USAID's $25M HIV/AIDS capacity building contract awarded to Family Health International

Contract Overview

Contract Amount: $25,156,386 ($25.2M)

Contractor: Family Health International

Awarding Agency: Agency for International Development

Start Date: 2016-06-10

End Date: 2021-06-09

Contract Duration: 1,825 days

Daily Burn Rate: $13.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::OT::IGF THE PURPOSE OF THIS NEW PROCUREMENT IS TO STRENGTHEN HUMAN, ORGANIZATIONAL, AND SYSTEMS CAPACITY AND DELIVER INNOVATIVE ENHANCEMENTS IN HIV/AIDS SERVICES. THE OBJECTIVES OF THE PROGRAM ARE TO PROVIDE DIRECT SERVICE DELIVERY AND DEMAND DRIVEN TECHNICAL ASSISTANCE TO ACHIEVE TARGETS IN PRIORITY VIETNAM PROVINCES AND TRANSITION THOSE SERVICES WITHIN A 5-YEAR PERIOD.

Plain-Language Summary

Agency for International Development obligated $25.2 million to FAMILY HEALTH INTERNATIONAL for work described as: IGF::OT::IGF THE PURPOSE OF THIS NEW PROCUREMENT IS TO STRENGTHEN HUMAN, ORGANIZATIONAL, AND SYSTEMS CAPACITY AND DELIVER INNOVATIVE ENHANCEMENTS IN HIV/AIDS SERVICES. THE OBJECTIVES OF THE PROGRAM ARE TO PROVIDE DIRECT SERVICE DELIVERY AND DEMAND DRIVEN TECHNICAL ASSISTANCE TO … Key points: 1. Contract aims to bolster human, organizational, and systems capacity for HIV/AIDS services in Vietnam. 2. Focus on direct service delivery and technical assistance in priority provinces. 3. Program includes a 5-year transition plan for services. 4. Contract type is a Definitive Contract with Cost Plus Fixed Fee payment. 5. Awarded through full and open competition, indicating broad market engagement. 6. Duration of 1825 days (5 years) aligns with program objectives. 7. The 'All Other Professional, Scientific, and Technical Services' NAICS code suggests a broad scope of work.

Value Assessment

Rating: fair

The contract value of $25.16 million over five years for HIV/AIDS services in Vietnam appears reasonable given the scope. However, without specific benchmarks for similar international development contracts in this sector and region, a precise value-for-money assessment is challenging. The Cost Plus Fixed Fee structure allows for cost reimbursement plus a negotiated fee, which can incentivize efficiency but also carries risks of cost overruns if not closely monitored. Further analysis would require comparing the per-province or per-beneficiary cost against similar USAID or other international donor programs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting that multiple interested parties had the opportunity to bid. With three bidders identified, the competition level appears moderate. This approach generally promotes price discovery and allows the agency to select the most capable and cost-effective offeror. The presence of multiple bidders indicates a healthy market for these types of services.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to more competitive pricing and a wider selection of qualified contractors, maximizing the value of federal dollars.

Public Impact

Beneficiaries include individuals affected by HIV/AIDS in Vietnam, particularly in priority provinces. Services delivered encompass direct HIV/AIDS care, technical assistance, and capacity building for local organizations. Geographic impact is focused on specific priority provinces within Vietnam. Workforce implications include potential employment for local healthcare professionals and support staff involved in service delivery and program management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Fixed Fee contracts if not managed diligently.
Transitioning services within a 5-year period may present logistical and sustainability challenges.
Effectiveness of technical assistance and capacity building is dependent on contractor expertise and local partner engagement.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
Clear objectives for strengthening capacity and delivering services provide a defined scope.
The 5-year duration allows for sustained program implementation and impact.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically addressing public health and international development. The market for such services is driven by government funding for global health initiatives. Comparable spending benchmarks would involve analyzing other USAID or global health security contracts focused on disease prevention and treatment programs in developing nations. The size of this contract is significant within its niche, reflecting the scale of HIV/AIDS challenges in the region.

Small Business Impact

The provided data does not indicate any specific small business set-asides or subcontracting requirements for this contract. As it was awarded through full and open competition, it's possible that small businesses could have participated as prime contractors or subcontractors. Further investigation into the subcontracting plan, if available, would be necessary to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight mechanisms would typically involve regular reporting requirements from the contractor to USAID, performance reviews, and potentially site visits by agency officials. Accountability measures are embedded in the contract terms, including performance standards and payment schedules tied to deliverables. Transparency is generally maintained through contract award databases and public reporting, though specific program details might be sensitive. Inspector General jurisdiction would apply to ensure the proper use of federal funds.

