Eligible Uses of Title II-Associated Costs, Monetization Proceeds, and Community Development Funds for BHA Awards

This policy supersedes Food for Peace Information Bulletin (FFPIB) 19-01 and is effective as of October 1, 2020. Section 202(e) of the Food for Peace Act requires USAID to make funding available to eligible organizations to assist in interventions, including establishing and enhancing programs under Title II, meeting specific administrative, management, personnel, transportation, storage, and distribution costs, and implementing income-generating, community development, health, nutrition, cooperative development, agricultural, and other developmental activities. Eligible organizations for Section 202(e) and Internal Transportation, Storage, and Handling (ITSH) funding include Private Voluntary Organizations (PVOs) or Cooperatives, Intergovernmental Organizations, and foreign governments for Title II emergency awards. Eligible uses for Section 202(e) funding include direct administrative costs to implement Title II programming, costs associated with U.S. Government commodity when ITSH is not available, RFSA interventions, market-based modalities, and essential interventions to protect program impacts in Title II emergency activities. ITSH costs include direct costs associated with the in-country movement, management, program implementation, and monitoring of Title II U.S. agricultural commodities necessary for distribution and in direct support of eligible Title II activities. Inland freight costs include costs required to move commodities from the discharge port through the transit country in the case of landlocked countries or instances when commodities cannot be delivered to a port in the destination country due to conflict, natural disaster, or other port or logistical constraints. Ocean freight costs include any costs associated with ocean transportation while under the carrier's care and custody and supported by the carrier's bill of lading, contract of affreightment, supplemental bills, and/or filed tariffs. Monetization is an activity allowed under Section 203 of the Food for Peace Act in which U.S. food commodities are sold in local markets in part to generate cash resources for award implementation. Monetization proceeds can be used to support ITSH or Section 202(e) costs. USAID has permissive authority to monetize commodities where appropriate, and the use of monetization requires AO approval. The Monetization Field Manual provides further information on monetization. The BHA Agreement Officer (AO) determines the availability of funding in a particular award, taking into account the availability of funding, statutory requirements, and activity and policy considerations. Cost allowability determinations under individual awards are made by the Agreement Officer.