1	Local and Regional Purchase Pilot Program Information Session Program Purpose and Main Elements Ron Croushorn Food Assistance Division October 19, 2009
2	Logistics Services Breaks Formal Information Session Audio will be recorded State your name and organization when asking question or providing comments All statements will be considered when preparing final guidelines
3	Program Purpose Fund field-based projects consisting of local and regional purchases in developing countries to assist those affected by disasters and food crises Fund field-based projects that provide development assistance Support a diversity of projects Produce information about methodologies, conditions, and results to be evaluated by third party
4	Main Elements Pre-Implementation Phase Study Guidelines Implementation Phase Qualification (until April 1, 2011) Application (until June 1, 2011) Field Projects (through September 30, 2011) Evaluation Phase Independent Evaluation (November 2011 – June 2012)
5	General Statutory Requirements “Provide grants…to carry out field-based projects that consist of local or regional procurements of eligible commodities to respond to food crises and disasters…” “A portion of funds…for field based projects that provide development assistance for a period of not less than a year” “Select a diversity of projects in food surplus regions, food deficit regions (that are carried out using regional procurement methods) and multiple geographic regions” “Majority of selected proposals are for field-based projects located in Africa…and procure eligible commodities that are produced in Africa”
6	Statutory Requirements for Purchase Conditions “Any eligible commodity that is procured for a field-based project…shall be procured through any approach or methodology that the Secretary considers to be an effective approach or methodology to provide adequate information regarding the manner by which to expedite, to the maximum extent practicable, the provision of food aid to affected populations without significantly increasing commodity costs for low-income consumers who procure commodities sourced from the same markets at which the eligible commodity is procured.”
7	Other Program Considerations Other USG Programs GAO Recommendations on Local and Regional Procurement Food Safety and Quality Market Information Cargo Preference Countries Diversity of Emergency and Development Projects
8	Other USG Programs USDA’s Food for Progress and McGovern-Dole Programs USAID’s Food for Peace Programs USAID’s Local and Regional Purchases USAID’s Development Programs World Food Program Projects Private Voluntary Organization Programs
9	Government Accountability Office (GAO) Recommendations on Local and Regional Procurement Food Safety Market Information Cargo Preference
10	Food Safety and Quality GAO Recommendation: collect evidence on LRP’s adherence to quality standards and product specifications to ensure food safety and nutritional content USDA Response: Commodity quality standards and product considerations included in guidelines Participants will be required to document steps taken to ensure food safety, to enter into written procurement contracts that will stipulate the minimum acceptable quality standards and product specifications and to report on quality, specifications and processes of local and regional procurements Final project evaluation will examine approaches that were followed to ensure food safety
11	Market Intelligence GAO Recommendation: work with implementing partners to improve market intelligence in areas where the U.S.-funded local and regional procurement occurs to ensure minimization of adverse impacts and maximization of potential benefits USDA Response: Share concern that LRP not cause price spikes for essential commodities Participants will be required to have competencies to ensure that appropriate market analyses be conducted and to ensure that they do not compete with host country governments or other buyers for the commodities available USDA will also monitor to ensure adequate market coordination is occurring and that relevant market information is available Final project evaluation will include examination of role of market information
12	Cargo Preference GAO Recommendation: work with Department of Transportation and relevant parties to update Memorandum of Understanding to minimize the cost impact of cargo preference regulations and to resolve uncertainties associated with the application of cargo preference to regional procurement USDA Response: agree that greater clarity on how to interpret cargo preference regulations would be helpful, and the agencies are working through these issues
13	Eligible Countries Statute: “an eligible commodity that is produced in, and procured from a developing country” “Majority of selected proposals are for field-based projects located in Africa…and procure eligible commodities that are produced in Africa” Emergency field projects can occur in any developing country that is experiencing a disaster or food crisis. Development projects can occur in any developing country
14	Comments or Questions?
15	Pilot Purchase Program Information Session October 19, 2009 Applicable Conditions Related to Beneficiaries and Purchases William Whelan Food Assistance Division
16	Beneficiaries and Purchase Conditions “Any eligible commodity that is procured for a field-based project…shall be procured through any approach or methodology that the Secretary considers to be an effective approach or methodology to provide adequate information regarding the manner by which to expedite, to the maximum extent practicable, the provision of food aid to affected populations without significantly increasing commodity costs for low-income consumers who procure commodities sourced from the same markets at which the eligible commodity is procured.”
