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We drive change with technical acumen, unparalleled systems, and continuous innovation.
We make development work. In more than 100 countries around the globe, our 6,000+ professionals deliver lasting results to the communities in which they live and work. Because with decades of experience operating in the world’s most complex environments, we know how
We combine broad geographical experience with technical depth and unparalleled project management expertise. We work on the most intractable and urgent challenges of our time, ranging from food security and health to energy security, education, and private sector development. Our management systems allow us to document, measure, and apply recent innovations and proven best practices across multiple regions and sectors to achieve effective and sustainable development.
https://chemonics.com/what-we-do/
see also: https://en.wikipedia.org/wiki/Chemonics
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Award Planning and Oversight Weaknesses Impeded Performance of USAID’s Largest Global Health Supply Chain Project
Audit Report
Report Number
9-000-21-004-P
Mar 25, 2021
In April 2015, USAID issued a $9.5 billion award to Chemonics to implement the Global Health Supply Chain Program – Procurement and Supply Management project, the largest component of the Agency’s Global Health Supply Chain Program. In response to a request from the Senate Foreign Relations Committee, we assessed USAID’s procurement and management of the project. We determined that weaknesses in planning and evaluation processes hindered USAID’s ability to fully support key decisions made in the design and award of the contract. Additionally, while USAID ensured deliveries generally arrived in the right quantities, more oversight is needed to improve timeliness and contractor performance. We made 14 recommendations to strengthen USAID’s design and procurement processes and improve its management of the GHSC-PSM award and successor projects.
https://oig.usaid.gov/sites/default/files/2021-04/9-000-21-004-P.pdf
Recommendation1
Revise policy to clarify the role and the extent of involvement of the contracting officer on a project design team to ensure compliance with the Federal Acquisition Regulation.
Questioned Cost0 Funds for Better Use0 Close DateDec 10, 2024
Recommendation10
Train USAID activity managers to use the project's management information system for requisition order approval and monitoring responsibilities.
Questioned Cost0 Funds for Better Use0 Close DateMar 25, 2021
Recommendation11
Establish a timeframe for addressing the recommendation proposed by Bureau for Global Health leadership in 2018 on creation of a central supply chain unit and set target dates for the implementation of accepted changes.
Questioned Cost0 Funds for Better Use0 Close DateMar 25, 2021
Recommendation12
Establish a timeframe for addressing the recommendation proposed by management consultants in 2019 on risk mitigation issues and set target dates for the implementation of accepted changes.
Questioned Cost0 Funds for Better Use0 Close DateMar 25, 2021
Recommendation13
Require USAID activity managers to use the project's management information system for requisition order approval and discontinue the use of proxy approvals.
Questioned Cost0 Funds for Better Use0 Close DateMar 25, 2021
Recommendation14
Work with Chemonics to complete an assessment of the organizational structure and staffing needs to manage the Global Health Supply Chain - Procurement and Supply Management project.
Questioned Cost0 Funds for Better Use0 Close DateMar 25, 2021
Recommendation2
Develop and implement guidance outlining the minimum supporting documentation required for key decisions influencing the design of an award.
Questioned Cost0 Funds for Better Use0 Close DateDec 17, 2024
Recommendation3
Develop and implement guidance to help prepare risk assessments, mitigation plans, and plans during project design that take into account the consequences of failing to achieve goals in accordance with the Federal Acquisition Regulation.
Questioned Cost0 Funds for Better Use0 Close DateDec 10, 2024
Recommendation4
Develop and implement guidance to help address heightened risks posed by the use of single-source awards, specifically the increased potential for award protests, underperformance by the sole implementer, and lack of competition, in pre-award risk assessments.
Questioned Cost0 Funds for Better Use0 Close DateFeb 27, 2023
Recommendation5
Develop and implement guidance to help evaluate proposed management information systems by verifying system capabilities, such as by requesting case studies.
Questioned Cost0 Funds for Better Use0 Close DateJan 09, 2024
Recommendation6
Conduct a review of the verification process used to determine the completeness and accuracy of the Global Health Supply Chain - Procurement and Supply Management technical evaluation committee's consideration of information about bidders' past performance to identify gaps that allowed errors to occur, and implement a plan to correct those gaps.
Questioned Cost0 Funds for Better Use0 Close DateMar 28, 2023
Recommendation7
Develop and implement guidance to help operating units develop timelines for preprocurement and procurement activities so that operating units understand the time requirements for steps in procurement process.
Questioned Cost0 Funds for Better Use0 Close DateDec 10, 2024
Recommendation8
Develop and implement a plan to assess the indicators used to measure the reliability and responsiveness of the supply chain for accurate representation of delivery dates, including reviewing the use of the early delivery reason code, the order promising tool, and any other tool that affects the measurement of this indicator.
Questioned Cost0 Funds for Better Use0 Close DateMar 25, 2021
Recommendation9
Work with Chemonics to conduct a review to determine the effectiveness and efficiency of regional distribution centers and implement a plan of action to correct any inefficiencies identified.
Questioned Cost0 Funds for Better Use0 Close DateSep 16, 2021
Office of Inspector General
U.S. AGENCY FOR INTERNATIONAL DEVELOPMENT
REPORT FRAUD, WASTE & ABUSE
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Chemonics International, Inc. to Pay $3.1 Million to Resolve Allegations of Fraudulent Billing Under Global Health Supply Chain Contract
Press Release
Dec 20, 2024
WASHINGTON – Chemonics International, Inc. (Chemonics), a private international development firm based in Washington, DC, has agreed to pay $3,119,582 to resolve allegations that it violated the False Claims Act by submitting fraudulent claims for payment to the U.S. Agency for International Development (USAID). Chemonics disclosed the fraudulent billing to the United States in 2020.
https://oig.usaid.gov/node/7359
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