GHSC-PSM to Save Nearly $1.2 Million on Warehousing in Malawi

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The USAID Global Health Supply Chain Program-Procurement and Supply Management (GHSC-PSM) project has awarded a new subcontract that will save USAID an estimated $1.2 million annually on the storage of health commodities in Malawi.

Since 2011, USAID-funded family planning and malaria commodities in Malawi have been stored at a private warehouse managed by a company in Lilongwe/Kanengo. This warehousing subcontract was awarded by GHSC-PSM’s predecessor project and subsequently extended in order to avoid disruption during the transition to the GHSC-PSM project.

Earlier this year, however, GHSC-PSM conducted a competitive process to identify a new warehousing subcontractor and awarded a new subcontract to Bolloré Logistics Malawi in May. In addition to offering significant savings, the new subcontract includes the same levels of service in terms of stock management, security, and storage conditions. Accountability and transparency will also remain the same. The new subcontract will go into effect in September.