Over $153 million contract to John Snow, Inc. for global health initiatives, focusing on HIV/AIDS and nutrition

Contract Overview

Contract Amount: $153,725,246 ($153.7M)

Contractor: John Snow, Incorporated

Awarding Agency: Agency for International Development

Start Date: 2017-04-03

End Date: 2024-02-07

Contract Duration: 2,501 days

Daily Burn Rate: $61.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::CL::IGF SUPPORTING AN AIDS-FREE ERA (SAFE) TO REDUCE HIV MORTALITY, MORBIDITY AND TRANSMISSION, WHILE IMPROVING NUTRITION OUTCOMES AND FAMILY PLANNING INTEGRATION IN THE SIX USAID-SUPPORTED PROVINCES AS DETAILED IN SECTION C, STATEMENT OF WORK.

Plain-Language Summary

Agency for International Development obligated $153.7 million to JOHN SNOW, INCORPORATED for work described as: IGF::CL::IGF SUPPORTING AN AIDS-FREE ERA (SAFE) TO REDUCE HIV MORTALITY, MORBIDITY AND TRANSMISSION, WHILE IMPROVING NUTRITION OUTCOMES AND FAMILY PLANNING INTEGRATION IN THE SIX USAID-SUPPORTED PROVINCES AS DETAILED IN SECTION C, STATEMENT OF WORK. Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 2501 days indicates a long-term commitment to the program. 3. The definitive contract type suggests a broad scope of work with potential for modifications. 4. Focus on HIV/AIDS, nutrition, and family planning highlights critical global health priorities. 5. The contract's geographic focus on six USAID-supported provinces points to targeted development efforts. 6. The contractor, John Snow, Inc., has a significant role in implementing global health programs.

Value Assessment

Rating: good

The contract value of over $153 million over approximately seven years represents a substantial investment in global health. Benchmarking this against similar large-scale international development contracts is challenging without more specific service details. However, the cost-plus-fixed-fee structure implies that costs are reimbursed, with a fixed fee for profit, which can be efficient for complex, evolving projects but requires careful cost oversight. The value proposition hinges on the successful reduction of HIV mortality, morbidity, and transmission, alongside improved nutrition and family planning outcomes in the target provinces.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 5 bids suggests a healthy level of interest and competition for this significant global health initiative. A competitive process like this generally leads to better price discovery and potentially more innovative solutions as contractors vie for the award.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for funds allocated to critical global health programs. Competition helps ensure that the allocated funds are used efficiently and effectively to achieve the program's objectives.

Public Impact

Beneficiaries include populations in six USAID-supported provinces facing challenges with HIV/AIDS, malnutrition, and family planning. Services delivered encompass HIV/AIDS prevention, treatment, and support, alongside nutrition interventions and family planning integration. Geographic impact is concentrated in specific provinces, allowing for focused resource allocation and measurable outcomes. Workforce implications include the potential for local employment in program implementation and support roles within the target provinces.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns in cost-plus-fixed-fee contracts if not rigorously managed.
Ensuring sustained impact and long-term sustainability of health programs beyond the contract period.
Measuring and attributing specific health outcomes directly to contract activities can be complex.
Geopolitical or local instability in the six supported provinces could disrupt program delivery.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
Long contract duration allows for sustained program implementation and impact.
Focus on critical, high-impact global health areas (HIV/AIDS, nutrition, family planning).
Contractor's experience in global health likely contributes to effective program execution.

Sector Analysis

This contract falls within the International Affairs and Global Health sector, a critical area for development assistance. The market for such services is characterized by large, specialized non-profit organizations and government contractors with extensive experience in international development and public health. Spending in this sector is driven by foreign policy objectives, humanitarian aid, and efforts to address global health crises. Comparable spending benchmarks would involve looking at other large USAID or global health security contracts.

Small Business Impact

The data indicates that small business participation was not a primary set-aside criterion for this contract (sb: false). While there is no explicit small business set-aside, the prime contractor, John Snow, Inc., may engage small businesses as subcontractors to fulfill specific needs or reach local communities. The impact on the small business ecosystem would depend on the extent of any subcontracting opportunities created.

Oversight & Accountability

Oversight for this contract would primarily be conducted by the U.S. Agency for International Development (USAID), likely through its contracting officers and program officials. Accountability measures would be embedded in the contract's performance work statement, requiring regular reporting on progress, financial expenditures, and achievement of key performance indicators. Transparency is typically managed through contract reporting requirements and public availability of contract awards, though detailed program implementation data may be less accessible.

Related Government Programs

PEPFAR (President's Emergency Plan for AIDS Relief)
Global Fund to Fight AIDS, Tuberculosis and Malaria
USAID Global Health Bureau programs
Nutrition-specific development assistance
Family Planning and Reproductive Health initiatives

Risk Flags

Cost-Plus-Fixed-Fee contract type requires diligent cost oversight.
Program effectiveness dependent on stability and infrastructure in target provinces.
Measuring direct impact of complex health interventions can be challenging.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $153.7 million to JOHN SNOW, INCORPORATED. IGF::CL::IGF SUPPORTING AN AIDS-FREE ERA (SAFE) TO REDUCE HIV MORTALITY, MORBIDITY AND TRANSMISSION, WHILE IMPROVING NUTRITION OUTCOMES AND FAMILY PLANNING INTEGRATION IN THE SIX USAID-SUPPORTED PROVINCES AS DETAILED IN SECTION C, STATEMENT OF WORK.

