Discussion Note: Cost Data Collection and Analysis

This Discussion Note describes how USAID operating units can collect and analyze cost data of USAID-funded activities and interventions to improve overall efficiency and effectiveness of USAID investments. This Note provides a general overview for technical staff in USAID Missions, Washington-based offices, and implementing partners who are interested in setting up systems and processes to collect cost data to allow for sector-specific cost analysis. It is also designed to inform leadership on what is required to be able to commission and implement cost analysis studies. Topics included in this Discussion Note include:

• Why measure costs?

• Costing in the USAID Program Cycle

• What is required to enable the routine collection, analysis, and use of cost data?

• What questions can we answer with cost data?

• What is cost measurement?

• When do cost analysis?

• Cost Analysis Methods

• Using and learning from cost analysis results