17	Purchase Conditions (Continued) As noted in the statute, should be made: In a “developing country,” preferably from any market in the affected country or in another country or region within the same continent in which farmers with marketable surplus customarily sell their output In amounts that will not result in an appreciable increase in price in order to “not have a disruptive impact on farmers located in, or the economy of the recipient country or any country in the region in which the eligible commodity may be procured,” “not unduly disrupt world prices for agricultural commodities,” and “not unduly disrupt normal patterns of commercial trade with foreign countries” At a “reasonable market price”
18	Beneficiaries and Purchases: LRP Study: Phases Vulnerable Groups Target Beneficiaries Purchases during Emergencies and Non-Emergencies
19	USDA’s Study: “Lessons Learned” Drawing upon USDA’s analysis of prior purchase experiences, the appropriate and effective use of locally and regionally purchased food aid primarily depends on: Response determination (pre-purchase factors), Purchase implementation (purchase factors), and Delivery, monitoring and evaluation (post-purchase factors).
20	Pre-Purchase: Food Needs First, a credible determination must be made of the food needs of those vulnerable to and/or affected by disasters and crises.
21	Pre-Purchase Phase: Food Aid Appropriateness Second, a credible determination must be made that: food aid is the appropriate means of meeting the food needs of certain vulnerable groups vulnerable to or affected by the disaster or crisis, local and/or regional markets are a desirable source of this food, and/or that other responses are an appropriate means of meeting the food needs of other vulnerable groups.
22	Pre-Purchase Phase: Targeting Plan Third, a comprehensive and well- targeted food assistance delivery plan must be developed to ensure that: Food aid will be well-targeted to the food needs of those vulnerable groups requiring food aid, and that Other well-targeted assistance meets the food needs of those vulnerable groups not requiring food aid.
23	Food Purchase Phase Fourth, food purchases must be made in an appropriate manner that is cost-effective, best meets targeted needs, and does not cause any unintentional harm.
24	Post-Purchase Phase: Food Delivery Modality Fifth, food aid must be delivered in a timely and efficient manner and other food-related assistance is also provided to the vulnerable groups that do not require food aid. Providing other food related assistance can help to stem an increase in the food aid requirement, particularly in response to a disaster or crisis.
25	Post-Purchase Phase: Monitoring and Evaluation Sixth, monitoring of impact on targeted beneficiaries, on markets, and on other non-targeted vulnerable groups is essential.
26	Vulnerable Groups The chronically hungry and food insecure have two types of food consumption-related needs due to: an inadequate ability to purchase the food that the household requires not having enough food available to eat Those affected by a disaster or crisis have two types of food consumption-related needs due to: a reduced ability to purchase the food that the household normally obtains less food available than normal to eat
27	Vulnerable Groups Vulnerable Groups Geographically affected (i.e., those living in a certain area) Special needs groups (i.e., children under 5, etc.) Economically affected (i.e., low-income food buyers) Note: Especially relevant to one of the ‘do no harm’ provisions in the Statute In emergencies, the effects upon each type of vulnerable group varies depending on the type of disaster or crisis and the phase of the disaster or crisis Rapid-onset (e.g., flood) Slow-onset (e.g., drought) Food price crisis In non-emergencies, each of these groups is vulnerable to different chronic conditions of food insecurity
28	Beneficiaries and Buyers Targeted beneficiaries are those vulnerable groups whose specific food needs are being addressed through: Direct food purchases for beneficiaries Food purchases by beneficiaries Intermediary purchases for beneficiaries
29	Direct Purchases as Food Aid for Beneficiaries: Addresses the need to eat Does not address inability to purchase Can be made through local or regional purchases Involves the direct distribution of food Option works well when there is no market or where vulnerable groups are cut off from a market where they normally buy their food
30	Aid for Additional Food Purchases by Beneficiaries: Addresses the need for additional food to eat Addresses the need to purchase additional food Involves no direct distribution of food Purchases likely in local markets where the vulnerable normally buy their food Mimics normal market conditions, and thus helps to keep markets working that are central to keeping the economy functioning
31	Aid for Additional Food Purchases for Beneficiaries: Addresses the need to purchase additional food Can provide access to a community to food for sale to help keep the food market functioning Can involve local or regional purchases by the intermediary Option works well when a food market is in danger of collapse that would create a need for direct food aid for those who could afford to buy food Can have potential developmental benefits
32	Targeting Beneficiaries Through Targeted Types of Purchases Direct purchases for beneficiaries Local and regional purchase by PVOs, WFP etc. Purchases by beneficiaries Income-based Cash provided by PVOs, WFP etc. Voucher provided by PVOs, WFP etc. Non-income based ‘Self-targeted’ nutritious commodities available for targeted low income groups to buy --similar to “generic” brands Intermediary purchases for beneficiaries Local and regional purchase by intermediary in the community (e.g., women-owned hammer mill cooperative)
33	Thank you! Are there any questions?
34	"Eligibility Requirements" Eligibility Requirements Jamie Fisher Food Assistance Division
35	What is an eligible organization? An eligible organization is defined as: (a) A PVO or a cooperative: (1) That is either: Registered with the Administrator of the U.S. Agency for International Development (USAID); or Not registered with the Administrator of USAID and FAS has determined such registration is impracticable; and
36	What is an eligible organization? (cont’d.) (2) Subject to these guidelines, including U.S. audit requirements that are applicable to nongovernmental organizations; or (b) An intergovernmental organization.
37	Applying for Qualification Organizations that meet all of the legal eligibility requirements must submit an application for qualification before they may submit a proposal for funding for field-based projects. Alternatively, eligible organizations may submit both an application for qualification and a proposal for funding simultaneously, but a decision about whether to award funding will not be made until FAS has determined that an organization is qualified to participate in the USDA LRP program.
38	Applying for Qualification (cont’d.) A determination of qualification is not a guarantee of funding for field-based projects. Each proposal for funding for field-based projects will be judged on its own merits, including whether or not it satisfies all of the criteria detailed in the interim guidelines.
39	Important Dates Applications for qualification will be accepted until April 1, 2011. Proposals for funding for field-based projects will be accepted until June 1, 2011. The implementation of all field-based projects must be completed by September 30, 2011.
40	General Qualification Criteria Eligible organizations seeking to qualify to submit proposals for funding for field-based projects must have: Experience implementing and managing food assistance programs and the capability and personnel to develop, implement, monitor, report on and be accountable for USG-funded projects;
41	General Qualification Criteria (cont’d.) Experience working in food-insecure countries or countries that have been affected by food crises or disasters; An adequate financial framework in order to demonstrate fiscal responsibility and accountability; and A person or agent located in the United States with respect to which service of judicial process may be obtained by FAS on behalf of the organization.
42	Key Elements of an Application for Qualification An application for qualification should include the following information: A statement indicating whether an eligible organization is seeking to qualify to submit proposals for funding for emergency programs, development programs, or both; The recipient country or countries for which the organization may submit proposals for funding; The purchase countries that are likely to be identified in a proposal for funding for field-based projects;
43	Key Elements of an Application for Qualification (cont’d.) Information attesting to the organization’s registration in the proposed recipient country or countries, or information demonstrating its ability to become registered to operate in such country or countries; An operating financial account in the proposed recipient country or countries, or a satisfactory explanation for not having such an account and a description of how a local and regional procurement program could be implemented without one; and Information about past experiences in implementing food assistance programs in the proposed recipient country or countries.
44	Other Important Elements of Applications for Qualification for Emergency Programs Eligible organizations seeking to qualify to submit proposals for emergency programs must demonstrate that they have: The analytical skills; and The operational capacity to implement a rapid and effective response to a life-threatening disaster or food crisis such as:
45	Other Important Elements of Applications for Qualification for Emergency Programs Rapid-onset Disasters Floods Earthquakes Tsunamis Slow-onset Disasters Drought Complex Emergencies Food Price Crises
46	Other Important Elements of Applications for Qualification for Emergency Programs (cont’d.) It is also important that the organization has: An in-country presence; and Sufficient personnel on-hand to implement an emergency program, or the ability to quickly hire sufficient personnel on contract in the event that the organization receives funding for an emergency field-based project.
47	Other Important Elements of Applications for Qualification for Emergency Programs (cont’d.) Eligible organizations applying for qualification to submit proposals for emergency funding must also demonstrate that they have the ability to conduct a comprehensive pre-purchase analysis using an appropriate methodology of their choosing in order to:
48	Other Important Elements of Applications for Qualification for Emergency Programs (cont’d.) Quickly and effectively assess the severity of the impact of a food crisis or disaster on the food security situation in the proposed recipient country or countries; Determine whether the most appropriate response is a local or a regional procurement, and describe what the anticipated impact of that procurement will be;
49	Other Important Elements of Applications for Qualification for Emergency Programs (cont’d.) Ensure timely and cost-effective local and regional purchases; and Monitor progress in achieving proposed objectives.
50	Other Important Elements of Applications for Qualification for Development Programs As with emergency programs, organizations seeking to qualify to provide development assistance must demonstrate that they have: The analytical skills; and The operational capacity to implement local and regional purchases for interventions such as activities that:
51	Other Important Elements of Applications for Qualification for Development Programs (cont’d.) Make food more affordable and accessible to chronically food-insecure consumers; Strengthen food and agricultural market systems;
52	Other Important Elements of Applications for Qualification for Development Programs (cont’d.) Strengthen the purchasing power of vulnerable groups by raising small-holder farmer incomes; and Strengthen food safety-net systems in chronically food-insecure developing countries.
