ADS Chapter 303 Grants And Cooperative Agreements To Non Governmental Organizations 85

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303.1 OVERVIEW
303.2 PRIMARY RESPONSIBILITIES
303.3 POLICY DIRECTIVES AND REQUIRED PROCEDURES
303.4 MANDATORY REFERENCES
303.5 ADDITIONAL HELP
303.6 DEFINITIONS

ADS Chapter 303

Grants and Cooperative Agreements

to Non-Governmental Organizations

Partial Revision Date: 04/03/2017

Responsible Office: M/OAA/P

File Name: 303_040317

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ADS Chapter 303

Functional Series 300 – Acquisition and Assistance

ADS 303 – Grants and Cooperative Agreements to Non-Governmental

Organizations

POC for ADS 303: Michael Gushue, (202) 567-4678, mgushue@usaid.gov

Table of Contents

303.1 OVERVIEW .............................................................................. 5

303.2 PRIMARY RESPONSIBILITIES ............................................... 5

303.3 POLICY DIRECTIVES AND REQUIRED PROCEDURES ........ 9

303.3.1 Policy Directives ...................................................................................... 9

303.3.2 Required Procedures............................................................................... 9

303.3.3 Type of Assistance Instrument ............................................................... 9

303.3.4 Deviations ............................................................................................... 10

303.3.5 Public Notice and Advertising .............................................................. 12

303.3.5.1 Catalog of Federal Domestic Assistance ................................................. 13

303.3.5.2 Notice of Funding Opportunity ................................................................. 13

303.3.5.3 Solicitation Format ................................................................................... 14

303.3.5.4 Cancellation of Notice of Funding Opportunity ......................................... 19

303.3.5.5 Unsolicited Concept Papers and Applications ......................................... 20

303.3.6 Eligibility ................................................................................................. 20

303.3.6.1 Eligibility Requirements ............................................................................ 20

303.3.6.2 Merit Review Criteria................................................................................ 21

303.3.6.3 Reviewing Applications ............................................................................ 24

303.3.6.4 When Eligibility Can Be Restricted .......................................................... 26

303.3.6.5 Restrictions to Eligibility ........................................................................... 27

303.3.6.6 Late or Incomplete Submissions .............................................................. 38

303.3.7 The Award Decision............................................................................... 39

303.3.7.1 Notification ............................................................................................... 39

303.3.7.2 Request for Additional Information ........................................................... 39

303.3.8 Pre-Award Certifications, Assurances, and Other Statements of the

Recipient and Solicitation Standard Provisions ................................. 40

303.3.9 Pre-Award Risk Assessment ................................................................ 41

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303.3.9.1 Pre-Award Surveys .................................................................................. 45

303.3.9.2 Specific Conditions .................................................................................. 47

303.3.10 Cost Share .............................................................................................. 50

303.3.10.1 Cost Share Determination ........................................................................ 50

303.3.10.2 Cost Sharing in RFAs and APS ............................................................... 51

303.3.10.3 Meeting Cost Sharing Requirements ....................................................... 52

303.3.11 Substantial Involvement and Cooperative Agreements ..................... 52

303.3.12 Negotiation of the Award ...................................................................... 55

303.3.13 The Award Process and Elements of an Award .................................. 56

303.3.14 Duration of Assistance Awards ............................................................ 57

303.3.15 Designation of the Agreement Officer’s Representative (AOR) ........ 58

303.3.16 Congressional Award Notification System .......................................... 62

303.3.17 Distribution of Awards .......................................................................... 63

303.3.18 Award Administration ............................................................................ 63

303.3.19 Unauthorized Commitments and Expenditures Requiring Prior

Approvals ............................................................................................... 66

303.3.20 Controlling Language ............................................................................ 67

303.3.21 Subawards .............................................................................................. 68

303.3.22 The Role of the Agreement Officer in the Debt Collection Process .. 70

303.3.23 Disputes and Appeals ........................................................................... 71

303.3.23.1 Disputes ................................................................................................... 71

303.3.23.2 Appeals .................................................................................................... 71

303.3.24 Simplified Grants ................................................................................... 72

303.3.25 Fixed Amount Awards to Non-Governmental Organizations ............. 73

303.3.26 Leader with Associate Awards ............................................................. 76

303.3.27 Public-Private Partnerships .................................................................. 81

303.3.28 Participation of Faith-Based and Community Organizations ............ 82

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303.3.29 Suspension and Debarment ................................................................. 85

303.3.30 Limitation on Construction under Assistance .................................... 86

303.3.31 USAID Implementing Partner Notices (IPN) Portal for Assistance .... 86

303.3.32 Trafficking in Persons (TIP) .................................................................. 87

303.4 MANDATORY REFERENCES ............................................... 89

303.4.1 External Mandatory References ........................................................... 89

303.4.2 Internal Mandatory References ............................................................ 90

303.4.3 Mandatory Forms ................................................................................... 92

303.5 ADDITIONAL HELP ............................................................... 93

303.6 DEFINITIONS ......................................................................... 93

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ADS Chapter 303

ADS 303 – Grants and Cooperative Agreements to Non-Governmental

Organizations

303.1 OVERVIEW

Effective Date: 06/01/2006

This chapter describes the Agency’s internal guidance, policy directives, required

procedures, and standards for the award and administration of USAID grants and

cooperative agreements to:

 Institutions of higher education,

 Hospitals,

 Nonprofit non-governmental organizations, and

 Commercial organizations.

USAID provides assistance to U.S. or non-U.S organizations, individuals, nonprofits,

and for-profit entities. Authorizing legislation (including the Foreign Assistance Act of

1961, as amended), other statutes, Government-wide directives and regulations, and

Agency policies specify the eligibility requirements for individual assistance programs.

303.2 PRIMARY RESPONSIBILITIES

Effective Date: 07/22/2015

a. The Bureau for Management, Office of Acquisition and Assistance (M/OAA)

develops and interprets policy on behalf of USAID for the award and

administration of grants and cooperative agreements. M/OAA carries out this

responsibility in accordance with the requirements of 2 CFR 200 Uniform

Administrative Requirements, Cost Principles, and Audit Requirements for

Federal Awards and USAID’s implementing regulation 2 CFR 700 USAID

Uniform Administrative Requirements, Cost Principles, and Audit

Requirements for Federal Awards, and this ADS chapter.

b. The M/OAA Director is also the Assistance Executive and coordinates all

matters that OMB or USAID regulations govern or which may require OMB

approval. The M/OAA Director:

 Authorizes restricted eligibility, in accordance with 303.3.6.5;

 Makes the final decision on the choice of implementing instrument in the

event of a dispute between the requesting official and the Agreement Officer,

in accordance with ADS 304; and

c. The Agency Liaison

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 Reviews information for the Catalog of Federal Domestic Assistance (CFDA)

for completeness and accuracy and forwards the information to the Office of

Management and Budget (OMB) for entry into the CFDA by the General

Services Administration (GSA);

 Updates CFDA entries annually;

 Submits an annual crosswalk that references program transactions occurring

during the year, such as additions, deletions, consolidations of programs, and

changes to program titles;

 Assigns CFDA numbers; and

 Prepares the CFDA entry describing the Agency's general program

description.

NOTE: The Chief of the Strategic Planning and Performance Division of the

Bureau for Policy and Program Coordination (PPC/SPP/SPA) was serving as the

Agency Liaison to the CFDA (see 303.3.5.1). However, this office has been

superseded by the establishment of the Office of the Director of Foreign

Assistance. Details of the liaison function will be revised. For further information,

contact PPC and M/OAA.

d. The Agreement Officer (AO) has legal responsibility for the award. Therefore,

only the AO can take action on behalf of USAID to enter into, amend, or

terminate an award. The AO is authorized this responsibility either by a warrant

issued by the Director, M/OAA, or through a delegation by virtue of his or her

position provided by:

 The Mission Director or other principal officer of a USAID overseas mission

(see ADS 103),

 The Assistant Administrator for the Bureau for Democracy, Conflict, and

Humanitarian Assistance (AA/DCHA), or

 The directors of DCHA offices, as re-delegated by the AA/DCHA (see ADS

103.3.15).

e. Prior to award, the Activity Manager ensures that an anticipated award reflects

the project design and planning documentation prepared in accordance with ADS

201 and ADS 300 and supports the assistance objectives. The Activity Manager:

 Ensures adequate notice and time is provided to the AO to compete and

award an assistance instrument by using an annual A&A plan or by obtaining

the AO’s consent;

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 Justifies an exception to eligibility, in accordance with this chapter and as

directed by the AO, if eligibility is to be restricted;

 Provides the Agency Liaison with an annual update on the information in

Catalog of Federal Domestic Assistance (CFDA) entries for which the Activity

Manager is responsible (see 303.3.5.1);

 Complies with 22 CFR 216, Environmental Procedures, requirements

during the design process;

 Manages the merit review of applications on behalf of the AO;

 Carries out elements of the pre-award survey and provides a technical

analysis of specific costs when asked by the AO;

 Advises the AO whether an application is responsive to the published

announcement and otherwise complies with established USAID Development

Objectives;

 Determines the expected level of cost sharing, in accordance with specific

program requirements and 303.3.10;

 Processes all necessary request documentation for the AO to consider in

awarding a grant or cooperative agreement to a selected applicant. This

documentation includes advice on the programmatic aspects of the

application, including the applicant’s program description with clearly

established goals that are realistic, measurable, and represent the highest

objective that the recipient can be expected to achieve and for which the

recipient will be held accountable;

 Helps the AO determine the potential recipient’s level of technical and

managerial competence; and

 Performs other duties, as requested by the AO, to ensure prudent

management of assistance funds.

f. After award, the Agreement Officer’s Representative (AOR), as designated in

writing by the AO, provides programmatic and administrative oversight of the

assistance instrument. This authority is not re-delegable other than as specified

in the AO’s designation letter. The AOR ensures that USAID exercises prudent

management over the award and monitors the recipient’s progress in achieving

the objectives of the program description. The AOR:

 Maintains contact, including through site visits and liaison, with the recipient;

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 Reviews and analyzes reports and monitors reporting requirements (see ADS

540);

 Verifies timely performance;

 Ensures compliance with the terms and conditions of the award;

 Carries out all responsibilities in the schedule of the award as delegated by

the AO and as noted under the “Substantial Involvement” section of

Cooperative Agreements;

 Monitors the recipient's financial reports to ensure that the recipient makes

progress toward meeting the required cost sharing, when applicable;

 Notifies the AO promptly of any developments that could have a significant

impact on the recipient’s performance;

 Prepares internal documents to support amendments to the award;

 Assists the AO in the review of proposed Branding Strategies and Marking

Plans and monitors the execution of approved Marking Plans;

 Ensures all mitigative environmental measures and conditions in the award

are implemented throughout the life of the award and that timely amendments

are undertaken as needed with the relevant Bureau environmental officer

approval in writing (see ADS 204, Environmental Procedures);

 Monitors classified recipients' compliance with the security specifications

included in their grants and cooperative agreements, and notifies the AO and

the Office of Security of any problems or suspected noncompliance with those

requirements (see ADS 545, Information Systems Security, ADS 565,

Physical Security Programs (Domestic), and ADS 567, Classified

Contracts and Awards Under USAID’s National Industrial Security

Program);

 Evaluates the recipient’s program effectiveness at the end of the program,

and produces a final report on the award for the AO and the Activity Manager;

and

 Performs other duties, as requested or delegated by the AO, to ensure

prudent management of assistance funds.

g. The Office of the General Counsel (GC) or the cognizant Resident Legal

Officer (RLO) makes the final legal determinations on behalf of the Agency.

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USAID staff must refer all contacts from an applicant’s or a recipient’s lawyer to

GC or the RLO. Staff must also consult GC or the RLO on significant policy

matters.

h. Assistant Administrators approve termination of awards based on the decision

that continued assistance would not be in the national interest of the United

States.

i. The Assistant Administrator, Bureau for Management, or designee, makes

the final decision on any appeals brought under 2 CFR 700.15, or the Mandatory

Standard Provision entitled “Disputes and Appeals” when it involves non-U.S.

organizations.

303.3 POLICY DIRECTIVES AND REQUIRED PROCEDURES

303.3.1 Policy Directives

Effective Date: 12/26/2014

2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit

Requirements for Federal Awards, establishes the requirements that the federal

government agencies must follow when administering grants and cooperative

agreements to U.S. non-governmental organizations. 2 CFR 700 is the Agency’s

regulatory implementation and supplement to 2 CFR 200. 2 CFR 200 and 2 CFR 700 do

not directly apply to foreign organizations (non-U.S. non-governmental organizations).

However, USAID applies some of these regulations to non-U.S. non-governmental

organizations through this ADS chapter and ADS 303mab, Standard Provisions for

Non-U.S. Non-governmental Organizations.

303.3.2 Required Procedures

Effective Date: 12/26/2014

USAID executes all assistance awards in accordance with 2 CFR 200 and 2 CFR 700.

Additionally, Agency policies on specific topics can be found in other sections of the

Code of Federal Regulations (CFRs) and the ADS 300 Series. When it is necessary to

implement timely changes prior to a formal revision of Agency assistance regulations

and policy, the Director, M/OAA will issue Acquisition and Assistance Policy

Documents (AAPDs). M/OAA uses Procurement Executive Bulletins (PEBs) to

issue guidance, best practices, reminders, and answers to frequently asked questions.

303.3.3 Type of Assistance Instrument

Effective Date: 12/26/2014

Assistance (grants or cooperative agreements) is used when the principal purpose of

the relationship between USAID and the recipient is to transfer anything of value to the

recipient to carry out a public purpose of support or stimulation, as authorized by the

Foreign Assistance Act of 1961, as amended (FAA). The AO makes the final

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decision regarding whether an award will be an acquisition or assistance instrument.

For further guidance on the differences between assistance and acquisition (contracts),

see ADS 304, Selecting Between Acquisition and Assistance Implementing

Instruments.

During the Planning Phase, the Development Objective Team (DO Team) and the

Agreement Officer make a determination on the duration and type of assistance

instrument (see ADS 201, Program Cycle Operational Policy).

303.3.4 Deviations

Effective Date: 12/26/2014

When it is necessary to achieve program objectives under an award or when special

circumstances make it in the best interests of the U.S. Government, USAID may grant a

deviation from:

 2 CFR 200;

 2 CFR 700;

 The policy directives and required procedures of this chapter;

 ADS 303maa, Standard Provisions for U.S. Non-governmental

Organizations;

 ADS 303mab, Standard Provisions for Non-U.S. Non-governmental

Organizations; or

 ADS 303mat, Standard Provisions for Fixed Amount Awards to

Nongovernmental Organizations.

NOTE: This section does not apply to the requirements of 22 CFR 216, Environmental

Procedures.

a. Approving Officials

(1) U.S. organizations. For grants and cooperative agreements to U.S.

organizations, only the Director, M/OAA, may approve individual

deviations from both 2 CFR 200 and 2 CFR 700. Additionally, the Office

of Management and Budget (OMB) must also approve any class

deviations from 2 CFR 200 and 2 CFR 700.

(2) Non-U.S. organizations. For grants and cooperative agreements to non-

U.S. organizations, the Director, M/OAA or the Mission Director with

program responsibility may approve deviations.

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b. Procedure

(1) The AO or the Activity Manager may initiate a deviation request through

an action memorandum to the appropriate approving official noted in

303.3.4(a).

(2) The AO must clear the deviation request before it is submitted to the

approving authority.

(3) The AO or Activity Manager must consult with the Office of the General

Counsel (GC) or the Resident Legal Officer (RLO) on all deviations.

GC/A&A must clear the action memorandum before the AO or Activity

Manager submits it to the approving authority.

(4) Before submitting the action memorandum, the requestor also must obtain

written comments from M/OAA’s Policy Division regarding the information

provided to meet the requirements of paragraph c. of this section.

M/OAA/P will respond within 10 working days. If more time is needed,

M/OAA/P must alert the requestor and provide an estimate of when

comments will be provided. The AO must maintain a copy of the

comments submitted by M/OAA/P as part of the deviation request file.

(5) If the deviation request involves the cost principles or the applicant’s

Negotiated Indirect Cost Rate Agreement, the AO must also obtain written

comments from M/OAA’s Contract Audit and Support Division

(M/OAA/CAS), Overhead/Special Costs and Closeout Branch, before

submitting the request to the approving official. M/OAA/CAS has 10

working days in which to respond. If more time is needed, M/OAA/CAS

must alert the requestor and provide an estimate of when it will provide

comments. If M/OAA/CAS does not provide comments within 10 working

days or within the requested extension period, the requestor may treat the

non-response as concurrence.

(6) If the approving official does not approve the deviation request, the

approving official should provide a written explanation to the requestor

regarding why the request was not approved. If the requestor can revise

the request to address the approving official’s objections, the requestor

may do so and resubmit the request. The approving official’s denial of a

deviation request may not be appealed.

(7) The requestor must provide a copy of each approved deviation request to

M/OAA/P, and the AO must retain the approved deviation in the award file.

c. Content of a Deviation Request

Each deviation request must

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(1) List the name of the recipient and identify the grants or cooperative

agreements affected. Include the dollar value of each award;

(2) Identify the provision, policy, or procedure from which a deviation is

necessary;

(3) Provide a full description of the deviation and the circumstances in which it

will be used;

(4) Detail the reasons supporting the request, including any background

information that contributes to a fuller understanding of the sought

deviation;

(5) Describe the intended effect of the deviation; and

(6) State whether a previous deviation from the same requirement had been

requested and, if so, the circumstances of the request and whether the

approving official approved or disapproved the request.

(For an example, see ADS 303sac, Sample Action Memorandum for Deviation.)

303.3.5 Public Notice and Advertising

Effective Date: 12/26/2014

a. USAID has a responsibility to notify the public of its funding priorities in

assistance programs (2 CFR 200.202-203). The Agency generally fulfills this

responsibility by announcing assistance programs in the Catalog of Federal

Domestic Assistance (CFDA) and at Grants.Gov.

b. As Office of Management and Budget policy requires (see Office of Federal

Financial Management Policy Directive on Use of Grants.Gov), USAID must

synopsize and post all funding opportunities and application packages to the

Grants.Gov site except:

(1) Assistance programs that are only published through an Development

Objective CFDA entry;

NOTE: USAID, at present, does not publish assistance programs solely

through CFDA entries;

(2) Awards that USAID limits to non-U.S. organizations, and which will be for less

than $25,000; and

(3) Awards for which eligibility is restricted to a single source in accordance with

procedures in 303.3.6.5.

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ADS 303mae, USAID Policy Guidance on Posting Grant Opportunities and

Application Packages on Grants.Gov, provides specific instructions for posting

synopses and application packages to the Grants.Gov Web site.

303.3.5.1 Catalog of Federal Domestic Assistance

Effective Date: 06/01/2006

Pub. L. 95-220, 31 U.S.C. 6104 established the Catalog of Federal Domestic

Assistance (CFDA) as the database for all Federal programs available to U.S. non-

governmental organizations, individuals, educational institutions, and state and local

governments. An individual or organization can search this database, find assistance

programs, determine if an assistance program matches the individual or organization’s

requirements, and determine if the individual or organization is eligible for the

assistance program. The individual or organization may then contact the office that

administers the program and find out how to apply.

Use of the CFDA allows an individual or organization to find information in one location,

instead of having to search through many different Federal Agency Web sites. All

agencies of the U.S. Government, including USAID, must collect, coordinate, and

submit information on all current Federal domestic assistance programs.

A Federal domestic assistance program is any program that provides assistance to a

domestic profit or nonprofit corporation; institution or individual; a State or Territory; or,

any county, city, or other local government subdivision. This includes programs that

finance grants or cooperative agreements to U.S. recipients for activities abroad. It does

not include programs that finance grants or cooperative agreements to non-U.S.

recipients for activities abroad or for the acquisition or recruitment of personnel.

USAID satisfies the requirements of the Federal Program Information Act (Pub. L. 95-

220) by publishing a general entry about its programs in the CFDA. This information

must also be published in Grants.Gov and issued as Requests for Applications or

Annual Program Statements.

If the Development Objective Team wishes to submit an entry into the CFDA, it should

send the information through the cognizant Bureau program office to the Agency

Liaison.

303.3.5.2 Notice of Funding Opportunity

Effective Date: 07/22/2015

USAID primarily uses two types of Notices of Funding Opportunity (NOFO), a Request

for Applications (RFA) and an Annual Program Statement (APS).

a. An RFA is used when the intent is to provide assistance for an activity or

methodology that supports or is in keeping with USAID’s program objectives.

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2 CFR 200.203(b) recommends that AOs make all RFAs available for receipt of

applications for at least 60 calendar days. AOs should provide longer response

periods for sizeable activities or more detailed applications used to ensure high

quality applications. An AO should not make an RFA available for less than 30

days unless there are exigent circumstances supported by a written

determination by the AO (see 2 CFR 200.203(b)).

b. An APS is used when USAID intends to support a variety of creative approaches

towards developing methodologies to assess and implement development

objective activities.

When used, USAID will publish an APS at least once a year, either with an open-

ended response time or a closing date of at least six months after issuance.

303.3.5.3 Solicitation Format

Effective Date: 07/22/2015

When issuing a NOFO, either an RFA or an APS, the AO must follow the established

format in Appendix I to Part 200 – Full Text of Notice of Funding Opportunity. A

summary of the format is as follows:

a. Section I, Program Description, contains the full program description of the

funding opportunity. It may be as long as needed to adequately communicate to

potential applicants the areas in which funding may be provided. Specifically, the

Program Description:

(1) Must describe the operating unit’s funding priorities or the programmatic or

focus areas in which the operating unit intends to provide assistance.

(2) Must include a statement identifying the authorizing legislation (generally

the Foreign Affairs Act) and whether the award is subject to 2 CFR 700

and 2 CFR 200 – Uniform Administrative Requirements, Cost

Principles, and Audit Requirements for Federal Awards.

(3) May include any program history.

(4) May include indicators of successful projects (e.g., if the program

encourages collaborative efforts) and examples of projects previously

funded by the Agency.

b. Section II, Federal Award Information, provides sufficient information for a

potential applicant to decide whether to submit an application. This section must

include:

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(1) The estimated total amount of the program, the expected number of

awards, and the financial range of the individual awards;

(2) The anticipated start dates and performance periods for new awards; and

(3) Whether the award will be a grant or a cooperative agreement. If USAID

expects to award a cooperative agreement, describe the intended

substantial involvement by the Agency (see 303.3.11).

c. Section III, Eligibility Information, addresses the considerations and factors that

determine applicant or application eligibility for award. This section must:

(1) Identify the types of entities that are eligible to apply. Include a statement

to the effect that USAID encourages applications from potential new

partners. If there are no restrictions on eligibility, this section must

indicate that all potential applicants are eligible (see section 303.3.6 on

Eligibility).

(2) Describe the cost sharing element. State explicitly whether cost sharing is

required for the applicant to be eligible (see 303.3.10), cost sharing is

suggested (that is, voluntary) but not required, or cost sharing is not

required.

When cost sharing is suggested and will be a factor in determining who

will receive an award, the announcement must explicitly describe how cost

sharing will be considered as part of the review process. Do not use vague

statements such as “cost sharing is encouraged.” If applicable, the

announcement must clearly state any restrictions or special conditions

regarding the types of costs that are acceptable for cost sharing

(consistent with 2 CFR 200.306), the NOFO must explicitly state it. This

section must refer to Section IV, which states any pre-award requirements

for submission of documentation to verify commitments to meet cost-

sharing requirements. Note that a fixed amount award cannot be used

in a program that requires mandatory cost sharing (see 2 CFR

200.201(b)(2)).

(3) State any limit on the number of applications an applicant may submit

under the NOFO and make clear whether the limitation is on the

submitting organization, individual investigator/program director, or both.

(4) If applicable, include any other eligibility criteria, i.e., criteria that will make

an application or project ineligible for a Federal award. These criteria

must be clearly stated and must include a reference to the regulation or

policy that describes the restriction, as applicable (see 303.3.6.1(d) Multi-

tiered Review).

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d. Section IV, Application and Submission Information, must include:

(1) Point of Contact Information, including the name, title, street address, e-

mail, and phone number, so that an applicant may obtain from the POC

any materials needed for the application or otherwise communicate with

the POC regarding the application requirements.

(2) Content and Format of Application Submission, must identify the required

content of the application and forms or formats that an applicant must use.

In accordance with 5 CFR 1320, which implements the Paperwork

Reduction Act, USAID may require no more than the original and two

copies of any application. This section must include a statement directing

the applicant to submit the SF-424 series, which includes the:

 SF-424, Application for Federal Assistance;

 SF-424A, Budget Information – Non-construction

Programs; and

 SF-424B, Assurances – Non-construction Programs.

This section must also address information that successful applicants

must submit after notification of intent to make a Federal award but prior to

actual award.

(3) Dun and Bradstreet Universal Numbering System (DUNS) Number and

System for Award Management (SAM). This section must state clearly

that each applicant (unless the applicant is an individual or Federal

awarding agency that is excepted from those requirements under 2 CFR

25.110(b) or (c), or has an exception approved by the Federal awarding

agency under 2 CFR 25.110(d)) is required to:

(i) Be registered in SAM before submitting its application;

(ii) Provide a valid DUNS number in its application; and

(iii) Continue to maintain an active SAM registration with current

information at all times during which it has an active Federal

award or an application or plan under consideration by a

Federal awarding agency.

It also must state that the Federal awarding agency may not make a

Federal award to an applicant until the applicant has complied with all

applicable DUNS and SAM requirements and, if an applicant has not fully

complied with the requirements by the time the Federal awarding agency

is ready to make a Federal award, the Federal awarding agency may

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determine that the applicant is not qualified to receive a Federal award

and use that determination as a basis for making a Federal award to

another applicant.

(4) Submission Dates and Times for application submission must be

identified. This section must also detail how USAID makes the

determination that an application has been received in time, and

consequences of late submission (see 303.3.6.6).

(5) Funding Restrictions. Notices must include information on funding

restrictions to allow an applicant to develop an application and budget

consistent with program requirements. Examples are whether

construction is an allowable activity (see 303.3.30), if there are any

limitations on direct costs such as foreign travel or equipment purchases,

and if there are any limits on indirect costs). This section must include a

statement regarding whether the award will or will not allow the

reimbursement of pre-award costs.

(6) The required certifications, assurances, and solicitation provisions found in

303.3.8.

(7) Other submission requirements. This might include the format of

submission (paper or electronic) and where the applicant must submit the

application. If USAID authorizes electronic submission, advise what the

applicant should do in the event of technical difficulties and provide a point

of contact.

e. Section V, Application Review Information, must include:

(1) The selection criteria and any sub-criteria that USAID will use when

reviewing applications, including an indication of their relative importance

(see 303.3.6.3). The selection criteria are distinct from eligibility criteria

that are addressed prior to acceptance of an application. If the selection

criteria vary in importance, the NOFO must specify the relative

percentages, weights, or other means used to distinguish among them.

(2) If an applicant’s proposed cost sharing will be considered in the review

process (as opposed to being an eligibility criterion described in Section

III.2 (see 303.3.5.2.c(2))), a clear statement of how USAID evaluates cost

sharing as part of the review process (see 303.3.10) must be included in

the NOFO.

(3) Review and Selection Process. The NOFO may indicate who reviews the

applications (e.g., USAID personnel, representatives from the local

American embassy, host governments, or private sector individuals) and

note that the AO makes the final selection.

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(4) Anticipated Announcement and Federal Award Dates. This section is

optional and intended to provide applicants information for planning

purposes.

f. Section VI, Federal Award and Administration Information, must include:

(1) Federal Award Notices. This section must address what a successful

applicant can expect to receive following selection. State that a notice of

award signed by the AO is the authorizing document, whether USAID will

provide it electronically, and to whom USAID will provide it. USAID may

include a description of the form, the content of notifications to

unsuccessful applicants, and whether requests for additional information

will be considered from unsuccessful applicants.

(2) A statement identifying how the award will be administered, including the

applicable standard provision and any approved deviations from the

Standard Provisions. For U.S. organizations, the solicitation must state

that 2 CFR 700, 2 CFR 200, and ADS 303maa, Standard Provisions for

U.S. Non-governmental Organizations are applicable. For non-U.S.

organizations, the solicitation must state that ADS 303mab, Standard

Provisions for Non-U.S. Non-governmental Organizations will apply.

USAID prefers that, instead of attaching complete copies of 2 CFR 200

and 2 CFR 700 to the NOFO, the NOFO direct applicants to the source

(see 303.4 and 303.5).

(3) Reporting. This section must include general information about the type

(e.g., financial or performance), frequency, and means of submission of

award reporting requirements. The types and frequency of financial and

programmatic reports must be strictly limited to those detailed in 2 CFR

200 (For output or unit cost data the AO must refer to 2 CFR 200.328).

Imposing the same reporting requirement on ten or more recipients has

Paperwork Reduction Act, (5 CFR 1320), implications. When necessary,

the AO must contact General Counsel or the cognizant Resident Legal

Officer for guidance. Guidance on specific financial and programmatic

reporting requirements that have met the requirements of the Paperwork

Reduction Act and received OMB approval are found in Procurement

Executive Bulletins.

Additionally, the AO must advise the DO Team to use ADS 540 for

detailed guidance on the submission of copies of reports and other

information to USAID’s Development Experience Clearinghouse (DEC),

when drafting the reporting requirements.

(4) If program income is anticipated to be generated under the award, the AO

must consider how that income will be treated under the award (see 2

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CFR 200.307 or, for non-U.S. organizations, see the provision “Program

Income”).

(5) If the Administrator has provided a written determination for use of an

additional or substitute logo or seal and tagline representing a presidential

initiative or other high level interagency federal initiative, identify the

alternate branding and marking standards to be used in the award (see 2

CFR 700.16 or, for non-U.S. organizations, see the provision entitled

“Marking and Public Communications Under USAID-Funded Assistance”).

(6) A statement detailing how the Agency will ensure environmental

soundness and compliance in design and implementation when required

by the 22 CFR 216 determination.

g. Section VII, Federal Awarding Agency Contacts, must include points of contact

(POC) for questions while the funding opportunity is open. In addition to the

name and address of the POC, USAID may establish a generic e-mail address

for inquiries.

h. Section VIII, Other Information, must include:

(1) A statement that USAID reserves the right to fund any or none of the

applications submitted, and

(2) Any other relevant information such as related programs or other

upcoming or ongoing funding opportunities.

303.3.5.4 Cancellation of Notice of Funding Opportunity

Effective Date: 07/22/2015

The cancellation of a Notice of Funding Opportunity (NOFO) costs the U.S. Government

and applicants’ time, effort, and money. USAID should cancel NOFOs only when

cancellation is in the public interest. For example:

(1) When the specific programmatic or focus areas are no longer within the

Agency’s mission or objectives.

(2) When amendments to the NOFO would be of such magnitude that a new

NOFO is desirable.

If USAID cancels a NOFO, USAID will return any applications it has received unopened

and will issue a notice of cancellation, either posted electronically as a general notice or

sent to all prospective applicants, or both. USAID staff must purge any electronic

applications for a cancelled NOFO from primary and backup data storage systems.

The notice of cancellation must:

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(1) Identify the solicitation number and provide the title or the subject matter,

(2) Briefly explain the reason why USAID cancelled the NOFO, and

(3) Assure prospective applicants that they will be given an opportunity to

apply for any subsequent or future NOFOs for the program, if appropriate.

The AO must document the:

(1) Circumstances and rationale for the cancellation;

(2) Applications received, returned, and purged; and

(3) Cancellation notice and NOFO issuance dates.

303.3.5.5 Unsolicited Concept Papers and Applications

Effective Date: 06/01/2006

The Guide to USAID’s Assistance Application Process and to Submitting

Unsolicited Assistance Applications provides guidance for submitting unsolicited

concept papers and applications. USAID should encourage the general public to review

it.

303.3.6 Eligibility

Effective Date: 12/26/2014

In accordance with the Federal Grant and Cooperative Agreement Act, USAID

encourages competition in the award of grants and cooperative agreements to identify

and fund the programs that best achieve Agency objectives.

The Agreement Officer (AO) guarantees the integrity of the competitive process by

ensuring overall fairness and consideration of all eligible applications. The AO also has

the ultimate authority to make award decisions for grants and cooperative agreements

on behalf of USAID.

The AO must not limit eligibility when awarding grants and cooperative agreements,

unless USAID authorizes a restriction on eligibility in accordance with 303.3.6.4. 2 CFR

200 requires that the Agency publish an announcement seeking applications from all

eligible and qualified entities (see 303.3.5).

303.3.6.1 Eligibility Requirements

Effective Date: 12/26/2014

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The AO verifies that a Request for Application (RFA) or Annual Program Statement

(APS) correctly identifies applicant eligibility requirements and essential program

qualifications in accordance with the following standards:

a. Authorizing legislation and governing program requirements specify eligibility

requirements for individual grant programs. Generally, and in compliance with

the Foreign Assistance Act of 1961, as amended, USAID may provide

assistance to any U.S. or non-U.S. organization, individual, non-profit, or for-

profit entity. When specific program requirements restrict eligibility (for example,

Title XII Collaborative Research Support Programs), USAID must identify the

restriction in the Catalog of Federal Domestic Assistance, RFA, APS, or other

appropriate notice.

b. To be eligible for assistance under the private voluntary organization (PVO) grant

program, both U.S. and international PVOs must be registered with USAID as

required by 22 CFR 203. The registration requirement does not apply to local

PVOs.

c. Merit Review Criteria. The DO Team must propose the merit review criteria for

selecting an applicant. However, if the AO determines that the criteria is so

restrictive that it severely limits the pool of potential applicants, the AO may

request that the Activity Manager change the criteria to broaden the pool of

applicants.

d. Multi-tiered Review. The DO Team, with the approval of the AO, may establish

a two or more tiered solicitation and review system. The DO Team may request

potential applicants to submit an executive summary or concept paper. The DO

Team may also request corresponding budget information at their discretion.

After reviewing these submissions, the DO Team selects the best submissions

and conducts a second level solicitation and review with the selected applicants

and uses more specific merit review criteria. The DO Team may conduct

additional levels of solicitation and review only if the second level does not

adequately identify applicants for the activities to be funded. Section III or

Section V of the NOFO must explain the intended multi-tiered review/eligibility

process so that potential applicants know what to expect at each phase of the

review process.

303.3.6.2 Merit Review Criteria

Effective Date: 12/26/2014

a. The DO Team must develop the merit review criteria. The criteria must include

the programmatic factors or priorities that affect eligibility for selection. The

number of criteria should be limited to three or four factors. The review criteria in

an announcement must provide as much information as practical to allow

potential applicants to judge whether it is in their best interest to incur costs to

apply for the award. The criteria must address the importance of the

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programmatic and administrative elements, but must not be unduly restrictive. It

is not necessary to quantify the relative weight of the criteria, but the

announcement must identify the relative importance of the criteria. The Activity

Manager must obtain the AO’s approval of the criteria before the AO publishes

the Request for Applications (RFA) or Annual Program Statement (APS).

b. No Requirement for Prior USAID Experience. RFA and APS documents for

the award of USAID assistance instruments must not require prior USAID

experience.

c. Gender issues. USAID must address gender issues in all USAID-funded

activities (see ADS 205). In RFAs (including those for Leader with Associate

Awards) and APSs, the Agreement Officer must ensure that the RFA or APS:

 Integrates gender issues into the solicitation (unless a rationale was

provided by the Activity Manager for not addressing gender in the project

or activity) in accordance with ADS 205. When USAID directs applicants

to incorporate gender issues into their applications, the RFA or APS must

state the requirements in the different performance components, e.g.,

Program Description, key personnel qualifications, if applicable, and

monitoring and evaluation requirements.

 Integrates gender issues into the programmatic selection criteria (e.g.,

technical understanding and approach, monitoring and evaluation,

personnel, etc.) that correspond to the performance requirements stated

above, unless an approved rationale for not incorporating gender issues

has been included in the RFA or APS.

If the program/project office provides the Agreement Officer with a procurement

request for a program that does not include the requirements in ADS 205 for

either integrating gender issues in the Program Description or the rationale for

why gender is not an issue for the particular assistance program it intends to

fund, then the Agreement Officer must notify the program/project office that no

further action will be taken on the request until it meets one of these

requirements.

For technical assistance and additional guidance, consult the USAID

Mission/Office or Bureau gender specialist or the Office of Gender Equality and

Women’s Empowerment (GENDEV) in the Bureau for Economic Growth,

Education, and Environment (E3).

d. Volunteers for Prosperity. Executive Order 13317 requires that an applicant’s

use of highly-skilled U.S. volunteers be a review factor in the selection of

applications for assistance activities to be implemented abroad under the

following initiatives:

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 Emergency Plan for AIDS Relief,

 Digital Freedom Initiative,

 Water for the Poor Initiative,

 Trade for African Development and Enterprise Initiative,

 Middle East Partnership Initiative, and

 Other Presidential initiatives as identified in the future.

e. Environmental Concerns. The Activity Manager must ensure that the

requirements in 22 CFR 216 for an environmental impact assessment have been

met, approved in writing by the relevant Bureau environmental officer, and are

incorporated into the RFA, APS and award as necessary. When USAID directs

applicants to address environmental concerns in an activity, the RFA or APS

must state the requirement. ADS 204 provides detailed guidance on

environmental concerns, and ADS 201 provides guidance on incorporating ADS

204 into the planning, achieving, and learning processes.

f. Branding and Marking. It is a Federal statutory and regulatory requirement

(see Section 641, Foreign Assistance Act of 1961, as amended, and 2 CFR

700.16) that all overseas programs, projects, activities, public communications,

and commodities that USAID partially or fully funds under an assistance award or

sub-award must be appropriately marked with the USAID identity. Under 2 CFR

700.16, USAID requires the submission of a Branding Strategy and a Marking

Plan by the “apparently successful applicant.” The apparently successful

applicant’s proposed Marking Plan may include a request for approval of one or

more exceptions to the marking requirements in 2 CFR 700.16. The AO reviews

and approves the apparently successful applicant’s Branding Strategy and

Marking Plan (including any requests for exceptions), consistent with the

provisions “Branding Strategy,” “Marking Plan,” contained in the Certifications,

Assurances, Other Statement of the Recipient and Solicitation Standard

Provisions, and “Marking and Public Communications Under USAID-funded

Assistance” contained in ADS 303maa, Standard Provisions for U.S.

Nongovernmental Recipients and ADS 303mab, Standard Provisions for

Non-U.S. Nongovernmental Organizations, 2 CFR 700.16, and ADS 320,

Branding and Marking.

Note that in contrast to “exceptions” to marking requirements, waivers to these

requirements based on circumstances in the host country must be approved by

the cognizant Mission Director or other USAID principal officer [see 2 CFR

700.16(5)]. Any questions about the applicability of either the Standard

Provisions or 2 CFR 700.16 may be directed to General Counsel/Acquisition &

Assistance (GC/A&A), or USAID’s Senior Advisor on Brand Management.

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303.3.6.3 Reviewing Applications

Effective Date: 12/26/2014

a. At least two individuals (three or more is preferable) must be appointed to serve

on each Selection Committee (SC) to review applications. The SC must review

the applications using the review criteria stated in the Notice of Funding

Opportunity (NOFO). The SC must keep selection information and applicant

proprietary data confidential.

b. Committee members must possess the requisite technical knowledge or

expertise to review the programmatic merits of the applications. The Agency

may make exceptions with the approval of the AO.

c. When necessary, other Federal agencies and non-governmental reviewers may

participate on the SC. USAID staff (direct-hire and Personal Services Contract

(PSC) employees) must comprise a majority of the members on the SC.

d. The AO must take steps to ensure that members of the SC, both USAID staff and

outside reviewers, do not have conflicts of interest with the organizations whose

applications are being reviewed. A conflict of interest includes situations when:

 The member of the SC works for or has any other financial interest (including

being an unpaid member of a Board of Directors) in the organization that

submits an application for the committee’s review,

 The member’s spouse/partner or minor child works for or has any other

financial interest (including being an unpaid member of a Board of Directors)

in the organization that submits an application for the committee’s review, and

 An organization or entity in which an SC member serves as an officer,

director, trustee, general partner, or employee, has a financial interest in an

application under the committee’s review. This includes situations where the

SC member is negotiating for one of the positions listed here and is serving

as an unpaid member of the organization or entity’s Board of Directors.

 An employee of an external organization (e.g., technical advisors in AIDS,

child survival, infectious diseases, population, basic education) participates in

the review of a potential competitor’s application, which allows the SC access

to financial or other data that may be competitively useful to the reviewer’s

organization.

The DO Team must make all efforts to identify potential conflicts early in the review and

selection process. Because resolution of conflicts of interest is fact-driven and case-

specific, the DO Team must coordinate with the AO and the cognizant General Counsel

or Resident Legal Officer on the issues.

