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

Positive Signals

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

Risk Flags

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 ServicesManagement, Scientific, and Technical Consulting ServicesAdministrative 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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