Local and Regional Food Aid Procurement Pilot Project
Frequently Asked Questions

1. Q. How much funding will be available for the USDA LRP project?

A. A total of $60 million will be available for the USDA LRP project. A breakdown of the available funding is as follows:

FY 2009 $5 million
FY 2010 $25 million
FY 2011 $25 million
FY 2012 $5 million

2. Q. Which countries are eligible to receive USDA LRP project funding?

A. Emergency field projects can occur in any developing country that is experiencing a disaster or food crisis. The priority countries for development projects are Phase I and Phase II countries of the Feed the Future initiative. However, as stipulated in the statute, “in selecting proposals for field-based projects…the majority of selected proposals are for field-based projects that are located in Africa and procure eligible commodities that are produced in Africa.”

3. Q. Can an organization submit an application for qualification and an application for funding simultaneously in order to expedite the approval process?

A. An organization can submit an application for qualification and an application for funding simultaneously, however an application for funding will not be considered until after USDA has determined that the organization is qualified to implement local and regional food aid procurement projects. A qualification determination is not a guarantee of funding.

4. Q. Can a qualified organization submit an application for funding to provide both emergency and development assistance?

A. Yes. An organization can submit an application to provide both types of assistance, provided that USDA has determined that they are qualified to implement both types of projects. However, the application will also have to satisfy all of the criteria for both types of projects, including responses to all of the items identified in Section V. Part (b) of the interim guidelines.

5. Q. Does an eligible organization have to identify all potential purchase countries and recipient countries in advance in its application for qualification for both emergency and development assistance projects?

A. Yes. Eligible organizations are required to identify all potential purchase countries, as well as each potential recipient country for which they may wish to qualify to submit proposals for funding for field-based projects. This requirement has been established in order to ensure that eligible organizations have the knowledge, experience and analytical capacity to carry out a comprehensive market impact assessment in each potential purchase country and recipient country prior to receiving qualification to submit proposals for funding. It should be noted that this requirement is intended to expedite the proposal review process for emergency response projects.

6. Q. Will USDA be providing funding in response to rapid-onset disasters, or will USAID continue to take the lead in this effort?

A. Yes. USDA will be providing funding to enable qualified organizations to respond to rapid-onset disasters. In fact, the qualification process was designed to expedite the proposal review process for eligible organizations requesting funding to respond to rapid-onset disasters.

7. Q. Are there limitations on which countries commodities can be purchased in?

A. Commodities must be produced in and procured from developing countries. In addition, International Purchases are not permitted. An International Purchase is a purchase, directly or through a sub-recipient, in a country that is not on the same continent as the recipient country.  Furthermore, priority will be given to applications requesting funding for purchases in Africa.

8. Q. Are there restrictions on the types of commodities that participants can purchase with USDA LRP funds?

A. Commodities must be produced in and procured from developing countries. Beyond that requirement, there are no restrictions on the types of commodities that participants can purchase with USDA LRP funds provided that they have been approved in advance during the proposal review process. Moreover, qualified organizations are encouraged to submit a list of appropriate substitutable commodities in their proposals in the event that the preferred commodities are unavailable in sufficient quantities at the time of purchase.

9. Q. How long will USDA be accepting applications for qualification?

A. USDA will be accepting applications for qualification until April 1, 2011, unless USDA publishes a notice in the Federal Register to close or extend the application period.

10. Q. How long will USDA be accepting applications from qualified organizations for funding for field-based projects?

A. USDA will be accepting applications/proposals for funding for field-based projects until June 1, 2011, unless USDA publishes a notice in the Federal Register to close or extend the application/proposal submission period. It should be noted however, that applications are being received, and funded, on a rolling basis, thus, proposals submitted are also subject to the availability of funds. After October 1, 2010 preference will be given to applications for funding for emergency projects, as development assistance projects must be for a duration of no less than one year and the implementation of all field-based projects must be completed by September 30, 2011.

11. Q. Has USDA established a maximum limit on the cost of the projects that it will consider for funding?

A. No, but participants must keep in mind that USDA has a limited amount of funding for local and regional procurement projects. $25 million will be available each year from FY 2010-2011. Beyond that timeframe, no additional funding will be made available for the implementation of field-based projects.

12. Q. When must field-based projects be completed?

A. The implementation of all field-based projects and the final project reports must be completed by September 30, 2011.

13. Q. Will any of the $5 million available in FY 2012 be awarded to qualified organizations for the implementation of field-based projects?

A. The $5 million in LRP funds available to USDA in FY 2012 will be used to pay for costs associated with hiring an organization to conduct an independent evaluation of the field-based projects funded by USDA during the course of the pilot project, as well as any outstanding administrative costs incurred by USDA. The implementation of all field-based projects must be completed by September 30, 2011. USDA does not anticipate having any FY 2012 funding available to pay for the implementation of new field-based projects beyond this date.

14. Q. Can commodities purchased with USDA LRP funds be monetized?

A. No. Participants may not sell or barter USDA-funded LRP commodities, except as permitted in Section X of the guidelines, which allows for commodities to be sold solely for use as animal feed if they have been determined to be unfit for human consumption.