Malaria Reduction Activity contract awarded to John Snow, Inc. for $29.9M to strengthen community-level prevention

Contract Overview

Contract Amount: $29,933,290 ($29.9M)

Contractor: John Snow, Incorporated

Awarding Agency: Agency for International Development

Start Date: 2022-02-09

End Date: 2027-02-08

Contract Duration: 1,825 days

Daily Burn Rate: $16.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: THE PURPOSE OF THE PRESIDENT'S MALARIA INITIATIVE (PMI) MALARIA REDUCTION ACTIVITY IS TO STRENGTHEN THE CAPACITY OF MALARIA PREVENTION AND OWNERSHIP OF HEALTH AT THE COMMUNITY AND HOUSEHOLD LEVELS, WHILE MAINTAINING GAINS MADE AT THE HEALTH FACI

Plain-Language Summary

Agency for International Development obligated $29.9 million to JOHN SNOW, INCORPORATED for work described as: THE PURPOSE OF THE PRESIDENT'S MALARIA INITIATIVE (PMI) MALARIA REDUCTION ACTIVITY IS TO STRENGTHEN THE CAPACITY OF MALARIA PREVENTION AND OWNERSHIP OF HEALTH AT THE COMMUNITY AND HOUSEHOLD LEVELS, WHILE MAINTAINING GAINS MADE AT THE HEALTH FACI Key points: 1. Contract focuses on community and household-level malaria prevention, aiming to sustain existing gains. 2. The award utilizes a Cost Plus Award Fee (CPAF) structure, incentivizing performance. 3. Competition was full and open, suggesting a robust market for these services. 4. The contract duration is five years, indicating a long-term commitment to malaria reduction efforts. 5. The North American Industry Classification System (NAICS) code 541690 points to specialized consulting services. 6. This initiative aligns with broader global health security objectives.

Value Assessment

Rating: good

The contract value of $29.9 million over five years for a malaria reduction activity appears reasonable given the scope of strengthening community and household-level health ownership. Benchmarking against similar global health initiatives suggests that this level of investment is typical for comprehensive, multi-year programs. The CPAF payment structure allows for flexibility and performance-based adjustments, which can lead to better value realization compared to fixed-price contracts if performance targets are met.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. This competitive process is expected to drive fair pricing and encourage innovative solutions. The presence of 8 bidders suggests a healthy market for these specialized scientific and technical consulting services, providing the agency with a range of options to select the most capable contractor.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more cost-effective solutions and better service delivery.

Public Impact

Beneficiaries include communities and households in malaria-endemic regions targeted by the program. Services delivered focus on strengthening local capacity for malaria prevention and ownership of health. The geographic impact is likely concentrated in countries receiving U.S. foreign assistance for malaria control. Workforce implications may include local employment opportunities for health workers and community mobilizers. The initiative contributes to global efforts to reduce malaria morbidity and mortality.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if award fees are consistently maximized without commensurate performance gains.
Dependency on sustained funding and political will for long-term program success.
Challenges in measuring and attributing direct impact on malaria reduction at the community level.

Positive Signals

Strong emphasis on community and household-level engagement, promoting sustainability.
Utilizes a performance-based payment structure (CPAF) to incentivize contractor effectiveness.
Awarded through full and open competition, suggesting a competitive market and potential for value.

Sector Analysis

This contract falls within the 'Other Scientific and Technical Consulting Services' sector, a broad category encompassing specialized expertise. The global health sector, particularly in areas like infectious disease control, represents a significant area of government spending. This contract fits within the broader framework of U.S. foreign assistance and global health security initiatives, aiming to address public health challenges in developing nations. Comparable spending benchmarks would involve looking at other USAID-funded health programs or international efforts by organizations like the Global Fund.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside. While John Snow, Inc. is a large business, the nature of the services may involve subcontracting opportunities for smaller firms specializing in specific technical areas or local implementation. Further analysis would be needed to determine the extent of small business participation through subcontracting.

Oversight & Accountability

Oversight for this contract is likely managed by the Agency for International Development (USAID), which awarded the contract. Mechanisms would include regular performance reviews, financial audits, and reporting requirements stipulated in the contract. Transparency is facilitated through contract award databases and potentially public reporting on program outcomes. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse.

Related Government Programs

President's Malaria Initiative (PMI)
Global Health Security Agenda
USAID Global Health Programs
PEPFAR (President's Emergency Plan for AIDS Relief) - as a related health initiative

Risk Flags

Potential for performance variability due to the CPAF structure.
Geopolitical instability in target regions could disrupt program implementation.
Challenges in demonstrating direct impact and attribution at the community level.
Risk of evolving malaria resistance to existing interventions.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $29.9 million to JOHN SNOW, INCORPORATED. THE PURPOSE OF THE PRESIDENT'S MALARIA INITIATIVE (PMI) MALARIA REDUCTION ACTIVITY IS TO STRENGTHEN THE CAPACITY OF MALARIA PREVENTION AND OWNERSHIP OF HEALTH AT THE COMMUNITY AND HOUSEHOLD LEVELS, WHILE MAINTAINING GAINS MADE AT THE HEALTH FACI

Who is the contractor on this award?

The obligated recipient is JOHN SNOW, INCORPORATED.

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 $29.9 million.

What is the period of performance?

Start: 2022-02-09. End: 2027-02-08.

What is the track record of John Snow, Inc. (JSI) in managing large-scale international health programs, particularly those focused on infectious disease control?

John Snow, Inc. (JSI) has a well-established track record in international public health, with extensive experience in managing complex, multi-year projects funded by USAID and other global health organizations. They have been involved in numerous initiatives related to infectious disease prevention and control, including malaria, HIV/AIDS, and maternal and child health, across various continents. JSI is known for its technical expertise in health systems strengthening, capacity building, and community engagement. Their history includes successfully implementing programs that aim to improve health outcomes at the national and sub-national levels, often working in challenging environments. This experience suggests a strong foundation for managing the President's Malaria Initiative (PMI) Malaria Reduction Activity, although specific performance metrics for past malaria-focused contracts would provide a more granular assessment.

How does the cost structure (Cost Plus Award Fee) of this contract compare to other similar global health initiatives managed by USAID?

The Cost Plus Award Fee (CPAF) structure is common for complex service contracts where performance outcomes are critical and can be objectively measured, but the exact costs may vary. For global health initiatives, USAID often uses a mix of contract types, including Cost Plus Fixed Fee (CPFF), Time and Materials (T&M), and CPAF. CPAF allows the contractor to recover allowable costs plus a base fee, with the potential for an award fee based on meeting or exceeding performance objectives. This structure incentivizes high performance and can lead to better value if the award fees are tied to significant achievements. Compared to a fixed-price contract, CPAF offers more flexibility in adapting to changing program needs but requires robust oversight to ensure costs remain reasonable and award fees are justified. The $29.9 million total contract value over five years for this malaria activity is within the typical range for large-scale, multi-country health programs managed by USAID.

What are the primary risks associated with implementing a community- and household-level malaria reduction program in developing countries, and how are they mitigated in this contract?

Key risks in such programs include logistical challenges in reaching remote communities, potential for community resistance or lack of engagement, political instability in target regions, corruption, and the emergence of drug-resistant malaria strains. Furthermore, accurately measuring the impact of interventions at the household level can be difficult. This contract, through its CPAF structure, incentivizes JSI to proactively manage these risks by achieving performance targets related to community engagement and program reach. USAID's oversight, including regular monitoring and evaluation, is crucial for identifying and mitigating risks. The contract's focus on strengthening local ownership and capacity aims to build resilience against external shocks and ensure sustainability, thereby addressing some of the long-term risks.

What historical spending patterns exist for malaria reduction activities funded by the U.S. government, and how does this contract fit within that trend?

The U.S. government, primarily through USAID and the President's Malaria Initiative (PMI), has been a major funder of global malaria control efforts for many years. Historical spending has been substantial, reflecting a long-term commitment to combating the disease. PMI alone has invested billions of dollars since its inception. This $29.9 million contract for the Malaria Reduction Activity is consistent with this historical trend of significant investment in malaria control. It represents a specific, targeted program within the broader PMI framework, focusing on strengthening community-level interventions, which is a recognized component of comprehensive malaria control strategies. The funding level appears proportionate to the program's objectives and duration within the context of overall U.S. global health spending.

How will the success of this malaria reduction activity be measured, and what are the key performance indicators (KPIs) likely to be used?

The success of this malaria reduction activity will likely be measured through a combination of quantitative and qualitative indicators, focusing on the strengthening of community and household-level capacity and the maintenance of prevention gains. Key Performance Indicators (KPIs) could include: the number of community health workers trained and actively engaged; the coverage of malaria prevention interventions (e.g., insecticide-treated nets distribution and correct usage); the proportion of households demonstrating knowledge of malaria transmission and prevention; the rate of early diagnosis and treatment seeking behavior; and potentially, trends in malaria case incidence and mortality at the community level, though direct attribution can be challenging. The CPAF structure implies that these KPIs will be clearly defined in the contract and will directly influence the award fee earned by John Snow, Inc.

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

Solicitation ID: 72061721R00002

Offers Received: 8

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Address: 44 FARNSWORTH ST FL 7, BOSTON, MA, 02210

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

Financial Breakdown

Contract Ceiling: $38,082,879

Exercised Options: $38,082,879

Current Obligation: $29,933,290

Actual Outlays: $21,623,462

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $1,764,554

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline