USAID's $52.9M Health Care Improvement Project Task Order awarded to University Research Co., LLC

Contract Overview

Contract Amount: $52,919,114 ($52.9M)

Contractor: University Research CO., LLC

Awarding Agency: Agency for International Development

Start Date: 2007-09-20

End Date: 2011-09-19

Contract Duration: 1,460 days

Daily Burn Rate: $36.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: AWARD OF HEALTH CARE IMPROVEMENT PROJECT IQC TASK ORDER #1TAS::72 1031::TAS

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20523

State: District of Columbia Government Spending

Plain-Language Summary

Agency for International Development obligated $52.9 million to UNIVERSITY RESEARCH CO., LLC for work described as: AWARD OF HEALTH CARE IMPROVEMENT PROJECT IQC TASK ORDER #1TAS::72 1031::TAS Key points: 1. The contract's cost-plus-award-fee structure incentivizes performance, but requires careful monitoring of award fee criteria. 2. Awarded under full and open competition, suggesting a robust market for these professional, scientific, and technical services. 3. The contract duration of 1460 days (4 years) indicates a significant, long-term commitment to the project. 4. The task order was awarded to a single contractor, University Research Co., LLC, for specialized services. 5. The professional, scientific, and technical services sector is broad, making direct cost comparisons challenging without specific service details. 6. The contract's geographic scope is not detailed, impacting the assessment of its reach and potential workforce implications.

Value Assessment

Rating: fair

The contract's cost-plus-award-fee (CPAF) pricing structure allows for flexibility and performance incentives. However, without detailed breakdowns of the award fee criteria and the contractor's performance against them, it is difficult to definitively assess value for money. Benchmarking against similar health care improvement projects awarded by USAID or other agencies would provide a clearer picture of whether the pricing is competitive for the services rendered. The total award amount of $52.9 million over four years suggests a substantial investment, necessitating rigorous oversight to ensure efficient use of funds.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This task order was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The specific number of bidders is not provided, which limits the ability to fully assess the intensity of the competition. However, the fact that it was competed openly suggests that the agency sought the best value from the market. This approach generally leads to more competitive pricing and a wider selection of qualified contractors.

Taxpayer Impact: A full and open competition process is generally favorable for taxpayers as it promotes a competitive environment, which can drive down costs and improve the quality of services received.

Public Impact

The primary beneficiaries are likely developing countries and populations receiving improved health care services facilitated by the project. The project aims to deliver improvements in health care systems, potentially impacting disease prevention, treatment, and overall public health outcomes. The geographic impact is expected to be in regions where USAID focuses its international development and health initiatives. Workforce implications could include the engagement of local health professionals and international technical experts, contributing to capacity building.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it hard to gauge true value for money.
The broad nature of 'All Other Professional, Scientific, and Technical Services' can obscure specific cost drivers.
Potential for scope creep in long-term, complex health improvement projects.
Limited transparency on how award fees are determined and disbursed.

Positive Signals

Awarded through full and open competition, indicating market engagement.
Cost-plus-award-fee structure incentivizes contractor performance.
Long contract duration suggests a sustained commitment to health improvement goals.

Sector Analysis

This contract falls within the Professional, Scientific, and Technical Services sector, a broad category encompassing a wide range of specialized expertise. Within this sector, health-related consulting and project management services are crucial for international development agencies like USAID. The market for such services is competitive, with numerous firms offering expertise in public health, health systems strengthening, and program implementation. Benchmarking this contract's value would ideally involve comparing its cost per unit of service or per beneficiary reached against similar USAID or global health initiatives.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific benefits for small businesses stemming from a set-aside provision. The prime contractor, University Research Co., LLC, would determine any subcontracting opportunities based on their project needs and procurement policies.

Oversight & Accountability

Oversight for this contract would primarily fall under the Agency for International Development (USAID), which is both the awarding and the contracting agency. As a Cost Plus Award Fee (CPAF) contract, oversight would focus on monitoring the contractor's performance against defined award criteria to ensure the appropriate disbursement of award fees. Transparency would be facilitated through regular reporting requirements and potentially through USAID's Inspector General's office for audits and investigations if specific concerns arise.

