Usaid Cooperative Agreements

The 1977 Federal Grant and Cooperation Agreements Act (FGCAA) provides for two broad categories of support – grants and cooperation agreements – which differ in the degree of involvement of USAID AOR in the activity and the degree of authorized management of the award. Although there are some differences within each category, the essential characteristics of each major type of support instrument are similar. There are no deliverable, milestone-based cooperation agreements (i.e., simplified or similar to those of the FAA). Leader with Associate (LWA) awards may be cooperation agreements, where applicable. 4. Yes – the participation proposed by USAID is considered a SUBSTANTIAL PARTICIPATION and, therefore, the appropriate implementation tool is a cooperation agreement. (1 MB) Infographic: What exactly is a cooperation agreement? It is important to note that the Leader and Associate Awards are separate instruments. A commitment to the Leader Award is not transferable to the Associate Awards (nor transferable from the Leader Award Or other Associate Prizes) without the waiver and re-commitment of funds under USAID Policy. VLTs can be grants or cooperation agreements. Support is the U.S. government`s financial support to an organization – through a grant or cooperation agreement – to help carry out a project that benefits the community and advances the goals of the U.S. Foreign Aid Act. Agency policy defines substantial participation as USAID, which is substantially involved in managing a cooperation agreement to help the recipient achieve the objectives of the agreement.

USAID policy provides for four general areas of substantial participation that are permitted: It is important to understand that substantial participation does not allow USAID to manage or monitor performance under the Cooperation Agreement. The AO and AOR should closely consider the level of participation required as part of a support bonus, as USAID may be involved to some extent in the program; However, it cannot apply single procurement rules or administrative practices to support. Notice! The elements of substantial participation allowed for each cooperation agreement are described in the procurement document. The AO may delegate responsibility for the essential element(s) of participation in the AOR. What distinguishes cooperation agreements? In each appeal, USAID specifies the criteria it uses to make an award decision (including technical and cost/price factors) and specifies the relative importance of each factor. . If the WA determines that the appropriate instrument is support, the FGCAA requires the WA to decide whether it is considered that there would be significant participation between USAID and the recipient during the execution of the proposed activity. This determines the appropriate support instrument as follows: Acquisition is the purchase of goods and services – through a contract – for the use or benefit of the Agency. USAID is dedicated to protecting the integrity of our foreign aid efforts and taxpayers` money entrusted through rewards. For more information, see the Compliance section of our website.

As part of the review of the technical proposal, the typical evaluation criteria are as follows: USAID uses different types of tools to fund aid programs. Implementing partners (IPs) need to understand the characteristics of each individual instrument, as the type of instrument chosen can impact both allocation planning and management responsibility. As mentioned earlier, the ROAs recommend and the AO should select the appropriate implementation tool based on the FGCAA. The decision must be based primarily on the primary purpose of the relationship created by the specific transaction, as described in USAID Policy (ADS 304). In order for the WA to determine the appropriate instrument, it must determine the nature of the relationship between USAID and the recipient and the intended purpose of the award. Who decides what kind of help tool to use? To understand the challenges and resources available to them, USAID missions are developing a Comprehensive Development Cooperation Strategy (CDCS) with significant contributions from partner governments, as well as industry, civil society, and development partners. From cdcs, we design projects and activities to create an acquisition and support (A&A) plan. Calls describe the requirement or program and explain how USAID evaluates submissions. They can take various forms, such as. B such as a Request for Proposals, a Notice of Funding Opportunity (NOFO), an Annual Program Statement (APS) or an Agency General Announcement (BAA). USAID conducts market research to explore different ways to achieve our development goals and gather information on local capacity, small business participation, and the feasibility of our expected needs.

One way to do this is through a request for information (RFI). For more information, see ADS 302. All costs must be direct costs (no indirect costs are allowed). . 2. Does USAID expect its own active participation in certain programmatic elements of the activity during the performance? – No – A grant is the appropriate implementing instrument. The winner executes in accordance with the description of their program, which USAID includes in the award. USAID defines the expected results for various activities that can be funded through an A&A award. Organizations interested in working with us submit a proposal in response to a call that describes the program and explains how USAID will make its decision. If the WA determines that there will be no material involvement in USAID`s management of an aid program, it determines what type of grant is best suited to the recipient`s activity and skills. Note that the selection of the instrument can also be negotiated between AO and the receiver.

In order to streamline competitive procurement procedures, these issues should be clarified in the question and answer phase of a NOFO before the deadline for submission of applications. When an AO publishes a call for an LWA, noFO will indicate that the competition covers both the initial Leader Award and all subsequent associated prizes. NOFO will also set a cap on the total amount of funding for the Leader Prize, as well as the cap on all associated prizes. These amounts cannot be exceeded without justification to limit eligibility for USAID ADS 303. Once these steps are completed, USAID will award the award to the selected organization. In most cases, the organization is invited to a conference after the award ceremony to discuss the project and review the terms of the award. In addition, the Organization may contact the Contracts or Contracts Officer (COR/AOR) designated in the award for technical assistance throughout the implementation period. All questions regarding the arbitral award itself should be addressed to the client or the contractual representative. A grant is a legal instrument that is used when the primary purpose is to transfer something of value (i.e., money, goods or services) to a recipient to achieve a public support or stimulation objective approved by federal law. Grants are reasonable if significant USAID participation cannot be expected. In general, USAID does not favor one type of ancillary instrument over another.

The nature of the program, the nature of the relationship between USAID and the recipient, and the capacity of the recipient are the main determinants of the type of instrument. For example, if a local partner has little or no experience in managing USAID or other government programs and funds of foreign aid organizations, but has extensive experience in a particular program area and can easily predict program costs associated with separate benchmarks, a fixed-amount premium (AAF) would be the preferred instrument. Conventions may allow other types of supervision by bodies with a limited scope and which are suitable for supporting instruments by including specific conditions based on the results of a risk assessment. 1. UsaID AO has determined that a support premium is appropriate. The USAID Agreement Officer (AO) selects the type of support instrument before issuing a Funding Opportunity Notice (NOFO). USAID`s AOR typically provides information on the type of instrument and therefore needs to have a clear understanding of the procurement objectives as well as the ability and limitations of staff to monitor and manage the final allocation. To issue an FAA, the following conditions must be met: If the organization cannot reach an agreement with the officials mentioned above, contact our organization`s ombudsman. Developed by the USAID/India Regional Office of Financial Management and Regional Office of Acquisition and Assistance and the Acquisition and Assistance Innovation Lab in Central and South Asia to support local capacity building.

What factors are taken into account when deciding on the type of award? USAID will reimburse the recipient for their performance as part of the award. (3 MB) Advice from an implementing partner on the types of support instruments normally paid by letter of credit for US NGOs and progress for non-US citizen NGOs. An FAA is a grant agreement where USAID provides a certain level of support and payment is based on reaching milestones rather than the actual cost of the recipient. .