7200AA22R00011 Integrated PSA RFP Amendment 0001.pdf

Solicitation Type: Request for Proposals (RFP)

Product or Service Code PSC: R499 / NAICS: 541614

Solicitation Issuance Date: 3/14/2022

Closing Date/Time for Offeror Questions: 3/28/2022

Closing Date/Time for the Past Performance Sub-Volume [Technical Annexes M (Past

Performance Information Forms) and Annex N (Performance in Using Small Business (SB)

Concerns)]: 5/13/2022 12:00 PM EDT

Closing Date and Time for Receipt of Proposals: 6/13/2022 12:00 PM EDT

Subject: Request for Proposals (RFP) No. 7200AA22R00011

Integrated Procurement Service Agent (PSA) Indefinite-Delivery/Indefinite-

Quantity (IDIQ) within the Next Generation Global Health Supply Chain Suite of Programs (NextGen)

Task Order 1

Task Order 2

The United States Agency for International Development (USAID) is seeking proposals to provide procurement and delivery services for commodities for malaria; infectious disease response; family planning and reproductive health (FP/RH); maternal and child health and nutrition (MCHN); and other health elements for USAID’s Bureau for Global Health (GH) as described in the attached Request for Proposals (RFP). USAID anticipates a single award for up to a ten-year Indefinite

Delivery, Indefinite Quantity Contract (IDIQ). Immediately after awarding the IDIQ contract, two Task Orders will be awarded - one for malaria and infectious disease outbreak commodities that is a Cost Plus Award Fee (CPAF) contract and one for FP/RH, MCHN health commodities that is a Cost Plus Award Fee (CPAF) contract. As this is a single award IDIQ contract, this is not a small business concern set aside. Please see Attachments J.2 - J.3 for additional information on each Task Order.

The NAICS code for this procurement is 541614. Any additional task orders (o ther than Task Order 1 and Task Order 2) will be placed in accordance with Section F Ordering procedures. The authorized geographic code for this IDIQ is 935.

USAID anticipates this will be a Single Award Indefinite Delivery/Indefinite Quantity (IDIQ) Contract with an overall ceiling price of $4.1 Billion. The maximum aggregate dollar value of the task orders awarded cannot exceed this contract ceiling. There is no guarantee on the number of task orders that the successful contractor will receive or the amount of money beyond the minimum order guarantee set forth in the RFP.

RFP No. 7200AA22R00011

Amendment 0001

Integrated Procurement Service Agent (PSA)

Next Generation Global Health Supply Chain Suite of Programs (NextGen)

Please refer to Section L for information regarding proposal requirements. Offerors should take into account the expected delivery time required by the proposal transmission method they choose, and they are responsible for ensuring proposals are received at USAID by the due date and time as specified in Section L. Please note that the Past Performance Information Forms and Performance in Using Small Business (SB) Concerns (applies to large businesses only) are due earlier than the rest of the technical and cost proposal; and must be submitted as one sub-volume by the prime offeror (for both the prime and the major subcontractors). Failure to comply with the submission date will deem any submission unacceptable and it will not be reviewed or evaluated.

Section L of the RFP sets forth all instructions for the preparation and submission of required proposal contents. Prospective offerors must submit questions, past performance information , and proposal submissions by email to IntegratedPSANextGen@usaid.gov, by the time and dates indicated above.

Section M states the criteria by which proposals will be evaluated. Offerors must request explanations or interpretations in writing; oral statements will not be binding. This procurement utilizes the tradeoff process set forth in FAR 15.101-1.

This RFP in no way obligates USAID to award a contract nor does it commit USAID to pay any cost incurred in the preparation and submission of a proposal. Award of a Contract under this RFP is subject to availability of funds and other internal USAID approvals.

This RFP can be viewed and downloaded from sam.gov. USAID bears no responsibility for data errors resulting from transmission or conversion processes. Further, be aware that amendments to solicitations are occasionally issued and will be posted on the same website from which you downloaded the solicitation. USAID advises to regularly check the above website for amendments.

The Offeror is encouraged to consult the GHSC website <https://www.ghsupplychain.org> for details about the content, coverage, history, publications including the USAID Product Catalog, and accomplishments of the GHSC Program.

Sincerely, Alisa J. Dunn Supervisory Contracting Officer, USAID mailto:integratedpsamalarianextgen@usaid.gov https://www.ghsupplychain.org/

Integrated Procurement Service Agent (PSA)

Next Generation Global Health Supply Chain Suite of Programs (NextGen)

PART I - THE SCHEDULE

SECTION A - SOLICITATION/CONTRACT FORM

Integrated Procurement Service Agent (PSA)

Next Generation Global Health Supply Chain Suite of Programs (NextGen)

DEFINITIONS AND DISCLOSURES

Throughout the Statement of Work (SOW), the terms “Offeror” and “Contractor” are used purposefully to signify the status of an entity prior to and after award of the resulting contract.

Therefore, all content related to an “Offeror” should be considered by an entity in their proposal preparation; while content related to a “Contractor” is informational and refers to activities or responsibilities performed by the successful Offeror after award.

Within this RFP, the term “Offeror” refers to the prime offeror plus proposed subcontractors, unless noted otherwise in specific instances.

In this document, ‘health commodities’ includes medicines, vaccines/biologics, and other health technologies, including supplies, devices and diagnostics.

