USAID's $83.7M AUHC R&D Contract Aims to Transform Health Services in Bangladesh

Contract Overview

Contract Amount: $83,704,694 ($83.7M)

Contractor: Chemonics International, Inc.

Awarding Agency: Agency for International Development

Start Date: 2017-10-01

End Date: 2023-12-31

Contract Duration: 2,282 days

Daily Burn Rate: $36.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::OT::IGF OTHER FUNCTIONS USAIDS ADVANCING UNIVERSAL HEALTH COVERAGE (AUHC) IS A RESEARCH AND DEVELOPMENT CONTRACT THAT WILL FACILITATE THE TRANSFORMATION OF THE SMILING SUN NETWORK TO A SUSTAINABLE PRO-POOR SOCIAL ENTERPRISE. AUHC WILL INTRODUCE INNOVATIVE BUSINESS AND OPERATIONAL MODELS, CREATE RESEARCH-BASED HEALTH SERVICE PACKAGES FOR THE POOR, AND EXPERIMENT WITH NEW HEALTH SERVICE DELIVERY CHANNELS. AUHC WILL SYSTEMATICALLY USE SCIENTIFIC AND TECHNICAL KNOWLEDGE TO DESIGN, DEVELOP, TEST, AND EVALUATE POTENTIAL NEW PRODUCTS AND SERVICES (OR IMPROVE EXISTING ONES) TO ADVANCE UNIVERSAL HEALTH COVERAGE (UHC) IN BANGLADESH. THIS PROCESS WILL INCLUDE FUNCTIONS OF DESIGN, PROTOTYPING, TESTING, AND SCALING SUCCESSFUL APPROACHES.

Plain-Language Summary

Agency for International Development obligated $83.7 million to CHEMONICS INTERNATIONAL, INC. for work described as: IGF::OT::IGF OTHER FUNCTIONS USAIDS ADVANCING UNIVERSAL HEALTH COVERAGE (AUHC) IS A RESEARCH AND DEVELOPMENT CONTRACT THAT WILL FACILITATE THE TRANSFORMATION OF THE SMILING SUN NETWORK TO A SUSTAINABLE PRO-POOR SOCIAL ENTERPRISE. AUHC WILL INTRODUCE INNOVATIVE BUSINESS AND OPERA… Key points: 1. This contract focuses on research and development to create sustainable, pro-poor health enterprise models. 2. It aims to introduce innovative business models and test new health service delivery channels. 3. The project involves designing, developing, testing, and evaluating new products and services for universal health coverage. 4. Competition was full and open, suggesting a robust price discovery process. 5. The contract's duration of over 2200 days indicates a long-term, complex R&D effort.

Value Assessment

Rating: questionable

The contract type is Cost Plus Fixed Fee, which can lead to higher costs if not managed carefully. Benchmarking is difficult without specific cost breakdowns for R&D activities.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which generally supports competitive pricing. However, the nature of R&D makes direct price comparisons challenging.

Taxpayer Impact: Taxpayer funds are supporting innovative approaches to improve health coverage, with potential long-term benefits if successful, but also carries R&D risk.

Public Impact

Potential for significant improvements in healthcare access and affordability for the poor in Bangladesh. Introduction of novel business and delivery models could serve as a blueprint for other developing nations. Investment in research and development may lead to scalable and sustainable health solutions. Success hinges on effective implementation and the ability to translate research into practical, impactful services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize higher spending.
Long contract duration may increase risk of cost overruns or scope creep.
R&D inherently carries a risk of not achieving desired outcomes.
Lack of specific performance metrics makes it hard to assess value for money.

Positive Signals

Focus on sustainable, pro-poor models addresses critical development needs.
Emphasis on research and innovation could yield groundbreaking solutions.
Full and open competition suggests a fair and competitive award process.
Potential for significant positive impact on universal health coverage.

Sector Analysis

This contract falls under 'All Other Professional, Scientific, and Technical Services,' a broad category. The spending benchmark for this NAICS code can vary widely based on the specific services provided. The $83.7M value is substantial for an R&D contract in this sector.

Small Business Impact

The data indicates that small businesses were not a primary focus for this contract, as the awardee is Chemonics International, Inc., a large firm, and the 'sb' field is false. There is no indication of subcontracting opportunities for small businesses within the provided data.

Oversight & Accountability

Oversight will be crucial given the Cost Plus Fixed Fee structure and the long duration of the contract. The Agency for International Development (USAID) is responsible for monitoring progress, ensuring funds are used effectively, and verifying that the R&D objectives are met.

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.
Long contract duration (2282 days).
R&D inherently involves uncertainty and risk of failure.
Lack of detailed performance metrics in provided data.
Potential for cost overruns in complex R&D projects.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $83.7 million to CHEMONICS INTERNATIONAL, INC.. IGF::OT::IGF OTHER FUNCTIONS USAIDS ADVANCING UNIVERSAL HEALTH COVERAGE (AUHC) IS A RESEARCH AND DEVELOPMENT CONTRACT THAT WILL FACILITATE THE TRANSFORMATION OF THE SMILING SUN NETWORK TO A SUSTAINABLE PRO-POOR SOCIAL ENTERPRISE. AUHC WILL INTRODUCE INNOVATIVE BUSINESS AND OPERATIONAL MODELS, CREATE RESEARCH-BASED HEALTH SERVICE PACKAGES FOR THE POOR, AND EXPERIMENT WITH NEW HEALTH SERVICE DELIVERY CHANNELS. AUHC WILL SYSTEMATICALLY USE SCIENTIFIC AND TECHNICAL KNOWLEDGE TO DESIGN, DEVELOP, TES

Who is the contractor on this award?

The obligated recipient is CHEMONICS INTERNATIONAL, 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 $83.7 million.

What is the period of performance?

Start: 2017-10-01. End: 2023-12-31.

What specific metrics are in place to measure the success of the R&D efforts and the transformation of the Smiling Sun Network?

The provided data does not detail specific performance metrics or KPIs for the AUHC contract. Effective oversight would require USAID to establish clear, measurable objectives related to the introduction of innovative models, the creation of research-based health packages, and the testing of new delivery channels. Without these, assessing the contract's success in achieving its R&D and transformation goals is challenging.

How will USAID ensure that the Cost Plus Fixed Fee structure does not lead to excessive spending without commensurate R&D progress?

USAID must implement rigorous financial oversight and performance monitoring. This includes regular audits, detailed reviews of incurred costs against progress milestones, and clear justification for all expenditures. The fixed fee component requires careful negotiation and alignment with achievable R&D outcomes to prevent cost overruns and ensure value for taxpayer money.

What is the contingency plan if the experimental business and delivery models introduced by AUHC prove unsuccessful or unsustainable?

The R&D nature of the contract implies a degree of experimentation and potential failure. USAID should have a framework for adaptive management, allowing for adjustments to the models based on testing results. If core approaches fail, the contract should allow for pivoting to alternative strategies or terminating unsuccessful avenues, with clear criteria for such decisions to mitigate further financial loss.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

Product/Service Code: RESEARCH AND DEVELOPMENT › N – Health R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: BAA-388-17-000002

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1717 H ST NW STE 1, WASHINGTON, DC, 20006

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $83,704,694

Exercised Options: $83,704,694

Current Obligation: $83,704,694

Actual Outlays: $50,332,645

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $16,659,475

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NOT OBTAINED - WAIVED

Timeline