USAID's $40.9M health systems strengthening contract with ABT Global LLC aimed to improve Zambian health outcomes

Contract Overview

Contract Amount: $40,908,681 ($40.9M)

Contractor: ABT Global LLC

Awarding Agency: Agency for International Development

Start Date: 2015-10-16

End Date: 2022-07-20

Contract Duration: 2,469 days

Daily Burn Rate: $16.6K/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 GOAL OF IS ACTIVITY IS TO IMPROVE HEALTH OUTCOMES FOR ZAMBIANS BY STRENGTHENING SYSTEMS THAT UNDERPIN THE DELIVERY OF HIGH QUALITY HEALTH SERVICES AND INCREASING THE UTILIZATION OF HIGH IMPACT HEALTH INTERVENTIONS AT DISTRICT AND COMMUNITY LEVEL. IN FURTHERANCE OF THIS GOAL, SHOTS HAS THE FOLLOWING OUTCOMES: 1. EFFECTIVE NATIONAL LEVEL HEALTH STEWARDSHIP; 2. IMPROVED CAPACITIES OF PROVINCIAL AND DISTRICT HEALTH TEAMS TO PERFORM PROGRAM MANAGEMENT FUNCTIONS; 3. INCREASED QUALITY AND AVAILABILITY OF PRIORITY HEALTH SERVICES AT THE COMMUNITY LEVEL IN TARGETED DISTRICTS; AND 4. INCREASED UTILIZATION OF KEY PUBLIC HEALTH INTERVENTIONS. AS A 5-YEAR PROJECT, SHOTS WILL WORK WITH THE GOVERNMENT OF ZAMBIA TO DEVELOP AND IMPLEMENT NATIONAL STRATEGIES AND PLANS THAT ADDRESS KEY SYSTEM CHALLENGES FACED BY THE HEALTH SECTOR. THE ACTIVITY WILL PROVIDE TECHNICAL ASSISTANCE TO THE MOH AND MCDMCH TO BUILD THE CAPACITY OF HEALTH MANAGERS AND PROFESSIONALS AT THE NATIONAL, PROVINCIAL, DISTRICT, AND FACILITY LEVELS TO PLAN, IMPLEMENT, MONITOR, AND EVALUATE HEALTH PROGRAMS. THE ACTIVITY WILL STRENGTHEN THE CAPACITY OF COMMUNITY STRUCTURES, SUCH AS NEIGHBORHOOD HEALTH COMMITTEES (NHCS), TO ENHANCE COMMUNITY-LEVEL PARTICIPATION IN THE HEALTH SECTOR. ADDITIONALLY, THIS ACTIVITY WILL ENGAGE THE PRIVATE SECTOR AS KEY STAKEHOLDERS IN THE HEALTH SECTOR TO PROMOTE PARTNERSHIP AND COLLABORATION. IN ADDITION TO SYSTEMS STRENGTHENING, THIS ACTIVITY WILL SUPPORT THE IMPLEMENTATION OF COMMUNITY-LEVEL NUTRITION INTERVENTIONS TO ADDRESS CHRONIC MALNUTRITION IN TARGETED DISTRICTS, AS WELL AS SAFE MOTHERHOOD INTERVENTIONS THAT SUPPORT THE SAVING MOTHERS, GIVING LIFE (SMGL) INITIATIVE AND ANY SUCCESSOR INITIATIVE WITH SIMILAR GOALS.

Plain-Language Summary

Agency for International Development obligated $40.9 million to ABT GLOBAL LLC for work described as: IGF::OT::IGF THE GOAL OF IS ACTIVITY IS TO IMPROVE HEALTH OUTCOMES FOR ZAMBIANS BY STRENGTHENING SYSTEMS THAT UNDERPIN THE DELIVERY OF HIGH QUALITY HEALTH SERVICES AND INCREASING THE UTILIZATION OF HIGH IMPACT HEALTH INTERVENTIONS AT DISTRICT AND COMMUNITY LEVEL. IN FURTHERANCE O… Key points: 1. Contract focused on improving health outcomes in Zambia through system strengthening and increased utilization of health interventions. 2. ABT Global LLC, a professional services firm, was awarded the contract. 3. The contract spanned nearly 7 years, indicating a long-term commitment to the program's goals. 4. The contract type was Cost Plus Fixed Fee, which allows for cost reimbursement plus a fixed fee for profit. 5. This contract falls under 'All Other Professional, Scientific, and Technical Services', a broad category. 6. The contract was awarded via full and open competition, suggesting a competitive bidding process.

