USAID's $272M Congolese Health Services Contract Awarded to ABT Global LLC Under Full and Open Competition

Contract Overview

Contract Amount: $272,475,275 ($272.5M)

Contractor: ABT Global LLC

Awarding Agency: Agency for International Development

Start Date: 2018-01-31

End Date: 2025-06-10

Contract Duration: 2,687 days

Daily Burn Rate: $101.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: OTHER FUNCTIONS:STRENGTHENING THE CAPACITY OF CONGOLESE INSTITUTIONS AND COMMUNITIES TO DELIVER QUALITY, INTEGRATED HEALTH SERVICES TO SUSTAINABLY IMPROVE THE HEALTH STATUS OF THE CONGOLESE POPULATION. THIS IS A COST-PLUS-FIXED-FEE (CPFF) CONTRACT OF SEVEN YEARS CONSISTING OF A FOUR (4) BASE AND THREE-YEAR(3) OPTION.

Plain-Language Summary

Agency for International Development obligated $272.5 million to ABT GLOBAL LLC for work described as: OTHER FUNCTIONS:STRENGTHENING THE CAPACITY OF CONGOLESE INSTITUTIONS AND COMMUNITIES TO DELIVER QUALITY, INTEGRATED HEALTH SERVICES TO SUSTAINABLY IMPROVE THE HEALTH STATUS OF THE CONGOLESE POPULATION. THIS IS A COST-PLUS-FIXED-FEE (CPFF) CONTRACT OF SEVEN YEARS CONSISTING OF A F… Key points: 1. Contract aims to improve health status in Congo through institutional and community capacity building. 2. ABT Global LLC is the sole awardee for this seven-year CPFF contract. 3. Spending is concentrated in 'Other Professional, Scientific, and Technical Services' (NAICS 541990). 4. The contract's significant value raises questions about long-term sustainability and impact measurement.

Value Assessment

Rating: questionable

The $272.5 million contract over seven years represents a substantial investment. Without specific benchmarks for similar international health capacity-building contracts, assessing its pricing efficiency is difficult. The CPFF structure incentivizes cost incurrence, requiring robust oversight.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the long duration and specialized nature of the services may limit the pool of truly comparable bids, potentially impacting price discovery.

Taxpayer Impact: Taxpayer funds are directed towards improving health infrastructure and services in the Democratic Republic of Congo, with the goal of long-term public health improvement.

Public Impact

Direct impact on healthcare delivery and access for Congolese citizens. Potential for strengthening local health systems and workforce capacity. Long-term implications for public health outcomes and disease management in the region. U.S. foreign aid investment in global health security and development.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of clear performance metrics for 'strengthening capacity'.
CPFF structure can lead to cost overruns if not tightly managed.
Long contract duration may not adapt to evolving health needs.
Limited information on ABT Global's specific track record in this region.

Positive Signals

Addresses critical health service needs in a developing nation.
Full and open competition promotes a fair selection process.
Long-term engagement allows for sustained impact and relationship building.

Sector Analysis

This contract falls under 'Other Professional, Scientific, and Technical Services,' a broad category. Spending benchmarks are difficult to establish due to the specialized nature of international health capacity building. The significant value suggests a large-scale, multi-faceted program.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Large prime contractors like ABT Global LLC may subcontract to small businesses, but this is not explicitly detailed in the provided information.

Oversight & Accountability

The Agency for International Development (USAID) is responsible for oversight. The CPFF contract type necessitates diligent monitoring of costs and performance to ensure funds are used effectively and efficiently towards stated goals.

Related Government Programs

All Other Professional, Scientific, and Technical Services
Agency for International Development Contracting
Agency for International Development Programs

Risk Flags

High contract value requires robust oversight.
CPFF structure necessitates careful cost management.
Long duration may pose adaptation challenges.
Measuring 'capacity strengthening' can be complex.
Potential for vendor lock-in due to specialized services.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $272.5 million to ABT GLOBAL LLC. OTHER FUNCTIONS:STRENGTHENING THE CAPACITY OF CONGOLESE INSTITUTIONS AND COMMUNITIES TO DELIVER QUALITY, INTEGRATED HEALTH SERVICES TO SUSTAINABLY IMPROVE THE HEALTH STATUS OF THE CONGOLESE POPULATION. THIS IS A COST-PLUS-FIXED-FEE (CPFF) CONTRACT OF SEVEN YEARS CONSISTING OF A FOUR (4) BASE AND THREE-YEAR(3) OPTION.

Who is the contractor on this award?

The obligated recipient is ABT GLOBAL 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 $272.5 million.

What is the period of performance?

Start: 2018-01-31. End: 2025-06-10.

How will the effectiveness of 'strengthening capacity' be measured over the seven-year contract period, and what are the key performance indicators (KPIs) for success?

Measuring the 'strengthening of capacity' requires clearly defined, quantifiable KPIs tied to specific institutional and community health functions. Examples could include increased number of healthcare workers trained, improved availability of essential medicines, reduced patient wait times, or higher vaccination rates. Regular performance reviews and independent evaluations would be crucial to track progress against these KPIs and ensure the contract delivers tangible, sustainable improvements in health service delivery.

What specific risks are associated with the Cost-Plus-Fixed-Fee (CPFF) structure in this context, and what mitigation strategies are in place?

The primary risk of a CPFF contract is the potential for cost overruns, as the contractor is reimbursed for allowable costs plus a fixed fee. If costs escalate due to inefficiencies or scope creep, the total contract value could exceed initial projections. Mitigation strategies include rigorous cost monitoring, clear definition of allowable costs, strong contract management by USAID, and performance incentives tied to cost control and efficiency.

Given the long contract duration, how will the program adapt to potential shifts in health priorities or political instability in the Democratic Republic of Congo?

Adapting to changing circumstances requires built-in flexibility within the contract and proactive engagement. USAID should implement mechanisms for regular reviews of the program's strategic direction based on evolving health needs and the local context. This could involve formal contract modification processes for significant shifts or incorporating adaptive management principles that allow for adjustments in activities and resource allocation based on real-time monitoring and feedback.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

Product/Service Code: RESEARCH AND DEVELOPMENT › N – Health R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: SOL-660-16-000009

Offers Received: 5

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 55 WHEELER ST, CAMBRIDGE, MA, 02138

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: $314,151,049

Exercised Options: $314,151,049

Current Obligation: $272,475,275

Actual Outlays: $247,651,923

Subaward Activity

Number of Subawards: 83

Total Subaward Amount: $41,612,893

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline