NextGen Global Health Supply Chain

NextGen Overview

In Calendar Year 2022, USAID plans for NextGen to replace USAID’s current Global Health Supply-Chain Program. Building on lessons learned over the last 15 years, through NextGen,  USAID is transforming its global health supply chain program to:

• Maximize the availability, quality, and affordability of medicines and other health products and achieve better health outcomes for the clients served;
• Strengthen local capacity;
• Advance country-level sustainability and promote locally-managed procurement and supply chains in the countries where USAID works; and
• Increase value for the U.S. taxpayer, and reduce the chances of waste, fraud, and diversion even further.

Through NextGen, USAID’s Bureau for Global Health will do the following:

• Segment supply chains to meet the unique needs of the communities USAID assists and the characteristics of the products they need;
• Accelerate the use of private-sector capabilities to improve service to our beneficiaries 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 ensuring  of availability and security of health commodities 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 our beneficiaries.

For the first time, the design of the USAID supply chain program strategically segments USAID’s demand for global procurement and logistics services by health program and medicine/commodity category separate potential contracts. This structure acknowledges the unique requirements of USAID’s different health programs and the drugs and supplies they need while building in a prudent redundancy. The design also includes integrated awards where there is alignment across health areas, such as in-country logistics services, quality assurance and technical assistance to governments and other partners on their health supply chains, that could benefit from consolidation.  A “Control Tower” award will support strong coordination between the contracts, enhance visibility and transparency, and improve USAID’s overall management of risk.

USAID has designed NextGen to attract new and underutilized partners, and create opportunities for best-in-class supply-chain operators and service providers.

NextGen Planned Awards 

Under NextGen, USAID anticipates awarding multiple contracts for periods of up to ten years, subject to the availability of funds. The following awards are planned for NextGen:

• Control Tower (CT)
• In-country Logistics (ICL)
• Procurement Service Agent- Malaria, Family Planning and Reproductive Health, Maternal and Child Health and Nutrition and Other Health Elements ("Integrated PSA").
• Procurement Service Agent- HIV (PSA HIV)
• Procurement Service Agent- Lab, Diagnostics, and Molecular (PSA Diagnostics)
• Qualifying, Testing and Issuing (QuTI)
• Comprehensive Technical Assistance for Health Supply Chain and Pharmaceutical Management (Comprehensive TA)
• NextGen Technical Assistance Marketplace for Health Supply Chain and Pharmaceutical Management (Marketplace TA)
• Strategic Risk Management (SRM)

USAID encourages all firms with experience in supply chain management and logistics to consider applying when the final contract solicitations are released in Calendar Year 2022.

Business Forecasts 

Further details about NextGen’s future awards may be found on USAID’s Business Forecast website (keyword search “NextGen”).

Requests For Information  (RFIs)

RFIs are available at SAM.gov for the following awards:

• Control Tower (CT)
• In-country Logistics (ICL)
• *Procurement Service Agent- Family Planning and Reproductive Health, Maternal and Child Health and Nutrition and Other Health Elements (PSA FP/RH, MCHN)
• *Procurement Service Agent- Malaria (PSA Malaria)
• Procurement Service Agent- HIV (PSA HIV)
• Procurement Service Agent- Lab, Diagnostics, and Molecular (PSA Diagnostics)
• Qualifying Testing Issuing (QuTI)
• Comprehensive Technical Assistance for Health Supply Chain and Pharmaceutical Management (Comprehensive TA)
• Strategic Risk Management (SRM)

*Subsequently combined into Procurement Service Agent- Malaria, Family Planning and Reproductive Health, Maternal and Child Health and Nutrition and Other Health Elements ("Integrated PSA").

NextGen Industry Day

On January 13, 2021, USAID hosted more than 1,400 attendees from 25 countries for a NextGen Global Health Supply Chain program Industry Day. Participants received information on a variety of topics including the planned architecture for NextGen, planned awards, as well USAID’s compliance guidance. Industry Day also provided an opportunity for businesses to network with each other and explore potential team arrangements..

USAID thanks all of the participants for their attention and contribution.

The Industry Day presentation, transcript, FAQs, and participant list can be found at Industry Day.