Awarding Results-Oriented Assistance Instruments

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Results      Define      Plan      Choose      Write      Award      Admin      Monitoring     Core Values     Sources     FAQ     Glossary     USAID ADS Updated 10/10/02     Once USAID has decided to fund a specific activity through an assistance instrument, and has prepared a results-oriented program description for the activity, the pre-award phase of the assistance process begins. This phase, which culminates in execution of a grant or cooperative agreement, centers on the selection of a Development Partner. It is a crucial stage that lays the groundwork for effective program implementation and the successful achievement of results. Competition Competitive award of grants and cooperative agreements is encouraged but not required by statute. (Federal Grant and Cooperative Agreement Act of 1977, particularly 31 U.S.C. 6301.) However, USAID policy on competition in assistance awards (codified in ADS Chapter 303 (PDF 542KB)) is as follows: Competition is required by USAID policy unless an exception is authorized. (ADS 303.5.5a.) USAID generally seeks to ensure maximum competition by inviting applications from all eligible entities. (ADS 303.5.5a) Exceptions to Competition Although competition is often beneficial, its appropriateness in an individual case depends on the facts and circumstances applicable to that case. See GAO, II Principles of Federal Appropriations Law, 2nd Ed. (1992), pp. 10-15 - 10-17; Dembling and Mason, Essentials of Grant Law Practice (ALI ABA, 1991), pp. 27-28; Feinglass, "Issue Paper on Competition," in OMB, Managing Federal Assistance in the 1980's (1980). Accordingly, whether or not to compete a particular grant or cooperative agreement is a matter to be determined on a case-by-case basis. USAID policy recognizes the seven categorical exceptions to competition. These are contained in ADS 303.5.5d For the detailed procedures required to invoke each of these exceptions, see ADS E303.5.5d. The exceptions are fully authorized and available for use. However, their use must be justified by the existence of special circumstances meeting the criteria specified. Given USAID's basic policy of requiring competition, potential Development Partners who seek to invoke an exception--for example, in connection with an unsolicited application--must keep in mind that the burden will be on them to support their request. Key Steps in the Competitive Award Process Broadly speaking, there are four key pre-award procedures, or steps, for competitively awarded assistance instruments: STEP 1: Public notice and solicitation of applications by USAID. STEP 2: Preparation and submission of applications by potential Development Partners. STEP 3: Evaluation of applications and selection of a prospective awardee by USAID. STEP 4: USAID pre-award responsibility determination. Each of these steps is similar to the comparable pre-award procedures for competed procurements. STEP 1: Public notice and solicitation of applications by USAID. Like all federal agencies, USAID is required by regulation (a requirement imposed by the Office of Management and Budget) to notify the public of its intended funding priorities for discretionary grant programs. See 22 CFR 226.11(b). In connection with competitive assistance programs, USAID generally complies with this requirement and secures competition through the following two methods of "advertising" or soliciting applications: (A) An Annual Program Statement ("APS"), when "USAID intends to support a variety of creative approaches by the non-governmental community to develop their own methodologies in assessing and/or implementing activities which are in keeping with strategic objectives." See ADS 303.5.4a. (B) A Request for Applications ("RFA"), used when USAID "intends to support a specific type of activity or methodology in keeping with strategic objectives." See ADS 303.5.4b. Solicitations are published on the Internet (except for those specifically designed for local organizations, which are to be advertised locally instead). See ADS E303.5.4. STEP 2: Preparation and Submission of Applications. Except for programs that exclusively involve local organizations, USAID now requires utilization of the standard government-wide application form, "Application for Federal Assistance" (SF-424). Other application forms that may be required are available at "Forms for USAID Solicitations" When preparing an application for submission to USAID pursuant to a competitive assistance award procedure, prospective Development Partners should exercise great care (just as they would in connection with a Request for Proposals in the procurement context) to: (A) follow the instructions contained in the APS or RFA, as applicable, (B) keep the stated evaluation or funding criteria in mind at all times, and (C) fully address all substantive areas the solicitation requires to be addressed. STEP 3: Evaluation of Applications and Selection of a Prospective Awardee. USAID is required to review and evaluate all applications received in response to an APS or RFA, as applicable, according to the evaluation criteria stated. At a minimum, these criteria include technical merit, cost effectiveness/cost realism, and past performance of the applicant. Whenever gender issues are incorporated in the activity, the evaluation criteria must include specific factors aimed at assessing the applicant's plans for addressing gender issues in the activity. See ADS 303.5.5b. Evaluation must be conducted on an impartial basis according to the detailed standards and procedures specified in ADS 303.5.5c and in the individual solicitation. The results of the evaluation must be recorded in writing. The record must include a comparison of each application against the specific evaluation criteria. The results can be expressed either as a score or a narrative; if a score used, a short explanation of the strengths and weaknesses of the application must be provided, as well. See ADS E303.5.5c. STEP 4: Pre-Award Responsibility Determination. The USAID Agreement Officer is required to conduct an evaluation of the proposed recipient prior to award. The purpose of the pre-award determination is to determine that the proposed recipient can effectively implement and properly administer the program in accordance with USAID and OMB established principles. Pre-award determinations are often done on an informal "desk survey" basis, but for first-time recipients and in certain other cases, USAID may decide to establish a team and perform a formal survey. The members of the team are specified in ADS E303.5.9a. USAID may require that an audit be performed in connection with a formal survey. The survey team issues a report based on their findings. The Agreement Officer uses this report to decide whether the proposed Development Partner is "responsible" in five respects. See ADS E303.5.9a2a-e. Related Links: USAID-PVO Partnership: Policy Guidance (PDF 91KB) Guide to USAID's Assistance Application Process (PDF 18KB) and to Submitting Unsolicited Assistance Applications Acquisition and Assistance Policy Directives: Contract Information Bulletins OMB Circulars Procurement Reform: (PDF 42KB) Documentation Requirements for Non-profit Recipients Mandatory Standard Provisions (PDF 112KB) for U.S. Nongovernmental Recipients Note to USAID Development Partners: Directives and updates for USAID rules and policy documents are also available by subscription from USAID's Office of Information Resources Management at http://www.dec.org/ads.cfm.

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