In this document, “Task Order 1” refers to the Task Order for services under this IDIQ with the primary focus of procuring and delivering health commodities for the U.S. President's Malaria Initiative (PMI), USAID’s malaria programs and the Global Health Security (GHS) program. “Task Order 2” refers to the Task Order for services under this IDIQ with the primary focus of procuring and delivering health commodities for the Family Planning and Reproductive Health (FP/RH) program as well as the Maternal and Child Health and Nutrition (MCHN) program.

Best value is defined in FAR Subpart 2.101 as "the expected outcome of an acquisition that, in the Government's estimation, provides the greatest overall benefit in response to the requirement.”

The Offeror is encouraged to consult the GHSC website <https://www.ghsupplychain.org> for details about the content, coverage, history, publications, and accomplishments of the GHSC Program.

Major subcontractors are those expected to incur at least 15% of the total estimated cost of the contract (excluding the commodities plug figure).

https://www.ghsupplychain.org/

Integrated Procurement Service Agent (PSA)

Next Generation Global Health Supply Chain Suite of Programs (NextGen)

SECTION B - SUPPLIES OR SERVICES AND PRICE/COSTS

B.1 PURPOSE

The purpose of this contract is to provide services that fall within the Scope of Work (SOW) specified in Section C for Integrated Procurement Service Agent (PSA) within the Next Generation Global Health Supply Chain Suite of Programs (NextGen). USAID Task Order Contracting Officers (TOCOs) will request the work through the issuance of task orders during the ordering period as specified in Section F of the contract.

B.2 CONTRACT TYPE AND SERVICES

This is a Single Award Indefinite Delivery Indefinite Quantity contract (IDIQ) utilizing individual task orders to provide procurement and delivery services for commodities. The Government will issue task orders that are either Cost-Plus-Award-Fee (CPAF), Cost-Plus-Incentive-Fee (CPIF), Cost-Plus-Fixed-Fee (CPFF) (term or completion) or Firm-Fixed-Price (FFP) or a combination thereof.

B.3 MINIMUM ORDER GUARANTEE

The minimum order guarantee for this contract is $25,000. USAID is required to order and the contractor is required to furnish the minimum order amount of services. The initial obligation is expected to be applied towards the first task order issued along with the award of the basic Contract.

Following this initial obligation, individual task orders will obligate funds to cover the work required under each task order.

B.4 MAXIMUM CONTRACT CEILING

This is a Single Award Indefinite Delivery/Indefinite Quantity Contract IDIQ with an overall ceiling price of $4.1 Billion. The maximum aggregate dollar value of the task orders awarded cannot exceed this contract ceiling.

B.5 CEILING ON FIXED FEE (Cost-Plus- Fixed-Fee Task Orders Only)

NOTE: The ceiling on fixed fee does not apply to Fixed-Priced Task Orders.

(a) For each cost-reimbursement task order issued under this IDIQ, the TOCO and Contractor agree to negotiate a set dollar amount for fixed fee. In negotiating the fixed dollar amount for fee, the TOCO must consider the policies and factors for establishing fee in FAR 15.404-4 as well as any applicable USAID policy on establishing a fixed fee amount and any additional considerations received to include a Letter of Credit. In no event, however, may the amount of negotiated fixed fee in any individual task order exceed _____ percent (Offeror proposes ceiling percentage) of the task order’s estimated cost, excluding fee.

Integrated Procurement Service Agent (PSA)

Next Generation Global Health Supply Chain Suite of Programs (NextGen)

The fee ceiling applies to the prime contractor and any cost-reimbursement type subcontractor.

Fees for CPIF or CPAF task order types will be negotiated by the TOCO at the time of task order award and are not subject to the fee limitation set forth in this section.

(b) The Total Estimated Cost-Plus-Fixed-Fee for each task order must be negotiated in accordance with the terms of this contract.

(c) Fixed Fee Payment. For any Task Order issued under this Contract, at the time of each payment of allowable costs to the contractor, the USAID paying office ordinarily pays the contractor a percentage of fixed fees that directly corresponds to the percentage of allowable costs being paid.

Two exceptions to paying fixed fee in this manner apply:

(1) If the TOCO determines that this method results in paying a disproportionately higher ratio of fixed fee than the percentage of work that the contractor has completed, then the TOCO may suspend further payment of any fixed fee until the contractor has made sufficient progress to justify further payment, up to the agreed percentage.

(2) Because the clauses entitled "Allowable Cost and Payment" (FAR 52.216-7) and "Fixed Fee" (FAR 52.216-8) are incorporated into this Contract, the terms and conditions of these clauses apply after total payments of fixed fee reach eighty-five percent (85%) of the total fixed fee.

(3) Fixed Fee payment terms as specified within an individual task order.

(d) For Joint Ventures/affiliates of prime Contractors, no fee on fee is authorized. Primes that are represented in Joint Ventures and are also proposed as subcontractors are authorized to propose fixed fee under either the prime contract or the subcontract, not both.

B.6 CONTRACT LINE ITEMS (CLINs)

The Task Orders will specify the necessary CLINs in their respective Section.

B.7 LABOR (Only applicable to cost type task orders)

(i) IDIQ management costs will be handled through the following method:

The Contractor can bill USAID directly for key personnel performing IDIQ management costs under task orders.

