Attachment J.5 - ADS 201 Program Cycle Operational Policy.pdf

ADS Chapter 201

Program Cycle Operational Policy

Partial Revision Date: 07/17/2024 Responsible Office: PLR File Name: 201_071724

07/17/2024 Partial Revision

Text highlighted in yellow indicates that the material is new or substantively revised.

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Functional Series 200 – Programming Policy ADS 201 – Program Cycle Operational Policy POC for ADS 201: See ADS 501maa, ADS Chapters and Point of Contact List

Table of Contents

201.1 OVERVIEW

201.2 PRIMARY RESPONSIBILITIES

201.3 POLICY DIRECTIVES AND REQUIRED PROCEDURES

201.3.1 The Program Cycle

201.3.1.1 Relationship to Development Policy

201.3.1.2 Program Cycle Principles

201.3.1.3 Program Cycle Components

201.3.1.4 Program Cycle Management and Implementation

201.3.1.5 Waivers and Exemptions

201.3.1.6 Contingency Operations

201.3.1.7 Key Considerations for Programming in Politically Sensitive Countries ... 21

201.3.1.8 Legal Requirements on the Use of Funds

201.3.1.9 Cost-Effectiveness

201.3.2 Strategic Planning and Implementation

201.3.2.1 Functions of the Strategy

201.3.2.2 Mission and Washington OU Roles in Strategy Development

201.3.2.3 Applicability of CDCS Guidance

201.3.2.4 CDCS Exemptions

201.3.2.5 CDCS Waivers

201.3.2.6 Country Strategy Alignment with Agency and Interagency Strategies/Policies

201.3.2.7 Strategy Alignment with Projects and Activities

201.3.2.8 Preparation for the CDCS Process

201.3.2.9 Overview of the CDCS Process

201.3.2.10 Overview of CDCS Content

201.3.2.11 CDCS Results Framework and Associated Development Hypotheses ... 37

201.3.2.12 Overview of Strategy Implementation

201.3.2.13 Identifying the Portfolio of Projects, Standalone Activities, and Development Diplomacy Approaches

201.3.2.14 Performance Management Plan (PMP)

201.3.2.15 Monitoring During Strategy Implementation

201.3.2.16 Evaluation During Strategy Implementation

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201.3.2.17 Collaborating, Learning, and Adapting During Strategy Implementation . 51

201.3.2.18 Obligations through Development Objective Agreements (DOAGs)

201.3.2.19 Expiration and Extension of a Strategy

201.3.2.20 Amending and Updating a Strategy

201.3.2.21 Strategy Closeout

201.3.3 Project Design and Implementation

201.3.4 Activity Design and Implementation

201.3.4.1 Roles in Activity Design and Implementation

201.3.4.2 Applicability of Activity Design and Implementation Guidance

201.3.4.3 Mission Concurrence for Washington/Regional Mission-Funded

Activities

201.3.4.4 Phase One: Activity Planning

201.3.4.5 Phase Two: Activity Design Process for Acquisition and Assistance

(A&A) Activities

201.3.4.6 Phase Two: Activity Design Considerations for Non-A&A

Activities

201.3.4.7 Phase 3: Activity Implementation

201.3.4.8 Delegations of Authority and Other Roles in Activity Implementation

201.3.4.9 Monitoring, Evaluation, and CLA During Activity Design and Implementation

201.3.4.10 Resource Management During Activity Implementation

201.3.4.11 Activity Modifications

201.3.4.12 Phase 4: Activity Closeout

201.3.5 Program Monitoring

201.3.5.1 Applicability of Monitoring Guidance

201.3.5.2 Monitoring Principles

201.3.5.3 Mission and Washington Operating Unit Roles in Monitoring

201.3.5.4 Types of Program Monitoring

201.3.5.5 Ensuring Monitoring and Reporting are Designed for Use

201.3.5.6 Monitoring Indicators

201.3.5.7 Ensuring the Quality of Performance Monitoring Data

201.3.6 Evaluation

201.3.6.1 Applicability of Evaluation Guidance

201.3.6.2 Evaluation Principles and Standards

201.3.6.3 Missions and Washington Operating Unit Roles in Evaluation

201.3.6.4 Types of USAID Evaluations

201.3.6.5 Evaluation Requirements

201.3.6.6 Evaluation Independence

201.3.6.7 Planning Evaluations

201.3.6.8 Evaluation Implementation

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201.3.6.9 Evaluation Reports

201.3.6.10 Use of Evaluations

201.3.7 Collaborating, Learning, and Adapting (CLA)

201.3.7.1 Applicability of CLA Guidance

201.3.7.2 CLA Principles

201.3.7.3 Mission Roles in CLA

201.3.7.4 Planning for CLA

201.3.7.5 Using CLA Approaches

201.3.8 Accessibility of Program Cycle Documentation

201.4 MANDATORY REFERENCES

201.4.1 External Mandatory References

201.4.2 Internal Mandatory References

201.5 ADDITIONAL HELP

201.6 DEFINITIONS

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201.1 OVERVIEW

Effective Date: 05/16/2024

The Program Cycle is USAID’s operational model for planning, delivering, assessing, and adapting development programming in a given region or country to advance U.S.

foreign policy and national security. It encompasses guidance and procedures for:

1) Making evidence-based strategic decisions at the regional or country level about programmatic areas of focus, including efforts to advance a more coherent humanitarian-development-peace (HDP) approach as appropriate and feasible;

2) Designing projects and/or activities, and practicing development diplomacy, to implement these strategic plans; and

3) Learning from performance monitoring, evaluations, and other relevant sources of information to make course corrections as needed and inform future programming.

Program Cycle implementation also facilitates USAID’s compliance with many requirements of the Government Performance and Results Modernization Act of 2010 (GPRAMA), the Foreign Aid Transparency and Accountability Act of 2016 (FATAA), and the Foundations for Evidence-Based Policymaking Act of 2018 (Evidence Act).

201.2 PRIMARY RESPONSIBILITIES

a. The Administrator (A/AID) formulates and executes U.S. foreign assistance policies and programs subject to the foreign policy guidance of the President, the Secretary of State, and the National Security Council. Under the direct authority and foreign policy guidance of the Secretary of State, A/AID serves as a principal advisor to the President and Secretary of State regarding international development and humanitarian assistance matters. The A/AID administers appropriations made available under the Foreign Assistance Act (FAA) of 1961, as amended, and Title II of the Food for Peace Act, and supervises and directs overall Agency activities in the United States and abroad.

b. The Office of the Administrator, Immediate Office, Office of the Chief Diversity, Equity, Inclusion and Accessibility Officer (A/AID/DEIA) promotes DEIA principles in the Agency’s operations at every level so that USAID’s development programs, people, processes, policies, and partnerships are inclusive, reflect diversity, advance equity, and enhance accessibility. A/AID/DEIA’s primary role in development and humanitarian programming is to support diversification of USAID’s partnership base, including support for but not limited to the Bureau for Inclusive Growth, Partnerships, and Innovation, Inclusive Development Hub (IPI/ID), the Office of Small https://www.govinfo.gov/app/details/STATUTE-124/STATUTE-124-Pg3866 https://www.govinfo.gov/app/details/STATUTE-124/STATUTE-124-Pg3866 https://www.govinfo.gov/app/details/PLAW-114publ191 https://www.govinfo.gov/app/details/PLAW-114publ191 https://www.congress.gov/bill/115th-congress/house-bill/4174 https://www.congress.gov/bill/115th-congress/house-bill/4174 https://www.congress.gov/bill/115th-congress/house-bill/4174 https://www.usaid.gov/ads/policy/faa https://www.usaid.gov/food-assistance/how-title-ii-food-aid-works https://www.usaid.gov/food-assistance/how-title-ii-food-aid-works

ADS Chapter 201 6 and Disadvantaged Business Utilization (OSDBU), the locally led development initiative, the Bureau for Management, Office of Acquisition and Assistance (M/OAA), and the Bureau for Planning, Learning and Resource Management (PLR). A/AID/DEIA also plays a direct role as the Agency’s coordinator with Minority Serving Institutions (MSIs).

c. The Office of Policy (POL) is responsible for elevating USAID’s policy voice and planning, coordinating, and engaging on development, humanitarian, and wider U.S.

foreign policy and national security issues.

d. The Office of the Chief Economist (OCE) supports the Agency in improving the effectiveness of its programming and broader global engagement by bringing stronger economic theory and evidence to bear on USAID’s work. In collaboration with Cost- Effectiveness Evidence Points of Contacts (POCs) (see section 201.3.1.9), as well as PLR and relevant Regional and Technical Bureaus, the OCE plays several key roles in Program Cycle planning and implementation focused on promoting the use and generation of cost-effectiveness evidence.

e. The Bureau for Foreign Assistance, Department of State (State/F) leads the coordination of U.S. foreign assistance. It advances U.S. national security and development objectives by strategically managing State and USAID foreign assistance resources; coordinating policy, planning, and performance management efforts;

promoting evidence-informed decision-making; and directing State and USAID foreign assistance resources, all of which is done in coordination with or through PLR.

f. Operating Units (OUs) implement foreign assistance programs with funding from relevant foreign assistance accounts. OUs include USAID Missions and USAID/Washington (USAID/W) Bureaus and Independent Offices (B/IOs) that expend program funds to implement activities to achieve development and humanitarian objectives, and foreign policy and national security goals.

g. Bilateral Missions serve as the focal point for USAID’s Program Cycle in the countries in which they operate. In collaboration with USAID Regional and Pillar Bureaus and the Department of State, USAID Missions are responsible for the design and management of development programs, as well as coordination with other OUs implementing development and/or humanitarian programming in-country, including programs funded from USAID/W. This includes monitoring programs and financial performance and routinely reporting on results.

● Mission Program Offices play a leadership role in Program Cycle implementation under the direction of the Mission Director. This includes facilitating cross-team collaboration to ensure that diverse and inclusive perspectives are brought to the planning and design process, and that all relevant actors in the Mission fulfill their implementation, management, and reporting responsibilities.

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● Mission Technical Offices provide technical leadership in Program Cycle implementation under the direction of the Mission Director.

● Mission Offices of A&A serve as business advisors on how Missions can achieve intended results with the Agency's broad range of A&A instruments.

● Mission Controller Offices provide financial management support; risk management leadership; audit facilitation; and may support the Contracting Officer/Agreement Officer (CO/AO) in conducting pre-award risk assessments (see ADS 303, Grants and Cooperative Agreements to Non-Governmental Organizations for more information on pre-award risk assessments under assistance awards and ADS 591, Financial Audits of USAID Contractors, Recipients, and Host Government Entities for more information on pre-award surveys for acquisition awards). They also play a specific role in the analysis, planning, and design of financial management capacity of public and private sector organizations (see ADS 220, Strengthening the Capacity of Partner Governments through Government-to-Government (G2G) Assistance on government-to-government assistance).

h. Regional Missions/Regional Platforms manage regional programs and, in some instances, provide USAID Missions with administrative support services—such as legal, financial management, executive management, and procurement—as well as limited, specialized technical assistance and/or program assistance when client Missions have limited full-time equivalent staff capacity.

i. The Bureau for Planning, Learning and Resource Management (PLR) is responsible for ADS Chapters 200, Formulation, Implementation, and Governance of USAID Development and Humanitarian Policies, 201, 205, Integrating Gender Equality and Women's Empowerment in USAID’s Program Cycle, and 220 and, as needed, provides interpretation of the language in these chapters in collaboration with the Office of the General Counsel (GC) and the Bureau for Management, Office of the Chief Financial Officer (M/CFO).

j. The Bureau for Planning, Learning and Resources Management, Office of the Assistant to the Administrator (PLR/AtA) provides internal and external leadership on USAID’s development Mission by assisting in shaping and implementing the Agency’s and United States Government’s (USG’s) development policy and promoting good practice.

k. The Bureau for Planning, Learning and Resource Management, Office of Policy Implementation and Analytics (PLR/PIA):

● Leads the Agency in a collaborative process of producing development and humanitarian policy per ADS 200 to guide programming decisions;

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● Co-leads development of the Policy Framework and the biennial Policy Agenda, in coordination with POL, to articulate the Agency’s policy priorities;

● Provides interpretation regarding policy formulation and implementation, and the content of ADS 200;

● Leads biennial Policy Reviews (see ADS 200.3.1) that review existing internal USAID policy and implementation efforts;

● Supports, in coordination with POL, USAID engagement in interagency policy processes and other policy dialogues, and advocating for development and humanitarian perspectives and considerations in U.S. foreign and national security policy formulation; and

● Informs implementation of key policy issues and advances evidence use in the Program Cycle through the production of Agency-level analytical resources and the provision of tailored analytical support.

l. The Bureau for Planning, Learning and Resource Management, Office of Strategic and Program Planning (PLR/SPP) establishes and oversees the implementation of Program Cycle and Government-to-Government (G2G) policies and procedures for USAID Missions and, as relevant, Washington OUs, for designing, implementing, assessing, and adjusting country strategies, projects, and activities based on the best available information to achieve and sustain results. PLR/SPP co-manages two ADS chapters:

1. ADS 201 (with the Bureau for Planning, Learning and Resources Management, Office of Learning, Evaluation, and Research [PLR/LER]); and

2. ADS 220 (with M/CFO).

PLR/SPP Contracting/Agreement Officer’s Representative (COR/AORs) Hub serves as a backstop for the Agency’s COR/AORs. PLR/SPP serves as the backstop for Government Agreement Technical Representatives (GATRs). PLR/SPP builds Agency capacity in strategic planning, and project and activity design and implementation, through the provision of targeted training, tools, technical assistance, and the facilitation of peer-to-peer learning, all in coordination with the Office of Human Capital and Talent Management and other Agency stakeholders. PLR/SPP supports the implementation of the Program Management Improvement Accountability Act (PMIAA). This includes, among other actions, ensuring Agency policies reflect the legislative requirements for program/project management improvement, and coordinating program/project management improvement across the Agency.

m. The Bureau for Planning, Learning and Resource Management, Office of Learning, Evaluation, and Research (PLR/LER) catalyzes USAID's transformation https://www.usaid.gov/policy/policy-framework https://www.usaid.gov/ads/policy/200/200 https://www.usaid.gov/ads/policy/200/200 https://www.usaid.gov/about-us/agency-policy/series-200/201 https://www.usaid.gov/about-us/agency-policy/series-200/220 https://www.congress.gov/114/statute/STATUTE-130/STATUTE-130-Pg1371.pdf

ADS Chapter 201 9 into an effective learning organization by strengthening the integration of monitoring;

evaluation; and Collaborating, Learning, and Adapting (CLA) throughout the Program Cycle. LER supports the implementation of relevant legislation and Agency policies, and builds the Agency’s capacity in monitoring, evaluation, and CLA by providing training and technical assistance, developing policy and guidance, and leading communities of practice around established and emerging approaches. USAID’s Agency Evaluation Officer and Agency Knowledge Management and Organizational Learning Officer are both located in LER. The Office provides a focal point for partnership on these topics, including with implementing partners, domestic and international agencies and donors, non-governmental organizations, foundations, academic institutions, multilateral organizations, and local governments or organizations in the countries where USAID works. PLR/LER supports implementation of FATAA, GPRAMA and Title 1 of the Evidence Act. This includes, among other actions, ensuring that Agency policies reflect the legislative requirements for monitoring, evaluation and learning, strengthening the use of evidence, and managing the Agency Learning Agenda, Agency Evaluation Plan, and Capacity Assessment for Statistics, Evaluation, Research, and Analysis.

n. The Bureau for Planning, Learning and Resource Management, Office of Development Cooperation (PLR/ODC) leads Agency efforts in mobilizing collective action that promote USG foreign assistance priorities in the international arena.

PLR/ODC advocates and builds key relationships by strategically engaging in major multilateral, bilateral, philanthropic, and international fora.

o. The Bureau for Planning, Learning and Resource Management, Office of Budget and Resource Management (PLR/BRM) serves as USAID's central, corporate-level budget office, leading Agency engagement with the State Department and the Office of Management and Budget (OMB) on the Agency’s budget. BRM guides the Agency's formulation, and implementation of program funds in accordance with Agency-wide, sector specific, and/or Mission strategic plan priorities, and facilitates the timely allotment and programming of program funds for implementation. BRM leads Agency-wide resource planning and program budget processes associated with the development of Country Development Cooperation Strategies (CDCSs), Regional Development Cooperation Strategies (RDCSs), Strategic Frameworks (SFs), Foreign Assistance Operational Plans (OPs), Bureau and Mission Resource Requests (BRR/MRRs), the annual funding report required under Section 653(a) of the Foreign Assistance Act of 1961 (FAA), as amended, and other critical steps in the budget process.

p. Regional Bureaus serve as the main link between Washington OUs and OUs in their region. They are the primary point of contact with other USG agencies, international donors, and multilateral organizations regarding foreign assistance policy, budget, and programmatic issues pertaining to the region. Regional Bureaus are responsible for influencing/providing input on foreign assistance policy and budget decisions based on regional and country expertise and analyses. They work in tandem with State/F, the relevant State Regional Bureau, BRM, and USAID Missions to build, https://www.congress.gov/114/plaws/publ191/PLAW-114publ191.pdf https://www.govinfo.gov/app/details/PLAW-115publ435

ADS Chapter 201 10 justify, and implement foreign assistance budgets. As part of this process, Regional Bureaus articulate foreign assistance programmatic and funding priorities for countries and cross-border programs in the region and represent USAID Mission perspectives on budget priorities. Regional Bureaus provide technical guidance and support for their respective bilateral and regional Missions in strategic planning, the design of projects and activities, monitoring, evaluation, and CLA, including advice that supports locally led and inclusive development throughout the Program Cycle. This includes engaging with PLR and Pillar Bureaus to ensure consistent application of the Program Cycle and to coordinate the provision of technical assistance. Regional Bureaus may also manage central mechanisms to support Program Cycle implementation.

q. Pillar or Technical Bureaus provide technical leadership for the Agency. They disseminate knowledge on recent advances and innovations in their respective technical fields to help the Agency make evidence-based and strategic choices; this includes maintaining strategic relationships with public and private actors in their areas of technical expertise. Pillar Bureaus play an important role in promoting new approaches, adaptations, and country-specific approaches based on learning from research and implementation experience. Pillar Bureaus provide technical guidance and support for strategic planning, project, and activity design; and monitoring, evaluation, and CLA, including advice on how to embed DEIA principles in technical programs, processes, and partnerships. This encompasses the provision of support to other OUs for research, data collection for routine assessments, and monitoring. Pillar Bureaus also manage central mechanisms that support the design, implementation, and evaluation of projects and activities (also known as global or “field support” mechanisms), as well as mechanisms that support the implementation of sector strategies and the achievement of sector goals.

r. The Bureau for Management (M) provides centralized management expertise for the Agency and ensures that core systems related to operational expense budgets, financial accounting and management, A&A, and information management are adequately integrated and support programming processes. The Assistant Administrator of the M Bureau represents the Agency before OMB, other Federal agencies, Congress, and the public on matters pertaining to management and operations.

s. USAID’s Chief Financial Officer (CFO) and the Bureau for Management, Office of the Chief Financial Officer (M/CFO) update and maintain the Agency Risk Appetite Statement (RAS) and ensure that it is communicated to all stakeholders throughout the Program Cycle; facilitate and coordinate the Agency Risk Profile collection and analysis process; implement Agency Enterprise Risk Management (ERM) Governance through the ERM Executive Secretariat; oversee financial management activities relating to programs and operations; ensure the compilation of financial data to enable effective performance measurement and management decision making; and provide leadership and direction in financial management and play specific roles in the analysis, planning, and design of government-to-government (G2G) programs (see https://www.usaid.gov/about-us/agency-policy/series-500/references-chapter/596mad https://www.usaid.gov/about-us/agency-policy/series-500/references-chapter/596mad

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ADS 596, Management’s Responsibility for Enterprise Risk Management and Internal Control and ADS 220).

t. USAID’s Chief Information Officer (CIO) and the Bureau for Management, Office of the Chief Information Officer (M/CIO) offer advice on strategies to leverage information technology for use in operational programming. M/CIO provides oversight and approves all information technology investments within Agency operations. OUs must consult M/CIO in the design and planning process when information technology, and/or emerging technologies may be required for use by members of the Agency workforce and/or used on behalf of the Agency by organizations in support of their work for the Agency. For more information, see ADS 509, Management and Oversight of Agency Information Technology Resources. For roles and responsibilities related to data management and USAID’s open data policy, see ADS 579, USAID Development Data.

u. The Bureau for Management, Office of Management Policy, Budget and Performance (M/MPBP) serves as the central unit for the planning and implementation of the Agency’s Operating Expense (OE) budget; the formulation of management policy;

the monitoring and evaluation of management performance, compliance with and oversight of the USAID suspension and debarment program; and administrative support services.

v. The Bureau for Management, Office of Management Services, Overseas Management Division (M/MS/OMD) supports the management functions that underpin USAID’s overseas OUs and are generally managed by Backstop 03, Executive Officers.

w. The Bureau for Management, Office of Acquisition and Assistance (M/OAA) provides primary leadership in communicating and advising how the Agency can leverage its broad range of A&A instruments to achieve Program Cycle outcomes.

CO/AOs provide business advice to Missions, and Regional and Pillar Bureaus throughout the Program Cycle, including for field support mechanisms, and enters into, administers, and terminates awards within the limitations of their delegated authority, policy directives, and required procedures. M/OAA also develops, issues, and maintains the Agency’s A&A regulations, policies, procedures, and standards, in accordance with statutory and Federal regulations and Agency delegations and requirements, and administers the Agency’s A&A Plan.

x. The Bureau for Inclusive Growth, Partnerships and Innovation (IPI) supports the Agency in using science, technology, innovation, and partnerships to achieve the development results identified in country or sector strategies. IPI also generates new ideas and additional funding from outside sources to implement new approaches, often in collaboration with other development actors, including the U.S. Development Finance Corporation (DFC) and the Millennium Challenge Corporation.

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y. The Office of the General Counsel (GC) and Resident Legal Officers (RLOs) provide legal counsel and advice on a broad range of matters related to Program Cycle planning and implementation, including those relating to statutory requirements, source and nationality and other types of waivers, and use of partner country systems. GC and RLOs:

● Guide planning and design teams on ensuring compliance with relevant policies and statutes;

● Guide the process of negotiating accords with other development actors; and

● Review and provide feedback on all documentation for agreements signed by the

Agency Administrator, Assistant Administrators, Mission Directors, and others authorized to sign on their behalf.

z. The Office of the Inspector General (OIG) reviews the integrity of operations for USAID, the Millennium Challenge Corporation, the African Development Foundation, the, and the Inter-American Foundation through audits, investigations, and inspections.

OIG conducts and supervises audits and investigations of these organizations’ programs and operations and recommends policies designed to promote economy, efficiency, and effectiveness, and to prevent and detect fraud and abuse. OIG provides a means for keeping the head of each respective organization and Congress fully and currently informed about problems and deficiencies relating to the administration of the organization's activities and the necessity for and progress of corrective action.

aa. The Office of Human Capital and Talent Management (HCTM) provides leadership and direction in defining and managing USAID workforce planning processes, which includes recruiting staff that directly and indirectly support implementation of the Program Cycle. In coordination with PLR, HCTM designs and implements training to build the knowledge and skills of Agency staff to implement the Program Cycle.

ab. The Office of Small and Disadvantaged Business Utilization (OSDBU) ensures that U.S. small businesses are provided fair consideration as a key stakeholder in the implementation of the Program Cycle (see ADS 321, Office of Small and Disadvantaged Business Utilization). OSDBU collaborates with M/OAA to identify U.S. small businesses with suitable capabilities during the acquisition planning phase. OSDBU provides support to B/IOs and Missions in identifying capable and qualified U.S. small businesses that meet their contracting needs in the implementation of development programs. This engagement encourages greater inclusion and equity in procurement as defined in OMB Memorandum M-22-3.

201.3 POLICY DIRECTIVES AND REQUIRED PROCEDURES

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This ADS chapter provides the policies, statutory requirements, and procedures for USAID’s Program Cycle. It applies in its entirety to all overseas OUs, including Missions, Country Offices, and regional platforms, hereinafter collectively referred to as “Missions.” The parts of this chapter that apply to Washington-based OUs are explicitly noted in each section. However, much of the guidance and many of the good practices in the chapter are relevant to Washington OUs, and they should adopt them whenever feasible.

The mandatory procedures in this chapter are identified by the auxiliary verb, “must.”

Non-mandatory procedures represent best practices. These procedures are identified by the words “should,” or “may.” To support burden reduction, USAID OUs should use these non-mandatory procedures as warranted and do not have to document deviations from non-mandatory procedures, unless deemed appropriate, for purposes of Agency learning and to ensure continuity during staff transitions.

Mandatory References contain both mandatory and non-mandatory procedures and important details that do not appear in the core chapter. If a reference includes any mandatory language, it must be termed a “Mandatory Reference.” References that do not include mandatory language, but rather provide additional information about a given topic, are termed “Additional Help.”

201.3.1 The Program Cycle

The Program Cycle is USAID’s operational model for planning, delivering, assessing, and adapting development programming in a given region or country to advance U.S.

foreign, national security, and economic policy.

201.3.1.1 Relationship to Development Policy

The Program Cycle provides the means through which USAID operationalizes and strengthens coherence across humanitarian, development, and peace efforts, as described in USAID’s Policy Framework (PF).

ADS 200 describes internal USAID policies, strategies, and position papers that articulate the Agency’s approach to complex development and humanitarian challenges.

The Agency’s development and humanitarian policy is grounded in broad USG foreign policy, economic, national security and development priorities, and reflects commitments to international accords. It comprises required and recommended practices and approaches for international development broadly and in specific fields.

The Agency’s policies, strategies, and position papers aim to ensure policy coherence, quality, and technical rigor to support evidence-based decision-making and enhance the impact of all USAID development and humanitarian programs, with an emphasis on https://www.usaid.gov/policy/policy-framework http://www.usaid.gov/ads/policy/200/200

ADS Chapter 201 14 locally led actions for sustainable and inclusive solutions. A list of the Agency’s current policies, strategies, and position papers appears in the Policy Registry.

The Program Cycle allows the Agency to advance U.S. foreign policy, economic, national security, development and humanitarian priorities including by strengthening coherence across development, humanitarian, and peace efforts in the countries and regions in which it works, while tailoring programs to the local country context to produce sustainable results. Program Cycle processes integrate policy priorities into programs and support USAID’s values and objectives of advancing DEIA and strengthening local capacity and leadership.

201.3.1.2 Program Cycle Principles

USAID uses the Program Cycle to ensure that its policies, strategies, allocations of human and financial resources, budget requests, and award management practices are evidence-based and advance the Agency’s development and humanitarian objectives.

The Program Cycle includes the process for developing strategies, as well as processes governing the design of projects and activities and their subsequent implementation.

Threaded throughout the Program Cycle is a systematic focus on monitoring, evaluation, and CLA to assess implementation progress, make decisions, and inform course corrections as needed (including to the adjustment of non-performing awards).

The following principles serve as the foundation for the successful implementation of the Program Cycle.

A. Apply Analytic Rigor to Support Evidence-Based Decision-Making

USAID’s decisions about where and how to invest foreign assistance resources must be based on analyses and conclusions supported by evidence, including evidence of cost-effectiveness (see definition in section 201.6) where feasible and appropriate. Cost-effectiveness is a measure of impact per dollar spent on an intervention, for a particular population. “Analysis” refers to formal assessments, evaluations, and studies conducted by USAID or others to build and use evidence to promote efficient, equitable, impactful, cost-effective, sustainable, and high-quality development programs. It also includes structured thinking based on experiences, insights, and internalized knowledge, as well as consultations with key stakeholders, including program participants. The level of rigor, depth, and type of analysis depends on the information needed at key decision points, as well as the availability of resources, both financial and human, to conduct new analyses, while recognizing that it is not always possible to have complete or perfect information. When USAID needs information on whether an intervention is achieving a specific outcome, the Agency strongly prefers the use of impact evaluations including cost analysis that enables a comparison of the cost-effectiveness of the intervention to that of other interventions. Adequate planning and budgeting can help to ensure the timeliness and relevance of information. In addition to mandatory analyses required at https://www.usaid.gov/results-and-data/planning/policy

ADS Chapter 201 15 relevant phases of the Program Cycle, a range of analytic tools are available to support decision-making in a given country context.

Because cost-effectiveness can only be measured for interventions that can be evaluated with a rigorous counterfactual, cost-effectiveness evidence may be limited or non-existent for interventions that do not lend themselves to counterfactual analysis, such as country-level trade policy reform. These interventions may be of high impact and importance for USAID to support, despite that it may not be possible to use cost-effectiveness evidence to guide whether, how, and how much to invest in them. For more information, see ADS 201sas, Cost-Effectiveness in USAID Programming.

B. Manage Adaptively through Continuous Learning

Facilitating international development inherently requires that USAID work in countries with evolving political and economic contexts affected by the dynamics of corruption, instability, and conflict. USAID works in some countries that are unstable or in transition.

Yet even in the most stable environments, it is difficult to reliably predict how events or circumstances will evolve and impact programs. Therefore, USAID must be able to adapt programs in response to changes in the context and new information as it emerges. To do this, the Agency must create an enabling environment that encourages the design of flexible programs, promotes intentional learning, minimizes obstacles programs, and creates incentives for learning and adaptive management. Learning can take place through a range of processes and use a variety of sources, such as monitoring data, evaluation findings, research findings, analyses, lessons from implementation, and observation.

C. Promote Sustainability through Local Leadership and Financing

The sustainability and long-term success of development, humanitarian, and peacebuilding efforts ultimately require the strengthening of local systems, leveraging existing local capacities, and enabling local leadership and ownership. USAID should seek out and respond to the priorities and perspectives of local stakeholders. These stakeholders include communities affected by our programs, partner country governments, civil society (including faith-based organizations), the private sector, multilateral organizations, regional institutions, and academia. These processes should be inclusive of diverse, historically marginalized, and underrepresented groups.

USAID’s assistance should align with the priorities of local actors, leverage local resources and local knowledge; increase local leadership throughout planning, design, implementation, monitoring, and evaluation; and be sensitive to local corruption risk in order to do no harm and build stronger local governance systems.

D. Use a Range of Approaches to Achieve Results

The Program Cycle provides the framework for USAID to consider a range of approaches to address specific development challenges in a given country context. The http://www.usaid.gov/ads/policy/200/201sas

ADS Chapter 201 16 development community has experimented with diverse approaches in recent years, including solutions driven by science, technology, innovation, and private capital. In addition, new partnerships and commitments with partner country governments, the private sector, universities, civil society, faith-based organizations, MSIs, multilateral organizations, regional institutions, program participants, bilateral donors, resources across the USG, including the Department of State and the Department of Defense, and for PEPFAR programs, the Department of Health and Human Services, Millenium Challenge Corporation, Development Finance Corporation, and other donors provide new tactics for planning, achieving, and measuring development outcomes. It is important to consider a range of options, including those approaches and principles enshrined in the USAID Policy Framework, to select the most appropriate means for achieving the desired results, matched to the context, needs, local priorities and capacities, and resources available to carry them out. Approaches should be selected based on an understanding of the local system and the views of local actors.

201.3.1.3 Program Cycle Components

Effective Date: 05/16/2024

The diagram below graphically represents the Program Cycle and illustrates the interconnected and mutually reinforcing nature of its individual components. The Program Cycle systemically links all aspects of development programming and integrates them through CLA. The Program Cycle is neither linear nor sequential;

Missions are often engaged in the various components simultaneously.

USAID uses practices in strategic planning, project and activity design and implementation, monitoring, evaluation, and CLA to achieve better development and humanitarian outcomes, and continuously improve as a learning organization that builds and uses evidence to inform decisions.

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The components of the Program Cycle contribute to the following:

1) Accountability to stakeholders (including program participants, local partners, the U.S. Congress, and U.S. taxpayers) for achieving results: Accountability includes defining objectives and results; managing risk; understanding and transparently reporting investment locations and results; and continuously learning and using evidence to inform planning, implementation, and adaptive management to achieve better, more cost-effective development outcomes.

2) Learning and adapting to improve the achievement of development outcomes:

Learning includes analyzing a wide variety of information sources and knowledge, including evaluation findings, monitoring data, research, analyses conducted by USAID or others, and experiential knowledge of staff and development actors, including local actors, and adapting as needed to improve the achievement of development outcomes.

3) USAID’s ability to build and use evidence to effectively accomplish its mission and goals: This includes defining a theory of change based on evidence to achieve country-level strategic development objectives and project and activity results.

While the Program Cycle components are presented in separate sections throughout this ADS chapter, they are interdependent. All Program Cycle processes should:

● Consider how best to support the achievement of sustainable and inclusive results, including by engaging local stakeholders, including historically marginalized and/or underrepresented groups and/or people made vulnerable;

aligning with local priorities; using and strengthening local systems; and strengthening local capacity and commitment. For guidelines, consult Inclusive Development and its associated toolkit;

● Be grounded in development hypotheses and/or theories of change that are informed by evidence (including, cost-effectiveness evidence) and the local context, and be designed to fill knowledge and evidence gaps related to the theory of change, program performance, and/or the operating context; and

● Be mutually reinforcing.

A. Country and Regional Strategic Planning

Strategic planning is the process through which USAID determines the best strategic approaches in a given country or region based on individual country or regional priorities; the USG’s foreign policy, national security, development, and economic priorities; and USAID’s comparative advantage and available foreign assistance https://www.usaid.gov/inclusivedevelopment/additional-help-ads-201 https://www.usaid.gov/inclusivedevelopment/additional-help-ads-201 https://www.usaid.gov/inclusivedevelopment/additional-help-ads-201

ADS Chapter 201 18 resources, among other factors. The strategic planning process is grounded in finding the intersection among, first, the needs and priorities of local stakeholders, second the opportunities for strategic priorities to make significant development progress in a sector or region, and finally by aligning those priorities with USG policies, priorities, and resources. This process results in a strategy. The strategy defines the highest-order Goal and Development Objectives (DOs) (or, in the case of an RDCS, Regional Development Objectives [RDOs]) that each Mission, in collaboration with its development and humanitarian partners, as appropriate and feasible, will work to address during the strategy period. In addition, the strategy describes the Mission’s theory of change or “development hypothesis” regarding how, why, where, and under what conditions the Mission believes based on the given parameters and best available information—that it will be successful in advancing identified DOs/RDOs. At the center of the strategy is a Results Framework, a type of logic model that provides a summary of the development hypothesis and illustrates the key results that the Mission expects to achieve. The process of developing a strategy is just as important as the product itself (see ADS 201mag and ADS 201maz). The process also affords an important opportunity for Washington OUs to align their efforts with each Mission’s objectives, wherever possible (see ADS 201man).

B. Project Design and Implementation

A project is an optional framework to ensure that activities are designed and managed in a coordinated way to advance identified result(s) set forth in a strategy. Through a project approach, Missions can create synergies among complementary activities that generate higher-level results than would be possible to achieve through the sum of their individual performances. In addition, Missions can more strategically leverage the wide range of partnering approaches or mechanisms at the Agency’s disposal to strengthen local actors and systems for greater sustainability. During the project design process, Missions define project boundaries, a high-level theory of change, and an adaptable plan for implementation. This process results in a short Project Development Document (PDD). During project implementation, USAID staff work collaboratively alongside implementing partners to ensure that activities, taken together, achieve intended results and adapt as needed through continuous learning.

C. Activity Design and Implementation

Activity design refers to the process by which USAID determines how to advance the intended result(s) in a given country or region through a given type of implementing mechanism. In Missions, activities should contribute to development result(s) set forth in their strategy and the relevant PDD, where applicable. “Activities” range from contracts or cooperative agreements with international or local organizations, to direct agreements with partner governments, to partial credit guarantees that mobilize private capital, among other examples. Activities also include buy-ins under global agreements (e.g., “Field Support” agreements) that generate programmatic results. USAID often complements activities with actions undertaken directly by USAID staff, such as policy https://www.usaid.gov/about-us/agency-policy/series-200/references-chapter/201mag https://www.usaid.gov/about-us/agency-policy/series-200/references-chapter/201maz http://www.usaid.gov/ads/policy/200/201man

ADS Chapter 201 19 dialogue, stakeholder coordination, or capacity strengthening. During activity implementation, USAID staff provide technical direction for, and administrative oversight of, legal agreements and, in some cases, carry out activities directly. They also monitor, evaluate, and learn from implementation to track progress, make decisions, and inform course corrections as needed in an effort to maximize development outcomes per dollar spent and to ensure they are sustainable beyond the life of USAID-funded interventions.

D. Monitoring

Monitoring is the ongoing and systematic tracking of information relevant to USAID’s strategies, projects, and activities. USAID OUs should be practical and cost-effective when deciding which information to collect and only collect and report the necessary data needed that is directly useful for management decision making or reporting purposes. Wherever possible, OUs should avoid collecting data already available through other verifiable sources. Information derived from monitoring serves two important functions:

1) Monitoring data gathered during implementation supports learning and adaptive management. When curated, relevant and high-quality monitoring data are available to aid in analysis, complement and reinforce evaluation, and inform decisions during implementation, and USAID is better able to adapt in a timely way to ensure that strategies, projects, and activities contribute to the intended result.

2) Monitoring data is the backbone of the accountability structure at USAID.

Monitoring data provides the public with information on the progress USAID is making, and Washington and other external stakeholders with information (through the Performance Plan and Report (PPR) and other reporting processes) needed to inform decision-making. Monitoring data is used to track USAID's progress in following its 'Do No Harm' principle.

E. Evaluation

Evaluation is the systematic collection and analysis of information about strategies, projects, and activities as a basis for judgments to improve or inform decisions about programming. Evaluation also has a two-fold purpose: 1) ensuring accountability to stakeholders; and 2) learning to improve development outcomes and cost-effectiveness of programming. Timely, high-quality evaluation supports adaptive management and complements programmatic monitoring by generating evidence on what is working and what is not. USAID evaluations should use the highest level of rigor appropriate to the evaluation question. When USAID needs information on whether an intervention is achieving a specific outcome, the Agency strongly prefers the use of impact evaluations, including cost analysis that enables a comparison of the cost-effectiveness of the intervention to that of other interventions.

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F. Collaborating, Learning, and Adapting (CLA)

CLA is USAID’s approach to organizational learning and adaptive management.

Strategic collaboration among a wide range of internal and external stakeholders, continuous learning, and adaptive management connect all components of the Program Cycle and play an integral role in ensuring that USAID resources support local and U.S.

priorities. Sources for learning include data and information from monitoring, portfolio reviews, research findings, evaluations, analyses, knowledge gained from experience, and other sources. These sources may be used to develop plans, implement projects, manage adaptively, and contribute to USAID’s knowledge base to improve development outcomes. CLA helps ensure that USAID coordinates its investments with other development, humanitarian, and local actors, grounds them in evidence, and adjusts them as necessary throughout implementation to maximize development impact per dollar spent. Applying CLA practices in a systematic, intentional, and resourced manner throughout the Program Cycle helps to strengthen the locally led development agenda.

G. Budgets and Resources

Budgets should reflect policy decisions and the prioritization of resources to achieve USAID objectives.