Over $3.27 billion awarded for supply chain management services across PEPFAR countries, continuing a long-standing program

Contract Overview

Contract Amount: $3,272,781,797 ($3.3B)

Contractor: Partnership for Supply Chain Management Inc

Awarding Agency: Agency for International Development

Start Date: 2009-06-01

End Date: 2022-04-06

Contract Duration: 4,692 days

Daily Burn Rate: $697.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: THIS IS A NEW TASK ORDER (# 03) ISSUED AGAINST THE BASIC IQC # GPO-I-00-05-00032-00. THE PURPOSE OF THIS TASK ORDER IS TO FACILITATE CONTINUATION OF THE SCMS PROGRAM IN ALL PEPFAR COUNTRIES.

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Agency for International Development obligated $3.27 billion to PARTNERSHIP FOR SUPPLY CHAIN MANAGEMENT INC for work described as: THIS IS A NEW TASK ORDER (# 03) ISSUED AGAINST THE BASIC IQC # GPO-I-00-05-00032-00. THE PURPOSE OF THIS TASK ORDER IS TO FACILITATE CONTINUATION OF THE SCMS PROGRAM IN ALL PEPFAR COUNTRIES. Key points: 1. Significant investment in a critical global health program, indicating sustained commitment. 2. Contract awarded through full and open competition, suggesting a robust market. 3. Long contract duration (nearly 13 years) may present risks related to evolving needs. 4. Services are administrative and management consulting, supporting complex logistical operations. 5. The contractor has been involved since the program's inception, implying deep institutional knowledge. 6. No small business set-aside, indicating the scale of services likely requires larger firms.

Value Assessment

Rating: good

The total award amount of over $3.27 billion over nearly 13 years represents a substantial investment in global health supply chain management. Benchmarking this against similar large-scale, long-term public health logistics contracts is challenging due to the unique scope of PEPFAR. However, the cost-plus-fixed-fee structure allows for flexibility while aiming to control overall expenditure. The consistent funding suggests a perceived value for money in maintaining these essential services.

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 bidders had the opportunity to submit proposals. The specific number of bidders is not detailed, but the competitive nature of the award process suggests that the agency sought the best value and pricing available in the market for these complex services. This approach generally leads to more favorable pricing for the government.

Taxpayer Impact: A full and open competition process helps ensure that taxpayer dollars are used efficiently by fostering a competitive environment that drives down costs and improves service quality.

Public Impact

Beneficiaries include millions of individuals in PEPFAR-supported countries receiving essential medicines and health commodities. Services delivered ensure the availability and accessibility of critical health supplies for HIV/AIDS prevention, treatment, and care. Geographic impact spans numerous PEPFAR-implementing countries across Africa, Asia, and other regions. Workforce implications include support for local health systems and potentially the creation of jobs related to supply chain logistics.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (nearly 13 years) could lead to cost inefficiencies if needs or technologies change significantly.
Cost-plus-fixed-fee contracts can sometimes incentivize higher costs if not closely monitored.
Reliance on a single task order for such a critical, long-term program might limit agility in adapting to unforeseen global health crises.

Positive Signals

Sustained funding demonstrates a long-term commitment to a vital global health initiative.
Award through full and open competition suggests a well-managed procurement process.
The contractor's continued involvement indicates a successful track record in managing complex supply chains.
The program's longevity points to its effectiveness in achieving its public health objectives.

Sector Analysis

This contract falls within the Management and Administrative Consulting Services sector, specifically supporting large-scale, complex public health logistics. The global health supply chain management market is substantial, driven by the need to deliver medicines and commodities efficiently in resource-limited settings. Comparable spending benchmarks are difficult to pinpoint due to the unique scope of PEPFAR, but the scale of this award reflects the critical nature and extensive reach of the program.

Small Business Impact

The contract was not awarded as a small business set-aside, which is typical for programs of this magnitude requiring extensive global reach and specialized logistical expertise. There is no explicit mention of subcontracting requirements for small businesses within the provided data. This suggests that the primary contractor is expected to manage the bulk of the services, potentially limiting direct opportunities for small businesses unless they are specialized subcontractors.

Oversight & Accountability

Oversight for this contract would primarily fall under the Agency for International Development (USAID). As a cost-plus-fixed-fee contract, rigorous financial oversight and performance monitoring are crucial to ensure that costs are reasonable and that the fixed fee is earned through satisfactory performance. Transparency is generally maintained through agency reporting mechanisms, and the Inspector General's office would have jurisdiction for audits and investigations into fraud, waste, or abuse.

Related Government Programs

PEPFAR Programs
Global Health Supply Chain Management
USAID Administrative and Management Consulting Services
International Development Assistance
Public Health Logistics

Risk Flags

Long contract duration
Cost-plus-fixed-fee contract type
Lack of specific performance metrics in provided data

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $3.27 billion to PARTNERSHIP FOR SUPPLY CHAIN MANAGEMENT INC. THIS IS A NEW TASK ORDER (# 03) ISSUED AGAINST THE BASIC IQC # GPO-I-00-05-00032-00. THE PURPOSE OF THIS TASK ORDER IS TO FACILITATE CONTINUATION OF THE SCMS PROGRAM IN ALL PEPFAR COUNTRIES.

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 $3.27 billion.

What is the period of performance?

Start: 2009-06-01. End: 2022-04-06.

What is the historical spending trend for this specific task order and its parent IQC?

The provided data indicates this is Task Order #03 under IQC # GPO-I-00-05-00032-00, with a total award of $3,272,781,796.99. The duration spans from June 1, 2009, to April 6, 2022, totaling approximately 4,692 days or nearly 13 years. While specific annual spending figures for this task order are not detailed, the cumulative amount suggests consistent and substantial funding allocation throughout its lifecycle. The parent IQC likely supported multiple task orders, and this particular one represents a significant portion of the overall contract vehicle's value, reflecting its critical role in continuing the SCMS program across PEPFAR countries.

How does the contractor's performance history with USAID influence the value assessment of this contract?

Partnership for Supply Chain Management Inc. (PSCM) has been entrusted with this significant task order, indicating a positive performance history or strong capability relevant to USAID's needs. The long duration (nearly 13 years) and substantial value suggest that USAID has found PSCM's services to be effective and reliable in managing the complex supply chain requirements for the SCMS program in PEPFAR countries. While specific performance metrics are not provided, the renewal and continuation of services under this task order imply that the contractor has met or exceeded expectations, thereby justifying the investment and contributing to the perceived value for money in maintaining critical health commodity flows.

What are the primary risks associated with the long duration and cost-plus-fixed-fee structure of this contract?

The contract's nearly 13-year duration presents risks related to the potential for evolving global health needs, technological advancements, and shifts in geopolitical priorities, which might render the original scope less effective or efficient over time. A cost-plus-fixed-fee (CPFF) structure, while allowing flexibility, carries the inherent risk of potential cost overruns if not meticulously monitored. There's a possibility that the contractor might have less incentive to aggressively control costs compared to a fixed-price contract, as costs are reimbursed. Effective oversight by USAID is crucial to mitigate these risks, ensuring that expenditures remain reasonable and that the fixed fee is earned through demonstrable value and performance.

How does this contract contribute to the overall effectiveness of the PEPFAR program?

This contract is fundamental to the operational success of the PEPFAR program by ensuring the reliable supply of essential medicines and health commodities, including antiretrovirals (ARVs), diagnostics, and other critical supplies, to millions of people in PEPFAR-supported countries. Effective supply chain management, facilitated by this contract, directly impacts treatment adherence, prevention efforts, and overall health outcomes for those affected by HIV/AIDS. By maintaining the flow of these vital resources, the contract enables healthcare providers to deliver services consistently, thereby maximizing the impact of PEPFAR's investments and contributing significantly to the program's goal of controlling the HIV/AIDS epidemic.

Are there any indicators of potential waste, fraud, or abuse within this contract's structure or execution?

The provided data does not contain specific indicators of waste, fraud, or abuse. However, any large-scale, long-duration contract, particularly those utilizing a cost-plus-fixed-fee structure, inherently carries some level of risk. The CPFF model requires diligent oversight to ensure costs are reasonable and allocable. The fact that this is a task order under a larger IQC, awarded through full and open competition, suggests a structured procurement process. The Inspector General's office at USAID would typically provide oversight and conduct audits to detect and prevent any potential improprieties, ensuring accountability for taxpayer funds.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

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: $3,689,356,529

Exercised Options: $3,689,356,529

Current Obligation: $3,272,781,797

Actual Outlays: $-649,777

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: AIDGPOI000500032

IDV Type: IDC

Timeline