USAID's $48.4M health commodity technical assistance contract to Guidehouse LLP extended through November 2024

Contract Overview

Contract Amount: $48,384,155 ($48.4M)

Contractor: Guidehouse LLP

Awarding Agency: Agency for International Development

Start Date: 2016-06-10

End Date: 2024-11-09

Contract Duration: 3,074 days

Daily Burn Rate: $15.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::OT::IGF THE OVERALL OBJECTIVE OF TASK ORDER IS TO PROVIDE HEALTH COMMODITY TECHNICAL ASSITANCE TO USAID/TANZANIA, OTHER USG AGENCIES IN TANZANIA, THE GOVERNMENT OF TANZANIA, NON-GOVERNMENT ORGANISATIONS (NGOS) AND OTHER ETITIES ACCROSS ALL HEALTH ELEMENT (MALARIA, FAMILY PLANNING, HIV/AIDS, TB AND CHILD HEALTH)

Plain-Language Summary

Agency for International Development obligated $48.4 million to GUIDEHOUSE LLP for work described as: IGF::OT::IGF THE OVERALL OBJECTIVE OF TASK ORDER IS TO PROVIDE HEALTH COMMODITY TECHNICAL ASSITANCE TO USAID/TANZANIA, OTHER USG AGENCIES IN TANZANIA, THE GOVERNMENT OF TANZANIA, NON-GOVERNMENT ORGANISATIONS (NGOS) AND OTHER ETITIES ACCROSS ALL HEALTH ELEMENT (MALARIA, FAMILY PLA… Key points: 1. Contract provides broad health commodity technical assistance across multiple health elements. 2. Long duration suggests a sustained need for these specialized services. 3. Cost-plus-fixed-fee contract type allows for flexibility but requires careful cost monitoring. 4. Full and open competition indicates a potentially competitive bidding process. 5. No small business set-aside noted, potentially limiting opportunities for smaller firms. 6. Significant contract value warrants ongoing scrutiny of performance and value. 7. Task order structure allows for phased delivery and adaptation to evolving needs.

Value Assessment

Rating: fair

The contract's value of $48.4 million over its extended period (2016-2024) is substantial. Benchmarking this against similar health commodity technical assistance contracts is challenging without more specific service details. The cost-plus-fixed-fee structure necessitates close oversight to ensure costs remain reasonable and that the fixed fee is justified by the services rendered. Without detailed performance metrics and cost breakdowns, a definitive value-for-money assessment is difficult, but the extended duration suggests a perceived value by the agency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple qualified bidders had the opportunity to submit proposals. The presence of 3 bidders indicates a degree of competition, which is generally positive for price discovery and ensuring the government receives competitive offers. However, the specific details of the bidding process, including the number of proposals received and the evaluation criteria, are not provided, limiting a deeper analysis of the competitive intensity.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more favorable pricing and better service quality. It ensures that the government is not limited to a single provider and can leverage the market's capabilities.

Public Impact

Beneficiaries include USAID/Tanzania, other USG agencies in Tanzania, the Government of Tanzania, NGOs, and other entities. Services delivered encompass technical assistance across key health areas: malaria, family planning, HIV/AIDS, TB, and child health. Geographic impact is focused on Tanzania, supporting national health initiatives. Workforce implications include the potential for skilled technical experts to be engaged in critical health programs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can incentivize contractors to incur costs, requiring robust oversight to manage expenditures.
The long contract duration (8+ years) may indicate a lack of market competition for specialized services or a sustained, evolving need.
Lack of specific performance metrics makes it difficult to assess the effectiveness and efficiency of the technical assistance provided.
The broad scope of 'All Other Professional, Scientific, and Technical Services' can sometimes obscure the specific value delivered.

Positive Signals

Full and open competition suggests a structured procurement process that aimed for market-based solutions.
The contract supports critical health commodity technical assistance, addressing vital public health needs.
The extended duration implies a level of satisfaction with the contractor's performance over time.
Multiple health elements covered indicate a comprehensive approach to supporting the health sector.

Sector Analysis

This contract falls within the Professional, Scientific, and Technical Services sector, specifically NAICS code 541990 (All Other Professional, Scientific, and Technical Services). This broad category encompasses a wide range of specialized consulting and technical support services. The market for such services is often fragmented, with numerous firms offering expertise in specific areas like public health, logistics, and program management. The contract's value is significant within its niche, supporting critical USAID objectives in global health.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the procurement was open to all responsible sources, including large businesses. While this ensures a broad pool of potential contractors, it may limit direct opportunities for small businesses unless they are part of a subcontracting plan. The absence of specific subcontracting information makes it difficult to assess the extent to which small businesses will benefit from this contract.

Oversight & Accountability

Oversight for this contract would primarily reside with USAID's contracting officers and program officials. As a task order under a larger contract, oversight mechanisms would likely involve regular performance reviews, financial monitoring, and adherence to the terms of the cost-plus-fixed-fee agreement. The Inspector General's office for USAID would have jurisdiction for audits and investigations if any concerns regarding waste, fraud, or abuse arise. Transparency is facilitated through contract award databases, but detailed performance reports are typically internal.

