Devex Highlights 5 Takeaways From Congressional Hearing On $9.5B USAID Global Health Supply Chain Project

Devex: 5 takeaways from the USAID supply chain hearings
“On Thursday, almost nine months after Devex first reported that the United States Agency for International Development’s largest-ever contract was facing major problems, the U.S. Congress held a hearing to examine the $9.5 billion global health supply chain project. Lawmakers questioned the design of the massive contract, USAID’s decision to award it to Chemonics International, and a system that allows contractors who do not meet performance targets to still get paid. … Here are five takeaways from the hearing. 1. Some lawmakers think USAID should be able to penalize contractors for poor performance. … 2. The PEPFAR chief had limited visibility into the contract as it was being designed and awarded. … 3. USAID is already thinking about how lessons from this project should inform the next global health supply chain award. … 4. USAID became aware of management problems even before Chemonics had delivered any shipments. … 5. USAID is aware of two cases where delays in the supply chain led to program disruption, but cannot say how many people were affected…” (Igoe, 5/18).

The KFF Daily Global Health Policy Report summarized news and information on global health policy from hundreds of sources, from May 2009 through December 2020. All summaries are archived and available via search.

The Henry J. Kaiser Family Foundation Headquarters: 185 Berry St., Suite 2000, San Francisco, CA 94107 | Phone 650-854-9400
Washington Offices and Barbara Jordan Conference Center: 1330 G Street, NW, Washington, DC 20005 | Phone 202-347-5270

www.kff.org | Email Alerts: kff.org/email | facebook.com/KaiserFamilyFoundation | twitter.com/kff

Filling the need for trusted information on national health issues, the Kaiser Family Foundation is a nonprofit organization based in San Francisco, California.