Memorandum of Understanding (MOU) for Public-Private Partnerships

In some cases, companies may use the term MOU to refer to a legally binding document, but in this context, it is essential that all parties understand and agree that the document is non-legally binding. MOUs are not required for public-private partnerships, but they are strongly recommended, particularly when USAID and a resource partner are providing parallel funding to a common implementing partner. They are frequently used in situations where USAID and a private sector partner are working together on a specific project or initiative. The benefits of using a MOU include ensuring that all parties are in agreement on the partner roles and activities, outlining how decisions about the partnership will be made during implementation, and providing a framework for additional partners to join and expand the partnership. A MOU can also help keep the partnership on track and focused on the original objectives and activities. Typically, an MOU would cover the alliance purpose, partner roles and responsibilities, implementation issues such as alliance governance structure, funding, and reporting and evaluation requirements, and information relating to effective date, duration, amendments, and termination. MOUs must contain critical language issued by USAID's General Counsel's office, which is included in the MOU template. MOUs can be very short and general in scope or longer and more detailed, depending on the specific needs of the partnership. It is essential to consult with the Regional Legal Advisor or the General Counsel's office to determine the right MOU approach for the partnership. The MOU should be completed and signed before any joint activity or resources have been allocated to the partnership. The Parties enter into this MOU while wishing to maintain their own separate and unique missions and mandates, and their own accountabilities. Unless specifically provided otherwise, the cooperation among the Parties as outlined in this MOU shall not be construed as a partnership or other type of legal entity or personality. Each Party shall accept full and sole responsibility for any and all expenses incurred by itself relating to this MOU. Typically, the technical officer will draft the MOU and shepherd it through the appropriate approvals at the Mission or the Washington Operating Unit. Each Mission or Operating Unit can determine their own approval process, but at a minimum, the Regional Legal Advisor or General Counsel's office must approve an MOU, and the Mission Director or appropriate Assistant Administrator in USAID/Washington must sign the final MOU. If there is a global or regional MOU between USAID and a resource partner, the Mission may use a sub-MOU to detail the specific agreements for their activity, and incorporate the terms and conditions of the higher-order MOU by reference.