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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).

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