Once a Lead Firm has submitted an application (in response to the IFA) that shows promise, has an acceptable impact logic and has been prioritized by the project team, the team can begin detailed planning/budgeting exercises with the firm to structure collaboration and develop a formal agreement with them. This subfolder includes example “memoranda of understanding” (MOUs) and MOU addenda that detail the LF’s initiative and the technical/ financial support that will be provided by the project. These agreements can also be referred to as “Market Actor Agreements.”
3.1 Example Memorandum of Understanding (MOU)
The MOU provides an overview of the activities that the LF will implement, along with general legal provisions, but does not make firm commitments from the project for technical and financial support. By signing a general MOU, the project can show commitment without allocating resources. In addition, MOUs can show progress to donors while the planning of LF initiatives are finalized.
3.2 Addendums to Memorandum of Understanding (MOU Addendum)
An MOU Addendum builds on the MOU and describes the specific roles, responsibilities, budget, terms and conditions of a specific LF initiative that the project agrees to support. The project can have several MOU Addendums with one LF (usually sequential) that cover different kinds of activities. The addendum includes a description of the LF initiatives to be undertaken, the relationships among the parties, financial and logistic responsibilities, a detailed work plan and budget for the LF initiative, reporting and information sharing responsibilities, and LF reimbursement/payment modalities.
Addendum with a LF interested in expanding their product outreach (along with information on how to properly use the products) to underserved areas through training, promotion, and demonstration activities.
This is an Addendum that outlines the expectations of the project and the LF for an international exchange visit.
3.3 Lead Firm Financial Report Format
This document presents a template that should be used by companies collaborating with the program to prepare their financial reports. These reports include expenditures for their initiative, and a reimbursement request for agreed-upon cost share amounts. The program staff can provide an orientation on how to use this template to the LFs it is collaborating with before they begin implementation.
3.4 Lead Firm Work Plans
These are example LF work plans that can be developed by the LF with facilitation support from the project. The objective of these plans is to ensure that activities under their initiative are well planned. Depending on the complexity of the LF’s initiative and proposed activities, the planning sessions with the LF to prepare this work plan can take several days. The program should ensure that the LFs have planned for each activity in adequate detail. The LF work plan is developed in conjunction with a detailed budgeting exercise that the program also conducts with the LF.
Detailed calendar of activities that the LF will implement as part of its initiative.
Summary plan activities that the LF will implement as part of its initiative.
3.5 Illustrative Lead Firm Initiative Budgets
These excel sheets allow project staff to carry out detailed budgeting exercises with Lead Firms whose proposed initiative looks promising. This exercise helps the LF to carefully plan the activities and related expenditures in their proposed initiative and allows project staff to ensure that those expenditures are appropriate (i.e. in conformity with cost share rules in the IFA) and in line with local norms. Normally the LF submits a summary budget as part of their application to the IFA – this detailed budget is then developed together with project staff. The detailed budget is developed in conjunction with a work plan development exercise that the project also conducts with the LF.