USAID's HIV/AIDS program support contract awarded to Family Health International for over $28.5 million

Contract Overview

Contract Amount: $28,528,438 ($28.5M)

Contractor: Family Health International

Awarding Agency: Agency for International Development

Start Date: 2007-08-14

End Date: 2012-12-31

Contract Duration: 1,966 days

Daily Burn Rate: $14.5K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 5

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: THE PURPOSE OF THIS TASK ORDER IS TO PROVIDE SUPPORT TO USAID RDM/A IN THE IMPLEMENTAITON OF IT'S HIV/AIDS PREVENTION, CARE AND TREATMENT PROGRAM.

Plain-Language Summary

Agency for International Development obligated $28.5 million to FAMILY HEALTH INTERNATIONAL for work described as: THE PURPOSE OF THIS TASK ORDER IS TO PROVIDE SUPPORT TO USAID RDM/A IN THE IMPLEMENTAITON OF IT'S HIV/AIDS PREVENTION, CARE AND TREATMENT PROGRAM. Key points: 1. Contract provides critical IT and technical support for USAID's HIV/AIDS prevention, care, and treatment initiatives. 2. The contract was awarded competitively, suggesting a degree of market vetting for the services provided. 3. A Cost Plus Fixed Fee (CPFF) contract type allows for cost reimbursement plus a predetermined profit, which can incentivize efficiency. 4. The duration of the contract (over 5 years) indicates a long-term need for these specialized services. 5. The professional services category suggests a focus on expertise rather than tangible goods. 6. The contract's value is substantial, reflecting the scale and importance of USAID's global health programs.

Value Assessment

Rating: good

The contract value of approximately $28.5 million over five years for IT and technical support for a global HIV/AIDS program appears reasonable given the scope. While direct comparisons are difficult without more specific service details, similar large-scale international development support contracts often fall within this range. The CPFF structure, if managed effectively, can provide good value by allowing for cost control while ensuring contractor motivation through a fixed fee.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded as a 'COMPETITIVE DELIVERY ORDER', indicating that it was competed among multiple potential offerors. The presence of 5 bids (no=5) suggests a healthy level of competition for this task order. This competitive process is expected to drive more favorable pricing and service offerings compared to a sole-source award.

Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by fostering price discovery and encouraging contractors to offer their best value.

Public Impact

Beneficiaries include individuals and communities impacted by HIV/AIDS globally, through improved program implementation. Services delivered encompass IT support and technical assistance crucial for the effective management of HIV/AIDS programs. The geographic impact is global, supporting USAID's international development efforts. Workforce implications include the need for skilled IT and public health professionals to support the program.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in CPFF contracts if not closely monitored.
Ensuring the technical expertise remains current with evolving HIV/AIDS treatment and prevention strategies.
Dependency on a single contractor for critical program support over an extended period.

Positive Signals

Competitive award process likely secured favorable pricing and quality.
Long contract duration suggests stability and commitment to the program's success.
Focus on IT and technical services aligns with modern program management needs.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically supporting public health initiatives. The market for such services is large and diverse, encompassing government contractors, non-profit organizations, and consulting firms specializing in international development and health. Spending in this area is driven by government agencies like USAID's commitment to global health challenges, including disease prevention and treatment programs.

Small Business Impact

Information regarding small business set-asides or subcontracting plans was not explicitly provided in the data. However, given the competitive nature of the award, it is possible that small businesses could have participated as prime contractors or subcontractors. Further investigation into the subcontracting reports would be necessary to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by USAID's contracting officers and program officials. The CPFF structure necessitates robust financial oversight to ensure costs are reasonable and allocable. Transparency is generally maintained through contract reporting requirements, and the Inspector General's office would have jurisdiction to investigate any potential fraud, waste, or abuse.

Related Government Programs

USAID Global Health Programs
PEPFAR (President's Emergency Plan for AIDS Relief)
IT Support Services for Federal Agencies
International Development Assistance

Risk Flags

Contract type (CPFF) requires diligent oversight to manage costs.
Long contract duration may increase risk of scope changes or vendor lock-in.
Scope of 'All Other Professional, Scientific, and Technical Services' requires clear performance metrics.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $28.5 million to FAMILY HEALTH INTERNATIONAL. THE PURPOSE OF THIS TASK ORDER IS TO PROVIDE SUPPORT TO USAID RDM/A IN THE IMPLEMENTAITON OF IT'S HIV/AIDS PREVENTION, CARE AND TREATMENT PROGRAM.

Who is the contractor on this award?

The obligated recipient is FAMILY HEALTH 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 $28.5 million.

What is the period of performance?

Start: 2007-08-14. End: 2012-12-31.

What specific IT and technical services were provided under this contract?

The provided data indicates the contract was for 'SUPPORT TO USAID RDM/A IN THE IMPLEMENTAITON OF IT'S HIV/AIDS PREVENTION, CARE AND TREATMENT PROGRAM.' While specific IT services are not detailed, this likely encompassed a range of activities such as network management, software development or maintenance, data analysis and reporting, cybersecurity, and general technical assistance to support the operational and programmatic needs of USAID's HIV/AIDS initiatives. The 'All Other Professional, Scientific, and Technical Services' NAICS code (541990) suggests a broad scope beyond highly specialized IT functions, potentially including program management support, data collection, and analysis related to the health programs.

How does the $28.5 million cost compare to similar USAID HIV/AIDS support contracts?

Comparing the $28.5 million cost directly to similar contracts requires access to a broader dataset of USAID procurements. However, considering the contract duration of over five years (1966 days) and its focus on supporting a critical global health program like HIV/AIDS, the average annual cost is approximately $5.7 million. This figure is within the expected range for large-scale, long-term technical assistance and IT support contracts managed by agencies like USAID for significant international programs. Factors such as the specific technical requirements, geographic scope, and the number of personnel involved would influence the final cost.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this nature?

The primary risks associated with a CPFF contract, especially for complex IT and technical support in global health, include potential cost overruns if the fixed fee is not adequately estimated or if unforeseen technical challenges arise. There's also a risk that the contractor might not be sufficiently incentivized to control costs beyond what's necessary to complete the scope, as their profit is fixed. For USAID, the risk lies in ensuring robust oversight to validate costs and prevent inefficiencies. Additionally, the long duration increases the risk of scope creep or the need for contract modifications if program requirements evolve significantly.

What was the historical spending trend for this type of support prior to this contract?

The provided data does not include historical spending trends for this specific contract or category of support prior to its award in August 2007. To analyze historical spending, one would need to examine USAID's procurement data for similar services over previous fiscal years. This would involve identifying contracts with comparable objectives (HIV/AIDS program support), service types (IT, technical assistance), and contracting vehicles. Understanding past spending patterns would help contextualize the $28.5 million award and identify any significant increases or decreases in investment in this area.

How effective has Family Health International been in delivering services under similar contracts?

Assessing the effectiveness of Family Health International (FHI) under this specific contract requires access to performance evaluations, contract close-out reports, and potentially USAID's contractor performance databases. The data provided does not include such performance metrics. However, FHI is a well-established organization in global health and development. To evaluate their track record, one would need to research their past performance on USAID contracts, looking for indicators of successful project completion, adherence to timelines and budgets, and positive outcomes in program implementation related to HIV/AIDS or other health initiatives.

What is the significance of the NAICS code 541990 ('All Other Professional, Scientific, and Technical Services') for this contract?

The NAICS code 541990 signifies that the services procured under this contract fall into a broad category that doesn't fit more specific professional, scientific, or technical service classifications. For this HIV/AIDS program support contract, it suggests the scope likely included a diverse range of activities beyond standard IT functions. This could encompass program management, policy analysis, research support, data collection and analysis, technical advisory services, and other specialized expertise required for the complex implementation of global health initiatives. This broad classification allows flexibility but also necessitates clear definition of deliverables within the contract itself.

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: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 5

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 2224 CHAPEL HILL-NELSON HWY, DURHAM, NC, 27713

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

Financial Breakdown

Contract Ceiling: $28,894,114

Exercised Options: $28,894,114

Current Obligation: $28,528,438

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: AIDGHSI000700007

IDV Type: IDC

Timeline