Food for Progress Questions and Answers week ending 05.03.2023.pdf

Food for Progress FY2022 Notice of Funding Opportunity

Questions and Answers

Questions received to PPDED@usda.gov through May 3, 2023

NOTE: Questions are answered in the order received. FFPr recommends using the document

“Find Text” function to find specific items.

The video recording of the Public Meeting is uploaded to FAIS and accessible to all FAIS registered users at this link:

https://apps.fas.usda.gov/fais/webapp/media/FY23%20IFAD%20NOFO%20Public%20Meeting%20Video

%2020230323.mp4

1. Q: On page 87 of the NOFO, Home Office personnel are budgeted under activity one. Is it allowable to charge U.S.-based staff salaries under activities if they are directly involved in the day-to-day management of the project?

A: It is allowable to charge U.S.-based staff under activities if the level of effort (LOE) allocated to the activity is focused solely on activity-related functions.

2. Q: Organizations implementing U.S. Government (USG)-funded development projects may be exempt from certain taxes and duties imposed by the government of the country where they are working. Countries and individual USG agencies negotiate bilateral agreement with provisions regarding the taxation of U.S. foreign assistance. Does USDA have an exemption from local taxes in the target countries? If not, should bidders add in budget line items for taxes required by local law, including value added tax (VAT)?

A: USDA does not enter into bilateral agreements with individual countries, and tax exemptions are granted at the discretion of each host country. Other federal awarding agencies’ policies/tax exemptions do not apply to USDA/FAS. For example, a USAID policy under a USAID bilateral agreement would not apply to a Food for Progress project.

Food for Progress can only offer limited assistance in obtaining tax exemptions; therefore, bidders may wish to include budget line items for local taxes, including value added tax (VAT) in their proposed budget. If tax exemption is obtained once an award is made, a budget realignment could be submitted to reallocate funds originally budgeted for taxes.

Taxes, including Value Added Tax (VAT), are addressed in 2 CFR 200.470 Taxes (including Value

Added Tax).

https://apps.fas.usda.gov/fais/webapp/media/FY23%20IFAD%20NOFO%20Public%20Meeting%20Video%2020230323.mp4 https://apps.fas.usda.gov/fais/webapp/media/FY23%20IFAD%20NOFO%20Public%20Meeting%20Video%2020230323.mp4