Related Government Programs

USAID Global Health Supply Chain Program
USAID Health Sector Support Programs
PEPFAR Technical Assistance Contracts
Global Fund to Fight AIDS, Tuberculosis and Malaria Grants

Risk Flags

Cost-plus-fixed-fee contract requires diligent oversight to manage costs.
Broad service category may obscure specific performance metrics.
Lack of detailed performance data limits value assessment.
Long contract duration warrants review for continued necessity and market alternatives.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $48.4 million to GUIDEHOUSE LLP. IGF::OT::IGF THE OVERALL OBJECTIVE OF TASK ORDER IS TO PROVIDE HEALTH COMMODITY TECHNICAL ASSITANCE TO USAID/TANZANIA, OTHER USG AGENCIES IN TANZANIA, THE GOVERNMENT OF TANZANIA, NON-GOVERNMENT ORGANISATIONS (NGOS) AND OTHER ETITIES ACCROSS ALL HEALTH ELEMENT (MALARIA, FAMILY PLANNING, HIV/AIDS, TB AND CHILD HEALTH)

Who is the contractor on this award?

The obligated recipient is GUIDEHOUSE LLP.

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 $48.4 million.

What is the period of performance?

Start: 2016-06-10. End: 2024-11-09.

What is the specific breakdown of services provided under this task order and how do they align with USAID's strategic health objectives in Tanzania?

The task order aims to provide health commodity technical assistance to USAID/Tanzania, other USG agencies, the Government of Tanzania, NGOs, and other entities across malaria, family planning, HIV/AIDS, TB, and child health. This aligns with USAID's broader mission to improve health outcomes and strengthen health systems in partner countries. Specific services likely include supply chain management support, procurement technical assistance, policy development, capacity building for local health institutions, and data management related to health commodities. The exact nature and emphasis of these services would be detailed in the task order's statement of work, which is not provided here. However, the broad coverage indicates a comprehensive approach to ensuring the availability and effective use of essential health products.

How does the cost-plus-fixed-fee (CPFF) structure of this contract influence contractor performance and cost control?

The Cost-Plus-Fixed-Fee (CPFF) contract type allows the contractor to recover all allowable costs incurred, plus a predetermined fixed fee representing profit. This structure is often used when the scope of work is not precisely defined or when there is a high degree of uncertainty. For the contractor, it provides financial protection against unforeseen costs. For the government, the fixed fee provides a predictable profit margin. However, CPFF contracts can incentivize contractors to incur costs, as their fee is fixed regardless of the total cost. Therefore, robust government oversight is crucial to ensure that costs are reasonable, allocable, and allowable, and that the contractor is performing efficiently to achieve the contract objectives within the estimated cost.

What is the historical spending trend for this specific task order and comparable technical assistance contracts managed by USAID?

The data indicates a total award amount of $48,384,155 with an estimated completion date of November 9, 2024, and a start date of June 10, 2016. This suggests a consistent expenditure over the contract's duration. Without access to detailed annual spending reports, it's difficult to pinpoint exact historical trends. However, the substantial total award suggests significant annual outlays. To assess comparable spending, one would need to identify other USAID task orders or contracts providing similar health commodity technical assistance in other countries or regions, analyzing their award values, durations, and annual spending patterns to establish benchmarks for this type of service.

What are the key performance indicators (KPIs) used to evaluate Guidehouse LLP's performance on this contract?

The provided data does not specify the Key Performance Indicators (KPIs) used to evaluate Guidehouse LLP's performance. In a contract of this nature, KPIs would typically focus on the effective delivery of technical assistance across the specified health elements. Examples could include the successful implementation of supply chain improvements, the achievement of commodity availability targets, the successful transfer of knowledge and skills to local partners, adherence to project timelines, and client satisfaction ratings from USAID and partner government agencies. The effectiveness of the CPFF structure also relies on monitoring the contractor's efficiency and cost management against the planned budget.

How has the competition level (3 bidders) impacted the pricing and quality of services obtained for this contract?

With three bidders participating in the full and open competition, there was a moderate level of competition. This suggests that the government likely received multiple proposals offering different approaches and price points. A higher number of bidders generally correlates with more competitive pricing and potentially higher quality as contractors vie for the award. While three bidders indicate some market interest, it's not as robust as a competition with, for example, five or more significant offers. The impact on pricing and quality is difficult to quantify without knowing the specific bid amounts and the technical evaluations of each proposal. However, the presence of multiple bidders provides a basis for negotiation and ensures that the selected contractor's offer was deemed competitive.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Peraton Technology Services Inc.

Address: 2941 FAIRVIEW PARK DR STE 501, FALLS CHURCH, VA, 22042

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $48,566,799

Exercised Options: $48,566,799

Current Obligation: $48,384,155

Actual Outlays: $31,100,833

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: AIDOAAI1500032

IDV Type: IDC

Timeline