The United States Agency for International Development (USAID) has released eight Requests For Information (RFIs) for the Next Generation Global Health Supply-Chain suite of programs (NextGen). Under NextGen, USAID expects to issue multiple contracts, with a total funding envelope of approximately $16 billion over a period of ten years, subject to the availability of appropriations.
When awarded in Calendar Year 2021, NextGen will replace USAID’s current Global Health Supply-Chain Program-Procurement and Supply-Management contract. The just-released RFIs will allow the Agency to glean additional insights and data from the private sector and other partners before publishing competitive solicitations for NextGen’s eight components.
For the first time, the design of NextGen strategically segments USAID’s demand for global procurement and logistics services by health program and medicine/commodity category into four separate potential contracts. This structure acknowledges the unique requirements of USAID’s different health programs and the drugs and supplies they need, and will build in a prudent redundancy. The design also includes integrated awards where there is alignment across health areas, such as in-country logistics services and technical assistance to governments and other partners on their health supply-chains, that could benefit from consolidation. Finally, a NextGen “Control Tower” award will provide strong coordination between the contracts, enhance visibility and transparency, and improve USAID’s overall management of risk.
Building on lessons learned over the last 15 years, under NextGen USAID seeks to transform the supply chain for its global health programs to achieve three principal goals:
- Maximize the availability, quality, and affordability of medicines and other health products and achieve better health outcomes for the clients served;
- Advance the Journey to Self-Reliance and promote 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.
Under NextGen, USAID’s Bureau for Global Health will do the following:
- Segment supply-chains to meet the unique needs of the patients USAID assists and the characteristics of the products they need;
- Accelerate the use of private-sector capabilities to improve the client experience and the efficiency of supply-chains;
- Re-focus technical assistance to support governments’ shift from acting as supply-chain operators to being stewards of availability and security by helping them create functional and efficient regulatory and oversight systems;
- Increase visibility down to the point of service, to strengthen demand-planning; optimize operations and those of implementing partners; and promote the appropriate use of medicines and other health products by providers, pharmacists/dispensers, and consumers;
- Use contract terms to incentivize the performance of implementing partners; and
- Monitor and mitigate risks proactively to ensure a supply of affordable, quality-assured, safe, and effective products for the clients served.
USAID has designed NextGen to attract new and underutilized partners, and create opportunities for best-in-class supply-chain operators and service-providers. USAID encourages all firms with experience in supply-chain management and logistics to respond to the RFIs, which are available here, and to consider applying when the final contract solicitations are released early in Calendar Year 2021.
For the latest updates on USAID’s NextGen Global Health Supply-Chain, visit: NextGen