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This page introduces the concept of assistance instruments, briefly describes
its two categories (grants and cooperative agreements), and contrasts it, in
broad-brush, with procurement contracts. USAID commonly uses two main types
of instruments to implement foreign assistance activities.
These types are:
- assistance instruments--a collective term for grants and cooperative agreements;
and
- procurement contracts.
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Assistance instruments are characterized by the creation of assistance
relationships between USAID and organizations or individuals (Recipients), pursuant
to which USAID transfers funds or other items of value to accomplish a public
purpose of support or stimulation authorized by federal statute.
Both grants and cooperative agreements reflect assistance relationships. The
difference between the two relates to the degree of involvement that USAID wishes
to have in the performance of the Recipient's program.
Procurement contracts, as opposed to assistance instruments, establish
a procurement relationship in which USAID buys something for the direct benefit
or use of the federal government.
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Sourcebook
Define
Instruments