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e. When periodic reviews are specified, the Activity Manager must collect the

applications as they are received until the Agency can review a reasonable

number in accordance with the provisions of the announcement. If the DO Team

established a specific timeframe for the review of applications in the NOFO, for

example, quarterly reviews, and only a small number of applications are received

during that time, the DO Team may consider the applications received to be a

reasonable number. The SC may also include applications it received in

response to earlier notices in a periodic review.

f. For the Office of U.S. Foreign Disaster Assistance (OFDA) programs, the OFDA

director may authorize selection of a sole application received, if the director

determines that it is not advisable to wait for more applications. The Activity

Manager must provide a copy of such an authorization to the AO.

g. When reviewing applications against a criterion related to gender issues, the

Activity Manager must coordinate with the Bureau for Economic Growth,

Education, and Environment, Office of Gender Equality and Women’s

Empowerment (E3/GENDEV).

h. If an unsolicited application reasonably fits an existing program, the DO Team

may include the application in a relevant review and selection under an RFA or

APS. If it does not, a justification to restrict eligibility under 303.3.6.5 must be

approved before the AO can issue an award to the applicant.

i. The same SC members should review all applications for each specific award. If

this is not possible or if there are established procedures for review by separate

SCs, the Activity Manager must document the reason and the procedure and

submit it to the AO for the agreement files.

j. The AO must provide the SC with a written review plan that specifies the criteria

and methodology for reviewing the applications consistent with the information

published in the RFA or APS.

k. The SC must prepare a written selection memorandum of each application as

compared to the established review criteria.

l. Both the AO and the SC must use the applicable mandatory templates discussed

in ADS 300, Agency Acquisition and Assistance Planning when preparing for

reviewing applications and documenting the findings. These templates can be

found internally at: https://pages.usaid.gov/M/OAA/assistance-resources.

m. The SC’s narrative in the selection memorandum must detail each application’s

strengths and weaknesses relative to the review criteria. If the RFA or APS does

not indicate the relative importance of the review criteria, then all criteria are

equally weighted. If the RFA or APS assigned numerical values to the criteria,

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then the report must include a discussion of the numerical scoring, in addition to

the narrative identifying strengths and weaknesses.

n. The SC must also include a discussion of its review procedure in their review

documentation.

o. Upon completion of the SC’s review, the Activity Manager then must forward the

selection memo to the AO, who must place a copy in the award file.

p. AOs must ensure that the solicitation, selection, award, and administration of

USAID grants and cooperative agreements follow all the requirements and

guidance of 22 CFR 205, Participation By Religious Organizations In USAID

Programs (see 303.3.28).

303.3.6.4 When Eligibility Can Be Restricted

Effective Date: 12/26/2014

In the context of this chapter, unrestricted eligibility refers to instances in which USAID

posts an assistance solicitation, typically via a Request for Applications (RFA) or an

Annual Program Statement (APS), with no limitations on the eligibility for applicants.

Restricted eligibility, as described in this chapter, refers to any assistance actions that

are restricted to a particular type of organization or other limitation, most typically for

sole source awards (including follow-on awards), extensions, limited to local entities or

limited for efficiency.

Under certain circumstances, eligibility may be restricted as indicated below in a., b.,

and c. of this paragraph. These situations are different from those in which restricted

eligibility is permitted, as discussed in 303.3.6.5 below. The required documentation for

an assistance action varies depending on whether unrestricted eligibility is required and

whether there is an applicable exception that permits restricted eligibility.

Eligibility requirements do not apply and, therefore, no exception to restrict eligibility or

Justification for Restricting Eligibility (JRE) under 303.3.6.5 is needed for an assistance

action otherwise covered by this chapter for:

a. The issuance of associate awards, or amendments to associate awards made

within the terms and conditions of a previously solicited Leader with Associate

Award.

b. Awards, extensions, or amendments using non-appropriated funds (including, but

not limited to, monies or in-kind contributions from bilateral and multilateral

development partners, host country governments, foundations and other private

sector entities), and

c. Extensions to existing agreements under 2 CFR 200.308(d)(2).

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To determine whether eligibility may be restricted for a particular action, Operating Units

and AOs are encouraged to consult with the Deputy Director (DD), for M/OAA’s

Accounting, Compliance, Transparency and Systems Support Division (M/OAA/ACTS).

303.3.6.5 Restrictions to Eligibility

Effective Date: 07/22/2015

Eligibility may be restricted by an AO only when an exception to restrict eligibility applies

and is documented in accordance with this section.

a. Justifications to Restrict Eligibility (JRE)

The Activity Manager must prepare a justification for use of an exception to restrict

eligibility under this section 303.3.6.5 using the Justification to Restrict Eligibility

(JRE) Template and submit it for approval to the AO, unless otherwise specified below.

When an official other than the AO is required to approve a justification as set forth

below, the Activity Manager must add the AO as a clearing official. Prior to submitting a

justification to the JRE@usaid.gov mailbox, the Activity Manager must obtain all

required clearances as specified below for each type of JRE. To obtain DD

M/OAA/ACTS AE, Assistant Administrator of the Bureau for Management (AA/M), or

Administrator clearance or approval, the Activity Manager must submit the justification

to the JRE@usaid.gov mailbox.

Each justification must contain sufficient facts and rationale to justify the use of the

specific exception cited. Requirements for the content of justifications and applicable

clearances and approval authorities are determined by a combination of the following:

 The dollar threshold of the new award or amount of increase to an existing

award (see paragraph 303.3.6.5a(1) below),

 The type of exception used (see paragraph 303.3.6.5a(2) below), and

 Whether the action is a follow on or extension (see paragraph 303.3.6.5a(3)

below).

Exceptions to restrict eligibility must not be justified on the basis of:

 Mobilization costs,

 Demobilization costs,

 Continuing relationship (except when sections 303.3.6.5a.(2)(a) or (h) apply),

 Lack of planning, or

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 Concerns about amount of funds available, such as expiring funds.

(1) Dollar thresholds. Based on the dollar thresholds below, the following

clearances and approvals are required for JREs. Additional clearances or

alternate approvals may be required based on the requirements in

paragraphs a(2) and a(3) of this section 303.3.6.5.

(a) Restricted eligibility actions valued under $5 million. Unless

otherwise provided in paragraphs a.(2)(a)-(i), the Activity Manager

must submit a justification to the AO for all exceptions to restrict

eligibility for which a JRE is required under this section 303.3.6.5

for new awards or extensions under $5 million.

(b) Restricted eligibility actions valued at $5 million or more but

less than $10 million. For all exceptions for which a JRE is

required under 303.3.6.5 for new awards at $5 million or more but

less than $10 million, the cognizant Resident Legal Officer (RLO) or

General Counsel (GC) Section for Acquisition and Assistance

(GC/A&A) attorney must clear the JRE before the Activity Manager

submits it to the AO, or other clearing or approving official as

required in paragraphs a(2)(a)-(i). In the case of follow-ons or

extensions for $5 million or more ($20 million for Critical

Priority Countries (CPCs)), in addition to the requirements of this

paragraph, the requirements at a(3) below also apply.

For all exceptions to restrict eligibility for which a JRE is required

under this section 303.3.6.5 for new awards valued at $10 million

and above, the following individuals must clear the justification

before the approving official may approve it:

 Cognizant RLO or GC/A&A attorney,

 Cognizant Mission Director (MD) or Assistant Administrator

(AA), and

 Deputy Director M/OAA/ACTS.

These individuals may not delegate this clearance authority;

however, individuals serving in those positions in an "acting"

capacity also have the authority to clear the justification. For

extensions, in addition to the requirements in this paragraph, the

requirements of a.(3) below also apply.

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(2) Exceptions to restrict eligibility and requirements for authorizing

their use

USAID permits restricted eligibility under the following exceptions when a

JRE is prepared in accordance with the requirements specified for the

applicable exception and those in paragraphs a.(1) and, if applicable,

a.(3). If the action is an extension or follow-on award of $5 million or more

($20 million for CPCs) the JRE must be approved by the Administrator

under 303.3.6.5a.3.

(a) Exclusive or predominant capability

USAID may restrict eligibility, including sole-source, awards when it

considers a recipient to have exclusive or predominant capability

based on one of the following criteria:

 Proprietary resources,

 Specialized facilities or programmatic expertise,

 An existing and unique relationship with the cooperating

country or beneficiaries, or

 Participation in a Global Development Alliance, USAID‘s

business model promoting public-private alliances as a

central element of the Agency‘s strategic assessment,

planning, and programming efforts.

This exception may not be used to continue an on-going

relationship when the applicant developed the exclusive or

predominant capability during performance of any USAID award.

When this exception is used, the Activity Manager must describe in

detail the uniqueness of the proposed recipient and how it applies

to the activity to be supported. The JRE must also describe what

other options USAID explored.

(b) Small grants

USAID may restrict eligibility, including sole-source, when the

awards are at or below the simplified acquisition threshold and

have a term of no more than one year.

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USAID may restrict eligibility to a selected group of applicants when

it is necessary for sake of efficiency.

The DD M/OAA/ACTS must clear and the AE must approve JREs

citing this exception. The Activity Manager must describe in detail

what other options USAID explored, including other exceptions and

the periodic review alternative discussed at section 303.3.6.3e, and

why these alternatives were determined to be unacceptable.

(d) New entrants

For grants or cooperative agreements valued at less than $5

million, USAID may restrict eligibility to organizations that have

received USAID direct assistance as a primary recipient of less

than $1,500,000 during the past three years in order to expand the

number and sustainability of development partners.

(e) Congressionally mandated programs

USAID may restrict eligibility to a single source when legislation

includes a congressional earmark specifying that USAID make an

award to a particular organization.

In the absence of legislation that specifies a particular awardee,

USAID may use this exception only when Congressional intent for

USAID to make an award to a particular recipient is demonstrated

by specific language in either:

 Both House and Senate Committee Reports, or

 A Congressional Conference Report.

In these cases, both the cognizant attorney (either the Resident

Legal Officer (RLO) or the appropriate GC/W backstop attorney)

and the Assistant Administrator (AA) for the Bureau for Legislative

and Public Affairs (LPA) must confirm their agreement that

Congress intended for USAID to make an award to a particular

recipient before the Activity Manager submits the justification for

approval.

The Activity Manager must attach to the JRE a copy of the statute

specifying the awardee, as well as any information supporting the

planned activity as requested by the AO. In the absence of

legislation specifying the awardee, the Activity Manager must

provide cognizant GC/RLO and AA/LPA confirmation of

Congressional intent with the justification.

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(f) Critical objectives of the foreign assistance program

USAID may restrict eligibility when it is critical to the objectives of

the foreign assistance program. USAID may use this exception

only when no other exception applies.

This exception is typically used for specific blanket justifications for

a class of awards and for a particular purpose or period of time, for

example, the Administrator-approved Expedited Procedures

Package (EPP) for HIV/AIDS (see section 303.5).

 Individual justifications for a single restricted eligibility

action. The cognizant Assistant Administrator, or Office

Director who reports directly to the Administrator, approves

JREs citing this exception. The cognizant RLO or GC/A&A as

well as the DD M/OAA/ACTS must clear the justification,

regardless of dollar value. The Activity Manager must explain

the circumstances that require using the exception, discuss

what other options USAID explored, and may not rely on any of

the other exceptions.

 Blanket justifications for a class of awards and for a

particular purpose or period of time. The cognizant Assistant

Administrator, or Office Director who reports directly to the

Administrator, may approve blanket JREs citing this exception.

The cognizant RLO or GC/A&A attorney and the DD

M/OAA/ACTS must clear the justification.

Blanket JREs approved at levels below the Administrator are

subject to the requirements in paragraph a(3) of 303.3.6.5;

blanket JREs approved by the Administrator (under EPPs) are

not subject to the requirements of paragraph a(3) of this section

303.3.6.5.

 Transactions using the authority of blanket justifications.

In order to use the authority of a blanket JRE, the Activity

Manager must prepare written documentation supporting use of

the blanket JRE in accordance with any applicable policy and

procedures specific to that blanket JRE (generally, such policy

and procedures are issued in an AAPD or PEB). In the absence

of such guidance, the Activity Manager must provide the

memorandum to the AO for incorporation into the award file.

Transactions using the authority of blanket JREs that were

approved at levels below the Administrator are subject to the

requirements in paragraph a(3) of this section 303.3.6.5.

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(g) Unsolicited applications

Unsolicited applications are those submitted to USAID for an award

by an applicant solely on their initiative, without prior formal or

informal solicitation by USAID.

USAID may make an award based on an unsolicited application

when the application:

 Clearly demonstrates a unique, innovative, or proprietary

program;

 Represents an appropriate use of USAID funds to support or

stimulate a public purpose; and

 Fits within an existing Development Objective.

When the terms of an unsolicited application fit within the scope of

a published and open Annual Program Statement (APS), the

application may be considered under the APS. The unsolicited

application is then considered to have been solicited under the APS

and no justification to restrict eligibility is required. If there is no

open APS, then the Activity Manager must prepare a justification to

restrict eligibility.

To use this exception to restrict eligibility, the Activity Manager must

first certify that USAID did not solicit the application and that it was

submitted by the applicant solely on the applicant’s own initiative.

This exception may not be used for non-competitive extensions to

existing awards. A recipient‘s request to extend an ongoing

relationship is not an unsolicited application. One of the other

exceptions in this section 303.3.6.5 must apply for the recipient’s

request to be granted.

The JRE must address how the following additional issues warrant

acceptance of the application:

 In what way the application is unique, innovative, or

proprietary;

 How funding the application is an appropriate use of USAID

funds to support or stimulate a public purpose; and

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 Describe how it fits within a Development Objective (DO).

See Guide to USAID’s Assistance Application Process and to

Submitting Unsolicited Assistance Applications for further

information.

(h) Follow-on awards and extensions

A follow-on award is a new award to an entity to perform activities

that are the same as or substantially similar to those included in a

recently expired previous agreement with the same entity. An

extension is an amendment to increase the total estimated amount

of an existing award, usually to provide additional activities within

the program description, to extend the period of the award, or both.

Also included in the definition of “follow-on” as used in this Chapter

are awards or extensions that include new activities that are clearly

logical expansions of or derived from activities previously

performed by the same recipient.

USAID may restrict eligibility for follow-on grants or cooperative

agreements or extensions to the existing awardee. When the

follow-on awards or extensions are limited to no more than an

increase in value of the amount of the original award of less than

$5 million (an increase of less than $20 million for Critical Priority

Countries (CPCs)), the requirements of 303.3.6.5a(3) do not apply.

Proposed follow-on awards and extensions that increase the total

estimated amount of the original award by $5 million or more (an

increase of or $20 million or more for CPCs) must be approved by

the Administrator following the requirements in 303.3.6.5a(3). For

extensions or follow-ons less than $5 million ($20 million for CPCs),

this authority must not be used to extend an award beyond 10

years of its original award date unless the JRE is approved by the

cognizant Assistant Administrator, for U.S. organizations, or the

Mission Director for non-U.S. organizations. For follow-on awards

or extensions of $5 million or more of the original award amount,

this authority must not be used to extend an award beyond 10

years of its original award date unless the JRE is approved by the

Administrator. The follow-on exception must not be used to

continue a relationship with a recipient that received an award

based on the small grant award exception.

When this exception is used, the Activity Manager must justify with

specificity why the benefits of continuing the assistance activity with

the same recipient exceeds the benefits of a competitive process

encouraged by law and required by Agency policy. For extensions

or awards of $5 million or more using this authority, the DD

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M/OAA/ACTS must clear the JRE. For extensions or awards of

less than $5 million, an informational copy of the JRE must be

furnished to the DD M/OAA/ACTS for reporting purposes only by

sending it to the JRE@usaid.gov mailbox.

A JRE is not required if the amendment is strictly for administrative

purposes, including:

i. Incremental funding actions;

ii. Changes which do not require:

- An increase to the total estimated amount of the

award, or

- A substantive change to the program description;

iii. A no-cost time extension; or

iv. An extension authorized under 2 CFR 200.308(d)(2).

(i) Science and technology and innovation

USAID may restrict eligibility for new or follow-on awards, or amend

existing awards in instances which the Agency determines that a

promising science and technology concept or innovative solution

exists to tackle a pressing development challenge.

For purposes of this exception, innovation means significant, not

incremental, improvements in development impact and the process

that translates knowledge into economic growth and social well-

being. For purposes of this exception, science means the process

of generating knowledge based on evidence, including the

systematic study of the nature and behavior of the material and

physical universe, based on observation, experiment, and

measurement, and the formulation of laws to describe these facts in

general terms. For purposes of this exception, technology means

the application of scientific knowledge to practical problems,

including the tools, processes, and techniques, created by such

application of knowledge.

To use this exception to restrict eligibility, the Activity Manager must

document with specificity that the proposed award or extension is

for science and technology or innovation activities, and that the

benefits to the Agency of restricting eligibility exceed the benefits to

the Agency of unrestricted eligibility PPL/ST, or its successor

organization, must clear all science and technology JREs using this

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exception and IDEA, or its successor organization, must clear all

innovation JREs using this exception. RLO or GC clearance by the

backstop attorney for the requiring office is only required when the

follow-on or extension is for $5 million or more. When used for

extensions or follow-on awards for $5 million or more ($20 million

for CPCs), the requirements of 303.3.6.5a(3) also apply.

(3) Follow-on awards and extensions for $5 million or more

The Administrator must approve the JRE when the action is:

a. A follow-on award of $5 million or more ($20 million or more for

CPC countries) using any of the authorities in 303.3.6.5a(2);

b. An extension that increases the total estimated amount of the

original award by $5 million or more ($20 million or more for CPC

countries) and uses any of the authorities in 303.3.6.5a(2).

The Activity Manager must obtain the clearances below before the

Administrator approves the justification. Additional clearances may be

required based on paragraphs a. (1) and a.(2) above.

The Activity Manager must obtain clearances from the following

individuals, in the order below, before the Administrator will approve a JRE

under any exception in this section 303.3.6.5:

 Agreement Officer

 Cognizant RLO or GC/A&A, and

 Cognizant MD or AA of the Bureau having programmatic

responsibility (the AA may not re-delegate this authority).

The Activity Manager must then submit the JRE to the JRE@usaid.gov

mailbox, where M/OAA/Evaluations will assist in obtaining the remaining

clearances from the following individuals:

 Deputy Director M/OAA/ACTS,

 AE, and

 AA/M.

The Activity Manager must submit the JRE to the JRE@usaid.gov

mailbox for the Administrator‘s approval at least six months before the

anticipated award or amendment date in order to allow sufficient time to

issue the solicitation with unrestricted eligibility in the event the JRE is not

cleared.

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The requirements of this paragraph 303.3.6.5a(3) do not apply to:

 New restricted eligibility awards using any of the authorities in

303.3.6.5a(2), other than 303.3.6.5a(2)(h), that do not include any

of the same or substantially similar activities as those funded under

an existing or preceding USAID award;

 Awards made to public international organizations (PIOs) or

bilateral development partners;

 Awards relying upon statutory notwithstanding authority;

 Humanitarian and disaster assistance activities (OFDA);

 Transition Initiative activities (OTI);

 Food emergency activities (Food for Peace);

 Awards limited to local entities;

 Changes due to budget revisions when eligibility procedures are

not applicable;

 Awards made under Administrator-approved blanket justifications

to restrict eligibility for an approved class of awards, for example,

EPP for HIV/AIDS Expedited Procedures Package; or

 Non-appropriated funding (e.g., gifts received by USAID from

bilateral and multilateral donors, host governments, or the private

sector).

b. Other Exceptions to Restrict Eligibility

The following exceptions to restrict eligibility do not require the preparation of a JRE

when the specific requirements of the exception, provided below, are met.

(1) Emergency and Disaster Assistance

USAID may restrict eligibility and award new or follow-on awards, or amend

existing awards, for disaster relief, rehabilitation or reconstruction assistance

provided under section 491 of the Foreign Assistance Act and for emergency

food aid under Title II of the Food for Peace Act. Such restricted eligibility may

be made following the written determination by the Director of the Office of U.S.

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Foreign Disaster Assistance or the Director of the Office of Food for Peace, both

residing within the Bureau for Democracy, Conflict and Humanitarian Assistance

(DCHA), that unrestricted eligibility is impracticable for awards within their

respective areas of responsibility on an award-by-award or disaster-by-disaster

basis. Following such a determination, no other requirements of this section

303.3.6.5 apply.

(2) Restricted Eligibility to Local or Regional Entities

USAID may restrict eligibility to local or regional (indigenous) entities. For

purposes of consistency and reporting, the definition of “local entity” means an

individual, a corporation, a nonprofit organization, or another body of persons

that:

(1) Is legally organized under the laws of;

(2) Has as its principal place of business or operations in;

(3) Is majority owned by individuals who are citizens or lawful permanent

residents of; and

(4) Is managed by a governing body the majority of who are citizens or lawful

permanent residents of the country receiving assistance.

For purposes of this section, ‘majority owned’ and ‘managed by’ include, without

limitation, beneficiary interests and the power, either directly or indirectly,

whether exercised or exercisable, to control the election, appointment, or tenure

of the organization's managers or a majority of the organization's governing body

by any means.

If eligibility for award is restricted to local or regional entities, U.S. organizations

may not submit an application for the award unless the program is re-advertised

to provide unrestricted eligibility, allowing all U.S. organizations an opportunity to

submit an application.

USAID does not require a JRE where restriction of eligibility to local entities is

described in the Project Appraisal Document (PAD) in ADS 201. PADs may be

amended to authorize restrict eligibility to local entities using this exception.