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 $153.7 million.

What is the period of performance?

Start: 2017-04-03. End: 2024-02-07.

What is the track record of John Snow, Inc. in managing large-scale international health contracts?

John Snow, Inc. (JSI) has a long and established track record in global health and international development. They are a well-known implementer of USAID-funded projects, as well as programs supported by other international donors and foundations. JSI has extensive experience in areas such as HIV/AIDS prevention and treatment, maternal and child health, nutrition, infectious disease control, and health systems strengthening across numerous countries. Their history includes managing complex, multi-year, multi-million dollar contracts similar to the SAFE initiative. This experience suggests a strong capacity for program management, technical expertise, and navigating the operational challenges of working in diverse international settings. Their longevity and continued success in securing competitive awards are indicative of a reliable performance history.

How does the cost-plus-fixed-fee (CPFF) contract structure compare to other award types for similar global health initiatives?

The Cost-Plus-Fixed-Fee (CPFF) structure is common for large, complex, and often long-term projects in international development and R&D where the scope may evolve or be difficult to precisely define upfront. In a CPFF contract, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. This contrasts with fixed-price contracts, where the price is set regardless of the final cost, offering more cost certainty to the buyer but potentially higher risk for the contractor. For global health initiatives like SAFE, CPFF allows flexibility to adapt to changing health landscapes, local conditions, or emerging needs without constant renegotiation of the base price. However, it places a greater burden on the awarding agency (USAID, in this case) to meticulously monitor and audit costs to ensure they are reasonable and allocable. Other structures like Cost-Plus-Incentive-Fee (CPIF) could also be used, offering incentives for cost savings or performance targets, but CPFF provides a stable profit margin for the contractor.

What are the primary risks associated with implementing a program of this scale in developing regions?

Implementing a large-scale health program like SAFE in developing regions carries several inherent risks. Political instability or changes in government policy within the six supported provinces can disrupt program continuity and funding. Logistical challenges, including poor infrastructure (roads, communication), can impede the delivery of supplies, personnel, and services. Local cultural norms and community acceptance can influence the uptake of health services, requiring sensitive and context-specific approaches. Furthermore, the risk of corruption or mismanagement of funds at various levels, from national to local, is a persistent concern in some regions. Health system weaknesses, such as a shortage of trained healthcare workers or inadequate facilities, can limit the program's reach and effectiveness. Finally, the emergence of new health threats or the evolution of existing ones (like drug-resistant strains of HIV) can necessitate rapid adaptation, posing an operational risk.

How is the success of the SAFE program measured, and what are the key performance indicators?

The success of the SAFE program is measured against specific objectives outlined in the Statement of Work (SOW) and detailed in the contract's Performance Work Statement (PWS). Key performance indicators (KPIs) would likely include quantitative targets related to reducing HIV mortality, morbidity, and transmission rates within the target provinces. This could involve metrics such as the number of individuals receiving HIV testing and counseling, the percentage of those testing positive who are initiated on antiretroviral therapy (ART), and the viral load suppression rates among patients on ART. For nutrition, KPIs might focus on reducing stunting and wasting rates in children under five, increasing access to micronutrient supplements, and improving dietary diversity scores. Family planning integration would be measured by indicators like the increase in modern contraceptive prevalence rates and the number of individuals accessing family planning counseling and services. USAID would monitor these KPIs through regular progress reports submitted by John Snow, Inc., site visits, and potentially independent evaluations.

What is the historical spending trend for similar USAID global health initiatives over the past five years?

USAID's global health spending has historically been substantial and focused on key areas like HIV/AIDS (often through initiatives like PEPFAR), maternal and child health, infectious disease control, and nutrition. Over the past five years, while specific program allocations fluctuate based on global health priorities and congressional appropriations, there has been a sustained commitment to these areas. Spending on HIV/AIDS, though evolving as programs shift towards sustainability, remains a significant portion of the global health budget. Investments in nutrition and family planning have also seen consistent funding, reflecting their critical role in overall health outcomes and development. The trend generally shows a move towards strengthening local health systems and increasing country ownership, alongside direct service delivery. Large, multi-year contracts like the SAFE initiative are typical mechanisms for implementing these broad-reaching programs, indicating consistent demand for such services.

Industry Classification

NAICS: Public Administration › National Security and International Affairs › International Affairs

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: SOL-611-16-000001

Offers Received: 5

Pricing Type: COST PLUS FIXED FEE (U)

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: $153,803,346

Exercised Options: $153,803,346

Current Obligation: $153,725,246

Actual Outlays: $112,398,695

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline