Opportunity Information: Apply for APS OAA 16 000001 ADDENDUM PACE
PARTNERING TO ACCELERATE ENTREPRENEURSHIP (PACE) 3.0 is a USAID-funded opportunity issued as an Annual Program Statement (APS) that focuses on building alliances with the private sector to tackle major development challenges in the developing world while also advancing the interests of the partners involved. The core idea is collaboration: USAID is explicitly looking for private companies and market actors to propose practical, business-relevant ways to work together, not one-off charity projects. The program is designed to surface concepts where there is a clear development problem to solve, a credible role for private-sector capabilities (capital, technology, distribution, expertise, supply chains, investment), and a shared value proposition where both USAID and the partner(s) benefit from the results.
PACE 3.0 is open to a wide range of applicants and partnership configurations. USAID invites participation from private businesses, financial institutions, chambers of commerce, industry and trade associations, private foundations, entrepreneurs, investors, and philanthropies, along with other private-sector organizations. At the same time, the APS encourages implementing partners and other non-private entities (such as NGOs, universities, and other organizations) to team up with private-sector partners to identify urgent development constraints and co-design early-stage concepts to address them. In practice, that means an NGO or university could be the prime applicant, but the proposal is expected to be grounded in real private-sector engagement and incentives rather than relying only on donor funding.
A major selection preference is given to alliances that show a genuine long-term commitment to the region being targeted and a recognized business interest in the concept being proposed. This is an important signal about what USAID wants to fund: partnerships where the private-sector partner has a reason to stay engaged after the grant ends (for example, expanding a market, strengthening a supply chain, reaching new customers, de-risking investment, or developing a workforce), which increases the chances of sustainability and scale. The APS frames these partnerships as a way to produce stronger development outcomes by aligning the strengths and motivations of businesses, NGOs, universities, governments, and donors.
Eligibility is broad, but it is limited to legally recognized organizations; individuals cannot apply. USAID states that eligible applicants can include U.S. and non-U.S. private businesses, business and trade associations, foundations, U.S. and non-U.S. NGOs (including faith-based organizations), international organizations, U.S. and non-U.S. colleges and universities, civic groups, and regional organizations, among others. Public and private universities are generally treated like NGOs under U.S. government rules and are eligible, although non-U.S. universities located in countries that are ineligible for U.S. foreign assistance under the Foreign Assistance Act (FAA) or related appropriations restrictions are not eligible.
The APS also clarifies how USAID funding rules affect for-profit participation. Under U.S. assistance regulations (referencing 22 CFR 200.400 and related sections), USAID prohibits paying fee or profit to the prime recipient under assistance instruments, and this prohibition can also apply to sub-recipients when they meet the definition of a recipient. In other words, a for-profit organization can participate and even serve as an applicant in some cases, but it should not expect to earn profit as part of the assistance award itself. Importantly, USAID notes that “forgone profit” cannot be counted as cost-share or leverage. However, if a for-profit is engaged through a procurement-style buyer-seller subcontract for goods or services (a contractor relationship rather than a recipient relationship), then profit is allowed on that contract. The APS also notes that grant funds may be used to build the capacity of a local organization (for-profit or non-profit) if that supports the alliance objectives and development results.
From an administrative standpoint, the opportunity is listed as discretionary and uses an “Other” funding instrument type and “Other” activity category under CFDA 98.001. The opportunity information provided shows a funding opportunity number of “APS OAA 16 000001 ADDENDUM PACE,” with a listed award ceiling of $2,000,000. The original closing date shown is July 31, 2017, and the posting/creation date is April 26, 2017. While the notice does not specify the number of expected awards in the provided excerpt, the ceiling indicates USAID anticipated funding alliance activities at potentially substantial levels per award, depending on the concept and partnership structure.
Overall, PACE 3.0 is best understood as an invitation to propose co-created, private-sector-driven development alliances that use USAID support to unlock bigger, longer-lasting outcomes than donor funding could achieve alone. Strong proposals under this type of APS typically emphasize a clearly defined problem, a compelling partnership rationale, credible partner commitments, and an approach that can sustain itself because the private-sector partner has a durable strategic interest in continuing the work.Apply for APS OAA 16 000001 ADDENDUM PACE
- The Agency for International Development in the other sector is offering a public funding opportunity titled "PARTNERING TO ACCELERATE ENTREPRENEURSHIP (PACE) 3.0" and is now available to receive applicants.
- Interested and eligible applicants and submit their applications by referencing the CFDA number(s): 98.001.
- This funding opportunity was created on 2017-04-26.
- Applicants must submit their applications by 2017-07-31. (Agency may still review applications by suitable applicants for the remaining/unused allocated funding in 2026.)
- Each selected applicant is eligible to receive up to $2,000,000.00 in funding.
- Eligible applicants include: Others.
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PACE 3.0 (Partnering to Accelerate Entrepreneurship) - Frequently Asked Questions (FAQs)
1) What is PACE 3.0?
PACE 3.0 (Partnering to Accelerate Entrepreneurship) is a USAID-funded opportunity issued as an Annual Program Statement (APS). It focuses on building alliances with the private sector to address major development challenges in the developing world while also advancing the interests of the partners involved.
2) What kind of projects is USAID looking for under this APS?
USAID is looking for practical, business-relevant collaboration concepts that tackle a clear development problem and make credible use of private-sector capabilities (such as capital, technology, distribution, expertise, supply chains, or investment). The intent is not to fund one-off charity projects, but rather to support alliances where there is a shared value proposition and durable incentives for partners to stay engaged.
3) What is the core idea behind PACE 3.0?
The core idea is collaboration between USAID and private-sector actors (often alongside NGOs, universities, and other organizations) to co-design solutions where both development outcomes and partner interests are advanced. The program is meant to surface concepts that can be sustained and scaled because partners have ongoing strategic reasons to continue after USAID funding ends.
4) Who can apply for PACE 3.0?
Eligibility is broad but limited to legally recognized organizations. Eligible applicants can include U.S. and non-U.S. private businesses, business and trade associations, foundations, U.S. and non-U.S. NGOs (including faith-based organizations), international organizations, U.S. and non-U.S. colleges and universities, civic groups, and regional organizations, among others.
5) Can individuals apply?
No. The APS limits eligibility to legally recognized organizations, and individuals cannot apply.
6) Are both U.S. and non-U.S. organizations eligible?
Yes. USAID states that eligible applicants can include both U.S. and non-U.S. organizations, including private businesses, NGOs, and colleges and universities, subject to the restrictions described in the APS (for example, certain restrictions affecting non-U.S. universities in ineligible countries).
7) Can for-profit companies participate?
Yes. PACE 3.0 invites participation from private companies and other market actors, including financial institutions, entrepreneurs, investors, and philanthropies. For-profit organizations can participate and may be able to serve as applicants in some cases, but they should understand how USAID assistance rules treat profit and fees.
8) Can an NGO or university be the prime applicant?
Yes. The APS encourages implementing partners and other non-private entities (such as NGOs and universities) to team up with private-sector partners. In practice, an NGO or university could be the prime applicant, but the proposal is expected to be grounded in real private-sector engagement and incentives rather than relying only on donor funding.
9) What types of organizations does USAID want involved in partnerships?
USAID invites participation from private businesses, financial institutions, chambers of commerce, industry and trade associations, private foundations, entrepreneurs, investors, and philanthropies, along with other private-sector organizations. The APS also encourages partnerships that include NGOs, universities, and other organizations working alongside private-sector partners.
10) What selection preferences does USAID emphasize?
A major selection preference is given to alliances that demonstrate a genuine long-term commitment to the target region and a recognized business interest in the concept being proposed. USAID signals a strong preference for partnerships where the private-sector partner has a reason to remain engaged after the grant ends, supporting sustainability and scale.
11) What does "shared value" mean in the context of this APS?
In this APS, "shared value" refers to a partnership concept where USAID and the private-sector partner(s) both benefit from results. The alliance should produce development outcomes while also advancing legitimate partner interests, such as expanding markets, strengthening supply chains, reaching new customers, de-risking investment, or developing a workforce.
12) Is PACE 3.0 intended to fund one-time philanthropic or charity projects?
No. USAID explicitly seeks business-relevant, collaboration-driven concepts rather than one-off charity projects. Proposals are expected to reflect real private-sector incentives and a credible path to sustained engagement.
13) Are public and private universities eligible to apply?
Yes. Public and private universities are generally treated like NGOs under U.S. government rules and are eligible, according to the APS summary provided.
14) Are there restrictions affecting non-U.S. universities?
Yes. Non-U.S. universities located in countries that are ineligible for U.S. foreign assistance under the Foreign Assistance Act (FAA) or related appropriations restrictions are not eligible.
15) Can USAID grant funding include profit or fee for the recipient?
No. Under U.S. assistance regulations (referencing 22 CFR 200.400 and related sections), USAID prohibits paying fee or profit to the prime recipient under assistance instruments, and this prohibition can also apply to sub-recipients when they meet the definition of a recipient.
16) Does the prohibition on profit also apply to sub-recipients?
It can. The APS notes that the prohibition on paying fee or profit can apply to sub-recipients when they meet the definition of a recipient under the relevant assistance rules.
17) Can a for-profit still earn profit in a PACE 3.0 alliance?
Possibly, depending on the relationship structure. The APS indicates that if a for-profit is engaged through a procurement-style buyer-seller subcontract for goods or services (a contractor relationship rather than a recipient relationship), then profit is allowed on that contract.
18) Can "forgone profit" be counted as cost-share or leverage?
No. USAID notes that "forgone profit" cannot be counted as cost-share or leverage.
19) Can USAID grant funds be used to build local organizational capacity?
Yes. The APS notes that grant funds may be used to build the capacity of a local organization (for-profit or non-profit) if doing so supports the alliance objectives and development results.
20) What is the funding instrument type for this opportunity?
The opportunity is listed as discretionary and uses an "Other" funding instrument type.
21) What is the activity category for this opportunity?
The activity category is listed as "Other" under CFDA 98.001, based on the opportunity information provided.
22) What is the funding opportunity number?
The funding opportunity number shown is "APS OAA 16 000001 ADDENDUM PACE."
23) What is the award ceiling (maximum amount) listed?
The listed award ceiling is $2,000,000.
24) How many awards does USAID expect to make?
The provided excerpt does not specify the number of expected awards.
25) What dates are shown for posting and closing?
The posting/creation date shown is April 26, 2017, and the original closing date shown is July 31, 2017.
26) What makes a concept a strong fit for PACE 3.0, based on the APS summary?
Strong-fit concepts generally include: (1) a clearly defined development problem, (2) a credible and meaningful role for private-sector capabilities, (3) a compelling partnership rationale with aligned incentives, (4) credible partner commitments, and (5) a path to sustainability because private-sector partners have a durable strategic interest in continuing the work after the award ends.
27) What kinds of private-sector capabilities does USAID specifically point to?
USAID points to capabilities such as capital, technology, distribution, expertise, supply chains, and investment as examples of how the private sector can contribute to alliance concepts.
28) Why does USAID emphasize long-term private-sector commitment?
USAID emphasizes long-term commitment because it increases the likelihood that the work will continue after the grant ends, improving sustainability and the potential for scale. Examples in the APS summary include private-sector motivations like market expansion, supply chain strengthening, customer growth, investment de-risking, or workforce development.
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