(3) Transition Awards

USAID may restrict eligibility when awarding to a local entity that has been a sub-

recipient under a USAID prime award (the “initial award”) and all of the following

conditions have been met:

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 The direct award does not exceed 5 years in duration and the total

estimated amount is less than $5 million ($20 million for CPCs);

 The sub-recipient is a local organization;

 USAID’s intent that the initial award recipient would develop the capacity

of the sub-recipients so that the sub-recipients would be eligible to receive

a direct award from USAID or other donors in the future is clearly stated in

the acquisition or assistance solicitation for the initial award; and

 The initial award contains:

- Criteria for the prime recipient to identify and qualify a sub-recipient

for a direct award,

- Procedures for making the direct award, and

- A timeframe for when the direct award will be considered, including

the limits of USAID funding of the initial award for activities of the

sub-recipient.

Awards under this exception are at the discretion of the Agreement Officer.

Awards under this exception must not be extended unless the Mission justifies

the extension using the exception in 303.3.6.5a(2)(f) (“Critical objectives of the

foreign assistance program”) and, if applicable, 303.3.6.5a(3).

For existing awards, amendment of the initial award may be necessary to

conform with the above before direct awards to sub-recipients may be made.

Such amendments must comply with all other legal and policy requirements and

may only be made after an individual authorized to approve the activity under

ADS 201 approves a memorandum confirming that the program description of

the initial award intended that the initial award recipient would develop the

capacity of the sub-recipients so that they would be eligible to receive a direct

award from USAID or other donors in the future.

303.3.6.6 Late or Incomplete Submissions

Effective Date: 12/26/2014

USAID may review and consider late or incomplete Request For Applications (RFA) or

Annual Program Statement (APS) award applications if:

 USAID’s treatment of the material is consistent with the terms of the RFA or

APS,

 All late applications are treated the same, and

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 They are reviewed before any agreements are awarded under the RFA or

APS.

The AO must consent in writing to the review of late or incomplete applications.

303.3.7 The Award Decision

Effective Date: 06/01/2006

The AO’s decision to fund or not to fund an award is final and not subject to review.

Any information that may impact the AO’s decision must be directed to the AO.

303.3.7.1 Notification

Effective Date: 06/01/2006

a. Only the AO may notify the apparently successful awardee that they are being

further considered for an award. It is essential that no one on the SC make any

commitment, expressed or implied, to the selected applicant. Only the AO is

authorized to make a commitment on behalf of USAID.

b. USAID must individually notify each applicant in writing on the success of its

application. Once USAID decides which applicant the Agency will consider for

award, the AO or the Activity Manager (if authority is delegated by the AO) must

notify all unsuccessful applicants that they will not be considered further and

briefly explain why USAID did not select their application. The letters must be

approved by the AO before the Activity Manager may send them.

303.3.7.2 Request for Additional Information

Effective Date: 12/26/2014

Within 10 working days after an applicant receives notice that USAID will not fund its

application, the unsuccessful applicant may send a written request for additional

information to the AO.

Additional information may be provided at the discretion of the AO. USAID may

respond orally or in writing. The cognizant B/IO should respond to the request within 30

days after consultation with the AO or inform the applicant that more time is necessary.

If responding orally, the AO or the technical representative from the B/IO must make a

written summary of the response for the agreement file. The AO must be present at

and lead any meeting. If responding in writing, the AO must approve any written

communication before it is sent to the unsuccessful applicant.

USAID’s responses must be limited to the Agency’s interest in supporting the

applicant’s program as described in the application. Comparing one application to

another is neither advisable nor helpful to the applicant. The Selection Committee (SC)

chair and the AO should only give additional information that would be useful to the

applicant in preparing future applications.

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If the applicant has questions about the program or about the programmatic review, the

SC chair will provide constructive feedback that may assist the applicant when

developing applications in the future. The SC chair may explain the basis for the

decision and the strengths and weaknesses of the application in terms of the published

review criteria. When the applicant has questions about process, accountability, and

business considerations, the AO will respond. The SC chair and the AO will jointly

respond when the applicant raises both types of questions.

303.3.8 Pre-Award Certifications, Assurances, and Other Statements of the

Recipient and Solicitation Standard Provisions

Effective Date: 04/08/2016

In addition to the certifications included in the Standard Form 424, the AO must obtain

the following certifications, assurances, and other statements from both U.S. and non-

U.S. organizations (except as specified below) before making an award and as

otherwise required by the regulations listed in this section. The AO must also

incorporate the solicitation standard provisions and provide links to the applicable award

standard provisions in all solicitations.

The AO may choose to request the applicant to submit the certifications either as part of

the application or during negotiations. The AO should consider the administrative

burden of requiring certifications as part of the application in light of potential delays in

making the award while waiting for the certifications. The required certifications,

assurances, and other statements are:

a. A signed copy of ADS 303mav, Certifications, Assurances, and Other

Statements of the Recipient and Solicitation Standard Provisions, which

includes:

1. Assurance of Compliance with Laws and Regulations Governing

Nondiscrimination in Federally Assisted Programs (This assurance

applies to Non-U.S. organizations, if any part of the program will be

undertaken in the U.S.);

2. Certification Regarding Lobbying (22 CFR 227);

3. Prohibition on Assistance to Drug Traffickers for Covered Countries

and Individuals (ADS 206, Prohibition of Assistance to Drug

Traffickers);

4. Certification Regarding Terrorist Financing;

5. Certification Regarding Trafficking in Persons; and

6. Certification of Recipient

b. Other certifications and statements found in ADS 303mav, Certifications,

Assurances, and Other Statements of the Recipient and Solicitation

Standard Provisions:

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1. A signed copy of Key Individual Certification Narcotics Offenses and

Drug Trafficking, (ADS 206.3.10) when applicable;

2. A signed copy of Participant Certification Narcotics Offenses and

Drug Trafficking (ADS 206.3.10) when applicable;

3. A completed copy of Representation by Organization Regarding a

Delinquent Tax Liability or a Felony Criminal Conviction;

4. Other Statements of Recipients.

c. The standard provisions that must be incorporated into the solicitations are:

1. Branding Strategy – Assistance

2. Marking Plan – Assistance

3. Conscience Clause Implementation (Assistance)

4. Prohibition on Providing Federal Assistance to Entities that Require

Certain Internal Confidentiality Agreements – Representation

303.3.9 Pre-Award Risk Assessment

Effective Date: 07/22/2015

The recommendation or selection of an application for award by an Activity Manager or

a Selection Committee does not in any way guarantee the award. The AO must

evaluate the risks posed by applicants before making the award. The AO must evaluate

risk in accordance with the principles established by USAID and the Office of

Management and Budget (OMB) (see 2 CFR 200.205). Depending on the result of this

pre-award risk assessment, the AO may either:

 Make the award,

 Deny the recommendation of the Activity Manager and not execute the

award, or

 Award with "specific conditions" (2 CFR 200.207 and 303.3.9.2).

A positive risk assessment means that the applicant possesses or has the ability to

obtain the necessary management competence to plan and carry out the assistance

program to be funded, and that the applicant will practice mutually agreed upon

methods of accountability for funds and other assets provided by USAID.

History of Performance. Note that while an organization’s history of performance on

USAID awards should be a factor in determining the level of risk, a history of receiving

grants from USAID does not guarantee that there is no risk in providing funds to an

organization. Changes in personnel, accounting practices, or financial status may affect

an organization’s performance on a new award.

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An applicant’s history of performance can serve as an indicator of the quality of its

future performance. An applicant must provide a list of all its cost-reimbursement

contracts, grants, or cooperative agreements involving similar or related programs

during the past three years. The reference information for these awards must include

the performance location, award number (if available), a brief description of the work

performed, and a point of contact list with current telephone numbers. The Activity

Manager determines whether to require this information as part of the initial application

or later from the apparently successful applicant(s). Requiring the information at a later

date may be appropriate when USAID is conducting a multi-tiered review (see

303.3.6.1.d) (see Best Practices for Collecting and Using Current and Past

Performance Information).

The Selection Committee chair must validate the applicant’s past performance

reference information based on existing evaluations to the maximum extent possible,

and make a reasonable, good faith effort to contact all references to verify or

corroborate the following:

 How well an applicant performed,

 The relevancy of the work performed under the program,

 Instances of good performance,

 Instances of poor performance,

 Significant achievements,

 Significant problems, and

 Any indications of excellent or exceptional performance in the most

critical areas.

The Selection Committee chair and the AO may use the Contractor Performance

Assessment Reporting System (CPARS) and the Past Performance Information

Retrieval System (PPIRS) if there is information available on the recipient in these

systems, taking into account the differences between performance under acquisition

and performance under assistance.

The Activity Manager and the Selection Committee chair may contact references other

than those provided in the application, if the RFA or APS state that it is allowed.

Additionally, before making an award or amending an award to add incremental funding,

increase the total program amount, or extend the period of performance with additional

cost, the AO must verify that neither the successful applicant, nor its proposed

subawardees:

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 Have active exclusions in the System for Award Management (SAM)

(www.sam.gov);

 Appear on the Specially Designated Nationals (SDN) and Blocked Persons

List maintained by the U.S. Treasury for the Office of Foreign Assets Control,

sometimes referred to as the “OFAC List” (online at:

http://www.treasury.gov/resource-center/sanctions/SDN-

List/Pages/default.aspx); and

 Are listed in the United Nations Security designation list (online at:

http://www.un.org/sc/committees/1267/aq_sanctions_list.shtml).

Pursuant to 2 CFR 780 and 2 CFR 180, the Assistant Administrator of the Bureau for

Management, or designee, has the authority to grant an exception permitting an

organization with active exclusions to receive federal assistance. However, such an

exception can only be made in writing and must include a description of the unique

circumstances that warrant deviation from the government-wide policy.

The AO must address the risk assessment of the prospective recipient and document all

findings in the Negotiation Memorandum. The AO must also certify in the Global

Acquisition and Assistance System (GLAAS) that the applicant is not listed as actively

excluded in SAM.gov as suspended, debarred, or proposed for debarment.

When awarding a Fixed Amount Award, the following are to be used instead of those

specified in this section:

 The procedures in 303.3.25;

 ADS 303saj, Fixed Amount Award to Non-Governmental Organizations;

and

 ADS 303mak, Fixed Amount Award Entity Eligibility Checklist.

For all other assistance awards, the following is specific guidance by category for

assessing risk:

CATEGORY A: U.S. ORGANIZATIONS THAT HAVE BEEN RECIPIENTS OR

CONTRACTORS UNDER USAID OR OTHER U.S. GOVERNMENT

(USG) ACQUISITION OR ASSISTANCE INSTRUMENTS

When a U.S. organization has previously received a positive risk assessment by

USAID or another USG Agency, the AO may rely on:

 A Single Audit or similar audit maintained by M/OAA/Contract Audit and

Support Division, Contract Audit Management;

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 A signed copy of the applicable statutory and regulatory certifications required

in 303.3.8;

 The quality of the applicant's history of performance on similar USAID

projects, including compliance with the terms and conditions of the funding

agreement, as evaluated by the DO Team in accordance with 303.3.6.3; or

 Other information as necessary, including formal pre-award surveys (see

303.3.8, 303.3.5.2, 303.3.9.1 and 303.3.25).

CATEGORY B: NON-U.S. ORGANIZATIONS THAT HAVE BEEN RECIPIENTS OR

CONTRACTORS UNDER USAID OR OTHER U.S. GOVERNMENT

(USG) ACQUISITION OR ASSISTANCE INSTRUMENTS

To make a risk assessment for a non-U.S. organization that has previously received a

positive risk assessment by USAID or another USG Agency, the AO may rely on:

 Audits performed in accordance with ADS 591, Financial Audits of USAID

Contractors, Grantees, and Host Government Entities 591.3.4.2;

 A signed copy of the applicable statutory and regulatory certifications required

in 303.3.8;

 The quality of the applicant's history of performance on similar USAID

projects, including compliance with the terms and conditions of the funding

agreement, as evaluated by the DO Team in accordance with 303.3.6.3; or

 Other information as necessary and appropriate, including pre-award surveys,

(see 303.3.8, 303.3.5.2, 303.3.9.1 and 303.3.25).

CATEGORY C: ORGANIZATIONS NEW TO USAID OR ORGANIZATIONS WITH

OUTSTANDING AUDIT FINDINGS

If a criteria found in 303.3.9.1, applies to the selected or recommended applicant, the

AO must perform a survey in conformance with that provision before making a risk

assessment decision. The survey must be considered when making the decision. At a

minimum, the risk assessment for such an applicant will be based on the same

considerations as in categories a or b of this section, depending on whether it is a U.S.

or non-U.S. organization. Additionally, the AO must obtain the following information

from these applicants, when appropriate:

 Copies of audited financial statements for the last three years, which a

Certified Public Accountant or other auditor satisfactory to USAID has

performed;

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 Projected budget, cash flow, and organization charts; and

 Copies of applicable policies and procedures (e.g., accounting, purchasing,

property management, personnel).

303.3.9.1 Pre-Award Surveys

Effective Date: 12/26/2014

a. Pre-Award Survey Requirements. For all assistance awards, if any of the

following criteria apply, the AO must establish and convene a formal survey team

to conduct an examination that will help inform the risk assessment (see

303.3.9):

(1) The AO or Activity Manager is uncertain about the prospective recipient's

capacity to perform financially or programmatically.

(2) The prospective recipient has never had a USAID grant, cooperative

agreement, or contract. This requirement does not apply to Fixed Amount

Awards.

(3) The prospective recipient has not received an award from any Federal

agency within the last five years. This requirement does not apply to Fixed

Amount Awards.

(4) The AO has knowledge of deficiencies in the applicant's annual audit

(Single Audit or equivalent).

(5) The AO determines it to be in the best interest of the U.S. Government.

b. Contents of the Pre-Award Survey. The survey team examines the applicant’s

systems to determine whether the prospective recipient has the necessary

organization, experience, accounting and operational controls, and technical

skills in order to achieve the objectives of the program, or whether specific

conditions will be needed.

(1) For a U.S. organization, the AO must ensure that the applicant can meet

the requirements of the award, including 2 CFR 200 and the applicable

cost principles. The AO or the AO’s representative must conduct a

detailed analysis that addresses whether:

i. The applicant’s accounting, recordkeeping, and overall financial

management systems meet the standards in 2 CFR 200.300-309

and 2 CFR 200.333-337.

ii. The applicant's system of internal controls is reasonable in

accordance with applicable cost principles. This includes the

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segregation of duties, handling of cash, contracting procedures,

and personnel and travel policies.

iii. The applicant's property management system, if applicable, meets

the property standards in 2 CFR 200.310-316.

iv. The applicant meets the requirements in 2 CFR 200.330-332 for

the administration and monitoring of sub-awards.

v. The applicant's procurement system, if procurement is significant to

the award, meets the standards set forth in 2 CFR 200.317-326.

(2) For a non-U.S. organization, the AO must ensure that the applicant can

meet the requirements of ADS 303mab, Standard Provisions for Non-

U.S. Nongovernmental Organizations as part of the risk assessment.

For local non-U.S. organizations, the pre-award survey team must either

use ADS 303sam, Non-U.S. Organization Pre-Award Survey

Guidelines and Support or conduct a detailed analysis in accordance

with locally-established or award-specific criteria that achieve the same

objectives as the NUPAS. For additional guidance regarding local non-

U.S. organizations pre-award surveys, risk assessments, and specific

conditions (see ADS 303sam, NUPAS Guidelines and Support).

(3) For Fixed Amount Awards, the AO must use the ADS 303mak, Fixed

Amount Award Entity Eligibility Checklist to ensure the intended

recipient will be able to comply with ADS 303mat, Standard Provisions

for Fixed Amount Awards to Nongovernmental Organizations.

c. Composition of the Pre-Award Survey Team. When assembling a formal

survey team, the AO must ensure appropriate expertise.

(1) A typical team consists of:

i. A Development Objective Team member,

ii. The AO, or the AO’s representative,

iii. A financial officer from the Bureau for Management, Office of the

Chief Financial Officer, or the Mission or regional controller's office,

and

iv. A representative from M/OAA/Contract Audit and Support Division,

Contract Audit Management Branch (for Washington-based

awards), if possible.

(2) Depending on the capacity of the Operating Unit to assemble the above

team, the survey may be conducted in whole or in part by a local

accounting firm approved by the cognizant Regional Inspector General as

long as the Scope of Work for such work includes conflict of interest

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restrictions prohibiting the firm from providing capacity development to

entities it surveys.

(3) The survey team reviews the applicant’s systems against the standards

discussed in paragraph b of this section and submits its findings to the AO

for review, consideration, and informing the risk assessment.

d. Risk Assessment Decision. Before the award of any grant or cooperative

agreement, the AO must:

(1) Review the proposed project description and budget to ensure that they

adequately describe the objectives of the project, the activities funded by

USAID that will achieve the objectives, and a monitoring system to

measure the project’s progress. The Activity Manager advises the AO on

the professional and technical experience and competence of the

applicant and the conformity of the application to USAID criteria.

(2) Make a written final determination of the applicant's risk in the

Memorandum of Negotiation. If the determination is positive, the AO must

state in the memorandum that the applicant:

i. Has adequate financial resources or the ability to obtain such

resources, as required during the performance of the award.

ii. Has the ability to meet the award terms and conditions, considering

all existing prospective recipient commitments, both non-

governmental and governmental.

iii. Has a satisfactory record of performance. Generally, relevant

unsatisfactory performance in the past is enough to justify a finding

of non-responsibility, unless there is clear evidence of subsequent

satisfactory performance or the applicant has taken adequate

corrective measures to assure that it will be able to perform its

functions satisfactorily.

iv. Has a satisfactory record of business integrity.

v. Is otherwise qualified to receive an award under applicable laws

and regulations.

303.3.9.2 Specific Conditions

Effective Date: 12/26/2014

It is the AO’s responsibility to minimize the risk to USAID posed by high risk

organizations. If, after conducting a comprehensive risk assessment of a potential

recipient, the AO is unable to make a positive risk determination, the AO may either

deny the Activity Manager’s recommendation and not make the award or award with

“specific conditions” (high risk) (see 2 CFR 200.207). The AO, however, may consider

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this choice only if it appears likely that the potential recipient can correct its deficiencies

within a reasonable period of time. Because regulation authorizes “specific conditions,”

a deviation is not needed.

a. Means to Minimize Risk. When the AO makes an award, the AO may consider

requiring any of the following specific conditions:

(1) Requiring payments as reimbursements rather than advance payments;

(2) Withholding authority to proceed to the next phase until receipt of evidence of

acceptable performance within a given period of performance;

(3) Requiring additional, more detailed financial reports;

(4) Requiring additional project monitoring;

(5) Establishing additional prior approvals; or

(6) Requiring the recipient to obtain technical or management assistance.

When the AO determines that more Federal oversight is necessary, the AO may:

 Issue a contract to a third party to provide technical assistance to the

recipient,

 Require the recipient to contract for technical assistance, or

 Have USAID staff provide technical assistance directly to the recipient.

b. The AO must notify the successful applicant of:

(1) The nature of the additional requirements;

(2) The reason why the additional requirements are being imposed;

(3) The nature of the action needed to remove the additional requirement, if

applicable;

(4) The time allowed for completing the actions if applicable; and

(5) The method for requesting reconsideration of the additional requirements

imposed.

Any specific conditions must be promptly removed once the conditions that

prompted them have been corrected.

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c. Non-US NGO Recipients

Because 2 CFR 200 is not legally applicable to awards to non-U.S.

organizations, as a matter of USAID policy, the standards in this ADS section

303.3.9.2d must be used for making awards to non-U.S. recipients with specific

conditions. Where deficiencies or weaknesses are identified by the pre-award

survey under 303.3.9.1b(2) and cannot be corrected prior to award, the AO may

make an award upon an affirmative risk assessment determination that is

contingent upon one or more specific conditions in the award. Such specific

conditions must mitigate the risks posed by the deficiencies or weaknesses

identified by the NUPAS and require the recipient to correct the reported

deficiencies. Specific conditions for non-US recipients may be of limited duration

or may cover the entire period of the award. For additional guidance on specific

conditions for non-US recipients, see the NUPAS Guidelines and Support.

Additionally, when specific conditions are used with non-US recipients, the

following requirements apply:

(1) The specific conditions must contain language subjecting the

recipient to a follow-up review/survey within a reasonable time after

award to verify compliance with the conditions;

(2) The continuation of award performance must be predicated on the

recipient correcting the reported inadequacies within the timeframe

identified in the award;

(3) The Negotiation Memorandum must document in the risk

determination section the rationale for including each specific

condition;

(4) The specific condition(s) must specify in the award document:

i. The nature of the additional requirements,

ii. The nature of the corrective action needed,

iii. The time allowed for completing the corrective actions; and

(5) The cognizant Operating Unit must develop and carry out a plan for

monitoring and supporting the recipient in satisfying any specific

conditions.

Whenever possible, specific conditions must be for as limited a time period as

necessary to mitigate the identified risks and not for the life of the award.

For specific conditions that do not cover the entire award period, once the

specific condition has been satisfied and its conditions have been fully met, the

Agreement Officer must remove the specific condition by formal amendment to

the award. For specific conditions that cover the entire period of the award, the

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specific condition must clearly state that it covers the entire period of the award

or must identify clearly the timeframe(s) or milestones at which the inclusion of

the specific may be reconsidered, amended or removed.