Value Assessment

Rating: fair

The contract's total value of $40.9 million over nearly 7 years suggests a significant investment in health systems strengthening. Benchmarking this against similar USAID-funded health initiatives in Sub-Saharan Africa would be necessary for a precise value-for-money assessment. The Cost Plus Fixed Fee (CPFF) contract type can sometimes lead to higher costs if not managed tightly, as it reimburses the contractor for allowable costs plus a predetermined profit. Without detailed cost breakdowns and performance metrics, it's challenging to definitively assess if the pricing was optimal or if alternative, more cost-effective approaches could have been employed.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This process is designed to foster a competitive environment, theoretically leading to better pricing and service quality. The fact that there were 3 bids received suggests a reasonable level of interest in the opportunity. However, the specific details of the competition, such as the number of proposals evaluated and the evaluation criteria, are not provided, which limits a deeper analysis of its effectiveness in driving optimal value.

Taxpayer Impact: A full and open competition generally benefits taxpayers by encouraging a range of providers to compete, which can drive down costs and improve the quality of services delivered.

Public Impact

The primary beneficiaries are the citizens of Zambia, who are expected to experience improved health outcomes. The contract aims to strengthen health systems at national, provincial, and district levels. Services delivered include enhancing health stewardship, improving program management capacities, and increasing the availability and quality of community-level health services. The geographic impact is focused on targeted districts within Zambia. Workforce implications include strengthening the capacities of health teams and potentially supporting local health service providers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize cost overruns if not rigorously monitored.
The broad nature of 'All Other Professional, Scientific, and Technical Services' may indicate a lack of specificity in the contract's initial scope, potentially leading to scope creep.
Long contract durations (nearly 7 years) can sometimes lead to vendor lock-in and reduced flexibility to adapt to changing needs.
Limited information on specific performance metrics makes it difficult to assess the contractor's effectiveness beyond stated goals.

Positive Signals

The contract was awarded through full and open competition, suggesting a robust selection process.
The focus on strengthening health systems in Zambia addresses critical development needs.
The contract duration indicates a sustained commitment to achieving long-term health improvements.
The clear articulation of four key outcomes provides a framework for measuring progress.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically focusing on public health and international development. The market for such services is global, with numerous firms specializing in health systems strengthening, program management, and technical assistance for developing countries. USAID, as a major funder, often contracts with a mix of large, established international development firms and smaller, specialized organizations. Benchmarking this contract's value would require comparing it to similar health system strengthening projects funded by other international donors or government agencies in comparable regions.

Small Business Impact

There is no explicit indication from the provided data that this contract involved small business set-asides or significant subcontracting opportunities for small businesses. The primary contractor, ABT Global LLC, is a professional services firm. Further investigation into the subcontracting plan, if available, would be necessary to determine the extent of small business participation and its impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the purview of the U.S. Agency for International Development (USAID), likely through its Inspector General (IG) and program officers. USAID typically implements robust oversight mechanisms for its international development contracts, including regular performance reviews, financial audits, and site visits. Transparency is generally facilitated through public reporting on contract awards and project progress, though the depth of this reporting can vary. The IG's office is responsible for investigating fraud, waste, and abuse.

Related Government Programs

USAID Global Health Programs
PEPFAR (President's Emergency Plan for AIDS Relief)
Global Fund to Fight AIDS, Tuberculosis and Malaria
World Health Organization (WHO) initiatives

Risk Flags

Potential for cost overruns due to CPFF structure.
Difficulty in measuring and attributing specific health outcome improvements.
Sustainability of health system changes post-contract.
Geopolitical or economic instability in Zambia impacting program delivery.
Challenges in adapting to evolving health needs or technological advancements.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $40.9 million to ABT GLOBAL LLC. IGF::OT::IGF THE GOAL OF IS ACTIVITY IS TO IMPROVE HEALTH OUTCOMES FOR ZAMBIANS BY STRENGTHENING SYSTEMS THAT UNDERPIN THE DELIVERY OF HIGH QUALITY HEALTH SERVICES AND INCREASING THE UTILIZATION OF HIGH IMPACT HEALTH INTERVENTIONS AT DISTRICT AND COMMUNITY LEVEL. IN FURTHERANCE OF THIS GOAL, SHOTS HAS THE FOLLOWING OUTCOMES: 1. EFFECTIVE NATIONAL LEVEL HEALTH STEWARDSHIP; 2. IMPROVED CAPACITIES OF PROVINCIAL AND DISTRICT HEALTH TEAMS TO PERFORM PROGRAM MANAGEMENT FUNCTIONS; 3. INCREASED QUALITY

Who is the contractor on this award?

The obligated recipient is ABT GLOBAL 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 $40.9 million.

What is the period of performance?

Start: 2015-10-16. End: 2022-07-20.

What was the specific performance of ABT Global LLC on this contract, and were the stated health outcome goals met?

The provided data does not include specific performance metrics or an evaluation of whether the stated health outcome goals for the SHOTS project in Zambia were met. The contract aimed for four key outcomes: effective national level health stewardship; improved capacities of provincial and district health teams; increased quality and availability of priority health services at the community level; and increased utilization of key public health interventions. A comprehensive assessment would require reviewing USAID's project reports, final evaluations, and any publicly available performance data related to the SHOTS initiative. Without this, it is impossible to definitively state the contractor's performance against the intended objectives.

How does the $40.9 million contract value compare to similar USAID health systems strengthening projects in Sub-Saharan Africa?

The $40.9 million contract value for this 5-year (approximately 2469 days) health systems strengthening project in Zambia is substantial, reflecting the complexity and scope of such initiatives. To benchmark effectively, one would need to compare it against similar USAID-funded projects in comparable countries within Sub-Saharan Africa. Factors such as the specific health areas targeted (e.g., HIV/AIDS, maternal health, general health systems), the duration of the project, the number of implementing partners, and the specific activities undertaken would influence the cost. Generally, large-scale health system strengthening projects can range from tens to hundreds of millions of dollars over their lifespan, depending on these variables. A detailed comparative analysis would involve examining USAID's contract database and project portfolios for similar initiatives.

What were the primary risks identified for this contract, and how were they mitigated?

While specific risk mitigation strategies are not detailed in the provided data, common risks associated with large international development contracts like this one include political instability in the host country, corruption, logistical challenges in remote areas, potential for fraud or misuse of funds, and the difficulty of achieving sustainable health system changes. For this particular contract, risks could also stem from the Cost Plus Fixed Fee (CPFF) structure, which requires careful financial oversight to prevent cost overruns. Mitigation efforts by USAID would typically involve rigorous monitoring and evaluation frameworks, regular financial audits, strong local partnerships, clear performance indicators, and contingency planning for unforeseen events. The Inspector General's office also plays a role in identifying and addressing financial risks.

What is the historical spending pattern for 'All Other Professional, Scientific, and Technical Services' by USAID, and how does this contract fit within that trend?

The North American Industry Classification System (NAICS) code 541990, 'All Other Professional, Scientific, and Technical Services,' is a broad category encompassing a wide array of services. USAID, like many government agencies, utilizes this category for contracts that do not fit neatly into more specific classifications. Historical spending within this category by USAID would likely show significant variation year-to-year and across different program areas, including health, democracy and governance, economic development, and education. This $40.9 million contract represents a significant investment within this category, specifically directed towards health systems strengthening in Zambia. To understand its place in the trend, one would need to analyze USAID's overall spending on NAICS 541990 over time and identify the proportion allocated to health-focused initiatives and international development.

What was the rationale for choosing a Cost Plus Fixed Fee (CPFF) contract type for this health systems strengthening initiative?

The Cost Plus Fixed Fee (CPFF) contract type is often chosen for complex projects where the scope of work may evolve or where precise cost estimation is difficult at the outset, such as in long-term international development initiatives. For health systems strengthening in Zambia, the CPFF structure likely allowed USAID to reimburse ABT Global LLC for its allowable costs incurred while performing the services, plus a fixed fee representing the contractor's profit. This structure can be advantageous when the nature of the work is uncertain or requires flexibility to adapt to changing conditions on the ground. However, it necessitates robust oversight from the contracting agency to ensure that costs are reasonable and that the fixed fee provides adequate incentive for efficient performance without encouraging unnecessary expenditures.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: SOL-611-15-000005

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 4550 MONTGOMERY AVE STE 800N, BETHESDA, MD, 20814

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: $41,363,422

Exercised Options: $41,363,422

Current Obligation: $40,908,681

Actual Outlays: $1,779,055

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: AIDOAAI1400032

IDV Type: IDC

Timeline