USAID's $25M contract for Indonesian health services awarded to Family Health International

Contract Overview

Contract Amount: $25,000,000 ($25.0M)

Contractor: Family Health International

Awarding Agency: Agency for International Development

Start Date: 2019-01-14

End Date: 2026-01-13

Contract Duration: 2,556 days

Daily Burn Rate: $9.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: HEA - TB PRIVATE SECTOR ACTIVITY (INDONESIA)

Plain-Language Summary

Agency for International Development obligated $25.0 million to FAMILY HEALTH INTERNATIONAL for work described as: HEA - TB PRIVATE SECTOR ACTIVITY (INDONESIA) Key points: 1. Contract aims to improve private sector engagement in health programs in Indonesia. 2. Focus on technical assistance and capacity building for local organizations. 3. Long-term contract duration suggests a strategic, ongoing need for these services. 4. Competition was full and open, indicating a broad search for qualified bidders. 5. Contract type is Cost Plus Fixed Fee, which can incentivize cost control but requires careful oversight. 6. The awardee, Family Health International, has a history of working on global health initiatives.

Value Assessment

Rating: good

The contract value of $25 million over approximately seven years appears reasonable for a large-scale international development project focused on health sector strengthening. Benchmarking against similar USAID contracts for technical assistance in developing countries suggests this is within the expected range. The Cost Plus Fixed Fee (CPFF) structure, while common, necessitates diligent monitoring to ensure costs remain controlled and the fixed fee is justified by the scope and complexity of services provided. Without specific performance metrics and cost breakdowns, a definitive value-for-money assessment is challenging, but the scale and duration imply a significant investment in achieving program objectives.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The presence of six bidders indicates a healthy level of interest and competition for this type of international development work. A competitive process like this generally leads to better price discovery and encourages offerors to propose innovative solutions and competitive pricing to win the award. The agency likely benefited from a range of technical approaches and cost proposals.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for public funds by driving down costs and improving the quality of services delivered.

Public Impact

Indonesian citizens will benefit from improved health services and access to care. Local health organizations and private sector entities in Indonesia will receive capacity building and technical assistance. The program's geographic impact is national within Indonesia, aiming for widespread improvements. Local health sector workforce development is an implied benefit through enhanced training and support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in CPFF contracts if not rigorously managed.
Ensuring effective transfer of knowledge and sustainable capacity building within local organizations.
Measuring the direct impact of private sector engagement on health outcomes can be complex.

Positive Signals

Award to an experienced organization (Family Health International) with a proven track record in global health.
Full and open competition suggests a robust selection process and potential for innovative solutions.
Long contract duration allows for sustained impact and deep engagement with local partners.

Sector Analysis

This contract falls within the broader professional, scientific, and technical services sector, specifically focusing on international development and public health. The market for such services is global, with numerous organizations specializing in health system strengthening, policy development, and program implementation in developing countries. USAID is a major procurer in this space, often seeking to leverage private sector expertise and resources to achieve development goals. Comparable spending benchmarks would involve looking at other USAID or similar donor-funded health projects in Southeast Asia or other regions with similar development challenges.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. While the prime contractor is Family Health International, a large organization, there may be opportunities for small businesses to participate as subcontractors. The extent of small business subcontracting would depend on the prime contractor's strategy and the specific needs of the program. Further analysis would be required to determine the impact on the small business ecosystem.

Oversight & Accountability

USAID typically employs robust oversight mechanisms for its contracts, including regular reporting requirements, site visits, and performance evaluations. The contract's Cost Plus Fixed Fee structure necessitates close financial oversight to ensure costs are reasonable and allocable. Transparency is generally maintained through public contract databases, though specific performance data might be internal. The Inspector General's office for USAID would have jurisdiction over audits and investigations related to potential fraud, waste, or abuse.

Related Government Programs

USAID Global Health Bureau Programs
USAID Indonesia Country Development Cooperation Strategy
Public-Private Partnerships for Health Initiatives
Health Systems Strengthening Programs
International Health Technical Assistance Contracts

Risk Flags

Cost Control Risk (CPFF)
Performance Measurement Complexity
Geopolitical Instability Risk (Indonesia)
Sustainability of Program Interventions

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $25.0 million to FAMILY HEALTH INTERNATIONAL. HEA - TB PRIVATE SECTOR ACTIVITY (INDONESIA)

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 $25.0 million.

