Evaluation of the central contraceptive procurement project (936-3018), Matrix International Logistics, Inc.

to provide worldwide freight forwarding and warehousing of contraceptive supplies for A.I.D.'s Office of Population. Overall, Matrix has been extremely effective and has shown continued improvement in warehouse management and delivery performance since the start of the contract. Matrix received high marks from Mission personnel and cooperating agencies for its performance and especially for its responsiveness to problems such as lost, damaged, or stalled shipments. Transit and transfer times for both air and surface transportation show that Matrix has, for the most part, moved shipments expeditiously between pickup points at supplier or warehouse locations and destination ports of entry; 97% of air, 97% of land, and 98% of sea shipments met transit time standards. Performance in actually delivering the commodities to the Missions' doors fell short of these figures, however, largely due to: (1) the undependability of suppliers in meeting production and shipment commitments; and (2) delays in clearing shipments through customs. Both of these factors are in many ways beyond the control of Matrix. Key concerns for this and similar contracts regard the need for: (1) better communications between suppliers, shippers, and Missions, through the Office of Population's NEWVERN freight tracking system; (2) incentives for suppliers to meet supply deadlines more dependably; and (3) facilitation of customs clearance, which will require high-level Mission involvement at the country level and A.I.D./Washington involvement at the intergovernmental level. In sum, the consolidation of contraceptive shipping and warehousing responsibilities into a single contract has led to improvements in management, quality of services to field programs, and overall transportation costs (savings of $1.1 million annually since the beginning of the contract). A similar contract design should be used for A.I.D. contraceptive transportation services in the future. However, it is suggested that contracts be awarded for 5 years, rather than annually.