(ii) The work day and work week policies and method of accounting for paid absences including holidays for the contractor and major subcontractors is set forth in Attachment X [TBD - FILL IN

THE ATTACHMENT NUMBER AT THE TIME OF AWARD AND INCORPORATE THE

INFORMATION FROM THE CONTRACTOR’S PROPOSAL INTO SECTION J OF THE

CONTRACT].

Compensation of personnel under this contract or any resulting subcontract must be in accordance with AIDAR 752.7007 Personnel Compensation (July 2007) (See Section I.19).

Integrated Procurement Service Agent (PSA)

Next Generation Global Health Supply Chain Suite of Programs (NextGen)

B.7 (a) Unburdened Ceiling Daily Rates (CDR)

(1) The Unburdened Ceiling Daily Rates apply to all labor (the prime contractor, subcontractor, TCNs, CCN’s, and consultant salaries) on cost-type task orders. CDRs do not apply to fixed-price task orders or to fixed-price and/or T&M/labor rate type subcontracts. Additional requirements and approvals under the contract still apply to labor costs, including, but not limited to:

a. AIDAR 752.7007 Personnel Compensation (July 2007) (See Section I.19),

b. Approval of subcontractors under FAR Part 42, and

c. Approval of any final salary rates above the Contractor Salary Threshold (CST) (see ADS 302).

(2) Approved unburdened direct labor rates for all labor will be negotiated under task orders that are equal to, or lower than, the CDRs. Final approval of these task order labor rates is provided by the TOCO. The Government shall not be obligated to pay any daily rate that exceeds the ceiling daily rates set forth in the table below and any indirect costs associated with the daily rate in excess of the

CDR.

(3) Each CDR for personnel listed below is “unburdened” and must only include salary costs of the individual providing the services. The CDR for employees must not include the following:

● Payroll costs (fringe benefits, FICA, allowances, differentials, bonuses, etc.);

● Indirect Costs applicable to labor; and

● Profit or fee, if any.

The CDRs set forth below are valid for the IDIQ Period of Performance, and are for a standard eight (8) hour day, 260-day year. The CDRs apply to all cost-reimbursement type subcontractors under the contract, including those set forth in Section H.6 and new subcontractors proposed for specific cost-type task orders. The new subcontract is subject to consent by the TOCO in accordance with FAR Part 44.

Actual salaries for all personnel will be negotiated under task orders and final approval is provided by the TOCO. The ceiling rates presented below do not constitute approval of final salary rates above the Contractor Salary Threshold (CST) (see ADS 302).

(4) The unburdened ceiling daily rates for each labor category/group below represent the mid -level and senior-level rate in each category/grouping. The IDIQ Project Director and Task Order Director each require only one level of unburdened ceiling daily rates in the chart below. Two levels of unburdened ceiling daily rates for the rest of the labor categories/groupings are included in the contract to provide more flexibility under task orders. If junior-level personnel are required under task orders, they must be proposed at rates below the mid-level unburdened ceiling daily rate.

Integrated Procurement Service Agent (PSA)

Next Generation Global Health Supply Chain Suite of Programs (NextGen)

No.

Labor

Category/Grouping

Unburdened Ceiling Daily Rates

Base Period

Year 1 Year 2 Year 3 Year 4 Year 5

001 IDIQ Project Director $ $ $ $ $

002 Task Order Director $ $ $ $ $

003 Financial Manager

Senior $ $ $ $ $

Mid-Level $ $ $ $ $

004 Procurement Manager

Senior $ $ $ $ $

Mid-Level $ $ $ $ $

005 Management Information Systems Manager

Senior $ $ $ $ $

Mid-Level $ $ $ $ $

006 Logistics Manager

Senior $ $ $ $ $

Mid-Level $ $ $ $ $

007 Cross-Award Manager

Senior $ $ $ $ $

Mid-Level $ $ $ $ $

008 Subject Matter Experts

(e.g., Procurement Specialists)

Integrated Procurement Service Agent (PSA)

Next Generation Global Health Supply Chain Suite of Programs (NextGen)

No.

Labor

Category/Grouping

Unburdened Ceiling Daily Rates

Base Period

Year 1 Year 2 Year 3 Year 4 Year 5

009 Administrative Support

Specialists

No.

Labor

Category/Grouping

Unburdened Ceiling Daily Rates

Option Period 1 Option Period 2

Year 6 Year 7 Year 8 Year 9 Year 10

001 IDIQ Project Director

002 Task Order Director

003 Financial Manager

Senior $ $ $ $ $

Mid-Level $ $ $ $ $

004 Procurement Manager

Senior $ $ $ $ $

Mid-Level $ $ $ $ $

005 Management

Information Systems Manager

006 Logistics Manager

Integrated Procurement Service Agent (PSA)

Next Generation Global Health Supply Chain Suite of Programs (NextGen)

No.

Labor

Category/Grouping

Unburdened Ceiling Daily Rates

Option Period 1 Option Period 2

Year 6 Year 7 Year 8 Year 9 Year 10

Mid-Level $ $ $ $ $

007 Cross-Award Manager

Senior $ $ $ $ $

Mid-Level $ $ $ $ $

008 Subject Matter Experts

(e.g., Procurement Specialists)

009 Administrative Support Specialists

[Note 1: The Unburdened Ceiling Daily Rates apply to any task order(s) that are awarded under this contract; however, the Unburdened Ceiling Daily Rates above do not apply to Fixed-price Task Orders.]

