USAID's $6.72B GHSC IDIQ for HIV/AIDS Aids Global Health Supply Chain Management

Contract Overview

Contract Amount: $6,723,916,685 ($6.7B)

Contractor: Chemonics International, Inc.

Awarding Agency: Agency for International Development

Start Date: 2015-04-20

End Date: 2026-11-28

Contract Duration: 4,240 days

Daily Burn Rate: $1.6M/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::CL::IGF - GHSC IDIQ - HIV/AIDS TO

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20003

State: District of Columbia Government Spending

Plain-Language Summary

Agency for International Development obligated $6.72 billion to CHEMONICS INTERNATIONAL, INC. for work described as: IGF::CL::IGF - GHSC IDIQ - HIV/AIDS TO Key points: 1. Significant investment in global health supply chain management, focusing on HIV/AIDS. 2. Chemonics International is the primary contractor, raising questions about vendor concentration. 3. Long contract duration (2015-2026) with substantial value indicates critical, ongoing need. 4. Administrative Management and General Management Consulting Services (NAICS 541611) is the sector. 5. The contract is awarded as a Delivery Order under a larger IDIQ.

Value Assessment

Rating: questionable

The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed tightly. Benchmarking against similar large-scale global health supply chain contracts is difficult due to the unique scope and duration.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process initially. However, as a Delivery Order under an IDIQ, subsequent task orders may have varying levels of competition.

Taxpayer Impact: The significant taxpayer investment aims to improve global health outcomes, particularly in combating HIV/AIDS, with the potential for substantial long-term benefits if effectively managed.

Public Impact

Impacts global access to essential HIV/AIDS medications and supplies. Supports health infrastructure and workforce development in recipient countries. Contributes to U.S. foreign policy objectives in global health security. Potential for improved health outcomes and reduced disease transmission.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type
Long contract duration
Single primary contractor (Chemonics International)
No small business participation noted

Positive Signals

Full and open competition award
Focus on critical global health issue (HIV/AIDS)
Significant investment in supply chain infrastructure

Sector Analysis

This contract falls within the Management and Consulting Services sector, specifically focusing on administrative and general management. The substantial value suggests a critical need for specialized expertise in managing complex global health supply chains, often exceeding typical benchmarks for this NAICS code.

Small Business Impact

There is no indication of small business participation in this contract, which is a concern given the scale and duration. Efforts should be made to ensure opportunities for small businesses within the subcontracting framework.

Oversight & Accountability

Oversight is crucial for a contract of this magnitude and duration. USAID's Inspector General and internal program offices should actively monitor performance, cost controls, and adherence to objectives to ensure accountability and prevent waste.

Related Government Programs

Administrative Management and General Management Consulting Services
Agency for International Development Contracting
Agency for International Development Programs

Risk Flags

Potential for cost overruns due to CPFF structure.
Lack of transparency in subcontracting and small business participation.
Contractor performance risk over a long duration.
Dependency on a single large contractor.
Ensuring long-term sustainability and local capacity building.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $6.72 billion to CHEMONICS INTERNATIONAL, INC.. IGF::CL::IGF - GHSC IDIQ - HIV/AIDS TO

Who is the contractor on this award?

The obligated recipient is CHEMONICS INTERNATIONAL, INC..

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 $6.72 billion.

What is the period of performance?

Start: 2015-04-20. End: 2026-11-28.

What is the specific breakdown of costs within the Cost Plus Fixed Fee structure, and how is the fixed fee determined and justified?

The Cost Plus Fixed Fee (CPFF) structure means the contractor is reimbursed for allowable costs plus a fixed fee representing profit. Understanding the breakdown requires detailed review of the contract's financial clauses and any negotiated ceilings. The fixed fee is typically negotiated based on the complexity, risk, and expected effort. Without access to the detailed contract financials, it's difficult to assess the justification and ensure it aligns with industry standards for similar services.

How effectively has Chemonics International managed the supply chain to achieve measurable improvements in HIV/AIDS treatment access and outcomes?

Assessing effectiveness requires analyzing performance metrics, delivery timelines, stock-out rates, and ultimately, the impact on patient access to treatment. While the contract's existence implies a recognized need and a chosen vendor, its true effectiveness hinges on consistent delivery of results against established benchmarks. Independent evaluations and reporting from the Agency for International Development are critical to gauge the actual impact on global health.

What are the long-term sustainability plans for the supply chain infrastructure and management capabilities built under this contract?

Sustainability is a key concern for development contracts. This involves transitioning management and operational responsibilities to local entities or host country governments where feasible. The contract's success should be measured not just by immediate delivery but by its contribution to building lasting capacity, reducing long-term U.S. reliance, and ensuring continued access to essential medicines beyond the contract's end date.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1275 NEW JERSEY AVE SE STE 200, WASHINGTON, DC, 20003

Business Categories: Category Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $7,560,230,299

Exercised Options: $7,560,230,299

Current Obligation: $6,723,916,685

Actual Outlays: $4,040,759,645

Subaward Activity

Number of Subawards: 1593

Total Subaward Amount: $5,234,467,386

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: AIDOAAI1500004

IDV Type: IDC

Timeline