USAID's $25M Haiti Health Services Contract Awarded to Management Sciences for Health, Inc
Contract Overview
Contract Amount: $24,982,536 ($25.0M)
Contractor: Management Sciences for Health, Inc.
Awarding Agency: Agency for International Development
Start Date: 2012-08-01
End Date: 2014-01-31
Contract Duration: 548 days
Daily Burn Rate: $45.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: IGF::CL::IGF - "USG SUPPORT OF HEALTH SERVICE DELIVERY IN HAITI II PROJECT FOR A ONE YEAR (ESTIMATED), COST PLUS FIXED FEE CONTRACT TO BE AWARDED FOR THESE SERVICES
Plain-Language Summary
Agency for International Development obligated $25.0 million to MANAGEMENT SCIENCES FOR HEALTH, INC. for work described as: IGF::CL::IGF - "USG SUPPORT OF HEALTH SERVICE DELIVERY IN HAITI II PROJECT FOR A ONE YEAR (ESTIMATED), COST PLUS FIXED FEE CONTRACT TO BE AWARDED FOR THESE SERVICES Key points: 1. Contract awarded on a cost-plus-fixed-fee basis, which can lead to cost overruns if not carefully managed. 2. The contract was not competed, raising questions about potential price efficiencies and market-driven value. 3. The duration of 548 days suggests a significant, ongoing need for health service delivery support. 4. The estimated value of $24,982,536 indicates a substantial investment in public health infrastructure. 5. The contract falls under the 'Administration of Public Health Programs' NAICS code, aligning with its stated purpose.
Value Assessment
Rating: fair
The contract's value of approximately $25 million over 548 days suggests a significant investment. Without comparable contract data or detailed cost breakdowns, a precise value-for-money assessment is challenging. However, the cost-plus-fixed-fee structure necessitates close monitoring to ensure costs remain reasonable and do not escalate beyond initial estimates. Benchmarking against similar health service delivery contracts in complex environments would be necessary for a more definitive valuation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning it was not open to competition from other potential contractors. This approach is typically used when a specific contractor possesses unique capabilities or when urgency dictates a rapid award. The lack of competition means that the government did not benefit from the price discovery mechanisms that typically occur in a competitive bidding process, potentially leading to a higher price than might have been achieved otherwise.
Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding, as the government did not leverage market forces to secure the most cost-effective solution.
Public Impact
Beneficiaries include the population of Haiti requiring health services. Services delivered are related to the administration of public health programs. Geographic impact is focused on Haiti. Workforce implications may involve local Haitian healthcare professionals and support staff, as well as potentially U.S.-based personnel.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits price competition.
- Cost-plus-fixed-fee contracts carry inherent risk of cost escalation.
- Lack of transparency in the justification for sole-source award.
Positive Signals
- Focus on critical health service delivery in a challenging environment.
- Potential for established expertise by Management Sciences for Health, Inc. in similar contexts.
Sector Analysis
The contract falls within the broader 'Professional, Scientific, and Technical Services' sector, specifically focusing on public health program administration. This area often involves significant government spending, particularly in international development and humanitarian aid. The market for such services includes numerous non-profit organizations and private companies specializing in global health. Benchmarking would involve comparing this contract's value and scope to other USAID or similar agency contracts supporting health initiatives in developing nations.
Small Business Impact
The contract details do not indicate any specific small business set-aside provisions or subcontracting requirements. As a sole-source award, the primary contractor, Management Sciences for Health, Inc., was selected directly. The impact on the small business ecosystem is likely minimal unless the prime contractor voluntarily engages small businesses for subcontracting opportunities, which is not explicitly stated in the provided data.
Oversight & Accountability
Oversight for this contract would primarily fall under the Agency for International Development (USAID), likely through its Inspector General's office and relevant program offices. Accountability measures would include performance monitoring, financial audits, and adherence to the terms of the cost-plus-fixed-fee agreement. Transparency is dependent on USAID's public reporting practices regarding sole-source justifications and contract performance.
Related Government Programs
- USAID Global Health Programs
- International Health Assistance
- Public Health Infrastructure Support
- Humanitarian Aid Contracts
Risk Flags
- Sole-source award raises concerns about competition and potential cost efficiencies.
- Cost-plus-fixed-fee contract type increases the risk of cost overruns.
- Lack of detailed performance metrics in the provided data makes outcome assessment difficult.
Tags
health-services, public-health, haiti, usaid, sole-source, cost-plus-fixed-fee, international-development, administration-of-public-health-programs, management-sciences-for-health-inc, non-competed
Frequently Asked Questions
What is this federal contract paying for?
Agency for International Development awarded $25.0 million to MANAGEMENT SCIENCES FOR HEALTH, INC.. IGF::CL::IGF - "USG SUPPORT OF HEALTH SERVICE DELIVERY IN HAITI II PROJECT FOR A ONE YEAR (ESTIMATED), COST PLUS FIXED FEE CONTRACT TO BE AWARDED FOR THESE SERVICES
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 $25.0 million.
What is the period of performance?
Start: 2012-08-01. End: 2014-01-31.
What is the specific justification for awarding this contract on a sole-source basis to Management Sciences for Health, Inc.?
The provided data does not include the specific justification for the sole-source award. Typically, sole-source contracts are awarded when only one responsible source is available or capable of meeting the government's needs. This could be due to unique qualifications, specialized expertise, proprietary technology, or urgent and compelling circumstances. Without further documentation from USAID, the precise rationale remains unknown. This lack of transparency can raise concerns about whether the government fully explored competitive options or obtained the best possible value for taxpayer funds.
How does the cost-plus-fixed-fee (CPFF) structure compare to other contract types for similar international health service delivery projects?
Cost-plus-fixed-fee (CPFF) contracts are common for complex projects where the scope of work is not precisely defined at the outset, or when the contractor needs to incur significant costs that are difficult to estimate accurately beforehand. In international health service delivery, CPFF can be advantageous for adapting to evolving needs on the ground. However, it carries a higher risk of cost overruns compared to fixed-price contracts, as the government bears the cost risk. Other contract types like Firm-Fixed-Price (FFP) offer greater cost certainty but may not be suitable if the scope is highly variable. Performance-Based Contracts (PBCs) tie payment to achieving specific outcomes, which can drive efficiency but require robust performance metrics.
What is the track record of Management Sciences for Health, Inc. in executing similar USAID-funded health programs?
Management Sciences for Health, Inc. (MSH) is a well-established non-profit organization with extensive experience in global health. They have a long history of working with USAID and other international donors on a wide range of health programs, including disease prevention, health systems strengthening, and service delivery in numerous countries. Their track record generally includes managing large-scale projects, implementing complex interventions, and working in challenging environments. Specific performance details for this particular contract would require reviewing USAID's contract performance reports and any associated Inspector General audits.
What are the potential risks associated with implementing public health programs in Haiti, and how might this contract address them?
Implementing public health programs in Haiti presents significant risks, including political instability, security concerns, limited infrastructure, logistical challenges, and the potential for natural disasters. This contract, by providing support for health service delivery, aims to mitigate some of these risks by bolstering the capacity of local health systems and potentially providing essential resources and expertise. The cost-plus-fixed-fee structure might allow for flexibility in responding to unforeseen challenges. However, effective risk management by MSH and close oversight by USAID are crucial to ensure program continuity and success despite the volatile operating environment.
How does USAID typically benchmark the value of health service delivery contracts in developing countries?
USAID typically benchmarks the value of health service delivery contracts by comparing them to similar contracts awarded for projects in comparable countries or regions, considering factors like population size, disease burden, and the complexity of the health system. They may also analyze cost per beneficiary, cost per service delivered, or cost per unit of outcome achieved. Internal historical data on similar projects, as well as industry benchmarks from other international development organizations (like WHO, UNICEF, or other bilateral donors), are often consulted. The justification for a sole-source award, if provided, would also need to demonstrate that the negotiated price is fair and reasonable given the circumstances.
Industry Classification
NAICS: Public Administration › Administration of Human Resource Programs › Administration of Public Health Programs
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 784 MEMORIAL DR, CAMBRIDGE, MA, 90
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: $24,982,536
Exercised Options: $24,982,536
Current Obligation: $24,982,536
Contract Characteristics
Cost or Pricing Data: YES
Timeline
Start Date: 2012-08-01
Current End Date: 2014-01-31
Potential End Date: 2014-01-31 00:00:00
Last Modified: 2014-01-31
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