How to win USAID funding: Tips for local organizations

The United States government doesn’t see institutions located in developing nations as mere aid recipients — for the U.S. Agency for International Development and other foreign aid donors, they’re strategic partners. The agency awards billions in funding every year, and the amount funneled through local institutions is rising. These organizations are also increasingly helping to drive development planning and implementation — a theme at this week’s Devex Partnerships & Career Forum in Manila. As donors from Washington to Brussels and beyond recruit and partner more directly in the communities they work in, local organizations in these countries have new opportunities to win funding and expand their reach. Here are some tips and resources for local organizations looking to secure USAID funding. Understand the latest changes at USAID In early May, USAID launched a new framework organized around 10 principles for working through local systems. The document makes clear the agency’s objective to position “local systems at the center of all our efforts to promote sustainability” and is meant to emphasize the locally focused approach to development that USAID Administrator Rajiv Shah has championed. There has also been progress toward the agency’s contentious goal to funnel 30 percent of its funding through local institutions — meaning partner governments, local businesses, research institutions and nongovernmental organizations — by 2015. The agency announced the goal in 2010 as part of its USAID Forward reform agenda, which is also meant to strengthen metrics for aid effectiveness and invest in science, technology and innovation. According to USAID’s latest data set, the agency increased direct funding to local stakeholders from under 10 percent in fiscal year 2010 to 17.9 percent in fiscal 2013, though questions remain about how USAID tracks funding and the agency’s disproportionate focus on local groups in “strategic” countries like Afghanistan and Pakistan. Know how the competitive process works The average USAID procurement cycle — from the time the agency issues a request for proposals to the time funding is awarded — lasts more than 500 days, a very long time for an organization seeking to address a constantly changing set of challenges. USAID officials have said that the agency is working to make the funding process more streamlined and transparent. In this environment, it’s more important than ever for USAID to demonstrate the rigor of its procurement process and the effectiveness of the projects it funds. This makes it crucial for USAID partners to grasp the ins and outs of the funding process. A good place to start? Understanding the difference between acquisition and assistance awards. Acquisition refers to contracts for obtaining goods and services, while assistance indicates grants or competitive awards that fund the implementation of a particular program. All organizations interested in responding to a solicitation must also register for a DUNS number, a unique, identifying number assigned to each funding applicant, and with the System for Award Management. These registration processes can be complicated, particularly if your organization isn’t familiar with U.S. government procedures or if English is not your first language. Organizations that encounter difficulties should get in touch with the contact listed on the solicitation document. For a full explanation, Devex has mapped out the steps to USAID’s procurement process: Master the art of drafting a winning proposal A great deal of local organizations’ success hinges on submitting effective proposals. Organizations can start by evaluating whether their goals and experience match the stated objectives of the solicitation. It’s also paramount that local groups adhere to the agency’s notoriously complex and time-consuming guidelines. The most common mistake applicants make is not reading all of the agency’s instructions, said Hannah Ricks, a USAID program assistant. Ricks added that this error is particularly costly because there is no communication between reviewers and applicants once proposals are submitted, and proposals missing any required information are automatically discarded. Position your organization as a viable partner Local organizations should think from USAID’s perspective, as a donor agency eager to partner with groups that have on-the-ground expertise but are also sensitive to guarding scarce resources against waste, fraud and abuse. When evaluating potential local partners, donors like USAID look for technical capacity, financial health, social responsibility, cultural compatibility and a good reputation. To allay any possible donor concerns, local organizations should invest in business development, compliance and networking efforts, while ramping up the sophistication of their project monitoring, reporting and financial management. International NGOs and consulting firms looking for local partners often prefer to go with the organizations they know, and they are less likely to proactively seek out new partners. Local groups that want to work with these “prime” contractors can research which organizations have won similar opportunities in the past and look to network with implementing organizations to build relationships and establish their credibility. Take advantage of online resources and in-person networking opportunities USAID provides a virtual training series on the agency’s priorities, budget process and award framework and advises potential partners to monitor the USAID site for updates on priorities and programs in their area of operation. Grants.gov is the public repository for information on grants and cooperative agreements, while notices for contract opportunities are published on FedBizOpps.gov. But since these sites are sprawling and difficult to navigate, most organizations opt to use a separate tender tracking service to monitor funding opportunities from USAID and other donors. (Devex offers one such service.) Finally, local organizations can look out for relevant events. Devex’s Partnerships & Career Forum is one opportunity, but if you didn’t make it to Manila, both USAID and Devex offer regular events to learn more about funding opportunities and best practices in procurement. Many USAID missions offer outreach meetings or consultations with development partners, and details about pre-solicitation workshops and other events are often included in the synopsis of a funding announcement or in an attachment to the announcement. Browse the most comprehensive list of global development organizations, people and funding opportunities — and email Devex if you have any questions. Read more on USAID reform online, and subscribe to The Development Newswire to receive top international development headlines from the world’s leading donors, news sources and opinion leaders — emailed to you FREE every business day.