53	Other Important Elements of Applications for Qualification for Development Programs Like applications for qualification for emergency programs, eligible organizations applying for qualification to submit proposals for development funding must demonstrate their ability to conduct a comprehensive pre-purchase analysis using an appropriate methodology of their choosing in order to:
54	Other Important Elements of Applications for Qualification for Development Programs (cont’d.) Identify the cause of the food insecurity experienced by the targeted vulnerable groups; Determine the specific food needs of the targeted vulnerable groups; Determine whether the most appropriate response is a local or a regional procurement, and describe what the anticipated impact of that procurement will be;
55	Other Important Elements of Applications for Qualification for Development Programs (cont’d.) Ensure timely and cost-effective local and regional purchases; and Monitor progress in achieving proposed objectives.
56	Additional Considerations USDA will consider an organization’s previous compliance or non-compliance with all of the provisions of 7 CFR parts 1499 and 1599, governing the Food for Progress and McGovern-Dole Food for Education and Child Nutrition Programs when making a qualification determination.
57	Application Procedures for Obtaining Funding for Field-Based Projects
58	Priority Considerations Only applications from qualified organizations will be considered for funding. Qualified organizations should note that when awarding funds for the implementation of field-based projects, USDA will give preference to organizations that satisfy the following criteria: Organizations organized under the applicable laws of the United States, including any of the States, the District of Columbia, Puerto Rico, and the territories and possessions of the United States;
59	Priority Considerations (cont’d.) Organizations not owned or controlled directly or indirectly by any entity not organized under such laws; and Among Private Voluntary Organizations, those that are not-for-profit organizations exempt from Federal income taxes under section 501(c)(3) of the Internal Revenue Code of 1986.
60	General Criteria for Applications for Funding for Field-Based Projects If an organization has only been qualified to carry out one type of program (i.e., an emergency or development program), then FAS will only consider an application for the type of program for which that organization is qualified. Furthermore, FAS will only consider applications for funding activities in recipient countries in which the organization has already been qualified to work. Qualified organizations may submit applications for funding for more than one field-based project during the course of the USDA LRP program, but organizations must submit separate applications for funding for each proposed recipient country.
61	General Criteria for Applications for Funding (cont’d.) Applications for funding should include the following: A completed SF-424; An introduction summarizing the funding request and specifying whether the field-based project will be for an emergency response, development assistance, or both;
62	General Criteria for Applications for Funding (cont’d.) A description of the food security situation in the proposed recipient country and the proposed response; An explanation of the approach and methodology that the qualified organization intends to use to procure the commodities; A plan of operation for the proposed field-based project; A detailed budget;
63	General Criteria for Applications for Funding (cont’d.) A detailed monitoring plan that includes an implementation timeline, baseline indicators, and proposed outcomes that will enable FAS to measure the organization’s progress towards achieving anticipated outcomes; and A statement to attest to the fact that there have been no changes since the organization was qualified by USDA that would adversely affect its capacity or ability to perform the responsibilities described in Section IV(d) of the USDA LRP program interim guidelines.
64	Specific Criteria for Applications for Funding In the section identifying the food security situation and proposed response, qualified organizations should include the following: A description of the disaster or food crisis if the organization is proposing to implement an emergency program; or if it is proposing to implement a development program, an explanation of the cause of the chronic food insecurity;
65	Specific Criteria for Applications for Funding (cont’d.) An explanation of which vulnerable groups have been targeted to receive assistance; An explanation of why food assistance is the appropriate response, including why local or regional procurement is preferred over in-kind food aid, or how local and regional procurement projects will be used to strengthen existing USG in-kind food aid programs;
66	Specific Criteria for Applications for Funding (cont’d.) Relevant data and information on the poverty level, annual food deficit, etc., as well as a description of other food assistance programs being implemented in the proposed recipient country by other PVOs or intergovernmental organizations; and If the proposed field-based project is for an emergency program, an exit strategy for phasing down food assistance.
67	Specific Criteria for Applications for Funding (cont’d.) In the section regarding a plan of operation, qualified organizations should include: The type and quantity of commodities to be purchased with USDA LRP funds; A description of the activities to be implemented during the proposed field-based project; including objectives, anticipated completion date, and if the proposed field-based project is for development assistance, a description of:
68	Specific Criteria for Applications for Funding (cont’d.) Specific interventions to be employed to make food more accessible and affordable to vulnerable consumers; and The specific approach to be employed to improve food security through activities such as raising the incomes of small-holder farmers, linking local purchases to school-feeding activities, strengthening productive safety nets, etc.
69	Specific Criteria for Applications for Funding (cont’d.) Qualified organizations should also include: The geographic area in the proposed recipient country, the anticipated number of beneficiaries and a description of the criteria used to target those beneficiaries; An explanation of whether locally or regionally procured foods will be used to carry out the proposed field-based projects that includes:
70	Specific Criteria for Applications for Funding (cont’d.) A description of the purchase modality, including whether it will be a competitive or non-competitive purchase; The timing and location of the purchase(s); How the purchase(s) will be made at reasonable market prices; and An explanation of how the purchase(s) will not suppress competition among potential suppliers in the market.
