Impact of Legislative Changes on USAID Title II Efficiency and Beneficiaries
|Legislative Change||Amount of Annual Funding Affected by Efficiency Gains/Losses||Estimated Annual Efficiency Savings at 20 to 30 Percent||Estimated Annual Additional Beneficiaries*|
|2015 Budget: Allow up to 25 percent of Title II funding to be used for flexible cash-based emergency response awards||$350 million||$70 million to $105 million||2,000,000 (Emergency)|
|2014 Farm Bill: Increase in Section 202(e) authorization ceiling from 13 to 20 percent||$98 million||$20 million to $29 million||600,000 (Mainly Development)|
|Consolidated Appropriations Act, 2014: Increase Section 202(e) ceiling by $35 million||$35 million||$7 million to $11 million||200,000 (Mainly Development)|
|Bipartisan Budget Act of 2013: Eliminated cargo preference reimbursements to Title II on higher cost of using U.S.-flag carriers||$50 million||Loss of $50 million to $60 million||-1,400,000 (Emergency)|
*USAID is conservatively basing beneficiary estimates on the Title II average cost of $37 per beneficiary. These estimates acknowledge that actual costs and beneficiary totals will vary across countries and operations, recognizing that USAID may use cash and voucher resources to respond in areas that are inaccessible for Title II shipments and that timeliness, targeted use of supplementary foods, and other approaches that may not be the cheapest on a per ration basis can be instrumental in preventing a shock from deteriorating into a severe humanitarian crisis. Implementation experience to date largely substantiates these numbers.
Fiscal Year 2012 Local and Regional Procurement (LRP) Savings - Representative Sample 1
|Region||Country||Origin||Commodity Type||Metric Tons||Total Actual Commodity, Cost, Ocean and Inland Freight2||Equivalent Commodity, Ocean and Inland Cost to Respond with Title II3||Savings on Commodity and Transportation Costs|
|Asia and Near East||Afghanistan||Local||Wheat Flour||1,400||$654,388||$805,368||18.75%|
|Central Africa||DRC||Local||Fortified Maize Meal||1,455||$796,900||$1,628,145||51.05%|
|East Africa||Kenya||Local, Uganda||Maize||20,214||$9,074,712||$10,512,204||13.67%|
|West Africa||Chad||South Africa||Maize||1,462||$1,116,383||$1,238,022||9.83%|
1. Sample includes new awards issued in fiscal year 2012 that have fully completed implementation and for which all final reporting requirements have been met.
Ready to Use Supplementary foods were not available through Title II in fiscal year 2012 and therefore were omitted from the analysis.
2. From required LRP grant reporting by partners on actual procurement and shipping costs.
3. USAID analysts identified the most comparable commodity on the Title II commodity list. The analysts then pulled commodity and freight price data for the same fiscal quarter that the LRP award was made.
Last updated: March 19, 2014