[Note 2: The Unburdened Ceiling Daily Rates apply to all labor (the prime contractor, subcontractor (as specified in Section B.7(c)), TCNs, CCN’s, and consultant salaries). CCN and TCN labor are also governed by the local compensation plan limitations as further provided below.]

[Note 3: Any additional labor categories proposed and negotiated prior to award, will be incorporated into the table above in the award itself.]

(5) Definition of labor categories/grouping:

001 - IDIQ Project Director - Provides technical and strategic leadership and guidance in the development of approaches, methodologies, and tools across task orders. Serves as the main point of contact and has responsibility for the success of the project. This is exclusively a senior level position.

Integrated Procurement Service Agent (PSA)

Next Generation Global Health Supply Chain Suite of Programs (NextGen)

002 - Task Order Director - Provides technical and strategic leadership and guidance in the development of approaches, methodologies, and tools for individual task orders. Manages the task order and is responsible for the success of the Task Order. This is exclusively a senior level position.

003 - Financial Manager- Responsible for financial matters for the task order(s) with experience providing or supervising financial and accounting services for U.S. government funded programs.

004 - Procurement Manager - Provides technical and strategic leadership and guidance in the execution of transactions associated with the sourcing and purchasing of health commodities.

005 - Management Information Systems Manager - Primary point of contact for the MIS system and must ensure the MIS serves the needs of the Objectives in Section C and the relevant deliverables in Section F.

006 - Logistics Manager - Provides technical and strategic leadership and guidance in the execution of transactions associated with the physical handling of health commodities from their origin at manufacturers or suppliers through to the final transport to pre-defined destinations. May include strategic management of third-party logistics providers.

007 - Cross-Award Manager: Strategically leads effort to ensure efficient and effective coordination with other USAID supply chain contractors.

008 - Subject Matter Experts (e.g., Procurement Specialists, Buyers) - Includes a technically diverse range of industry and functional specialists who are not otherwise specified in any other labor categories with professional experience in one or more technical fields relevant to the IDIQ and task orders.

009 - Administrative Support Specialists - Responsible for providing programmatic, operational, logistics, and administrative support to the task order and Field Offices.

(6) Locally Hired National Personnel or Other Non-U.S. Expatriate Rates

All locally hired national personnel and other non-U.S. expatriates must be paid in accordance with

AIDAR 722.170.

Salaries for individual locally-hired personnel and other non-U.S. expatriates under this contract and any resulting subcontract must be in accordance with AIDAR 752.7007, Personnel Compensation (July 2007), and should be based upon a combination of factors including the prevailing compensation paid to personnel performing comparable work in the cooperating country as determined by USAID and consideration of the individual's education and work experience.

Unless otherwise authorized by USAID, the compensation for CCN and TCN labor shall not exceed the prevailing compensation paid to personnel performing comparable work in the cooperating country as determined by USAID and shall be paid in the currency of the cooperating country.

Integrated Procurement Service Agent (PSA)

Next Generation Global Health Supply Chain Suite of Programs (NextGen)

B.7 (b) Minimum Qualifications

In order to perform the statement of work set forth in Section C, the Contractor must provide personnel that meet the minimum education and experience requirements set forth below. These minimum qualifications for mid-level and senior personnel correspond to the Unburdened Ceiling Daily Rates above. The key personnel requirements are in Section F.5.

Level

Education + Experience Requirements OR

Experience Requirements

(Substitution of Relevant Work

Experience in Lieu of a Degree)

Academic

Degree*

AND Years of Relevant

Work Experience**

Years of Relevant Work

Experience***

Mid

Ph.D.

JD/ABD

MS/MA/MB

BS/BA

Less than BS/BA

Senior Ph.D.

JD/ABD

MS/MA/MB

BS/BA

Less than BS/BA

25.3

* Highest degree obtained should be related to work being performed.

** Experience should be related to the work being performed.

*** Relevant Work Experience is required for the levels indicated.

NB: Language fluency, relevant regional experience, and international development experience requirements will be specified in individual task orders.

B.7 (c) Subcontractor Rates.

(1) The Unburdened Ceiling Daily Rates apply to all cost-reimbursement type subcontractor labor on this IDIQ and cost-type task orders.

(2) For subcontractors with a cost accounting system that only processes fully burdened rates, the Contractor may include in its TO proposal, (i) the fully burdened rate proposed to the Contractor by the subcontractor, (ii) allocation of the Contractor’s indirect costs in accordance with established accounting practices, and (iii) a reasonable profit. If the rates proposed to USAID, inclusive of the Prime’s allocable indirect costs and a reasonable profit, exceed the contract’s unburdened CDRs, the Contractor must disclose the amount of the indirect costs and the amount of the proposed profit that were added to the subcontractor’s proposed rates. The TOCO will negotiate reasonable labor rates using that information.

Integrated Procurement Service Agent (PSA)

Next Generation Global Health Supply Chain Suite of Programs (NextGen)

B.8 LABOR (UNBURDENED CDR) RATE CHANGES

The labor rates established in B.7(a) are fixed for the years specified; however, the Contractor may submit a proposal reducing the labor rates and/or indirect rates at any time during the life of this contract. The Government will review these proposals and determine if the revised rates are realistic and in the best interests of the Government. If the rates are accepted, the Government will modify the contract by incorporating the new rates into the contract.