71	Specific Criteria for Applications for Funding (cont’d.) For non-competitive purchases, qualified organizations must also describe: Why a non-competitive purchase is necessary; What actions will be taken to ensure the transparency and integrity of the program; and Why the purchase will not have an adverse economic impact either in the short-run or in the long-run on producers, consumers, or market systems in the purchase country.
72	Specific Criteria for Applications for Funding (cont’d.) For all types of programs, qualified organizations must provide a description of any cash or non-cash contributions that the organization expects to receive from non-CCC sources, including from other donors, that are critical to the implementation of the proposed field-based projects, in addition to the following:
73	Specific Criteria for Applications for Funding (cont’d.) A description of any subrecipient that will be involved in the implementation of field-based projects and a description of its responsibilities and capacity to perform those responsibilities; Any government agencies that will be involved and the extent to which their involvement would strengthen or increase their capacity to assist those affected by disasters or food crises, or further economic development in the future;
74	Specific Criteria for Applications for Funding (cont’d.) The method by which the organization plans to inform beneficiaries about the source of the funding, including proper storage, handling and use of the commodities; A description of any port, transportation, or storage facilities that will be used in order to demonstrate that they will be adequate to prevent undue spoilage or waste; Any reprocessing or repackaging of the commodities that will take place prior to distribution;
75	Specific Criteria for Applications for Funding (cont’d.) Assurances that any regionally procured commodities will be imported and distributed free from all customs duties, tolls and taxes; A plan to ensure that regionally procured commodities can be distributed in the recipient country without having a disruptive impact on production, prices or marketing of the same or like products; and Any additional items set forth on the FAS website at: www.fas.usda.gov/food-aid.asp
76	Specific Criteria for Applications for Funding (cont’d.) A detailed budget should include a breakout of the amount of funding required for the implementation of each field based project, including: Commodity procurement costs; Administrative costs; Ocean freight, and/or inland freight and internal transportation, storage and handling costs (ITSH); and Other operational costs. *After a thorough review of the budget, FAS may request additional information. Qualified organizations may submit revised applications for funding at any time prior to the closing date for submission of applications for funding for field-based projects.
77	Thank you! Are there any questions?
78	Local and Regional Purchase Pilot Program Information Session October 19, 2009 Some Analytical and Methodological Considerations for Conducting Successful Field Projects Will Whelan
79	Purchase Conditions “Any eligible commodity that is procured for a field-based project…shall be procured through any approach or methodology that the Secretary considers to be an effective approach or methodology to provide adequate information regarding the manner by which to expedite, to the maximum extent practicable, the provision of food aid to affected populations without significantly increasing commodity costs for low-income consumers who procure commodities sourced from the same markets at which the eligible commodity is procured.”
80	What does “any approach or methodology” mean in the context of “expediting, to the maximum extent practicable, the provision of food aid to affected populations without significantly increasing commodity costs for low-income consumers?” Approaches (will primarily depend upon emergency or non-emergency conditions, and timeliness considerations) Analytical (evidence-based) Methodological (in applying an appropriate methodology for analysis) Operational (in carrying out a project) Methodologies: Analytical (used in the analytical approach) Operational (used in carrying out the operational approach)
81	Specific examples of approaches related to: 1) “expediting the provision of food aid…to affected populations” and 2) not “significantly increasing commodity costs for low-income consumers” Analytical: used to: Identify the type of food need of the appropriate target group or groups Answer the relevant market and price-related questions about “expediting the provision of food aid” to those groups and not “significantly increasing commodity costs for low-income consumers” Methodological: Used to support the analytical approach Operational: used to: Plan the targeting, the food delivery, and the purchase Conduct the purchase “at a reasonable price” Monitor the effects and the delivery to targeted groups
82	Specific examples of methodologies related to: 1) determining who are “those affected”, 2) “expediting the provision of food aid” to them, and 3) not “significantly increasing commodity costs for low-income consumers” Vulnerability analysis: For answering the question who are “those affected” and what do they need? Market analysis: For answering specific market-related questions, particularly: 1) what market has adequate supply for making a purchase? and 2) are low-income consumers purchasing in the markets where the purchase is occurring? Price analysis: For answering specific price-related questions, particularly: 1) how do the local purchase prices compare with import parity purchase prices in order to determine where to purchase?, 2) what prices are low income consumers paying in the markets where purchase are occurring and what prices will they pay after the local/regional purchase? and 3) what purchase price is ”reasonable”?
83	Approaches and Methodologies The focus here will be on providing an example of an approach to conducting some of the analyses that are necessary before a purchase determination can be made. Examples will be given to the application of the approach for making a purchase determination in the case of a high food price event and in the case of a drought. Other analytical approaches are possible, but must address the ‘do no harm’ in an appropriate way. This session will not address analytical or operational approaches related to: making specific purchases, monitoring the impact of those purchases on the target group, or monitoring the effects of the purchase on markets and market participants. If there is interest, USDA will also present a methodological approach for market and price analyses to the appropriate technical audience.
84	An Approach for Analyzing Vulnerability and Purchase Options: Ask key questions at the right times to determine: if a purchase is required (pre-purchase determination), what kind, how and where to purchase (purchase determination and purchase) the effects of the purchase on targeted beneficiaries, on low-income consumers, and on the market Analyze options: targeted beneficiaries purchase response mechanisms Select the best options of those available depending on the needs of the affected group(s)
85	Pre-Purchase: What is the Shock? (Applicable to Emergency Projects) Nature of the disaster (typically natural) Slow-onset ‘shock’ (e.g., drought) Rapid-onset ‘shock’ (e.g., flood) Phase of the disaster Slow-onset (e.g., post-harvest, pre-harvest phase) Rapid-onset (e.g., life-threatening, non life-threatening) Nature of the crisis (typically not natural) Slow-onset (e.g., trend of increasing food prices) Rapid-onset (e.g., sudden food price spike) Prolonged (e.g., refugee) Phase of the crisis Slow-onset (e.g., life-threatening, non life-threatening) Rapid-onset (e.g., life-threatening, non life-threatening)
86	Pre-Purchase: Who Is Normally Vulnerable ? (Applicable to Emergency and Development Projects) The geographically affected unable to buy food primarily due to structural conditions in an area, such as non-functioning markets, non well-functioning markets, and/or source of incomes (livelihoods) unable to eat The special needs groups unable to buy food unable to eat The economically affected unable to buy food primarily due to market performance conditions, such as market fluctuations causing high prices
87	Pre-Purchase: Who is Affected by the Shock and How? (Applicable to Emergency Projects) Is there a decline/disruption in: normal food availability, and/or normal market availability, and/or normal market access, and/or normal food access outside the market? If so, which groups are affected by the decline/disruption and how?
88	Pre-Purchase: Therefore, Which Is/Are the Beneficiary Group(s) to Target the Food Assistance ? The geographically vulnerable Do they need help to purchase food? Do they need help simply to have food to eat? The special needs groups Do they need help simply to have food to eat? The economically vulnerable Do they need help to purchase food?
89	Pre-Purchase: What are the Purchase Options for Assisting the Target Group? direct purchases for beneficiaries purchases by targeted beneficiaries who need to purchase food intermediary purchases for beneficiaries
90	Purchase Option #1: Local and Regional Purchases Direct Purchases for Beneficiaries (Could be appropriate for either geographically vulnerable and/or special need groups, but not for the economically vulnerable) Option implies local and/or regional purchase by PVOs, WFP for direct distribution as a temporary or prolonged safety net
91	Purchase Option #2: Purchases in the Community Purchases by targeted Beneficiaries who need to purchase food (Could be appropriate for either geographically vulnerable and/or economically vulnerable groups, but not special needs groups) Option implies: income-based intervention for geographically vulnerable targeted beneficiaries: cash provided—makes sense if markets working, are integrated and incomes of the vulnerable groups have declined due to the shock voucher provided – similar conditions apply Non-income based intervention for economically vulnerable targeted beneficiaries: ‘self-targeted’ nutritious commodities available for targeted low income groups to buy --similar to “generic” brands
92	Purchase Option #3: Purchases in the Community Intermediary purchases for beneficiaries (could be appropriate for either geographically vulnerable and/or economically vulnerable groups, and possibly special needs groups as well) Option implies: purchases by an intermediary in a community (e.g. women-owned hammer mill cooperative) to keep the food (market) economy in an affected area functioning as normally as possible
93	Example: A Sudden Spike in Food Prices Primarily has negative effects upon the economically vulnerable who normally purchase their food Does not affect the geographically vulnerable and special needs groups who normally do not purchase their food
94	Example: A Sudden Spike in Food Prices: Response Purchase by the economically vulnerable target group addresses their need to buy food that is more expensive Purchase for the targeted economically vulnerable could significantly increase commodity costs for low-income consumers (i.e., other economically vulnerable)
95	Example: A Drought Primarily has negative effects upon the geographically vulnerable who normally eat what they produce Has secondary negative effects upon the economically vulnerable who normally buy their food in markets that are normally supplied by producers in the drought affected area Effects on these two groups vary from the post harvest to pre-harvest period depending upon their food consumption, food sale and food purchase patterns
96	Example: Responses to Drought Purchase for the geographically vulnerable target group who eat what they produce but are unable to do so due to the drought Purchase by the economically vulnerable target group for those who buy what they eat and need help to buy more expensive food Purchases for the target group will be smaller since they will only include purchases for the geographically vulnerable. Thus, the potential problem of a local or regional purchase “significantly increasing the commodity costs for low-income consumers” (i.e., other economically vulnerable) will be reduced.
