ADS 306 - Interagency Agreements

1 ADS Chapter 306 Interagency Agreements Partial Revision Date: 03/19/2020 Responsible Office: M/OAA/P File Name: 306_031920 03/19/2020 Partial Revision Text highlighted in yellow indicates that the adjacent material is new or substantively revised. ADS Chapter 306 2 Functional Series 300 Acquisition & Assistance ADS Chapter 306 Interagency Agreements POC for ADS 306: Michael Gushue, (202) 916-2631, Table of Contents OVERVIEW .. 7 PRIMARY RESPONSIBILITIES .. 8 POLICY DIRECTIVES AND REQUIRED PROCEDURES .. 14 The Circumstances Under Which USAID May Use the Facilities and Services of Other Federal 14 How OMB Circular A-76 Affects USAID s Authority to Enter Into Agreements with Other Agencies.

2 14 FAA Section 632(b) Agreements .. 16 General Agreements and When and How They Are 17 PASA Participating Agency Service agreement (PASA) and When USAID Should Use It to Buy Services From Another Federal Agency .. 17 PASA How USAID Now Obtains RSSA-Type Services .. 18 PASA The Extent that PASAs May Make Use of Non-Direct-Hire Personnel .. 19 PASA How Personnel Policies Apply to PASAs .. 20 PASA The Extent To Which a Participating Agency May Contract Out for the Services it Provides under a PASA .. 21 PASA How the Participating Agency Obtains USAID s Approval for Contracting Out .. 22 PASA Documentation and 22 PASA Processing the agreement .. 25 PAPA A Participating Agency Program agreement (PAPA) and When USAID Should Use it to Buy Services from Another Federal Agency.

3 27 PAPA Documentation and Execution .. 28 PAPA Processing the agreement .. 31 USAID s Relationship to a Participating Agency s Contractor under an FAA Section 632(b) agreement .. 33 The Procurement Procedures That the Participating Agency Must Follow Under an FAA Section 632(b) agreement .. 33 USAID May Request or Obtain the Services of a Particular Direct-Hire Employee of Another Agency Under an FAA Section 632(b) agreement 34 Transferal of USAID s Authorities to the Participating Agency Under an FAA Section 632(b) agreement .. 34 03/19/2020 Partial Revision Text highlighted in yellow indicates that the adjacent material is new or substantively revised. ADS Chapter 306 3 Statutory Prohibitions That Are Applicable to USAID s Use of Funds and How They Apply to a Participating Agency Using Those Funds Under an FAA Section 632(b) agreement .

4 35 The Source of Funding (For Example, Operating Expense vs. Program Funds) and How That Source of Funding Affects USAID s Decision to Use PASAs and PAPAs .. 35 The Types of Agreements USAID May Enter Into Under the Authority of FAA 632(b) Other Than PASAs and PAPAs and the Formats That USAID May Use for Such Agreements .. 36 FAA 632(b) Agreements Obligation Funds .. 36 USAID s Responsibilities for Program Accountability and Audit Under FAA Section 632(b) Agreements .. 37 USAID May Supply ( Sell ) its Services to Another Federal Agency under FAA Section 632(b) .. 37 Economy Act Orders .. 37 The Economy Act Orders and When USAID May Use Them to Buy Services From Other Federal Agencies .. 37 Under an Economy Act Order, the Servicing Agency May Contract Out for Goods and Services.

5 38 The Policies and Procedures That Apply to Economy Act Orders from USAID to Other Agencies .. 38 Signing an Economy Act to Order Obligate Funds .. 39 The Form and Content of an Economy Act Order .. 39 USAID Preference to Use an Economy Act Order Over a PASA or PAPA .. 40 The Procedures That Apply When USAID Supplies ( Sells ) its Services to Another Federal Agency .. 40 FAR Part 8 .. 42 The Supplies That USAID Must Buy from Other Federal Agencies Under FAR Part 8 .. 42 Cooperative Administrative Support Units (CASUs) .. 42 The Cooperative Administrative Support Units (CASUs) and When USAID May Enter Into Agreements to Obtain Goods and Services from Them .. 42 USAID s Experience with CASUs .. 44 The General Services Administration (GSA) Schedule Contracts and When USAID May Buy Goods and Services from Another Federal Agency under Them.

6 45 The Franchise Funds, and When USAID May Use the Government Management Reform Act of 1994 to Buy Goods and Services From Another Federal Agency Under It .. 45 Franchise Fund Agreements Under the Government Management Reform Act of 1994 Differ from Economy Act Orders and FAA Section 632(b) Agreements .. 47 03/19/2020 Partial Revision Text highlighted in yellow indicates that the adjacent material is new or substantively revised. ADS Chapter 306 4 GMRA Agreements Documentation and Execution .. 48 When USAID May Buy Goods and Services from the General Services Administration Under the Information Technology Management Reform Act of 1996 .. 48 Indirect Cost Principles .. 50 USAID s Indirect Costs for Reimbursable Programs It Performs on Behalf of Another Agency, and When USAID May Recover Such Costs From the Other Agency.

7 50 Indirect Cost Rate That USAID Should Charge for Reimbursable Programs It Performs for Other Agencies .. 51 Direct Costs That USAID Should Charge for Reimbursable Programs it Performs for other Agencies .. 53 How USAID Will Allocate the Funds It Receives as Reimbursement of Direct and Indirect Costs under Reimbursable Programs .. 54 The Circumstances in Which USAID May Forego Charging the Buying Agency the Full Costs of Carrying Out the Implementing Program .. 54 USAID Deals Differently with the State Department than with Other Agencies when Carrying Out Reimbursable Programs for It .. 54 When USAID May Reimburse Indirect Costs .. 55 When USAID May Reimburse a Participating Agency for Standard Costs .. 56 Transfers and Allocations Under FAA Section 632(a) .. 56 The Transfers and Allocations Under FAA Section 632(a).

8 56 The Differences Between a Transfer and an Allocation Under FAA Section 632(a) .. 57 Obligation of FAA Section 632(a) Transfers and Allocations Funds .. 57 Under FAA Section 632(a), USAID Cannot Transfer or Allocate Funds that Have Already Been Obligated .. 58 The Respective Financial and Programmatic Responsibilities of USAID and the Recipient Agency under FAA Section 632(a) Transfers and Allocations .. 58 The Administrative Authority That Applies to the Obligation and Expenditure of the Funds by the Recipient Agency .. 59 The Forms of Agreements That USAID Uses for FAA Section 632(a) Transfers and Allocations .. 59 The Process and Timeframe for Completing FAA Section 632(a) Transfers and Allocations .. 61 How a Recipient Agency Applies USAID Policies to Activities it Carries Out with Funds it Receives from USAID through Transfers and Allocations under FAA Section 632(a).

9 63 The Role of the Department of State Coordinator Under FAA Section 632(a) Transfers and Allocations of SEED Act and FREEDOM Support Act Funds .. 64 03/19/2020 Partial Revision Text highlighted in yellow indicates that the adjacent material is new or substantively revised. ADS Chapter 306 5 USAID May Receive Transfers or Allocations from Other Agencies Under FAA Section 632(a) .. 65 Details .. 65 Security Issues and Interagency Agreements .. 65 The NSDD-38 Process and How It Affects the Assignment of Participating Agency Personnel to United States Missions Abroad .. 65 The Security Clearance Requirements for Participating Agency Employees .. 66 USAID Interagency Agreements and Documents Numbered for Accounting and other Tracking Purposes .. 66 The Procedures and Guidelines for Preparation of Negotiation Memoranda for Interagency Agreements .

10 67 Completion and Closeout of an Interagency agreement .. 68 Discussion of Some Key Concepts and Issues .. 71 Inherently Governmental Function .. 71 Some Examples of Inherently Governmental Functions that USAID Has Had Other Federal Agencies Perform .. 72 The Basis for USAID to Acquire Technical Assistance from Another Federal Agency .. 73 The Facilities of Another Agency Uniquely Suitable to Provide Technical Assistance .. 74 The Facilities of a Federal Agency Particularly Suitable to Provide Technical Assistance .. 74 Other Justifications That May Allow USAID to Obtain Service from Another Federal Agency .. 76 When Another Agency s Personnel May Occupy USAID Office Space or Receive Logistical Support for Services It Performs for USAID .. 76 How USAID Obtains Goods and Services from Another Federal Agency Using Two or More Distinct (Nonfungible) Funding Sources.