USAID's $21M contract for global health market access and financing awarded to RIOS PARTNERS, LLC

Contract Overview

Contract Amount: $21,173,691 ($21.2M)

Contractor: Rios Partners, LLC

Awarding Agency: Agency for International Development

Start Date: 2020-09-18

End Date: 2025-04-25

Contract Duration: 1,680 days

Daily Burn Rate: $12.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: MARKET ACCESS AND INNOVATIVE FINANCING FOR GLOBAL HEALTH

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202

State: Virginia Government Spending

Plain-Language Summary

Agency for International Development obligated $21.2 million to RIOS PARTNERS, LLC for work described as: MARKET ACCESS AND INNOVATIVE FINANCING FOR GLOBAL HEALTH Key points: 1. Contract awarded through full and open competition, suggesting a robust market. 2. The contract duration of 1680 days indicates a long-term engagement for complex services. 3. Administrative Management and General Management Consulting Services (NAICS 541611) are broad, requiring careful performance monitoring. 4. The contract type is Time and Materials, which can pose cost control challenges if not managed diligently. 5. Awarded to RIOS PARTNERS, LLC, a single entity, necessitating an assessment of their capacity and past performance. 6. The contract value of $21.17 million over its period suggests significant investment in global health initiatives.

Value Assessment

Rating: fair

The contract value of $21.17 million over approximately 4.6 years averages around $4.6 million annually. Benchmarking this against similar contracts for global health consulting services is challenging without more specific service details. However, the Time and Materials pricing structure warrants close scrutiny to ensure costs remain aligned with the value delivered and do not escalate beyond initial expectations. The absence of a fixed price or capped ceiling raises potential value-for-money concerns if not actively managed.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of 8 bidders (no) suggests a competitive environment for these services. This level of competition is generally positive for price discovery and ensures the government can select from a range of qualified offerors, potentially leading to better terms and pricing.

Taxpayer Impact: A competitive award process helps ensure taxpayer dollars are used efficiently by driving down costs and encouraging high-quality service delivery from multiple capable firms.

Public Impact

The primary beneficiaries are likely global health organizations and potentially populations in developing countries receiving support through improved market access and financing mechanisms. Services delivered focus on administrative management and general management consulting, aimed at enhancing the effectiveness and reach of global health programs. The geographic impact is global, supporting international development initiatives funded by USAID. Workforce implications may include the engagement of specialized consultants and potentially the strengthening of local capacity in partner countries through program implementation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type increases risk of cost overruns if not closely monitored.
Broad scope of 'Administrative Management and General Management Consulting Services' could lead to scope creep or unclear deliverables.
Reliance on a single contractor (RIOS PARTNERS, LLC) for a significant duration requires robust performance management.
Lack of specific performance metrics in the provided data makes it difficult to assess effectiveness proactively.

Positive Signals

Awarded through full and open competition with 8 bidders, indicating a healthy market and potential for competitive pricing.
Long contract duration (1680 days) suggests a strategic, long-term commitment to critical global health objectives.
The contract supports vital global health initiatives, aligning with national and international development priorities.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically management consulting. The global health market is a significant area of government spending, often involving complex partnerships and financing structures. Comparable spending benchmarks would depend on the specific nature of 'market access and innovative financing' services, but the $21 million value over nearly five years represents a substantial investment in this specialized consulting area.

Small Business Impact

The provided data indicates that this contract was not specifically set aside for small businesses (sb: false) and does not appear to have a small business subcontracting plan requirement (ss: false). Therefore, the direct impact on the small business ecosystem is likely minimal, with the primary award going to RIOS PARTNERS, LLC. Opportunities for small businesses would likely arise indirectly through potential subcontracting if RIOS PARTNERS, LLC chooses to engage them.

Oversight & Accountability

Oversight for this contract would primarily reside with the Agency for International Development (USAID). As a Time and Materials contract, rigorous oversight of labor hours, rates, and direct costs is crucial to ensure fair pricing and prevent overruns. USAID's contracting officers and program managers are responsible for monitoring performance, approving invoices, and ensuring deliverables meet contract requirements. Transparency would be facilitated through contract reporting mechanisms and potentially through USAID's public contract databases.

Related Government Programs

Global Health Security Agenda
USAID Global Health Bureau Programs
PEPFAR (President's Emergency Plan for AIDS Relief)
Millennium Challenge Corporation
Development Assistance Programs

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Risk of undefined scope leading to inefficiencies or unmet objectives.
Need for strong contract oversight to ensure value for money.
Contractor performance risk for a complex, long-term engagement.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $21.2 million to RIOS PARTNERS, LLC. MARKET ACCESS AND INNOVATIVE FINANCING FOR GLOBAL HEALTH

Who is the contractor on this award?

