Resources for Implementing Partners

What exactly is a cooperative agreement?

Cooperative Agreement Quiz

1. A cooperative agreement is a mini contract: FALSE
2. A cooperative agreement is a grant with substantial involvement: TRUE
3. The AOR determine what it means to be substantially involved in a cooperative agreement. FALSE

When is a cooperative agreement appropriate?

1. The USAID AO has determined that an assistance award is appropriate.

2. Does USAID anticipate it's own active involvement in certain programmatic elements of the activity during performance?
- No - A grant is the appropriate implementing instrument.

3. Yes - Does USAID anticipate it's own active involvement in certain programmatic elements of the activity during performance?
- No - A grant is the appropriate implementing instrument.

4. Yes - USAID's proposed involvement is considered SUBSTANTIAL INVOLVEMENT, and therefore, the appropriate implementing instrument is a cooperative agreement.

Potential areas of substantial involvement are limited to the following four elements:

1. Approval of the Recipient’s Implementation Plans. If the program description does not establish a timeline in sufficient detail at the time of award, USAID may require approval of the recipient's implementation plan at a later date. This approval can be no more frequently than annually. If this authority is delegated to the AOR, they must ensure that the implementation plan does not inadvertently change the terms and conditions of the award.

2. Approval of Specified Key Personnel. Key personnel are those positions that are considered essential to the successful implementation of the program. This is generally limited to no more than five positions or five percent of recipient employees working under the award, whichever is greater.

3. Agency and Recipient Collaboration or Joint Participation. The AO may authorize the collaboration or joint participation of USAID and the recipient when the Agency believes that it's technical knowledge will benefit the accomplishment of the program objectives. There should be sufficient reason for USAID involvement - and it needs to be tailored to support specific areas of the program description.

4. Agency Authority to Immediately Halt a Construction Activity. USAID may include the statement "The AO may immediately halt a construction activity if identified specifications are not met." The specifications must be attached to the award when it is executed.

Remember! The element(s) of substantial involvement permitted for each cooperative agreement is described in the award document. The AO may delegate the responsibility for the substantial involvement element(s) to the AOR.

Developed by USAID/India’s Regional Financial Management Office and Regional Office of Acquisition and Assistance and the Central and South Asia Acquisition and Assistance Innovation Lab in support of Local Capacity Building.