AI_ Notice of Funding Opportunity DFOP0018586.docx

NOFO

Notice of Funding Opportunity (NOFO)

Artificial Intelligence for American Competitiveness and Economic Security (AI-ACES) in South Asia Bureau of South and Central Asian Affairs (SCA), Department of State Opportunity number: DFOP0018586 Application deadline: 08/02/2026

Contents

U.S Department of State Bureau of South and Central Asian Affairs (SCA) Notice of Funding Opportunity

A. Basic Information

1. Overview

Funding Instrument Type: Cooperative Agreement.

Program Performance Period: Proposed program should be completed in 36 months or less.

This notice is subject to availability of funding.

2. Executive Summary Priority Region: South Asia [Applicants must submit proposals that target 3 or more of the following priority countries: Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, Sri Lanka] Executive Summary The U.S. Department of State, Bureau of South and Central Asian Affairs Office of Foreign Assistance (SCA/FA) announces an open competition for the Artificial Intelligence for American Competitiveness and Economic Security (AI-ACES) program in South Asia which aims to advance U.S. strategic interests in South Asia by deploying American AI technology across partner governments’ critical infrastructure and strategic economic sectors - directly countering Chinese technological influence in the region. This program will deliver secure, U.S.-made AI technology in critical infrastructure, provide policy support, workforce development, and deployment assistance.

The AI-ACES program seeks to counter Chinese influence in South Asia by reducing financial and technical barriers that have favored technology from the People's Republic of China by enhancing data governance and cybersecurity and promoting the adoption of American AI standards among South Asian partners.

B. Eligibility

1. Eligible Applicants The following organizations are eligible to apply:

· U.S. non‑profit/non-governmental organization with or without the 501(c)(3) of the U.S. tax code, including think tanks and civil society

· Foreign-based non-profit organizations/non-governmental organizations

· U.S.-based Public and private institutions of higher education

· U.S. For-profit organizations or businesses

· Public International Organizations and Foreign Public Entities

2. Cost Sharing or Matching (Cost Sharing not required) The non-Federal share of costs, frequently called “cost share” or “matching costs”, refers to that portion of the program or program costs not borne by the Federal Government. This may include cash and third-party in-kind contributions. These costs must reflect the realistic capacity of the applicants and any third-party contributors.

Providing cost sharing, matching, or cost participation is not an eligibility factor or requirement for this NOFO and providing cost share will not result in a more favorable competitive ranking. Per 2 CFR §200.306, items that are proposed for cost share must be allowable per 2 CFR §200, Subpart E—Costs Principles.

3. Other Eligibility Requirements Any applicant with an exclusion in the Exclusions section of the System for Award Management (SAM.gov) and/or has a current debt to the U.S. government is not eligible to apply for an assistance award in accordance with the OMB guidelines at 2 CFR 180 that implement Executive Orders 12549 (3 CFR, 1986 Comp., p. 189) and 12689 (3 CFR, 1989 Comp., p. 235), “Debarment and Suspension.” Additionally, no entity or person listed in the Exclusions section of SAM.gov can participate in any activities under an award. All applicants are strongly encouraged to review the Exclusions section in Sam.gov to ensure that no ineligible entity or person is included in their application.

C. Program Description AI-ACES aims to deploy American AI technology securely in U.S. partners’ strategic economic sectors and infrastructure. The applicant must provide AI deployment, mentoring, and capacity building for selected South Asia governments’ critical infrastructure and strategic economic partners. The specific strategic economic sector(s) and organizations (including government, public institutions like utilities, and private companies) targeted in each country for support will be developed in consultation with the Department of State and host country governments and based on the geopolitical and economic factors of each country. The applicant must possess demonstrated technical and governance policy experience in the region, experience in conducting workshops, AI literacy for all roles, and leadership skills to drive change and ensure alignment.

1. Goals and Objectives The goal of AI-ACES is to advance U.S. strategic interests in South Asia by deploying American AI technology across partner governments’ critical infrastructure and strategic economic sectors Objective 1: Identify and deploy U.S. AI infrastructure or technology needed to support key sectors (sustainable development) in 3 or more South Asian countries enhancing data governance and cybersecurity standards. Illustrative activities under this objective include but are not limited to:

· Assess, select, and procure appropriate U.S. AI technologies

· AI Skill Development

· Partner with AI leaders in government, academia, and critical infrastructure to develop training programs that build a local pipeline of AI professionals skilled in procuring and deploying secure U.S.-origin AI technology, reducing reliance on foreign intermediaries.

· Collaborate with industry regulators and infrastructure operators to establish common skill sets, certifications, and career paths for AI implementation and maintenance.

· Work with partners to assess workforce needs, identify skill gaps, and promote training and standards that support the American AI tech stack as the global benchmark. They will also facilitate knowledge transfer through mentorship, public-private partnerships, and structured certification pathways to enhance career growth and national capabilities.

Objective 2: Create a robust policy environment, while simultaneously reducing the risks of interference and exploitation of AI systems and data in 3 or more South Asian countries. Illustrative activities under this objective include but are not limited to:

· Policy Development:

· Support the creation and / or execution of national AI strategies, including the U.S.-India initiative, Transforming the Relationship Utilizing Strategic Technology (TRUST).

· Support the global deployment of American AI technology packages initiative to allies and partners, aiming to strengthen U.S. leadership in AI and reduce reliance on adversary-developed technologies.

· Build partnerships among government, academia, and the private sector to advance artificial intelligence, ensuring that existing and emerging technologies are protected through trusted vendors.

· Help regional governments establish governance data models to ensure that digital infrastructure across cross-border economic arrangements upholds national data sovereignty.

· Conduct consultations, develop actionable policy playbooks, and refine policies as needed. Additionally, the program will strengthen coordination among U.S. agencies involved in technology diplomacy to ensure AI governance aligns with U.S. norms and prevents the spread of surveillance practices seen in the People's Republic of China (PRC).

· Mentorship and Sustainable Learning

· Provide on-the-job coaching and short-term support to help organizations design and deploy the American AI stack and transfer relevant technical knowledge.

· Help ministries and operators build technical and regulatory expertise by teaching practical skills for evaluating AI systems, understanding emerging risks, and establishing frameworks that encourage innovation.

· Support cross-border connectivity. This includes creating cross-border data agreements that support U.S. cloud service providers (CSP), secure shared authentication, and protect against cybersecurity threats, as well as promoting standardized CSP platforms, which will help American AI gain wider adoption and build preferred technology stacks.

· Improve digital governance and enhance oversight within the AI technology stack, ranging from basic digital governance competencies to technical assistance in model selection and data integrity for specific applications.

2. Outcome(s) Applicants are encouraged to include additional outcomes and indicators as appropriate:

Overarching Outcome:

Increased U.S. AI adoption and readiness for U.S. exports, which contribute to economic productivity and public service delivery. To be measured through a combination of quantitative adoption rates, sectoral and regional indicators, and capability benchmarks that reflect both economic productivity and public service delivery.

Indicator 1: By the end of the program, at least 3 South Asian countries will have adopted and began customizing data governance and cybersecurity standards that proactively address risks posed by Chinese-linked technology and financing mechanisms, reducing reliance on such infrastructure in the digital sector.

Indicator 2: By the end of the program, at least 100 small- and medium-sized enterprises (SMEs) across South Asian countries will be trained and certified to configure and deploy American AI solutions within South Asian government institutions and critical infrastructure sectors.

Indicator 3: By the conclusion of this program, targeted and strategic interventions will have been implemented across three key areas: policy development, mentorship and upskilling, and workforce capability building, resulting in a measurably stronger and more skilled AI workforce across participating South Asian countries.

Indicator 4: By the end of the program, at least three U.S. partners in the Indo-Pacific will have procured American IT equipment and technologies, precluding reliance on Chinese-linked alternatives.

3. Substantial Involvement The Bureau of South and Central Asian Affairs’ Office of Foreign Assistance, SCA/FA, anticipates awarding a cooperative agreement. The distinction between grants and cooperative agreements revolves around the existence of “substantial involvement.” Cooperative agreements require greater federal government participation in the program. SCA/FA will undertake reasonable and programmatically necessary substantial involvement. Under this cooperative agreement, the implementer will further work with and seek approval from the Program Manager, Grants Office Representative (GOR), and Grants Officer (GO) on the following:

· Collaboration in establishing annual program objectives and approval of an annual work plan;

· Collaboration in identifying, prioritizing, and determining program ideas and programs;

· Collaboration in determining corrective actions, when necessary;

· Specific areas of substantial involvement will be dependent upon the objectives of the proposal and outlined in the final Agreement. The final determination on award mechanism will be made by the Grants Officer.

D. Application Contents and Format Please follow all instructions below carefully. Proposals that do not meet the requirements of this announcement or fail to comply with the stated requirements will be ineligible.

Applicants are only allowed to submit one proposal per organization. If more than one proposal is submitted by an applicant, only the first time-stamped submission will be reviewed.

To ensure that all applications receive a balanced evaluation, the review panel will review from the first page of each section up to the page limit and no further. For all application documents, please ensure:

· All documents are in English. If an original document within the application is in another language, an English translation must be provided (please note the Department of State, as indicated in 2 CFR 200.111, requires that English is the official language of all award documents). If any document is provided in both English and a foreign language, the English language version is the controlling version;

· All budgets are in U.S. dollars.

· All pages are numbered.

· All documents are formatted to fit 8 ½ x 11 paper, and:

· All documents are single-spaced, 14-point Times New Roman font, with 1-inch margins. Captions and footnotes may be 10-point New Times Roman font. Font sizes in charts and tables, including the budget, can be reformatted to fit within 1 page width.

The following documents are required:

1. Mandatory application forms

· Completed and signed SF-424, SF-424A, and SF-424B forms. (OPTIONAL but strongly encouraged for Public International Organizations and Governmental institutions)

· Organizations that engage in lobbying the U.S. government, including Congress, or pay for another entity to lobby on their behalf, are also required to complete the SF-LLL “Disclosure of Lobbying Activities” form (only if applicable).

2. Cover Page/Executive Summary Page (not to exceed one (1) page, preferably as a Word document) Cover Page/ Executive Summary stating the organization name, program title proposal date, proposed start and end date, proposed target countries, point of contact name and email, and brief purpose of the program.

3. Proposal Narrative (15 pages maximum) The proposal should contain sufficient information that anyone not familiar with it would understand exactly what the applicant wants to do. The proposal narrative must include the following:

· Introduction to the Organization: A description of past and present operations, showing ability to carry out the program, including information on relevant or similar types of programs. Information on previous grants or cooperative agreements from the State Department and/or U.S. government agencies.

· Problem Statement: Clear, concise and well-supported statement of the problem to be addressed and why the proposed program is needed.

· Program Methods and Design: Describe how the program is expected to work to solve the stated problem and achieve the goal. Include a logic model as appropriate.

· Goal and Objectives: The “goal” describes the broader, long-term outcome or intended concept. Goals do not include timelines or methods for achievement. Rather goals are general statements of a desired result Programs generally have one goal that is only one sentence. Objectives, unlike goals, are brief clear statements that describe what will be done within the specific timeframe to help achieve or advance the goal. Objectives are applicant focused and should be SMART: Specific, Measurable, Achievable, Relevant, and Time-bound.

· Activities or Work Plan: Describe the actions that will need to be undertaken under each objective. Should be clearly developed and sufficiently explain the resources and time requirements (inputs) and things done or produced (outputs) to achieve the intended objectives. Where appropriate, identify target areas, or where actions are happening, participant groups or selection criteria for participants; how relevant stakeholders will be engaged; actions taken by consultants, sub-recipients or vendors as appropriate/relevant.

· Outcomes: The results or effects of the objective(s). What are the detailed, measurable statements that outline the end results? Outcomes are target-audience focused. What will the benefitting individuals, countries or audiences have learned, accomplished or be able to do after the project has been completed? Collectively, outcomes advance or further the program goal.

· Risk Analysis: Identify the internal and external risks associated with the proposed project, rate the likelihood of the risks, rate the potential impact of the risks on the project, and identify actions that could help mitigate the risks.

· Future Funding or Sustainability Applicant’s plan for continuing the program beyond the grant period, or the availability of other resources, if applicable.

4. Proposed Program Schedule and Timeline (preferably as an Excel sheet): Provide a proposed timeline of the overall program including activities, monitoring efforts and closeout. Sufficient time should be included to conduct and finalize internal/external evaluations and allow any sub-recipients time for final reporting, as applicable.

5. Key Personnel: Represents individuals both inside and outside the applicant’s organizations, carrying out administrative and/or technical responsibilities, who are integral to the success of the program. Provide names, titles, roles and a brief explanation of experience/qualification. Include the proportion of their time funded by the federal share of the program.

6. Program Partners: List the names and type of involvement of key partner organizations and sub-awardees.

7. Project Monitoring and Evaluation Plan: This is an important part of successful grants or cooperative agreements. Throughout the timeframe of the grant or cooperative agreement, how will the activities be monitored to ensure they are happening in a timely manner, and how will the program be evaluated to make sure it is meeting the goals of the grant or cooperative agreement?

8. Detailed Itemized Budget Applicants not recognized as Public International Organizations or Governmental Institutions are required to submit detailed budget information according to the OMB cost categories (see SF-424A). Budget expenses should be submitted preferably as one Excel workbook and include three (3) columns describing the request to SCA/FA, any required or voluntary cost sharing, and the total budget. Costs must be in whole U.S. dollars. The attached “Budget Template FY26 with MTDC Calculation_Final)” is the preferred format for submission. Detailed itemized budgets for sub-grantees should be included as additional tabs within the Excel workbook (if available at the time of submission).

Applicants recognized as FPEs or PIOs are not required to submit detailed budget information according to the OMB cost categories. A detailed budget broken down by activity may be provided instead. Costs must be in U.S. dollars.

9. Budget Justification Narrative Preferably as a Word document, explain the methodology considerations for each specific itemized line identified in the itemized budget or activity-based budget. The budget narrative should support the activities described in the proposal and provide additional information that might not be readily apparent. Do not simply restate what is represented numerically in the budget, i.e. salaries are for salaries or travel is for travel. If the detailed budget includes sub-awards, please include a separate budget narrative for each sub-award budget. Provide details on the purpose of costs, reasonability of costs, cost price analysis, allocation methodology, explain any yearly variances in unit prices, and tie expenses to program activities and/or objectives where appropriate. Information should describe prices used when costs have been averaged for the purposes of the calculation; when or if there is a reduction in a typical cost due to leveraging other resources; when costs are inflated due to specific considerations; or when untypical costs are included due to special circumstances. Provide information on considerations such as translations, multi-media approaches as also described in the proposal narrative, procurement by local vendors or the need to import due to unavailability, specific needs of different audiences, costs related to country limitations, etc.

10. Attachments

· Letters of support from program partners

· If your organization has a Negotiated Indirect Cost Rate Agreement (NICRA) and includes NICRA charges in the budget, include your latest NICRA as a PDF file.

· Official permission letters, if required for program activities.

E. Submission Requirements and Deadlines

1. Address to Request Application Package Applicants can find application forms, kits, or other materials needed to apply on grants.gov and MyGrants under the announcement title “Enhancing American Competitiveness and Economic Security through AI in South Asia,” funding opportunity number “DFOP0018586.”

Department of State Contacts If you have any questions about the application process or technical questions related to this opportunity, please contact: SCA-FA-ProgramOfficers-Only-DL@state.gov.

2. Unique entity identifier and System for Award Management (SAM.gov) Required Registrations All organizations, whether based in the United States or in another country, must have a Unique Entity Identifier (UEI) and an active registration in SAM.gov. A UEI is one of the data elements mandated by Public Law 109-282, the Federal Funding Accountability and Transparency Act (FFATA), for all Federal awards. An applicant must maintain an active registration while it has a proposal under review by the Department and must continue to keep the registration active for the entire duration of the period of performance of any Federal award that results from this NOFO.

The 2 CFR 200 requires subrecipients to obtain a UEI. Please note the UEI for subrecipients is not required at the time of application but will be required before an award is processed and/or directed to a subrecipient.

Note: The process of obtaining or renewing a SAM.gov registration may take anywhere from 4-8 weeks. Please begin your registration as early as possible.

· Organizations based in the United States or that pay employees within the United States will need an Employer Identification Number (EIN) from the Internal Revenue Service (IRS) and a UEI prior to registering in SAM.gov.

· Organizations based outside of the United States and that do not pay employees within the United States do not need an EIN from the IRS but do need a UEI prior to registering in SAM.gov.

· Organizations based outside of the United States that do not intend to apply for U.S. Department of War (DoW) awards are no longer required to have a NATO Commercial and Government Entity (NCAGE) code to apply for non-DoW foreign assistance funding opportunities. If an applicant organization is mid-registration and wishes to remove an NCAGE code from their SAM.gov registration, the applicant should submit a help desk ticket (“incident”) with the Federal Service Desk (FSD) online at www.fsd.gov using the following language: “I do not intend to seek financial assistance from the Department of War. I do not wish to obtain an NCAGE code. I understand that I will need to submit my registration after this incident is resolved in order to have my registration activated.”

Organizations based outside of the United States and that DO NOT plan to do business with the DoW should follow the below instructions:

Step 1: Proceed to SAM.gov to obtain a UEI and complete the SAM.gov registration process. SAM.gov registration must be renewed annually.

Organizations based outside of the United States and that DO plan to do business with the DoW in addition to Department of State should follow the below instructions:

Step 1: Apply for an NCAGE code by following the instructions on the NSPA NATO website linked below:

NCAGE Homepage:

https://eportal.nspa.nato.int/AC135Public/sc/CageList.aspx NCAGE Code Request Tool (NCRT):

NCAGE Code Request Tool (nato.int)

Exemptions An exemption from the UEI and sam.gov registration requirements may be permitted on a case-by-case basis. See 2 CFR 25.110 for a full list of exemptions.

Organizations requesting exemption from UEI or SAM.gov requirements must email the point of contact listed in the NOFO at least two weeks prior to the deadline in the NOFO providing a justification of their request. Approval for a SAM.gov exemption must come from the warranted Grants Officer before the application can be deemed eligible for review.

3. Submission Dates and Times Applications are due no later than 11:59 PM Eastern Standard Time (EST), on August 2, 2026, on either grants.gov or MyGrants under the announcement title “Enhancing American Competitiveness and Economic Security through AI in South Asia,” funding opportunity number “DFOP0018586.”

4. Funding Restrictions

i. Funding Restrictions for the United Nations Relief and Works Agency (UNRWA)

None of the funds awarded resulting from this Notice of Funding Opportunity may be made available for subawards, direct financial support, or otherwise used to provide any payment or transfer to United Nations Relief and Works Agency (UNRWA).

None of the funds awarded under this grant may be made available to encourage, mobilize, publicize, or manage mass-migration caravans towards the United States southwest border. Funds may not be made available for legal counseling on the United States asylum process; and/or for referrals to legal representation in the United States.

Funds may only be used for cash cards for use in the country in which they are provided or to facilitate assisted voluntary returns and other purposes that do not encourage, mobilize, publicize, or manage mass migration caravans towards the United States southwest border. The provision of humanitarian assistance is permitted.

ii. Certification Regarding Compliance with applicable Federal anti-discrimination laws

If the place of performance or delivery of any award made under this NOFO will be within the United States, applicants are advised that they will be required to certify the following at the time of award:

1) Its compliance in all respects with all applicable Federal anti-discrimination laws is material to the government’s payment decisions for purposes of section 3729(b)(4) of title 31, United States Code and;

2) It does not operate any programs promoting Diversity, Equity, and Inclusion that violate any applicable Federal anti-discrimination laws. A program promoting Diversity, Equity, and Inclusion means a program whose purpose is to promote preferences based on race, color religion, sex, or national origins, such as in training or hiring.

iii. Certification of Trafficking in Persons Compliance and Compliance Plan

Applicants are advised that they will be required to certify the following at the time of award for awards where the estimated value of services to be performed outside the United States exceeds $500,000:

1) To the best of the Recipient’s knowledge, neither the Recipient, nor any subrecipient, contractor, or subcontractor of the Recipient or any agent of the recipient or of such a subrecipient, contractor, or subcontractor, is engaged in any of the activities described in 2 CFR 175.105(a);

The recipient has implemented a Trafficking in Persons compliance plan to prevent activities described in 2 CFR 175(a) and is compliant with this plan; and the compliance plan must follow the minimum requirements described in 2 CFR 175(b)(5).

2) That the Recipient has and will implement procedures to prevent activities described in 2 CFR 175.105(a) and to monitor, detect, and terminate any subrecipient, contractor, subcontractor, or employee of the recipient engaging in these activities.

Recipients do not need to submit a copy of the plan. However, they must provide it to the Grants Officer upon request, and as appropriate, must post the useful and relevant contents of the plan or related materials on their website and at the workplace. Recipients must re-certify on an annual basis for the entire award period of performance.

iv. Prohibition on Unmanned Aircraft Systems (UAS).

(a) Definitions.

American Security Drone Act-covered foreign entity means an entity included on a list developed and maintained by the Federal Acquisition Security Council (FASC) and published in the System for Award Management (SAM) at https://www.sam.gov

FASC-prohibited unmanned aircraft system means an unmanned aircraft system manufactured or assembled by an American Security Drone Act-covered foreign entity.

Unmanned aircraft means an aircraft that is operated without the possibility of direct human intervention from within or on the aircraft.

Unmanned aircraft system means an unmanned aircraft and associated elements (including communication links and the components that control the unmanned aircraft) that are required for the operator to operate safely and efficiently in the national airspace system.

(b) Prohibition. Recipients of funding under this Notice of Funding Opportunity (including subawards and subcontracts issued by the recipient) will be prohibited from:

(1) delivering any FASC-prohibited unmanned aircraft system, which includes unmanned aircraft (i.e., drones) and associated elements;

(2)Operating a FASC-prohibited unmanned aircraft system in the performance of the award; and

(3) Using Federal funds for the purchase or operation of a FASC-prohibited unmanned aircraft system .

c) Exemptions, exceptions, and waivers. The prohibitions described above will not apply if the agency determines that an exemption, exception, or waiver applies and the award indicates that such a determination has been made. [See sections 1823 through 1825 and 1832 of Public Law 118-31 ( 41 U.S.C. 3901 note prec.) for statutory requirements pertaining to exemptions, exceptions, and waivers.].

v. Promoting Human Flourishing in Foreign Assistance (PHFFA)

Applicants for foreign assistance awards should be aware of requirements in 2 CFR Part 602, 603, and 604.

These policies are referred to collectively as the Promoting Human Flourishing in Foreign Assistance (PHFFA) Policy.

602: The award term imposes certain abortion-related requirements on foreign nongovernmental organizations (NGOs), United States NGOs, public international organizations, foreign governments, and parastatals.

603: The award term imposes certain requirements relating to gender ideology on foreign nongovernmental organizations (NGOs), United States NGOs, international organizations, foreign governments, and parastatals.

604: The award term imposes certain requirements relating to discriminatory equity ideology on foreign nongovernmental organizations (NGOs), United States NGOs, international organizations, foreign governments, and parastatals.

The Department recognizes there are costs associated with these policies. Potential one-time and recurring costs the Department identifies for recipients and grantees are for familiarization with the policy, development and delivery of organizational training and implementation guidance, routine compliance monitoring, and recordkeeping and reporting requirements.

F. Application Review Information

1. Review Criteria

An SCA/FA review panel will evaluate each application individually against the criteria listed below, in order of importance, and not against competing applications. Please use the below criteria as a reference, but do not structure your application according to the sub-sections.

Applications should contain the applicant’s best terms from both cost and technical standpoints. The implementing partners (sub-recipients) of the primary recipient will be subject to Department of State approval.

Quality and Feasibility of the Program Idea – 30 points: The program idea is well developed, with details about how program activities will be carried out. The proposal includes a reasonable implementation timeline. The proposal does not include any activities contrary to any standing Executive Orders. For a full list, see https://www.federalregister.gov/.

Organizational Capacity and Record on Previous Grants – 20 points: The organization has expertise in its stated field and has the internal controls in place to manage federal funds. This includes a financial management system and a bank account. If sub-awards are proposed, the applicant demonstrates experience managing subawards.

Program Planning/Ability to Achieve Objectives – 15 points: Goals and objectives are clearly stated, and the programmatic approach is likely to provide maximum impact in achieving the proposed results.

Budget – 10 points: The budget justification is detailed. Costs are reasonable in relation to the proposed activities and anticipated results. The budget is realistic, accounting for all necessary expenses to achieve proposed activities.

Monitoring and evaluation plan – 15 points: Applicant demonstrates it is able to measure program success against key indicators and provides milestones to indicate progress toward goals outlined in the proposal. The program includes outputs and outcome indicators and shows how and when those will be measured.

Sustainability – 10 points: Program activities will continue to have positive impacts after the end of the program.

2. Indirect Costs If two or more applications receive equivalent scores based on the evaluation criteria outlined in this NOFO, preference will be given to the applicant with the lower indirect cost rate, as consistent with Executive Order 14332, Section 4(b)(iii). This preference will only be applied as a tie-breaking mechanism and does not supersede the primary evaluation criteria.

3. Review and Selection Process The Department of State is committed to ensuring a competitive and standardized process for awarding funding. Applications will be screened initially for Technical Eligibility to determine whether applicants meet the eligibility requirements outlined in section C and have submitted all required documents outlined in section D. Applications that do not meet these requirements will not advance to the Merit Review Panel and will be deemed ineligible for funding under this NOFO.

All applications that are deemed technically eligible will move forward to the Merit Review Panel consisting of U.S. government subject matter and/or country-specific experts and will be rated on a 100-point scale. SCA/FA reserves the right to request the assistance of non-US government SMEs, if appropriate to the solicitation. Point values for individual elements of the application are presented in E.1, of this part. Panel Reviewers will determine scores based on the strengths and weaknesses of the aforementioned categories and for consistency with the program goals and objectives outlined in this NOFO. Panel Reviewers’ ratings, and any resulting recommendations, are advisory. Panel Reviewers may provide conditions and recommendations to enhance the proposed application, which must be addressed by the applicant before further consideration of the award. To ensure effective use of US Government funds, conditions or recommendations may include requests to increase, decrease, clarify, and/or justify costs and program activities.

SCA/FA reserves the right to make an award based on the initial application received with or without discussion or negotiations. Therefore, applications should contain the Applicants’ best terms from both cost and technical standpoints.

Final selection authority resides with SCA/FA’s senior appointee. Final award decisions will be influenced by whether the application advances the President’s policy priorities, supports the Department’s overarching foreign policy priorities, and the geographic distribution of the top-ranking applications.

4. Risk Review

i. Risk factors Under the merit review as required by 2 CFR 200.206, prior to making a Federal Award the Department will review and consider the following risk factors:

a. Financial stability

b. Management systems and standards

c. History of performance

d. Audit reports and findings

e. Ability to effectively implement requirements

ii. Responsibility/Qualification Information in SAM.gov The Federal awarding agency, prior to making a Federal award with a total amount of Federal share greater than the simplified acquisition threshold, is required to review and consider any information about the applicant that is in the U.S. government’s designated integrity and performance system accessible through SAM.gov (see 41 U.S.C. 2313)

An applicant can review and comment on any information in the responsibility/qualification records available in SAM.gov.

Before making decisions in the risk review required by 2 CFR 200.206, the Department will consider any comments by the applicant, along with information available in the responsibility/qualification records in SAM.gov.

G. Award Notices

The award will be written, signed, awarded, and administered by the Grants Officer. The award agreement is the authorizing document, and it will be provided to the recipient for review and counter-signature. The recipient may only start incurring program expenses beginning on the start date shown on the award document signed by the Grants Officer.

If an application is selected for funding, the Department of State has no obligation to provide any additional future funding. Renewal of an award to increase funding or extend the period of performance is at the discretion of the Department of State.

Issuance of this NOFO does not constitute an award commitment on the part of the U.S. government, nor does it commit the U.S. government to pay for costs incurred in the preparation and submission of proposals. Further, the U.S. government reserves the right to reject any or all proposals received.

Unsuccessful applicants: Unsuccessful applicants will be notified by October 30, 2026, via email.

Payment Method:

Payments under this award will be made through the U.S. Department of Health and Human Services (HHS) Payment Management System (PMS) or by completing form SF-270—Request for Advance or Reimbursement and submitting the form. Final determination will be made in conjunction with the Grants Officer. Unless otherwise stipulated, the Recipient may request payments on a reimbursement or advance basis. Instructions for requesting payments via PMS are available at: https://pms.psc.gov/. Instructions for requesting payments via SF-270 are available at: https://www.grants.gov/forms/forms-repository/post-award-reporting-forms.

Advance payments must be limited to the minimum amounts needed and be timed to be in accordance with the actual, immediate cash requirements of the Recipient in carrying out the purpose of this award. The timing and amount of advance payments must be as close to as is administratively feasible to the actual disbursements by the Recipient for direct program or project costs and the proportionate share of any allowable indirect costs.

H. Post-Award Requirements and Administration

1. Administrative and National Policy Requirements Before submitting an application, applicants should review all the terms and conditions and required certifications which will apply to this award, to ensure that they will be able to comply. These include:

In accordance with the Office of Management and Budget’s guidance located at 2 CFR part 200, all applicable Federal laws, and relevant Executive guidance, the Department of State will review and consider applications for funding, as applicable to specific programs, pursuant to this notice of funding opportunity in accordance with the following:

· Guidance for Grants and Agreements in Title 2 of the Code of Federal Regulations (2 CFR), as updated in the Federal Register’s 89 FR 30046 on April 22, 2024, particularly on:

· Selecting recipients most likely to be successful in delivering results based on the program objectives through an impartial process of evaluating Federal award applications (2 CFR part 200.205),

· Promoting the freedom of speech and religious liberty in alignment with Promoting Free Speech and Religious Liberty (E.O. 13798) and Improving Free Inquiry, Transparency, and Accountability at Colleges and Universities (E.O. 13864) (§§ 200.300, 200.303, 200.339, and 200.341),

· Providing a preference, to the extent permitted by law, to maximize use of goods, products, and materials produced in the United States (2 CFR part 200.322), and

· Terminating agreements pursuant to the U.S. Department of State Standard Terms and Conditions, including, to the greatest extent authorized by law, if an award no longer effectuates the program goals or agency priorities (2 CFR part 200.340). For the avoidance of doubt, the Department has sole discretion over the determination that an award no longer effectuates program goals or agency priorities, and this provision permits awards to be terminated at the Department’s convenience, including when it determines that the award no longer advances the national interest.

· 2 CFR 25 - UNIVERSAL IDENTIFIER AND SYSTEM FOR AWARD MANAGEMENT

· 2 CFR 170 - REPORTING SUBAWARD AND EXECUTIVE COMPENSATION INFORMATION

· 2 CFR 175 - AWARD TERM FOR TRAFFICKING IN PERSONS

· 2 CFR 182 - GOVERNMENTWIDE REQUIREMENTS FOR DRUG-FREE WORKPLACE (FINANCIAL ASSISTANCE)

· 2 CFR 183 - NEVER CONTRACT WITH THE ENEMY

· 2 CFR 600 – DEPARTMENT OF STATE REQUIREMENTS

· U.S. DEPARTMENT OF STATE STANDARD TERMS AND CONDITIONS (Not applicable to Public International Organizations or Government institutions)

· Recipients must comply with all applicable Executive Orders A searchable list can be found in the Federal Register: https://www.federalregister.gov/

2. Reporting Reporting Requirements: Recipients will be required to submit financial reports and program reports. The award document will specify what reports are required and how often these reports must be submitted.

Narrative progress reports should reflect continued focus on measuring the program’s progress in achieving the overarching goal. Explain and evaluate how activities reflect progress toward expected outcomes and outcomes towards achieving objectives. In addition, attach the M&E Tracker, comparing the target and actual numbers for the indicators. Reports should also include an update on expenditure. Where relevant, progress reports should also include the following:

· Relevant contextual information (limited);

· Any tangible impact or success stories from the program, when possible;

· Copy of mid-term and/or final evaluation report(s) conducted by an external evaluator; if applicable;

· Relevant supporting documentation or products related to the program activities (such as articles, meeting lists and agendas, participant surveys, photos, manuals, etc.) as separate attachments;

· Description of how the recipient is pursuing sustainability, including looking for sources of follow-on funding;

· Any problems/challenges in implementing the program and corrective action plan with an updated timeline of activities;

· Reasons why activities have not been conducted or deliverables were not met in accordance with the timeline;

· Proposed activities for the next quarter; and,

· Additional pertinent information, including analysis and explanation of cost overruns or high unit costs, if applicable.

Foreign Assistance Data Review: As required by Congress, the Department of State must make progress in its efforts to improve tracking and reporting of foreign assistance data through the Foreign Assistance Data Review (FADR). The FADR requires tracking of foreign assistance activity data from budgeting, planning, and allocation through obligation and disbursement. Successful applicants will be required to report and draw down federal funding based on the appropriate FADR Data Elements, indicated within their award documentation. In cases of more than one FADR Data Element, typically program or sector and/or regions or country, the successful applicant will be required to maintain separate accounting records.

Applicants should be aware of the post award reporting requirements reflected in 2 CFR 200 Appendix XII—Award Term and Condition for Recipient Inegrity and Performance Matters.

3. Branding and Marking The Department of State, its programs, and U.S. Government funding and assistance should be easily identifiable to the Department's global audiences.

Recipients of federal assistance awards must follow the branding guidance published at Guidance for Contracts and Grants - U.S. Department of State Brand System. Branding policy exceptions are outlined in the U.S. Department of State Foreign Affairs Manual 10 FAM 416, Policy Exceptions.

For more information, visit: https://brand.america.gov/

4. Audit Requirements: Please note the audit requirements for Department of State awards are consistent with 2CFR200, Subpart F – Audit Requirements. The cost of the required audits may be charged either as an allowable direct cost to the award OR included in the organization’s established indirect costs in the award’s detailed budget.

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