The U.S. Agency for International Development has unveiled the latest, largest contract within its NextGen suite of programs — a 10-year, $17 billion revamp of the way USAID procures and distributes health supplies across the world.
The newest contract centers on HIV/AIDS commodities, such as antiretroviral medications, hospital beds, and condoms. Alone, those commodities are expected to have a $4.8 billion price tag over the next decade, meaning the total award will likely land above $5 billion. And with so much money at stake, the competition for the contract will be fierce.
USAID has spent the last three years talking about the importance of localization and finding new suppliers. But according to experts across the industry, bids for this program — and the entire NextGen package — are likely to be battled out by USAID’s industry regulars.