Prepprocess Guidelines for Commoditymanagement

Prepprocess Guidelines for Commoditymanagement

PREPProcess Guidelines for CommodityManagement

(Adaptedfrom The PREP Process-An ImplementingPartner'sGuidetoaQualityPREP,MelissaJoy, USAID/Officeof Food forPeace,January2014,

INTRODUCTION

ThePREP(PipelineandResourceEstimateProposal) describesanAwardee’scommodityrequests andcashresourcesforoneyearof programming, andinformsFFPof whatwillbeaccomplishedusing thoseresources.

TheAward prepared byUSAIDOfficeof FoodforPeaceexplicitlyoutlinesthelifeof award (LOA) resourcesforcommoditymetrictonnages,freightestimates,section202(e)funds, andinternal transport,storage,andhandling(ITSH)funds. Discusswithin-countrystaff and AORbefore requestingasubstantialprogrammatic orfinancialchangefromtheapproved Award. TheAORwill makethefinal determinationonif andhowto moveforwardinmodifyingtheAward.

ThePREPshoulddiscuss anyunforeseencircumstances thataroseandaffected theAwardee’s abilitytoachieveresults. The PREPshouldshowhowthe program’sfutureplanstaketheseinto account.ThePREPshouldalsohighlight ongoingorpotential impedimentstoachievingresults.

PROCESS (Totaltimefromstart tofinish–about2months)

Submission

1.AOR,Mission/Regional Office,andAwardeenegotiatea PREPsubmissiondate(usually sometime betweenAugustandNovember,taking intoconsideration Awardee’sfirst anticipatedcallforwardusingresourcesapproved inthe PREPbeingsubmitted).

2.Prior to thesubmission date,FFP“initiates”aPREPinFFPMIS andnotifiesAwardee.

3.Awardeeenters PREPdata/informationintoFFPMISandinformsFFP.

4.FFP (AMEX)conductscompleteness check andconfirms receipt.

ReviewandNegotiation

  1. FFPstaffin-country, at regional office,andin WashingtonaccessPREPtobeginreviewprocess.
  2. FFPforwards ESR toMissionEnvironmental Officer(MEO)for review/clearance.
  3. FFPstaffandMEOprovidecommentsonthePREPtotheAOR.
  4. AOR providesconsolidated PREPfeedback inanIssues Letter, usuallyvia email.
  5. Awardeeresponds to theIssuesLetter,via email,atameeting, etc.
  6. FFPstaffandMEOreviewtheresponseandengagetheAwardeefurther,if needed.
  7. MEO,then FFP, clears ESR.
  8. ESR is forwarded toDCHABureau EnvironmentalOfficer(BEO)for finalclearance.
  9. BEOclears ESR.

FinalSubmissionandApproval

  1. AOR advisesAwardeethattheir PREPissatisfactory.
  2. AwardeeupdatesFFPMISwith updated(final)PREPdocuments.
  3. FFPfield staff provideconcurrenceon PREP.
  4. AOR initiatesapproval processwithinFFP. FFPAgreement OfficerapprovesPREP;commoditiesand/orcash cannowbeprovided.
  5. Awardeeenters commoditiesintoWBSCMtobecalledforward,in wholeor inpart.
  6. FFP (AMEX)providessignedPREP modificationtoAwardeefor counter-signature.
  7. Awardeereturnscounter-signed modification.
  8. FFPapprovescall forwardinWBSCM.
  9. FFP obligatescash resources,inwholeorin part.

KEYPREPCOMPONENTS

PREPNarrative[attachment]

ThenarrativeshouldinformUSAIDaboutanyoperatingdifficultiesthatoccurred, are occurring,or areexpectedto occurin thecoming year.

Summarizethe total commodities,cash,andresourcestobeprogrammed,andthetotal beneficiariestobereached(as wellasbreakdowns per major activity).

IncluderequirementsoftheBellmonAnalysis,forbothmonetization (MTZ)anddistribution activities.

Detailandjustifyanychangesfromthe approved awardin:

  • Food aidrationsizeand/orcomposition
  • Targetpopulation(s)
  • Numberor typeof activities supportedbythefoodaidrations
  • Eligibilitycriteria
  • Beneficiarynumbers

Detailed ImplementationPlan(DIP)[attachment]

The DIPdescribesactivitiesthatcorrespondtothe resourcesrequested intheAER CPin orderto meetthe Awardobjectivesandtargetsforthefiscalyear.

It includessectionsoncommoditymanagementaswellas trainingandgovernment/local capacitybuildingactivities.

Clearlyshowwhencommoditieswillbedistributed ormonetized.Thisplanshouldmesh with whatis shown intheCommodity Pipeline.

ReflectchangesfrompastDIPs(newadditions,ongoingactivities,removed activities,etc.).

ProgramBudget: Narrative, ComprehensiveandDetailedBudgets[attachments]

Required forprimeAwardeeaswell asanySub-Awardee(s).

TheBudgetNarrative(nopagelimit)shouldexplain/justify:

  • Divergencesfrom approvedLOA budget,suchaschangesinpersonnelorinternational travel,andmajorshiftsinspendingacrosscategories (10%+).While FFPprobablywon’t increasetheannual budget, discuss implicationsof shortfallsandways totackle them.Underexceptional circumstances, year-to-year fluctuationsmay beacceptablewithinthe budget,butthetotal LOA budgetisexpected toremainthesame.
  • Procurementofcapital goods (goodsoverUS$5,000)
  • Additionofnewbudgetlineitems

Maintainconsistencyinbudgetpresentationandcategoriesfrom theapprovedAward.

ConsultthemostrecentFFPInformationBulletinonsection 202(e)funds andITSHfunds, includinga matrixaddressingmonetizationproceeds,for specificinformationregardingthe useandeligibilityofthesefunds:

RationCalculator,AnnualEstimate of Requirements(AER),andCommodityPipeline (CP) [FFPMISentry, plusnarrative]

Entered byAwardees directlyintoFFPMIS,thesetabsprovideFFPwith thetotal commoditiesandtypesneeded perprogram, when they willbeorderedandforwhat activity, andthe program’sinflows/outflowsovertheyear. (NOTE:Periodic updatesmaybe requested byFFP/Wduringtheimplementationyear,butnomorethanquarterly, if necessaryfor resourcemanagement.)

AllcommoditiesmustbeenteredintotheRationCalculator tabfirst, even forMTZactivities,due toautomaticcalculations thatpre-fill cells insubsequentsheets.

FFPMISautomatically tallies thecommodityandfreightprices from thesetabs–andtotal costs toFFP–soaccuracyis critical.Detailed instructions areprovided intheAER andCPand shouldbeadhered toclosely.

Commodityloans/transfers –toyour programor fromyour program–needtoshowa positivevalueor negativevalue(e.g.,-100MT).

Totalsprovided inthe AERCPshouldmatch thoseprovidedin thePREPnarrative.

FFPMISRationCalculatorNotes:

AllowsAwardeestoenter foodaidrations per program element,activity,andlocation.Based uponthenumberof foodaiddistributions,the foodaidrationcalculator willthenprovidethe totalmetrictonnagefor oneimplementation yearpercommodityandcategory.

If a commodityisonlybeingused forMTZ,entertheMTsas“0”in theRation Calculator.

Rationsizeperrecipientsays grams, butaccountsforall measurements(liters, etc.).

Proteinandenergyrequirementsareautomaticallycalculated.

For each commoditytotal requested,ensurethetotalmatchestheAER(for example, byroundingto the nearest10).

Monetizationactivities, bynature,havezero(0)recipients. However, enteractivityname(s)todefinehowtheseproceeds will beused.

FFPMISAER Notes:

Commodities for directdistribution(DD)listedonthe ration calculator shouldautomatically transfer tothe AER. UsetheAERtab to enterMTZ information.

On theAER tab,select“Single Year”span.

On theAER tab,leave“Status”blank.

Gobackto themainAERtabtoconfirm thatallDDandMTZcommoditiesarelisted.

CommodityPipeline(CP)

ReferencetheFFPCommodityCalculator forthe inlandrate (ifapplicable),at:

EnterMTZcommoditiesunder “Arrivals”, and,when sold, removethemunder“Usage.”

Note:CommodityandFreight(C&F)costsautomaticallycalculateinFFPMIS. Inlandrates needtobeprovided.

Executive SummaryTable(EST)[FFPMISentry, plus narrative]

TheESTsummarizesaprogram’s plannedresourcesbased onthe entered cashrequirements and AER and CPdata.Thesefiguresarethereforeestimates for FFP of theactualCF andcashtobeobligated thatyear.

Enter thetotal newcash resources(202(e),ITSH,etc.)beingrequestedin thePREP (notcarry over). Donotcompleteany othersection.

When enteringthe “Month,”enterthemonth ofthe1stCallForwardforthePREP.

After youenterandsaveanewEST, theAERandCPauto-filltheExecutiveSummaryTableswith commodityandpricedata.

Makesurethe dataisaccurateacrossall tabs.

Other[attachment]

Environmental StatusReport(ESR)

If changesin theBrandingStrategyandMarkingPlan(BS/MP)haveoccurred, theAORmay needtoworkwiththeAwardeetoupdatetheBS/MPduringthe PREPreviewprocess.

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