USAID Call for Cooperative Agreements: Institutional Capacity Building for Public Procurement and Supply Chain Management in Health Systems

The USAID Call for Cooperative Agreements on Institutional Capacity Building for Public Procurement and Supply Chain Management in Health Systems is a flagship funding mechanism designed to address persistent gaps in health commodity availability, especially in low-resource settings. This overview provides a comprehensive analysis of the opportunity, its objectives, scope, and strategic relevance. The call is part of USAID's broader global health portfolio, which allocates substantial resources to strengthening health systems as a prerequisite for achieving universal health coverage and health security. The cooperative agreement explicitly focuses on building the capacity of national and sub-national institutions—such as ministries of health, procurement authorities, and regulatory bodies—to manage procurement and supply chain processes effectively, transparently, and accountably. The anticipated award size ranges from $5 million to $15 million over a three- to five-year period, covering activities such as needs assessment, curriculum development, training delivery, mentoring, technology adoption, and policy reform. Eligible applicants must demonstrate deep technical expertise in public procurement, supply chain management, and adult learning, as well as experience working in the target country. The deadline is July 20, 2026, with preliminary assessments recommended immediately to allow sufficient time for partnership building and proposal development. This opportunity is particularly timely given the lessons learned from the COVID-19 pandemic, which exposed the fragility of global supply chains and the critical importance of local capacity. USAID is now prioritizing investments that not only address immediate gaps but also build long-term resilience. The call emphasizes the use of innovative approaches, such as digital platforms for real-time supply chain monitoring, blockchain for traceability, and behavioral insights to improve compliance. Additionally, it mandates alignment with the Global Health Security Agenda (GHSA) and the Sustainable Development Goals, requiring applicants to articulate how their interventions contribute to broader development outcomes. To succeed, applicants must present a detailed technical approach that demonstrates an understanding of the local context, including cultural, political, and economic factors. The integration of gender equality and social inclusion (GESI) is non-negotiable, with specific strategies to ensure that women and marginalized groups benefit equitably from capacity-building efforts. For organizations considering applying, this overview highlights the need for a robust institutional framework. GSLI's training courses in 'Procurement & Supply Chain' and 'Financial Management for NGOs' can significantly enhance the proposal's credibility by demonstrating that the applicant has access to world-class capacity-building resources. Moreover, applicants should leverage local partnerships to ensure sustainability and compliance with USAID's localization policy. The compliance requirements are stringent, including adherence to the Automated Directives System (ADS), the Federal Acquisition Regulation (FAR), and 2 CFR 200. A thorough understanding of these regulations is essential, and GSLI's 'Grants Management' course can help navigate them. Overall, this call offers a transformative opportunity for organizations committed to strengthening health systems; however, it demands rigorous preparation, strategic partnerships, and a clear vision for impact.