What is the period of performance?

Start: 2019-01-14. End: 2026-01-13.

What is Family Health International's track record with USAID and similar international health contracts?

Family Health International (FHI 360, which FHI is likely part of or a predecessor) has a substantial track record working with USAID and other international development agencies on global health initiatives. They have managed numerous large-scale projects focused on areas such as maternal and child health, infectious disease control (including HIV/AIDS), health systems strengthening, and health policy. Their experience often involves working in complex environments and collaborating with local governments, NGOs, and private sector entities. This extensive background suggests they possess the institutional capacity, technical expertise, and established networks necessary to effectively implement a contract of this scope and complexity in Indonesia.

How does the $25 million contract value compare to similar USAID health programs in Indonesia or the region?

The $25 million contract value for a seven-year health program in Indonesia is within the expected range for large-scale USAID initiatives. USAID often awards multi-year contracts in the tens of millions of dollars for strategic objectives like health system strengthening or disease control in key countries. For instance, similar programs focusing on HIV/AIDS, tuberculosis, or maternal health in other large developing nations have seen awards in this magnitude. The specific value is influenced by the breadth of activities, the number of implementing partners, and the overall strategic goals set by USAID for the Indonesian context. Without direct comparisons of identical program scopes, it's reasonable to consider this a significant but not unusually high investment for the intended impact.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this nature?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract, like this one, revolve around cost control and ensuring value for money. While the fixed fee provides the contractor with an incentive to manage costs efficiently to maximize profit, there's a risk that costs could escalate beyond initial projections, potentially leading to budget overruns if not carefully monitored. The agency must ensure that all costs claimed are reasonable, allocable, and allowable according to the contract terms. Another risk is ensuring the contractor maintains a strong focus on achieving the program's objectives rather than simply incurring costs to justify the fee. Robust oversight, clear performance metrics, and regular audits are crucial to mitigate these risks.

What are the expected program effectiveness indicators for this contract?

While specific indicators are not detailed in the provided data, programs of this nature typically aim to improve key health outcomes and strengthen the health system. Expected indicators likely include increased access to and utilization of health services, improved quality of care, enhanced capacity of local health organizations and private sector actors, and potentially measurable improvements in specific health areas (e.g., reduced maternal mortality, increased vaccination rates, better management of chronic diseases). The contract's focus on private sector activity suggests indicators related to increased private sector investment in health, improved regulatory environments for private health providers, and greater public-private collaboration. USAID's monitoring and evaluation framework would define precise, measurable indicators.

How has USAID's spending on health programs in Indonesia trended historically?

USAID has historically been a significant funder of health programs in Indonesia, reflecting the country's large population and ongoing development needs. Spending has often focused on critical areas such as infectious disease control (HIV/AIDS, TB, malaria), reproductive and maternal health, and strengthening the overall health system. While specific year-over-year spending figures require access to detailed historical budget and obligation data, USAID's commitment to the health sector in Indonesia has been consistent over the years, adapting to evolving public health challenges and national priorities. This $25 million contract represents a substantial, long-term investment aligning with this historical pattern of support.

What is the significance of 'All Other Professional, Scientific, and Technical Services' (NAICS 541990) for this contract?

The NAICS code 541990, 'All Other Professional, Scientific, and Technical Services,' is a broad category that encompasses a wide range of specialized services not classified elsewhere. For this contract, it signifies that the services provided by Family Health International are diverse and may include elements of research, consulting, program management, technical assistance, and advisory services related to health, but do not fit neatly into more specific categories like 'Management Consulting Services' or 'Environmental Consulting Services.' This broad classification allows flexibility in the scope of work, enabling the contractor to address multifaceted challenges in improving Indonesia's health sector through various professional and technical means.

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: SEALED BID

Solicitation ID: 72049718R00012

Offers Received: 6

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: $25,000,000

Exercised Options: $25,000,000

Current Obligation: $25,000,000

Actual Outlays: $21,106,062

Subaward Activity

Number of Subawards: 18

Total Subaward Amount: $2,026,938

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline