USAID's $181M Demographic and Health Surveys Phase 7 contract awarded to ICF Macro Inc. for global health insights

Contract Overview

Contract Amount: $180,787,101 ($180.8M)

Contractor: ICF Macro Inc

Awarding Agency: Agency for International Development

Start Date: 2013-09-09

End Date: 2022-09-27

Contract Duration: 3,305 days

Daily Burn Rate: $54.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: IGF::OT::IGF GH/PEC - REQUEST NEW FY13 AWARD: DEMOGRAPHIC AND HEALTH SURVEYS PHASE 7 (DHS-7). RFP: COMPETITIVE, FIVE YEAR CONTRACT, COST PLUS AWARD FEE, WILL ACCEPT FUNDING FROM ALL ACCOUNTS, INCLUDING PEPFAR.

Plain-Language Summary

Agency for International Development obligated $180.8 million to ICF MACRO INC for work described as: IGF::OT::IGF GH/PEC - REQUEST NEW FY13 AWARD: DEMOGRAPHIC AND HEALTH SURVEYS PHASE 7 (DHS-7). RFP: COMPETITIVE, FIVE YEAR CONTRACT, COST PLUS AWARD FEE, WILL ACCEPT FUNDING FROM ALL ACCOUNTS, INCLUDING PEPFAR. Key points: 1. Contract awarded through full and open competition, suggesting a robust market for these services. 2. The cost-plus-award-fee structure incentivizes performance but requires careful monitoring of costs. 3. Long contract duration of over 9 years indicates a significant, ongoing need for demographic and health data. 4. The contract's flexibility to accept funding from various accounts, including PEPFAR, highlights its strategic importance in global health initiatives. 5. The specific NAICS code (541690) points to specialized consulting services, indicating a niche but critical area of expertise. 6. The absence of small business set-asides warrants further investigation into subcontracting opportunities.

Value Assessment

Rating: good

The contract value of approximately $181 million over its extended period suggests a substantial investment in global health data collection and analysis. Benchmarking this against similar large-scale, multi-year international development contracts is challenging without more specific service details. However, the cost-plus-award-fee (CPAF) pricing structure, while common for complex services, can lead to higher overall costs if not managed tightly. The value proposition hinges on the quality and impact of the demographic and health data generated, which is critical for informing international development strategies and resource allocation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract 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 provided, but this procurement method generally fosters a competitive environment, which can lead to better pricing and service quality. The agency's decision to use full and open competition suggests confidence in the market's ability to provide the required specialized consulting services.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for money, potentially reducing costs compared to less competitive award methods.

Public Impact

Provides critical demographic and health data for numerous developing countries, aiding in policy formulation and resource allocation. Supports global health initiatives, including those funded by PEPFAR, by generating evidence for program effectiveness. Impacts public health outcomes by enabling targeted interventions based on accurate, up-to-date information. Contributes to the global understanding of health trends, disease prevalence, and population dynamics. Potentially supports a workforce of researchers, data collectors, and analysts involved in survey implementation and analysis.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The extended contract duration (over 9 years) raises concerns about potential cost overruns and the need for continuous oversight to ensure value.
The Cost Plus Award Fee (CPAF) structure, while incentivizing performance, can lead to less predictable costs if award criteria are not strictly managed.
Lack of explicit small business participation details could mean missed opportunities for smaller, specialized firms in the subcontracting ecosystem.

Positive Signals

Awarded via full and open competition, indicating a healthy market and potential for competitive pricing.
The contract's ability to accept funding from multiple sources, including PEPFAR, demonstrates its alignment with critical U.S. foreign policy and health objectives.
The focus on demographic and health surveys addresses a fundamental need for evidence-based decision-making in international development.

Sector Analysis

The contract falls within the 'Other Scientific and Technical Consulting Services' sector (NAICS 541690), a broad category encompassing specialized advisory and analytical services. This sector is crucial for government agencies requiring expertise in areas like public health, demographics, and international development. The market for such services is often characterized by a mix of large consulting firms and smaller, specialized research organizations. The significant value of this contract suggests it represents a major undertaking within this sector, likely involving complex data collection, analysis, and reporting on a global scale.

Small Business Impact

The provided data indicates that small business participation (sb) was false for this contract. This suggests that the contract was not specifically set aside for small businesses, nor does it appear that small business subcontracting goals were a primary focus. Further analysis would be needed to determine if any subcontracting opportunities were made available to small businesses by the prime contractor, ICF Macro Inc. The absence of explicit small business involvement could limit opportunities for smaller, specialized firms in this domain.

Oversight & Accountability

Oversight for this contract would primarily reside with the Agency for International Development (USAID). As a Cost Plus Award Fee (CPAF) contract, performance metrics and cost controls would be critical areas of oversight. Regular reporting, audits, and performance reviews would be essential to ensure that the contractor is meeting objectives and managing costs effectively. The contract's long duration necessitates sustained oversight to prevent scope creep and ensure continued alignment with agency goals. Transparency would be enhanced through public reporting of key findings from the demographic and health surveys.

Related Government Programs

Demographic and Health Surveys Program
PEPFAR (President's Emergency Plan for AIDS Relief)
Global Health Data Collection and Analysis Contracts
International Development Consulting Services

Risk Flags

Potential for cost overruns due to CPAF structure and long duration.
Need for robust performance monitoring to ensure award fee criteria are met.
Limited visibility into small business subcontracting opportunities.
Ensuring data quality and reliability across diverse global settings.
Managing contract modifications and scope changes over a long period.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $180.8 million to ICF MACRO INC. IGF::OT::IGF GH/PEC - REQUEST NEW FY13 AWARD: DEMOGRAPHIC AND HEALTH SURVEYS PHASE 7 (DHS-7). RFP: COMPETITIVE, FIVE YEAR CONTRACT, COST PLUS AWARD FEE, WILL ACCEPT FUNDING FROM ALL ACCOUNTS, INCLUDING PEPFAR.

Who is the contractor on this award?

The obligated recipient is ICF MACRO 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 $180.8 million.

What is the period of performance?

Start: 2013-09-09. End: 2022-09-27.

What is the track record of ICF Macro Inc. in managing large-scale international development contracts, particularly those involving demographic and health surveys?

ICF Macro Inc., now part of ICF International, has a long history of managing complex data collection and analysis projects for government agencies, including USAID. They have been a significant player in the Demographic and Health Surveys (DHS) program for many years, often serving as a prime contractor or key subcontractor. Their experience typically includes survey design, implementation, data processing, analysis, and dissemination across numerous countries. While specific performance details for this particular DHS-7 contract are not publicly detailed here, ICF's general track record suggests substantial capacity and experience in this domain. However, as with any large, long-term contract, ongoing monitoring of performance, cost control, and adherence to timelines is crucial.

How does the $181 million contract value compare to previous phases of the Demographic and Health Surveys (DHS) program?

The $181 million value for DHS-7 represents a significant investment, reflecting the scale and duration of the project. Comparing it directly to previous DHS phases requires access to historical award data for DHS-1 through DHS-6. However, it is common for such long-term, multi-phase programs to see increasing contract values over time due to inflation, expanded scope, or the addition of new countries and indicators. The extended duration (over 9 years) also contributes to the higher cumulative value. Without specific data on prior DHS phases, it's difficult to definitively state if this represents a substantial increase relative to scope and inflation, but it indicates a sustained and substantial commitment to the program's objectives.

What are the primary risks associated with a Cost Plus Award Fee (CPAF) contract of this magnitude and duration?

The primary risks with a CPAF contract of this scale and duration include potential cost overruns and challenges in objectively measuring performance for award fees. For the government, there's a risk that costs could escalate beyond initial projections if not rigorously managed, as the contractor is reimbursed for allowable costs plus a fee that can be adjusted based on performance. For the contractor, the risk lies in not meeting the performance targets required to achieve the maximum award fee. Effective oversight is critical to mitigate these risks, ensuring that costs are reasonable and allocable, and that award fee criteria are clearly defined, measurable, and consistently applied. The long duration increases the complexity of managing these risks over time.

What is the expected impact of the data collected under DHS-7 on global health policy and programming?

The data collected under the Demographic and Health Surveys (DHS) program, including Phase 7, is foundational for evidence-based decision-making in global health. It provides critical insights into fertility, family planning, child and maternal health, nutrition, infectious diseases (like HIV/AIDS, malaria), and non-communicable diseases. This information allows governments and international organizations to assess the health status of populations, identify disparities, monitor trends, evaluate the effectiveness of health interventions, and allocate resources more efficiently. For instance, data on child mortality rates can inform vaccination campaigns, while data on contraceptive prevalence can guide family planning programs. The DHS program's standardized methodology ensures comparability across countries and over time, making it an invaluable tool for global health policy.

How does USAID ensure the quality and reliability of the demographic and health data collected through contracts like DHS-7?

USAID employs multiple mechanisms to ensure the quality and reliability of data collected under contracts like DHS-7. This typically involves rigorous survey design protocols, standardized training for data collectors, robust data quality assurance procedures during fieldwork, and sophisticated data validation and cleaning processes post-collection. The DHS program itself has established methodological standards and quality control measures that contractors must adhere to. Furthermore, USAID often conducts independent reviews or utilizes technical assistance providers to oversee the implementation and data quality. The use of Computer-Assisted Personal Interviewing (CAPI) technology also enhances data quality by reducing transcription errors and enabling real-time data checks. Finally, the public release of detailed methodological reports alongside the data allows for scrutiny by the broader research community.

What is the historical spending trend for the Demographic and Health Surveys (DHS) program under USAID?

The Demographic and Health Surveys (DHS) program has been a consistent and significant investment for USAID over several decades, spanning multiple phases (DHS-I through DHS-VII and beyond). Historical spending has generally shown an increasing trend, reflecting the program's expansion in scope, geographic reach, and the increasing complexity of health indicators being measured. While specific annual spending figures fluctuate based on the phase and active survey periods, the overall commitment has remained strong, underscoring the program's perceived value in informing global health strategies. The cumulative value of contracts across all phases runs into hundreds of millions of dollars, indicating a sustained, long-term investment in generating critical population and health data.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Scientific and Technical Consulting 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: 2

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: ICF International, Inc.

Address: 530 GAITHER RD STE 500, ROCKVILLE, MD, 20850

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $189,000,204

Exercised Options: $189,000,204

Current Obligation: $180,787,101

Actual Outlays: $1,659,053

Subaward Activity

Number of Subawards: 119

Total Subaward Amount: $41,527,302

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline