USAID business forecast: Q1 2022

The U.S. Agency for International Development recently held its final quarterly business forecast conference call for 2021, which looks forward to the first quarter of 2022. The call reported that USAID spent $26.9 billion through assistance and acquisition in the fiscal year ending September 2021. However, this figure was boosted by heavy spending on COVID-19 vaccines as part of an interagency agreement with the Department of Defense. Zooming into health Among the sectors, health remains the priority, with 40 opportunities under global health worth $18.9 billion and 10 HIV/AIDS programs worth $525 million. More than half of the funding for HIV/AIDS programs will come from the U.S. President's Emergency Plan for AIDS Relief. USAID’s Next Generation Global Health Supply Chain Suite of Programs, known as NextGen, accounts for the lion’s share of this money, with eight opportunities worth $16.7 billion. NextGen is the follow up to the $9.5 billion global supply chain contract currently run by Chemonics, and a number of the largest contractors in the development space have already begun to hire staff to compete for it. The eight contracts include a $5 billion procurement service agent, or PSA, for HIV health commodities — the biggest forecasted contract this quarter. Other large contracts under NextGen include $4.1 billion for an integrated health PSA; up to $2.7 billion for HIV/AIDS laboratory, diagnostic, and molecular commodities PSA; and up to $2.4 billion for technical assistance on supply chain and pharmaceutical management. The business forecast for the first quarter of 2022 suggests a downward trend, with $27.5 billion allocated for 230 opportunities over the next few years — 15.9% less than the previous quarter, and 8.6% less than the same period in the previous year. Devex looked into the data to see where the money will go and what the agency will prioritize in the coming months. Meanwhile, other global initiatives also reported significant allocations: $400 million for four cooperative agreements on reproductive health and family planning, collectively known as Promoting Results and Outcomes through Policy and Economic Levers, and $300 million to support USAID’s tuberculosis initiative SMART4TB. For country specific health programs, Uganda and Ethiopia are the priorities with $350 million each. Among the projects are $300 million to support the health system and health care services in Uganda, and six programs worth $50 million each for health facilities, nutrition, and maternal health in Ethiopia. Other development priorities Another $7.9 billion will be divided among nine development sectors, including: Democracy, human rights, and governance • Up to $300 million for the El Salvador Development Cooperation Strategy Annual Program States. • Up to $100 million each for global population data; the Central and Eastern Europe program; human security in El Salvador; and anti-corruption in Ukraine. Education • Up to $500 million under the Reading for East Africa’s Development program to support Kenya’s education sector. • Up to $100 million for phase two of Higher Education Scholarships program in Lebanon. Environment and global climate change • Up to $300 million toward the global program Green Recovery Investment Platform. • Up to $100 million each for civil works and treatment related to environmental remediation in Vietnam. Scrutiny and oversight The list of contracts includes $1.5 billion for administration and management-related procurements such as auditing; monitoring, evaluation, and learning services; and technical assistance. Janadale Leene Coralde contributed to this article. Try out Devex Pro Funding today with a free 5-day trial, and explore funding opportunities from over 850+ sources in addition to our analysis and news content.