USAID Procurement Procedures


Definition of Procurement:

Procurement is the process of acquiring goods, supplies and services. It includes:

  • Equipment, spare parts & supplies for program activities
  • Equipment, office furniture & supplies for project offices
  • Construction or Architect /Engineering Services
  • Technical assistance by individuals or organization

Procurement Policy Requirements:

USAID eligibility requirements include:

  • A written code of conduct preventing and addressing conflict of interest
  • Open and free competition
  • Price or cost analysis
  • Any contract/agreement should include provisions
    • Administrative
    • Contractual
    • Legal remedies
      • For contractor violation of terms; and suitable provisions for termination by the recipient.

Best Practices of USAID Project Recipient's in Procurement:

At a minimum:

  • Avoid purchasing unnecessary items/services
  • All solicitations should provide for: clear and accurate description, requirements that a bidder must fulfill; description of technical requirements; specific features
    • Remember to compare ‘apples with apples’
  • Procurement made with responsible contractors
    • Based on best value to organization (if not the lowest price, the reason must be documented)
  • Make procurement documents available to USAID

USAID Procurement Thresholds:

Following are the USAID procurement thresholds:

  • $3,000 (micro-purchase threshold): over this transactional amount you must obtain at least 3 quotations and conduct analysis to justify vendor selection.
  • $150,000 (simplified acquisition threshold): requires “full and open competition”. You must issue solicitation publicly and establish criteria for evaluating submissions

USAID Procurement Documentation Needs:

  • Your documentation should tell the “procurement story” without the need for additional verbal explanation. The procurement story (file) should include:
  • Request for Quotations or Request for Proposals (including internet /newspaper postings) – if required
  • Quotations obtained
  • Bid analysis
  • Evaluation committee outcomes, and justification of vendor selection based on clear criteria
  • Depending on organizational policy, a checklist should be developed to ensure that the organization is regularly keeping standard documentation
  • Approval and/or waiver from USAID (if applicable)
  • Approval from organization signatory policy (as applicable)
  • GLAA generated , Signed Purchase Order (PO)/Contract/Agreement.
  • Confirmation of receipt of item/Signed Property Management Letter (if recipient other than organization)
  • Copy of Vendor’s Invoice (stamped “PAID”)
  • Relevant correspondence, memos, e-mails, faxes, records of conversations collected throughout the procurement process
  • Terrorism searches