Related Government Programs

USAID Global Health Programs
International Health Technical Assistance
Health Systems Strengthening Projects
Public Health Consulting Services

Risk Flags

Potential for cost overruns due to CPAF structure if not tightly managed.
Broad service category may lack specificity for detailed performance tracking.
Geographic impact and specific health outcomes not detailed in summary data.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $52.9 million to UNIVERSITY RESEARCH CO., LLC. AWARD OF HEALTH CARE IMPROVEMENT PROJECT IQC TASK ORDER #1TAS::72 1031::TAS

Who is the contractor on this award?

The obligated recipient is UNIVERSITY RESEARCH CO., 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 $52.9 million.

What is the period of performance?

Start: 2007-09-20. End: 2011-09-19.

What is the track record of University Research Co., LLC with USAID or similar agencies for health improvement projects?

University Research Co., LLC (URC) has a significant history of working with USAID and other international development organizations on health-related projects. They have been involved in numerous initiatives focused on improving health systems, combating infectious diseases, and strengthening healthcare delivery in various countries. Their experience often spans areas such as maternal and child health, infectious disease control (like HIV/AIDS and tuberculosis), health financing, and health workforce development. A review of past performance evaluations and contract histories with USAID would provide specific insights into their success rates, challenges encountered, and overall effectiveness in managing complex health programs. This historical data is crucial for assessing their capability to successfully execute the current Health Care Improvement Project Task Order.

How does the $52.9 million award compare to other similar health improvement contracts managed by USAID?

The $52.9 million award for the Health Care Improvement Project Task Order represents a substantial investment, placing it in the mid-to-large tier for USAID-funded health initiatives. To benchmark its value, comparisons should be made with other task orders or contracts of similar duration (4 years) and scope, focusing on projects aimed at health systems strengthening or broad healthcare improvements. Factors such as the number of countries or regions impacted, the specific health areas targeted (e.g., infectious diseases, maternal health), and the intended outcomes (e.g., reduction in mortality rates, improved access to services) are critical for a meaningful comparison. Without these granular details, it's challenging to definitively state if $52.9 million is high or low, but it indicates a significant commitment to addressing complex health challenges.

What are the primary risks associated with a Cost Plus Award Fee (CPAF) contract for health improvement projects?

A primary risk with CPAF contracts, like this Health Care Improvement Project Task Order, is the potential for less stringent cost control compared to fixed-price contracts. While the 'cost plus' element covers allowable expenses, the 'award fee' component introduces subjectivity. There's a risk that award fees might be granted based on less rigorous performance evaluations, potentially inflating the total cost without a commensurate increase in demonstrable results. Another risk is the contractor's focus shifting towards maximizing award fees rather than achieving the most impactful health outcomes. Effective oversight is crucial to ensure that award criteria are objective, performance is rigorously assessed, and fees are only paid for exceptional performance directly linked to project goals.

What specific health improvements or outcomes is this task order intended to achieve?

The specific health improvements and outcomes intended by this task order are not detailed in the provided data. However, as a 'Health Care Improvement Project,' it is reasonable to infer that the objectives likely revolve around strengthening health systems, enhancing the quality and accessibility of healthcare services, improving health financing mechanisms, and potentially addressing specific public health challenges within the target regions. These could include reducing morbidity and mortality rates for specific diseases, improving maternal and child health outcomes, strengthening healthcare infrastructure, enhancing the capacity of local health workforces, and improving the management and delivery of essential health services. The precise goals would be outlined in the task order's statement of work.

How has USAID's spending in the 'All Other Professional, Scientific, and Technical Services' category evolved over the past five years?

Analyzing USAID's spending trends in the 'All Other Professional, Scientific, and Technical Services' (NAICS 541990) category over the past five years would require access to historical federal procurement data. Generally, this category is broad and can fluctuate based on agency priorities and the need for specialized expertise across various sectors, including health, democracy and governance, economic growth, and humanitarian assistance. Spending in this area often increases when agencies require support for complex program design, implementation, monitoring, evaluation, and specialized technical assistance that doesn't fit neatly into other service categories. For USAID, given its mission focus, a significant portion of this spending is likely directed towards technical assistance and project management for international development programs, particularly in health and governance.

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: 1

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Address: 7200 WISCONSIN AVE STE 600, BETHESDA, MD, 08

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $53,968,586

Exercised Options: $53,968,586

Current Obligation: $52,919,114

Parent Contract

Parent Award PIID: AIDGHNI000700003

IDV Type: IDC

Timeline