97	Thank you! Are there any questions?
98	Local and Regional Purchase Pilot Program Information Session October 19, 2009 Some Operational Considerations for Conducting Successful Field Projects Jamie Fisher
99	Commodity Quality and Safety All commodities purchased with USDA LRP funds are required to meet the nutritional, quality and labeling standards of the purchase country and the recipient country. If a recipient country lacks applicable standards, the commodities must meet the specifications or standards set forth in the Codex Alimentarius. For more information about the Codex Alimentarius, please visit the following website: http://www.codexalimentarius.net/web/index_en.jsp
100	Commodity Quality and Safety (cont’d.) For commodities purchased through competitive tenders, participants must specify the minimally acceptable commodity quality standards and product specifications in the tender. Participants must also include the minimally acceptable commodity quality standards, product specifications, price per metric ton and delivery terms in the contract between the participant and the winning commodity vendor(s). Participants will be required to make such contracts available to FAS upon request. Purchases made from commercial wholesalers on a regional market should meet internationally accepted commercial quality standards.
101	Commodity Quality and Safety (cont’d.) Participants must hire a professional commodity inspection service to survey and report on the quality of all commodities purchased under a USDA LRP program agreement, unless otherwise specified in the agreement. Participants will be required to submit the resulting survey reports to FAS upon request.
102	Commodity Origin All commodities purchased with USDA LRP funds must be “produced in, and procured from, a developing country.” Participants must ensure that all unprocessed commodities purchased with USDA LRP funds have been either produced in an agricultural surplus-producing area of the recipient country or an agricultural surplus-producing area of a developing country in the region.
103	Commodity Origin (cont’d.) When purchasing a processed commodity, participants must ensure that the processing took place, and that the primary ingredient in the processed commodity was produced either in the recipient country, or in a developing country in the region. *The primary ingredient is determined on the basis of weight in the case of solid foods, or volume in the case of liquids.
104	Purchase Methods Participants must purchase commodities on a competitive basis, unless one or more of the following conditions apply, and FAS has approved a non-competitive purchase in advance: A spot purchase will speed the delivery of food needed during the life-threatening phase of a disaster or food crisis; The purchase will support small-scale targeted development activities with a highly localized purpose; and/or The purchase will support the economic development and food security-related objective of strengthening a specific market in which low-income farmers purchase their food.
105	Reasonable Market Prices Regardless of the method, participants must purchase commodities at reasonable market prices.
106	Cargo Preference Shipments of regionally procured eligible commodities funded under the USDA LRP program requiring ocean freight transportation are subject to cargo preference requirements.
107	Cargo Preference (cont’d.) Transportation of the commodities and other goods such as bags will be acquired by the participant, with reimbursement by CCC, in the manner specified in the USDA LRP program agreement. The participant shall declare in the transportation contract the point at which the ocean carrier will take custody of the eligible commodities to be transported.
108	Entry and Handling of Locally and Regionally Procured Commodities Participants must make all arrangements for receiving regionally procured commodities in the recipient country, including obtaining appropriate approvals for entry and transit. Participants must store and maintain the commodities in good condition from the time of delivery at the port of entry or the point of receipt from the originating carrier until their distribution. Participants shall, as provided in the agreement, arrange for transporting, storing, and distributing the commodities from the designated point and time at which title to the commodities passes to the participant by contracting directly with suppliers of services.
109	Thank you! Are there any questions?
110	Local and Regional Purchase Pilot Program Information Session October 19, 2009 Agreements Jamie Fisher
111	Key Terms and Elements of a USDA LRP Agreement After FAS has approved an application for funding from a qualified organization, FAS will develop an agreement that will set forth the obligations of both CCC and the participant. The agreement will clearly state that USDA LRP funds shall not be used for any expenses incurred by a participant prior to the date of the agreement, or after an agreement has been suspended or terminated, unless otherwise approved by FAS.
112	Key Terms and Elements of a USDA LRP Agreement (cont’d.) An agreement will include a budget that sets forth the maximum amounts that may be expended by a participant with USDA LRP funds. *A participant may make adjustments to this budget without the prior approval of FAS only as specified in the agreement.
113	Key Terms and Elements of a USDA LRP Agreement (cont’d.) FAS may require a participant to complete a training program designed to ensure that the participant is aware of, and has the capacity to complete, all required reporting and audit functions set forth in the guidelines. Participants will be prohibited from using USDA LRP funds to acquire goods or services, either directly or indirectly, from certain countries that will be specified in the agreement. Violations of this provision will be basis for immediate termination of the agreement by CCC, in addition to the imposition of any other applicable civil and criminal penalties.
114	Key Terms and Elements of a USDA LRP Agreement (cont’d.) The agreement will prohibit the resale or transshipment of the commodities to any country other than the recipient country. The agreement will prohibit the use of the commodities for any purpose other than food aid. FAS may choose to provide LRP funds under a multi-year agreement to allow the implementation of field-based projects until September 30, 2011.
115	Funding Under an Agreement Participants will be provided funds on a reimbursement basis, unless other arrangements have been made as per the agreement. Participants may request an advance of the funds specified in the agreement if: The request is received earlier than 60 days after the date of a previous advance made in connection with the same agreement; or Any required report, as required in the agreement, is more than six months in arrears.
116	Funding Under an Agreement (cont’d.) Except as otherwise specified in the agreement, the participant shall deposit and maintain in a bank account located in the U.S. all funds advanced by CCC. Participants are required to remit semi-annually, all funds advanced by CCC. Participants are required to return to CCC any funds that have not been obligated as of the 180^th day after the advance was made. Such funds and interest earned must be returned in U.S. dollars to FAS within 30 days of such date.
117	Payments to Suppliers Suppliers of commodities and transportation services shall seek payment according to the purchase contract with the participant. A list of documents required to secure payment from FAS for commodities and transportation services provided by suppliers is listed in Section VII of the guidelines. These documents must be submitted to FAS regardless of whether funds are provided in advance or on a reimbursement basis.
118	Claims for Lost or Damaged Commodities Participants are responsible for pursuing claims for lost or damaged commodities valued at $20,000 or more. Although participants are not required to pursue claims for lost or damaged commodities valued at less than $20,000, participants are responsible for notifying FAS promptly in the next report required to be filed as per the guidelines, or as otherwise specified in the agreement.
119	Claims for Lost or Damaged Commodities (cont’d.) If FAS determines that a participant is not exercising due diligence in the pursuit of a claim, FAS may require the participant to assign its rights to pursue the claim to FAS. Participants may retain funds obtained through a claims collection action initiated by it, or recovered pursuant to an insurance policy or other form of indemnification, but such funds shall only be used for purposes approved in advance by FAS.
120	Claims for Lost or Damaged Commodities (cont’d.) CCC will retain any funds obtained as a result of a claims collection initiated by it under this section; provided, however that FAS will use a portion of such funds to reimburse the participant for expenses incurred by it, as deemed appropriate by CCC, on a prorated basis.
121	Use of the Locally and Regionally Procured Commodities Participants must use the locally and regionally procured commodities in accordance with the agreement. Participants shall not permit the distribution, handling, or allocation of the commodities on the basis of political affiliation, geographic location, or the ethnic, tribal, or religious identity or affiliation of potential consumers or beneficiaries.
122	Use of the Locally and Regionally Procured Commodities (cont’d.) Participants may not sell or barter USDA-funded LRP commodities, except as permitted in Section X of the guidelines. Monetization of the USDA-funded LRP commodities is not permitted.
123	Recordkeeping and Reporting Requirements In addition to the standard reporting requirements noted in Section XIV of the guidelines, participants will be required to provide information specific to local and regional procurement for the purposes of facilitating an evaluation of all programs funded during the course of the pilot program. Participant shall submit to FAS, not later than September 30, 2011, the following information for each field-based project implemented with USDA LRP funds: With respect to each relevant market in which an eligible commodity was procured, a description of:
124	Recordkeeping and Reporting Requirements (cont’d.) The prevailing and historic supply, demand, and price movements of the market (including the extent of competition for procurement bids); The impact of the procurement of the eligible commodities on producer and consumer prices in the market; Each government market interference or other activity that might have significantly affected the supply or demand of the eligible commodity in the area in which the local or regional procurement occurred;
125	Recordkeeping and Reporting Requirements (cont’d.) The quantities and types of eligible commodities procured in the market; The time frame for procurement of each eligible commodity; and The total cost of the procurement of each eligible commodity (including external and internal transportation, storage, handling and administrative costs); and
126	Recordkeeping and Reporting Requirements (cont’d.) 2. An assessment regarding: Whether the objective of the intervention was accomplished; The effectiveness of the procurement methodology used; The impact of that methodology on local and regional agricultural producers (including large and small scale agricultural producers), markets, and low-income consumers in both the purchase country and the recipient country; The impact of the project on the food security of the targeted beneficiaries;
127	Recordkeeping and Reporting Requirements (cont’d.) The nutritional value, quality and safety of the food received by the targeted beneficiaries; The length of the period beginning on the date of the signing of the agreement and ending on the date of the final delivery of eligible commodities to the targeted beneficiaries under the agreement; and Any other information required by FAS under an agreement.
128	Thank you! Are there any questions?