Award Requirements for Source and Origin of Local, Regional, and International Procurement (LRP)

These definitions aim to reinforce procurement in developing countries, particularly in Africa, and ensure that the program achieves desired objectives in cost, time, and appropriateness. Local procurement refers to the purchase of commodities sourced in the country where they will be distributed. Regional procurement, for FFP purposes, means the purchase of commodities sourced within the same continent as the country where they will be distributed. International procurement, on the other hand, refers to the purchase of commodities sourced outside the continent where they will be distributed. FFP has a preference for supporting markets impacted by the crisis and second for commodities produced near the crisis-affected area. The order of preference for FFP is as follows: local source and local origin, local source and regional origin, regional source and regional origin, local source and international origin, regional source and international origin, and international source and international origin. However, other conditions may serve as a basis for using a less preferred source/origin combination. Applicants expecting to incorporate the Local, Regional, and International Procurement (LRP) modality into their project design should exercise due diligence to determine that procurements will not have adverse impacts on source markets. If markets at any given tier of proximity cannot safely support procurement, they should proceed to the next level up. Additionally, applicants proposing LRP should include analysis of costs relative to U.S. in-kind commodities or document why U.S. in-kind commodities could not be used to respond. Other considerations for local and regional procurement include restrictions on procuring from countries listed under "Upper Middle Income Countries and Territories" or above on the OECD's DAC List of ODA recipients, unless the crisis is occurring in the same country. Regional or international procurement from any upper middle income country or upper income country requires the FFP Director's approval.