RFI-GH-21-ICL Next Gen ICL.pdf

SOLICITATION TYPE: REQUEST FOR INFORMATION (RFI)

RFI NUMBER: RFI-GH-21-ICL

PRELIMINARY PROGRAM NAME: DRAFT Statement of Objectives (SOO) for Next Generation Global Health Supply Chain Suite of Programs (Next Gen):

In-Country Logistics

ISSUANCE DATE: October 21, 2020

DUE DATE: November 20, 2020; 12:00PM ET (Washington, DC)

The USAID/Washington Bureau for Global Health (GH) is issuing this RFI for the purposes of collecting details concerning the interest, capability, and market information related to the enclosed draft Statement of Objectives (SOO), and providing stakeholders an opportunity to review, comment, suggest, and enhance areas in the attached draft SOO for the Next Generation Global Health Supply Chain Suite of Programs (Next Gen): In- Country Logistics (ICL) award. To that end, information obtained through this RFI will be held in confidence and will not be disclosed to the public unless specifically requested by responding sources.

The two goals of this RFI are to:

1. Obtain details concerning interest in USAID’s anticipated requirements; and

2. Obtain public comments on the Questions to inform the design process.

USAID intends to issue a solicitation within the range $1B - $1.49B (billion) for an activity to fulfill requirements of USAID for the warehousing and transportation of USAID-funded health commodities, after their initial delivery to procurement-funded destinations, in a manner that exemplifies commercial logistics best practices, promotes local logistics market health and, through the development of a body of evidence, accelerates host-government engagement with the private sector while improving performance, accountability and cost. If solicitation is issued, offerors will design the Performance Work Statement (PWS) based on the provided Statement of Objectives

(SOO).

USAID has revised its program cycle guidance to facilitate more adaptive, context-driven programming approaches, and the choice of an SOO rather than a more prescriptive requirement document reflects this. USAID may (or may not) significantly revise this proposed new activity and planned solicitation resulting from the comments received, and from further stakeholder consultations. USAID reserves the right to, or not to, incorporate any, some, or none of the comments received from this RFI into any subsequent solicitation.

RFI-GH-21-ICL

Per Federal Acquisition Regulation 15.209(c), the following clause is incorporated into this RFI:

“FAR 52.215-3 REQUEST FOR INFORMATION OR SOLICITATION FOR

PLANNING PURPOSES (OCT 1997)

(a) The Government does not intend to award a contract on the basis of this solicitation or to otherwise pay for the information solicited except as an allowable cost under other contracts as provided in subsection 31.205-18, Bid and proposal costs, of the Federal Acquisition Regulation.

(b) Although “proposal” and “offeror” are used in this Request for Information, your response will be treated as information only. It shall not be used as a proposal.

(c) This solicitation is issued for the purpose of gathering information and comments to the SOO Draft attached to this document.”

This RFI is issued solely for information and planning purposes and does not constitute a Request for Proposals (RFP). Per FAR 15.201(e), responses to this RFI shall not be portrayed as proposals and will not be accepted by the USG to form a binding agreement.

This RFI is not to be construed as a commitment by the USG to issue any solicitation or make any award on the basis of this RFI, or to pay for any information submitted as a result of this request. Responders are solely responsible for all expenses associated with responding to this RFI. USAID reserves the right to modify the scope and scale of the

RFI.

USAID does not confer any advantage to organizations who respond to or provide comment on this RFI in any subsequent procurement. USAID will not provide answers to questions or feedback to comments submitted in response to this request. You will only receive an electronic confirmation acknowledging receipt of your response. No basis for claims against the USG shall arise as a result of a response to this RFI or from the USG’s use of such information. Questions about this RFI should be directed only to the email addresses identified below. USAID will not provide answers to any questions submitted in response to this RFI that deal with the specific content, schedule, or details of a future procurement. USAID is not seeking technical or cost proposals at this time; do not submit a full proposal as these will be discarded. USAID may publicly share responses unless the document is labeled as “confidential”. Organizations should not submit proprietary information.

By issuing the draft for comment, USAID aims to consult with a broad community of public and private sector actors. USAID is requesting your comments to potentially assist it in refining the draft SOO to ensure clarity, completeness, maximum development impact, and coordination with existing and planned USAID and other development partner programs.

Organizations must provide submissions by the closing date and time noted on page 1 of this RFI.

Only submission via email is required; no hard copy delivery will be accepted. E-mail submissions shall be sent to Mrs. Natalya Portnyagina at nportnyagina@usaid.gov.

Respondents must prepare their submission in English and address the information requested below. All submissions must include Section I “Cover Page”, and Section II “Responses to Questions/Comments.” Submissions must use only 8.5 inch by 11-inch paper, single-spaced pages for all narrative documents and each page numbered consecutively. Interested parties must use Times New Roman font 11 or a similar size typeset and be provided in MS Word or PDF format.

I. Cover Page with Business Information (1 page)

● Organization/firm: name, address, contact information.

● Point of Contact(s): name, title, phone number, address, e-mail address.

● Statement of self-certification of business size and socio-economic status of the Organization/firm.

II. Comments/Questions (15 Page Limit)

Respondents are limited to fifteen (15) pages inclusive of any attachments. The USG will not review any responses beyond 15 pages. Please ensure that comments are concise and specific to the information within this RFI.

Statement of Objectives (SOO)

1. Does this SOO clearly describe this award’s role in responding to provide warehousing and transportation, for USAID-funded health commodities, after their initial delivery to procurement-defined destinations, in a manner that exemplifies commercial logistics best practices, promotes local logistics market health in Africa/Asia/LAC, and, through the development of a relevant body of knowledge, accelerates long-term, and direct, engagement of host governments with private sector logistics providers? If your answer is “no”, please explain what should be added?

2. Does this SOO adequately express what is intended to be achieved through this award in terms of advancing USAID’s private sector engagement (PSE) policy by leveraging the commercial logistics sector’s expertise, people, infrastructure, technologies, distribution networks, and more to increasingly build supply chain resilience of host government programs and subsequently improve service to beneficiaries, prevent suffering and save lives? If your answer is “no,” please explain how the SOO can be improved.

3. Do you have any other general feedback on the SOO or feedback on specific parts that you think will improve the SOO? Are there other parts of the SOO that require further clarification? Please specify what clarifications are needed and why, including page numbers if you are referencing a specific section of the SOO.

Capabilities

1. Please provide your organization's definition of, and if applicable, provide examples of your organization’s experience with the following:

● 2PL

● 3PL

● 4PL

For RFI respondents who have provided examples of their organization’s 4PL experience please describe the following:

■ Scale, duration, location and scope of activities, and how they are connected to your definition of a 4PL

■ Number of staff that were directly and indirectly supporting the contract

■ Number of logistics service providers utilized for warehousing and distribution

2. For 4PL organizations, which are also 2PL and 3PL providers, describe measures taken to create and implement a firewall between these divisions and the division responsible for 4PL management.

3. Describe how your organization ensures that qualified, 2PLs and 3PLs have reasonable access to respond to tenders.

4. Does your organization have a system which allows for numerous transporters to provide spot pricing as an alternative to static pricing set in advance? If yes, please describe.

5. Describe the organization’s process for undertaking a market assessment to determine which logistics service providers (LSPs) to work with.

6. As a 4PL, how does your organization leverage competition in the local market to ensure value is being obtained?

7. As a 4PL, why is the health of the local logistics market important to you, and what steps has your organization taken to expand or professionalize it? Specific examples are appreciated.

8. Provide your description and purpose of a control tower, and how your organization uses such a system? How is the information accessed by your clients?

9. Describe the process by which the performance of logistics services providers is assessed and managed. Include the KPIs used for both warehousing and transportation providers.

Cost structure

1. How do you charge customers for logistics services? Please describe what costs are rolled together versus charged separately (e.g. freight, insurance, warehousing, last mile delivery, fee/profit, etc.).

2. How does your company charge customers for your personnel, overhead and other administrative costs?

3. Have you held a contract with the US Government before and if so, what type of contract(s) has your company held (i.e. cost reimbursement, fixed-price, award or incentive fee)? What contract type(s) do you consider work best for the provision of in-country logistics?

4. What incentive structure, based on cost, service and/or agility have you used with other clients that might be applicable to using under this award.

Indicators & Data Exchange

1. Describe the information technology platform(s) your company uses to track logistics services from initiation to last mile delivery? What issues, if any, do you anticipate in using your current systems to manage orders and drive innovation and efficiencies in the ICL award?

2. If you have previously had clients with which you were compensated using an incentive structure, based on cost, service and/or agility how do you think something similar could be done under this award?

3. The operation of the NextGen Control Tower award will require an extensive collaboration between its control tower award and the ICL award. What are your experiences, if any, with the best practices and strategies to providing logistics services while relying in part on the information provided by a control tower outside of your direct control?

4. What are your experiences, if any, with having your performance measured, based on data you submit to a control tower outside of your direct control? What best practices and strategies for doing this would you expect to see in the NextGen Control Tower award to manage this?

5. What would be the key challenges you would identify for the transition from the existing GH contractors managing in-country logistics to this award? What would you consider to be a reasonable timeline for the transition?

We look forward to your responses to this Request for Information.

Sincerely, Abibou Oussantidja, Branch Chief Contracting Officer

M/OAA/GH/GHI

USAID/Washington

ATTACHMENT J.1 – DRAFT STATEMENT OF OBJECTIVES

IN-COUNTRY LOGISTICS (ICL)

J.1.1 PURPOSE

In-Country Logistics (ICL) is a mechanism within the Next Generation Global Health Supply Chain (NextGen) suite of programs. After initial commodity delivery to procurement-defined destinations such as whether ports of entry or central medical stores, the ICL will provide warehousing and transportation to defined destinations in a manner that exemplifies commercial logistics best practices, promotes local logistics market health and, through the development of a relevant body of knowledge, accelerates host-government engagement with the private sector while improving performance, accountability and cost. This award will not procure any health commodities.

J.1.1.1 PLACE OF PERFORMANCE

The countries and territories served by this award may include, but are not limited to, the following: The Islamic Republics of Afghanistan, Mauritania, and Pakistan; the Commonwealth of The Bahamas; the People’s Republic of Bangladesh; Barbados; Burma; the Kingdoms of Cambodia, eSwatini, Lesotho; the Republics of Angola, Bénin, Botswana, Burkina Faso, Burundi, Cameroon, Chad, Côte d'Ivoire, El Salvador, The Gambia, Ghana, Guatemala, Guinea, Guinea-Bissau, Haïti, Honduras, India, Indonesia, Kazakhstan, Kenya, Liberia, Madagascar, Malawi, Mali, Mozambique, Namibia, Nicaragua, Niger, Perú, The Philippines, Rwanda, Sierra Leone, Sénégal, South Africa, South Sudan, Suriname, Tajikistan, Togo, Trinidad and Tobago, Turkmenistan, Uganda, Uzbekistan, Yemen, Zambia, and Zimbabwe; the Democratic Republic of Congo; the Dominican Republic; the Federal Democratic Republics of Ethiopia and Nepal; the Co-operative Republic of Guyana;

Jamaica; the Hashemite Kingdom of Jordan; Malaysia; the Federal Republic of Nigeria; the Independent State of Papua New Guinea; the United Republic of Tanzania; Ukraine; the Bolivarian Republic of Venezuela; the Socialist Republic of Vietnam; and West Bank and Gaza.

J.1.2 BACKGROUND

The Bureau for Global Health (GH)’s overarching goal is to improve human health and to prevent suffering, save lives, and create a brighter future for families across the globe. Since 2005, USAID has procured and delivered more than 5,000 different products valued at over $8.5 billion to more than 50 countries.

GH uses multiple mechanisms to strengthen host-government health systems for commodity supply chain management. Where required these mechanisms, operating as fourth-party logistics providers (4PL), procure and manage the commercial services of logistics companies to provide in-country warehousing and transportation services. These services currently augment the logistical capabilities of the host government. The contractor Chemonics International currently implements the Global Health Supply Chain - Procurement and Supply Management (GHSC-PSM) and the USAID Global Health Supply Chain (GHSC) – Technical Assistance (TA) Francophone Task Order (FTO). The organization Guidehouse currently implements the Global Health Supply Chain Technical

Assistance - Tanzania Program (GHSC TA-TZ).

These four GH Offices fund the strengthening of host-government health systems for commodity supply chain management for USAID programs and Presidential Initiatives:

1. Office of HIV/AIDS (OHA)

2. Office of Health, Infectious Diseases (ID)

3. Office of Population and Reproductive Health (PRH)

4. Office of Maternal Child Health and Nutrition (MCHN)

Information on the scope and scale of GH’s in-country logistics activities is available on USAID’s Development Experience Clearinghouse (DEC), which has been updated with periodic reports from GHSM-PSC, GHSC TA-TZ, and FTO.

NextGen, under its suite of potential awards, will restructure USAID’s portfolio of health commodity supply chain management activities to include multiple awards/mechanisms designed to to improve the capacity of global supply chains, enhance the ability of in-country supply chains, strengthen host-government health systems for commodity supply chain management and support end-user delivery These potential awards are:

● Procurement and Logistics Services Family Planning and Reproductive Health, Maternal and

Child Health and Nutrition and Other Health Elements

● Procurement Service Agent HIV focused

● Procurement Service Agent Lab, Diagnostics, and Molecular

● Procurement Service Agent Malaria

● Control Tower Platform

● Quality Assurance

● Risk Management and Mitigation.

● Supply Chain Technical Assistance

● In-Country Logistics

J.1.3 PRIVATE SECTOR ENGAGEMENT

Across development sectors, private-sector supply-chain actors generate jobs, influence policy, create innovative solutions, invest in supply-chains that underpin public services, and provide inputs that expand opportunities for better livelihoods.

Private Sector Engagement (PSE) is a strategic approach to planning and programming through which USAID consults, strategizes, aligns, collaborates, and implements with the private sector for greater scale, sustainability, and effectiveness of development or humanitarian outcomes. USAID is undertaking a major cultural and operational transformation to expand PSE Agency-wide. Through its new PSE Policy, USAID has issued an Agency-wide call to action and mandate to work hand-in-hand with the private sector to design and deliver our development and humanitarian programs in all sectors. This policy signals an intentional shift towards enterprise-driven development as a more sustainable way to empower people, communities, and countries on their journey to self-reliance.

PSE with the logistics industry has proven to be an effective means for building government capacity, supporting supply-chains that underlie basic social services, and filling gaps in demand for services in many cases.

J.1.4 PROBLEM STATEMENT

After health commodities are delivered to their procurement-specified destinations there must be sufficient logistics capabilities within a country, primarily for storage and transportation, to enable them to move, and ultimately be available, to end users and beneficiaries. In some countries USAID utilizes and supports already established government-operated storage and transportation infrastructure. When these government-operated systems and infrastructure are insufficient to achieve timely commodity availability, USAID may require outsourcing logistics services to the private sector to augment a host-government’s logistics capabilities. These types of services will be contracted through this ICL Award.

ICL is the NextGen mechanism designated as the primary provider of in-country warehousing and transportation for GH commodities, particularly when the needs are extensive in breadth and complexity, and where augmentation will accelerate long-term engagement of host governments with the private sector.

J.1.5 PERFORMANCE OBJECTIVES

The commodities to be transported and warehoused under this contract include, but are not limited to, the following:

1. Pharmaceuticals

a. Antiretroviral medicines

b. Antimalarial medicines

c. Medicines to prevent and treat tuberculosis

d. Medicines to prevent and treat opportunistic infections

e. Other anti-infective medicines

f. Hormonal Contraceptives

g. Essential medicines

2. Ready to Use Therapeutic/Supplementary Foods (RUTF)

3. Insecticide Treated Nets (ITN)

4. Condoms and Intrauterine Devices

5. Rapid Diagnostic Tests (RDTs) for Malaria, HIV, etc.

6. Kits for Voluntary Male Medical Circumcision

7. Medical supplies (gloves, gowns, etc.)

8. Medical Equipment (hospital beds, etc.)

9. Lab samples and paper based results.

10. Laboratory equipment, reagents, and consumables

11. Medical supplies (gloves, gowns, etc.)

12. Medical Equipment (hospital beds, etc.)

ICL has the following objectives:

Objective 1: In-country logistics services are provided to execute efficient and effective warehousing and transportation of health commodities in countries where USAID implements health programs.

Technology, infrastructure, and transactions with second-party logistics providers (2PL) and 3PLs are managed to facilitate continuous monitoring for potential problems affecting warehousing and transportation of health commodities, proactive communication of problems and associated risks, and the tracking of problems through until their resolution.

Sub-Objective 1A: Health commodity warehousing events are managed in accordance with industry best practices and adhere to relevant warehousing standards:

Examples of relevant warehousing standards include, but are not limited to: World Health Organization Good Storage Practices (GSP) and Good Distribution Practices (GDP), host-country regulatory requirements, and documented product requirements.

Examples of warehousing events include, but are not limited to:

● Supporting obtaining of importation waivers and facilitating the clearance and delivery of USG-procured commodities as necessary.

● Assuming custody of health commodities at facilities in countries according to agreed receipt schedules

● Conducting warehousing activities to include, but not limited to, inventory management and tracking, proper handling and storage of commodities, and cold chain storage

● Provision of order fulfillment services for the picking, packing and order assembly of commodities from its managed warehousing for supply to lower level warehousing points or service delivery points

● Using processes incorporating GS1 standards to identify, capture and transmit commodity details and subsequently improve traceability and expand commodity visibility

● Assisting with in-country warehousing required for recalls of products procured by USAID, other USG Agencies, partner country entities, implementing partners, and other donors

● Implementing policies and procedures to correctly manage waste and disposal of expired or damaged products

Sub-Objective 1B: Health commodity transportation events are managed in accordance with industry best practices and adhere to relevant warehousing standards:

Examples of transportation events include, but are not limited to:

● Assuming custody of health commodities from stakeholders -- or maintaining custody if retrieved from a self-managed warehouse -- and readying them for transport

● Transporting health commodities and lab samples and results, within agreed to delivery timelines, between designated points of origin to:

○ a single destination within country

○ multiple destinations within country

● Providing the in-country transportation required to manage recalls of products procured by USAID, other USG Agencies, partner country entities, implementing partners, and other donors.

Examples of relevant transportation standards include, but are not limited to: World Health Organization Good Storage Practices (GSP) and Good Distribution Practices (GDP), host-country regulatory requirements and documented product requirements.

Objective 2: Best value in the procurement and provision of different categories of logistics event management is achieved

A solutions-based approach, structured to incorporate a 4PL provider as an integrator that assembles the resources, capabilities, and technology of its own organization and other organizations to design, build and run comprehensive logistics solutions that reduce risks and achieve best value in the procurement of required logistics services, is achieved.

Examples of activities that may contribute to achieving best value in the procurement and provision of different categories of logistics events include, but are not limited to:

● Developing an understanding of the business requirements for the services needed, both now and in the future

● Undertaking market research and developing an understanding of the market by identify suitable Logistics Services Providers (LSPs); generating interest and awareness in the marketplace; gathering information on the market alternatives to inform specifications;

research price and cost drivers

● Developing specifications of requirements, and necessary data, to level the playing field between existing and potential LSPs

● Undertaking of fair, transparent and accessible tender processes

● Proposal evaluations and contract negotiations

● Obtaining dynamic pricing from LSPs based on discrete activities

● Allocation of logistics activities across subcontractors

● Conducting country analysis in collaboration with donors, health programs, and other in-country supply chain actors, of logistics requirements by category, duration of needs, and commodity type.

● Using analyses to forecast trends, risks, demands, and logistics services supply changes, enabling the informed provision and procurement of logistics services and contributing to improvements in quality, availability and value for money.

● Providing continuous operational improvement and innovations aimed at improving in-country supply chains.

Objective 3: Advance USAID’s Private Sector Engagement (PSE)

To advance USAID’s PSE policy, ICL will leverage the commercial logistics sector’s expertise, people, infrastructure, technologies, distribution networks, and more to increasingly build supply chain resilience of host government programs and subsequently improve service to beneficiaries, prevent suffering and save lives.

Examples of activities that will advance USAID’s PSE include, but are not limited to:

● Contributing to an expansion and professionalization of the in-country logistics service providers for the overall purposes of increasing the market’s ability to respond to health supply chain needs.

● Designing and implement innovations, activities and processes such that their results will contribute to:

○ Demonstrating to partner governments the value of private sector logistics providers

○ Further inform USAID’s PSE tools and approaches for use in, and across, global health countries.

