USAID's $32.7M Integrated Health Project contract awarded to Family Health International faces scrutiny over cost and competition

Contract Overview

Contract Amount: $32,721,917 ($32.7M)

Contractor: Family Health International

Awarding Agency: Agency for International Development

Start Date: 2013-12-01

End Date: 2018-11-30

Contract Duration: 1,825 days

Daily Burn Rate: $17.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Healthcare

Official Description: IGF::OT::IGF INTEGRATED HEALTH PROJECT

Plain-Language Summary

Agency for International Development obligated $32.7 million to FAMILY HEALTH INTERNATIONAL for work described as: IGF::OT::IGF INTEGRATED HEALTH PROJECT Key points: 1. The contract's cost-plus-fixed-fee structure may incentivize higher spending. 2. Lack of small business participation raises concerns about equitable opportunity. 3. The project's long duration (5 years) and significant value warrant close monitoring. 4. Competition method and pricing details require further examination for value for money.

Value Assessment

Rating: questionable

The Cost Plus Fixed Fee (CPFF) contract type, while common for R&D, can lead to cost overruns if not managed tightly. Benchmarking against similar public health program contracts is difficult without more detailed cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Awarded under full and open competition, the pricing discovery process relies on the initial proposal and subsequent negotiations. The CPFF structure, however, means the government bears the cost risk, potentially impacting the final price.

Taxpayer Impact: The significant taxpayer investment of $32.7 million requires assurance of efficient and effective program delivery to maximize public benefit.

Public Impact

Impacts global health initiatives funded by US taxpayers. Potential for improved health outcomes in targeted regions. Contractor performance directly influences program success and resource utilization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee structure
No small business participation
Long contract duration

Positive Signals

Full and open competition
Clear agency oversight (USAID)

Sector Analysis

This contract falls within the Public Health Programs sector, specifically focusing on integrated health initiatives. Spending in this area is critical for global development, but requires careful management to ensure funds are used effectively and achieve intended health outcomes.

Small Business Impact

The contract data indicates no small business participation (ss: false, sb: false). This suggests that opportunities for small businesses to contribute to this significant public health project were either not pursued or not realized, potentially limiting broader economic impact.

Oversight & Accountability

The Agency for International Development (USAID) is responsible for oversight. The contract's duration and cost structure necessitate robust monitoring to ensure performance objectives are met and funds are expended appropriately.

Related Government Programs

Administration of Public Health Programs
Agency for International Development Contracting
Agency for International Development Programs

Risk Flags

Cost Plus Fixed Fee contract type may lead to higher costs.
No indication of small business participation.
Long contract duration (5 years) increases risk exposure.
Potential for scope creep without strict management.
Performance metrics and value realization need close monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $32.7 million to FAMILY HEALTH INTERNATIONAL. IGF::OT::IGF INTEGRATED HEALTH PROJECT

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 $32.7 million.

What is the period of performance?

Start: 2013-12-01. End: 2018-11-30.

What specific health outcomes are expected from this $32.7M project, and how will they be measured to ensure value for taxpayer money?

The project aims to improve public health programs, likely focusing on areas such as maternal and child health, disease prevention, or health system strengthening. Success will be measured through key performance indicators (KPIs) related to health status improvements, service delivery reach, and system capacity building. Regular reporting and independent evaluations are crucial to verify these outcomes and ensure the significant investment yields tangible benefits.

Given the Cost Plus Fixed Fee structure, what mechanisms are in place to mitigate potential cost overruns and ensure the contractor remains incentivized to control expenses?

The CPFF structure places cost risk on the government. Mitigation strategies include rigorous baseline cost estimates, detailed budget reviews, performance-based milestones tied to fee payment, and regular audits. USAID's oversight team must actively monitor expenditures against the approved budget and ensure the fixed fee remains appropriate for the scope and risk involved.

How does the lack of small business participation impact the overall effectiveness and reach of the Integrated Health Project?

While not directly impacting health outcomes, the absence of small business participation could limit the project's reach into niche markets or specialized service areas where small businesses often excel. It also represents a missed opportunity for economic development and capacity building within the small business sector, which could indirectly support broader development goals.

Industry Classification

NAICS: Public Administration › Administration of Human Resource Programs › Administration of Public Health Programs

Product/Service Code: MEDICAL SERVICES › GENERAL HEALTH CARE SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

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: $32,721,917

Exercised Options: $32,721,917

Current Obligation: $32,721,917

Actual Outlays: $8,143

Subaward Activity

Number of Subawards: 27

Total Subaward Amount: $4,076,345

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline