Action memorandum for the Assistant Administrator, PHA, Dr. Jarold A. Kieffer

Under this new procedure, AID will first contact each cooperating country and grantee to obtain an estimate of the quantity of condoms required to meet program needs for the coming fiscal year. AID/PHA and USAID missions will evaluate grantee and recipient country requests, respectively, to determine if the user has the ability to distribute the condoms requested. Based on these requirements, AID/PHA will then allot funds to permit GSA to contract for condoms under a fixed quantity contract and to transport them to their destinations. Prior to shipment of the condoms, USAID missions will have signed project agreements with cooperating countries specifying the quantity of condoms to be delivered and their transportation costs. AID/PHA will sign similar grant arrangements with the grantees. The cost of the condoms, plus shipping costs, will then be attributed to each bilateral program or grantee by AID"s Office of Financial Management. This new procedure was approved by AID and funded for delivery requirements through FY 75 with three conditions. First, AID"s Office of Population (POP) is required to investigate the prospects for procurement of contraceptives from LDC"s in the geographic areas in which they will be used, and the effect that bulk procurement in the U.S. is likely to have on local LDC condom production. Second, the problems in the current system of attributing centrally-procured oral contraceptives and condoms to user programs must be studied and procedures developed to handle these problems. Finally, POP will have to process the necessary Operational Year Budget changes after ascertaining how the condoms have been allocated to individual country programs/grantees