USAID awards $32.3M for Kebbi State health program to Palladium International LLC

Contract Overview

Contract Amount: $32,274,205 ($32.3M)

Contractor: Palladium International LLC

Awarding Agency: Agency for International Development

Start Date: 2019-03-21

End Date: 2024-04-02

Contract Duration: 1,839 days

Daily Burn Rate: $17.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: TO IMPLEMENT A FIVE-YEAR INTEGRATED HEALTH PROGRAM IN KEBBI STATE.

Plain-Language Summary

Agency for International Development obligated $32.3 million to PALLADIUM INTERNATIONAL LLC for work described as: TO IMPLEMENT A FIVE-YEAR INTEGRATED HEALTH PROGRAM IN KEBBI STATE. Key points: 1. Contract awarded via full and open competition, suggesting broad market engagement. 2. Palladium International LLC, a known entity, secured the award. 3. The contract spans five years, indicating a long-term program commitment. 4. The 'All Other Professional, Scientific, and Technical Services' NAICS code is broad, potentially encompassing diverse activities.

Value Assessment

Rating: fair

The contract type is Cost Plus Fixed Fee (CPFF), which can lead to cost overruns if not managed carefully. The fixed fee component provides some incentive for efficiency, but the overall cost structure warrants close monitoring.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The award was made under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and allows the agency to select the best value offer.

Taxpayer Impact: Taxpayer funds are being used for a significant international development program, with the expectation of improved health outcomes in Kebbi State.

Public Impact

Enhances healthcare infrastructure and services in Kebbi State, Nigeria. Aims to improve maternal and child health, infectious disease control, and health system strengthening. Supports long-term sustainable health solutions through a five-year program.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost creep under CPFF contract type.
Broad NAICS code may obscure specific service costs.
Long contract duration increases exposure to changing conditions.

Positive Signals

Awarded through full and open competition.
Addresses critical health needs in a developing region.
Long-term commitment allows for sustained impact.

Sector Analysis

This contract falls under professional, scientific, and technical services, specifically related to international development and public health. Spending in this sector is often driven by foreign aid budgets and global health initiatives, with benchmarks varying widely based on program scope and geographic location.

Small Business Impact

The data does not indicate any specific set-aside for small businesses. Given the contract's value and scope, it is likely that larger, established organizations were the primary bidders.

Oversight & Accountability

The Agency for International Development (USAID) is responsible for overseeing this contract. Robust oversight will be crucial to ensure program objectives are met efficiently and effectively, and that funds are used appropriately.

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 carries inherent risk of cost overruns.
Broad NAICS code (541990) lacks specificity, potentially masking cost drivers.
Long contract duration (5 years) increases exposure to geopolitical and economic risks.
Lack of small business participation noted.
International program execution involves complex logistical and political challenges.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $32.3 million to PALLADIUM INTERNATIONAL LLC. TO IMPLEMENT A FIVE-YEAR INTEGRATED HEALTH PROGRAM IN KEBBI 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 $32.3 million.

What is the period of performance?

Start: 2019-03-21. End: 2024-04-02.

What specific performance metrics will be used to evaluate the success of the integrated health program, and how will they be tracked over the five-year period?

Performance metrics will likely focus on key health indicators such as reduced maternal and child mortality rates, increased vaccination coverage, improved access to essential medicines, and strengthened local health system capacity. Regular reporting, site visits, and independent evaluations will be employed to track progress against these targets throughout the contract's duration.

How will potential cost overruns be mitigated under the Cost Plus Fixed Fee (CPFF) structure, and what are the agency's contingency plans?

Mitigation strategies for CPFF contracts typically involve rigorous budget reviews, detailed cost proposals, and strict adherence to the fixed fee. USAID will likely implement phased funding, require detailed justification for expenditures, and establish clear thresholds for cost increases. Contingency plans may include re-negotiating terms or seeking additional appropriations if unforeseen circumstances significantly impact program costs.

What is the anticipated long-term impact of this program on the sustainability of healthcare services in Kebbi State beyond the contract period?

The program aims to build local capacity and strengthen existing health systems to ensure sustainability. This includes training healthcare workers, improving supply chains, and fostering community engagement. The goal is to create a self-sufficient healthcare infrastructure that can continue to serve the population effectively after the five-year program concludes.

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: $33,257,145

Exercised Options: $33,257,145

Current Obligation: $32,274,205

Actual Outlays: $30,317,698

Subaward Activity

Number of Subawards: 18

Total Subaward Amount: $10,090,426

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