B.9 INDIRECT COSTS (Only applicable to Cost Type Task Orders)

Pending establishment of revised provisional or final indirect cost rates, allowable indirect costs shall be reimbursed on the basis of the following negotiated provisional or predetermined rates and the appropriate bases for the prime contractor:

Offeror Fringe Rate % Overhead Rate % G&A Rate %

PRIME (Insert Name)

Base of Application

Source: (insert)

Period: (insert)

NOTE: Insert additional indirect rates as needed for all primes in the above table.

The Contractor will make no change in its established method of classifying or allocating indirect costs without the prior written approval of the Contracting Officer.

Note: Contractors are allowed to recoup indirect costs (OH, G&A, etc.) as other direct costs if it is part of the contractor’s usual accounting procedures, consistent with FAR 31 and the contractor’s

NICRA.

B.10 COST REIMBURSABLE (Only applicable to Cost Type Task Orders)

The U.S. dollar costs allowable must be limited to reasonable, allocable, and allowable costs determined in accordance with FAR 52.216-7, Allowable Cost and Payment, and FAR 52.216-8, Fixed Fee, if applicable: AIDAR 752.7003, Documentation for Payment; OMB Circular 1 -21, Cost Principles for Educational Institutions and OMB Circular A-122, Cost Principles for Nonprofit organizations.

[END OF SECTION B]

Integrated Procurement Service Agent (PSA)

Next Generation Global Health Supply Chain Suite of Programs (NextGen)

SECTION C - STATEMENT OF WORK

C.1 BACKGROUND

USAID’s Bureau for Global Health (GH) structures its work through three strategic priorities:

preventing child and maternal deaths; controlling the HIV/AIDS epidemic; and combating infectious diseases.1 Health commodity procurement has been a vital part of all of these programs2 and has been a focus of USAID’s global health efforts for over 30 years. Since 2017, PMI, USAID FP/RH, MCHN and GHS have procured and delivered more than 1300 products valued at $1.26 billion for approximately 75 countries. These activities support USAID GH’s vision, “a world where people lead healthy, productive lives and where mothers and children survive and thrive.”

USAID’s global health efforts are focused to prevent child and maternal deaths, control the HIV/AIDS epidemic, control and eliminate malaria, increase and sustain access to safe, voluntary, high-quality FP/RH care, and combat a number of infectious diseases in developing countries. The Agency’s procurement and delivery of quality-assured health commodities and provision of technical assistance to strengthen health supply chains and pharmaceutical management systems are cornerstones for achieving these priorities.

This contract is part of the Next Generation Global Health Supply Chain Suite of Programs (NextGen). NextGen is the follow-on to the Global Health Supply Chain Program. By providing commodities and systems strengthening technical assistance NextGen seeks to transform supply chains for global health programs and achieve three principal goals:

● Maximize the availability, quality, and affordability of medicines and other health products and achieve better health outcomes for the populations served;

● Advance the resiliency and sustainability of locally-managed procurement and supply chains in the countries in which USAID works; and

● Increase value for the U.S. taxpayer and reduce the chances of waste, fraud, and diversion even further.

The activities of NextGen will be guided by offices in USAID’s Bureau for Global Health, Regional Bureaus, and Missions, and the President’s Emergency Plan for AIDS Relief (PEPFAR), and PMI.

While some of the awards that are planned for NextGen are designed to be global health program-specific, others will be cross-cutting. For additional background information about NextGen and the planned awards, please see the NextGen Webpage.3

1 https://www.usaid.gov/who-we-are/organization/bureaus/bureau-global-health

2 Commodity procurement support for the PEPFAR program is addressed by two other PSAs in the NextGen structure.

3 https://www.usaid.gov/work-usaid/find-a-funding-opportunity/next-generation-global-health-supply-chain https://www.usaid.gov/who-we-are/organization/bureaus/bureau-global-health https://www.usaid.gov/work-usaid/find-a-funding-opportunity/next-generation-global-health-supply-chain

Integrated Procurement Service Agent (PSA)

Next Generation Global Health Supply Chain Suite of Programs (NextGen)

C.1.1 Relevant GH Offices

U.S. President’s Malaria Initiative (PMI)

Launched in 2005, PMI is the U.S. Government’s (USG) program to reduce the burden of malaria through accelerating delivery and scale-up of proven prevention and treatment interventions. Information on the scope and scale of PMI’s activities is available on PMI's website.4

The PMI 2021-2026 strategy includes three objectives: to reduce mortality by one-third from 2015 levels, reduce morbidity by 40 percent from 2015 levels, and to move towards elimination in 10 countries and eliminate in more than one country. PMI provides and manages lifesaving, quality-assured commodities including insecticide treated mosquito nets (ITNs), artemisinin-based combination therapy (ACTs), medicines for the treatment of uncomplicated and severe malaria, antimalarial medicines for intermittent preventive treatment for pregnant women (IPTp) and seasonal malaria chemoprevention (SMC) for children, rapid diagnostic tests (RDTs) and laboratory supplies and equipment for malaria diagnosis. There are five focus areas included in PMI’s 2021 - 2026 strategy:

1. Reach the unreached: Achieve, sustain, and tailor deployment and uptake of high-quality, proven interventions with a focus on hard-to-reach populations.

2. Strengthen community health systems: Transform and extend community and frontline health systems to end malaria.

3. Keep malaria services resilient: Adapt malaria services to increase resilience against shocks, including COVID-19 and emerging biological threats, conflict, and climate change.

