Grant and Contract Process

Step 1. "Develop Activity" (USAID Market Research)

Frequently USAID identifies an opportunity to enhance the delivery of foreign assistance and reaches out to industry to conduct market research. We call this the "develop activity" stage of the grant and contract process. An informative document concerning objectivity and avoidance of conflicts of interest can be found in this OMB memo. For more information see Agency policy in ADS chapters 302 and 303.

Step 2. "Forecast Opportunity"

Once the Agency has decided to pursue the awarding of a grant or contract, we inform the public through a "Business Forecast." These forecasts are available for Washington, D.C., and overseas and continually updated:

Points of contact are listed in the forecasts as well as solicitations once issued (FBO.gov for contracts, Grants.gov for grant assistance).
We encourage new organizations to join us in a variety of ways. If you wish to work with an existing USAID partner please see our Top 25 Partners List from the previous fiscal year. While the Agency does not sponsor any professional organization or group, the Professional Services Council, Inside NGO, and the Society for International Development, among others, may also be useful resources.

Step 3. "Publish Solicitation"

  • Requests for Application and Annual Program Statements (RFA and APS): Grants.gov is the authoritative "storefront" for most grants available from the U.S. government. An RFA is usually geared for a specific program (s) and open for a limited time. An APS is normally open for a year and is meant to encourage concept papers on a wider range of programs before the submission of a full application
  • Requests for Quotes or Proposals (RFQ/RFP): Similar to grants, all Federal contracts are announced on FBO.gov.
  • Ocean transportation and commodities goods: Partners in these industries may visit USAID Procurement Announcements for a listing of solicitations.
  • Consultant Opportunities: These are available at FBO.gov under Solicitation #SOL-OAA-11-000086.

Step 4. "Evaluate"

For USAID to evaluate an organizational proposal for a contract or a grant, the organization submitting the document must be registered in the Central Contract Registration database. Be sure to:

  • Follow instructions: If you don't, your submission may not be considered.
  • Build on lessons learned: We recommend that you consult the Development Experience Clearinghouse to prepare a substantive and knowledgeable submission.
  • Show recent and relevant customer references: Past performance information is a key factor for predicting successful performance, so your organization will want to ensure that they have relevant and recent past performance. If you are new to doing business with USAID or the federal government, your organization can still submit performance information that is not necessarily government work.
  • Explain how your cost is competitive: We are responsible to keep administrative costs low to maximize the amount of assistance that is used for actual program implementation. Cost proposals usually request a detailed narrative on how costs were developed.
  • Demonstrate financial soundness and organizational responsibility: USAID must make a responsibility determination based on financial soundness and organization. The main source of information that USAID is required to use is the Federal Awardee Performance and Integrity Information System FAPIIS. If a USAID Contracting or Agreement Officer cannot make a positive pre-award responsibility determination, they may undertake a formal selection survey involving a pre-award audit of your organization.

Other specialized aspects that USAID generally considers include, but not limited to:

  • Gender: Gender equality is universally recognized as core development objectives, fundamental for the realization of human rights, and key effective and sustainable development outcomes. Offerors/applicants will need to address gender in accordance with instructions provided. Please see ADS chapters 302 and 303 for further information.
  • Environment: Effective implementation of environmental impact assessment ensures that the development activities USAID undertakes are economically sustainable and protective of the world's environment. Offerors/applicants will need to address implementation and costs of addressing environmental concerns. Please see USAID Environmental Compliance
  • Branding/Marking: Programs under the Foreign Assistance Act must be identified by appropriate USAID branding and marking overseas (some security exceptions may apply). See the solicitation for further information and ADS 320
  • Subcontracting/Teaming: In many cases, USAID's development assistance activities require specialized skills from a multiple set of development partners. It can be rare for one organization to offer all of the professional skills, services, and knowledge base the Agency requires to reform education in a post-conflict country, for example. Therefore, teaming together for an award or subcontracting arrangements between organizations can be beneficial to the achievement of the overall development goals.

Organizations interested in doing business with USAID should understand that small business partnerships and local entity or organization partnerships are paramount in doing USAID work. USAID encourages organizations to partner with small business and local partners to the greatest extent possible. Please see links pertaining to small business and local partners.

USAID sets small business goals within subcontracting plans that contractors are expected to reach. Further, USAID evaluates contractor's past performance in reaching these goals for future awards. Please check the OSDBU site for a database listing of small businesses, Agency goals, and information.

Step 5. "Negotiate"

Your organization will be contacted by the Management Bureau/Office of Acquisitions & Assistance (M/OAA) Agreement or Contracting Officers if your proposal or application is being considered for an award. Agreement and Contracting Officers will be your organization's key interface in doing business with USAID. Agreement and Contracting Officers are staffed in Washington D.C. and world wide and are involved with all award stages and will negotiate and administer the award with your organization.

Your organization should always submit its best and final offer in the case that USAID awards without discussions or negotiations. It is critical for your organization to understand USAID policies before signing an award.
As a part of the negotiations, your organization will want to learn about our policies that will become a part of the grant or contract.

  • USAID executes all direct procurement in accordance with the FAR and the AIDAR. When it is necessary to implement timely changes prior to a formal amendment of Agency procurement regulations and policy, the Director, M/OAA, issues Acquisition & Assistance Policy Directives (AAPDs).
  • USAID awards assistance in accordance with 22 CFR 226 and ADS 303 guidance. When it is necessary to implement timely changes prior to a formal amendment of Agency procurement regulations and policy, the Director, M/OAA, issues Acquisition & Assistance Policy Directives (AAPDs)).

Step 6. "Award"

USAID utilizes various acquisition and assistance instruments to implement its activities. Contracts, grants, cooperative agreements and purchase orders are some of the instruments which are negotiated and signed worldwide by USAID. These instruments provide a variety of commodities and technical assistance to support the attainment of the agency's objectives. There are no restrictions regarding what type of organization (e.g., private voluntary organization, profit-making firm, or non-profit organization) may receive an acquisition or assistance award. The type of organization involved is not a criterion for determining the type of instrument. When the correct instrument is a contract, acquisition rules apply even if the implementing organization is a non-profit organization. Similarly, commercial organizations may receive grants. See ADS Chapter 304.
If you have a complaint, we want to know about it. Contact our Ombudsman.

Last updated: July 30, 2012