usaid economic security program grants under contract …

DO Number and Name: DO2 – Inclusive and sustainable economic growth

Activity Start and End Dates: April 17, 2019 – April 16, 2024

AOR/COR/Activity Manager Name & Office: David Tsiklauri, USAID/Georgia Economic

Growth

Implemented by: DAI Global

Subcontractors: Solimar, PMCG

Submission Date: June 17, 2019

USAID Economic Security Program

Grants Under Contract Manual

USAID Economic Security Program – Contract No. 72011419C00001

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LIST OF ABBREVIATIONS

ADS Automated Directives System

APS Annual Program Statement

AIDAR Agency for International Development Acquisition Regulations

BSP Business Service Providers

CFR Code of Federal Regulations

COP Chief of Party

DAI DAI Global, LLC

DAI/W DAI Washington

GF Grants Funds

EO Executive Order

The Program Economic Security Program

FAA Fixed Amount Award

FAR Federal Acquisition Regulations

FOM Field Operations Manual

GEC Grant Evaluation Committee

GIK Grant in Kind

GUC Grants under Contract

HCA Head of the Contracting Activity

IEE Initial Environmental Examination

IP Implementing Partner

IR Intermediate Result

LGU Local Government Unit

MEO Mission Environmental Officer

M&E Monitoring and Evaluation

NGO Non-Governmental Organization

OFAC Office of Foreign Assets Control

OMB Office of Management and Budget

RFA Request for Application

SGP Small Grants Program

SMEs Small and medium-sized enterprises

SO Strategic Objective

TAMIS Technical and Administrative Management Information System

CO Contracting Officer

COR Contracting Officer’s Representative USAID

USAID United States Agency for International Development

USD United States Dollar

USG United States Government


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TABLE OF CONTENTS

TABLE OF CONTENTS ............................................................................................................... 2

INTRODUCTION .......................................................................................................................... 3

FOM CHAPTER 12: GOVERNING POLICY ON MANAGEMENT AND

IMPLEMENTATION OF GRANTS ............................................................................................. 5

FOM PROCEDURE 12.1: SOLICITATION AND AWARD OF GRANTS .......................... 22

FOM PROCEDURE 12.2: GRANT ADMINISTRATION, MANAGEMENT, AND

REPORTING ................................................................................................................................. 29

PROCEDURE 12.3: CLOSING OUT GRANTS ....................................................................... 35


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INTRODUCTION

Purpose of the USAID Economic Security Program in Georgia Grants Under Contract

Manual

This Grants Under Contract (GUC) Manual of the USAID Economic Security Program (the Program)

comprises the policy and procedures governing the implementation of grants under contract. The

policies and procedures are adapted from DAI’s standard policies to the specific requirements of the

contract and the programmatic objectives of the activity, and they are in full compliance with all

required rules and regulations, including USAID ADS 303 and ADS 302. This manual defines grant

eligibility criteria and describes the procedures that will be used to manage the grants throughout the

grant cycle, including solicitation and evaluation of applications, disbursements, monitoring of results,

and closeout requirements.

Field Operations Manual and GUC Manual Access and Format

All DAI projects use a Lotus Notes database for all project policies, procedures, work instructions,

forms, and templates that cover all aspects of project operations, compliance, and technical execution.

This internal database is customized for the country and project during start-up and becomes the

project Field Operations Manual (FOM), and it includes chapters on the project mission and objectives,

project organization and roles and responsibilities, project compliance, office and equipment

administration, technical execution, project systems, project financial management, human resources

management, procurement and inventory management, travel and events logistics, project security

and safety, grant management, and infrastructure management.

The FOM has already been created, and the DAI Washington (DAI/W) team has begun work to

customize the manual for the Activity. This initial customization is projected to be completed by month

six of the Activity, but it will be updated on a regular (sometimes weekly) basis to reflect the evolution

of staffing, objectives, and changing USAID or DAI/corporate requirements. By housing the manual in

Lotus Notes, staff have immediate access to the most up-to-date version of each policy or procedure

or template and can also track the full revision history of each document and capture the timestamped

digital approval of the DAI staff at the Activity or corporate level authorized to modify a policy,

procedure, work instruction, form, or template. This system has served DAI and its projects very well

in the past, both as a powerful document during audits and for knowledge capture.

This GUC Manual, once finalized and approved, will be housed in the FOM. As a result, the format of

the GUC manual as presented here is organized in a way consistent with the structure of the FOM. It

consists of an overall grants policy and three related procedures:

• Policy 12: Governing Policy on Management and Implementation of Grants

• Procedure 12.1: Solicitation and Award of Grants

• Procedure 12.2: Grantee Management and Reporting

• Procedure 12.3: Closing Out Grants

For the purposes of this submission, some of the more granular elements of the manual (for example,

forms and work instructions) are omitted, as the goal of this manual submitted to USAID is to

demonstrate the policies and major procedures for implementing a compliance and effective grants

program. Therefore, this manual as presented in the following pages is effectively an excerpt from a

larger document, and therefore there will be references within this submission to ‘external’ elements,

such as the FOM chapter on procurement or internal DAI guidance (work instructions) on grant

implementation. The corresponding links will work for internal Program staff using the FOM system.

By presenting the Program’s GUC Manual in a manner that can be integrated with the rest of the

project’s policies and procedures instead of a stand-alone document, we ensure that this manual and

any modifications to it are maximally accessible to staff, that all changes are tracked and approved per


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DAI’s governing policies on project implementation, and most of all, that this document can be adapted

as necessary to the project’s evolving needs.

Grants Fund

The USAID Economic Security Program has four components. Under the first component, the

Program will provide technical assistance and cost-share grants to strengthen market linkages and

cooperation among clusters of firms and other value chain participants and improve support services

intended to enhance growth and productivity across targeted value chains in targeted sectors. Under

the second component, the Program will provide cost-share grants and enterprise-level technical

assistance to MSMEs that improve productivity, sales, quality and develop new products and services.

Under the third component, the Program will provide technical assistance and cost share grants to

facilitate industry-led workforce development, including professional, management, and vocational skill

development. The total value of the cost-share grants fund that supports the first three program

components is $4 million.

Under the fourth component, the Program will create and operate a $1.5 million Partnership Development Fund (PDF) and provide technical assistance to build promising public-private partnerships (PPPs) and develop Global Development Alliances (GDAs) that leverage public and private resources within targeted sectors. The Program will co-finance the most promising, high-impact partnership activities to demonstrate their viability and benefits to public, private and non-private stakeholders. The PDF will allow co-funding with the private sector resource partner, with at least a 1:1 match.

Types of potential grant activities complemented by technical assistance may include, but are not

limited to:

Component 1: Strengthen cooperation in targets sectors

• Support the development of a tourism alliance and other sector associations by

strengthening association governance, facilitating the development of private sector-led certifications, especially those that are internationally recognized and contribute to improved human safety and environmental safeguards, and building capacity to advocate for sector development.

• Facilitate public-private dialogue among sector stakeholders to jointly identify policy and regulatory constraints to the development of targeted sectors and propose concrete legislative and regulatory actions to mitigate these constraints, as well as identify areas for collaboration to improve sector competitiveness.

• Increase and strengthen market linkages by designing initiatives to help groups of firms participate in business-to-business meetings including trade missions and fairs, develop joint promotion and branding initiatives, and source locally by consolidating purchases and sharing logistics for primary inputs.

• Support key sector stakeholders to jointly identify and prioritize investments that promote the development of targeted sectors and to access funding for these projects, including through GOG financing sources and international financial institutions.

• Increase access to finance by working with financial institutions to deepen understanding of the market potential and financing opportunities for value chains in targeted sectors.

Component 2: Support MSMEs to improve productivity, sales, quality and develop new products and services

• Improve firm-level operational capacities by supporting the development of business, financial, and marketing plans and enhancing logistics, operations, procurement, and other management capacities.


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• Increase productivity, productive capacity, and product quality by supporting the upgrade and expansion of production facilities and access to new and improved production technologies

• Improve ability to meet international production standards and receive internationally-recognized certifications, including environmental and other eco-friendly certifications.

• Facilitate increased access to new domestic buyers, international markets, and financing opportunities for further growth and expansion.

Component 3: Industry-led workforce development

• Design initiatives that increase communications and strengthen linkages between industry, government, and educational institutions to address skills mismatches and contribute solutions for demand-driven education.

• Support businesses to create on-the-job learning opportunities and develop incentives that tie trainings and certifications to internships, apprenticeships, and other forms of preferential consideration for employment opportunities.

• Develop programs that train specialists in high demand in targeted sectors. • Improve and upgrade service quality and safety standards for various education service

providers to internationally accepted practices, standards, and certifications. • Support graduates of workforce development programs to start their own businesses

and/or gain internships and employment through job fairs and similar events that link graduates with potential employers.

• Design sustainable long-term workforce development platforms, such as physical spaces/hubs, that are jointly financed and managed by sector associations and universities/training providers.

Component 4: Building public-private partnerships

• Investments in new and/or existing facilities that builds the productive quality and capacity of complementary value chain actors -- such as primary producers from which processors source inputs -- through trainings, certification programs, and other services, as well investments in new and/or existing value adding processing enterprises.

• Investments in technology, marketing, supply chain, logistics, infrastructure, and other initiatives that benefit firms throughout the value chain in targeted sectors.

• Investments designed to enhance workforce skills in targeted sectors, including partnerships with leading private sector firms, educational institutions, GOG, sector associations, and others, that leverage knowledge and resources, in ways that align employers’ needs with skills delivered by training and education providers.

• Investments in small businesses in targeted sectors that demonstrate the capacity to drive innovation and quality improvements and serve as models for other actors in the sector, but only if the benefits can be demonstrably spread to the wider MSME population.

FOM CHAPTER 12: GOVERNING POLICY ON MANAGEMENT

AND IMPLEMENTATION OF GRANTS

1. PURPOSE AND SCOPE

• 1.1. The purpose of this governing policy is to provide a comprehensive statement of DAI’s contractual, financial and administrative management policies for implementing a grants program and to describe the system and documentation put in place to implement these policies.

• 1.2. This section of the manual pertains to the actual implementation of the grant program with specific guidance on how the process works.


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2. ROLES AND RESPONSIBILITIES

• 2.1. Under the leadership of the Chief of Party (COP), the Technical Staff are responsible for the definition of the grants program to meet the Program goals and objectives as stated in the contract and the workplan, complying with the following procedures, and ensuring that all steps (contractual, financial and procurement) meet DAI’s established practices, and monitors and reporting on the grantee’s technical performance in close collaboration with the Grants Staff and Monitoring and Evaluation (M&E) Staff.

• 2.2. The COP is responsible for ensuring overall compliance to this policy and that DAI field staff are trained on this policy and supporting procedures and approving grants within his/her threshold (listed below), signing all grants that have been approved, and escalating issues to the DAI/W Office of Contracts and USAID as appropriate.

• 2.3. The Grants Director is responsible for ensuring the overall compliance of the Grants Fund, coordinating closely with technical teams to understand the pipeline of grants to be developed or solicited, monitoring grants at a programmatic level, training and supervising the Grants Staff in terms of administering and documenting the retention of grants, participating as a non-voting member of the Evaluation Committee, tracking and monitoring grant budget commitments, and working closely with the COP, Technical Teams, and M&E teams to analyze and report on the grant program as a means of ensuring that the grants are effective, sustainable, cost-effective, and contribute to the Program results.

• 2.4. The Grants Director and Grants Staff are responsible for administratively ensuring compliance with all procedures, maintaining all documentation when awarding and monitoring grants, facilitating the grants-making process from solicitation to award through closeout, and monitoring and tracking individual grant progress, payments, and closeouts.

• 2.5. The DAI/W Office of Contracts and Grants is responsible for approving all templates, the Grants Manual as a deliverable, and this section, providing guidance to the field staff and approving and signing grants within their threshold (listed below).

• 2.6. The Management Systems Team (MST) is responsible for customizing the Technical and Administrative Management Information System (TAMIS) grants module to meet the implementation needs of the Program.

• 2.7. The Environmental Compliance STTA (EC) is responsible for screening grants for their potential impact on environment and human health. This screening should be documented and attached to each grant application. Prior to initiating activities that have the potential to result in significant adverse environmental, health, and safety impact, the EC will prepare an ERC/EMMP for each activity involving impacts to water, land, air, and human health resulting from support to businesses and industry and define specific mitigation and monitoring measures. The EC will submit ERC/EMMP to the Mission Environmental Officer (MEO) and COR for review. The MEO will then submit to the Bureau Environmental Officer (BEO) for review and approval. If a grants activity is found to pose significant adverse environmental effects that have not been identified and addressed in the IEE EMMP, a new EMMP shall be developed to include environmental safeguards for such effects.

• 2.8. DAI shall ensure that grantees have the capability to implement the relevant requirements of the Initial Environmental Examination (IEE) DCN: 2019-GEO-002. DAI also shall assure that grantees integrate implementation of IEE conditions, where applicable, into their own project workplans and budgets and report on their implementation as an element of grant performance reporting. The EC shall, as and if appropriate, provide training to grantees in their environmental compliance responsibilities and in environmentally sound design and management of their activities.

3. OBJECTIVES AND POLICIES

Grant Objectives and Approach


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• 3.1. Grants shall be designed to contribute to achieving overall program results, which is to accelerate the growth of Georgian sectors outside of agriculture that show strong potential to create jobs, to increase incomes, to increase micro, small, and medium enterprise (MSME) revenues, and to support diversification to more productive economic activities, including the tourism sector and up to three additional sectors.

• 3.2. All grants shall be fully consistent with the Program’s contract and workplan. The Program shall ensure adequate coordination with implementing partners and other donor-funded interventions to avoid duplication of effort and maximize potential effectiveness

• 3.3. The aggregate amount of grant program under the Economic Security Program allocated under all three components must be $4,000,000 USD. The maximum grant size must not exceed $100,000 per recipient with the majority of the grants being less than $70,000 per grant.

• 3.4. Components one, two and three include a cost-share grants program. The purpose of the grants with the cost share element is to facilitate investments in business expansions and/or sector growth that would not have otherwise happened. The intended purpose is not to use grants to displace investments that likely would have otherwise taken place without program support or to support firms that have received significant donor support in the past.

• 3.5. Requirements and parameters for the implementation of the cost-share grants program include:

o 3.5.1. Grants provided to MSMEs must not exceed 40 percent of the total new

estimated cash investment required for a new business start-up or the expansion of

an existing business. Loans may be used to meet matching requirements; however, in-

kind contributions will not be considered.

o 3.5.2. Grants provided to non-profit entities, including cooperatives and associations,

must not exceed 70 percent of the total new estimated cash investment required to

improve and/or expand operations. Loans and in-kind contributions may be used to

meet matching requirements for these non-profit entities.

o 3.5.3. Grants provided to finance training and educational improvements and new

offerings must not exceed 70 percent of the total new estimated cash investment

required for the improvement or new offering. Loans and in-kind contributions may

be used to meet matching requirements. Priority must be given to grantees who

secure third-party private sector contributions to meet the matching requirements. • 3.6. DAI must work with all grant recipients to develop a series of training

opportunities for their suppliers and clients, as applicable. These trainings must be designed to strengthen both business and technical skills and modern production techniques.

• 3.7. Entities receiving grants must agree to employ at least one intern on at least a 50 percent part-time basis.

Grant Outreach

• 3.8. To make such organizations aware of grant opportunities, the Program will carry out a range of outreach activities targeted to reach potential recipients. Outreach may include issuance of Annual Program Statements (APS), periodic announcements or calls for concept papers for specific topical areas to be addressed within the grants program, specific solicitations in the form of Requests for Applications (RFA), and Grant Development Workshops/ Information Sessions.

• 3.9. Grant Development Workshops/ Information Sessions will be conducted in regions and Tbilisi for the targeted audience on identified value-chains. The flyers/brochures explaining the goals and objectives of DAI grants program will be produced and distributed among key stakeholders. The regional office will also assist in raising awareness in Western Georgia on the grants program. In addition, different open source media platforms will be used to share the information. DAI will encourage


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competition in the award of grants to identify and support the best possible activities to achieve program objectives.

• 3.10. Solicitations will be released in regions selected through consultation with USAID. All solicitations will be announced in a manner consistent with the Program. The Grants Team will work in close collaboration with Regional Team to determine the most appropriate way to solicit applications. This will depend on the following factors: nature and overall objective of the activity; required turnaround time; and whether or not it is reasonable to expect several applications.

Grant Policies

The Grants team will develop and execute a grants program, in accordance with the requirements for Grants Under Contract (GUCs), as provided in ADS 302.3.4.13, and will adhere to the following guidance: • 3.11. The grantee does not appear on the "List of Parties Excluded from Federal

Procurement and Non-Procurement Programs"; is not a “public international organization", with DAI or any of its directors, officers or employees.

o DAI must follow FAR 52.203-16, Preventing Personal Conflicts of Interest, in the selection and award of grants. DAI must scrupulously avoid any conflicts of interest (COIs) and should any COI arise, the staff shall escalate to his/her supervisor or to the DAI Ethics Team, who may inform USAID Contracting Officer as to the conflict and DAI's proposed solution for avoiding the conflict.

o DAI must acquire a signed Certification Regarding Terrorist Financing from the proposed grantee and DAI must confirm that per ADS 303.3.21the proposed grantee 1) does not have active exclusions in the System for Award Management (SAM) (www.sam.gov). 2) does not appear on the Specially Designated Nationals (SDN) and Blocked Persons List maintained by the U.S. Treasury for the Office of Foreign Assets Control, sometimes referred to as the “OFAC List” (online at: http: //www.treasury.gov/resource-center/sanctions/SDNList/Pages/default.aspx; and 3) is not listed in the United Nations Security designation list (online at:http://www.un.org/sc/committees/1267/aq_sanctions_list.shtml).

• 3.12. The grant follows all requirements of USAID's Automated Directives 303, as amended, on grantmaking and administration, except as modified by the contract or as approved through a specific written deviation granted by the Contracting Officer. Furthermore, DAI agrees that it shall be responsible, prior to awarding each grant, to ensure that any applicable regulatory, policy or procedural changes disseminated through Acquisition & Assistance Policy Directives or any similar notice available on the Agency’s public web site are included in all grants awarded after the effective date of such changes.

• 3.13. Each grant awarded by DAI on behalf of USAID under this program shall be in the following form: (1) a Grant Letter; (2) a Schedule; (3) a Program Description and Budget to be developed by the grantee and DAI; (4) Negotiation Memo; and (5)(i) the mandatory standard provisions and (ii) any applicable required-as-applicable standard provisions.

• 3.14. Grants will not be issued to U.S. organizations. • 3.15. USAID must be significantly involved in establishing the selection criteria and must

approve the recipients. COR may participate as an observer at the selection committee meetings and will provide final approval for each grant.

• 3.16. Requirements which apply to USAID-executed grants must also apply to grants executed by the DAI

• 3.17. DAI must include award language that notifies the grantee that USAID retains the right to terminate the grant activity (activities) unilaterally in extraordinary circumstances.

• 3.18. The Program is not authorized to execute cooperative agreements. • 3.19. The grant does not extend for any period beyond the estimated termination or

completion date of the prime contract with DAI.

http://www.sam.gov/


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• 3.20. DAI will act as custodian for USAID of all records relating to GUC. DAI will preserve all records with respect to its grant-making and administration hereunder as per its Records Retention Policy

• 3.21. DAI ensures through compliance with these regulations and local laws, that all costs are reasonable, allocable and allowable, and the best use of US government and taxpayer funds.

• 3.22. The following outlines the approval thresholds for grants under the Program. In all cases, the Chief of Party is the signatory on the grant agreement itself:

Grant Value Approval

$ 75,000-$100,000 COP Concurs

USAID COR Approval

CO Approval

Below $75,000 COP concurs

USAID COR approval

Cost amendments that increase the value of the

grant (not to exceed $100,000) and significant

changes to the program description or the

objectives of the grant.

COP concurs

USAID COR approves

USAID CO approves from

$75,000

Transfer funds among cost categories, listed in the

award budget, when the cumulative amount of such

transfers exceeds 10% of the total award amount

COP approves

Period of performance amendments with no cost

amendments

COP approves

Quantity changes (for example: Grants in Kind) of

goods or services that do not a) change the total

value of the grant and b) are consistent with the

program description

COP approves

• 3.23. USAID reserves the right to direct DAI to unilaterally terminate grants issued by

DAI for the Program. • 3.24. It is DAI policy to require all grants to be awarded competitively unless an

exception is justified for one of the following limited competition or sole source reasons below, further outlined and defined in ADS 303.3.6.5 and in Work Instruction 12.6, which includes completing a Justification to Restrict Eligibility (JRE). All justifications for restrictions to eligibility will be documented in writing in the grant memorandum of negotiation.

• 3.25. Upon signing an agreement with a recipient organization, the Program recognizes that it is entering into a partnership for the attainment of mutually acceptable goals of the organization, DAI, and USAID. The Program shall demonstrate respect for the recipient organization and ensure that the grant is administered in a fair and transparent manner.

• 3.26. The Program shall ensure that the most current mandatory provisions and certifications as per ADS 303 are included in all grant agreements.

• 3.27. The Program may include international travel or the purchase of equipment (whenever allowed by ADS 303) in grant budgets as long as the applicable standard provisions for those types of activities are attached to the grant award. International travel may only be included in the grant agreement after prior approval from USAID.

• 3.28. Field Grant Advances are billable to client only if tracked effectively in the monthly program snapshot and administered and reconciled in accordance with Work Instruction 12.15: Cash Disbursements for Grants.

ANizharadze

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• 3.29. In accordance with ADS 302.3.4.13, the Program will not provide cash grants to partner government entities. As for the in-kind grants and technical assistance, provided to or on behalf of the government entity, are allowable and consistent with the contract.

Cost Share

• 3.30. Grants shall be structured, timely, quantified, and, whenever possible, used in combination with and to leverage other financial resources and/or incentives, including cost-sharing with grantee funds and in-kind contributions, with the following provisions:

o 3.30.1. Cost share may be contributions from the beneficiaries or the grantee, in the

event they are different.

o 3.30.2. There is no set formula for determining percentage of cost sharing outside of

guidance included above from 3.5. When used, its application should be flexible, case-

specific, and used to support or contribute to the achievement of results set formula

in determining the level of cost share. Several considerations will be considered when

making cost share decisions. For example, it might be difficult for a recipient to meet

a cost share requirement during an activity with a short timeframe. A specific program

may be risky and discourages potential recipients from providing meaningful

contributions.

o 3.30.3. If the Program decides to require cost sharing in an award, it must state the

requirements in the announcement. Cost sharing cannot be used as a separate factor

during the merit review of applications, because excessive reliance on cost sharing

during the merit review may unfairly favor larger, better-funded organizations and may

discourage new market entrants or innovators. However, cost sharing may be

considered in the merit review only if the funding announcement specifically addresses

how it will be considered, e.g., assigning a certain number of additional points to

applicants who offer cost sharing, or using cost sharing to break ties among

applications with equivalent scores after evaluation against all other factors.

o 3.30.4. Cost share may be used to cover operational or administrative costs of an

organization (such as salaries, honoraria, consulting fees, stipends, travel and per diem,

data collection, analysis, communication and document preparation, workshops,

conference participation, equipment, and other costs as may be approved) or may be

the depreciated valuation of assets previously or currently obtained that directly

contribute to the success of the grant activity – such as land or buildings.

o 3.30.5. If program income is anticipated to be generated under the award, the Program

will determine prior to award how that income will be treated and specify in the

award. Program income may be treated as follows:

• Added to funds committed by the client and the recipient to the project or

program, and used to further eligible project or program objectives;

• Used to finance the non -U.S. Government share or Cost Share of the project

or program, in which case the amount of the Federal award remains the same;

and

• Deducted from the total project or program allowable cost in determining the

net allowable costs on which the federal share of costs is based

o 3.30.6. The Program may incentivize the grantee to repay a portion of the grant value,

with reported program income funds. Incentives for an appropriate repayment

amount could include additional future funding for expansion or scaling-up

applications, loan guarantees or credit references with financial institutions for future

investment, or investment promotion referrals. Repayment values, application, and

incentives will be determined on a case-by-case basis, as appropriate to the objectives

of the grantee, the ability for the grantee to earn program income, and/or the long-

term market-based incentives that may be appropriate. o 3.30.7. The Program or the grantee may attempt to attract additional private sector

or donor investment, via memorandums of understanding (MOU) or public private

partnerships (PPPs), to further leverage the investment funded by the grant.


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4. POLICY IMPLEMENTATION

• 4.1. The Grants Under Contract Manual must be approved by the USAID CO prior to award and implementation of any grants. The grant agreement templates shall be approved by DAI/W Office of Contracts and Grants prior to award and implementation of any grants.

• 4.2. The Program team shall use DAI’s Technical and Administrative Management Information System (TAMIS) for management of their grants program.

• 4.3. The staff and partners implementing the program shall maintain high standards of ethical conduct in the solicitation, negotiation, award, implementation, and oversight of the Program as per DAI Policy 8.0 DAI Code of Business Conduct and Ethics and FAR 52.203-16, Preventing Personal Conflicts of Interest.

Application Selection and Award

• 4.4. It is DAI policy to require all grants to be awarded competitively unless an exception is authorized. The competition requirement is met when an announcement is published according to Procedure 12.2. Recommendations for awards are made following an impartial review and evaluation of all applications.

• 4.5. It is DAI policy to ensure maximum competition by seeking applications from all eligible and qualified entities. Grants will be competed to the maximum extent practicable, but eligibility may be restricted in accordance with ADS 303.3.6.5 “Restrictions to Eligibility”.

o Competitive mechanisms: Competitive applications are those received in response to a solicitation published by DAI in the form of a Request for Applications (RFA) or Annual Program Statement (APS). Applications must follow the guidelines for submission set forth in the solicitation and must be evaluated solely according to the criteria published in the solicitation.

o ▪ Annual Program Statement (APS) - DAI will issue an APS to notify

potential applicants about funding opportunities to support creative approaches in support of program objectives. When used, the APS will be published at least once a year, either with an open-ended response time or a closing date of at least six months after issuance. In drafting each APS, DAI will follow the guidance provided in ADS 303.3.5.2. The APS will be drafted by the Grants team in coordination with the technical team and the Grants Director. A draft version of the APS will be sent to DAI/W Office of Contracts and Grants for review and final approval of COP. The COR will be significantly involved in establishing the selection criteria, as well as approving the selection of the grant recipient.

▪ Request for Applications (RFA) - DAI will determine appropriate selection criteria for RFAs and shall use a broad framework to guide the RFA selection criteria. The approval of these selection criteria below fulfills the requirement for substantial involvement by the COR in selection criteria, and any deviation will be approved by the COR before releasing an RFA. The sub-elements, definitions, and point value assigned to each criterion will be unique to each RFA. The selection criteria for each RFA will be approved by the Grants Director in consultation with the technical team and the COP. The specific selection criteria will be included in the Negotiation/Award Memo submitted for grant award approval. Below is the suggested framework of core and optional selection criteria that will be used for most grants. Specific elements and definitions of relevant criteria will be developed for each RFA.


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• 4.6. All grants shall require an application, concept paper, and will undergo a documented review and approval process. All grant solicitations and applications, whether funded or rejected, shall be retained on file.

• 4.7. All information received from applicants shall be considered proprietary and held in strict confidence by those individuals who review it to protect the integrity and privacy rights of the grant applicant. Selection Committee members will sign a Non-Disclosure Agreement (NDA) and COI certification.

• 4.8. In appropriate situations, DAI may invite a relevant partner or stakeholder to participate in reviewing concept papers received either in response to an APS or unsolicited concept papers. In such cases, they will be asked to sign an NDA and certify that they do not have a perceived or actual conflict of interest with the organization submitting the concept paper. Partners and/or stakeholders may be non-voting members. The USAID COR is welcome to join DAI as an observer during either the concept paper review or grant evaluation committee phases.

• 4.9. DAI examines and documents any potential awardee to ensure that the organization has adequate management, financial and internal controls systems to ensure implementation of and compliance with their grant agreement. This information shall be used for determining the appropriate type and value of the grant and may be used to determine any special conditions or requirements. This information will also be used to determine if any additional capacity building/business acceleration initiatives are needed and appropriate.

• 4.10. Prior to award, the Program screens all prospective grant activities for potential environmental and social impacts and strives to incorporate gender and equity issues as a cross-cutting theme in its grant program. If there is a potential for environmental impacts, the Program will conduct an Environmental Review in coordination with the Mission Environmental Officer (MEO).

• 4.11. Negotiations: The Grants Team, together with the relevant technical lead when

applicable, will negotiate the award (milestones, reports needed, etc.) and its budget with

the applicant. The grant budget is reviewed and negotiated to ensure costs are allowable,

allocable, and reasonable; are compliant with USAID policies and 2 CFR 200 subpart E; and

properly supports the proposed technical activities. For grants that include in-kind

elements, the Grants Team will coordinate to obtain quotations and estimates to be

included in the award budget. The team will also review program income, cost-share,

grantee contribution, and leveraged funds as described below, if applicable, and will ensure

it is applied in accordance with relevant ADS 303 regulations, including the relevant

Standard Provisions.

Eligibility Requirements

• 4.12 Eligible Organizations

Selection Criteria Elements/Definition

Core Grantee Capability, Resources, and

Past performance

Unique to each RFA

Core Grant Design and/or

technical approach including cross

cutting issues

Unique to each RFA

Core Potential for sustainability Unique to each RFA

Optional Key Personnel Unique to each RFA

Optional Private Sector funding

Leverage, financial incentives, or

cost-share

Unique to each RFA


13

Grant support may be extended to local NGOs, associations, and firms if they are legally

registered and recognized under the laws of Georgia. The Program may not award a grant

to a U.S. organization. Illustrative types of organizations may include:

o NGOs

o Private enterprises and entities

o Business service organizations

o Industry/sector, trade, or other private sector associations

• 4.13 Eligible Activities

Grant activities funded by the Program will meet the following general criteria. Any given

solicitation may further specify particular activities to be funded.

o Grants supported by the Program must promote the activity objectives set forth in

the relevant Request for Applications (RFA) or Annual Program Statements (APS).

The proposed activities may be the sole or primary work of an organization, or a

special dimension or function of an organization largely dedicated to other projects.

o Grants will cover only necessary and allowable costs linked to the execution of the

activity such as program staff salaries, consultant fees, training, meetings and

seminars, publications, purchase and/or rental of equipment, office and travel

expenses, and other direct costs. The specific costs to be funded under the

Program must conform to the USAID guidelines for funding activities.

o Should it be deemed necessary by the environmental review checklist (ERC), grants

will also cover costs associated with mitigating the environmental impact of grant

activities. These mitigation measures should clearly outline associated resource

needs.

o Activities can only begin upon signature of the agreement between the applicant

and DAI. Costs incurred before execution of the agreement (including signed

certifications and assurances) will not be reimbursed unless agreed upon in writing.

o The activities to be implemented under grants will ensure that women and

vulnerable groups are equal partners and beneficiaries in economic development.

• 4.14 Ineligible Organizations

Grant support may not be extended to the following types of organizations:

o Any entity that has been found to have misused USAID funds in the past;

o Political parties, including their subsidiaries and affiliates;

o Organizations that advocate or promote anti-democratic policies or illegal

activities;

o Faith-based organizations whose objectives are for discriminatory and religious

purposes, and whose main objective for the grant is of a religious nature;

o Any entity included in any supplementary information concerning prohibited

individuals or entities that may be provided by USAID;

o Any entity whose name appears in the System of Award Management (SAM), on

the Specially Designated Nationals (SDN) and Blocked Persons List maintained by

the U.S. Treasury for the Office of Foreign Assets Control, sometimes referred to

as the “OFAC List” and in the United Nations Security designation list with an

active exclusion; and

o An organization that refuses to sign all required certifications and assurances.

• 4.15 Ineligible Activities and Unallowable Costs


14

Unallowable costs are further described in Subpart E-Cost Principles in 2 CFR 200 for non-

profit organizations and FAR 31.2 “Cost principles for Commercial Organizations” for for-

profit organizations. All costs must be reasonable, allocable, and allowable.

Grant funds cannot be used for the following:

o Private ceremonies, parties, celebrations, or "representation" expenses.

o Purchases of restricted goods, such as certain agricultural commodities, motor

vehicles (including motorcycles), pharmaceuticals and contraceptive items,

pesticides, used equipment, U.S. government excess property and fertilizers

without the previous approval by the USAID CO.

o Prohibited goods under USAID regulations, including but not limited to: military

and surveillance equipment, police or law enforcement equipment, abortion

equipment and services, weather modification equipment, luxury goods, and

gambling equipment.

o Purchases of goods or services restricted or prohibited under the prevailing USAID

source/nationality regulations per 22 CFR 228 and relevant Standard Provisions; or

from countries or suppliers as may be identified by USAID's consolidated list of

debarred, suspended, or ineligible subcontractors at www.sam.gov.

o Any purchases or activities deemed unnecessary to accomplish grant purposes as

determined by DAI, including any grantee headquarters expenses that are not

directly linked to the implementation of the proposed program.

o Previous obligations and/or bad debts.

o Fines and/or penalties.

o Creation of endowments.

o Other costs unallowable under USAID and/or federal regulations, such as alcoholic

beverages.

o Indirect costs such as but not limited to overhead or indirect fringe (unless the

applicant has documented proof of such rates through audits or USAID-issued

NICRA). Additionally, a 10% de minimis indirect rate on Modified Total Direct

Costs can be applied to local organizations which have never received a negotiated

indirect cost rate from the U.S. government). Indirect costs are never allowed

under simplified grants.

4.16. Restricting Eligibility:

While competition is encouraged, the Program recognizes that it is not always possible for all grant

activities to be competed. Restrictions to eligibility may occur when the Program identifies a specific

opportunity or activity that corresponds directly with a specific organization’s mission and capabilities,

or when the Program receives an unsolicited application that demonstrates a unique, innovative, or

proprietary program. In cases when staff identify a specific organization to receive a grant, the Grants

team will ensure that there is no actual or apparent conflict of interest. Where a restriction to eligibility

is requested/required, the justification to restrict eligibility (JRE) must be reviewed and approved by

the COP and DAI’s home office.

As stated in ADS 303.3.6.5(a), restricted eligibility cannot be justified based on:

• Mobilization costs

• Demobilization costs

• Continuing relationship

• Lack of planning

• Concerns about amount of funds available, such as expiring funds

http://www.sam.gov/


15

However, the nature of the Program may provide special circumstances that cause deviations to the

standard competition procedures and such instances will require a clear justification for the absence

of competition under grants as stated in ADS 303.3.6.5.

Grants awarded with restricted eligibility will still be subject to evaluation by a Selection Committee.

In cases when a potential grantee and activity has been identified by a technical lead, a concept paper

or an application will be submitted by the applicant and presented to the Program for evaluation. The

Grants team will make the determination if a potential grantee will proceed directly with the

application or with a two-tiered approach of a concept paper and then application.

The following restrictions listed below are the most common justifications for restricting eligibility. All

justifications for restrictions to eligibility will be documented in writing in the grant memorandum of

negotiation and included in the grant file.

The complete list of justifications to restrict eligibility is found at ADS 303.3.6.5. DAI may utilize any

one of the following:

o Exclusive or Predominant Capability - DAI may restrict eligibility, including sole-

source, awards when it considers a recipient to have exclusive or predominant

capability based on one of the following criteria:

▪ Proprietary resources,

▪ Specialized facilities or programmatic expertise,

▪ An existing unique relationship with the cooperating country or beneficiaries,

or

▪ Participation in a Global Development Alliance, USAID’s business model

promoting public-private alliances as a central element of USAID’s strategic

assessment, planning, and programming efforts.

This exception may not be used to continue an on-going relationship when the

applicant developed the exclusive or predominant capability during performance of

any USAID award, or when the previous award was made without competition using

the small grants award restricted eligibility. When this exception is used, the Grants

Director must describe in detail and justify the uniqueness of the proposed recipient

and how it applies to the activity to be supported, as well as a description of the other

options explored.

o Follow-on awards and extensions- Follow-on awards and extensions. A follow-on

award is a new award to an entity to perform activities that are the same as or

substantially similar to those included in a recently expired previous agreement with

the same entity. An extension is an amendment to increase the total estimated amount

of an existing award, usually to provide additional activities within the program

description, to extend the period of the award, or both. Also included in the definition

of “follow-on” are new grants or extensions that include new activities that are clearly

logical expansions of or derived from activities previously performed by the same

grantee. As referenced below, the follow-on awards and extensions restricted

eligibility cannot be used to continue a relationship with a grantee that received an

award based on the small grants justification to restrict eligibility.

o Small grants - Small grants are awards with an estimated total amount not to exceed

the simplified acquisition threshold (SAT) and with a term of no more than one year.

These awards may not be amended to either add funds beyond the SAT or to extend

the date beyond one year from the original date of the award. A justification must

explain how the proposed award fits the justification. Note that if you use the small

grants restricted eligibility, you may not use the follow-on JRE in the case of a follow-

on grant.

o Unsolicited applications - Unsolicited applications. Unsolicited applications are those

submitted to DAI by an applicant solely on his/her initiative, without prior formal or


16

informal solicitation by the Activity. DAI may issue an award based on an unsolicited

application, without the benefit of competition, when the application:

▪ Clearly demonstrates a unique, innovative, or proprietary program,

▪ Represents an appropriate use of funds to support or stimulate a public

purpose,

▪ Fits with an existing programmatic objective.

Unsolicited applications will be considered on a case-by-case basis in accordance with

USAID regulations and, whenever possible, will be considered through a relevant APS.

(When the terms of an unsolicited application fit within the scope of a published and

open APS, the application may be considered under that APS.) The unsolicited

application is then considered to have been competed under the APS and no

justification for restricted eligibility is required.

This exception may not be used for non-competitive extensions to existing awards. A

grantee’s request to extend an ongoing relationship is not an unsolicited application.

To use this exception, DAI must first certify that it did not solicit the application and

that the application was submitted by the applicant solely on his/her own initiative.

The memorandum of negotiation must address how the following issues warrant

acceptance of the unsolicited application without competition:

▪ In what way the application is unique, innovative, or proprietary

▪ How funding the application is an appropriate use of Activity funds to support

or stimulate a public purpose

▪ How the proposed activity fits within a program objective

o Science and technology and innovation - Eligibility may also be restricted for new or

follow-on awards or amend existing awards in instances where DAI determines that

a promising science and technology concept or innovative solution exists to tackle a

pressing development challenge. For purposes of this exception, innovation means

significant, not incremental, improvements in development impact and the process

that translates knowledge into economic growth and social wellbeing. For purposes

of this exception, science means the process of generating knowledge based on

evidence, including the systematic study of the nature and behavior of the material

and physical universe, based on observation, experiment, and measurement, and the

formulation of laws to describe these facts in general terms. For purposes of this

exception, technology means the application of scientific knowledge to practical

problems, including the tools, processes, and techniques, created by such application

of knowledge. To use this exception to restrict eligibility, DAI must document with

specificity that the proposed award or extension is for science and technology or

innovation activities, and that the benefits to the Activity of restricting eligibility

exceed the benefits of unrestricted eligibility.

A JRE is not required if the amendment is strictly for administrative purposes, including:

o Incremental funding actions;

o Changes which do not require:

▪ An increase to the total estimated amount of the award, or

▪ A substantive change to the program description;

o A no-cost time extension; or

o An extension authorized under 2 CFR 200.308(d)(2).

Pre-Award Risk Assessment (Financial and Administrative Assessment)

4.17 Per ADS 303.3.9, the recommendation or selection of an application for award by the

Selection Committee does not guarantee the award. The COP and/or the Grants Director make the

final determination on the award and must be fully satisfied that the applicant has the capacity to

adequately perform on the award. To do so, the Grants team along with other members of the


17

Program (i.e. finance, operations, technical advisors), must conduct the relevant pre-award risk

assessment per the grant type to establish if the grantee has the necessary management and technical

competence to plan and carry out the grant. No grant shall be awarded unless the Program makes a

positive determination or suggests mitigating measures regarding the management, technical, financial,

and administrative capacity of the organization.

The nature of the pre-award risk assessment conducted will depend on the grant type, amount,

duration, whether advances are authorized, and the potential grantee. For example, increased scrutiny

of grantee financial accountability and reporting capabilities accompanies the use of grants with

advances since the provision and reconciliation of advances on standard grants entails more

sophisticated and detailed grantee financial reporting, and grantees must meet specific requirements

to qualify for advances.

Consequently, assessments for these grants will be particularly rigorous. Simplified grants without

advances and FAAs entail a lesser management burden on the grantee and pose less risk for the

Program, so the assessment may require a less intense review format. The Grants Director will

determine the extent of the pre-award risk assessment on a case-by-case basis depending on these

factors.

Depending on the size and anticipated grant type, the Program will fill out DAI’s grantee capability

questionnaire (DAI Form 12.4). This provides the basis for the formal pre-award assessment. The

form also allows the opportunity for the Program to understand how the applicant views their own

capacity and provides a document to cross reference when conducting the pre-award risk assessment.

For example, if contradictory information emerges from the findings of the pre-award risk assessment

from what was stated in the applicant’s self-assessment, the findings should be discussed with the

applicant in more detail.

Depending on the grant type, if a formal pre-award risk assessment is required, it usually entails a visit

to the applicant’s office, though a visit may be made at any time during the application process. During

this visit, the Grants team and other team members, as applicable, will meet with the applicant’s staff

to learn more about the administrative and financial management systems, including overall systems,

financial management practices and procedures, timesheets, travel, operations, monitoring and

evaluation, etc.

If the Grants Director decides that a visit to the applicant’s organization to perform a pre-award risk

assessment is not necessary, this decision must be made on the basis that sufficient information

regarding the applicant has been collected, reviewed, and found satisfactory. This must be approved

in writing by the COP.

The following documents are required to be collected for every pre-award risk assessment as well as

the additional information as applicable below:

o System of Award Management (SAM), the Specially Designated Nationals (SDN) and

Blocked Persons List maintained by the U.S. Treasury for the Office of Foreign Assets

Control, (OFAC List) and in the United Nations Security designation list checks;

o Signed copy of the applicable statutory and regulatory certifications in ADS 303.3.8;

and

o Reference checks to assess the applicant’s history of receiving past USAID-funded

grants or cooperative agreements, if applicable, or other relevant performance.

Previous experience with USAID is not one of the grantee evaluation criteria. ERA

must validate the applicant’s past performance reference information based on existing

evaluations to the maximum extent possible, and make a reasonable, good faith effort

to contact all references to verify or corroborate the following:


18

▪ How well an applicant performed;

▪ The relevancy of the work performed under the program;

▪ Instances of good performance;

▪ Instances of poor performance;

▪ Significant achievements;

▪ Significant problems; and

▪ Any indications of excellent or exceptional performance in the most

critical areas.

The information must substantiate that the applicant:

o Has systems that comply with USAID’s accountability and reporting requirements,

including 2 CFR 200, Subpart E as applicable. If the Program determines that the

applicant’s administrative and financial systems are not in compliance with USAID

requirements, the applicant must adopt and implement the systems recommended by

the Program to be eligible for a grant award, or propose and implement other

mitigating measures;

o Has the ability to comply with the award conditions, taking into account all existing

and currently prospective commitments of the applicant;

o Has a satisfactory record of performance. Past relevant unsatisfactory performance is

ordinarily sufficient to justify a finding of non-responsibility, unless there is clear

evidence of subsequent satisfactory performance, and;

o Has a satisfactory record of integrity and business ethics and is otherwise qualified and

eligible to receive a grant under applicable laws and regulations.

Depending on whether the applicant has existing relationships with USAID (not via direct awards)

or it is new to USAID, different documents are required for a risk assessment as indicated below:

4.18 Risk Assessment for Non-US Organizations that have been grantees or

contractors under USAID (not direct awards) or other US Government acquisition or

assistance instruments.

Hold In addition to references and the applicant’s self-assessment form, to make a risk assessment for a

non-U.S. organization that has been previously determined responsible by USAID or another U.S.

Government Agency, the Program may rely on the following information:

• Audits performed in accordance with USAID regulations (if the grantee expends $750,000 or

more per their fiscal year, per mandatory standard provision “Accounting, Audit and

Records”);

• Signed copy of the applicable statutory and regulatory certifications in ADS 303.3.8;

• Quality of the applicant’s history of performance on similar projects, including compliance with

the terms and conditions of the funding agreement, and;

• Other information as may be necessary and appropriate, including a pre-award survey of the

applicant’s administrative and financial systems.

4.19 Risk Assessment for organizations new to USAID or organizations with

outstanding audit findings.

Before making an award, the Grants team shall conduct a pre-award risk assessment. At a minimum,

the assessment must be based on the same considerations as in paragraph A, above. The Program

must obtain the following information from organizations that fit in this category, when appropriate:

• Copies of the applicant’s audited financial statements for the last three-year period, which a

certified public accountant or other auditor satisfactory to USAID has audited, if applicable.

• Projected budget, cash flow, and organization charts.


19

• Copies of applicable policies and procedures (for example, accounting, purchasing, property

management, personnel), if the Grants team determines that they are necessary.

Depending on the result of the risk assessment, the Grants Team may make the following

recommendations to the COP or his/her designee:

• The grant application is approved as presented

• The grant application is not approved

• The grant application is approved in a reduced amount and/or with specific conditions

• A different grant type is selected

The risk assessment and financial assessment will state what steps, if any, are necessary to bring the

applicant's administrative and financial systems into full compliance with DAI and USAID standards for

control and accountability of funds (i.e. specific conditions). Prior to disbursing the first advance or

reimbursement tranche, the Grants team will confirm whether the grantee has adopted and/or

implemented the recommended systems and procedures, if any, in order to exercise effective control

over, and accountability for, funds, property, and other program assets.

4.20 Grantee Capacity and Specific Conditions

Some local organizations and institutions may be considered strategic partners for the Program, but

classified as high-risk grantees due to limited institutional capacity to manage funds. When partnering

with these organizations, as applicable, the Program will consider the potential risks associated with

each grantee and work to mitigate these risks to the maximum extent possible.

As a risk mitigation measure, DAI may impose specific conditions as defined in ADS 303.3.9.2, which

can include requirements such as the creation of written human resources procedures or

procurement policies, frequent financial reporting, additional technical assistance, and training. In such

instances, the conditions will follow the requirements outlined in ADS 303 and will be detailed in the

grant agreement. Once the condition has been satisfied and its conditions have been met, the COP

may approve removing the condition via written modification to the award.

Grant Award Management

• 4.21. Grants may be awarded to private sector SMEs, financial institutions, associations,

civil society partners, host country registered and private sector organizations, non-government organizations (international, national, and local), and universities. Organizations must be registered with the applicable local authorities and eligible to receive grant funding. The Program does not envision issuing grants to public international organizations (PIOs). Grants may not be awarded to government entities, unless the grant is in-kind.

• 4.22. An appropriate grant type will be selected based on the nature and length of the grant activity, estimated value of the grant, capacity of the grantee, whether the applicant needs advance funding, or will be paid on a cost reimbursement basis, whether the applicant's administrative and financial systems are adequate to meet USAID accountability and reporting requirements, and other conditions, as prescribed in ADS 303.3.24. It is expected that the grants to be awarded by the Program will include:

In-Kind Grants (GIK). The direct purchase and delivery of equipment or other physical asset

and/or services (including expert services) to the grantee on non-cash basis. DAI makes

purchases directly with vendors (contracting and payment) for supplies and/or services which


20

are provided to the grantee. No cash is provided to the grantee. DAI manages the

procurement and award of services and goods provided in-kind, based on DAI procurement

policies and procedures.

Fixed Amount Awards (FAA). The payment for completion of well-defined milestones. Fixed

amount payments made upon grantee’s satisfactory achievement of milestones. Milestones and

costs shall be specifically identified, and milestones must be in harmony with the grantee’s

Program Description.

Simplified Grants. Streamlined approach to the issuance of small grants under the simplified

acquisition threshold. Payments will be made by reimbursement, based on actual costs

incurred, identified in the approved budget, and reported by the grantee. The simplified grant

format also allows for advances when necessary.

Standard Grants. Reimbursement of an organization’s actual costs. Issued to more developed

organizations that possess documented management capacity as determined by the Pre-Award

Responsibility Determination. Procurement of goods and services by the grantee must be

done in accordance with their own procurement policies and procedures. The grantee may

request reimbursement of indirect costs, consistent with 2 CFR 200.414(f). The standard grant

format also allows for advances.

• 4.23. Grants shall be limited to the following types of grants and values as follows:1

Notes:

1

Micro-enterprise, such enterprises are not defined currently by GeoStat in Georgia, although based

on the Revenue Service definition Natural person are qualified as micro business, if the following

conditions are met:

a) Does not use hired work force;

b) Independently conducts economic activities and his/her total gross annual income does not

exceed GEL 30 000 for a calendar year.

2 Small-size enterprises, according to GeoStat, are enterprises where the average annual number of

employed personnel does not exceed 50 and average annual turnover does not exceed 12 million GEL

3 Medium-size enterprises, according to GeoStat, are enterprises where the average annual number of

employed personnel ranges from 50 to 250 and the average annual turnover is from 12 to 60 million

GEL

1 Capacity Building grants may only be the simplified format. They may not be FAA.

Type of Organization In-Kind

Grant

(GIK)

Fixed

Amount

Award (FAA)

Simplified

Grant

Standard

Grant

Local non-

governmental

organization (NGO)

U.S. NGO Not allowed under this program

Local governments or

government entities

(including state

universities and

research centers)

Micro enterprises1,

associations,

Private sector small2 and

medium3 sized

businesses

Maximum value or

limitations

three-year

max period

Simplified

Acquisition

Threshold


21

• 4.24. The Grants team shall customize each grant agreement template at the start of the grant program in collaboration with the DAI/W Contracts Manager. The Program may issue the following types of grants up to their respective maximum as outlined in the Work Instruction 12.1. The team shall not modify or alter the approved grant templates, including mandatory provisions and certifications, without first consulting the DAI/W Contracts Manager

o Form 12.10: Fixed Amount Award (FAA) Grant Template o Form 12.11: In-Kind Grant (GIK) Template o Form 12.12: Standard Grant o Form 12.13: Simplified Grant

• 4.25. Grant templates shall include the appropriate Standard Provisions (both mandatory and required as applicable) and shall be updated based on ADS 303 updates.

• 4.26. The grantee shall sign the certifications required in ADS 303.3.8 (see https://www.usaid.gov/ads/policy/300/303mav) as a part of the award acceptance. These will include, among others, as amended:

o Assurance of Compliance with Laws and Regulations Governing Nondiscrimination in Federally Assisted Programs (This assurance applies to Non-US organizations, if any part of the program will be undertaken in the US);

o Certification Regarding Lobbying (22 CFR 227); o Prohibition on Assistance to Drug Traffickers for Covered Countries and

Individuals (ADS 206, Prohibition of Assistance to Drug Traffickers); o Certification Regarding Terrorist Financing; o Certification Regarding Trafficking in Persons;

• 4.27. English shall be the official language of all award documents. If an award or any supporting documents are also provided in a foreign language it must be stated in each version that the English language version is the only official version and a side by side translation in Georgian may be provided for the benefit of the grantee.

• 4.28. The Program shall monitor the performance of each grantee and report to the USAID on the achievement of grant outputs and/or milestones and their environmental compliance. The Grants team shall maintain a file for each grant awarded in TAMIS.

• 4.29. The Program shall comply with inventory management policies and procedures for procuring non-expendable and expendable items on behalf of grantees, or those purchased directly by the grantee under their grant agreement, which can be found in:

o Policy 9.0: Governing Policy on Procurement and Inventory Management o Procedure 9.6: Inventory Management

Wrapping Up the Grant

• 4.30. DAI shall not award any grant for a period that extends beyond the estimated completion date of the Program. The terms of all grants shall allow for an orderly close-out prior to the expiration date of DAI’s contract.

• 4.31. All interest and other refunds by award recipients hereunder shall be made to a special, non-commingled, interest-bearing account established by the Activity (separate account). The Program has no beneficial interest in any funds in the Separate Account. Funds in the Separate Account shall be reimbursed annually to USAID, as directed by the Contracting Officer. Upon completion of the grant, any funds remaining in the Separate Account shall be returned to USAID and any interest shall be refunded to the U.S. Government.

• 4.32. DAI and/or USAID shall reserve the right to terminate a grant, in whole or part, or suspend payments, should the grantee become insolvent during the performance of the award or should the grantee not meet their responsibilities as set forth in the Grant Agreement.

• 4.33. USAID has the right to terminate the grant activity (activities) unilaterally in extraordinary circumstances.


22

• 4.34. USAID reserves the right to conduct financial reviews or audits, and to otherwise ensure the adequate accountability of organizations expending its funds. The Program’s grant files shall contain the essential documents to demonstrate that the grant was successfully completed, an inventory of all equipment and goods purchased under each grant, and that funds were spent prudently with all costs justified.

FOM PROCEDURE 12.1: SOLICITATION AND AWARD OF

GRANTS 1. PURPOSE AND SCOPE

1.1. This procedure implements the policies related to the solicitation and award of grants as

stated in Policy 12. Governing Policy on Grants Management.

1.2. This procedure describes the entire process for issuing application notifications, reviewing

and evaluating applications, and determining awards for grants.

1.3. The overall purpose is to ensure competition in the award of grants unless an exception is

authorized and to fulfill any requirements as set forth by the client.


2.1. The Grants Director is responsible for overseeing the entire process, drafting and issuing

the Request for Application (RFA)/Annual Program Statement (APS), ensuring

documentation in TAMIS of all information for each grant, submitting proposed grantees

for approval, and issuing the awards.

2.2. The Grants Director and grants staff are responsible for working with applicants from the

concept paper and/or application phase through grant award phase by documenting and

processing the grants in TAMIS.

2.3. The Chief of Party/Deputy Chief of Party (DCOP) is responsible for reviewing the draft

RFA/APS for applicability to the program, reviewing of applications and ensuring that

applications conform to program objectives.

2.4. The DAI/W Contracts Manager is responsible for approving RFA/APS templates.

2.5. After the written approval of the COR, the Chief of Party approves grants and signs off

on the final grant agreement and is responsible for ensuring compliance to this procedure

and training for program staff.

3. PROCESS

Responsibility Action

Solicitation Process

Technical Team

Grants Director

1. Develop the problem statement, objective, and/or if possible a detailed

scope of work. DAI will collaborate closely with COR and ensure that

USAID is substantially involved throughout this process.

2. Conduct brief market research to learn what types of organizations, and

their relative capacity, are available to submit an application and implement.

3. Determine in collaboration with the Grants Director, if a grant award

mechanism is the most appropriate given the objectives, if not, consider

other implementing mechanisms.

4. Develop an RFA or APS in collaboration with significant input and review

from technical teams, client, DAI Home Office, stakeholders/partners,

and/or subject matter experts as appropriate. Technical teams should

further define either the problem statement, the objective and/or provide a

detailed scope of work. Technical teams, in consultation with the M&E team


23

and COP also are the primary providers of the connection of the objectives

and statement of work to the workplan, the performance indicators, and

provide initial thoughts on how the grant application will be technically

evaluated.

• Work Instruction 12.3: Designing a Request for Applications

• Work Instruction 12.4: Designing an Annual Program Statement

• Work Instruction 12.5: Types of Applicants and Procedures

• Work Instruction 12.6: Exceptions to Competition of Grants

• Form 12.2: RFA Template attachment

• Form 12.3: APS Template attachment

DCOP 5. Review and approve draft RFA or APS. The first one (submitted as a

template) will be approved by the DAI/W Contracts Manager.

DAI/W

Contracts

Manager

6. Review and approve RFA or APS initial templates.

Technical

Team/Grants

Director

7. Set up a Selection Committee for application review if the program requires

multiple or consensual decision/review.

• Work Instruction 12.7: Setting Up Grant Selection Committees

Grants Staff

Communication

Staff

8. Issue RFA or APS to the public through appropriate media channels (e.g.

web site, radio, print advertisement). The Activity meets DAI’s competition

policy for grants when an announcement is published.

Grants Staff 9. Start an RFA or APS file in TAMIS.

• Work Instruction 12.11: Grantee Documentation

Evaluation Process

Grants Staff 1. Receive and review concept papers and/or applications by documenting the

information in TAMIS. For each application received, a separate form is

created in TAMIS.

1.1. Enter all contact information and grants details as outlined on the form

for each applicant.

1.2. Check applicants in the System for Award Management (SAM) as

indicated on the form.

• Work Instruction 4.4: Excluded Parties Search in the System of

Award Management (SAM), on the Specially Designated Nationals

(SDN) and Blocked Persons List maintained by the U.S. Treasury

for the Office of Foreign Assets Control, (OFAC List) and in the

United Nations Security designation list.

1.3. Record the applications using the date they are received.

1.4. Review the applications and all supporting materials for completeness

as listed in RFA/APS.

• Work Instruction 12.8: Reviewing and Evaluating Applications

1.5. Notify applicants of receipt and next steps (rejection, review, needs

more information) by creating the letter in TAMIS.

Grants Staff 2. Prepare Application Competition Records in TAMIS.

Grants Staff 3. Ensure all Selection Committee members or individuals involved in making

the decision to award a grant on a non-competitive basis have signed and

dated the Confidentiality & Disclosure of Relationships form certifying that

https://apps1.daiglobal.net/projects/WorldWide/FieldOperationsManual.nsf/80c0228390be7d9f852578830008f874/0415c4e72f52507a85257d49006a223d?OpenDocument


24

the individual has no conflict of interest that could affect their impartial and

objective evaluation.

• Form 12.15 - Confidentiality & Disclosure of Relationships Form-

Grants

Grants Staff 4. Forward RFA or APS and applications to the Selection Committee members

for evaluation.

4.1. Notify selection committee members of review deadlines.

Selection

committee

5. Review and score applications and recommend potential grantees in

accordance with the evaluation criteria listed. Review applications against

selection criteria outlined in the RFA. Do not introduce new factors. Identify

weaknesses or areas that need further clarification, development or

improvement.

Grants Staff 6. Summarize Selection Committee ratings and recommendations in TAMIS for

each application.

Grants Staff 7. Notify applicant of decision using the letter templates in TAMIS. There are

three options as described below.

7.1. Accept the application and inform applicant it moves forward for

further review and the applicant will be contacted by a staff member.

Proceed to step 9.

7.2. Reject the application and provide explanation to the applicant as to

why the application was rejected.

7.2.1. Terminate the application by changing the status of the application in

TAMIS to “rejected”.

7.2.2. Generate termination letter using the TAMIS template.

7.3. Request more information from the applicant to clarify their

application, and upon receipt, the application will be reviewed again.

7.3.1. Generate letter requesting more information from applicant.

7.3.2. Return to step 4 upon receipt of requested information.

Grants Staff and

Technical Team

8. Work with the appropriate Technical Teams to conduct cost analysis of

applicants’ budgets. If necessary, staff shall negotiate the budget to ensure

that costs are realistic and reasonable. Consult with STTA technical experts

if outside expertise is warranted. See Guidance for additional information.

• Work Instruction 12.8: Reviewing and Evaluating Applications

8.1. Review cost elements for reasonableness and allowability. The extent

of the cost analysis will vary among grant types and is determined on

the basis of the nature of the program, past experience with the

applicant, and the amount and type of costs involved.

8.2. Determine the applicants' understanding of the financial aspects of the

proposed program and the applicants' ability to perform proposed

activities with the funds requested. E.g., are enough funds budgeted?

8.3. Evaluate the means by which the applicants’ plans will accomplish the

program objectives with reasonable economy and efficiency.


25

8.4. Determine if any costs are restricted or unallowable per DAI’s

agreement with the client (e.g. vehicles, equipment, and fertilizer) as

these items may require additional approvals.

Grants Staff and

Technical Team

9. Conduct pre-award risk assessment and complete the financial capability

questionnaire of each applicant to ensure they have the capacity to

implement a grant.

• Conduct a review of the following aspects of the. The level of

scrutiny and review required shall be proportional to the

complexity of the grant program contemplated and the total

amount of the grant:

Recent audited financial statements (note that per ADS 303.3.9,

DAI may ask for three years of audited financial statements when

appropriate)

Projected budget; Cash flow; Organization chart; Applicable policies

and procedures (e.g., accounting, purchasing, property management,

personnel), if appropriate.

• Form 12.4: Grantee capability questionnaire

In cases that require further information, the project may also verify

financial responsibility and institutional capability by inspections,

letters from other donors, and/or on-site visits.

Document all findings in the Memorandum of Negotiation. The

written determination of the applicant ’s responsibility should

confirm that the applicant:

• Has adequate financial resources, or the ability to obtain such

resources, as required during the performance of the award;

• Has the ability to meet the award conditions, taking into

consideration all existing prospective recipient commitments,

nongovernmental and governmental;

• Has a satisfactory record of performance. Generally, relevant

unsatisfactory performance in the past is enough to justify a finding

of non-responsibility, unless there is clear evidence of subsequent

satisfactory performance, or the applicant has taken adequate

corrective measures to assure that they will be able to perform

satisfactorily;

• Has a satisfactory record of business integrity; and

• Is otherwise qualified to receive an award under applicable laws

and regulations.

If the Grant team evaluate the financial capabilities of an applicant and determine

that the organization is limited or deficient, the staff shall classify them as high -risk

organizations. The project shall either deny the application or ensure that specific

measures are built into the grant award that allows for close monitoring of the

organization until the deficiencies are corrected.

9.1. Attach all responsibility and capacity assessment checklists and

documents in TAMIS.


26

9.2. Determine if capacity development requirements (technical, financial,

operational, marketing, etc.) are feasible and include as an obligation

to comply in the grant.

Environmental

Compliance

STTA

and Grants Staff

11. Complete Environmental Review of grant as necessary, based on the

Environmental Compliance Process that is prepared in accordance with the

Program’s IEE and approved in the Workplan.

• Work Instruction 5.2: Environmental Compliance

• Work Instruction 5.3: Activities Requiring Environmental Review

11.1. Create the Environmental Review form in TAMIS and complete all

fields.

11.2. Forward to the Activity’s designated Environmental Compliance

STTA or DCOP/Technical for review.

11.3. Update TAMIS upon receipt of concurrence from the Environmental

Compliance STTA or DCOP/Technical.

11.4. Ensure that any environmental mitigation efforts or reporting

requirements are included in the grant agreement.

11.5 Ensure preparation and approval of ERC/EMMP, as needed, based on

results of environmental screening.

Grants Staff and

Technical Team

Communications

Specialist

12. Work in close consultation with the technical teams to assist applicants in

fine tuning their applications, particularly if the Selection Committee raised

specific issues or questions.

12.1. Revise goals, objectives, and results if needed and/or recommended

by the technical teams

12.2. Review and adjust the budget if any issues arose during the cost

analysis.

12.3. Adjust the proposed plans if there are any mitigating environmental

issues per approved ERCs/EMMPs.

12.4. Review and document the cost share the grantee proposed in their

application.

• Work Instruction 12.16: Determining Cost Share for Grants

12.5. Consult with the Communications Specialist to ensure the grant is in

compliance with the Program’s Branding Strategy and Marking Plan.

• Work Instruction 12.9: Creating a Branding and Marking Plan

12.6. Improve the grammar and format of the grant agreement, helping the

grantee focus on elements of clear results, objectives, and how to

monitor and track performance.

12.7. Seek inputs from and determine with technical teams and the

Monitoring and Evaluation Specialist the appropriate monitoring plans

and determine appropriate standard provisions (Mandatory and or

Required as Applicable).

12.8. Determine if any additional special grants management conditions or

requirements based on the Grantee Capacity Assessment conducted

by the technical teams and/or specialized STTA are appropriate.


27

Grants Staff 13. Prepare Memorandum of Negotiation in TAMIS.

13.1. Document the cost analysis, pre-award determinations, and

negotiation process and provide any other relevant details on points

agreed upon in a Memorandum of Negotiation.

• Work Instruction 12.10: Writing a Memorandum of Negotiation

Grants Director

and COP

14. Approve Memorandum of Negotiation in TAMIS.

15. Submit to the COP for approval.

Grants Staff 16.. Prepare Request for Approval of the grant award for USAID. The approval

package shall include:

• Grant Letter

• Schedule

• Program Description

• Negotiation Memo (including JRE, if applicable)

• Budget

Chief of

Party/DCOP

Technical

17. Request approval from USAID by providing the required documentation as

determined by the DAI/W Contracts Manager, including confirmation that

the grantee is not listed on the following places:

1) Does not have active exclusions in the System for Award Management (SAM)

(www.sam.gov)

2) Does not appear on the Specially Designated Nationals (SDN) and Blocked Persons

List maintained by the U.S. Treasury for the Office of Foreign Assets Control, sometimes

referred to as the “OFAC List” (online at: http://www.treasury.gov/resource-

center/sanctions/SDNList/Pages/default.aspx; and

3) Is not listed in the United Nations Security designation list (online at:

http://www.un.org/sc/committees/1267/aq_sanctions_list.shtml).

Award Process

Grants Staff 1. Convert the applicant’s application to a grant upon receipt of written

concurrence from client.

1.1. Update TAMIS by changing the status of the grant and convert the

application to a grant by assigning a grant number.

1.2. Generate Grant Agreement documents in TAMIS upon receipt of

written concurrence (or TAMIS concurrence if allowable) from client.

1.3. Generate rejection letter if grant is not approved by the client.

Grants Director 2. Review and approve Grant Agreement documents, ensuring that the correct

grant format is used, and the required standard provisions and certifications

are attached.

Grants Staff 3. Forward the signed Grant Agreement to the applicant for signature and

update applicant status in TAMIS.

Chief of Party 4. Sign the Grant Agreement.

4. RECORDKEEPING

http://www.sam.gov/


28

The required records that must be maintained when executing this procedure are provided in the

Project Record Map and in Checklist 12.0.


29

FOM PROCEDURE 12.2: GRANT ADMINISTRATION,

MANAGEMENT, AND REPORTING


1.1. This procedure implements the policies related to administering and monitoring a grant as

stated in Policy 12. Governing Policy on Grants Management.

1.2. This procedure describes the end to end process of administering and managing a grant

from the award to the point of close-down.

1.3. The overall purpose is to ensure compliance in administering and managing awards and the

successful implementation of the grant.

1.4. Grant and reporting encompasses all dealings between the Program and the grant recipient

from the time the award is made until the end of the support. The specific nature and

extent of the management shall vary from award to award; it can range from reviewing and

analyzing performance reports or performing site visits to more technically developed

involvement for high-risk recipients.

1.5. Site visits are an important part of effective award management. Joint site visits by the

Economic Security Program’s technical staff and USAID are encouraged, since they can

often be a more effective review of the activity. A brief report highlighting the findings will

be completed and included in the grant file.

1.6. Grants are subject to the requirements and provisions established and included in each

award.


2.1. The Grants Staff shall serve as the focal point for the grantee and are responsible for the

on-going financial and administrative management of the award. The Grants Staff shall serve

as the point of contact for all official communication dealing with grant administration. The

Grants Director shall provide for the continuing oversight by appropriate staff of the

financial management aspects of the award through reviews of reports, correspondence,

site visits or other appropriate means. The Grants Director or his/her designee shall

determine that the award does not contain administrative approvals that conflict with the

grant provisions, stated regulations and policies.

2.2. The Grants staff are responsible for processing all award agreements modifications,

suspension and termination actions. The Grants Staff shall submit complete sets of backup

documentation for all Requests for Payment to the Accountant and shall maintain all grant

documentation electronically in TAMIS.

2.2. The Technical Staff shall oversee the technical implementation of the award through the

review of reports, correspondence, site visits, etc. Technical Staff shall assist in the

monitoring of the grantees and review and approve milestones and outputs produced. The

Technical Staff shall review requests for amendments, be consulted on suspensions and or

terminations, and shall review technical and progress backup documentation and determine

if they are acceptable, need clarification, or are rejected.

2.4. The M&E Manager shall work with the Technical Staff and the Grants Staff and the grantee

on reporting and collecting required data for the Program reporting and success stories.

2.5. The Procurement Specialist is responsible for any direct purchasing by DAI on behalf of

the grantee.


30

2.6. The Accountant is responsible for reviewing and recording the advances and expenses for

grantee, and for processing payments and/or requests for reimbursement in a timely

manner.

2.7. The Chief of Party is responsible for ensuring compliance to this procedure and that staff

are trained on this procedure and supporting instructions.

2.8. The Environmental Compliance STTA (EC) is responsible for screening grants for their

potential impact on environment and human health per the Environmental Compliance Act,

Sections C.8 and H.16.

2.9 DAI shall ensure that grantees have the capability to implement the relevant requirements

of the Initial Environmental Examination (IEE) DCN:2019-GEO-002. DAI also shall assure

that grantees integrate implementation of IEE conditions, where applicable, into their own

project workplans and budgets and report on their implementation as an element of grant

performance reporting. The EC shall, as and if appropriate, provide training to grantees in

their environmental compliance responsibilities and in environmentally sound design and

management of their activities.

2.10 All equipment procured under standard, simplified, or in-kind grants, which includes any

single item having a useful life over one year and an acquisition cost of $5,000 or more per

unit in accordance with the definition of equipment in the Mandatory Standard Provisions

entitled “Title to and Use of Property (December 2014)”, will be included in the grant

budget and grant agreement. All equipment listed in the grant must promote achievement

of grant objectives, and final disposition will remain with the grantee upon signature of a

deed of donation, following successful completion of the grant. If the grant is terminated

for any reason, the Program may request that the equipment be returned within 7 calendar

days.

For equipment valued at $5,000 and higher, the grantee will be required to maintain an

inventory and submit an inventory report and disposition plan for approval.

Under FAAs, for commodities that are incidental to milestone achievements, disposition of

equipment occurs at the time of purchase by the grantee and title will vest with the grantee,

unless otherwise stated in the grant agreement. For equipment that is purchased that is

described as or included within the milestone, title to and final disposition will remain with

the grantee following successful completion of the grant and upon signature of a deed of

donation, unless otherwise stated in the grant agreement. DAI will provide final property

ownership transfer document as part of the grant close out procedures.

* *The following table qualifies what is determined as NXP under each scenario.

2 The recipient may need to procure property for its own use or for beneficiaries of its program in order to accomplish a milestone, and these purchases are incidental to

the recipient's completion of a milestone and are therefore not considered NXP. However, if the purchase of property is itself the milestone, and such purchase is

specifically named in that milestone, it is considered NXP. 3 Only if the item purchased ALSO meets the definition of NXP: Non-expendable (NXP) is property which is complete in itself and does not lose its identity or become a

component part of another article when put into use; is durable with an expected life of two years or more; and has a unit cost of more than $500. (Ref: AIDAR 752.245-

70).

When is a purchase considered Non-Expendable

Procurement (NXP)?

In support of a grant

Fixed Amount Award (FAA)2 ≥$5,000

In Kind >$5003


31

3. PROCESS


Grants Staff 1. Arrange an orientation meeting with the winning applicant upon approval

by the authority stated in the Project Schedule of Authorities and, if

required, the client (see Guidance).

1.1. Invite all the staff involved in the process to attend such as the

Technical Staff, Grants Director, Environmental Compliance STTA,

the Procurement Specialist and the Accountant.

1.2. Clarify the roles and responsibilities of the staff who will administer

the grant and interface with the applicant. Briefly define the normal

relationship between the Technical Staff and the Grants staff here

perhaps, and add any additional clarification into Guidance for those

projects where this may be different (technical and grants staff are

the same, etc.)

1.3. Review all documents and terms of the agreement with the applicant

and answer any questions.

1.4. Review all financial issues: request for payments/reimbursements,

earned income, procurement, reimbursement, cost-sharing

reporting (see Guidance for common reporting requirements), and

records.

• Work Instruction 12.17: Interest Earned on Grant Advances

• Work Instruction 12.18: Use and Disposition of Project

Income

1.5. Review all administrative issues related to implementing the grant:

reporting, publications, grievances, termination, property, etc.

1.6. Review disposition of property under the grant. See Guidance 4.2.

1.7. Review the Branding and Marking Plan as determined in the

application stage.

Grants Staff 2. Have the applicant sign and return the grant agreement.

2.1. Change the status of the grant in TAMIS to active.

Grants Staff • 3. Establish the grant electronic file system in accordance with the DAI

Project Records Map as per procedure 3.2: Project Record Management

• Form 3.5: Project Record Map

Grants Staff 4. Update the grant record tab in TAMIS by scanning the grant agreement

cover sheet with signatures and paste it into the space provided. No need

to scan the whole document as it is in TAMIS.

4.1. Create a Grant Profile in TAMIS (see Guidance).

Grants Staff 5. Update TAMIS by recording the milestones and/or outputs for the grant

that are in the grant agreement documents. Each output or milestone shall

be entered individually.

4 Grantee purchases its own equipment under a Standard Grant.

Standard4 ≥$5,000

Simplified Not Applicable – Procurement of

goods ≥$5,000 not permitted.

ANizharadze

Highlight


32

• Work Instruction 12.12: Publications and Media releases (this

work instruction is applicable when publications or media

(videos, CDs, etc.) are financed under the award)

M&E Staff, Grants

Staff and Technical

Staff

6. Develop a Monitoring and Evaluation (M&E) plan for the grant in

conjunction with the Technical Staff and the M&E Manager and enter the

information in TAMIS.

6.1. Enter the criteria and indicators to evaluate the grant.

6.2. Forward the plan to the Grants Director for review.

M&E Manager and

Grants Director

7. Approve the M&E plan and notify the Grants Staff and the M&E Team

Grants Staff 8. Forward a copy of the grant budget to the Accountant for payment control.

Grants Staff 9. Review all planned disbursements and requisitions in the grant agreement

and budget and enter them in TAMIS. Follow the instructions below

according to the grant.

9.1. If the grant is a Simplified Grant without a grant advance, no entry

is required as it is cost reimbursable; proceed to step 10. If the grant

is a Simplified Grant with a grant advance, then see the table below.

9.2. DAI procurement policies and procedures are followed for In-Kind

grants.

9.3. Request and process payments according to the type of grant:

Fixed Amount Award In Kind Standard &

Simplified

Grant

Schedule disbursements in

TAMIS based upon the

timeline for all

milestones/outputs as

agreed upon in the award

and as detailed on the

“Activities and Outputs” tab

during step 5.

Enter the requisition(s) for

goods or services in

TAMIS.

Any special

procurement

plans/instructions not

included in the

requisition shall be

sent to the

Procurement Specialist.

Enter any approved

advance amount as a

scheduled

disbursement in

TAMIS.

Prepare the advance

for the grantee

following Financial

Management

Procedure 7.5 Field

Advance

Management.

Grants

Director/Grants

Staff/M&E

Manager/Technical

Staff

10. Monitor the grantee according to the approved Monitoring and Evaluation

Plan noted in step 7.

10.1. Follow up on outputs and grant progress through site visits,

telephone calls, email, etc.

10.2. Ensure payments were issued and requisitions filled.

10.3. Confirm receipt of funds and/or goods and services by grantee.

10.4. Document all monitoring activities by creating a Comment Form in

TAMIS. Attach any reports, emails, etc. to the Comment Form to

detail all relevant actions/communications.


33

10.5. If the grantee requests an amendment, follow the work instruction

below.

• Work Instruction 12.13: Amendments to Grant Awards

10.6. If the grantee has a grievance which is not readily remedied through

direct discussion (i.e. work stoppage, complaint of treatment or

process) follow the work instruction below.

• Work Instruction 12.14: Grievances and Early Termination of

Grants

10.7. If the grantee is underperforming, unable or unwilling to fulfill grant

requirements, or violating the terms of the agreement, follow the

work instruction below.

• Work Instruction 12.14: Grievances and Early Termination of

Grants

Grants

Staff/Accountant

11. Receive and review grantee financial report.

11.1. Check all receipts and documentation submitted by the grantee

against the budget and implementation plan.

11.2. Follow up with the grantee on any questions or comments

concerning receipts or documentation.

11.3. Prepare any reimbursements by following the instructions in the

financial management procedure below.

• Procedure 7.4. Field Expense Management and Reporting

11.4. When settling a grantee’s advance, follow the instructions in the

financial management procedure below.

• Procedure 7.5 Field Advance Management

11.5. If issuing an additional advance, return to step 9 above and continue

the procedure from that point.

11.6. If this is the final grantee payment, do not pay. Proceed to:

• Procedure 12.4: Closing Out Grants.

Grants Staff/

Technical Staff

12. Resume the on-going monitoring of the grant as outlined in Step 10.

12.1. Pay attention to end dates and manage budgets closely at the

advanced stages of the grants.

Grants

Director/Technical

Staff

13. Update the Chief of Party and Technical Staff on the grantees’ status, noting

any successes or delays in grant implementation. The frequency and format

of the updates are normally determined by the client.

Grants Staff 14. Notify the grantee that 30 days remain prior to the end date of the

agreement.

14.1. Inform the grantee that all activities shall cease on the end date and

no reimbursements shall be paid for costs incurred after this date.

14.2. Instruct the grantee to begin preparing the final report and that it

shall be due on the end date of the agreement.

14.3. Inform the grantee that they have 30 days after the end date of the

agreement to prepare and submit their final financial report. Remind

the grantee that no costs incurred during preparation of this report

shall be reimbursed as it is after the end date of the agreement.

• Form 12.6: Grantee Final Report


34

Grants

Staff/Technical Staff

15. Monitor the grant closely and stay in contact with the grantee during the

final weeks of implementation.

Grants

Director/Grants

Staff/M&E

Manager/Technical

Staff

16. Receive and review the Final Report from the grantee.

16.1. Log the report into TAMIS.

16.2. Review the Final Report against the approved milestones and

outputs.

16.3. Contact the grantee regarding any discrepancies or missing

documentation.

Grants Staff 17. Change the status of the grant in TAMIS to “completed”. Continue with the

close out process following the procedure below.

• Procedure 12.4: Closing Out Grants

4. RECORDKEEPING




35

PROCEDURE 12.3: CLOSING OUT GRANTS


1.1. This procedure implements the policies related to closing out a grant agreement stated in

Policy 12. Governing Policy on Grants Management.

1.2. This procedure describes the end to end process of closing a grant from the completion

of all activities to auditing and closing the grant file.

1.3. The overall purpose is to ensure compliance in documenting the completion of grant

awards.


2.1. The Grants Director shall oversee the proper closure of each award and is responsible for

ensuring that the grantee has completed all requirements for closeout and performs the

required audit of grant files.

2.2. The Technical Staff shall review all final outputs from the grant awards.

2.3. M&E Manager and Staff shall assist in the final reporting of each grant award.

2.4. The Procurement Specialist shall confirm that all goods and services were paid for and

received.

2.5. The Accountant shall confirm, in consultation with the Finance and Administration

Manager, that all payment requests were paid, and advances cleared for grantees.

2.6. After grants activities have been finalized at a specific site, the COP shall sign a Record of

Compliance with the ERC/EMMP (when applicable) certifying that the grantee met all

applicable ERC/EMMP conditions and submit it to the COR. COR will provide a copy to

the MEO and BEO.

2.7. The Chief of Party/Deputy Chief of Party (DCOP) is responsible for ensuring compliance

to this procedure and that staff are trained to this procedure and supporting instructions.

F

3. PROCESS


Technical Staff 1. Draft the final evaluation report on the grant; highlighting successes and/or

lessons learned. Work with the Grants Staff and M&E Manager to compile all

information.

• Form 12.7: Grantee Evaluation Report Template

Grants Staff 2. Create a Close-out Form in TAMIS.

2.1. Begin auditing the Master Grant File while simultaneously proceeding

through steps 4 to 11 of this procedure.

• Work Instruction 12.11: Grantee Documentation

Grants Staff 3. Contact the Procurement Officer to confirm that all requisitions are completed

and closed.

Procurement

Specialist

4. Contact all vendors and service providers.

4.1. Confirm that all final goods and services were delivered.

4.2. Collect any outstanding invoices and submit for payment.


36

4.3. Review and update the inventory list for In-Kind disbursed grants in

TAMIS.

• Procedure 9.6: Inventory Management

Procurement

Specialist

5. Notify Grants Staff that all procurement activities are complete and TAMIS is

updated.

Grants Staff 6. Receive and review the Final Financial Report from the grantee.

• Form 12.5: Grantee Financial Report

6.1. Log the report into TAMIS.

6.2. Review the Final Financial Report against the approved budget and the

remaining funds.

• Work Instruction 12.17: Interest Earned on Grant Advances

• Work Instruction 12.18: Use and Disposition of Project Income

6.3. Review all the receipts and back-up documentation.

6.4. Contact the grantee regarding any discrepancies or missing

documentation.

6.5. Enter any final disbursements and/or reconciliation of advances in TAMIS.

Grants Staff 7. Forward the Final Financial Report and documentation to the Accountant.

Accountant 8. Review the Final Financial Report and all documentation.

8.1. Audit all advances and disbursements to grantee in the accounting system.

8.2. Prepare the final disbursement for the grantee if required.

8.3. Ensure that all advances that have been billed to the client are reconciled.

Accountant 9. Notify Grant Staff when all financial documentation is complete and compliant

and ready for final payment upon clearance from the Grants Director per step

15.

Grants Staff 10. Finalize the Grant Evaluation Report with final inputs from Technical Staff and

M&E Manager.

Grants Staff 11. Finalize the audit of the Master Grant File.

Grants Staff 12. Notify the Grants Director that the grant is completed and forward the Grant

Evaluation Report and the Final Financial Report for review.

Grants Director 13. Review and approve the reports.

13.1. Follow up with Grants Staff, Technical Staff, or M&E Manager on any

revisions or clarifications.

Grants Director 14. Perform a final audit of the Master Grant File to confirm all documents as

required in the Project Record Map are attached.

14.1. Notify the Grants Staff that everything is in order and the grant can be

closed.

14.2. Notify the Grants Staff of any missing or incomplete documentation that

is required to close the grant. Set a deadline for completion of the file.

Grants Staff 15. Notify the Accountant that documentation is now complete, and the final

disbursement can be processed accordingly.

Grants Staff 16. Provide grantee with a copy of the activity registration card where this/that

particular grantee is specified.


37

17. Request inventory report and disposition plan from grantee for all NXP over

$5,000. Prepare request to seek CO approval for disposition of NXP or real

property. Timing of NXP disposition approval from CO may vary, depending on

grant award requirements.

Form 12.8: Grant Close-Out and Disposition Letter

DAI/W

Contracts

Manager

18. Disposition of Equipment

Reviews and approves inventory report and disposition plan. Title to and final

disposition of all equipment will vest with the grantee upon successful

completion of grant activities and after DAI has provided a final property

ownership transfer document and established a property disposition plan in

coordination with the grantee.

COP/DCOP 19. Sign the Grant Close-Out Letter.

Grants Staff 20. De-obligate any unspent funds and update TAMIS.

Grants Staff 21. Forward the Grant Close-Out Letter to the grantee.

Grants Staff 22. Update the Grantee Profile in TAMIS with a summary of successes and lessons

learned.

20.1. Circulate Grantee Profile to internal technical staff for application to

subsequent grants or technical work.

Communication

Staff/Technical

Staff and Grants

Staff

23. Submit any reports or publications to DAI/Washington.

• Work Instruction 12.12: Publications and Media

Grants Staff 24. Set the grantee status to “closed” in TAMIS.

4. RECORDKEEPING



usaid economic security program grants under contract …

Documents