Funding Instrument Type Cooperative Agreement

A grant is a legal instrument that is used when the primary objective is to transfer a value (i.e. money, property or services) to a recipient in order to fulfill a public support or stimulus objective authorized by federal law. Subsidies are appropriate if USAID cannot be expected to participate significantly. The agency`s policy defines significant participation, with USAID significantly involved in the management of a cooperation agreement to help the recipient achieve the goals of the agreement. USAID policy identifies four broad areas in which participation is essential: if the AO finds that there will be no meaningful participation in the management of an aid program by USAID, it determines what type of grant would be most appropriate for the recipient`s activity and capabilities. The distinction between subsidies and cooperation agreements concerns the existence or absence of substantial participation. In research activities, significant involvement is likely when a federal collaborator assists, directs, coordinates or actively participates in the project. This essential participation is most common, either through the management (1) of the allocation of resources between sub-projects, sites or institutions, or through active participation (2) in the conduct of research. Normal supervision and trust are not a significant interest. The Federal Grant and Cooperative Agreement Act of 1977 (P.L.

95-224, 31 USC 6301 and following) establishes the fundamental distinctions between purchase contracts, grants and cooperation contracts. While the federal agency remains involved in the delivery, the task should never be postponed so that it is carried out for the Agency. The FGCAA expressly prohibits federal authorities from using co-operative contracts to acquire real estate or services for direct use or use by the federal government. This distinction distinguishes cooperative contracts from “purchase contracts” or “acquisitions” related to FAR. This distinction is also essential to limit the protest actions made available to disappointed bidders for cooperation agreements. This guide focuses on the types of support instruments described in the Federal Grants and Cooperation Agreements Act (FGCAA), as well as the policy of the Federal Uniform Guidance for Assistance (2 CFR 200) and USAID Automated System Directives (ADS) 303. Based on the results of a risk assessment, the AO may authorize other types of Agency monitoring, limited in scope and tailored to support instruments. An FAA is a grant agreement under which USAID provides specific assistance and for which the payment is based on achieving milestones relative to the recipient`s actual cost.


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