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. Rep. Chris Smith first told Devex of his intention to hold a hearing and raise his concerns about the project in Sept. 2017. The date for this public inquiry, which saw testimony from U.S. Global AIDS Coordinator Debbie Birx and USAID Senior Deputy Administrator Irene Koek, has been repeatedly pushed back. Chemonics has been implementing the supply chain project since Jan. 2016. The Global Health Supply Chain — Procurement Supply Management project delivers lifesaving health commodities to more than 50 countries on behalf of the U.S. government’s largest global health initiatives, including the President’s Emergency Plan for AIDS Relief.