Related Government Programs

Global Health Security Agenda
PEPFAR (President's Emergency Plan for AIDS Relief)
USAID Global Health Programs
International HIV/AIDS Prevention and Treatment Programs

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage potential cost overruns.
Transitioning services within a 5-year period may be ambitious and carries inherent risks.
Effectiveness is contingent on the contractor's ability to build sustainable local capacity.
Geographic focus on specific provinces may limit broader impact if not strategically managed.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $25.2 million to FAMILY HEALTH INTERNATIONAL. IGF::OT::IGF THE PURPOSE OF THIS NEW PROCUREMENT IS TO STRENGTHEN HUMAN, ORGANIZATIONAL, AND SYSTEMS CAPACITY AND DELIVER INNOVATIVE ENHANCEMENTS IN HIV/AIDS SERVICES. THE OBJECTIVES OF THE PROGRAM ARE TO PROVIDE DIRECT SERVICE DELIVERY AND DEMAND DRIVEN TECHNICAL ASSISTANCE TO ACHIEVE TARGETS IN PRIORITY VIETNAM PROVINCES AND TRANSITION THOSE SERVICES WITHIN A 5-YEAR PERIOD.

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 $25.2 million.

What is the period of performance?

Start: 2016-06-10. End: 2021-06-09.

What is the track record of Family Health International in managing large-scale international health development contracts, particularly in HIV/AIDS programs?

Family Health International (FHI360, which Family Health International merged into) has a long and extensive history of managing complex international health and development programs, including significant work in HIV/AIDS prevention, treatment, and care. They have been a major implementing partner for USAID and other global health donors for decades. Their experience spans direct service delivery, capacity building, research, and policy advocacy across numerous countries. While specific performance metrics for this particular contract are not detailed here, FHI360's general track record suggests a high level of expertise and established operational capacity for such initiatives. However, a deeper dive into past performance reviews, audit findings, and client feedback related to similar contracts would provide a more granular assessment of their performance in managing large, multi-year projects.

How does the cost structure (Cost Plus Fixed Fee) compare to other HIV/AIDS service delivery contracts managed by USAID?

The Cost Plus Fixed Fee (CPFF) contract type is common in international development and research where the scope of work may evolve or involve significant uncertainties, making fixed-price contracts less suitable. For HIV/AIDS service delivery, CPFF allows the contractor to recover allowable costs plus a predetermined fixed fee, providing an incentive for cost control as the fee does not increase with costs. Compared to other USAID contracts, CPFF is frequently used for technical assistance, capacity building, and program implementation where direct costs can be variable. Fixed-price contracts might be used for more standardized procurements like commodity supply, while other cost-reimbursement types like Cost Plus Incentive Fee (CPIF) could be used if specific performance targets are paramount and measurable. The appropriateness of CPFF hinges on USAID's ability to define clear objectives and monitor costs effectively.

What are the key performance indicators (KPIs) used to measure the success of this HIV/AIDS capacity building program?

While the provided data does not explicitly list the Key Performance Indicators (KPIs) for this contract, typical KPIs for HIV/AIDS capacity building programs funded by USAID often include metrics related to: 1) Increased number of healthcare workers trained and retained; 2) Improved quality of HIV testing, counseling, and treatment services provided by local facilities; 3) Enhanced organizational capacity of local partners in program management, financial oversight, and M&E (Monitoring and Evaluation); 4) Increased uptake of HIV prevention services (e.g., PrEP, condom distribution); 5) Improved patient retention in care and adherence to antiretroviral therapy (ART); and 6) Successful transition of program management and services to local entities. The contract's objectives of strengthening capacity and delivering services directly imply that KPIs would focus on measurable improvements in these areas within the target provinces.

What is the historical spending trend for similar HIV/AIDS programs managed by USAID in Southeast Asia?

Historical spending trends for USAID's HIV/AIDS programs in Southeast Asia, particularly in countries like Vietnam, have been substantial, driven by initiatives like PEPFAR and broader global health security efforts. USAID consistently allocates significant resources to combatting HIV/AIDS, focusing on prevention, treatment, care, and support services. Spending patterns often reflect national HIV prevalence rates, government commitment, and the specific strategic priorities of the agency and host country. While exact figures fluctuate annually and by country, the overall trend has been a sustained commitment to these programs. Contracts for capacity building, technical assistance, and direct service delivery, similar to the one awarded to Family Health International, represent a significant portion of this spending, aimed at building local infrastructure and expertise for long-term sustainability.

What are the potential risks associated with transitioning HIV/AIDS services to local entities within a 5-year timeframe?

Transitioning HIV/AIDS services to local entities within a 5-year timeframe presents several potential risks. These include: 1) Insufficient capacity of local organizations to fully absorb the responsibilities, leading to service disruptions or quality degradation; 2) Financial sustainability challenges for local partners after external funding ceases, potentially requiring continued donor support or government allocation; 3) Political or institutional instability in the host country that could hinder the transition process; 4) Lack of adequate local human resources or specialized skills required for sustained service delivery; and 5) Potential for corruption or mismanagement within local entities if robust oversight mechanisms are not firmly in place. Successful transitions require careful planning, phased handover, continuous capacity building, and strong commitment from both the donor and the recipient entities.

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-440-16-000002

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: $25,957,927

Exercised Options: $25,957,927

Current Obligation: $25,156,386

Actual Outlays: $8,560,564

Subaward Activity

Number of Subawards: 67

Total Subaward Amount: $5,409,730

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline