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

USAID Procurement Process Steps

USAID (United States Agency for International Development) procurement procedures refer to the established guidelines and processes that govern the acquisition of goods, services, and construction works for projects funded by USAID. These procedures are designed to ensure transparency, fairness, and accountability in the procurement process. Here is an overview of the key components of USAID procurement procedures:

Acquisition Planning:

USAID procurement begins with thorough acquisition planning, which involves identifying the project's procurement needs, determining the procurement method, and developing a procurement plan. This plan outlines the objectives, requirements, estimated costs, and timelines for the procurement process.


Once the acquisition plan is in place, USAID issues solicitations to invite potential vendors and suppliers to submit their proposals or bids. The solicitation documents typically include detailed specifications, evaluation criteria, terms and conditions, and any other relevant information.

Proposal Evaluation:

USAID evaluates the received proposals or bids based on pre-established criteria. The evaluation process may involve technical evaluations, financial assessments, and compliance reviews. The objective is to select the proposal that best meets the project's requirements while ensuring value for money and fairness in the selection process.

Contract Award:

After the evaluation process, USAID awards the contract to the successful bidder or proposer. The award decision is based on the evaluation results, and the selected vendor or supplier enters into a legally binding agreement with USAID.

Contract Administration:

USAID closely monitors and manages the awarded contracts throughout their implementation. This involves overseeing contract performance, ensuring compliance with terms and conditions, reviewing progress reports, and making necessary adjustments or amendments when required. Contract administration also includes managing payments, invoicing, and any necessary dispute resolution processes.

Oversight and Compliance:

USAID maintains rigorous oversight and compliance mechanisms to ensure that procurement procedures are followed correctly. This includes internal audits, reviews, and inspections to verify adherence to regulations, guidelines, and ethical standards. Additionally, external oversight bodies may conduct independent assessments of USAID procurement practices.

Capacity Building and Training:

USAID emphasizes capacity building and training initiatives to enhance the understanding and implementation of procurement procedures. These efforts aim to promote transparency, efficiency, and compliance among USAID staff, implementing partners, and other stakeholders involved in the procurement process.

It is important to note that USAID procurement procedures are subject to the specific rules and regulations of the funding mechanisms and country context. These procedures may vary based on factors such as project size, complexity, funding sources, and local laws and regulations. Therefore, it is essential to consult the official USAID procurement guidelines, handbooks, and resources for detailed and up-to-date information on the specific procedures applicable to a given project or program.

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