4. Invest locally: Partner with countries and communities to lead, implement, and fund malaria programs.

5. Innovate and lead: Leverage new tools, optimize existing tools, and shape global priorities to end malaria faster.

Global Health Security (GHS) and Infectious Disease Response

The COVID-19 pandemic is a sobering reminder to the world of the potential for the sudden and massive impact epidemic-prone infectious disease can have, and the rapid pace of response required. Every country remains vulnerable to emerging zoonotic diseases, or vulnerable to the global impact of infectious disease elsewhere, thereby underlining the essential role of global health security efforts in our everyday lives. In 2019, the U.S. Government released the Global Health

Security Strategy5 to outline its approach to strengthen global health security — including accelerating the capabilities of targeted countries to prevent, detect, and respond to infectious disease outbreaks. USAID supports these efforts globally by strengthening the capacities of partner countries to reduce the risk and impact of emerging infectious disease threats and outbreaks. This

4 https://www.pmi.gov/

5 https://www.usaid.gov/global-health/health-areas/global-health-security https://www.p/ https://www.usaid.gov/global-health/health-areas/global-health-security

Integrated Procurement Service Agent (PSA)

Next Generation Global Health Supply Chain Suite of Programs (NextGen) has involved the agile response to serious global threats including Ebola, Zika, and COVID-19.

When sudden and/or massive commodity needs have arisen, USAID has mobilized to procure essential health commodities to respond to vital needs, such as personal protective equipment, laboratory supplies, testing and diagnostic supplies, decontamination equipment, etc.

Family Planning and Reproductive Health (FP/RH)

USAID is a leader among international donors to advance and support access to safe, voluntary, and high-quality FP/RH care, which requires that clients can access a range of affordable, quality -assured contraceptives and other FP/RH products. Supply systems need to ensure the near- and long-term availability of these products through public and private channels. To this end, USAID’s priorities are to leverage a world-class global supply chain for the supply of FP/RH commodities to countries for today’s clients and support healthy market dynamics for secure FP/RH product supply for the future. The provision of contraceptives has been part of USAID’s FP/RH programming since the Agency’s first contraceptive purchase in 1968. Contraceptive security, where clients have the ability to choose, obtain, and use their preferred method of contraception, is a key element of USAID’s overall family planning strategy. USAID has had a profound influence on the global market for FP/RH products by, for example, increasing contraceptive choice through the introduction of new methods and products and promoting an increased number of suppliers for affordable, quality-assured products.

Maternal, Newborn, Child Health and Nutrition (MCHN)

America’s legacy in maternal and child survival began three decades ago when USAID and UNICEF launched a “child survival revolution” aimed at reducing the number of deaths among young children in developing countries. As a result, countless efforts and advances in technology culminated in a reduction of child deaths from nearly 12 million in 1990 to 6.2 million in 2018.

There has also been a 38 percent reduction in maternal deaths in 18 years; the global maternal mortality ratio declined from 342 to 211 deaths per 100,000 live births at an annual rate of reduction of 2.9 percent between 2000 and 2017.6

Despite this progress, significant work remains in order to accelerate progress to end preventable child and maternal deaths by increasing coverage of high-impact interventions, strengthening the health systems that support these interventions, and addressing equity gaps that are bottlenecks to progress. USAID continues as a leader among international donors in creating and sustaining the conditions necessary for countries to accelerate reductions in maternal and child mortality, with the generational goal of ending preventable child and maternal deaths.

To support USAID’s goal of preventing child and maternal deaths (PCMD), MCH programs aim to increase consistent availability, accessibility, and appropriate use of quality-assured, affordable MCH commodities, largely by providing technical support to host country government’s ministries of health. However, in limited circumstances, with strong, documented justification and sustainability plans, USAID’s MCHN program will procure commodities in support of joint USAID-country government plans.

6 https://www.usaid.gov/sites/default/files/documents/1864/201mau.pdf https://www.usaid.gov/sites/default/files/documents/1864/201mau.pdf

Integrated Procurement Service Agent (PSA)

Next Generation Global Health Supply Chain Suite of Programs (NextGen)

Other Health Elements and Ad Hoc Needs

“Other Health Elements” in this context refer to different health offices or divisions within

USAID’s Global Health Bureau which might need temporary or longer durational support for health commodity procurement and delivery.

As global health and USAID’s program needs change, USAID’s commodity procurement needs may also change in order to address specific health program objectives. Certain global health programs that previously did not regularly procure health commodities as part of their approach have utilized existing Global Health mechanisms to procure and deliver health commodities. These instances have been, and would likely continue to be, narrow in scope and have included products such as essential health commodities.

Finally, on rare occasions, other commodity supply contracts under NextGen may experience delays or disruptions, which can affect the essential supply of critical products. Therefore, ad hoc commodity procurement needs for other programs may also be addressed through this mechanism.

See Section C.8 RELATIONSHIP TO OTHER ACTIVITIES AND REDUNDANCIES for more information.

C.1.2 Previous USAID Mechanisms for Health Commodity Procurement and Delivery

The two most recent USAID central mechanisms responsible for the global procurement of malaria, FP/RH, and MCHN health commodities include:

1. The Global Health Supply Chain Procurement and Supply Management (GHSC-PSM) single-award IDIQ contract was awarded in April 2015 to Chemonics International Inc.

2. The USAID | DELIVER PROJECT, a single-award IDIQ contract was awarded in 2006 to John Snow, Inc.

Information on these programs, and other USAID global health supply chain mechanisms, are available through their websites as well as on USAID’s Development Experience Clearinghouse (DEC), which is updated with programmatic and progress reports from each mechanism.

While working with these mechanisms, changes in health priorities, shifts in global manufacturing and sources of supply as well as the experience of encountering increasingly complex and volatile health commodity supply chains has been constant. This has subsequently changed USAID’s requirements for the provision of health commodities in support of global health programs, from that of being straightforward transactional procurement and delivery to, in more recent years, having a need for the provision of a broad array of services and approaches that are available in the rapidly changing Procurement as a Service (PaaS) marketplace, components of which are outlined in C.4 Technical Scope.

A list of products procured, illustrative pricing and historical performance, by previous programs is available in Attachment J.8.

https://dec.usaid.gov/dec/home/Default.aspx https://dec.usaid.gov/dec/home/Default.aspx

Integrated Procurement Service Agent (PSA)

Next Generation Global Health Supply Chain Suite of Programs (NextGen)

C.2 PURPOSE

The Integrated Procurement Service Agent (PSA) award is a single-award indefinite delivery/indefinite quantity (IDIQ) contract within the Next Generation Global Health Supply Chain Suite of Programs (NextGen) that will provide procurement and delivery services for commodities for malaria; infectious disease response; family planning and reproductive health

(FP/RH); maternal and child health and nutrition (MCHN); and other health elements for USAID’s Bureau for Global Health (GH).

C.3 OBJECTIVE

The objective of this contract is to provide procurement, delivery, and related services for malaria commodities, FP/RH and MCHN commodities, commodities to respond to infectious disease outbreaks, and other ad hoc health commodity needs as required. The collective operational size and profile across Task Orders under this IDIQ are expected to be leveraged to increase value for the U.S. taxpayer and beneficiaries and provide the agility to quickly adapt to changes in demand and supply and program priorities, such as changes in treatment regimens, new product introductions, shifts in demand, reprioritization of products and public health emergencies.

C.4 TECHNICAL SCOPE

Integrated PSA will reduce risks in health commodity procurement, increase the overall value and diversity from the supplier base, promote overall market health, and facilitate transactional procurement, while simultaneously focusing on better aligning commodity demand with overall global supply, through the design and execution of PaaS strategies (See Section F). These strategies, built on the historical foundation of approaches and services used by preceding USAID health commodity procurement and delivery efforts, will be periodically reviewed and adjusted to reflect trends, risks, and shifts in demand and supply, to procure intelligently, and p romote a diverse supply base, including local suppliers.

Integrated PSA will foster innovation. Global health commodity procurement and delivery programs create opportunities for innovative approaches to the provision of procurement as a service, and contribute towards problem-solving around long-standing, entrenched supply chain issues.

Integrated PSA will leverage efficiencies. In the execution of activities to support USAID global health programs, health commodity procurement and delivery will leverage efficiencies across Task Orders and projects as well as collaborate with the health commodity procurement and delivery programs of other stakeholders to minimize risk and improve the overall value of the supplier base.

Integrated PSA will prioritize ease of management for USAID. Integrated PSA will focus on streamlining activities and achieving efficiency in processes that relate to management of the contract by USAID.

Integrated PSA will optimize for service and agility. The GH health commodity supply chain manages life-saving commodities that must be available when and where people need them. Supply chains need to ensure supply even in the face of changing demand, restricted supply, and hostile

Integrated Procurement Service Agent (PSA)

Next Generation Global Health Supply Chain Suite of Programs (NextGen) environments. Integrated PSA will need to adapt to changing demand, changing supply, evolving markets, new products, unexpected health crises, and a complex ecosystem of other donors, governments, commercial manufacturers, wholesalers, and logistics providers. Approaches will need to continually evolve to reflect changing epidemiologies, technologies, and markets.

Integrated PSA will collaborate with global partners. Collaboration with partners and stakeholders is fundamental to the success of global health procurement and delivery programs. The success of these programs particularly depends on trust and partnership with other global health programs, the global health community (including bilateral, multilateral, and host government funders and implementing partners), as well as networks of trading partners. For all global health programs, a key element found necessary to facilitate health commodity procurement and delivery has been communication and collaboration that is further enhanced through the use of technology and analytics capability. Communication and collaboration, whether it has been between Task Orders, other USAID implementing partners, other global actors or recipient country programs, has repeatedly improved the overall value of the supplier base, minimized risk and supported continual improvements in performance.

Integrated PSA will collaborate with other NextGen mechanisms. NextGen is designed to operate a global supply chain together, with built-in dependencies and redundancies among awards.

Integrated PSA must work closely with other NextGen mechanisms to achieve its objectives.

Further discussion of NextGen roles and responsibilities is detailed in C.9.

Integrated PSA will leverage the contractor’s existing digital technologies and analytic capabilities. Leveraging digital technologies and analytical capabilities is foundational to efficient and effective supply chain operations, to support and continually improve process performance, and to enable near real time data visibility. Promoting visibility of data and use of intelligent automation to reduce the burden of managing transactional data limits touch points in the supply chain and allows for greater focus on strategy and innovation. The utilization of predictive analytics fosters supply chain evolution.

Integrated PSA will monitor and manage its own supply chain risks in coordination with other NextGen contractors. Supply chains and pharmaceutical management systems face a variety of risks across all levels of the health system, including theft and fraud, product quality issues, manufacturer/supplier issues, improper procurement processes, and product loss through fire, damage or flooding, and others. Some of those risks are particularly widespread in low and middle income countries (LMICs) and/or public sector systems.

The Contractor must undertake a variety of activities as follows.

C.4.1 Market Dynamics and Strategic Sourcing

Market health is critical to global health program success. The global health commodity marketplace for some health commodities can be fragile when demand is primarily generated from low to middle income countries, commodities have limited margins, and there is a constant need to innovate to bring new products to market. Diversifying the supply base, bringing supply closer to demand and encouraging continued product innovation is critical to ensuring life-saving health products reach the people who need them. Working with global partners and manufacturers to

Integrated Procurement Service Agent (PSA)

Next Generation Global Health Supply Chain Suite of Programs (NextGen) ensure diversity of suppliers and overall market health for existing and new health commodities minimizes risk of global shortages, allows for the consistent supply of products and expands choices to clients, service delivery providers, and country health programs.

The Contractor must support healthy, sustainable market dynamics that improve choice, availability and affordability for products that are the focus of this contract. This may include, but is not limited to, incentivizing manufacturers to invest in the production of quality-assured commodities and register their products in developing country markets; supporting the introduction of new products to expand consumer choice or address resistance; and/or using and strengthening platforms for collaborative decision-making by trading partners in the supply of health commodities. The

Contractor must view total market approaches inclusive of commodity security in both the public and private sectors. The Contractor must work with manufacturers, wholesalers, and/or authorized distributors in partner countries to source quality products and as needed, supporting collaborations that include key stakeholders such as government actors and civil society to address barriers to commercial sector participation in certain markets, and advancing data sharing and communication efforts within the global community.

The Contractor must perform activities related to the management of a wide range of different health commodities with varying differences in characteristics and use. This may include segmentation of PaaS activities into areas which contain similar or related health commodity products or services to gain a deeper understanding of the market, products, suppliers and associated supply chains in order to enable and focus on opportunities to ensure specialized program requirements are met while leveraging commonalities across products or services for consolidation and efficiency.

The Contractor must manage relationships and subcontracts with vendors. Contract management may include continuous procurement processes that ensure suppliers and logistics providers adhere to their agreed contractual obligations along with negotiating any future changes that need to take place by tracking and predicting opportunities to achieve best value. Post-award activities under contract management include supplier relationship management, risk management and handling disputes and unfulfilled obligations.

C.4.2 Global Forecasting and Supply Planning

As directed, the Contractor must participate in or conduct, commodity needs quantifications, and product demand and supply planning for the purpose of global procurement operations. The

Contractor must provide rolling global forecasts to suppliers on a recurring basis (e.g., monthly) and coordinate with global partners on global forecasting and other supply planning activities, including leveraging existing venues and forums developed in partnership with the global community. The Contractor must report, and provide analysis of global forecasting and supply planning data as required by USAID. The Contractor must analyze historical data and complementary updates, including use of real-time global supply chain data, to compile demand requirements while planning to meet those demands through points of supply.

Integrated Procurement Service Agent (PSA)

Next Generation Global Health Supply Chain Suite of Programs (NextGen)

C.4.3 Transactional Health Commodity Procurement

The Contractor must procure health commodities that meet Stringent Regulatory Authority (SRA), World Health Organization (WHO), or other quality standards identified by USAID and adhere to USAID guidance on quality standards. Product eligibility is determined and maintained by the NextGen Qualifying Testing Issuing (QuTI) contractor on behalf of USAID. Health commodities procured by the Contractor must meet the receiving country’s commodity eligibility requirements and be registered by manufacturers with the National Drug Regulatory Authorities (NDRA) of destination countries and/or receive the necessary importation waivers.

Industry best practices and USAID requirements must be adhered to during the execution and management of transactional procurement events that provide best value for USAID. Examples of procurement activities include, but are not limited to: preparing and posting solicitations, proposal evaluations, contract negotiations, commodity allocations across eligible suppliers, administration of requisition receipt and clarification, order placement and management, product recall.

The Contractor must utilize its existing, operational digital technology and analytic capability to support and continually improve process performance of various procurement activities including, but not limited to, an external user interface for various user to place and track orders in near real time from order creation to arrival at procurement-defined delivery destinations; and provide specified data to the NextGen Control Tower (see Section C.9).

The Contractor, when relevant, will engage in national registration processes. Health commodities can only be available to clients and patients and beneficiaries when they are authorized for use in countries through national regulatory procedures. USAID has supported its procurement programs to work on regulatory surveillance by maintaining regulatory information for countries and products, identifying registration priorities, and providing guidance to suppliers, countries, and clients.

The Contractor must be able to respond to emergency orders, requested to be delivered in response to a stockout or threat of a stockout in a particular country or region or other emergency.

The Contractor must collaborate and cooperate with USAID and the NextGen Quality Testing Issuing (QuTI) contractor to ensure compliance with applicable USG and country requirements for product quality. This may include, but is not limited to, collaboration in the design and implementation of efficient and effective quality assurance systems, cooperative evaluations of prospective commodity suppliers; and/or evaluation of supply chain storage and transport conditions. The Contractor must maintain continuous communication and interaction with the QuTI contractor in order to help ensure that health commodities purchased by the U.S.