1. 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 Participant code: 182500 © 2010 The Johns Hopkins University. All rights reserved.

2. Slide 2 Todays Topic Well be taking a look at… Procurement and Property Standards

3. Slide 3 Todays Presenter JoAnn Theys Jhpiego

4. Slide 4 Session Segments Presentation JoAnn will focus on property and procurement standards with a special emphasis on source, origin and nationality for commodities and service purchases for USAID. During JoAnns presentation, your phone will be muted. Q&A After the presentation, well hold a Q&A session. Well open up the phone lines, and youll be able to ask questions. JoAnn will answer as many of your questions as time allows.

5. Slide 5 Contact Us If you would like to submit a question during the presentation or if youre having technical difficulties, you can email us at: fastfacts@jhu.edu fastfacts@jhu.edu You can also send us an instant message! GoogleTalk – HopkinsFastFacts@gmail.comHopkinsFastFacts@gmail.com AOL Instant Messenger – HopkinsFastFacts MSN – FastFacts@jhu.edu

6. Slide 6 How To View Full Screen

7. Slide 7 Survey At the end of this FastFacts session, well ask you to complete a short survey. Your honest comments will help us to enhance and improve future FastFacts sessions.

8. Slide 8 Administering a USAID Award – Property and Procurement Standards

9. Slide 9 General Agenda Review key definitions Review 22CFR226 – Administration of Assistance Awards to Non-Governmental Organizations Subpart CPost-award requirements - property standards, and procurement standards Review 22CFR228 - Rules on Source, Origin and Nationality for Commodities and Services Subpart ADefinitions and scope Subpart BConditions governing source and nationality of commodity procurement transactions Key references

10. Slide 10 22CFR226 Definitions 226.2 Equipment 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

11. Slide 11 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 Officers Technical Representative – called the AOTR Supplies means all personal property excluding equipment, intangible property, and debt instruments. 226.2

12. Slide 12 Property Standards What is covered in 22CFR226, Subpart C? Real property (land, buildings, structures) Federally-owned property Exempt property Equipment Supplies Intangible property (trademarks, patents, copyrights) 226.32 226.33.a 226.33.b 226.34 226.35 226.36

13. Slide 13 Equipment Title vests with recipient, unless otherwise stated in the award document Must charge non-Federal outside organizations a market rate for use May use on other USAID programs (first), or other Federally sponsored programs (second) When replacing, use trade-in value or sale proceeds to offset costs USAID retains financial interest USAID reserves right to transfer title 226.34.a 226.34.g 226.34.h 226.34.d 226.34.b 226.34.e

14. Slide 14 Equipment Use for intended purpose When 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

15. Slide 15 Property Standards Maintain proper equipment records Properly identify assets (tagging) Document physical inventory At least once every two years Maintain adequate internal controls Perform 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.e 226.34.f.6 226.34.g

16. Slide 16 Supplies Title vests with recipient upon acquisition At the end of project, > $5,000 residual unused supplies (combined value) USAID retains financial interest Use in other Federally-sponsored projects Use 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.b

17. Slide 17 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

18. Slide 18 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

19. Slide 19 Scope Never purchase from a foreign policy restricted country Libya, Cuba, Laos, Iran, Iraq, North Korea, and Syria 228.11.b

20. Slide 20 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

21. Slide 21 Restrictions Ineligible goods and services Cannot be procured under any circumstances Restricted goods Need prior approval from the Agreement Officer Ineligible suppliers Cannot 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

22. Slide 22 Restrictions Ineligible goods and services (what you CANNOT buy) Abortion equipment and services Luxury goods and gambling equipment Weather modification equipment Military equipment Surveillance equipment Commodities and services for support of police or other law enforcement activities Mandatory Standard Provision #9

23. Slide 23 Restrictions Restricted goods (what you need PRIOR APPROVAL for before buying) Motor vehicles (includes trucks, cars, buses, motorcycles, utility vehicles, and motorized bicycles) Pharmaceuticals Used equipment U.S. Government-owned excess property Agricultural commodities Pesticides Fertilizer Mandatory Standard Provision #9

24. Slide 24 Restrictions Special Source goods (what requires procurement from the UNITED STATES) Motor vehicles (includes trucks, cars, buses, motorcycles, utility vehicles, and motorized bicycles) Pharmaceutical products Agricultural commodities Procurement from anywhere OTHER than the United States requires a waiver, in writing, prior to purchase, from the AO. 228.13.a-c

25. Slide 25 Restrictions Motor Vehicle example To 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 good A 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

26. Slide 26 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

27. Slide 27 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

28. Slide 28 Key References 22CFR22622CFR226 – Administration of Assistance Awards to U.S. Non-Governmental Organizations 22CFR22822CFR228 – 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 Excluded Parties List System (EPLS) JHU Overseas Procurement Policy

29. Slide 29 Key References ADS Chapter 310 ADS Chapter 310 = Source, Origin and Nationality of Commodities ADS Chapter 312 ADS Chapter 312 – Eligibility of Commodities Procurement Executives Bulletin (PEB) No. 2008-05 Procurement Executives Bulletin (PEB) No. 2008-05 – HIV/AIDS Expedited Procedures Package – FAQs Purchasing or leasing non-U.S.-manufactured vehicles and ARVs Applicable only to PEPFAR-funded programs Effective 14 February 2008 – 13 February 2013

30. Slide 30 Conclusion Today we covered: Key definitions 22CFR226 – Administration of Assistance Awards to Non-Governmental Organizations Subpart CPost-award requirements - property standards, and procurement standards 22CFR228 - Rules on Source, Origin and Nationality for Commodities and services Subpart ADefinitions and scope Subpart BConditions governing source and nationality of commodity procurement transactions Key references

31. Slide 31 Were 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. Well be answering questions in the order that we receive them. Well also be answering the questions that were emailed to us during the presentation. If theres a question that we cant answer, well do some research after this session, and then email the answer to all participants. Q&A

32. Slide 32 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: fastfacts@jhu.edu

33. Slide 33 Survey Before we close, please take the time to complete a short survey. Your feedback will help us as we plan future FastFacts sessions. Click this link to access the survey… http://connect.johnshopkins.edu/fastfactssurvey/ http://connect.johnshopkins.edu/fastfactssurvey/ Thanks again!