7200AA24C00092 STRIDES JA_Publish.pdf

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Posting of Justification for Other than Full and Open Competition
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7200AA24C00092
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This is a Justification for Other Than Full and Open Competition (J&A) submitted by the U.S. Department of State's Global Acquisitions office for a ceiling increase to an existing contract.

The document requests approval to increase the Total Estimated Cost (TEC) ceiling of Contract No. 7200AA24C00092 for the Strengthening Infectious Disease Detection Systems (STRIDES) Activity from $244,967,896 to $444,967,896, an increase of $200,000,000. The contract is implemented by Family Health International (FHI 360) under a Cost-Plus-Fixed-Fee (CPFF) term structure with a period of performance from October 1, 2024, through September 30, 2029. The contract was awarded on September 25, 2024, and the ceiling increase was approved by the Under Secretary for Foreign Assistance, Humanitarian Affairs, and Religious Freedom on August 15, 2025. The STRIDES contract supports U.S. global health security objectives by strengthening infectious disease detection systems across up to 50 partner countries, including laboratory network development, surveillance system enhancement, bioinformatics and data management, antimicrobial resistance surveillance, and outbreak response support. The Department of State assumed administration of this USAID-funded contract on July 1, 2025, under delegated procurement authority and an interagency agreement. The request cites AIDAR 706.302-70(b)(3)(i) as the statutory authority for other than full and open competition, justified on the basis that FHI 360's established operational platforms, embedded workforce, and integrated systems across multiple countries cannot be replicated by another contractor within the timeframe needed to prevent disruption of critical global health security services. The proposed cost increase is based on an Independent Government Cost Estimate incorporating historical cost data, projected staffing requirements, a 260-day work year, and an annual inflation rate of 2.025 percent. The document indicates the Department of State plans to transition a significant portion of future activities to competitively awarded mechanisms under an Annual Program Statement aligned with the America First Global Health Security Strategy, with transition expected to be completed between September and December 2026.

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Consistent with Pillar I of the America First Global Health Security Strategy, Making America Safer, this contract supports the strengthening of global surveillance and laboratory systems to detect and contain disease threats at their source.

The STRIDES contract provides implementation support and technical assistance to host country partners to strengthen national and sub-national laboratory networks and surveillance systems. This includes enhancing diagnostic capacity, developing and sustaining event-based and indicator-based surveillance systems, strengthening data collection and analysis for decision-making, and providing technical support for outbreak detection and response.

The contractor delivers integrated technical assistance across key areas, including laboratory systems strengthening, surveillance system development, bioinformatics and data management, and surge support during outbreaks, epidemics, and pandemics. Additional activities include strengthening biosafety and biosecurity systems, enhancing antimicrobial resistance (AMR) surveillance and testing, and building sustainable local capacity to operate and maintain surveillance and diagnostic systems.

STRIDES is currently operating within its period of performance but will reach its existing ceiling earlier than planned, prior to completion of required activities. After the closure of USAID in 2025, DoS and countries had fewer options for programming GHS funds and STRIDES was the only mechanism with enough period of performance and scope to take on the work. This resulted in a rapid increase in the number of countries buying in, combined with increased funding for areas such as polio, maternal and child health, and malaria, and an increased need for STRIDES to procure outbreak related commodities. Combined, this resulted in STRIDES quickly nearing its original ceiling.

STRIDES has also become GHSD's largest outbreak response mechanism and needs to be able to continue to receive Emergency Reserve funding and other crisis response funding on an as-needed basis, but is unable to do so without this ceiling increase.

Without a ceiling increase, critical services would be disrupted, undermining ongoing investments in surveillance systems, laboratory networks, and outbreak response capacity. The requested TEC increase will enable continuity of these essential services and support expanded programmatic demand across up to 50 partner countries, reflecting both existing commitments and the need for flexibility to respond to evolving global health security priorities.

The proposed increase of $200,000,000, bringing the total estimated cost to $444,967,896, is based on the Independent Government Cost Estimate (IGCE), which incorporates historical cost data, projected staffing requirements, a standard 260-day work year, and an annual inflation rate of 2.025 percent.

The estimate reflects current country-level investments in 50 countries and the potential expansion to additional countries as program needs evolve.

This contract was originally awarded by USAID and was transitioned to the Department of State on

July 1, 2025.

SECTION 4: IDENTIFICATION OF THE STATUTORY AUTHORITY

PERMITTING OTHER THAN FULL AND OPEN COMPETITION

This action is authorized under AIDAR 706.302-70(b)(3)(i), which permits the use of other than full and open competition when compliance with full and open competition procedures would impair foreign assistance objectives and be inconsistent with the fulfillment of foreign assistance programs.

