Wednesday, August 31, 2011

USAID is updating Source, Origin & Nationality Regs

USAID is proposing to update 22CFR228, or commonly known as Source, Origin and Nationality Regulations by submitting a notice for comment to Federal Register (RIN 0412-AA70).  Comments are expected by October 3, 2011.  We hope the new regulation is then finalized within a few months after the comments are received.  (But do not hold your breath, since AIDAR change submitted in 2006 to limit post differential and danger pay to 40 hours per week is still under consideration of the FAR Councils.)

The proposed update will remove the concept of "origin" all together and will simplify the concepts of "source" and "nationality".

In summary, under the new proposed regulations, if the award contains Geographic Code 000 (US), it will mean that commodities and services must be "available for purchase" and "can be serviced if warranted" in the US from/by US entities (legally registered and principle place of business in the US)  and must have their origin in any non-restricted country (i.e. current code 935) and that commodities must be shipped to the cooperating country from US or shipped to a freeport from US before being shipped to the Cooperating Country.

The commodities no longer have to be "made/manufactured in the US" to be eligible.

The above rule will not apply to restricted goods (motor vehicles, ag inputs etc.) and is also above and beyond the blanket waiver for Local Procurement for Code 935 goods and services up to $5Mil per award signed in August of 2011.

Once finalized, we will post the final rule and explain the changes.

Friday, August 12, 2011

Procuring Motor Vehicles with USAID funds

On August 8, 2011 USAID has updated 22CFR228 and ADS 312 with new rules and blanket waivers for procurement of motor vehicles funded by USAID.

Below is the breakdown of the regulations as they stand now for ease of reference: