USAID's $79.8M Supply Chain Quality Assurance Contract Faces Scrutiny Amidst Full and Open Competition
Contract Overview
Contract Amount: $79,842,887 ($79.8M)
Contractor: Family Health International
Awarding Agency: Agency for International Development
Start Date: 2015-01-02
End Date: 2024-12-31
Contract Duration: 3,651 days
Daily Burn Rate: $21.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: IGF::CL::IGF - GH/OHA - SCH: NEW SUPPLY CHAIN QUALITY ASSURANCE AND TESTING
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20417
Plain-Language Summary
Agency for International Development obligated $79.8 million to FAMILY HEALTH INTERNATIONAL for work described as: IGF::CL::IGF - GH/OHA - SCH: NEW SUPPLY CHAIN QUALITY ASSURANCE AND TESTING Key points: 1. The contract, valued at $79.8 million, is for supply chain quality assurance and testing. 2. Competition was full and open, suggesting a robust market for these services. 3. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns. 4. The sector is Professional, Scientific, and Technical Services, with a focus on health. 5. The contract duration is exceptionally long at 10 years.
Value Assessment
Rating: questionable
The Cost Plus Fixed Fee contract type, while allowing flexibility, carries inherent risks of cost escalation. Benchmarking against similar long-term, complex service contracts is difficult without more granular data on specific deliverables and overhead.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a competitive bidding process. However, the long duration and cost-plus nature may not have fully optimized price discovery for the government.
Taxpayer Impact: Taxpayer funds are committed for a decade, with potential for costs to exceed initial estimates due to the CPFF structure.
Public Impact
Ensures quality and testing for critical supply chains, potentially impacting public health outcomes. Long-term commitment of funds raises questions about adaptability to changing needs and technologies. The contract's broad scope could affect various international health programs supported by USAID.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (10 years)
- Cost Plus Fixed Fee contract type
- Lack of specific performance metrics in provided data
Positive Signals
- Full and open competition
- Essential service for supply chain integrity
Sector Analysis
This contract falls within the Professional, Scientific, and Technical Services sector, specifically focusing on quality assurance and testing within global health supply chains. Benchmarks for such long-term, specialized contracts are highly variable, but the duration here is notable.
Small Business Impact
The data indicates the contractor is FAMILY HEALTH INTERNATIONAL, a large organization. There is no explicit indication of small business participation or subcontracting in the provided details.
Oversight & Accountability
The long duration and cost-plus nature of this contract warrant robust oversight to ensure cost control and effective performance. Regular reviews and audits would be crucial for accountability.
Related Government Programs
- All Other Professional, Scientific, and Technical Services
- Agency for International Development Contracting
- Agency for International Development Programs
Risk Flags
- Long contract duration (10 years)
- Cost Plus Fixed Fee contract type
- Potential for cost overruns
- Lack of specific performance metrics
- Limited visibility into small business participation
Tags
all-other-professional-scientific-and-te, agency-for-international-development, dc, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Agency for International Development awarded $79.8 million to FAMILY HEALTH INTERNATIONAL. IGF::CL::IGF - GH/OHA - SCH: NEW SUPPLY CHAIN QUALITY ASSURANCE AND TESTING
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 $79.8 million.
What is the period of performance?
Start: 2015-01-02. End: 2024-12-31.
What specific quality assurance and testing metrics are being employed under this contract, and how are they measured against performance goals?
The provided data lacks specifics on the quality assurance and testing metrics. A thorough review would require access to the contract's statement of work and performance work statements. Key metrics should include defect rates, turnaround times for testing, compliance adherence, and impact on supply chain efficiency. Without these, assessing the true value and effectiveness is challenging.
Given the 10-year duration and CPFF structure, what mechanisms are in place to mitigate the risk of cost overruns and ensure continued relevance?
The primary risk mitigation lies in USAID's oversight and potential contract modifications. Mechanisms could include annual budget reviews, performance-based incentives, and clear termination clauses. However, the CPFF structure inherently allows for costs to rise, making proactive management and potentially renegotiation crucial to control taxpayer impact over such an extended period.
How does this contract contribute to USAID's broader mission objectives, and what is the measurable impact on global health supply chain resilience?
This contract is intended to bolster the integrity and reliability of global health supply chains, ensuring that essential medicines and health commodities reach their intended recipients without quality compromise. Its measurable impact would be seen in reduced stockouts, lower instances of counterfeit or substandard products, and improved efficiency in distribution networks, ultimately enhancing health outcomes in supported regions.
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: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 359 BLACKWELL ST STE 200, DURHAM, NC, 27701
Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $122,965,623
Exercised Options: $122,965,623
Current Obligation: $79,842,887
Actual Outlays: $47,306,230
Subaward Activity
Number of Subawards: 9
Total Subaward Amount: $1,643,828
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2015-01-02
Current End Date: 2024-12-31
Potential End Date: 2024-12-31 00:00:00
Last Modified: 2024-09-16
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