In accordance with AIDAR 706.302-70(c)(4), prior consultation with the Agency Competition

Advocate is required before execution of the Determination and Findings (D&F) supporting this authority. This consultation is reflected in the accompanying D&F.

Pursuant to the Secretary's April11, 2025 delegation of procurement and assistance authorities from

USA ID to the Department of State, and subsequent Memorandum of Agreement between the two agencies, the Department of State is authorized to administer USA ID-funded acquisition and assistance awards. These activities are implemented under an interagency agreement (IAA), including

Treasury Form 7600A (A2505-072-0l9-010000) and associated 7600Bs, and are executed in accordance with applicable USAID regulations and policies.

For purposes of this action, the Senior Bureau Official (SBO) at the Department of State is performing the functions and responsibilities of the USAID Assistant Administrator.

SECTION 5: DEMONSTRATION THAT THE PROPOSED CONTRACTOR'S

UNIQUE QUALIFICATIONS OR THE NATURE OF

THE ACQUISITION REQUIRES USE OF THE AUTHORITY CITED

This acquisition requires the use of AIDAR 706.302-70(b)(3)(i) to avoid impairment of foreign assistance objectives and unacceptable disruption to critical global health security services currently being implemented under the STRIDES activity.

The STRIDES Activity, implemented by Family Health International (FHI 360), is the U.S.

Government's primary global mechanism for strengthening infectious disease detection systems, including surveillance, laboratory diagnostics, outbreak preparedness and response, and data systems strengthening across multiple partner countries. The contractor is currently actively implementing complex, integrated technical assistance across national and sub-national systems in up to 50 countries, including direct engagement with host country governments, laboratories, and surveillance institutions.

FHI 360 possesses unique qualifications and an established operational platform that cannot be replicated by another contractor within the timeframe required to prevent a disruption in services.

Specifically:

• Established In-Country Presence and Systems Integration:

FHI 360 has established operational platforms, technical systems, and partnerships with ministries of health, national laboratories, and surveillance systems across multiple countries.

These systems include laboratory networks, surveillance platforms (event-based and indicator-based), and data management systems that are deeply embedded within host country institutions.

• Deployed and Trained Workforce:

The contractor has already recruited, deployed, and trained a highly specialized workforce, including epidemiologists, laboratory specialists, data analysts, and technical advisors, many of whom are embedded within host country systems. Reconstituting this workforce under a new contractor would require substantial time and resources and would result in a loss of institutional knowledge and continuity.

• Continuity of Critical Public Health Functions:

STRIDES supports essential, continuous public health functions, including disease surveillance, diagnostic testing, and outbreak response. These functions require uninterrupted implementation to maintain system integrity and effectiveness. Any disruption would degrade surveillance sensitivity, delay detection of outbreaks, and weaken response capacity.

• Transition Risk and Time Constraints:

Conducting a full and open competition and transitioning to a new contractor would require an estimated Procurement Action Lead Time (PALT) of at least 12-18 months, followed by an additional mobilization and transition period. During this time, critical activities would be interrupted or significantly degraded. The transition of complex, multi-country laboratory and surveillance systems cannot occur without substantial overlap and continuity of operations.

• Impact on Foreign Assistance Objectives:

A disruption in STRIDES-supported activities would impair the U.S. Government's ability to support partner countries in detecting and responding to infectious disease threats. This would directly undermine foreign assistance objectives related to global health security and could increase the risk of uncontrolled outbreaks with potential cross-border and global implications, including impacts to U.S. national security and public health.

The requested ceiling increase will enable continuity of operations under the existing contract through the current period of performance while the Department of State develops and competitively awards follow-on mechanisms aligned with the America First Global Health Strategy. This approach ensures uninterrupted delivery of critical services while preserving the Government's ability to reintroduce competition in a structured and responsible manner.

SECTION 6. DESCRIPTION OF EFFORTS TO ENSURE THAT OFFERS

WERE SOLICITED FROM AS MANY POTENTIAL SOURCES AS IS

PRACTICABLE, INCLUDING WHETHER A NOTICE WAS OR WILL BE

PUBLICIZED AS REQUIRED BY FAR SUBPART 5.2 AND, IF NOT, WHICH

EXCEPTION UNDER FAR 5.202 APPLIES

Given the nature of this action (a ceiling increase to an existing, actively performing contract) no additional sources were solicited. This action is intended to maintain continuity of ongoing services and does not represent a new procurement requirement.

The Government is aware that multiple qualified organizations exist within the global health sector capable of delivering similar services; however, transitioning these activities to a new contractor would require a full and open competition and a significant mobilization period, resulting in unacceptable disruption to critical ongoing services.

Pursuant to AIDAR 705.202, pre-award publicizing requirements under FAR Subpart 5.2 are not applicable to this action. In accordance with FAR 6.305 and applicable agency procedures, this

Justification will be made publicly available following award.

SECTION 7. DETERMINATION BY THE CONTRACTING OFFICER THAT

THE ANTICIPATED COST TO THE GOVERNMENT IS FAIR AND

REASONABLE

The Contracting Officer has determined that the anticipated cost to the Government for the supplies and services covered by this J&A is fair and reasonable. This determination is based on the

Independent Government Cost Estimate (IGCE), which incorporates an analysis of previously competed rates, cost realism from the original award, and ongoing cost monitoring throughout contract performance.

The contract was originally awarded through full and open competition, and the negotiated cost structure and rates remain unchanged and will continue to be applied in accordance with the terms of the contract. There is no change in the overall scope of work.

The proposed cost associated with this action will be evaluated by the Contracting Officer against the

IGCE and historical cost data for the contract to ensure continued cost reasonableness and alignment with actual program requirements.

SECTION 8. DESCRIPTION OF THE MARKET RESEARCH CONDUCTED

(SEE PART 10) AND THE RESULTS OR A STATEMENT OF THE REASON

MARKET RESEARCH WAS NOT CONDUCTED

Formal market research was not conducted for this action because it is not a new procurement, but rather a ceiling increase to an existing, actively performing contract to ensure continuity of services.

The Government is aware that multiple qualified organizations within the global health sector are capable of providing similar technical assistance services, as demonstrated by the full and open competition conducted for the original award. However, conducting new market research or competing this requirement at this time would not be practicable, as it would not mitigate the significant transition time required for a new contractor to mobilize and assume responsibility for ongoing, complex, multi-country activities.

Given the need to maintain uninterrupted delivery of critical surveillance, laboratory, and outbreak response services, market research to identify alternative sources was not pursued, as it would not support timely execution of the Government's requirement.

SECTION 9. ANY OTHER FACTS SUPPORTING THE USE OF OTHER

THAN FULL AND OPEN COMPETITION

None.

SECTION 10. LISTING OF THE SOURCES, IF ANY, THAT EXPRESSED, IN

WRITING, AN INTEREST IN THE ACQUISITION

To date, no other sources have written to express an interest in the full scope of these activities.

SECTION 11. STATEMENT OF THE ACTIONS, IF ANY, THE

AGENCY MAY TAKE TO REMOVE OR OVERCOME ANY BARRIERS TO

COMPETITION BEFORE ANY SUBSEQUENT ACQUISITION FOR

THE SUPPLIES OR SERVICES REQUIRED

GHSD intends to continue supporting global health security programming through implementing partners in alignment with the America First Global Health Security Strategy.

The STRIDES contract was transitioned from USA ID to the Department of State, and future acquisition actions will be conducted under Department of State authorities and systems. GHSD anticipates completing the transition of this contract from USA ID to Department of State systems in

2026, with currently obligated USA ID funds expected to be expended.

To facilitate a return to competition, GHSD is currently developing country-level health implementation plans, expected to be completed between September and December 2026. These plans will inform the design of follow-on, competitively awarded mechanisms. GHSD has issued an

Annual Program Statement (APS) aligned with the America First Global Health Security Strategy, with country-specific addenda released on a rolling basis. These APS awards will competitively solicit applications for global health security activities, including surveillance, laboratory diagnostics, outbreak response, and related technical areas.

GHSD anticipates making awards under the APS. While certain specialized or sensitive activities (e.g., biosecurity-related functions) may remain under the STRIDES contract, the

APS process is expected to transition a significant portion of activities to competitive mechanisms.

The requested ceiling increase will enable continuity of critical services and allow for appropriate overlap between STRIDES and future follow-on awards to ensure an orderly, non-disruptive transition.

SECTION 12. CERTIFICATIONS

All reviews and approvals should be completed in the order listed unless otherwise authorized or required.

TECHNICAL AND REQUIREMENTS CERTIFICATION (FAR 6.303-2(b))

I certify that the facts and representations under my cognizance which are included in this Justification and its supporting acquisition planning documents, except as noted herein, are complete and accurate to the best of my knowledge and belief.

Technical Cognizance:

SIGNATURE:

Requirements Cognizance:

SIGNATURE:

LEGAL SUFFICIENCY REVIEW

This .J&A is hereby determined to he legally sufficient.

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