Strategic Overview

The USAID Call for Cooperative Agreements on Institutional Capacity Building for Public Procurement and Supply Chain Management in Health Systems is a flagship funding mechanism designed to address persistent gaps in health commodity availability, especially in low-resource settings. This overview provides a comprehensive analysis of the opportunity, its objectives, scope, and strategic relevance. The call is part of USAID's broader global health portfolio, which allocates substantial resources to strengthening health systems as a prerequisite for achieving universal health coverage and health security. The cooperative agreement explicitly focuses on building the capacity of national and sub-national institutions—such as ministries of health, procurement authorities, and regulatory bodies—to manage procurement and supply chain processes effectively, transparently, and accountably. The anticipated award size ranges from $5 million to $15 million over a three- to five-year period, covering activities such as needs assessment, curriculum development, training delivery, mentoring, technology adoption, and policy reform. Eligible applicants must demonstrate deep technical expertise in public procurement, supply chain management, and adult learning, as well as experience working in the target country. The deadline is July 20, 2026, with preliminary assessments recommended immediately to allow sufficient time for partnership building and proposal development. This opportunity is particularly timely given the lessons learned from the COVID-19 pandemic, which exposed the fragility of global supply chains and the critical importance of local capacity. USAID is now prioritizing investments that not only address immediate gaps but also build long-term resilience. The call emphasizes the use of innovative approaches, such as digital platforms for real-time supply chain monitoring, blockchain for traceability, and behavioral insights to improve compliance. Additionally, it mandates alignment with the Global Health Security Agenda (GHSA) and the Sustainable Development Goals, requiring applicants to articulate how their interventions contribute to broader development outcomes. To succeed, applicants must present a detailed technical approach that demonstrates an understanding of the local context, including cultural, political, and economic factors. The integration of gender equality and social inclusion (GESI) is non-negotiable, with specific strategies to ensure that women and marginalized groups benefit equitably from capacity-building efforts. For organizations considering applying, this overview highlights the need for a robust institutional framework. GSLI's training courses in 'Procurement & Supply Chain' and 'Financial Management for NGOs' can significantly enhance the proposal's credibility by demonstrating that the applicant has access to world-class capacity-building resources. Moreover, applicants should leverage local partnerships to ensure sustainability and compliance with USAID's localization policy. The compliance requirements are stringent, including adherence to the Automated Directives System (ADS), the Federal Acquisition Regulation (FAR), and 2 CFR 200. A thorough understanding of these regulations is essential, and GSLI's 'Grants Management' course can help navigate them. Overall, this call offers a transformative opportunity for organizations committed to strengthening health systems; however, it demands rigorous preparation, strategic partnerships, and a clear vision for impact.

Who is it For?

This cooperative agreement is designed for a diverse range of eligible entities that demonstrate the institutional capacity, technical expertise, and operational footprint to implement large-scale capacity-building programs in health procurement and supply chain management. Primary recipients include U.S.-based and local non-governmental organizations (NGOs) with a proven track record in health systems strengthening, international development organizations such as UN agencies and multilateral development banks, academic institutions with research and training capabilities in public health and supply chain logistics, and private sector firms specializing in supply chain consulting, technology solutions, and capacity development. Additionally, consortia comprising multiple stakeholders—such as partnerships between international NGOs and local civil society organizations—are encouraged to apply, provided they designate a lead applicant that meets USAID's eligibility criteria. Eligible organizations must be legally registered and have a physical presence in the target country or region, with the ability to manage U.S. federal funds and comply with rigorous financial and reporting requirements. Priority will be given to organizations that demonstrate experience in at least three of the following areas: public procurement reform, health supply chain optimization, training and curriculum development, policy advocacy, and multi-stakeholder coordination. Furthermore, applicants must show commitment to localization, gender equality, and social inclusion, with specific strategies for engaging women, youth, and marginalized communities in program design and implementation. Organizations that lack direct experience in health procurement but demonstrate strong institutional capacity and can sub-contract technical partners will also be considered. GSLI recommends that applicants strengthen their proposals by including courses like 'Procurement & Supply Chain Management' and 'Monitoring & Evaluation' to build staff competencies and demonstrate a commitment to professional development.

Priorities

USAID's global priorities for this funding opportunity center on enhancing the effectiveness, transparency, and sustainability of health procurement and supply chain systems in partner countries. The donor seeks investments that directly contribute to the achievement of the Global Health Security Agenda (GHSA) and the U.S. President's Emergency Plan for AIDS Relief (PEPFAR), with a focus on ensuring uninterrupted availability of quality-assured health commodities—including medicines, vaccines, diagnostic tools, and medical supplies—especially for HIV/AIDS, tuberculosis, malaria, and reproductive health. Key performance indicators (KPIs) include: (1) reduction in stock-out rates for essential medicines by at least 50% within three years; (2) improvement in procurement lead times by 30%; (3) increase in the percentage of procurements using competitive bidding and transparent processes; (4) adoption of digital supply chain management systems in at least 50% of target health facilities; and (5) enhanced capacity of at least 200 procurement and supply chain professionals through accredited training programs. Additionally, USAID emphasizes alignment with the country's national health plans and the use of country systems where possible, promoting local ownership. Cross-cutting priorities include addressing gender disparities in supply chain workforce and ensuring that procurement processes incorporate sustainability criteria, such as reducing carbon footprint through efficient logistics. To align with these priorities, applicants must demonstrate how their interventions will strengthen regulatory frameworks, combat corruption, and foster partnerships with local private sectors. For GSLI, integrating 'Financial Management for NGOs' and 'Writing Winning Proposals' courses can help applicants build the financial and narrative capacity to meet these donor expectations effectively.

Eligibility

Eligibility for this USAID cooperative agreement is defined by a comprehensive set of financial, spatial, and legal requirements that applicants must satisfy to qualify for funding. Financially, organizations must demonstrate sound fiscal management capacity, including the ability to pre-finance up to 20% of project costs, as USAID typically reimburses expenses after incurrence. Applicants must submit audited financial statements for the last three fiscal years, with no material weaknesses or significant non-compliance findings. The organization must have an annual operating budget of at least $1 million for the past two years, ensuring sufficient scale to manage cooperative agreement budgets that typically range from $5 million to $15 million over three to five years. Spatially, the applicant must have a legally registered office in the target country or region, with evidence of operational presence and ability to recruit local staff. For international organizations, a memorandum of understanding with a local partner is acceptable but must detail shared responsibilities and risk management. Legally, the organization must be a non-profit or for-profit entity (though for-profits are allowed only if they commit to non-profit margin practices), registered under the laws of its home country, and compliant with all U.S. sanctions and anti-terrorism laws. Additionally, applicants must have a valid DUNS number and be registered in SAM.gov to receive federal funds. Organizations that are debarred, suspended, or otherwise excluded from federal contracts are ineligible. GSLI advises potential applicants to undergo a 'Grants Management' and 'Financial Management for NGOs' training to ensure compliance with these rigorous requirements and to strengthen internal controls, thereby enhancing eligibility and competitiveness. Furthermore, applicants must demonstrate experience in managing at least one previous USAID-funded award of $500,000 or more, or two comparable awards from other major donors (e.g., World Bank, DFID).

Path to Success

To maximize success in securing this USAID cooperative agreement, organizations must develop a strategic roadmap that integrates GSLI’s capacity-building expertise. The following four-step approach is recommended: **Step 1: Needs Assessment and Partner Alignment (Months 1-2):** Conduct a rapid assessment of procurement and supply chain gaps in the target country, using WHO’s assessment tools. Engage local ministries of health, procurement authorities, and civil society to identify priorities. Form a consortium with complementary partners, such as a local NGO for community engagement and a technology firm for digital solutions. GSLI’s course 'Monitoring & Evaluation (M&E)' can train staff to design evidence-based assessments that capture baseline data and stakeholder needs. **Step 2: Proposal Co-Design with GSLI Integration (Months 3-4):** Develop a results-oriented proposal that explicitly incorporates GSLI training courses to build institutional capacity. For example, integrate 'Procurement & Supply Chain' and 'Project Management for Development' courses as part of the capacity-building curriculum for local procurement professionals. Ensure the proposal outlines a clear theory of change linking training outputs to outcomes like reduced stock-outs and improved procurement efficiency. Use GSLI’s 'Writing Winning Proposals' course to enhance the narrative and compliance with USAID’s ADS 303 requirements. **Step 3: Budgeting and Compliance Review (Month 5):** Prepare a detailed budget that allocates funds for GSLI training (approximately 10-15% of total budget for sustainability). Include costs for capacity-building activities, monitoring, and evaluation. Conduct a financial audit readiness check using GSLI’s 'Financial Management for NGOs' training to ensure compliance with federal cost principles (2 CFR 200). Use GSLI’s 'Grants Management' course to develop robust internal controls and reporting mechanisms. **Step 4: Submission and Pre-Award Preparation (Month 6):** Submit the proposal before the deadline (July 20, 2026). Simultaneously, prepare for pre-award surveys by USAID, including site visits and financial reviews. GSLI’s 'Fundraising & Resource Mobilization' course can help diversify funding sources and demonstrate organizational sustainability. After submission, engage with USAID’s program officers to clarify any technical details. With GSLI’s support, applicants can position themselves as high-capacity partners ready to implement impactful programs. This integrated approach enhances credibility and addresses USAID’s emphasis on local ownership and capacity sustainability.

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Deadline: 2026-07-20

Persona: General

Urgency: Normal