Over $16.5M for social marketing to improve health outcomes, awarded to Population Services International

Contract Overview

Contract Amount: $16,549,795 ($16.5M)

Contractor: Population Services International

Awarding Agency: Agency for International Development

Start Date: 2009-04-15

End Date: 2014-04-15

Contract Duration: 1,826 days

Daily Burn Rate: $9.1K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IMPLEMENT SOCIAL MARKETING PROGRAM TO IMPORIVE SPECIFIC HEALTH OUTCOMES BY PROMOTING HEALTHY BEHAVIORS UTILIZING BEHAVIOR CHANGE COMMUNICATION, PRODUCT PROMOTION AND PRODUCT SALES STRATEGIES.

Plain-Language Summary

Agency for International Development obligated $16.5 million to POPULATION SERVICES INTERNATIONAL for work described as: IMPLEMENT SOCIAL MARKETING PROGRAM TO IMPORIVE SPECIFIC HEALTH OUTCOMES BY PROMOTING HEALTHY BEHAVIORS UTILIZING BEHAVIOR CHANGE COMMUNICATION, PRODUCT PROMOTION AND PRODUCT SALES STRATEGIES. Key points: 1. The contract focuses on behavior change communication, product promotion, and sales strategies to achieve specific health outcomes. 2. Awarded to a single contractor, Population Services International, suggesting a potentially specialized or established relationship. 3. The contract duration of five years indicates a long-term commitment to the program's objectives. 4. The contract type is Cost Plus Fixed Fee, which can incentivize cost control while ensuring contractor profit. 5. The North American Industry Classification System (NAICS) code 541611 points to administrative and management consulting services. 6. The contract was awarded as a competitive delivery order, implying a competitive process within a larger framework.

Value Assessment

Rating: good

The total award amount of over $16.5 million for a five-year social marketing program appears reasonable given the scope of promoting healthy behaviors and potentially selling related products. Benchmarking against similar public health campaigns or behavior change initiatives would provide a more precise value assessment. The Cost Plus Fixed Fee structure allows for cost transparency and contractor profit, but requires careful oversight to ensure efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded as a 'COMPETITIVE DELIVERY ORDER,' which suggests it was competed, but potentially within a pre-existing contract vehicle or a limited pool of qualified vendors. The number of offers (3) indicates some level of competition, but it is not a full and open competition. This level of competition may lead to less aggressive pricing compared to a broader solicitation.

Taxpayer Impact: While some competition existed, taxpayers may not have received the absolute lowest price achievable through a fully open bidding process. The limited number of bidders could mean less pressure on the contractor to minimize costs.

Public Impact

The primary beneficiaries are populations targeted by the health outcomes initiatives, aiming for improved well-being. Services delivered include social marketing, behavior change communication, product promotion, and potentially product sales. The geographic impact is likely focused on regions where Population Services International operates and where the health outcomes are most needed. Workforce implications could include local employment for program implementation and distribution, depending on the program's structure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns under a Cost Plus Fixed Fee contract if not closely monitored.
Limited competition may result in a higher overall cost to taxpayers.
Effectiveness of social marketing campaigns can be difficult to measure and attribute directly to contract spending.

Positive Signals

Focus on improving specific health outcomes suggests a clear programmatic goal.
The use of behavior change communication and product promotion indicates a strategic approach to public health.
Awarded as a competitive delivery order, suggesting some level of vetting and competition occurred.

Sector Analysis

This contract falls within the administrative management and general management consulting services sector, specifically applied to public health initiatives. The market for health promotion and social marketing services is significant, often involving non-profit organizations, government agencies, and specialized consulting firms. The spending benchmark for similar public health campaigns can vary widely based on scope, duration, and target population, but multi-million dollar contracts are common for large-scale, multi-year efforts.

Small Business Impact

There is no explicit indication of small business set-asides or subcontracting requirements in the provided data. The contract was awarded to Population Services International, a known entity in global health. Further investigation would be needed to determine if small businesses were involved in subcontracting opportunities.

Oversight & Accountability

Oversight would typically be managed by the Agency for International Development (USAID) contracting officers and program managers. Accountability measures would be tied to the achievement of specific health outcomes and milestones outlined in the contract. Transparency is generally facilitated through contract award databases and reporting requirements, though detailed performance reports may not always be publicly accessible.

Related Government Programs

Global Health Security Initiative
President's Malaria Initiative
PEPFAR (President's Emergency Plan for AIDS Relief)
USAID Health Programs

Risk Flags

Potential for limited competition
Cost control under CPFF requires diligent oversight
Measuring social marketing impact can be challenging

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $16.5 million to POPULATION SERVICES INTERNATIONAL. IMPLEMENT SOCIAL MARKETING PROGRAM TO IMPORIVE SPECIFIC HEALTH OUTCOMES BY PROMOTING HEALTHY BEHAVIORS UTILIZING BEHAVIOR CHANGE COMMUNICATION, PRODUCT PROMOTION AND PRODUCT SALES STRATEGIES.

Who is the contractor on this award?

The obligated recipient is POPULATION SERVICES 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 $16.5 million.

What is the period of performance?

Start: 2009-04-15. End: 2014-04-15.

What specific health outcomes was this social marketing program designed to improve?

The provided data indicates the program aimed to 'IMPROVE SPECIFIC HEALTH OUTCOMES BY PROMOTING HEALTHY BEHAVIORS.' However, the exact health outcomes (e.g., reduction in specific diseases, increase in vaccination rates, promotion of family planning) are not detailed in the summary. Typically, such programs target areas like maternal and child health, infectious disease prevention (like HIV/AIDS, malaria, tuberculosis), or non-communicable disease risk reduction. The effectiveness of the program would be measured against predefined metrics related to these specific health goals.

How does the Cost Plus Fixed Fee (CPFF) structure impact cost control and contractor incentive?

A Cost Plus Fixed Fee (CPFF) contract reimburses the contractor for allowable costs incurred, plus a predetermined fixed fee representing profit. This structure is often used when the scope of work is not precisely defined or involves a high degree of uncertainty. For cost control, it requires robust oversight from the government to ensure that incurred costs are reasonable and allocable. The fixed fee provides a clear profit margin, incentivizing the contractor to complete the work efficiently to maximize their return on investment without necessarily driving down costs below what is necessary for quality delivery. However, it can also lead to less aggressive cost-cutting compared to fixed-price contracts.

What is the track record of Population Services International (PSI) in managing similar large-scale social marketing contracts?

Population Services International (PSI) is a well-established global health organization with extensive experience in social marketing and behavior change communication. They have a long history of implementing large-scale public health programs funded by USAID and other international donors across numerous countries. PSI is known for its innovative approaches to product distribution, marketing, and service delivery for health products and information. Their track record generally includes managing complex supply chains, engaging diverse stakeholders, and achieving measurable health impact, making them a frequent recipient of such contracts.

How does the $16.5 million award compare to other federal spending on social marketing or public health campaigns?

An award of over $16.5 million for a five-year social marketing program is substantial and aligns with the scale of significant federal investments in global health and public health initiatives. For context, major federal health programs like those managed by the Centers for Disease Control and Prevention (CDC) or USAID often involve contracts in the tens or hundreds of millions of dollars for large-scale, multi-year campaigns addressing critical health issues. While specific comparisons require detailed analysis of program scope and objectives, this figure suggests a significant commitment to achieving defined health outcomes through strategic marketing and behavior change interventions.

What are the potential risks associated with implementing a social marketing program of this magnitude?

Potential risks include challenges in accurately measuring the impact of social marketing on health outcomes, especially in complex environments. There's also the risk of market saturation or resistance to promoted behaviors or products. Logistical challenges in product distribution and supply chain management, particularly in developing regions, can hinder program success. Furthermore, political instability, changes in funding priorities, or unforeseen public health crises could disrupt program implementation. Ensuring sustained behavior change beyond the contract period also presents a long-term risk.

What does the 'competitive delivery order' designation imply about the procurement process?

A 'competitive delivery order' typically means that the order was placed against an existing indefinite-delivery, indefinite-quantity (IDIQ) contract or a similar multiple-award contract vehicle. While the delivery order itself was competed among the awardees of the base contract, it does not necessarily imply a full and open competition from the outset. The competition occurred among a pre-selected group of contractors who had already met the criteria for the base contract. This process aims to streamline procurement for specific task orders while still allowing for some level of price and technical proposal comparison among qualified vendors.

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: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1120 19TH ST NW STE LL10, WASHINGTON, DC, 20036

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

Financial Breakdown

Contract Ceiling: $47,328,869

Exercised Options: $47,328,869

Current Obligation: $16,549,795

Actual Outlays: $-561

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: AIDGHHI000700062

IDV Type: IDC

Timeline