If you’re reading this article, you’re probably aware that there has been a steadily increasing need for cost preparers, both in-house and freelance, for USAID implementing partners. So if you’ve ever considered becoming a cost preparer, now is a great time to jump in!
So, what exactly are some of the key skills you’ll need to know if you want to take on this challenge? Read on to find out…
1. Translating Technical Needs Into Line Items, Quantities and Unit Costs
One of the greatest challenges you’ll face in cost proposal preparation is figuring out what to actually put into your budget. As someone who has trained dozens of aspiring cost preparers, I’ll often hear “non-cost” folks indicate that developing a proposal budget is a complete mystery to them or that they “just wouldn’t even know where to start”. This is a completely understandable concern to have. But the good news is that, as the cost preparer, you shouldn’t be expected to know where to start. That’s because a complete, realistic and accurate cost proposal is almost entirely dependent on the information you gain from the technical writers and strategists. Unless you are a technical expert, no one expects you to come up with staff titles, travel plans, or technical activities on your own. And even if you are a technical expert, it doesn’t mean you know the specifics of the strategy and methodology your team is preparing. So keeping a steady line of communication open with your team members is critical so you can translate that information into a realistic and reasonable budget.
2. A Solid Understanding of USAID Regulations
There’s no way around this one, and it’s daunting for anyone who does not consider themselves an expert in compliance. But it’s a must for any cost preparer. This is because USAID, as part of their cost analysis of your proposal, will assess your budget for allowability. In essence, that means compliance with the applicable regulations. Presenting unallowable costs in your proposal could cost you the award, as it sends a message to USAID that your firm does not have a solid grasp of the regulations, which they’ll expect to see during implementation. And if they don’t see that understanding in the proposal, how can they expect it to show up after award? Perhaps the most important regulations to get familiar with are the FAR Part 31 cost principles (or 2 CFR 200, if you’re with a non-profit or educational institution); travel regulations; best value and fixed fee justifications; subcontractor responsibility determination and consent requirements; and the Department of State Standardized Regulations (DSSR), if your company offerors allowances and differentials to expatriate personnel, and is bidding specifically on acquisition opportunities (assistance regs are a different beast…more on that another time!). Yes, that’s a lot, but getting a handle on these regs is not impossible with the right training and guidance.
3. A Command of Excel
When most people think about cost proposals, they think of Excel, huge workbooks with dozens of tabs, and mystifying links and formulas. Excel is obviously an important element to cost proposal preparation that is not to be overlooked, as budgeting requires creative use of Excel formulas, name management and linking in order to mitigate the risk of human error and ease the headaches for a cost preparer when the inevitable changes come from the ever-evolving technical approach.
4. Ability to Negotiate with and Manage Subcontractors
In your role as cost preparer, you’ll need to have the skill set of not just reviewing your subs’ budgets for allowability, reasonableness, and allocability, but also to determine that they’re a responsible source, and that your company can solidly convey to USAID that they are the right partner for the job. USAID expects their primes to conduct their own due diligence of their subs, and your proposal will need to reflect that you’ve done your homework.
If you’ve read this far, I’ll take it to mean I haven’t scared you off from trying your hand at becoming a cost preparer! That’s a good thing because Akiri offers a unique online course to help you master USAID cost proposals. And, if you happen to be looking for a way to spend your professional development funds that your organization is offering before the end of 2024, this is a great way to check off two items from your to-do list!
In the Mastering USAID Cost Proposals training, we cover all of the above topics and more. And unlike many other cost proposal trainings out there, Akiri’s training was developed with not only budgeting in mind, but also a strong emphasis on compliance and partnering negotiations and management. That means you’ll walk away from this training with a more holistic understanding of what it means to develop a compliant and responsive cost volume. In turn, your cost proposals will pass muster when USAID conducts their cost evaluation of your budget and will send a message to the CO that your company is a responsible source who is ready to implement the award!
You can read more about the curriculum, see a detailed overview of the lesson plan, and sign up to start today by clicking here.
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