ENHANCEment of GRANTS PROGRAM supports mission achievement

 U.S. Trade and Development Agency

Challenge

The U.S. Trade and Development Agency (USTDA) has the dual mission of promoting U.S. exports while developing overseas infrastructure. The Agency accomplishes its goals by partnering U.S. firms with project sponsors in emerging countries to conduct work under the requirements of a governing grant agreement. After years of working through difficulties structuring grant terms agreeable to U.S. firms, and doing its best to determine price reasonableness, USTDA consulted with Williams Adley for analysis, recommendations, and training in the areas of budgeting, pricing, and cost share.  Specifically, USTDA selected Williams Adley, a CPA firm knowledgeable in U.S. Generally Accepted Accounting Principles and foreign assistance grant agreements, to provide:

  • Benchmarks and best practices for determining the reasonableness of labor rates and other costs, especially in a sole-source context.

  • An analysis of the strengths and weaknesses of the “no fee or profit” requirement in the Success Fee and Cost Share Agreement in an accounting and auditing context.

  • Options for determining price reasonableness and cost share, to include the strengths, weaknesses, risks, suggested contract language, potential loopholes, and mitigation of those loopholes.

  • A reference guide and training for USTDA staff on the selected options.

Solution

To advise USTDA on preferred practices and sufficient options for determining price reasonableness and cost share within the constraints and complexities of its unique foreign assistance grant program, Williams Adley performed the following tasks and issued comprehensive deliverables to support actionable recommendations for the Agency:

  • Researched publicly available sources to determine how the U.S. Government defines, assesses, and ensures that costs, including contractor labor rates, are “reasonable” and how cost share is calculated. Data researched included that of foreign assistance agencies, Uniform Guidance such as 2 CFR 200 Subpart E, and General Services Administration and Negotiated Indirect Cost Rate Agreement rates. 

    Deliverable: Government Requirements and Guidelines Summary Report

  • Assessed USTDA’s current grant practices, agreements, and terms and recommended options for determining price reasonableness and cost share, taking into consideration the benefits, risks, and challenges of each option. Led working sessions with USTDA Director and Country Managers to consider the merits and challenges of each option in the context of the Agency’s current environment.  

    Deliverable: Options and Recommendations Report

  • Created Reference Guide for use by USTDA grant personnel to develop an Independent Government Cost Estimate (IGCE) and determine Cost Share percentage for grants to project sponsors (foreign countries) supported by U.S. firms.  The guide included step-by-step instructions with charts and tables as visual aids to promote learning.

    Deliverable: Reference Guide  

  • Conducted Training Webinar for more than fifty USTDA grants personnel to teach the development of an IGCE and determination of appropriate Cost Share amount under foreign assistance grants.  After the webinar, Williams Adley hosted a question-and-answer session to clarify content and ensure proper knowledge transfer.

    Deliverable: Price Reasonableness and Cost Share Webinar

Impact

USTDA’s selection of one of Williams Adley’s proposed price reasonableness and cost share options has positioned the Agency for future success when analyzing cost proposals and negotiating terms with U.S. Firms.

  • USTDA grant practices, agreements, and terms are now supported by best practices and data from reliable industry sources, resulting in grant terms that are more attractive to participating firms and thereby increasing the success of the Agency’s grants program.

  • USTDA grant personnel now have the guidance and tools needed to develop an IGCE and cost share amount for foreign assistance grant projects.  

  • The time and effort spent to determine price reasonableness and cost share is now reduced, leaving more time to assist project sponsors with other qualitative needs.

Williams Adley’s thoughtful approach to enhancing the process for determining price reasonableness and cost share in foreign assistance grants has equipped the Agency to advance its mission of expanding U.S. exports and job creation within U.S. companies nationwide.