the local health sector. Monitoring of program outcomes and impact on public health indicators is essential.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns with Cost Plus Fixed Fee contract.
Limited effective competition may lead to suboptimal pricing.
Long-term nature requires sustained oversight to ensure objectives are met.

Positive Signals

Addresses critical health needs in a specific region.
Long duration allows for sustained program impact.
Award to established international organization suggests experience.

Sector Analysis

This contract falls under professional, scientific, and technical services, specifically related to health programs. Spending in this category can vary widely based on program scope and duration, but large-scale international health initiatives represent significant investments.

Small Business Impact

The contract does not indicate any specific set-asides or participation goals for small businesses. Further analysis would be needed to determine if small businesses had opportunities to participate as subcontractors.

Oversight & Accountability

The Agency for International Development (USAID) is responsible for oversight. Given the contract's value and duration, robust monitoring mechanisms, including performance reviews and financial audits, are critical to ensure accountability and effective use of funds.

Related Government Programs

All Other Professional, Scientific, and Technical Services
Agency for International Development Contracting
Agency for International Development Programs

Risk Flags

Cost Plus Fixed Fee contract type can lead to higher costs.
Limited effective competition may impact price reasonableness.
Long contract duration increases oversight burden.
Lack of small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $32.5 million to PALLADIUM INTERNATIONAL LLC. INTEGRATED HEALTH PROGRAM (IHP TO03) - BAUCHI STATE

Who is the contractor on this award?

The obligated recipient is PALLADIUM INTERNATIONAL 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 $32.5 million.

What is the period of performance?

Start: 2019-01-31. End: 2025-03-24.

How effectively are the fixed fees structured to incentivize Palladium International LLC to achieve cost efficiencies and performance targets within the Cost Plus Fixed Fee arrangement?

The effectiveness of the fixed fee in a Cost Plus Fixed Fee contract hinges on its alignment with program objectives and performance metrics. A well-structured fee should reward the contractor for meeting or exceeding targets while penalizing underperformance. Without detailed contract clauses, it's difficult to assess if the fee adequately incentivizes cost control and efficient service delivery for this health program.

What specific factors limited the effective competition for this substantial health program, and how does USAID mitigate the risk of inflated costs due to this limitation?

Limited effective competition could stem from specialized requirements, contractor qualifications, or market dynamics. USAID typically mitigates cost risks through rigorous negotiation, independent cost analysis, and robust contract oversight. For this contract, understanding the pre-award market research and justification for the chosen competition method is key to assessing cost control measures.

How will the long contract duration (over six years) impact the program's adaptability to evolving health needs and technological advancements in Bauchi State?

Long contract durations can provide stability for complex programs but also risk obsolescence. USAID likely incorporates mechanisms for periodic reviews, potential modifications, and performance evaluations to ensure the program remains relevant and adaptable. Continuous monitoring of the health landscape and program outcomes will be crucial to address any necessary adjustments over the contract's lifespan.

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

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1331 PENNSYLVANIA AVE NW STE 600, WASHINGTON, DC, 20004

Business Categories: Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $33,599,526

Exercised Options: $33,599,526

Current Obligation: $32,489,329

Actual Outlays: $31,110,341

Subaward Activity

Number of Subawards: 18

Total Subaward Amount: $9,853,994

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 72062018D00001

IDV Type: IDC

Timeline