USAID's $45.7M contract for HIV/AIDS technical assistance in Ethiopia awarded to Management Sciences for Health, Inc

Contract Overview

Contract Amount: $45,734,586 ($45.7M)

Contractor: Management Sciences for Health, Inc.

Awarding Agency: Agency for International Development

Start Date: 2007-06-15

End Date: 2011-09-14

Contract Duration: 1,552 days

Daily Burn Rate: $29.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: CONTRACTOR SHALL PROVIDE TECHNICAL ASSISTANCE IN SUPPORT OF HIV/AIDS AT HEALTH CENTERS AND COMMUNITIES THROUGHOUT ETHIOPIA.

Plain-Language Summary

Agency for International Development obligated $45.7 million to MANAGEMENT SCIENCES FOR HEALTH, INC. for work described as: CONTRACTOR SHALL PROVIDE TECHNICAL ASSISTANCE IN SUPPORT OF HIV/AIDS AT HEALTH CENTERS AND COMMUNITIES THROUGHOUT ETHIOPIA. Key points: 1. Contract aims to bolster HIV/AIDS support services across Ethiopian health centers and communities. 2. The award represents a significant investment in global health security and disease prevention. 3. Performance period spans over four years, indicating a sustained commitment to the program. 4. The contract type, Cost Plus Fixed Fee, allows for flexibility while managing costs. 5. This initiative aligns with broader U.S. foreign policy objectives in public health. 6. The contractor has a history of managing complex international development projects.

Value Assessment

Rating: good

The contract value of $45.7 million over approximately four years suggests a substantial investment in technical assistance for HIV/AIDS programs. Benchmarking this against similar USAID-funded global health initiatives indicates a moderate to high value, depending on the scope and specific deliverables. The Cost Plus Fixed Fee (CPFF) contract type implies that costs are reimbursed, plus a fixed fee for profit, which can be efficient for complex, evolving projects but requires diligent oversight to ensure cost control. Without specific per-unit cost data for services rendered, a direct value-for-money assessment is challenging, but the overall scale suggests a significant program.

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 bidders had the opportunity to submit proposals. This competitive process is designed to foster price discovery and ensure the government receives the best value. The presence of seven bidders, as indicated by the 'no' field, suggests a healthy level of interest and competition for this significant international development contract. This broad competition likely contributed to a more competitive pricing structure.

Taxpayer Impact: A full and open competition ensures that taxpayer dollars are used efficiently by driving down costs through market forces. It provides assurance that the selected contractor is the most capable and cost-effective option available.

Public Impact

Ethiopian communities and health centers will receive enhanced technical assistance for HIV/AIDS prevention, treatment, and care. The program aims to improve health outcomes and reduce the burden of HIV/AIDS in Ethiopia. Local healthcare workers and public health professionals are expected to benefit from capacity building and training. The contract supports the U.S. government's commitment to global health security and combating infectious diseases. Geographic impact will be widespread across various regions within Ethiopia where health centers operate. The initiative may indirectly support local economies through employment opportunities and procurement.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in CPFF contracts requires robust financial oversight.
Ensuring equitable distribution of services across diverse regions of Ethiopia can be challenging.
Measuring the long-term impact and sustainability of technical assistance requires rigorous monitoring.
Coordination with local government health ministries and other NGOs is critical for success.

Positive Signals

Contractor's experience in managing large-scale international health programs is a positive signal.
Full and open competition suggests a strong likelihood of competitive pricing and quality.
The defined scope of work for technical assistance provides clear objectives.
Long contract duration allows for sustained impact and relationship building.

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 driven by government funding for global health initiatives, disease control, and humanitarian aid. Comparable spending benchmarks would involve other USAID or similar international donor-funded projects in health sector development, particularly in sub-Saharan Africa. The size of this contract ($45.7M) positions it as a significant award within this niche, requiring specialized expertise in public health program management and implementation.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. Given the nature and scale of the work, it is likely that the prime contractor, Management Sciences for Health, Inc., will manage the program. However, there may be opportunities for small businesses to participate as subcontractors, particularly for specialized local services or goods procurement within Ethiopia. The extent of subcontracting to small businesses would depend on the prime contractor's strategy and the specific requirements of the project.

Oversight & Accountability

Oversight for this contract would primarily be conducted by the U.S. Agency for International Development (USAID), likely through its contracting officers and program monitors. USAID has established procedures for monitoring contractor performance, financial expenditures, and compliance with contract terms. Transparency is typically maintained through regular reporting requirements from the contractor and public contract databases. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse related to the contract.

Related Government Programs

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

Risk Flags

Potential for scope creep in technical assistance contracts.
Dependency on local infrastructure and workforce capacity.
Challenges in measuring direct impact of technical assistance.
Geopolitical risks in the region affecting program delivery.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $45.7 million to MANAGEMENT SCIENCES FOR HEALTH, INC.. CONTRACTOR SHALL PROVIDE TECHNICAL ASSISTANCE IN SUPPORT OF HIV/AIDS AT HEALTH CENTERS AND COMMUNITIES THROUGHOUT ETHIOPIA.

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 $45.7 million.

What is the period of performance?

Start: 2007-06-15. End: 2011-09-14.

What is the track record of Management Sciences for Health, Inc. in managing similar international health contracts?

Management Sciences for Health, Inc. (MSH) has a long-standing reputation and extensive track record in managing complex global health programs, including those focused on HIV/AIDS, infectious diseases, and health systems strengthening. They have successfully implemented projects funded by USAID, the Centers for Disease Control and Prevention (CDC), the Global Fund to Fight AIDS, Tuberculosis and Malaria, and other major international donors across numerous countries. Their experience often involves providing technical assistance, capacity building for local health workforces, improving supply chain management for medicines, and supporting national health strategies. MSH's history suggests they are well-equipped to handle the scope and challenges of a large-scale contract like the one in Ethiopia, having navigated diverse political, economic, and cultural landscapes.

How does the cost of this contract compare to similar technical assistance programs for HIV/AIDS in other countries?

Comparing the $45.7 million cost for this four-year contract requires context regarding the specific scope of work, the number of beneficiaries, the intensity of technical assistance, and the operational environment in Ethiopia. USAID and other global health donors fund a wide range of HIV/AIDS programs, with costs varying significantly. For instance, large-scale national program support contracts can range from tens to hundreds of millions of dollars over several years. Given that this contract focuses on technical assistance across health centers and communities throughout Ethiopia, its value appears aligned with substantial, multi-year public health initiatives. A precise comparison would necessitate benchmarking against contracts with similar objectives, geographic reach, and duration, considering factors like local cost of living and operational complexities.

What are the primary risks associated with implementing a large-scale technical assistance program for HIV/AIDS in Ethiopia?

Key risks for this HIV/AIDS technical assistance program in Ethiopia include: 1) Political and Governance Instability: Changes in government policy or regional conflicts could disrupt program implementation and access. 2) Health System Weaknesses: Existing limitations in Ethiopia's health infrastructure, workforce shortages, and supply chain issues can hinder effective service delivery and sustainability. 3) Cultural and Social Barriers: Overcoming stigma associated with HIV/AIDS and ensuring community acceptance and engagement requires culturally sensitive approaches. 4) Funding Fluctuations: Reliance on external donor funding (USAID) means potential budget cuts or shifts in priorities could impact program continuity. 5) Monitoring and Evaluation Challenges: Accurately measuring the impact of technical assistance across diverse settings and ensuring data integrity requires robust M&E systems.

What is the expected effectiveness of this contract in improving HIV/AIDS outcomes in Ethiopia?

The effectiveness of this contract hinges on the successful delivery of technical assistance to strengthen Ethiopia's capacity to combat HIV/AIDS. Expected outcomes include improved prevention strategies, enhanced access to testing and treatment services, better patient adherence to antiretroviral therapy (ART), and strengthened health system infrastructure for managing HIV/AIDS programs. By providing expertise and support to local health centers and communities, the program aims to increase the reach and quality of HIV/AIDS services, ultimately contributing to reduced transmission rates, improved quality of life for those living with HIV, and a decreased burden of the epidemic. The contractor's experience and the competitive nature of the award suggest a strong potential for effective implementation, provided ongoing monitoring and adaptation to local needs.

How has USAID's spending on HIV/AIDS programs in Ethiopia evolved over the past decade?

USAID has been a significant contributor to Ethiopia's HIV/AIDS response for many years, primarily through initiatives like PEPFAR. While specific year-over-year spending figures fluctuate based on program cycles, funding priorities, and the evolving epidemic landscape, USAID's commitment has remained substantial. Historically, spending has focused on prevention (including voluntary medical male circumcision, PMTCT), treatment (ART access and adherence), and care for those affected by HIV/AIDS. Over the past decade, there has been a gradual shift towards greater emphasis on sustainability, health system strengthening, and integration of HIV services with other health programs, reflecting Ethiopia's progress in managing the epidemic. This contract represents a continuation of that support, focusing on technical assistance to bolster these efforts.

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

Offers Received: 7

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 784 MEMORIAL DR, CAMBRIDGE, MA, 02139

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

Financial Breakdown

Contract Ceiling: $289,661,123

Exercised Options: $181,249,259

Current Obligation: $45,734,586

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline