Utilizing the support of USTDA grant funding, overseas project sponsors select U.S. firms to perform USTDA-funded work in one of two ways. The first method is through a competitive proposal process via an announcement posted on the Federal Business Opportunities website. The second method is through "sole-source" grants, in which the overseas project sponsor has already identified a U.S. firm as a partner or preferred supplier on the project. U.S. firms that are selected by overseas project sponsors to perform work under sole-source USTDA grants are expected to submit a separate, detailed project proposal to USTDA, and typically share the cost of the work with the Agency and participate in a success fee program.
Please review USTDA's Outline for Sole-Source Proposals..
U.S. Firm: The U.S. firm that is selected by an overseas project sponsor to perform the USTDA-funded work. To be eligible to perform USTDA-funded work, U.S. firms must meet USTDA's Nationality Requirements.
Overseas Project Sponsor: The foreign entity, public or private, responsible for developing an infrastructure-related project in the developing or middle-income country. Typically, the overseas project sponsor is responsible for securing or providing project implementation financing and for making procurement decisions during that implementation. If applicable, the overseas project sponsor would typically also have the property or concession rights to develop the project.
Please note that both the U.S. firm and the overseas project sponsor must successfully complete USTDA's due diligence review, and one of the following due diligence forms: U.S. Firm Form | Private Sector Grantee Form | Parastatal Grantee Form.
Cost-Sharing and Success Fees
U.S. firms interested in partnering with an overseas project sponsor on a sole-source USTDA project are expected to share the cost of the work with the Agency and also typically participate in a success fee program.
Cost-Sharing demonstrates the U.S. firm's commitment to the work and interest in project implementation following the completion of the USTDA-funded activity. USTDA, furthermore, is required by law to seek contributions from participating U.S. firms to the maximum extent practicable. The level of the U.S. firm's cost share contribution varies based on several factors, including the amount of funding requested from USTDA and the potential commercial benefits to the U.S. firm following the work. Please note that no fee or profit is allowed as part of the USTDA-funded activity.
Success Fees are intended to recoup USTDA's grant funding in instances where the U.S. firm commercially benefits from the USTDA-funded activity. Potential commercial benefits include project investment, return on financing, and revenue generation from the sale of goods and services. The requirement to pay the success fee is triggered if the U.S. company receives commercial benefits related to project implementation.
A "Success Fee and Cost Share Agreement" is an agreement that sets forth the cost share contribution from the U.S. firm and the success fee arrangement. The Success Fee and Cost Share Agreement is signed by USTDA and the U.S. company, and must be signed before the Grant Agreement is finalized. Please review our model Success Fee and Cost Share Agreement for your reference.
A "Grant Agreement" is the primary agreement for the USTDA-funded activity and contains the Terms of Reference and the USTDA Mandatory Contract Clauses. The Grant Agreement is signed by USTDA and the overseas project sponsor. Please review our model Grant Agreement for your reference.
A "Contract" is the secondary agreement for USTDA-funded activity and contains the identical Terms of Reference and USTDA Mandatory Contract Clauses from the Grant Agreement, as well as the payment milestones and other provisions. The Contract is signed by the overseas project sponsor and the U.S. firm, and USTDA must review and approve the Contract before the USTDA-funded work can proceed. Please review our model Contract and our USTDA Secondary Agreements - Guidelines to Assist Grantees and Contractors for your reference.