USAID Modifies Supply Chain System Contract by $21.3M for Mozambique Operations
Contract Overview
Contract Amount: $313,577,356 ($313.6M)
Contractor: Partnership for Supply Chain Management Inc
Awarding Agency: Agency for International Development
Start Date: 2005-09-30
End Date: 2009-09-29
Contract Duration: 1,460 days
Daily Burn Rate: $214.8K/day
Competition Type: NON-COMPETITIVE DELIVERY ORDER
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: THE PURPOSE OF THIS MODIFICATION IS TO PROVIDE INCREMENTAL FUNDING IN THE AMOUNT OF $21,354,172.00 GH/OHA - SUPPLY CHAIN MANAGEMENT SYSTEM - MOZAMBIQUE
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209
State: Virginia Government Spending
Plain-Language Summary
Agency for International Development obligated $313.6 million to PARTNERSHIP FOR SUPPLY CHAIN MANAGEMENT INC for work described as: THE PURPOSE OF THIS MODIFICATION IS TO PROVIDE INCREMENTAL FUNDING IN THE AMOUNT OF $21,354,172.00 GH/OHA - SUPPLY CHAIN MANAGEMENT SYSTEM - MOZAMBIQUE Key points: 1. Funding increase of $21.3M for supply chain management in Mozambique. 2. Contract awarded to Partnership for Supply Chain Management Inc. 3. Services fall under Administrative Management and General Management Consulting. 4. Potential for increased costs due to non-competitive award.
Value Assessment
Rating: fair
The contract's total value is substantial at over $313M. Without a competitive benchmark, assessing the value for money for this modification is difficult. The cost-plus-fixed-fee structure can incentivize cost overruns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
This is a non-competitive delivery order, indicating a lack of market research or a specific justification for not seeking other offers. This limits price discovery and potentially leads to higher costs for the government.
Taxpayer Impact: The $21.3M modification represents an increase in taxpayer spending without a clear demonstration of competitive pricing, raising concerns about efficiency.
Public Impact
Enhances critical supply chain management for health programs in Mozambique. Supports the Agency for International Development's (USAID) global health initiatives. Potential impact on the availability and delivery of essential goods and services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Non-competitive award limits price scrutiny.
- Cost-plus-fixed-fee contract type can lead to cost escalation.
- Lack of detailed justification for modification.
Positive Signals
- Addresses critical supply chain needs.
- Supports vital health programs.
- Long-term contract indicates ongoing program support.
Sector Analysis
This contract falls under management consulting services, a broad category. The specific application in supply chain management for health programs in Mozambique suggests a specialized need. Benchmarks for similar international development consulting contracts would be relevant.
Small Business Impact
The data does not indicate any specific provisions or considerations for small business participation in this contract modification. The prime contractor is Partnership for Supply Chain Management Inc.
Oversight & Accountability
The non-competitive nature of this delivery order warrants scrutiny. USAID should ensure robust internal controls and justifications are in place to validate the necessity and pricing of this modification.
Related Government Programs
- Administrative Management and General Management Consulting Services
- Agency for International Development Contracting
- Agency for International Development Programs
Risk Flags
- Non-competitive award.
- Cost-plus-fixed-fee contract type.
- Lack of detailed justification for modification.
- Potential for cost overruns.
- Limited transparency in pricing.
Tags
administrative-management-and-general-ma, agency-for-international-development, va, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Agency for International Development awarded $313.6 million to PARTNERSHIP FOR SUPPLY CHAIN MANAGEMENT INC. THE PURPOSE OF THIS MODIFICATION IS TO PROVIDE INCREMENTAL FUNDING IN THE AMOUNT OF $21,354,172.00 GH/OHA - SUPPLY CHAIN MANAGEMENT SYSTEM - MOZAMBIQUE
Who is the contractor on this award?
The obligated recipient is PARTNERSHIP FOR SUPPLY CHAIN MANAGEMENT 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 $313.6 million.
What is the period of performance?
Start: 2005-09-30. End: 2009-09-29.
What is the specific justification for awarding this modification non-competitively, and how does it ensure value for taxpayer money?
The justification for a non-competitive award is crucial for understanding why other vendors were not considered. Agencies typically cite reasons such as urgency, unique capabilities, or follow-on work. Without this justification, it's difficult to assess if the government received fair pricing and explored all viable options, potentially impacting the efficient use of taxpayer funds.
How does the cost-plus-fixed-fee structure impact the overall cost-effectiveness of this $21.3M modification?
Cost-plus-fixed-fee contracts can incentivize contractors to increase costs, as the fixed fee remains constant regardless of the final project cost. While it allows for flexibility, it necessitates strong government oversight to manage expenditures effectively. For this $21.3M modification, the agency must actively monitor costs to prevent overruns and ensure the fixed fee represents fair compensation for the services rendered.
What are the key performance indicators (KPIs) for this supply chain management system in Mozambique, and how is performance being measured?
Effective oversight requires clearly defined KPIs for the supply chain management system, such as delivery timeliness, inventory accuracy, and reduction in stockouts of essential goods. Measuring performance against these metrics is vital to ensure the $21.3M modification contributes to tangible improvements in Mozambique's health sector and demonstrates accountability for the funds expended.
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) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: NON-COMPETITIVE DELIVERY ORDER
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 1616 N FT MYER DR 12TH FLOOR, ARLINGTON, VA, 22209
Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $5,122,718,993
Exercised Options: $5,122,718,993
Current Obligation: $313,577,356
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: AIDGPOI000500032
IDV Type: IDC
Timeline
Start Date: 2005-09-30
Current End Date: 2009-09-29
Potential End Date: 2009-09-29 00:00:00
Last Modified: 2019-07-29
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