USAID Spends $47.5M on South African Public Health Supply System Technical Assistance via Full and Open Competition

Contract Overview

Contract Amount: $47,505,128 ($47.5M)

Contractor: Guidehouse LLP

Awarding Agency: Agency for International Development

Start Date: 2016-10-01

End Date: 2024-02-27

Contract Duration: 2,705 days

Daily Burn Rate: $17.6K/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 THE PURPOSE OF THIS TASK ORDER (TO) IS TO PROVIDE TECHNICAL ASSISTANCE IN STRENGTHENING THE SOUTH AFRICAN PUBLIC HEALTH SUPPLY SYSTEM. THIS TO WILL SERVE THE HEALTH COMMODITY TECHNICAL ASSISTANCE NEEDS OF USAID, OTHER USG AGENCIES, THE SOUTH AFRICAN GOVERNMENT, NON-GOVERNMENTAL ORGANIZATIONS (NGOS), AND OTHER ENTITIES ACROSS ALL HEALTH ELEMENTS (E.G. FAMILY PLANNING/REPRODUCTIVE HEALTH, HIV/AIDS, TB).

Plain-Language Summary

Agency for International Development obligated $47.5 million to GUIDEHOUSE LLP for work described as: IGF::OT::IGF THE PURPOSE OF THIS TASK ORDER (TO) IS TO PROVIDE TECHNICAL ASSISTANCE IN STRENGTHENING THE SOUTH AFRICAN PUBLIC HEALTH SUPPLY SYSTEM. THIS TO WILL SERVE THE HEALTH COMMODITY TECHNICAL ASSISTANCE NEEDS OF USAID, OTHER USG AGENCIES, THE SOUTH AFRICAN GOVERNMENT, NON-G… Key points: 1. The contract focuses on strengthening the South African public health supply system, supporting multiple USG agencies and local entities. 2. Competition was full and open, suggesting a robust price discovery process. 3. The contract duration is extensive (2705 days), indicating a long-term need for technical assistance. 4. The sector is primarily public health supply chain management within the healthcare domain.

Value Assessment

Rating: fair

The contract is a Cost Plus Fixed Fee type, which can lead to higher costs if not managed carefully. Without specific benchmarks for similar technical assistance contracts in public health supply chains, a precise value assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which generally promotes competitive pricing. The fixed fee component, however, means the government pays the actual costs plus a predetermined fee, which may not always result in the lowest possible price.

Taxpayer Impact: Taxpayer funds are being used to improve a critical public health infrastructure in South Africa, potentially leading to better health outcomes and more efficient resource allocation.

Public Impact

Enhances the capacity of South Africa's public health supply chain, impacting the availability of essential medicines and health commodities. Supports multiple US government agencies and international partners in their global health initiatives. Aims to improve the efficiency and effectiveness of health programs, potentially saving lives and reducing disease burden.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize cost overruns if not closely monitored.
Long contract duration may require periodic reviews to ensure continued relevance and efficiency.
Lack of specific performance metrics makes it hard to gauge the direct impact of the technical assistance.

Positive Signals

Full and open competition suggests a commitment to achieving best value.
Broad scope of support across various health elements indicates a comprehensive approach.
Collaboration with the South African government fosters local ownership and sustainability.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically supporting public health infrastructure. Benchmarks for technical assistance in developing countries' health systems vary widely based on scope and duration.

Small Business Impact

The data indicates that small businesses were not directly involved in this specific task order, as it was awarded to Guidehouse LLP. Further analysis would be needed to determine if small businesses were subcontracted.

Oversight & Accountability

The Agency for International Development (USAID) is responsible for overseeing this task order. The extensive duration and cost necessitate robust oversight to ensure funds are used effectively and objectives are met.

Related Government Programs

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

Risk Flags

Cost Plus Fixed Fee contract type
Long contract duration (over 7 years)
Lack of specific performance metrics in the provided data
Potential for cost overruns without stringent oversight

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $47.5 million to GUIDEHOUSE LLP. IGF::OT::IGF THE PURPOSE OF THIS TASK ORDER (TO) IS TO PROVIDE TECHNICAL ASSISTANCE IN STRENGTHENING THE SOUTH AFRICAN PUBLIC HEALTH SUPPLY SYSTEM. THIS TO WILL SERVE THE HEALTH COMMODITY TECHNICAL ASSISTANCE NEEDS OF USAID, OTHER USG AGENCIES, THE SOUTH AFRICAN GOVERNMENT, NON-GOVERNMENTAL ORGANIZATIONS (NGOS), AND OTHER ENTITIES ACROSS ALL HEALTH ELEMENTS (E.G. FAMILY PLANNING/REPRODUCTIVE HEALTH, HIV/AIDS, TB).

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 $47.5 million.

What is the period of performance?

Start: 2016-10-01. End: 2024-02-27.

What specific technical assistance activities are being provided, and how are they measured for effectiveness?

The task order aims to provide technical assistance in strengthening the South African public health supply system across various health elements. Specific activities could include capacity building, process improvement, and system design. Effectiveness is typically measured through key performance indicators related to supply chain efficiency, commodity availability, and program outcomes, though these are not detailed in the provided data.

What are the potential risks associated with a Cost Plus Fixed Fee contract for long-term technical assistance in a complex environment?

Cost Plus Fixed Fee contracts carry the risk of cost escalation if the government does not rigorously monitor expenditures and contractor performance. In a complex environment like a public health supply system, unforeseen challenges can increase costs. The fixed fee component, while providing some cost certainty, might not adequately incentivize efficiency if the base cost is inflated or poorly managed.

How does this investment contribute to the long-term sustainability of South Africa's health system beyond the contract period?

The investment's sustainability hinges on the capacity building and system strengthening components. Effective technical assistance should empower local stakeholders and institutions to manage and improve the supply chain independently. The goal is to transfer knowledge and implement robust systems that continue to function effectively after the contract concludes, reducing reliance on external support.

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

Solicitation ID: SOL-674-16-000022

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

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: $52,543,344

Exercised Options: $52,543,344

Current Obligation: $47,505,128

Actual Outlays: $26,327,082

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