USAID's $18.5M PEPFAR OVC program in Nigeria saw strong competition, with Management Sciences for Health Inc. awarded the contract
Contract Overview
Contract Amount: $18,552,004 ($18.6M)
Contractor: Management Sciences for Health, Inc.
Awarding Agency: Agency for International Development
Start Date: 2009-10-14
End Date: 2014-10-06
Contract Duration: 1,818 days
Daily Burn Rate: $10.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: TECHNICAL ASSISTANCE SUPPORT FOR THE IMPLEMENTATION OF PEPFAR OVC PROGRAN IN NIGERIATAS::72 1031::TAS
Plain-Language Summary
Agency for International Development obligated $18.6 million to MANAGEMENT SCIENCES FOR HEALTH, INC. for work described as: TECHNICAL ASSISTANCE SUPPORT FOR THE IMPLEMENTATION OF PEPFAR OVC PROGRAN IN NIGERIATAS::72 1031::TAS Key points: 1. The contract aimed to provide technical assistance for implementing PEPFAR's Orphans and Vulnerable Children program in Nigeria. 2. Awarded through full and open competition, indicating a robust bidding process. 3. The duration of the contract was approximately 5 years, suggesting a significant, long-term commitment. 4. The contract type was Cost Plus Fixed Fee, which can incentivize cost control while allowing for flexibility. 5. The primary service falls under Administrative Management and General Management Consulting Services. 6. The contract was a Delivery Order under a larger indefinite-delivery/indefinite-quantity (IDIQ) contract, common for ongoing agency needs.
Value Assessment
Rating: good
Benchmarking the value of this specific contract is challenging without access to the full IDIQ details and the specific fixed fee negotiated. However, the contract value of $18.5 million over nearly 5 years for technical assistance in a critical health program like PEPFAR OVC suggests a reasonable investment for the intended impact. The Cost Plus Fixed Fee structure, while potentially leading to higher costs than fixed-price contracts, allows for adaptation to evolving program needs and complexities inherent in international development. Further analysis would require comparing the negotiated fixed fee and indirect cost rates against industry standards for similar management consulting services in the development sector.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The presence of 3 bidders (indicated by 'no': 3) suggests a healthy level of competition for this significant USAID contract. This competitive environment is generally favorable for price discovery and ensuring the government receives competitive proposals.
Taxpayer Impact: Taxpayers benefit from full and open competition as it typically drives down costs and encourages innovation among contractors, leading to better value for public funds.
Public Impact
The primary beneficiaries are orphaned and vulnerable children in Nigeria, who receive support through the PEPFAR OVC program. The contract delivered technical assistance to strengthen the implementation of these vital programs. The geographic impact is focused on Nigeria, a key country for PEPFAR initiatives. The contract likely supported local Nigerian staff and organizations involved in program delivery, contributing to workforce development in the health sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts can sometimes lead to higher overall costs if not managed diligently, as contractor profit is fixed regardless of cost savings.
- The long duration of the contract (nearly 5 years) necessitates ongoing monitoring to ensure continued performance and value.
- Reliance on a single contractor for technical assistance over an extended period could lead to knowledge silos or reduced agility if not actively managed.
Positive Signals
- Awarded through full and open competition, indicating a competitive process that likely yielded a fair price.
- The contract's focus on PEPFAR OVC programs addresses a critical humanitarian need, aligning with U.S. foreign policy objectives.
- The Cost Plus Fixed Fee structure allows for flexibility to adapt to the complex and evolving needs of OVC programs in Nigeria.
- The contractor, Management Sciences for Health, Inc., is a known entity in global health and development, suggesting relevant expertise.
Sector Analysis
This contract falls within the Management and General Management Consulting Services sector, specifically applied to international development and public health. The global health consulting market is substantial, driven by government agencies like USAID, the CDC, and international organizations. Contracts supporting large-scale initiatives like PEPFAR are significant within this niche, often involving complex logistical, programmatic, and technical assistance components. Benchmarks for similar technical assistance contracts in developing countries would focus on the scope of services, geographic reach, and duration.
Small Business Impact
The data indicates this contract was not specifically set aside for small businesses ('sb': false). While Management Sciences for Health, Inc. is a large organization, there is no explicit information on subcontracting plans for small businesses within this specific delivery order. Analysis of subcontracting would require reviewing the contract's terms and conditions or subsequent reporting, which is not provided here. The absence of a small business set-aside does not preclude subcontracting opportunities, but it means they were not mandated from the outset.
Oversight & Accountability
Oversight for this contract would primarily reside with the Agency for International Development (USAID), likely through its contracting officers and program officials. As a Delivery Order under an IDIQ, the oversight would focus on the performance against the specific tasks outlined in the order and adherence to the Cost Plus Fixed Fee terms. Transparency is generally facilitated through contract award databases like FPDS.gov. Inspector General jurisdiction would apply if any concerns regarding fraud, waste, or abuse arise during the contract's performance.
Related Government Programs
- PEPFAR (President's Emergency Plan for AIDS Relief)
- USAID Global Health Programs
- Orphans and Vulnerable Children (OVC) Programs
- International Health Technical Assistance
- Management and Consulting Services Contracts
Risk Flags
- Contract duration exceeds 4 years
- Cost-reimbursement contract type (CPFF)
- International development program
- High-value contract ($10M+)
Tags
usaid, pepfar, nigeria, health, children, technical-assistance, management-consulting, cost-plus-fixed-fee, full-and-open-competition, delivery-order, foreign-assistance, global-health
Frequently Asked Questions
What is this federal contract paying for?
Agency for International Development awarded $18.6 million to MANAGEMENT SCIENCES FOR HEALTH, INC.. TECHNICAL ASSISTANCE SUPPORT FOR THE IMPLEMENTATION OF PEPFAR OVC PROGRAN IN NIGERIATAS::72 1031::TAS
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 $18.6 million.
What is the period of performance?
Start: 2009-10-14. End: 2014-10-06.
What is the track record of Management Sciences for Health, Inc. with USAID, particularly on PEPFAR-related contracts?
Management Sciences for Health, Inc. (MSH) has a long-standing relationship with USAID, frequently securing contracts for global health initiatives, including those funded by PEPFAR. MSH is a well-established non-profit organization with extensive experience in health systems strengthening, disease prevention and treatment, and program implementation in numerous countries. Their portfolio with USAID often includes technical assistance, capacity building, and direct program support. Reviewing historical contract awards and performance evaluations for MSH with USAID would provide a comprehensive understanding of their track record, including their success in managing complex projects, meeting performance targets, and adhering to financial regulations. Specific to PEPFAR OVC programs, MSH has been a significant player, contributing to the goals of saving lives and improving health outcomes for vulnerable populations.
How does the $18.5 million contract value compare to similar technical assistance contracts for PEPFAR OVC programs in Nigeria or comparable countries?
Comparing the $18.5 million value requires context regarding the contract's duration, scope, and specific deliverables. This contract spanned nearly five years, averaging approximately $3.7 million per year. Technical assistance for large-scale programs like PEPFAR OVC in a country the size of Nigeria is inherently resource-intensive. Similar contracts in comparable large-population, high-burden countries often range from several million to tens of millions of dollars annually, depending on the complexity of the health system, the scale of the OVC population, and the specific technical assistance required (e.g., capacity building, policy development, service delivery strengthening). Without detailed scope-of-work comparisons, a precise benchmark is difficult, but the value appears within a plausible range for a significant, multi-year PEPFAR technical assistance effort.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for technical assistance in international development?
The primary risk with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost overruns, as the contractor is reimbursed for all allowable costs plus a predetermined fixed fee. While the fixed fee incentivizes efficiency to some extent, it does not provide the same cost-saving incentive as a fixed-price contract. For technical assistance in international development, risks include the difficulty in precisely defining all future costs due to the unpredictable nature of field operations, political instability, or evolving program needs. Contractors may also face challenges in accurately estimating indirect costs. USAID's robust oversight, including regular audits and cost reviews, is crucial to mitigate these risks and ensure that costs are reasonable and allocable to the contract objectives. The agency must diligently monitor expenditures and contractor performance to prevent unnecessary spending.
How effective are technical assistance contracts like this in achieving the broader goals of PEPFAR OVC programs?
Technical assistance contracts are critical enablers for the success of large-scale public health programs like PEPFAR OVC. They provide specialized expertise, capacity building for local partners, and support for program management and implementation that government agencies or local organizations may not possess internally. The effectiveness hinges on the quality of the technical assistance provided, the contractor's ability to adapt to local contexts, and the degree of collaboration with USAID and local stakeholders. When well-executed, such contracts can significantly improve program efficiency, reach, and impact by strengthening local health systems, enhancing service delivery to children and families, and ensuring sustainable program outcomes. The data indicates this contract was awarded through full and open competition, suggesting a focus on selecting a capable provider.
What has been the historical spending trend for PEPFAR OVC programs in Nigeria managed by USAID?
Historical spending on PEPFAR OVC programs in Nigeria managed by USAID has been substantial, reflecting Nigeria's significant burden of HIV/AIDS and the large population of vulnerable children. PEPFAR funding globally has been a cornerstone of U.S. foreign assistance for health. In Nigeria, specific allocations for OVC programs have varied year to year based on evolving needs, program priorities, and overall PEPFAR budget allocations. USAID, as a primary implementing agency, directs significant resources towards these programs through various mechanisms, including contracts like the one awarded to Management Sciences for Health. Analyzing USAID's budget documents and contract databases over time would reveal trends in spending, showing fluctuations and sustained investment in OVC support, influenced by factors such as disease prevalence, program scale-up, and shifts in strategic focus within the broader PEPFAR framework.
What is the significance of the NAICS code 541611 (Administrative Management and General Management Consulting Services) in the context of this contract?
The NAICS code 541611 signifies that the primary service procured under this contract involves providing expertise in administrative and general management consulting. For a PEPFAR OVC program, this translates to services such as strategic planning, organizational development, operational efficiency improvements, policy advice, and general management support for the program's implementation. It indicates that USAID sought external expertise to optimize the management and administration of the OVC program, rather than direct service delivery or procurement of goods. This code is broad but appropriate for contracts focused on enhancing the effectiveness and efficiency of program operations, ensuring that resources are managed optimally to achieve the program's life-saving objectives for vulnerable children.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting 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
Offers Received: 3
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: $18,552,004
Exercised Options: $18,552,004
Current Obligation: $18,552,004
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: AIDGHHI000700058
IDV Type: IDC
Timeline
Start Date: 2009-10-14
Current End Date: 2014-10-06
Potential End Date: 2014-10-06 00:00:00
Last Modified: 2022-08-26
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