USAID’s Automated Directives System (ADS), chapter 202.3.7, states that the USAID mission or office and its assistance objective (AO) teams  are responsible for managing the resources made available to them so that planned outputs and results are achieved in a cost-effective and timely manner, in accordance with applicable regulatory requirements.
Federal Acquisition Regulation (FAR) 16.306 (d)(1) states that a cost-plus-fixed-fee completion form contract describes the scope of work by stating a definite goal or target and specifying an end product. This form of contract normally requires the contractor to complete and deliver the specified end product (e.g., a final report of research accomplishing the goal or target) within the estimated cost, if possible, as a condition for payment of the entire fixed fee.
However, if the work cannot be completed within the estimated cost, the government may require more effort without increase in fee, provided the government increases the estimated cost.
An AO team is a group of people with complementary skills who are empowered to achieve a specific foreign assistance result for which they are willing to be held accountable (ADS 200.6(b)).
Source: AUDIT REPORT NO. 1-511-11-006-P JULY 28, 2011
This information is derived from audit reports of the Office of the Inspector General. The source refers to the audit report, which is available on this site as part of the Audit Database Project: an educational tool for compliance with USAID regulations. Please see the disclaimer of this site before using this information.
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- Ensure That Costs Are Appropriate - ADS 596.3.1 - 634.3.2
- Financial Audits of Subrecipients Were Not Completed - ADS 5126.96.36.199
- Mission Could Not Determine Whether Food Storage and Distribution Costs Were Reasonable - ADS 596.3.1 - Food for Peace Act - Office of Management and Budget Circular A-122, “Cost Principles for Non-Profit Organizations,” Attachment A
- Unreasonable Costs Charged to USAID - Office of Management and Budget Circular A-122
- Contract Budgeting Did Not Align With Program Areas - ADS 200.3.2
- Project Funding Was Not Authorized - Title 22 Code of Federal Regulations (CFR) Part 226, Administration of Assistance Awards to U.S. Non-Governmental Organizations, section 226.25, Revision of Budget and Program Plans - (ADS) 303.3.18(a) - ADS 601.3.1