○ Demonstrating to partner governments how 3PL providers should be utilized and managed, as well as the value of 4PL providers in fulfilling that function

● Managing operations such that in-country baseline logistics operational capabilities, costs, technical considerations, risks and emerging requirements can be compared across countries and between activities.

Objective 4: Technology and analytic capabilities to support and continually improve in-country logistics performance are provided

A strategy for ongoing technology innovation, information technology system (ITS) implementation and ITS management, is to be incorporated into the logistics procurement and execution activities to facilitate management and continuous improvement. Varied logistics data can be generated, collected, analyzed, and reported on. The ITS must be able to fulfill the data production, analytics, data sharing and reporting, as well as operational requirements of USAID. The strategy will include processes meant to prevent data loss within an ITS and have data recovery plans to ensure continuity of its operations.

Best practices in logistics services provision will require an ITS that incorporates the use of existing and new platforms that will be both in and out of the award’s direct management and will allow for USAID to continually have direct, and real-time (or very near) visibility into the status of logistics activities and overall operational performance.

The ITS must provide real-time reporting and visibility of transportation and warehousing operations and performance. The ITS will also provide the ability to visualize data, have standard dashboard reporting, the ability to run and export unique reports and fulfill the data production, analytics, data sharing and reporting, as well as other operational requirements of USAID.

Data on the management and status of warehousing and transportation actions will be available to USAID. This may require either submitting USAID-defined reports or working directly with an information sharing platform that facilitates the exchange of end-to-end supply chain data between various GH awards and counterparts in USAID’s Global Health program focus countries.

J.1.6 ACTIVITY PARAMETERS

J.1.6.1 PERFORMANCE INDICATORS

Data will be generated and used to assess, document and share information on how ICL affects availability of commodities. Appropriate systems to conduct analytics on procurement services performance, including indicators for efficiency, effectiveness, and meeting customer requirements will be developed. In order to compare performance with predecessor projects there will be mandatory indicators to be used across all projects and in addition custom indicators may be designed. Mandatory Key Performance Indicators (KPIs) at award commencement are referenced below and detailed in (tbd). Monitoring Evaluation and Learning Plan. All performance indicators will be generated from the NextGen Control Tower; therefore, the contractor will be required to make relevant transactional data available for calculation of the performance indicators and subsequent reporting.

J.1.6.2 RELATIONSHIP TO OTHER ACTIVITIES AND REDUNDANCIES

USAID

As directed by the USAID COR, the Contractor must be able to assume responsibilities for in-country logistics activities from other USAID implementing partners already doing this now and contemporaneously after awarding. The Contractor is not expected to retain staff to respond to such emergencies. USAID will provide ample time and resources for the Contractor to mobilize expertise and respond to such events.

The Contractor is expected to be able to demonstrate best-practices in logistics services provision through demonstration of visibility into award-managed logistics activities through the provision of access to award-managed customer-facing ICT portals or platforms.

Other USG, Donor and Host-Government Coordination

USAID’s support for in-country logistics will complement and build upon the work done by other global donors and partners. The Contractor must be able to coordinate with other global donors including, but not limited to, the Global Fund, The United Nations Population Fund (UNFPA), The Vaccine Alliance (GAVI), Bill and Melinda Gates Foundation, UNICEF, Unitaid, and partner governments. This coordination could include, but not be limited to, pooling in-country volumes for commodity and freight logistics and looking at joint mechanisms for using the private sector for in-country warehousing and distribution.

The Contractor is expected to be able to demonstrate, to other USG, donor and host-government counterparts, best-practices in logistics services provision through demonstration of visibility into award-managed logistics activities through the provision of access to award-managed customer-facing ICT portals or platforms.

NextGen Awards Coordination with other stakeholders and implementing partners responsible for the implementation of one or more of the components of the NextGen is necessary. Examples of coordination across awards might include, but is not limited to, meetings convened by USAID across implementers and coordination of work plan activities as directed by the USAID Contracting Officer’s Representative

(COR).

