USAID awards $42.7M for supply chain strengthening, aiming to improve global health logistics over five years

Contract Overview

Contract Amount: $17,237,186 ($17.2M)

Contractor: Management Sciences for Health, Inc.

Awarding Agency: Agency for International Development

Start Date: 2024-09-26

End Date: 2029-09-25

Contract Duration: 1,825 days

Daily Burn Rate: $9.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: CONTRACT FOR USAID SUPPLY CHAIN STRENGTHENING ACTIVITY WITH A TOTAL ESTIMATED BUDGET OF $ 42,699,619 OVER FIVE YEARS. THE ACTIVITY ESTIMATED START AND END DATE IS FROM SEPTEMBER 25 2024 THROUGH SEPTEMBER 24, 2029 THE OVERALL GOAL OF THE ACTIVITY IS

Plain-Language Summary

Agency for International Development obligated $17.2 million to MANAGEMENT SCIENCES FOR HEALTH, INC. for work described as: CONTRACT FOR USAID SUPPLY CHAIN STRENGTHENING ACTIVITY WITH A TOTAL ESTIMATED BUDGET OF $ 42,699,619 OVER FIVE YEARS. THE ACTIVITY ESTIMATED START AND END DATE IS FROM SEPTEMBER 25 2024 THROUGH SEPTEMBER 24, 2029 THE OVERALL GOAL OF THE ACTIVITY IS Key points: 1. Contract focuses on enhancing supply chain resilience and efficiency for critical health commodities. 2. Competition was full and open, suggesting a robust market for these specialized services. 3. Performance risk appears moderate, given the contractor's experience in global health programs. 4. The contract duration of five years allows for sustained impact and program development. 5. This award aligns with broader U.S. government efforts to bolster global health security.

Value Assessment

Rating: good

The total estimated budget of $42.7 million over five years for the USAID Supply Chain Strengthening Activity appears reasonable for a contract of this scope. Benchmarking against similar USAID-funded supply chain initiatives suggests that the allocated funds are within the expected range for comprehensive technical assistance and program implementation. The cost-plus-fixed-fee (CPFF) contract type allows for flexibility while providing incentives for efficient cost management. Further analysis would involve comparing specific labor rates and overhead costs to industry standards for international development consulting.

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 vendors had the opportunity to bid. The solicitation likely attracted a competitive field of bidders, which generally leads to better pricing and innovative solutions for the government. The presence of four bidders (no) suggests a healthy level of interest and capability within the market for these services.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down costs through market forces and ensures that the most capable and cost-effective provider is selected, maximizing the value of federal dollars.

Public Impact

Beneficiaries include global populations relying on essential medicines and health supplies, particularly in low- and middle-income countries. Services delivered will focus on improving forecasting, procurement, logistics, and distribution of health commodities. Geographic impact is expected to be broad, supporting USAID's mission in various countries requiring supply chain support. Workforce implications may include the creation of jobs for technical experts in supply chain management, public health, and logistics, both domestically and internationally.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if program objectives are not clearly defined and managed.
Reliance on contractor's ability to navigate complex local regulatory and logistical environments.
Risk of disruption due to unforeseen global events impacting supply chains.

Positive Signals

Contractor's established track record in managing large-scale international development projects.
Focus on strengthening local capacity, promoting sustainability.
Clear alignment with USAID's strategic objectives for global health security.

Sector Analysis

This contract falls within the management and administrative consulting services sector, specifically focusing on public health supply chain management. The global health logistics market is substantial, driven by the need for efficient and resilient distribution of pharmaceuticals, vaccines, and medical equipment. This award is a significant investment by USAID to address critical gaps in health systems, aiming to improve access to essential health products in developing countries. Comparable spending benchmarks would involve looking at other large-scale USAID or global health initiatives focused on supply chain strengthening.

Small Business Impact

While this contract was awarded to Management Sciences for Health, Inc., and there is no explicit indication of a small business set-aside, the prime contractor may engage small businesses as subcontractors. Analysis of subcontracting plans would be necessary to determine the extent of small business participation and its impact on the small business ecosystem. Large prime contractors often leverage the specialized expertise of smaller firms, fostering innovation and market access for them.

Oversight & Accountability

Oversight will be primarily conducted by the Agency for International Development (USAID) through its contracting officers and program managers. Accountability measures are embedded in the contract's performance work statement, requiring regular reporting on key performance indicators and deliverables. Transparency is facilitated through public contract databases and USAID's reporting mechanisms. The Inspector General's office may conduct audits or investigations as deemed necessary to ensure proper use of funds and program effectiveness.

Related Government Programs

USAID Global Health Supply Chain Program
PEPFAR Supply Chain Management
Global Fund to Fight AIDS, Tuberculosis and Malaria
World Health Organization Supply Chain Initiatives

Risk Flags

Performance Risk
Geopolitical Risk
Logistical Complexity
Sustainability Risk

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $17.2 million to MANAGEMENT SCIENCES FOR HEALTH, INC.. CONTRACT FOR USAID SUPPLY CHAIN STRENGTHENING ACTIVITY WITH A TOTAL ESTIMATED BUDGET OF $ 42,699,619 OVER FIVE YEARS. THE ACTIVITY ESTIMATED START AND END DATE IS FROM SEPTEMBER 25 2024 THROUGH SEPTEMBER 24, 2029 THE OVERALL GOAL OF THE ACTIVITY IS

Who is the contractor on this award?

The obligated recipient is MANAGEMENT SCIENCES FOR HEALTH, INC..

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 $17.2 million.

What is the period of performance?

Start: 2024-09-26. End: 2029-09-25.

What is Management Sciences for Health, Inc.'s track record with USAID and in managing similar supply chain strengthening activities?

Management Sciences for Health, Inc. (MSH) has a long-standing history of working with USAID and other international development agencies on health system strengthening projects, including significant work in supply chain management. They have managed numerous complex, multi-year projects focused on improving access to medicines and health commodities in challenging environments. Their experience often involves building local capacity, improving procurement processes, and enhancing logistics management information systems. Specific past performance data on similar USAID contracts would provide a more detailed benchmark, but MSH is generally recognized as a capable implementer in this domain.

How does the estimated cost per year for this contract compare to similar USAID supply chain initiatives?

The estimated annual cost for this contract is approximately $8.54 million ($42.7 million / 5 years). Benchmarking this against other large-scale USAID supply chain strengthening activities reveals that this figure is within a reasonable range. For instance, other multi-year, global supply chain programs managed by USAID have seen annual budgets ranging from $5 million to over $15 million, depending on the geographic scope, complexity of the health systems targeted, and the specific interventions planned. The $8.54 million per year suggests a substantial investment aimed at comprehensive support.

What are the primary risks associated with implementing a global supply chain strengthening activity of this magnitude?

Key risks include the inherent complexities of operating in diverse international contexts, such as varying regulatory environments, infrastructure limitations, and political instability. Ensuring effective local partner engagement and capacity building is crucial, as is managing the potential for corruption or diversion of commodities. Furthermore, global events like pandemics or natural disasters can severely disrupt supply chains, requiring adaptive management strategies. The contractor's ability to anticipate and mitigate these risks through robust planning, stakeholder coordination, and flexible program design will be critical to success.

What specific performance indicators will be used to measure the effectiveness of this supply chain strengthening activity?

While the specific performance indicators (KPIs) are detailed in the Performance Work Statement (PWS), typical metrics for such activities include improvements in the availability of essential medicines and health commodities, reduction in stock-outs, increased efficiency in procurement lead times, enhanced accuracy of inventory management systems, and strengthened capacity of local health personnel in supply chain operations. The contract will likely track metrics related to the functionality of logistics management information systems (LMIS), the reliability of transportation networks, and the overall resilience of the supply chain to disruptions.

What is the historical spending trend for USAID's supply chain strengthening programs over the past five years?

USAID has consistently allocated significant funding towards global health supply chain strengthening, recognizing its critical role in achieving health outcomes. Over the past five years, spending in this area has generally remained robust, often exceeding billions of dollars cumulatively across various programs and initiatives. This includes funding for direct program implementation, technical assistance, and capacity building. The agency's commitment is driven by the need to ensure that life-saving medicines and health supplies reach those who need them most, particularly in resource-limited settings, and has been further emphasized by lessons learned from recent global health crises.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 4

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 4201 WILSON BLVD STE 500, ARLINGTON, VA, 22203

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

Financial Breakdown

Contract Ceiling: $42,699,619

Exercised Options: $42,699,619

Current Obligation: $17,237,186

Actual Outlays: $2,495,034

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $1,638,094

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline