Slide 1 FastFacts Feature Presentation June 15, 2010 We are using audio during this session, so please dial in to our conference line… Phone number: 877-468-2134.

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FastFactsFeature Presentation

June 15, 2010

We are using audio during this session, so please dial in to our conference line…

Phone number: 877-468-2134 Participant code: 182500

© 2010 The Johns Hopkins University. All rights reserved.

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Today’s TopicWe’ll be taking a look at…

Procurement and Property Standards

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Today’s Presenter

JoAnn TheysJhpiego

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Session Segments

PresentationJoAnn will focus on property and procurement standards with a special emphasis on source, origin and nationality for commodities and service purchases for USAID.During JoAnn’s presentation, your phone will be muted.

Q&AAfter the presentation, we’ll hold a Q&A session. We’ll open up the phone lines, and you’ll be able to ask questions. JoAnn will answer as many of your questions as time allows.

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Contact Us

If you would like to submit a question during the presentation or if you’re having technical difficulties, you can email us at: [email protected] can also send us an instant message!

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How To View Full Screen

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Survey

SurveyAt the end of this FastFacts session, we’ll ask you to complete a short survey. Your honest comments will help us to enhance and improve future FastFacts sessions.

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Administering a USAID Award – Property and Procurement

Standards

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General Agenda

Review key definitionsReview 22CFR226 – Administration of Assistance Awards to Non-Governmental Organizations

Subpart C—Post-award requirements - property standards, and procurement standards

Review 22CFR228 - Rules on Source, Origin and Nationality for Commodities and Services

Subpart A—Definitions and scopeSubpart B—Conditions governing source and nationality of commodity procurement transactions

Key references

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22CFR226 Definitions

226.2Equipment Tangible Non-expendable Including exempt

property Charged directly to the

award Having a useful life >

1 year An acquisition cost ≥

$5,000 per unit

Equipment - JHU Tangible Non-expendable

Having a useful life > 1 year

An acquisition cost ≥ $5,000 per unit

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Definitions

Federal share of real property, equipment, or supplies means that % of the property's acquisition costs and any improvement expenditures paid with Federal funds.Prior approval means written approval by an authorized official evidencing prior consent.

Your Agreement Officer (“AO”), NOT the Agreement Officer’s Technical Representative – called the “AOTR”

Supplies means all personal property excluding equipment, intangible property, and debt instruments.

226.2

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Property Standards

What is covered in 22CFR226, Subpart C?

Real property (land, buildings, structures)

Federally-owned propertyExempt propertyEquipmentSuppliesIntangible property (trademarks,

patents, copyrights)

226.32

226.33.a

226.33.b

226.34

226.35

226.36

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Equipment

Title vests with recipient, unless otherwise stated in the award documentMust charge non-Federal outside organizations a market rate for useMay use on other USAID programs (first), or other Federally sponsored programs (second)When replacing, use trade-in value or sale proceeds to offset costsUSAID retains financial interestUSAID reserves right to transfer title

226.34.a

226.34.g

226.34.h

226.34.d

226.34.b

226.34.e

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Equipment

Use for intended purposeWhen no longer needed for the original project, use the equipment in connection with other federally-sponsored activities - order of priority:

(1) Activities sponsored by USAID(2) Activities sponsored by other Federal agencies(3) Non-Federal activities

– Current Fair Market Value (FMV) ≥ $5,000, compensate USAID by applying the % of Federal participation in the original cost to the current FMV

(4) No longer needed at all– Request disposition instructions from the Agreement

Officer

226.34.c.1-2

226.34.g

226.34.g

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Property Standards

Maintain proper equipment recordsProperly identify assets (tagging)Document physical inventory

At least once every two years

Maintain adequate internal controlsPerform routine maintenance Maintain and document proper disposition procedures

226.34.f.1

226.34.f.2

226.34.f.3

226.34.f.4

226.34.f.5

226.34.e226.34.f.6226.34.g

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Supplies

Title vests with recipient upon acquisitionAt the end of project, > $5,000 residual unused supplies (combined value)

USAID retains financial interestUse in other Federally-sponsored projectsUse in non-Federal sponsored activities, but compensate USAID

Compensation calculated as with equipment

Must charge non-Federal outside organizations a market rate for use

226.35.a

226.35.a

226.35.b

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• SOURCE = the country from which a commodity is shipped.

• ORIGIN = the country where a commodity is mined, grown or produced.

• NATIONALITY = For purposes of USAID's procurement rules, nationality refers to the place of incorporation, ownership, citizenship, residence, etc. of suppliers of goods and services.

ADS Glossary

22CFR228 Definitions

228.01.l

228.01.j

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Scope

• Applies to goods and services financed with USAID funds– Does not apply to cost share

• Award document identifies the authorized geographic code– 000 = United States– 941 = The U.S. and any independent

country (except foreign policy restricted countries), except the cooperating country

– 935 = Any area or country (except foreign policy restricted countries), including the cooperating country (“special free world”)

228.02

228.11.a

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Scope

• Never purchase from a foreign policy restricted country – Libya, Cuba, Laos, Iran, Iraq, North

Korea, and Syria

228.11.b

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Commodity Source & Nationality

• COMMODITY = any material, article, supply, goods, or equipment– Includes commodities obtained under

a long-term lease; a single lease of more than 180 days, or repetitive or intermittent leases under a single activity or program within a one-year period, totaling more than 180 days, for the same type of commodity

• Some items must be procured from the U.S. (unless prior written approval is obtained)

• Also applies to nationality of suppliers

228.01.a

228.12

228.13.a-c

228.14.a

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Restrictions

Ineligible goods and servicesCannot be procured under any circumstances

Restricted goodsNeed prior approval from the Agreement Officer

Ineligible suppliersCannot procure from firms or individuals whose name appears on the “Lists of Parties Excluded from Federal Procurement and Nonprocurement Programs” (also called the “Excluded Parties List System” or “EPLS”)

Mandatory Standard Provision

#9

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Restrictions

Ineligible goods and services (what you CANNOT buy)

Abortion equipment and servicesLuxury goods and gambling equipmentWeather modification equipmentMilitary equipmentSurveillance equipmentCommodities and services for support of police or other law enforcement activities

Mandatory Standard Provision

#9

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Restrictions

Restricted goods (what you need PRIOR APPROVAL for before buying)

Motor vehicles (includes trucks, cars, buses, motorcycles, utility vehicles, and motorized bicycles)PharmaceuticalsUsed equipmentU.S. Government-owned excess propertyAgricultural commoditiesPesticidesFertilizer

Mandatory Standard Provision

#9

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Restrictions

Special Source goods (what requires procurement from the UNITED STATES)

Motor vehicles (includes trucks, cars, buses, motorcycles, utility vehicles, and motorized bicycles)Pharmaceutical productsAgricultural commodities

Procurement from anywhere OTHER than the United States requires a waiver, in writing, prior to purchase, from the AO.

228.13.a-c

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Restrictions

Motor Vehicle exampleTo purchase any type of “motor vehicle” (truck, car, bus, motorcycle, utility vehicle, or motorized bicycle), you need the following written documentation from your AO (NOT the AOTR)

Prior approval to purchase the motor vehicle, because it is a “restricted” goodA source and origin waiver prior to purchasing the motor vehicle if it is non-U.S. source and origin, because it is a “special source” good

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Local Procurement

• Definition - Procurement of goods and services supplied by local businesses, dealers or producers, with payment normally being in the currency of the cooperating country

228.40

NOTE – Eligibility is based on transaction value, not unit value

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Local Procurement• Unless award says otherwise:

– Locally available US origin commodities with a transaction value $100,000 (excluding transportation)

– Geographic code 935 commodities with a transaction value $5,000

– Professional services contracts $250,000• Not including materials

– Construction services contracts $5,000,000• No limit with fixed-price construction contract

– Commodities/Services only available locally • Examples – utilities, communications, trash

collection, etc.

228.40.b

228.40.a

228.40.e

228.40.d

228.40.c

228.40.f

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Key References22CFR226 – Administration of Assistance Awards to U.S. Non-Governmental Organizations

22CFR228 – Rules on Source, Origin and Nationality for Commodities and Services Financed by USAID (NOTE – includes geographic codes)

ADS Glossary

JHU Definition of Equipment

Excluded Parties List System (EPLS)

JHU Overseas Procurement Policy

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Key ReferencesADS Chapter 310 = Source, Origin and Nationality of Commodities

ADS Chapter 312 – Eligibility of Commodities

Procurement Executive’s Bulletin (PEB) No. 2008-05 – HIV/AIDS Expedited Procedures Package – FAQ’s

Purchasing or leasing non-U.S.-manufactured vehicles and ARVs

Applicable only to PEPFAR-funded programs

Effective 14 February 2008 – 13 February 2013

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ConclusionToday we covered:

Key definitions22CFR226 – Administration of Assistance Awards to Non-Governmental Organizations

Subpart C—Post-award requirements - property standards, and procurement standards

22CFR228 - Rules on Source, Origin and Nationality for Commodities and services

Subpart A—Definitions and scopeSubpart B—Conditions governing source and nationality of commodity procurement transactions

Key references

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We’re going to open the phone lines now!

There will be a slight pause, and then a recorded voice will provide instructions on how to ask questions over this conference call line.

We’ll be answering questions in the order that we receive them.

We’ll also be answering the questions that were emailed to us during the presentation.

If there’s a question that we can’t answer, we’ll do some research after this session, and then email the answer to all participants.

Q&A

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Thank You!

Thank you for participating!We would love to hear from you.

Are there certain topics that you would like us to cover in future FastFacts sessions?Would you like to be a FastFacts presenter?Please email us at: [email protected]

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Survey

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Thanks again!