The Trade and Development Agency

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1. Purpose of the agency

The Trade and Development Agency (TDA) is an agency of the United States that operates under the foreign policy guidance of the Secretary of State (22 U.S.C. 2421(a)). Its purpose is to promote United States private sector participation in development projects in developing and middle-income countries. Special emphasis is placed on economic sectors with significant United States export potential, such as energy, transportation, telecommunications and environment.

2. What the Director may fund

The Director is authorized to work with foreign countries to carry out the agency’s purpose. The countries may include those in which United States development programs have been concluded and those not receiving assistance under subchapter I of the same chapter of title 22 (22 U.S.C. 2421(b)(1)). The Director does so by providing funds for feasibility studies, architectural and engineering design, and other activities related to development projects that provide opportunities for the use of United States exports.

The funds may support feasibility studies for the planning, development and management of, and procurement for, bilateral and multilateral development projects (22 U.S.C. 2421(b)(2)). Those studies may include training activities undertaken in connection with a project, and their purpose is to promote the use of United States goods and services in such projects (22 U.S.C. 2421(b)(2)). They may also be used for architectural and engineering design.

That design work includes concept design, which establishes the basic technical and operational criteria for a project (22 U.S.C. 2421(b)(2)(A)). Examples given are architectural drawings for a proposed facility, evaluation of site constraints, procurement requirements and equipment specifications. It also includes detail design, which sets forth specific dimensions and criteria for structural, mechanical, electrical and architectural operations, and identifies other resources required for project operations (22 U.S.C. 2421(b)(2)(B)).

3. Information, cooperation and cost sharing

The agency shall disseminate information about its project activities to the private sector (22 U.S.C. 2421(b)(3)(A)). Other agencies of the United States Government shall cooperate so that the agency can more effectively provide informational services to the private sector on trade development and export promotion related to development projects (22 U.S.C. 2421(b)(3)(B)). Funds made available to carry out the section may be used notwithstanding any other provision of law (22 U.S.C. 2421(b)(4)).

To the maximum extent practicable, the agency shall require corporations and other entities to share the costs of feasibility studies and other project planning services funded under the section (22 U.S.C. 2421(b)(5)(A)). To the same extent, it shall also require reimbursement of its funds if the corporation or entity concerned succeeds in project implementation (22 U.S.C. 2421(b)(5)(B)).

4. The Director and staff

The agency is headed by a Director appointed by the President, by and with the advice and consent of the Senate (22 U.S.C. 2421(c)(1)). The Director may appoint such officers and employees as the Director considers appropriate and determine their functions (22 U.S.C. 2421(c)(2)(A) and 22 U.S.C. 2421(c)(2)(B)). Of those officers, 2 may be appointed without regard to the title 5 provisions governing appointments in the competitive service (22 U.S.C. 2421(c)(2)(C)). They may also be paid without regard to chapter 51 or subchapter III of chapter 53 of title 5 (22 U.S.C. 2421(c)(2)(C)). Under regulations the President prescribes, those 2 may be entitled to reinstatement to their prior or a comparable position upon removal, except for cause (22 U.S.C. 2421(c)(2)(D)).

5. Reports and audits

The President reports each year on the agency’s activities in the preceding fiscal year, not later than December 31 (22 U.S.C. 2421(d)). The Senate Committee on Foreign Relations and the House Committee on Foreign Affairs receive it (22 U.S.C. 2421(d)). Except as otherwise provided, the agency is subject to chapter 35 of title 31 (22 U.S.C. 2421(e)(1)).

An independent certified public accountant shall perform a financial and compliance audit of the agency’s financial statements each year, under generally accepted Government auditing standards, and report the results to the Director (22 U.S.C. 2421(e)(2)). The audit takes into consideration any standards recommended by the Comptroller General. The financial statements are presented in accordance with generally accepted accounting principles. The audited statements and the accountant’s report go to Congress not later than 6½ months after the end of the last fiscal year covered by the audit. They are part of a report containing, to the extent applicable, the information identified in section 3512 of title 31. The Comptroller General may review the accountant’s audit and the report to Congress.

The Comptroller General shall instead audit the financial statements if the Comptroller General considers it necessary or upon the request of the Congress (22 U.S.C. 2421(e)(3)). Books, records, workpapers and property of the agency and the auditor that are necessary for these audits shall be made available to the representatives of the Government Accountability Office designated by the Comptroller General (22 U.S.C. 2421(e)(4)).

6. Funding and the development banks

The authorization of appropriations is $79,500,000 for fiscal year 2020 and such sums as may be necessary for each fiscal year thereafter, in addition to funds otherwise available (22 U.S.C. 2421(f)(1)(A)). Appropriated amounts are authorized to stay available until they are expended (22 U.S.C. 2421(f)(1)(B)).

The agency should provide, as appropriate, funds to multilateral development banks for technical assistance grants (22 U.S.C. 2421(f)(2)(A)). A technical assistance grant means funding by those banks of services from the United States in connection with projects and programs the banks support, including engineering, design and consulting services (22 U.S.C. 2421(f)(2)(B)). The term multilateral development bank takes its meaning from section 262r(c) of title 22. The related capital project rules are covered in capital projects in foreign assistance.

7. Links to the capital project rules

The agency funds feasibility studies and concept and detail design for development projects (22 U.S.C. 2421(b)(2)). A separate definition used for foreign assistance capital projects also lists related engineering design, both concept and detail design, and feasibility studies or similar engineering and economic services (22 U.S.C. 2421e(2)). The capital projects office established under those provisions is part of the Agency for International Development rather than the TDA (22 U.S.C. 2421a(a)).

Key terms

TDA	The Trade and Development Agency, which funds project planning tied to U.S. exports.
Feasibility study	Planning work for a development project that the agency may fund.
Concept design	Design that sets the basic technical and operational criteria for a project.
Detail design	Design that sets specific dimensions and criteria for a project.
Technical assistance grant	Development bank funding of U.S. services for bank-supported projects.

Every statement above links to the document behind it. The full source list for this piece is on the sources page.

This page describes public United States government programs for general information. It is not legal, regulatory or procurement advice, and it does not address the facts of any particular case.

How Sentfore supports this

Projects that start with studies end with delivery on the ground. Sentfore works at the delivery end of defense programs in difficult environments, providing secure movement, protective security, facilities and life support. Requirements can be sent through the contact page.