Examples of coordination expectations with specific awards could include, but are not be limited to the following:

Supply Chain Technical Assistance Awards

The award(s) will provide a comprehensive array of technical assistance services to improve operational excellence in the performance of country supply chains and improve the availability of health commodities to meet the needs of today’s populations as well as support countries on their journeys to self-reliance to meet the needs of tomorrow’s populations. Investments may include, but are not limited to, support and strengthen warehousing, distribution, quantification, forecasting, procurement, transportation, and information systems with the mandate to achieve country led and managed supply chain systems. The award(s) will also provide support to refocus the role of country governments from supply chain operators to stewards of product availability and security. This includes leveraging the broader landscape of country capacities, including increased use of the private sector, to improve supply chain performance and client experience.

As directed by USAID, the ICL contractor will be expected to contribute their expertise to supply chain strengthening activities conducted by other implementing stakeholders.

Examples of this could include, but not be limited to any of the following:

● Participation in planning for phase-in and phase-out of medicines and health technologies (e.g. new ACTs, RDTs, nets, diagnostic instruments) to be or under the responsibility of the in-country logistics provider

● Providing visibility into the status of award-managed logistics activities through the provision of access to award-managed customer-facing ICT portals or platforms.

Data and reporting from the ICT portal must be accessible and downloadable by entities chosen by USAID.

● Demonstrating and sharing new logistics operational approaches and thus informing the possible transition of the role of governments from operating warehouses and distribution to managing outsourced models to improve the availability of quality assured and affordable health commodities.

● Participating in routine resupply planning of warehoused commodities to service delivery sites

● Participating in campaign planning for commodities distributed via campaigns

● Participating in initial in-country distribution planning for in-coming procurements

● Planning distribution routing and timing

● Participating in the adaptation of existing supply chains to reach further into the community and to be flexible, agile, and responsive to emergencies or unanticipated shocks.

● Participating in exercises that explore alternate distribution models

● Procuring and providing warehousing for operational use by government programs

● Identifying private-sector logistics services providers and supporting increases in their capacity to conduct pharmaceutical and supply chain system operations

● Providing systematic cost-effectiveness evaluation and operational planning for in-country logistics to help ensure that available storage, transport, and human resources are used efficiently

Quality Assurance Award

The Contractor must collaborate and cooperate with USAID and the NextGen quality assurance contractor (TBD) to ensure compliance with applicable United States Government (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 for the storage and transport of commodities.

The contractor must manage product recalls to include immediately identifying a recalled product that is in its custody (prior to being consigned) and prevent its delivery to beneficiaries; assist with recalls of health commodities that are no longer in its custody; and if required, assist with any recalls that are procured by other USG agencies, partner countries’ organizations, implementing partners, and/or donors. As part of the product recall process, the contractor may also be directed to collect recalled product, quarantine and/or destroy recalled product, obtain reimbursement from the vendor(s) as required, and notify other stakeholders.

Control Tower Award

This Next Generation Global Health Supply Chain Suite of Programs (NextGen GHSC) award will provide visibility of commodities procured through the Next Generation Global Health Supply Chain Suite of Programs: Procurement Service Agent (PSA HIV), Procurement Service Agent Diagnostics, Procurement Service Agent Malaria, and Procurement and Logistics Services Family Planning and Reproductive Health, Maternal and Child Health and Nutrition, and Other Health Element procurements, as they move through the procurement and delivery cycle. Through this award, it is anticipated, but is subject to change, that the NextGen GHSC awards will track orders and manage performance of their individual program supply chains within this common platform with separate security access and control given to users.

Because various NextGen activities performed by different implementing partners are interdependent, it is critical that data is shared among the NextGen implementing partners to ensure smooth operations of the Global Health Supply Chain (GHSC). For example, without receiving quality inspection results from the QA contractor, a PSA partner will not be able to ship commodities procured. Similarly, without demand plans prepared by the TA partner together with host country governments, the PSA contractors will not be able to develop accurate procurement plans.

To facilitate cost-efficient data sharing and provide centralized access to the NextGen operational information, USAID will establish a supply chain control tower (NextGen Control Tower). The NextGen Control Tower will serve as a central information hub that is used to capture data from each GHSC activity and support decision-making by USAID and the NextGen implementing partners. The diagram below depicts the role of the NextGen Control Tower in supporting the data exchange and providing centralized data access.

To support the NextGen design described above, USAID imposes the following requirements:

(1) The contractor must supply, via Electronic Data Interchange (EDI), operational data from the activities it is responsible for to the NextGen Control Tower. Appendix X, the GHSC Operational Data Specification, contains details on data collected from the past operations of the USAID’s GHSC program, representing the type and range of the supply chain operational data that will be captured by the NextGen Control Tower. The specification in Appendix X is for informational purposes only, as the data specifications for NextGen will be developed by the NextGen Control contractor after contract award.

(2) The contractor must receive operational data generated by another NextGen implementing partner through the NextGen Control Tower. The electronic exchange of operational data directly between the contractor and another NextGen implementing partner is not allowed except as approved by USAID. Appendix XX, Illustrative Data Exchange via the Control Tower depicts the data exchange between the NextGen implementing partners via the Control Tower and will be finalized by the Control Tower contractor after the contract award.

(3) The contractor must establish a data sharing & use agreement with the NextGen Control Tower contractor to define the data exchange details, including but not limited to:

● Data elements the contractor will supply to the Control Tower;

● Data elements the contractor will receive from the Control Tower;

● EDI mechanism to be used for data exchange with the Control Tower;

● Applicable data standards;

● Data interchange frequency;

● Data quality assurance;

● Data exchange security requirements such as authentication and encryption;

● Protection of confidentiality of proprietary information such as commodity cost and pricing data;

● Data exchange exception handling; and

● Control Tower help desk support.

The Data Sharing & Use agreement between the contractor and the NextGen Control Tower contractor is a required deliverable and is subject to the approval by the Contracting Officer. [The Data Sharing & Use agreement must be consistent with all contractual requirements related to data and data exchange, including those requirements concerning data accuracy, integrity, completeness, and timeliness.]

Risk Management and Mitigation

This award(s) will identify and mitigate supply chain vulnerabilities and potential risks both globally and locally, including fraud, abuse and/or misuse, counterfeit, and diversion of products and financial resources. It will also verify second and third tier suppliers and other vendors subcontracted under the other awards under NextGen to improve supply chain integrity and security.

The awardee(s) must coordinate with other awardees under the program.

The ICL Contractor is expected to proactively communicate problems and associated risks with the Risk Management and Mitigation award.

NextGen Procurement Service Agent Awards

There are 4 awards within the NextGen suite of programs that will provide procurement services.

For each of these awards the ICL contractor will be expected to be able to provide assistance in the clearance of shipments. Details for each of these awards are as follows:

Procurement and Logistics Services Family Planning and Reproductive Health, Maternal and Child Health and Nutrition and Other Health Elements

This award will provide procurement and related services for family planning and reproductive health and maternal and child health and nutrition commodities, commodities to respond to infectious disease outbreaks, and other ad hoc needs as required, encompassing different functions of the supply chain (e.g., category management, strategic sourcing, supplier management, transactional procurement and demand planning). This award will provide global freight, warehousing, and delivery services for commodities purchased under this award.

Procurement Service Agent HIV focused

This award will provide procurement and associated supply chain services for HIV/AIDS health commodities excluding HIV/AIDS diagnostic and lab commodities encompassing the required procurement functions of a supply chain (e.g., category management, strategic sourcing, supplier management, and demand planning and procurement delivery). The PSA will negotiate incoterms with vendors for delivery of commodities into country, and, in exceptional cases, procure logistics services for commodities purchased under this award to ensure timely delivery.

Procurement Service Agent Lab, Diagnostics, and Molecular

This award will provide procurement and associated supply chain services for HIV/AIDS lab, diagnostic and molecular commodities encompassing different functions of a supply chain (e.g., category management, strategic sourcing, supplier management, demand planning and procurement). The PSA will negotiate incoterms with vendors for delivery of commodities into country, and, in exceptional cases, procure logistics services for commodities purchased under this award to ensure timely delivery.

Procurement Service Agent Malaria (PSA Malaria)

This award will be one award in the Next Generation Global Health Supply Chain Suite of Programs. It will provide procurement and supply chain services for malaria health commodities. It will encompass different services within the procurement as-a-service value chain (e.g., category management, strategic sourcing, supplier management, transactional procurement and demand planning). It will provide a robust information system to support operations and performance improvement. The PSA will negotiate incoterms with vendors for delivery of commodities to country, and, as needed, provide freight and warehousing for commodities purchased under this award. The awardee must coordinate with other awardees under the program.

J.1.7 PERFORMANCE INCENTIVES

TBD