1 - (PDF, 101 mb) - USAID

ACTION MEMORANDM FOR THE ASSISTANT ADMINISTRATOR FOR AFRICA
FROM: AFR/DR, James M. Kel.ly
SUBJECT: Request for Lncrease in Amount of Shelf items That Mav
be Procured for the Project
Problem:
of
A waiver is needed of the limitation set
4(b)
forth
Chapter
in paragraph
18 of Handbook 1B, that shelf item purchases
project
for
from
the
Code 899 countries cannot exceed 10 percent or $10,000
of the total value of local currency expenditures.
a. Cooperating Country : Mauritania
b. Nature of Funding : Grant 682-0204
c. Project : Vegetable Production
d. Description of Goods : POL products and cement
e. Approximate Value : $55,000
Discussion:
(1) Shelf items are defined in Chapter 11 of Handbook 15 and Section
18a4 of Handbook 1B as commodities which are normally imported into
the cooperating country and kept in stock in the form in which imported
for sale to meet a general demand in the country for the item.
(2) Shelf items from Code 899 countries are limited to items that cost
$2,500 or less per unit and cannot exceed ten percent of the local costs
of the project or $10,000 - whichever is greater.
(3) Section 18D of Handbook 1B indicates that the Assistant Administrator
may approve waivers of local cost financing policies.
(4) An increase in the total amount of shelf items that may be procured
for this project is required for procurement of up to $55,000 for POL
products and cement.
C5) These relatively small amounts make procurement in the U.S. and
transport to Mauritania both unreasonably costly and impractical.