303.3.10 Cost Share

Effective Date: 06/18/2012

Cost share refers to the resources a recipient contributes to the total cost of an

agreement. Cost share becomes a condition of an award when it is part of the

approved award budget. The cost share must be verifiable from the recipient’s records;

for U.S. organizations it is subject to the requirements of 2 CFR 200.306, and for non-

U.S. organizations it is subject to the Standard Provision, “Cost Share”; and can be

audited. If a recipient does not meet its cost share requirement, the AO may apply the

difference in actual cost share amount from the agreed upon amount to reduce the

amount of USAID funding for the following funding period, require the recipient to refund

the difference to USAID when this award expires or is terminated, or reduce the amount

of cost share required under the award.

303.3.10.1 Cost Share Determination

Effective Date: 12/26/2014

Although there is no general legislative requirement that recipients of grants or

cooperative agreements must cost share, cost sharing is an important element of the

USAID-recipient relationship. When used, its application should be flexible, case-

specific, and used to support or contribute to the achievement of results. USAID should

use cost sharing after considering whether it is appropriate for the recipient organization

in the particular circumstances, in particular, the programmatic and technical context.

There is no set formula for cost sharing. There is not a suggested numeric reference

point. Cost sharing should be based on the needs or purpose of the activity. Examples

of when cost-sharing may be appropriate include:

 When there is a programmatic rationale for cost sharing, such as helping

to ensure that the recipient will build its organizational capacity for

mobilizing resource. For example, when building fundraising capability is

an objective of an activity, it would be appropriate to require the recipient

to meet specific private financing targets as a condition of USAID funding.

 When it is critical that the activity continues after USAID assistance ends,

cost sharing requirements can ensure that the recipient establishes

adequate alternate sources of funding.

 When an award supports an activity initiated by the recipient or an

unsolicited application. Because most USAID funding is reserved for

development priorities the Agency has already established, only limited

funding may be available for even the best of other programs. USAID

may only be able to partially fund these other activities.

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 To otherwise give the recipient a financial stake in the success of a

program.

In all of these cases, the DO Team should discuss the amount and terms of cost

sharing with potential recipients prior to award (see ADS 200saf, Guidance on

Consultation and Avoidance of Unfair Competitive Advantage).

The Activity Manager must determine the appropriate cost share for individual grants

and cooperative agreements. The Activity Manager must include this determination in

the financial analysis of the program prior to issuance of a Request for Applications

(RFA) or an Annual Program Statement (APS). In the case of awards solicited with

unrestricted eligibility, the Activity Manager is encouraged to communicate with a broad

range of potential applicants regarding appropriate cost sharing prior to issuance of the

RFA or APS. Even after USAID issues an RFA or APS, it may be appropriate to

consider special circumstances and change the cost share requirement. In the case of

restricted eligibility awards, the Activity Manager may wish to discuss or negotiate the

cost share with the applicant, especially those who submit unsolicited applications.

USAID may not use a set formula in determining the level of cost share. The Activity

Manager should take several considerations into account when making cost share

decisions. For example, it might be difficult for a recipient to meet a cost share

requirement during an activity with a short timeframe. A specific program may be risky

and discourages potential recipients from providing meaningful contributions. Eligibility

may be limited to indigenous organizations with limited resources.

The Activity Manager must write a memorandum to the AO documenting the factors that

were considered when determining the amount of cost share.

USAID may require cost sharing regardless of the type of organization, whether non-

profit (U.S. and international private voluntary organizations, local nongovernmental

organizations, universities, foundations, and others) or commercial organizations,

including for-profit businesses. In the case of a non-U.S. recipient, it is important to be

flexible when establishing cost sharing requirements.

If an activity generates a profit, the AO must consider the best uses of program income

and document this in the award. In accordance with 2 CFR 200.307 and the prior

written approval of the AO, USAID may use program income to finance the non-Federal

cost share of an award. The AO may also make the program income additive to

USAID’s contribution without a cost sharing requirement when this would help achieve

program objectives, such as sustainability.

303.3.10.2 Cost Sharing in RFAs and APS

Effective Date: 07/22/2015

If USAID makes a determination to require cost sharing in an award, it must state the

requirements in the announcement. If USAID issues an announcement [Request for

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Applications (RFA) or Annual Program Statement (APS)] and then the Activity Manager

decides that the amount of cost share required should be changed, the Activity Manager

must provide an adequate justification and request the AO to amend the RFA or APS

document, as applicable. Applications that do not meet the minimum cost share

requirement, when applicable, are not eligible for award consideration. See 303.3.5.2c

and 303.3.5.2e.

In accordance with 2 CFR 200.306, cost sharing cannot be used as a separate factor

during the merit review of applications. However, cost sharing may be considered in the

merit review only if the funding announcement specifically addresses how it will be

considered, e.g., assigning a certain number of additional points to applicants who offer

cost sharing, or using cost sharing to break ties among applications with equivalent

scores after evaluation against all other factors. Note that excessive reliance on cost

sharing during the merit review may unfairly favor larger, better-funded organizations.

303.3.10.3 Meeting Cost Sharing Requirements

Effective Date: 12/26/2014

As part of the analysis of the applicant's proposed budget, the AO must review the

applicant's proposed cost share contributions for cost realism. The AO must verify that

the proposed contributions meet the standards set in 2 CFR 200.306 for U.S.

organizations or the Standard Provision “Cost Share” for non-U.S. organizations.

USAID does not apply its source and nationality requirements or the restricted goods

provision established in the Standard Provision "USAID Eligibility Rules for

Commodities and Services" to cost share contributions.

In the award budget, cost share must be expressed as a dollar figure rather than a

percentage to assist in monitoring the amount. Cost sharing applies throughout the life

of an agreement, and the AOR must monitor the recipient's financial reports to ensure

that the recipient is making progress toward meeting the required cost share. If it

appears that the recipient is not making adequate progress, the AOR must bring this to

the attention of the AO. The AO then must initiate discussions with the recipient to

resolve the issue. The AO has the authority to reduce the amount of USAID

incremental funding in the following funding period or to reduce the amount of the

agreement by the difference between the expended amount and what the recipient

agreed to provide. If the award has expired or been terminated, the AO may request

the recipient to refund the difference to USAID.

In-kind contributions are allowable as cost share in accordance with 2 CFR 200.306 for

U.S. organizations and in accordance with the Standard Provision, “Cost Share” for

non-U.S. organizations. This includes things such as volunteer time; valuation of

donated supplies, equipment, and other property; and use of unrecovered indirect costs.

303.3.11 Substantial Involvement and Cooperative Agreements

Effective Date: 12/26/2014

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USAID substantial involvement in awards is limited to cooperative agreements. USAID

cannot be substantially involved in grants. When making an award, the AO must select,

in accordance with ADS 304, either a grant or a cooperative agreement as the

appropriate implementing instrument.

In determining whether an award will need substantial USAID involvement, the AO must

not consider a single factor or proposed involvement. The AO must instead evaluate

the type of overall relationship expected between USAID and the recipient.

Office of Management and Budget policy on substantial involvement proscribes that

agencies "should limit their involvement in assisted activities to the minimum consistent

with program requirements." Therefore, the AO must be satisfied that USAID’s

proposed involvement in an assistance activity is reasonable and necessary.

Anticipated substantial USAID involvement is a relative, rather than an absolute

concept. USAID must always have some involvement in assistance awards, e.g.,

monitoring performance, reviewing reports, or providing approvals required by 2 CFR

200.308 and 2 CFR 700.16. But these are not instances of substantial involvement.

Substantial involvement is defined by the following elements at 303.3.11a – d, unless

USAID authorizes a deviation in accordance with 303.3.4. The DO Team must describe

this substantial involvement in the cooperative agreement if the DO Team anticipates

such Agency involvement during the performance of an award. The DO Team must

consult with the AO and describe USAID's interests so that the award adequately

reflects the level of USAID's necessary planned involvement. Furthermore, USAID

must directly and specifically tie each area of substantial involvement to an activity in

the program description to the AO’s satisfaction.

On behalf of the Agency, an AOR will substantially be involved in the administration of a

cooperative agreement to help the recipient achieve the agreement objectives. The AO

may delegate the approvals listed in items a - d below to the AOR, except for authority

to change the program description and the approved budget. Only the AO may approve

such changes after review by the AOR.

ELEMENTS OF SUBSTANTIAL INVOLVEMENT

a. Approval of the Recipient's Implementation Plans

If at the time of award, the program description does not establish a timeline in

sufficient detail for the planned achievement of milestones or outputs, USAID

may delay approval of the recipient’s implementation plan for a later date.

USAID must not require approval of implementation plans more often than

annually. If the AO has delegated authority to the AOR to approve

implementation plans, the AOR must review the agreement’s terms and

conditions to ensure that changes to the terms and conditions are not

inadvertently approved by the AOR.

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b. Approval of Specified Key Personnel

USAID may designate as key personnel only those positions that are essential to

the successful implementation of the recipient’s program. USAID’s policy limits

this to a reasonable number of positions, generally no more than five positions or

five percent of recipient employees working under the award, whichever is

greater.

c. Agency and Recipient Collaboration or Joint Participation

When the recipient's successful accomplishment of program objectives would

benefit from USAID's technical knowledge, the AO may authorize the

collaboration or joint participation of USAID and the recipient on the program.

There should be sufficient reason for Agency involvement and the involvement

should be specifically tailored to support identified elements in the program

description. When these conditions are met, the AO may include appropriate

levels of substantial involvement such as the following:

(1) Collaborative involvement in selection of advisory committee

members, if the program will establish an advisory committee that

provides advice to the recipient. USAID may participate as a member of

this committee as well. Advisory committees must only deal with

programmatic or technical issues and not routine administrative matters.

(2) Concurrence on the substantive provisions of sub-awards. 2 CFR 200.308

already requires the recipient to obtain the AO’s prior approval for the sub-

award, transfer, or contracting out of any work under an award. This is

generally limited to approving work by a third party under the agreement.

If USAID wishes to reserve any further approval rights for sub-awards or

contracts, it must clearly spell out such Agency involvement in the

substantial involvement provision of the agreement.

(3) Approval of the recipient's monitoring and evaluation plans.

(4) Monitor to authorize specified kinds of direction or redirection because of

interrelationships with other projects. All such activities must be included

in the program description, negotiated in the budget, and made part of the

award.

d. Agency Authority to Immediately Halt a Construction Activity

USAID may include the statement “The AO may immediately halt a construction

activity if identified specifications are not met.” In such cases, the AO must also

attach the identified specifications to the award when it is being executed. Any

material changes to the specifications must be treated as an amendment to the

award.

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303.3.12 Negotiation of the Award

Effective Date: 12/26/2014

a. Review of Proposed Award Budget. The AO must review the apparently

successful applicant’s budget to ensure that costs, including cost sharing, are in

compliance with OMB’s and USAID’s policies. The recipient must justify in

advance the proposed costs for each element of the program. If the recipient

expects to earn program income during the award period, the schedule of the

award must specifically state how the income will be applied. (The definition of

program income is located in 2 CFR 200.80 and income application suggestions

can be found in 2 CFR 200.307.)

When reviewing costs, the AO must review the cost breakdown; and evaluate

and analyze specific elements of costs for reasonableness and allocability of

costs in the budget, and the allowability of the costs under the applicable cost

principles. The review of the proposed budget helps the AO determine:

(1) The extent of the prospective recipient’s understanding of the financial

aspects of the program and the recipient’s ability to perform the grant

activities within the amount requested;

(2) Whether the applicant's plans will achieve the program objectives with

reasonable economy and efficiency; and

(3) Any special conditions relating to costs that are in the award.

The AO must determine the level of the cost review based on the nature of the

program, the amount and type of costs involved, and past experience with the

applicant. For example, if an assistance award contains construction, then the

AO must complete a detailed cost-analysis for the construction component. AOs

must use the mandatory templates found internally at

https://pages.usaid.gov/M/OAA/assistance-resources to document cost

review findings.

The AO may request M/OAA/Contract Audit and Support Division (CAS)

assistance when reviewing the proposed budget. M/OAA/CAS could address

whether the apparently successful applicant’s budget is fair and reasonable for

the proposed program, and whether the application is consistent with the

Agency’s cost accounting policies, procedures, and practices. This includes

ensuring that the apparently successful applicant’s indirect cost rates are

consistent with any Negotiated Indirect Cost Rate Agreements (NICRA).

If the apparently successful applicant has never received a negotiated indirect

cost rate, the recipient may choose to charge a de minimis rate of 10% of

modified total direct costs (see 2 CFR 200.414(f)). If the prospective applicant

chooses the de minimis rate, the AO must incorporate the 10% indirect cost rate

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in the award budget and the recipient must follow the requirements in 2 CFR

200.414(f).

The AO must negotiate with the applicant to resolve any issues related to

proposed costs that do not comply with USAID policies before executing the

award.

b. File documentation. The Agency Secure Image and Storage Tracking (ASIST)

System is the Agency's official electronic repository for all Acquisition &

Assistance (A&A) award documentation. A&A staff must file all documentation

relating to an award, from pre-solicitation through close-out, in ASIST. The

requirements and procedures for filing award documents in ASIST, as well as

standards for file documentation by award type are available internally at

https://pages.usaid.gov/M/OAA/assistance-resources. The ASIST guidelines

also contain guidance for maintaining older awards in the paper-based format.

The AO must document the negotiation process for a new assistance award or

an amendment of an existing award, along with other pre-award determinations

in a Memorandum of Negotiation using the applicable templates found internally

at https://pages.usaid.gov/M/OAA/assistance-resources. The Memorandum

of Negotiations must be included in the award file together with all applicable

supporting documentation.

303.3.13 The Award Process and Elements of an Award

Effective Date: 12/26/2014

Before making an award, the AO must ensure that:

 The program description clearly identifies the purpose of the program, contains

an implementation plan that specifically identifies each element of the program,

and specifies the duration of the assistance instrument.

 All elements of the award – including items in the schedule such as period of

performance, award amount, place of performance, and program description –

clearly and coherently express the specific understandings of both parties.

 The Branding Strategy and Marking Plan meet regulatory and USAID policy

requirements. If the Administrator has provided a written determination for use of

an additional or substitute logo or seal and tagline representing a presidential

initiative or other high level interagency federal initiative, the AO must identify the

alternate branding to be used in the award (see 2 CFR 700.16 or, for non-U.S.

organizations, see the provision entitled “Marking and Public Communications

Under USAID-Funded Assistance”).

 All representations and certifications are completed and current.

 All “specific conditions” are identified (see 303.3.9.2).

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 The award complies with all CFRs and Executive Orders in the mandatory

references (303.4), the Standard Provisions, other ADS chapters, and other

USAID guidance, as appropriate.

To avoid ambiguities and ensure the recipient’s agreement , the AO must include in the

award document all mandatory standard provisions and only those “Required as

Applicable” standard provisions that are intended to be a term and condition of the

award. The AO must determine which “Required as Applicable” standard provisions to

include in the award using the guidance found in Applicability Statements of each

“Required as Applicable” standard provision and the applicable mandatory references

and additional help documents included with this chapter.

Before the award is signed, the AO must ensure that all of the elements of a legally

binding agreement are present. These are:

 Competent parties,

 Proper subject matter,

 Sufficient consideration,

 Mutual understanding, and

 Agreement on the terms of the assistance instrument.

The AO’s signature serves to obligate funds under a grant or cooperative agreement

(see ADS 621, Obligations), as long as the AO accepts the recipient’s application

without substantial modification or negotiates any changes with the applicant. The AO

will provide a copy of the grant or cooperative agreement to the recipient to ensure it

agrees with the terms and conditions of the award. If the AO makes any substantive

change to the program description or the budget or adds terms to the agreement that

were not addressed during negotiations, such as a Substantial Involvement

Understanding or ”specific conditions” (see 2 CFR 200.207 and 303.3.9.2 and

303.3.11), the AO must obtain the applicant’s agreement to the changes or additional

terms before obligating funds.

Prior to signing a grant or cooperative agreement, the AO must ensure that the entire

award or amendment package is processed and generated in GLAAS, available only

internally at https://pages.usaid.gov/M/OAA/assistance-resources. The negotiation

memorandum must be documented accordingly. When the award is signed by all

relevant parties, the AO or negotiator must upload a scanned copy of the fully executed

award into GLAAS.

303.3.14 Duration of Assistance Awards

Effective Date: 06/18/2012

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Section 635(h) of the Foreign Assistance Act states that a grant or cooperative

agreement may not run at any time for more than five years. This means that any

current period of performance may not be for more than five years. As long as this is

the case, USAID may extend the agreement. For example, after the completion of the

first year, subject to eligibility requirements, USAID may extend the award for one more

year. Alternatively, prior to the end date of the award, it may be extended for up to five

years, subject to the eligibility requirements in 303.3.6.5.

303.3.15 Designation of the Agreement Officer’s Representative (AOR)

Effective Date: 08/08/2014

An Agreement Officer’s Representative (AOR) assists in the programmatic monitoring

or administration of an award. The AOR designation is specific to a particular individual

for the specified award. This authority is independent of any other roles,

responsibilities, and duties the designee may fulfill in his or her technical capacity.

The AO must designate an AOR (and alternate, if applicable) for each grant or

cooperative agreement as early in the award process as practical. The AO may not

finalize an award until after they have signed the AOR designation letter in accordance

with ADS 303mai, Model Letters and Procedures for Designating the Agreement

Officer’s Representative (AOR) for Cooperative Agreements and Grants and

received the signed AOR acknowledgement.

The Operating Unit (OU) must nominate an AOR as early in the planning process as

possible. At the time of the award, the AO must identify the AOR by name in the

Schedule of the award and enter the AOR’s name in the Global Acquisition and

Assistance System (GLAAS). When the award is executed, the AO must distribute the

signed designation letter to the recipient, the paying office, the AOR and alternate, and

other relevant parties. The signed designation letter must also be maintained in the

award file.

In the event the AOR changes during the period of the award, the AO must re-issue the

designation letter to the new AOR and receive the new AOR’s acknowledgement. The

AO must prepare a unilateral amendment in GLAAS to update the AOR designation,

provide a copy of the signed designation letter along with the amendment to the

recipient, the paying office and other relevant parties, and maintain a signed copy in the

award file.

Before the AO designates the AOR and alternate AOR, the selected individuals must

provide:

 Proof of a current certification in the Federal Acquisition Institute Training

Application System (FAITAS);

 Proof of completion of the Agency specific training; and, if applicable

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 Proof of completion of the required 40 hours of continuous learning.

a. Eligibility and Appointment

(1) In order to be eligible for designation as an AOR or an alternate AOR, the

appointee must:

 Have a direct employee – employer relationship with the U.S. Government

that allows him or her to perform inherently governmental functions. AOR

eligibility is not based on the program which brought the individual into the

Agency, (e.g. Fellows or Participating Agency Service Agreements (PASA),

but on the individual's employment status). They must work for USAID as

a(n):

- Direct-hire employee,

- Employee of another U.S. Government agency through an interagency

agreement or on detail, or

- PSC (U.S. citizen or national, Foreign Service National or Third

Country National).

 Be AOR certified through the Agency's mandatory training and certification

program specified in paragraph b of this section.

 Possess experience commensurate with the responsibilities to be delegated.

(2) Approvals for Designating an Uncertified AOR

An uncertified AOR is an individual who has never been certified or an AOR

whose certification has expired as a result of not having completed the

mandatory continuous learning requirements discussed in 303.3.15.b. In

exceptional circumstances, the AO may designate an uncertified AOR with a

written recommendation from the Mission Director (MD) for Mission executed

awards, or the Bureau Deputy Assistant Administrator (DAA) for USAID/W

executed awards. The MD or DAA may recommend the designation of an

uncertified individual as an AOR for a period of up to six months. The

recommendation must be in writing and in accordance with the USAID Federal

Acquisition Professional Accreditation & Re-Certification Program

Standard Operating Procedure (SOP).

The request must include:

 A description of the compelling circumstances requiring the exception,

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 Affirmation that the individual has completed the Phoenix Accruals online

course, and

 Confirmation from the individual and the individual’s supervisor that the

individual will complete the AOR certification and Agency training

requirements within six months.

Recommendations for extensions of the designation of an uncertified AOR

beyond six months can only be approved by the Director of M/OAA. This

extension may be for an additional six months not to exceed a cumulative period

of one year. The AO may designate an uncertified AOR only upon receipt of the

appropriate written approvals.

b. Certification and Training Requirements

The Office of Human Capital and Talent Management, Center for Professional

Development (HCTM/CPD), in coordination with M/OAA, established a Contracting

Officer’s Representative (COR)/ Agreement Officer’s Representative (AOR) certification

program. Specific certification requirements are outlined in ADS 458, Training and

Career/Professional Development, Section 458.3.4.2(c) and include successful

completion of:

 Acquisition and Assistance (A&A) Management for COR/AORs course (A&A

104) or its predecessor course,

 Programming Foreign Assistance,

 Web-based Phoenix Accruals on-line course,

 Web-based COR/AOR on-line course, and

 40 hours of continuous learning points for every two years from the initial

certification.

Failure to complete the 40 hours of continuous learning points will result in an expiry of

the AOR’s certification and the AOR will no longer be eligible to perform the functions of

an AOR.

(1) Exceptions:

The following individuals may be designated as AORs without completion of the

COR/AOR certification program:

 Warranted Contracting/Agreement Officers,

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 Procurement Management Certification Program (PMCP) certified

individuals, and

 Federal Acquisition Certification in Contracting (FAC-C) certified

individuals.

However, the individuals must still complete the Web-based Phoenix Accruals

online course, and be certified in FAITAS, before the AO can designate the

individuals as AORs.

c. Issuing the AOR Designation Letter

AOs must use the Standardized Designation Letter, essentially as written, to appoint an

AOR. AOs may tailor the letter in accordance with guidance provided in ADS 303mai,

Model Letters and Procedures for Designating the Agreement Officer’s

Representative (AOR) for Cooperative Agreements and Grants.

The AO may also designate an alternate AOR to perform AOR duties during the

absence of the AOR. The alternate must meet the AOR certification requirements and

be appointed by designation letter, preferably the same letter as the AOR.

d. Limitations on AOR Authorities

AOR authority does not include communicating with the recipient, either in writing or

verbally, or otherwise committing to changes that affect the program, cost, period of

performance, or other terms and conditions of the award. Only an AO has the authority

to take such actions. The Standardized Designation Letter further states the specific

limitations of the AOR designation.

AORs may enlist the assistance of others to:

 Conduct fact-finding,

 Provide analyses or interpretations of programmatic requirements, and

 Make recommendations, among other assistance that may be sought.

However, the AOR remains accountable for the delegated responsibilities and is the

only person authorized to carry out the functions described in the AOR designation

letter.

The AOR is not authorized to further delegate this authority. If neither the AOR nor the

alternate is available to perform their duties, the AOR must direct the recipient to the AO

for guidance. No other individuals are authorized to approve recipient payment

requests or perform other AOR functions.

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e. Revocation of an AOR Designation

The AOR designation is effective for the duration of the award unless otherwise

specified; is subsequently revoked by the AO; or the AOR’s certification expires for

failure to complete the required continuous learning points. AOs have the authority to

revoke a designation letter in writing at any time if an individual's performance as an

AOR is unsatisfactory. AOs must revoke a designation letter and appoint a new AOR if

the AOR:

 Is assigned to a new post or position unrelated to the award,

 Fails to maintain the AOR certification by completing the required continuous

learning points every two years after the initial AOR certification, or

 Has not completed the certification program within the time specified for AORs

who are designated under the exceptional circumstances listed in 303.3.15.a.(2).

In the event that the AOR’s certification expires the AOR must inform the AO of the

expiration. The AOR must not continue to perform AOR duties, even if the AO has not

formally revoked the AOR’s designation, as it may result in unauthorized commitments

as the AOR will be acting without authority. The AOR will be held accountable and

must accept responsibility for any unauthorized action and must assist the AO in

processing all documentation required to formalize the commitment.

303.3.16 Congressional Award Notification System

Effective Date: 02/20/2009

The Congressional Award Notification System requires the AO to notify the Bureau for

Legislative and Public Affairs (LPA) when they make certain awards to U.S.

organizations.

a. AOs must follow the notification procedures in ADS 302man, Congressional

Award Notification. This requires the AO to notify LPA AFTER signing but

BEFORE releasing, or allowing to be released, an announcement of the awards

listed below. This restriction on announcing the award applies to notifying the

awardee that the award has been signed. For further details, see Section II,

Other Considerations of that same document.

b. Types of awards that require notification include the following:

(1) Awards of any value to an organization that has not previously received an

award from USAID.

(2) Any award with which there was Congressional correspondence during

the pre-award stage. LPA will alert the AO that such correspondence has

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occurred, and the AO will flag the award as falling under these notification

criteria and procedures.

(3) Any award for a particular program or geographic region that the operating

unit or LPA identifies as being of particular interest to Congress, the

Agency, or the general public; for example, earthquake relief in Haiti or the

international HIV/AIDS program. LPA will coordinate with its liaison in the

operating unit to identify these awards and will alert the operating unit, the

AO, or both of them at the earliest opportunity before the award decision.

(4) Grants, cooperative agreements, and any amendment to them with a total

estimated amount or increase in the total estimated amount of US

$500,000 or more, respectively. Amendments providing only incremental

funding (and involving no increase to the award amount) are not included.

303.3.17 Distribution of Awards

Effective Date: 06/01/2006

Generally, distribution of awards is at the discretion of the AO. At the minimum, a copy

of the agreement document and all amendments to the award must be part of the

official award file and provided to the:

 Recipient,

 AOR,

 Office responsible for payment under the agreement, and

 Accounting station, if it is different from the office responsible for payment.

If payment is by letter of credit, the AO must immediately send a scanned copy of the

award and any amendment by email to the Bureau for Management, Office of the Chief

Financial Officer, Cash Management and Payment Division (M/CFO/CMP) at the Letter

of Credit Activity mailbox: loc@usaid.gov. Because the funds are obligated when the

AO signs the award, the AO should not obtain the recipient’s signature before sending

the award to M/CFO/CMP. The AO must provide M/CFO/CMP with the signed award

letter or amendment cover page, accounting and appropriation data, and the schedule.

The AO must send the award or amendment to M/CFO/CMP within 10 business days

after signing it.

303.3.18 Award Administration

Effective Date: 12/26/2014

Award administration includes all interactions concerning the award between USAID

officials and the recipient from the time the award is made until the end of USAID

support. The specific nature and extent of award administration varies from award to

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award in the normal exercise of Federal responsibilities. It ranges from reviewing and

analyzing performance reports and performing site visits to specific elements of

substantial involvement by USAID under a cooperative agreement.

The Agency's role in administration is limited to measuring and evaluating the recipient's

progress and any appropriate involvement. The Agency and its representatives must

not control or try to control the recipient’s or any sub-recipient’s day-to-day management

of the program.

a. Administrative Duties. The AOR and the AO share in the oversight of an

assistance award. It is essential that they work as a team in order to administer

the grant or cooperative agreement effectively. While there is a clear division of

responsibility between the functions, AO and AOR functions are closely related

and cannot be performed in isolation from each other. Both the AO and AOR’s

actions must be limited to monitoring the recipient’s progress in achieving the

objectives of the program description and verifying that the activities being

funded by USAID conform to the terms and conditions of the award.

The AO provides oversight of the financial management aspects of the award

through reviews of reports, correspondence, site visits, or other appropriate

means. When necessary, the AO will request or arrange for special audits. The

AO is responsible for all award suspensions and terminations, except for

terminations based on national interest, which the Assistant Administrator has

authority over.

If program income is anticipated to be earned under the award, it should be

addressed in Section IV of the RFA or APS and documented in the award. As

part of an AOR’s financial management responsibilities, the AOR is responsible

for monitoring program income throughout the life of the award. (See 2 CFR

200.307 or, for non-U.S. organizations, see the provision “Program Income.”)

The AO should give a post-award orientation to the recipient and AOR to clarify

the roles and responsibilities of the USAID officials who will administer the award.

If the AO delegates specific authority to the AOR, the AO must notify the

recipient in writing of the delegation, either in the schedule of the award or a

letter. The AO must ensure that the award does not include administrative

approvals that are in conflict with the regulations and policies of 2 CFR 200 and 2

CFR 700, ADS 303maa, Standard Provisions for U.S. Nongovernmental

Organizations, and ADS 303mab, Standard Provisions for Non-U.S.

Nongovernmental Organizations. If the AOR becomes aware of any other

administrative requirements imposed on the recipient, the AOR must immediately

notify the AO.

The AO is the records custodian for all official communication that constitutes an

amendment of the award. The AOR keeps the AO informed of the recipient’s

performance. The AOR must ensure that the AO receives copies of all

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performance and financial status reports, as appropriate. The AOR reviews all

performance and financial reports for adequacy and responsiveness. When

reports are not on time, inadequate, or some other problem becomes apparent,

the AOR advises the AO to take the necessary action.

The AOR must ensure that the recipient submits reports or deliverables under

the award to the DEC. The types of documentation the recipient must submit are

found in ADS 540.3.2.5, Documentation Grantees Submit to the

Development Experience Clearinghouse (DEC). Documentation that is not

considered development experience material is described in ADS 540.3.2.6,

Documentation Agency Contractors Must Not Submit. ADS 540.3.2.11,

Where to Submit Development Experience Documentation, provides the Web

site and mailing address for submitting material. Additionally, the AOR must

ensure that recipients submit data to the Development Data Library in

accordance with ADS 579.

When an amendment to the award is necessary, the AOR must prepare the

necessary internal documentation to support the amendment and meet the

satisfaction of the AO.

b. Site Visits. Site visits are an important part of effective award administration

because they usually allow a more effective review of the project. Site visits

occur as needed and do not take place on a set schedule. Joint visits by the AO

and the AOR are encouraged. When the AO or AOR makes a site visit, the AO

or AOR must write a brief report highlighting the findings and file the report in the

official award file.

c. Terminations. AOs must notify the Suspending and Debarring Official (SDO)

and the Bureau for Management, Office of Acquisition and Assistance,

Compliance Division (M/OAA/C) in writing at least five (5) days prior to

proceeding with a termination based on failure to comply with the terms and

conditions of an award. The AO must provide the following information to the

SDO at compliance@usaid.gov:

 Recipient’s name,

 DUNS No.,

 Address,

 Award number,

 Period of Performance

 AO and AOR names,

 Period of Performance,

 Award value, and

 Reasons for termination.

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303.3.19 Unauthorized Commitments and Expenditures Requiring Prior

Approvals

Effective Date: 06/01/2006

a. Unauthorized Commitments. When a USAID official, who does not have the

authority to do so, acts in a way that leads a recipient or potential recipient acting

in good faith to believe that USAID has committed to make a specific award;

change the amount of an existing award; or, revise an existing award budget,

program description, or any of the terms and conditions of the award, the official

has made an unauthorized commitment. It is against U.S. Government and

USAID policy to enter into unauthorized commitments.

When the AO believes that an unauthorized commitment should be ratified and

recommends payment, and the cognizant General Counsel or Resident Legal

Officer concurs with the recommendation, the AO submits an action

memorandum through the M/OAA/Evaluation Division to the Director, M/OAA, for

ratification. The memorandum must show:

 Evidence that the grant would otherwise have been proper, if made

by an appropriate AO;

 The AO reviewing the unauthorized commitment must determine

the cost to be reasonable;

 The provided program has furthered USAID’s objectives;

 The findings of facts essential to the situation, arranged

chronologically with cross-references to supporting enclosures;

 The nature of the unauthorized commitment and funds citation;

 Funds are available and was available at the time the unauthorized

commitment was made;

 The recommended disposition; and

 A written statement from the person who made the unauthorized

commitment. This statement must detail how the mistake occurred,

what training the individual has received from the AO on proper

procedures since the incident, and what steps will be taken to

prevent future unauthorized commitments.

Only the Director, M/OAA, has the authority to ratify unauthorized commitments.

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b. Expenditures Requiring Prior Approval. Recipients must comply with prior

approval requirements that are established in the agreement. Failure to comply

with prior approval requirements generally causes USAID to deem the costs

unallowable.

When it is in the best interest of the Federal Government and funds are available,

the AO may review the facts and circumstances of the expenditure made without

prior approval and approve the expense if the:

 Expenditures must be otherwise allocable, allowable, and

reasonable.

 AO could have approved the expenditures at the time that they

were made.

 AO has the authority to approve the same type of expenditure at

the time of the request for approval.

 Approval promotes efficient implementation of USAID’s program, or

 Facts and circumstances of the expenditure show that the recipient

was not grossly negligent and did not intend to circumvent USAID

requirements.

The recipient must submit a written request to the AO addressing the criteria set

out above and the AO must make a written determination.

303.3.20 Controlling Language

Effective Date: 06/01/2006

It is USAID policy that English is the official language of all award documents because a

translation may not convey the full meaning of the original. If an award or any

supporting documents are provided in both English and a foreign language, each

document must state that the English language version is the controlling version.

Source and Nationality Rules

(1) 22 CFR 228 “Procurement of Commodities and Services Financed by

USAID Federal Program Funds” is the regulation that governs the source

and nationality of goods and services procured with USAID funds. This

regulation applies to USAID-financed goods and services procured by a

recipient and sub-recipients (see the provision entitled “USAID Eligibility

Rules for Goods and Services” in the Standard Provision for U.S.

Nongovernmental Organizations and Standard Provisions for Non-U.S.

Nongovernmental Organizations). 22 CFR 228 provides those

circumstances to which Source and Nationality rules do not apply.

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(2) 22 CFR 228 does not apply to the selection and award of subawards as

defined at 2 CFR 200.92.

303.3.21 Subawards

Effective Date: 12/26/2014

a. Subawards to PIOs and Partner Government Entities

If appropriate, a recipient may enter into a subaward with a Public International

Organization (PIO), and in exceptional circumstances with a partner government

entity (also known as a partner government implementing entity as defined in

ADS 220).

Subawards that provide funds (excluding ”in-kind” grants, technical assistance or

other activities provided to or on behalf of the partner government entities) to

partner government entities for activities to be implemented by the entity must

meet the conditions, requirements, and approvals outlined in this section. The

requirements in this section do not apply to subawards to a partner government

entity solely for “in-kind” contributions, technical assistance, or other activities

provided by the recipient to or on behalf of the partner government entity.

Prior to an AO approving a subaward that provides funds (excluding “in-kind”

grants, technical assistance and other activities provided to or on behalf of the

partner government entity) to a partner government entity for activities to be

implemented by that entity, the AO must verify that these types of subawards

have been approved either in:

(1) The Project Appraisal Document (PAD) (or PAD amendment) (ADS 201); or

(2) A Determination and Finding (D&F), as outlined below.

(a) If the Operating Unit (OU) has not addressed subawards to partner

government entities in the PAD (or PAD Amendment), the OU must

prepare a D&F that documents:

(i) How a subaward to a partner government entity is consistent with

the decisions and results under the Public Financial Management

Risk Assessment Framework (PFMRAF), if any (see ADS 220);

(ii) How the subaward will contribute to sustainability other than in

cases where immediate development results outweigh

sustainability goals;

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(iii) That there are no alternative means to achieve the foreign

assistance purpose other than through subawards to partner

government entities; and

(iv) That any partner government subawardee financial risks identified

by the recipient will be mitigated or addressed in the subaward.

(b) The D&F must be prepared by the OU and cleared by the RLO/GC,

AO, and M/CFO/Mission Controller. The D&F must be approved by

the Mission Director for subawards under Mission executed awards,

and by the cognizant Pillar Bureau Assistant Administrator, in

consultation with the relevant Regional AAs, for subawards under

USAID/Washington executed awards. The OU must provide a copy of

the signed D&F to the AO to be included in the award file.

monitoring, reporting, and oversight requirements in the recipient’s

award. This is not subject to deviation. The subaward must also

include the appropriate flow-down requirements from the prime award.

(d) After 07/28/2019 in addition to the clearances above, all D&Fs must be

approved by the Bureau AA and the AA for Management. It is USAID

policy to increase its direct assistance to partner governments to

achieve sustainable development results. No prime award may

contain subawards that provide funds to partner government entities

unless a D&F as specified paragraph b.(2) above is approved by the

cognizant Bureau AA (in consultation with relevant Pillar or Regional

AAs, as applicable) and the AA for Management, prior to subaward

approval by the AO. Before any subsequent subawards to partner

government entities are made, the D&F must include a statement of

the actions the OU will take to increase direct assistance to partner

governments.

b. Applicable Standard Provisions

A U.S. recipient providing a sub-award to a non-U.S. organization must use the

Standard Provisions for a Non-U.S. Non-Governmental Organization. A non-

U.S. recipient providing an award to a U.S. organization must use the Standard

Provisions for U.S. Non-Governmental Organizations. For subawards to PIOs,

the recipient must use the Standard Provisions for Cost-Type Awards to PIOs in

ADS 308, Awards to Public International Organizations.

For sub-awards to partner government entities, in addition to the requirements in

Section 303.3.21.a.(2)(c) above, the prime awardee must flow down the

appropriate terms and conditions to meet the requirements of the prime award.

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For additional information on standard terms and conditions relating to

Government-to-Government agreements, see the Additional Help Documents

found in ADS Chapters 220. When questions arise concerning the appropriate

provisions for subawards, the AO must consult with the cognizant attorney in GC

or the cognizant RLO. An approved deviation (303.3.3) is required before the

recipient may deviate from the terms and conditions of its award from USAID;

however no deviation will be authorized from the audit, monitoring, reporting, and

oversight mandatory and applicable standard provisions and requirements in

303.3.21a(2)(c).

c. Defense Base Act Insurance

The Defense Base Act does not apply to grants and cooperative agreements nor

to subawards under these instruments. Although the Defense Base Act rate

does not apply to grants and cooperative agreements, recipients who desire to

purchase DBA coverage may negotiate rates at the discretion of the insurance

carrier (see ADS 302sap, Guidelines for DBA Coverage for Direct and Host

Country Contracts).

Recipients must require contractors who are awarded procurement contracts

under the assistance instruments to obtain Defense Base Act coverage for their

employees performing services overseas.

303.3.22 The Role of the Agreement Officer in the Debt Collection Process

Effective Date: 08/22/2013

The Federal Claims Collection Act of 1966 and the Debt Collection Improvement

Act of 1996 (DCIA) mandates that agencies comply with standard, Government-wide

debt collection procedures and centralize the Government-wide collection of delinquent

debt. USAID’s policy on debt collection can be found in 22 CFR 213, Claims Collection;

2 CFR 200.345, Collection of Amounts Due; and ADS 625, Accounts Receivable and

Debt Collection (see ADS 303san, Agreement Officer’s Role in Debt Collection for

additional guidance.

The AO is responsible for determining if a debt is owed by the recipient and the amount

of the debt owed. Preferably, the amount of the debt will be determined by a negotiated

settlement between the AO and the recipient. However, if the parties do not agree on

the amount, the AO must unilaterally determine the amount of the debt (see 625.3.4.1

Claims Originating Under Acquisition and Assistance Instruments and 625.3.4.2

Claims Originating Under Financial Audit.) If the recipient disagrees with the AO’s

determination, see 303.3.23 below.

The AO must promptly issue a demand letter for payment of such debt. A proper

written notice ensures the Agency has a legally enforceable debt. The initial demand

letter must include the appropriate information and due process procedures contained in

22 CFR 213.9 – Written Notice. Even if the debt is or will be the subject of a bilateral

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amendment or the recipient has agreed to repay the debt, the AO must issue a demand

letter as soon as the AO has determined that an actual debt is due. The AO must send

a copy of each demand letter to the cognizant billing office immediately upon issuance,

and request acknowledgement of receipt. Collection of the debt is the responsibility of

the billing office (Mission Controller or M/CFO/WFS).

If the recipient requests approval of installment payments, see 22 CFR 213.19

Installment Payments for relevant regulations and procedures.

303.3.23 Disputes and Appeals

Effective Date: 06/18/2012

2 CFR 700.15 and the ADS 303mab, Standard Provision for Non-U.S.

Nongovernmental Organizations “Disputes and Appeals” establishes that the AO

decides any dispute between the recipient as defined in 2 CFR 200.86, and USAID

arising under the assistance award. The AO’s decision is final unless the recipient

appeals the decision as outlined below.

303.3.23.1 Disputes

Effective Date: 06/01/2006

The AO must give the recipient a written final decision within sixty (60) calendar days of

receiving notice from the recipient of a dispute. If the AO is not able to reach a final

decision within that time, the AO must notify the recipient that he or she requires more

time to consider the dispute. The AO must place a copy of the final decision in the

award files.

303.3.23.2 Appeals

Effective Date: 07/22/2015

If the recipient disagrees with the AO’s final decision, the recipient may appeal the AO’s

decision to the Assistant Administrator, Bureau for Management, or designee. The

appeal must be in writing and must be postmarked within thirty (30) calendar days of

receipt of the AO’s final decision. The recipient must include all relevant and material

evidence to support its position and must provide a copy of the appeal to the AO. If

USAID has issued a Bill of Collection, the Bill of Collection may be suspended in

accordance with ADS 625 pending resolution of the appeal.

Immediately upon receiving an appeal, the Assistant Administrator, Bureau for

Management, or designee, and the AO must forward the appeal to the Bureau for

Management, Office of Acquisition and Assistance, Compliance Division (M/OAA/C) at

compliance@usaid.gov. M/OAA/C will:

 Consult with other divisions within M/OAA as needed before preparing a

recommendation for the deciding official; and

 Coordinate a review by GC/A&A and/or GC/LE.

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Within sixty (60) calendar days of receiving the appeal, M/OAA/C must notify the

recipient of the status (i.e., denied, approved, or more time is needed).

303.3.24 Simplified Grants

Effective Date: 12/26/2014

A deviation is not required from the requirements of 2 CFR 200 or the policies of this

chapter in order to use a Simplified Grant for small awards on a cost reimbursement

basis as described below. For Fixed Amount Awards, see 303.3.25. Except as

discussed in paragraphs a through h below, a grant using the Simplified Grant Format

generally does not include any of the Standard Provisions used for USAID grants.

USAID may authorize advance payments if the conditions for advance payments in

ADS 636, Program Funded Advances and 2 CFR 200 Subpart D apply.

The AO may award a Simplified Grant, if the grant meets all of the following conditions:

a. The assistance instrument is a grant, not a cooperative agreement.

b. The total grant amount does not exceed the simplified acquisition threshold.

c. The recipient will not purchase any goods or services, except as authorized

pursuant to 22 CFR 228 or ADS 310, Source and Nationality Requirements

for Procurement of Commodities and Services Financed by USAID or any

applicable waivers, and the recipient will not purchase any single item that has a

useful life over one year and a cost of $5,000 or more.

d. The recipient has signed pre-award certifications as required in 303.3.8.

e. The grant requires the recipient to allow USAID access to its records for up to

three years after the end date of the grant, and the recipient will refund USAID for

any funds it receives for any costs that did not meet the terms and conditions of

the grant.

f. The Simplified Grant Format is only authorized when all costs under the

award are direct costs. This format is not authorized for awards that

include indirect costs.

g. The AO may modify the Simplified Grant Format as long as the agreement

includes the applicable Standard Provision for related costs in the small grant

award, and if the support of international travel or the purchase of equipment is

necessary for performance of the grant.

h. The grant must be included in any audit required by 2 CFR 200 or ADS 591.3.2.

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303.3.25 Fixed Amount Awards to Non-Governmental Organizations

Effective Date: 12/26/2014

A fixed amount award is a type of assistance award where USAID provides a specific

level of support and where payment is not based upon the actual costs incurred by the

recipient. This type of Federal award reduces some of the administrative burden and

record-keeping requirements for both the non-Federal entity and USAID. Accountability

is based primarily on performance and results.

A Fixed Amount Award is appropriate for supporting projects with very specific and

defined elements, when the AO is confident that a reasonable estimate of the actual

cost of the overall effort can be established, and USAID can define accomplishment of

the purpose of the grant through defined milestones.

It is essential that 1) the program scope is specific and 2) adequate cost, historical, or

pricing data is available to establish a fixed amount award with assurance that the

recipient will realize no increment above the actual cost.

Because payments under Fixed Amount Awards are based on the achievement of

milestones, the structure of the payments is very important. USAID pays the recipient a

set amount when it accomplishes a milestone. The AO may follow the guidance in ADS

303saj, Fixed Amount Awards to Non-Governmental Organizations for structuring

the grant milestones to provide the recipient with the necessary financial liquidity for the

performance of the activity.

USAID may also authorize advance payments when recipients meet the conditions for

advance payments in ADS 636, 2 CFR 200 Subpart D, and if providing liquidity through

an initial financing milestone is not sufficient to meet implementation requirements.

The procedures in this ADS section, ADS 303saj, Fixed Amount Awards to Non-

Governmental Organizations, and ADS 303mak, Fixed Amount Award Entity

Eligibility Checklist must be used in lieu of those specified in 303.3.9. The criteria in

the section of the Checklist for pre-award financial review for advances, adequately

address the conditions for advances in ADS 636 and 2 CFR 200 Subpart D.

Grant closeout is accomplished by the AOR’s acceptance of the final milestone and

approval of payment.

a. Factors for Determining the Use of a Fixed Amount Award

In order for an AO to use a Fixed Amount Award, the following conditions apply:

(1) The award complies with the conditions for fixed amounts awards found at 2

CFR Part 200.201.

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(2) The assistance instrument is a grant, not a cooperative agreement.

(3) The AO, technical office, and M/CFO (Washington) or Controller (overseas)

have complied with the requirements of ADS 303mak, Fixed Amount Award

Entity Eligibility Checklist, including ensuring that the recipient has signed

pre-award certifications, as specified in ADS 303.3.8.

(4) The prospective recipient, technical office, and AO must be able to identify

and quantify programmatic accomplishments or results in establishing grant

milestones. For further guidance, see ADS 303saj, Fixed Amount Awards

to Non-Governmental Organizations.

(5) The AO, with the advice of the technical office and M/CFO (Washington) or

the Controller (overseas) , must assess the risk factors that could prevent the

proposed recipient from completing the activity or require a substantial

change in the milestones. The operating unit must not use the Fixed Amount

Award mechanism if there is an unacceptably high risk of failure or substantial

changes in the milestones are expected as the recipient implements its

program. The AO and technical office must document the risk assessment

and may use the guidance in ADS 303saj, Fixed Amount Awards to Non-

Governmental Organizations.

(6) Adequate cost information must be available to allow the AO to determine

and negotiate the fixed amount of the grant and payment structure. The fixed

amount should include all reasonable costs, as determined by the AO. For

further guidance concerning the cost information required and payment

structuring, see ADS 303saj, Fixed Amount Awards to Non-Governmental

Organizations and ADS 303mak, Fixed Amount Award Entity Eligibility

Checklist.

(7) The AO must document the rationale for selecting the Fixed Amount Award

mechanism.

(8) The duration of the Fixed Amount Award must not exceed three years.

(9) The Fixed Amount Award must not include the purchase of any real property.

b. Required Provisions for a Fixed Amount Awards

(1) The AO must ensure that the Fixed Amount Award includes all of the

Mandatory Provisions from ADS 303mat, Standard Provisions for Fixed

Amount Awards to Nongovernmental Organizations. In addition, the AO

must ensure the Fixed Amount Award includes ONLY the applicable

“Required, As Applicable” provisions from ADS 303mat, Standard

Provisions for Fixed Amount Awards to Nongovernmental

Organizations.

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(2) The AO must use the ADS 303sal, Sample Fixed Amount Award as a

template.

c. Amending Milestones

The AO may amend milestones during the period of the grant, if the original milestones

are no longer feasible or appropriate due to circumstances beyond the control of the

recipient, and if the amended milestones are compatible with and satisfy the original

purpose of the grant. The AO may terminate the grant if the AO concludes that multiple

or substantial amendments indicate that continuing the grant is no longer in the best

interests of the Agency. For additional guidance, see ADS 303saj, Fixed Amount

Awards to Non-Governmental Organizations.

d. Disposition of Equipment or Property

Recipients must not procure real property under a Fixed Amount Award. Real property

means land, including land improvements, structures and appurtenances thereto, but

excludes movable machinery and equipment. Personal property is any tangible or

intangible property other than real property.

Depending on the activities funded and milestones established by the Fixed Amount

Award, a recipient may procure equipment or personal property in order to accomplish a

milestone. The distinction between whether purchase of the equipment or personal

property is a milestone or is one possible means by which the recipient may accomplish

a milestone is important for certain aspects of the award. Unless a milestone is itself

the purchase of the equipment or personal property, milestones must not list equipment

or personal property a recipient may potentially purchase to accomplish the milestone,

but the costs of such equipment or personal property may be included in the budget

from which milestone payment amounts are estimated and negotiated. Regardless of

whether the equipment or personal property is listed in or as a milestone, the Fixed

Amount Award must state that title to the equipment or personal property vests in the

recipient upon acquisition with the condition that the recipient must use the equipment

or personal property for the grant as long as it is needed for such.

If a milestone under a Fixed Amount Award requires the recipient to procure equipment

or personal property, and such requirement is specifically provided in the milestone,

then:

(1) The grant must require that the purchase be in accordance with 22 CFR

228, ADS 310, ADS 312, Eligibility of Commodities and any applicable

waivers,

(2) The “Required, As Applicable” provisions from the ADS 303mat,

Mandatory Standard Provisions for Fixed Amount Awards to

Nongovernmental Organizations applicable to the purchase of the

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equipment or personal property must be included in the Fixed Amount

Award, and

(3) The grant must include disposition instructions for the equipment or

property. For additional guidance, see ADS 303saj, Fixed Amount

Awards to Non-Governmental Organizations.

303.3.26 Leader with Associate Awards

Effective Date: 12/26/2014

A Leader with Associate (LWA) Award involves the issuance of a Leader Award that

covers a specified worldwide activity. The Leader Award includes language that allows

a Mission or other office to make one or more separate awards, called Associate

Awards, to the Leader Award recipient without using restricted eligibility. The Associate

Award must be within the terms and scope of the program description of the Leader

Award and support a distinct local or regional activity.

Leader with Associate Awards must not be confused with Indefinite Delivery Indefinite

Quantity (IDIQ) Contracts that are used in acquisition or any of the procedures used

under an IDIQ. As examples, a Leader Award cannot be made without a program

description and a budget with sufficient funds to carry out the program description in the

Leader Award, and Associate Awards are not made using fair opportunity procedures.

a. Justification for Use of a Leader with Associate Instrument

(1) The Choice of Instrument Memo provided by the OU in accordance with

ADS 304 must describe in detail why the proposed LWA is necessary and

why a non-LWA grant or cooperative agreement will not achieve the

program objectives. The justification in the memo must include one or

more of the following:

 The specific, quantifiable, and demonstrable economies of scale or

responsive timing to be achieved through use of the LWA,

 Whether any specific, identified needs in non-presence countries

can best be addressed through an LWA, and

 How the LWA will achieve the Agency goal of centralizing

knowledge or expertise or demonstrating global technical

leadership in a specific technical area.

(2) If the LWA has a combined ceiling (Leader and all Associate Awards) of

$75 million or more, the Choice of Instrument Memo’s justification must

also:

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 Specify what specialized technical skills are required to plan and

manage the activities that are not available in the field, or

 Demonstrate that an anticipated and frequent need to respond to

compelling urgent programmatic requirements cannot be foreseen

in terms of location, timing, or magnitude and can best be met

through the use of a LWA.

(3) If “buy-ins” (i.e. mission funding into the Leader or centrally managed

Associate Awards) will be permitted under the LWA, the Choice of

Instrument Memo must propose a ceiling on the size of individual “buy-

ins.” This ceiling must also be included in the RFA and the award. The

memo must also include an analysis of why buy-ins are more

advantageous to the Agency than individual Associate Awards. “Buy-ins”

may be justified by a discussion of one or more of the following conditions:

 The highly technical or specialized nature of the program and the

lack of field staff with the required expertise to plan or manage such

activities, or

 An anticipated frequent need to respond to truly urgent

programmatic requirements that cannot be foreseen in terms of

location, timing, or magnitude, or

 Needs in non-presence countries

For any proposed individual buy-in ceiling in excess of $1 million, the

Activity Manager must provide compelling justification in the Choice of

Instrument Memo documenting why an individual associate award is not

appropriate.

b. Competition of Leader Award

The AO must issue a Request for Applications (RFA) for every Leader with

Associate Award following the procedures in 303.3.5.2. AOs must not award

LWAs based on Annual Program Statements, unsolicited applications or with

restricted eligibility, unless a deviation is authorized in accordance with the

requirements of 303.3.4. The RFA must state that the competition covers both

the initial Leader Award and all subsequent Associate Awards, and specify a

ceiling on the total amount of funding for all Associate Awards.

c. Total Amount and Funding

The AO must specify the Total Estimated Amount of the Leader Award and the

ceiling on the cumulative total amount of funding for Associate Awards in the

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RFA and the Leader Award. These amounts must not be exceeded without a

justification to restrict eligibility, in accordance with 303.3.6.5a. Each Associate

Award must specify the total award amount for that instrument. Likewise, the

RFA must state that there is no guarantee regarding the number or amount of

Associate Awards.

The RFA and resulting Leader Award must state whether missions will be

permitted to provide funding through “buy-ins” to the Leader Award or centrally-

managed Associate Awards. If “buy-ins” will be permitted, a ceiling on individual

“buy-ins” under the Leader or Associate Awards must be established within the

terms of the Leader Award.

Leader and Associate Awards are separately obligated instruments. An

obligation under the Leader Award is not transferable to Associate Awards (nor

transferable from the Associate Awards to the Leader Award or other Associate

Awards) without a deobligation and reobligation of funds in accordance with ADS

621.

d. Pre-Award Requirements for Associate Awards

Once an AO selects a recipient pursuant to an RFA for a Leader with Associate

Award, the eligibility for any Associate Award issued within the terms and

conditions of the Leader Award will be limited to the recipient of the Leader

Award. The AO’s risk determination of the recipient for the Leader Award applies

to Associate Awards. However, before awarding an Associate Award, the AO

must verify that the applicant does not:

 Have active exclusions in SAM (www.sam.gov);

 Appear on the Specially Designated Nationals (SDN) and Blocked

Persons List maintained by the U.S. Treasury for the Office of Foreign

Assets Control, sometimes referred to as the “OFAC List” (online at:

http://www.treasury.gov/resource-center/sanctions/SDN-

List/Pages/default.aspx); and

 Appear on the United Nations Security designation list (online at:

http://www.un.org/sc/committees/1267/aq_sanctions_list.shtml).

The AO for the Associate Award must not require additional documentation

concerning the recipient’s financial or other management systems, unless there

is reason to believe that the recipient does not meet the criteria in 303.3.9.

The AO must obtain the required certifications (see 303.3.8) prior to the

execution of the Leader Award. Before the AO may award an Associate Award,

the recipient must affirm that those certifications remain valid or provide new

certifications (see ADS 303mad, Affirmation of Certifications).

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USAID may issue more than one Leader Award for a program under the RFA if

the Bureau determines that it is appropriate. However, USAID must not compete

Associate Awards among the different recipients of the Leader Awards.

The AO has the discretion to issue one or more Associate Awards to a Leader

Award recipient or to issue more than one Associate Award under different

Leader Awards for a program. When a Leader Award recipient works with a

consortium or subrecipients, any Associate Awards under the Leader Award

must be issued to the Leader Award recipient, not to any of the consortium or

subrecipient members. The recipient of the Leader Award may make subawards

to the consortium members as necessary for the program. The Leader Award

must include a requirement for the recipient to provide a programmatic report,

either semi-annually or annually, to the AOR that summarizes activities

undertaken, progress made/results achieved, trends, or problems under both the

Leader Award and all Associate Awards.

e. Length of Award

The period of performance for a Leader Award must not exceed five years. AOs

may extend a Leader Award for up to a cumulative period of ten years for

purposes of the Leader Award activities using a justification to restrict eligibility

based on 303.3.6.5a. AOs may issue Associate Awards at any time during the

period of performance of the Leader Award. The period of performance for an

Associate Award must not exceed five years. AOs may extend individual

Associate Awards for a cumulative period of up to ten years using a justification

to restrict eligibility based on 303.3.6.5a, but not more than five years beyond the

expiration of the Leader Award. AOs must not extend a Leader or Associate

Award more than five years into the future at any given time.

USAID does not fund activities under the Leader Award after its expiration date.

After completion of the activities under the Leader Award, if funds are available,

the AOR may request that the recipient provides a report on lessons learned.

f. Procedures for Issuing an Associate Award

After the AO awards the Leader Award, the AO sends a copy of the award to all

Missions, along with any necessary guidance or instructions regarding issuance

of Associate Awards. AOs may issue Associate Awards for activities within the

programmatic scope of the Leader Award. Leader Awards are also posted on

the USAID Business and Acquisition and Assistance Intranet site

(https://pages.usaid.gov/M/OAA/assistance-resources).

Before requesting the AO to issue an Associate Award, the Activity Manager

must consult with the AOR of the Leader Award. The AOR of the Leader Award

must concur that the program description for an Associate Award is within the

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program description and does not extend beyond the scope of the program area,

project goal, project purpose, sub-purposes, outputs and overall results

framework of the Leader Award. After receiving the AOR’s concurrence, either

the AO, or the Activity Manager with the AO’s consent, may request the Leader

Award recipient to provide an application. The request includes a background

statement; a brief program description outlining the area of activity; host country

involvement; funding; any period limitation; and, description of why the activity

falls under the Leader Award. The RFA for an Associate Award must request a

response to the program description and an associated budget.

An SF-424 is not required. The Activity Manager must review the application and

provide comments to the AO responsible for the Associate Award. The AO

issuing the Associate Award must ensure that the Associate Award is within the

scope of the Leader Award when reviewing the recipient’s proposed costs and

negotiating the final award. The AO has the decision authority whether or not to

award the Associate Award.

The AO may execute an Associate Award as a grant or a cooperative

agreement, independent of whether the Leader Award is a grant or cooperative

agreement. If an Associate cooperative agreement is selected, the AO must

specify the terms of any substantial involvement in the award. Such substantial

involvement must be consistent with the requirements of 303.3.11 and the

program description for the particular Associate Award. The AO must use the

standard grant or cooperative agreement award format for the Associate Award.

The AO must include appropriate language in the schedule of the Associate

Award, requiring the recipient to provide copies of all program and financial

reports to the AOR of the Associate Award with copies of all programmatic

reports to the AOR of the Leader Award. The schedule of the Associate Award

must also specify:

 The Authorized Geographic Code for procurement, if it is different

from the Leader Award;

 Any cost sharing requirements; and

 Any additional standard provisions, such as Title to and Care of Property

(Cooperating Country),that may not be included in the Leader Award, but

are necessary to the Associate Award.

g. Amendments to Associate Awards

Amendments to associate awards may be restricted to the recipient of the

Associate Award, only if the amendment does not extend beyond the scope of

the program area, project goal, project purpose, sub-purposes, outputs and

overall results framework, period of performance, total amount and other terms

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and conditions of the Leader Award. If the amendment to the associate award

extends beyond the areas listed in the preceding sentence then the amendment

must comply with the requirements found in ADS 303.3.6.5.

Any proposed buy-in under a Leader or centrally-managed Associate Award

must have a detailed description of the work to be done, its timing, and estimated

cost/budget. All documentation must be submitted to the AO and the relevant

Bureau by July 1 for the buy-in obligation to be completed by the end of the fiscal

year.

h. File Documentation

The AO’s file documentation for Associate Awards must include

 A copy of the Activity Manager’s consultation with the AOR for the Leader

Award;

 The request for the recipient’s application;

 The recipient's application with affirmation of certifications found in 303.3.8;

 A memorandum of negotiation, including a cost review; and

 A copy of the final Associate Award (a copy must be sent to the AOR for the

Leader Award) and a copy of the Leader Award.

303.3.27 Public-Private Partnerships

Effective Date: 07/22/2015

Public-Private Partnership awards including Global Development Alliance (GDA)

awards, private sector engagements and other Global Development Lab awards provide

resource leverage (see below) from sources outside USAID. The Activity Manager

should consult closely with the Office of Innovation and Development Alliances, Global

Partnerships Division (IDEA/PS), the Assistance Executive, the Office of the General

Counsel or RLO when developing the program description for these types of awards.

Additional guidance may be found at the GDA Web site (available on the USAID

internal website only).

Leveraging represents all of the non-USAID resources (excluding cost sharing) that are

expected to be applied to a program. Leveraging is limited to Public-Private Partnership

awards. Leveraging includes resources that third-parties bring to the program without

necessarily providing them to the recipient of the USAID assistance award. These

parties may include the host government, private foundations, businesses, or

individuals. The recipient is not responsible for meeting the leveraging

amounts/resources and leveraging is not subject to audit.

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Public-Private Partnerships awards may include cost sharing. If the award includes cost

sharing, the recipient must meet the cost-sharing amount and requirements, and the

cost-sharing is subject to audit.

For more information regarding leveraging, please refer to the GDA home page and

USAID Global Partnerships (available on the USAID internal website only).

303.3.28 Participation of Faith-Based and Community Organizations

Effective Date: 06/30/2016

a. In accordance with Executive Order 13279, Equal Protection for the Laws for

Faith-Based and Community Organizations, Executive Order 13559,

Fundamental Principles and Policymaking Criteria for Partnerships With

Faith-Based and Other Neighborhood Organizations, and 22 CFR 205,

Participation by Religious Organizations in USAID Programs, the following

principles guide USAID on the participation of faith-based and community

organizations in USAID-funded programs:

(1) The Federal Government must distribute Federal financial assistance for

social service programs in the most effective and efficient manner possible

(see Executive Order 13559).

(2) All eligible organizations, including faith-based and other community

organizations, must be able to apply on an equal footing for Federal

financial assistance used to support social service programs and

participate in any program for which they are eligible.

(a) USAID, recipients, and subawardees who administer USAID

funded programs, must not discriminate for or against an

organization on the basis of the organization's religious character or

affiliation [see 22 CFR 205.1(a)]. USAID must not disqualify

religious organizations from participating in USAID's programs

because such organizations are motivated or influenced by

religious faith to provide social services (see 22 CFR 205.1(f)).

Decisions about awards of USAID financial assistance must be free

from political interference or even the appearance of such

interference and must be made on the basis of merit, not on the

basis of the religious affiliation of a recipient organization, or lack

thereof (see 22 CFR 205.1(j)). Additionally, when limiting eligibility

using the local eligibility exception (303.3.6.5), USAID must not limit

eligibility solely to either faith-based or secular organizations.

(b) All organizations, whether religious or secular, that participate in

USAID programs, including through an award or subaward, must

carry out eligible activities in accordance with all program

requirements and other applicable requirements governing the

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conduct of USAID-funded activities, including those prohibiting the

use of direct financial assistance from USAID to engage in explicitly

religious activities, including activities that involve overt religious

content such as worship, religious instruction, prayer, or

proselytization (see 22 CFR 205.1(f)).

Federal assistance, to sacrifice their independence, autonomy,

expression, or religious character. A faith-based organization that

applies for or participates in USAID-funded programs or services,

including through an award or subaward, may retain its

independence and may continue to carry out its mission, including

the definition, development, practice, and expression of its religious

beliefs, provided that it does not use direct financial assistance from

USAID to support or engage in any explicitly religious activities.

Among other things, faith-based organizations may use their

facilities to provide social services supported by USAID, without

removing or altering religious art, icons, scriptures, or other

symbols from these facilities. In addition, a faith-based

organization may retain authority over its internal governance and it

may retain religious terms in its organization’s name, select its

board members on a religious basis, and include religious

references in its mission statements and other chartering or

governing documents (see 22 CFR 205.1(c)).

(d) Organizations that receive direct financial assistance under any

USAID program, including through an award or subaward, may not

engage in explicitly religious activities as part of the programs or

services funded by USAID. Explicitly religious activities must be

offered separately, in time or location, from the programs or

services funded with direct financial assistance from USAID, and

participation must be voluntary for beneficiaries of the programs or

services funded with such assistance [see 22 CFR 205.1(b)].

(e) USAID funds may not be used for activities that are not permitted

by Establishment Clause jurisprudence or otherwise by law [see 22

CFR 205.1(d)].

(f) An organization that participates in programs funded by financial

assistance from USAID, including through an award or subaward,

must not, in providing services, discriminate against a program

beneficiary or potential program beneficiary on the basis of religion

or religious belief, refusal to hold a religious belief, or a refusal to

attend or participate in a religious practice [see 22 CFR 205.1(e)].

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(g) A religious organization's exemption from the Federal prohibition

on employment discrimination on the basis of religion, set forth in

Sec. 702(a) of the Civil Rights Act of 1964, 42 U.S.C. 2000e–1, is

not forfeited when the organization receives financial assistance

from USAID [see 22 CFR 205.1(g)].

(h) Solicitations that require organizations to have nonprofit status will

specifically so indicate in the eligibility section of a solicitation [see

22 CFR 205.1(h)]. In USAID programs in which an applicant must

show that it is a nonprofit organization, other than programs which

are limited to registered Private and Voluntary Organizations, the

applicant may do so using any of the following:

 Proof that the Internal Revenue Service currently recognizes the

applicant as an organization to which contributions are tax

deductible under section 501(c)(3) of the Internal Revenue

Code;

 A statement from a state taxing body or the state secretary of

state certifying that the organization is a nonprofit organization

operating within the state; and no part of its net earnings lawfully

benefit any private shareholder or individual;

 A certified copy of the applicant's certificate of incorporation or

similar document that clearly establishes the nonprofit status of

the applicant; or

 Any item described in paragraphs (b)(1) through (3) of this

section if that item applies to a state or national parent

organization, together with a statement by the state or parent

organization that the applicant is a local nonprofit affiliate.

b. The Secretary of State may waive the requirements of this section in whole or in

part, on a case-by-case basis, where the Secretary determines that such waiver

is necessary to further the national security or foreign policy interests of the

United States [see 22 CFR 205.1(i)].

c. Clarification Regarding Proper Implementation and Use of Data

Executive Order 13559, Fundamental Principles and Policymaking Criteria

for Partnerships With Faith-Based and Other Neighborhood Organizations

and 22 CFR 205, Participation by Religious Organizations in USAID

Programs, call for equal opportunity for faith-based organizations. They do not

provide for set-asides or evaluation preferences for faith-based organizations,

and data collected is not to be used for purposes of funding decisions. The AO

must not:

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 Provide for set-asides, reservations, or evaluation preferences for faith

based organizations in NOFOs.

 Include participation of faith-based organizations as a specific

evaluation factor or requirement for award. It may, however, be

referred to as an example of one of the many types of organizations

whose participation could potentially enhance the quality and impact of

development assistance programs.

d. AOs must ensure that the Mandatory Standard Provision, “Equal Participation by

Faith-Based Organizations (June 2016),” is included in all solicitations and

awards (see 303.4.2).

303.3.29 Suspension and Debarment

Effective Date: 08/22/2013

In accordance with 2 CFR 780 and 2 CFR 180, the Suspending and Debarring Official

(SDO) may suspend or debar individuals and entities from participating in government-

funded grants, cooperative agreements and other assistance programs when such

action is in the public interest.

a. M/OAA/C, in consultation with GC/LE provides direct support and

recommendations to the SDO in all matters relating to recipient disclosures,

suspension, and debarment.

b. AOs must notify M/OAA/C in writing at compliance@usaid.gov when they

become aware of any of the causes of suspension or debarment, with regard to

recipients and subawardees, as specified in 2 CFR 780 and 2 CFR 180.

c. Upon receiving notification from the AO that a recipient may have engaged in

actions that could lead to suspension or debarment, M/OAA/C, in consultation

with GC/LE will:

 Consult with other offices within USAID as required to prepare a

recommendation for the SDO; and

 Coordinate suspension or debarment actions with the Interagency

Suspension and Debarment Committee (ISDC) and/or the Office of Inspector

General.

d. When, in accordance with 2 CFR 780 and 2 CFR 180, the SDO decides to

initiate a suspension and /or debarment action, M/OAA/C, in consultation with

GC/LE, will:

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 Issue a written notice of suspension or proposed debarment action to the

recipient and any affiliates involved; and

 Enter the recipient’s exclusion information into the System for Award

Management (SAM) at www.sam.gov.

303.3.30 Limitation on Construction under Assistance

Effective Date: 08/16/2013

The Agency’s infrastructure projects are increasingly a critical component of

development programs. However, the limited management oversight the Agency can

legally assert over recipients under assistance awards minimizes the Agency’s ability to

ensure that the design and construction activities are carried out properly. As such,

Operating Units and AOs must adhere to the Administrator-approved policy and

procedures that limit the use of assistance awards to accomplish construction activities

(ADS 303maw, USAID Implementation of Construction Activities).

Provision Limiting Construction Activities in Awards

AOs must include the Mandatory Standard Provision, “Limiting Construction Activities

(August 2013)” in all solicitations and awards. If the assistance award permits

construction activities based on the policy above (or as authorized by waiver), the AO

must insert the description and location(s) of the specific construction activities under

section (d) of the provision. If the award does not include construction activities, the AO

must insert “Construction is not eligible for reimbursement under this award” in section

(d) of the provision.

303.3.31 USAID Implementing Partner Notices (IPN) Portal for Assistance

Effective Date: 07/21/2014

a. The USAID Implementing Partner Notices Portal for Assistance (also referred to

as “IPN Portal”) streamlines USAID’s process of providing universal bilateral

amendments for awards to recipients for their signature. The IPN Portal is also

available to provide notices to USAID recipients who register with the IPN Portal.

The IPN Portal posts proposed universal bilateral amendments for USAID

awards, which can be accessed electronically by registered partners AOs and

A&A specialists. The IPN Portal for Assistance is located at

https://sites.google.com/site/usaidipnforassistance/.

b. When necessary, the IPN Portal Administrator, as designated by the Director,

M/OAA, will generate bilateral award amendments and notices, and post the

amendments/notices to the IPN Portal. Examples of such amendments include

required ADS 303 provision updates affecting all awards (or classes of awards to

be specified in the amendment). The Portal Administrator will provide advance

notice to AOs that an update is being prepared for posting in the IPN Portal.

This policy applies to all awards except:

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 Associate Awards under LWAs,

 Awards to PIOs and bilateral development partners, and

 Interagency agreements.

IPN Portal amendments must not change the:

 Amount of obligated funds,

 Total estimated award amount,

 Program Description, or

 Period of performance.

c. Proposed bilateral amendments provided through the IPN Portal are not effective

until the Recipient and the AO sign the amendment. Additional policy guidance

and specific instructions for registering with the IPN Portal can be found in ADS

303max, USAID Implementing Partner Notices (IPN) Portal. AOs and A&A

specialists are responsible for registering with the IPN Portal, processing the IPN

Portal amendments under their respective awards, and completing GLAAS

requirements in accordance with this policy.

d. AOs must insert the applicable provision “USAID Implementing Partner

Notices (IPN) Portal for Assistance (July 2014)” from ADS 303maa, Standard

Provisions for U.S. Nongovernmental Recipients or ADS 303mab, Standard

Provisions for Non-U.S. Nongovernmental Organizations, and ADS 303mat,

Standard Provisions for Fixed Amount Awards to Nongovernmental

Organizations in all solicitations and resulting awards.

303.3.32 Trafficking in Persons (TIP)

Effective Date: 04/08/2016

a. Requirements

The mandatory standard provision on trafficking in persons is included in ADS

303maa, Standard Provisions for U.S. Nongovernmental Organizations,

ADS 303mab, Standard Provisions for Non-U.S. Nongovernmental

Organizations, and ADS 303mat, Standard Provisions for Fixed Amount

Awards to NGOs. The provision ensures USAID compliance with various

legislative requirements intended to ensure that U.S. Government acquisition and

assistance actions are not tainted by trafficking in persons, such as the

Trafficking Victims Protection Act of 2000 and Section 1704(a) of the National

Defense Authorization Act for Fiscal Year 2013 (Pub. L. 112-239, enacted

January 2, 2013). The provision reflects the U.S. Government’s policy against

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human trafficking and lists specific trafficking in persons-related prohibitions and

requirements that are mandatory for both U.S. and non-U.S. recipients.

b. Certification Requirement and Compliance Plan

If the estimated value of services required to be performed under the award

outside of the United States exceeds $500,000, additional trafficking-related

requirements apply to the solicitation and award. Specifically, the Agreement

Officer (AO) must require the applicant/recipient to certify that it has implemented

a compliance plan to prevent trafficking.

1. The AO must require the apparently successful applicant to submit the

certification “Certification Regarding to the Trafficking in Persons” before

the award is made. The certification is included in ADS 303mav,

Certifications, Assurances, Other Statements of the Recipient and

Solicitation Standard Provisions.

2. The mandatory standard provision on trafficking in persons further

requires the recipient to submit the certification annually during the

award’s period of performance.

3. Unless specifically requested by the AO, the recipient is not required to

submit to the AO, the trafficking compliance plan required in the TIP

standard provision.

c. Violations and Remedies

If an AO receives credible information from any source that the recipient,

subawardee, contractor; or any agent of the recipient, subawardee, or contractor,

is engaged in prohibited activities related to trafficking in persons (as defined by

the mandatory standard provision on trafficking in persons), the AO must

immediately notify both the Office of the Inspector General (OIG) and the

Suspending and Debarring Official (SDO). The AO must also consult with the

Labor Compliance Advisor at lca@usaid.gov. The AO may also direct the

recipient to take specific steps to abate an alleged violation or enforce the

requirements of the recipient’s compliance plan. If necessary, the OIG will

conduct an investigation of the alleged offense.

Upon receipt of an IG report that provides support for the allegations, M/OAA will

identify an agency official who will be responsible for expeditiously conducting an

administrative proceeding, allowing the recipient an opportunity to respond to the

report. After the proceeding, the authorized agency official will make a final

determination as to whether the allegations are substantiated and will notify the

AO and the Director, M/OAA. The AO, in consultation with the Director, M/OAA,

will consider taking one or more of the following remedial actions:

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1. Requiring the recipient to remove an employee from the performance of

work under the award;

2. Requiring the recipient to terminate a contract or a subaward;

3. Suspending payments under the award until such a time as the recipient

of the award has taken appropriate remedial action;

4. Terminating the award, in accordance with 2 CFR 200 and 2 CFR 700 for

U.S. Organizations, or the Award Termination and Suspension Standard

Provision for Non-U.S. Organizations; and/or

5. Referring the matter to the SDO.

The AO and the Director, M/OAA may consider whether the recipient had a

compliance plan in place, and whether the recipient was in compliance with that

plan at the time of the violation, as a mitigating factor in determining which

remedies, if any, should apply. The AO and Director, M/OAA may consider the

failure of the recipient to stop an alleged violation or enforce the requirements of

the compliance plan when directed by the AO as an aggravating factor in

determining which remedies, if any, should apply.

Whether or not the official authorized to conduct the administrative proceeding is

the Suspending and Debarring Official, the Suspending and Debarring Official

has the authority, at any time before or after the final determination as to whether

the allegations are substantiated, to use the suspension and debarment

procedures to suspend, propose for debarment, or debar the recipient, if

appropriate, considering the factors above.

AOs must enter all substantiated allegations of trafficking in persons-related

violations into the Federal Awardee Performance and Integrity Information

System (FAPIIS). Immediately upon entering the information into FAPIIS, the AO

must also transmit copies of all relevant documents to the Office of Acquisition

and Assistance, Compliance Division at compliance@usaid.gov, including a

brief explanation of the actions taken and the date the information was posted in

FAPIIS.

303.4 MANDATORY REFERENCES

303.4.1 External Mandatory References

Effective Date: 12/26/2014

a. 2 CFR 180, OMB Guidelines to Agencies on Governmentwide Debarment

and Suspension (Nonprocurement)

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b. 2 CFR 200, Uniform Administrative Requirements, Cost Principles and

Audit Requirements for Federal Awards

c. 2 CFR 700, USAID Uniform Administrative Requirements, Cost Principles,

and Audit Requirements for Federal Awards

d. 2 CFR 780, Non Procurement Debarment and Suspension

e. 5 CFR 1320, Controlling Paperwork Burdens on the Public

f. 22 CFR 203, Registration of Private Voluntary Organizations (PVOs)

g. 22 CFR 205, Participation by Religious Organizations in USAID Programs

h. 22 CFR 216, Environmental Procedures

i. 22 CFR 227, New Restrictions on Lobbying

j. 22 CFR 228, Procurement of Commodities and Services Financed by USAID

Federal Program Funds

k. 31 USC 6301- 6308, Federal Grant and Cooperative Agreement Act

l. System for Award Management

m. Executive Order 13279, Equal Protection of the Laws for Faith-Based and

Community Organizations

n. Executive Order 13280, Responsibilities of the Department of Agriculture

and the Agency for International Development With Respect to Faith-Based

and Community Initiatives.

o. Executive Order 13317, Volunteers for Prosperity

p. Foreign Assistance Act of 1961, as amended

q. Paperwork Reduction Act

r. Specially Designated Nationals (SDN) and Blocked Persons List

303.4.2 Internal Mandatory References

Effective Date: 04/03/2017

a. Acquisition and Assistance Policy Bulletins (AAPDs)/Contract Information

Bulletins (CIBs)

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b. ADS 103, Delegations of Authority

c. ADS 201, Program Cycle Operational Policy

d. ADS 204, Environmental Procedures

e. ADS 206, Prohibition of Assistance to Drug Traffickers

f. ADS 260, Geographic Codes

g. ADS 300, Agency Acquisition and Assistance (A&A) Planning

h. ADS 302man, USAID Guidance on Congressional Award Notification

System

i. ADS 302mba, Mission or Bureau Action Memorandum for the Administrator

j. ADS 303maa, Standard Provisions for U.S. Nongovernmental Organizations

k. ADS 303mab, Standard Provisions for Non-U.S. Nongovernmental

Organizations

l. ADS 303mad, Affirmation of Certifications

m. ADS 303mae, USAID Policy Guidance on Posting Grant Opportunities and

Application Packages on Grants.Gov

n. ADS 303mai, Model Letters and Procedures for Designating the Agreement

Officer’s Representative (AOR) for Cooperative Agreements and Grants

o. ADS 303mak, Fixed Amount Award Entity Eligibility Checklist

p. ADS 303mal, Justification to Restrict Eligibility (JRE) Template

q. ADS 303mat, Standard Provisions for Fixed Amount Awards to

Nongovernmental Organizations

r. ADS 303mav, Certifications, Assurances, Other Statements of the Recipient

and Solicitation Standard Provisions

s. ADS 303maw, USAID Implementation of Construction Activities

t. ADS 303max, USAID Implementing Partner Notices (IPN) Portal

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u. ADS 303maz, USAID Policy Guidance on Exemptions to Assistance

Reporting Under the Federal Funding Accountability and Transparency Act

of 2006 (FFATA)

v. ADS 304, Choice of Implementation Instrument

w. ADS 312, Eligibility of Commodities

x. ADS 318, Intellectual Property Rights

y. ADS 320, Branding and Marking

z. ADS 350maa, Guidance on Funding Foreign Government Delegations to

International Conferences

aa. ADS 458, Training and Career/Professional Development

ab. ADS 540, USAID Development Experience Information and Reference

Services

ac. ADS 591, Financial Audits of USAID Contractors, Grantees, and Host

Government Entities

ad. ADS 625, Administrative Accounts Receivable

ae. A.I.D. Partnership in International Development with Private and Voluntary

Organizations (Policy Paper)

af. Guide to USAID’s Assistance Application Process and to Submitting

Unsolicited Assistance Applications

ag. Procurement and Assistance Procedures for the HIV/AIDS and Infectious

Disease Initiatives (available on the USAID internal website only)

ah. Simplified Grant Format

303.4.3 Mandatory Forms

Effective Date: 02/15/2012

a. SF-270, Request for Advance or Reimbursement

b. SF-271, Outlay Report and Request for Reimbursement for Construction

Programs

c. SF-424, Application for Federal Assistance

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d. SF-424a, Budget Information, Non-Construction Programs

e. SF-424b, Assurances, Non-Construction Programs

f. SF-425, Federal Financial Report

g. SF-425a, Federal Financial Report Attachment

303.5 ADDITIONAL HELP

Effective Date: 07/22/2015

a. ADS 302sat, Guidance on Closeout Procedures for A&A Awards

b. ADS 303sac, Sample Action Memorandum for Deviation

c. ADS 303sae, Operational Security – General Information

d. ADS 303sai, Profit Under USAID Assistance Instruments

e. ADS 303saj, Fixed Amount Awards to Non-Governmental Organizations

f. ADS 303sal, Fixed Amount Award Template

g. ADS 303sam, Non-U.S. Organization Pre-Award Survey Guidelines and

Support

h. ADS 303san, Agreement Officer’s Role in Debt Collection

i. Cross Reference Index

j. Policy Paper, Women in Development

k. Procurement Executive Bulletins (PEBs) (Only available to USAID

employees.)

l. Procurement Reform Documentation Requirements for Non-Profit

Recipients (self-certification)

303.6 DEFINITIONS

Effective Date: 12/26/2014

Agreement Officer (see also Contracting Officer)

A person with the authority to (1) enter into, administer, terminate, and close out

assistance agreements, and (2) make related determinations and findings on behalf of

USAID. An Agreement Officer may only act within the scope of a duly authorized

warrant or other valid delegation of authority. The term "Agreement Officer" includes

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persons warranted as "Grant Officers." It also includes certain authorized

representatives of the Agreement Officer acting within the limits of their authority as

delegated by the Agreement Officer. (Chapter 303 and 304)

assistance

Financial support to accomplish a public purpose, including grants, cooperative

agreements and other agreements in the form of money, or property in lieu of money,

by the Federal Government to an eligible recipient. The term does not include technical

assistance, the provision of services instead of money; other assistance in the form of

loans, loan guarantees, interest subsidies, or insurance; direct payments of any kind to

individuals; or, contracts which are required to be entered into and administered under

procurement laws and regulations. (Chapter 303 and 304)

Assistance Executive

The Director, Office of Acquisition and Assistance (M/OAA/OD), or designee in

USAID/W who

 Acts as the Agency's coordinator for all assistance matters (that is, financial

assistance that provides support to a non-governmental entity to accomplish a

public purpose), which may require OMB approval (such as deviations to OMB

regulations);

 Makes the final determination of the choice of implementation instrument when

there is disagreement between the contracting activity and the Development

Objective team. (Chapter 303 and 304)

award

Financial assistance that provides support or stimulation to accomplish a public

purpose. Awards include grants and cooperative agreements. (Chapter 303)

Non-U.S. Organization

A foreign organization as defined in 2 CFR 200.47. (Chapter 303)

recipient

An organization that receives direct financial assistance (a grant or cooperative

agreement) to carry out an assistance program on behalf of USAID, in accordance with

the terms and conditions of the award and all applicable laws and regulations.

(Chapters 303, 304, 305, 591)

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ADS Chapter 303 Grants And Cooperative Agreements To Non Governmental Organizations 85

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