The obligated recipient is RIOS PARTNERS, LLC.

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 $21.2 million.

What is the period of performance?

Start: 2020-09-18. End: 2025-04-25.

What is the specific track record of RIOS PARTNERS, LLC in managing large-scale global health financing and market access contracts?

Assessing the specific track record of RIOS PARTNERS, LLC requires a deeper dive into their past performance history with USAID and other federal agencies. While the contract award itself indicates they were deemed capable, details regarding their success in similar complex global health financing and market access initiatives are crucial. This includes examining past contract performance evaluations, any reported issues or successes, and their experience navigating the unique challenges of international development funding and market dynamics. Without this specific data, it's difficult to definitively gauge their expertise and reliability for this particular $21 million engagement.

How does the $21.17 million contract value compare to similar global health consulting engagements by USAID or other agencies?

The $21.17 million contract value over approximately 4.6 years represents a significant investment in global health market access and financing consulting. To benchmark this effectively, one would need to compare it against contracts with similar scopes of work, duration, and objectives within the global health sector. Agencies like the Department of Health and Human Services (HHS), Centers for Disease Control and Prevention (CDC), and the Department of State also engage in global health initiatives. A direct comparison would involve analyzing the average annual spend for management consulting services related to international health programs, considering factors like the number of bidders, contract type (e.g., fixed-price vs. T&M), and the specific deliverables expected. The Time and Materials nature of this contract suggests a need for careful cost management relative to the value achieved.

What are the primary risks associated with a Time and Materials contract for global health market access and financing?

The primary risks associated with a Time and Materials (T&M) contract for global health market access and financing revolve around cost control and potential for scope creep. Unlike fixed-price contracts, T&M agreements pay the contractor for the actual time and materials used. This structure can lead to cost overruns if the project scope is not clearly defined or if contractor hours are not diligently monitored. For complex areas like global health financing, where challenges can be unpredictable, the T&M model necessitates robust oversight from USAID to ensure that hours billed are reasonable and necessary, and that the overall cost remains within budgetary expectations. There's also a risk that the contractor may be incentivized to extend project timelines to increase billable hours, potentially diminishing the value for taxpayer money if not managed effectively.

What specific performance metrics or KPIs are being used to measure the success of this contract?

The provided data does not specify the Key Performance Indicators (KPIs) or performance metrics used to measure the success of this contract. Typically, for a contract focused on 'Market Access and Innovative Financing for Global Health,' KPIs might include metrics related to the number of new market access pathways established, the amount of innovative financing leveraged (e.g., public-private partnerships, blended finance), the impact on the availability or affordability of health products in target regions, or the efficiency gains in program delivery. USAID's contract management would involve defining these metrics upfront and regularly assessing RIOS PARTNERS, LLC's performance against them to ensure the contract is delivering intended outcomes and value.

How does this contract align with USAID's broader strategic objectives in global health?

This contract directly aligns with USAID's overarching mission to advance global health and reduce poverty. By focusing on 'Market Access and Innovative Financing,' it addresses critical barriers that often hinder the effective delivery and sustainability of health programs in low- and middle-income countries. Improved market access can mean getting essential medicines and health technologies to those who need them most, while innovative financing mechanisms can unlock new sources of funding and create more sustainable health systems. This contract likely supports USAID's strategic goals related to areas such as maternal and child health, infectious disease control (like HIV/AIDS, malaria, TB), and health systems strengthening, ultimately contributing to improved health outcomes and resilience worldwide.

What is the historical spending pattern for similar administrative and management consulting services at USAID?

Historical spending patterns for administrative and management consulting services at USAID can vary significantly based on agency priorities and specific program needs. While the $21.17 million for this particular contract is substantial, it needs to be viewed within the context of USAID's overall budget for technical assistance and program support. Analyzing past spending on NAICS code 541611 (Administrative Management and General Management Consulting Services) would reveal trends in contract awards, average contract values, and the types of consulting services most frequently procured. This analysis could indicate whether this contract represents a typical investment or a notable increase/decrease in spending for such services, helping to contextualize its significance.

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

Solicitation ID: RFQ1428884/7200AA20Q00025

Offers Received: 8

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Rios Partners LLC

Address: 3100 CLARENDON BLVD STE 200, ARLINGTON, VA, 22201

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $39,380,681

Exercised Options: $39,141,061

Current Obligation: $21,173,691

Actual Outlays: $20,773,794

Subaward Activity

Number of Subawards: 30

Total Subaward Amount: $12,674,920

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QRAA18D00F8

IDV Type: FSS

Timeline