2. Sol_72065621R00003 – USAID Transform WASH FINAL (2).pdf

Issuance Date: August 10, 2021 Closing Date/Time for Questions: August 24, 2021/4:00 PM (Maputo time) Closing Date/Time for Past Performance Information: September 13, 2021/4:00 PM (Maputo time) Closing Date/Time for Proposals: October 11, 2021/4:00 PM (Maputo time)

Subject: Request for Proposals (RFP) No. Sol_72065621R00003 – USAID Transform

WASH

Dear Offerors

The United States Government, represented by the United States Agency for International Development (USAID) Mission in Mozambique is seeking proposals from qualified organizations interested in providing services under the USAID Transform WASH activity as described in the attached solicitation.

This procurement will be conducted under a full and open competition in accordance with FAR Part 15. The Geographic Code for this procurement is 935 and the North American Industry Classification (NAICS) code is 541990.

USAID anticipates awarding one Cost Plus Fixed Fee (CPFF) term type contract as a result of this solicitation. The estimated cost range for this procurement is between $15 million and $19 Million for the implementation of this activity for a total estimated period of 5 years with an option year, subject to availability of funds. Offerors must propose costs that are realistic and reasonable corresponding with their technical approach.

USAID encourages participation to the maximum extent possible of small business concerns, small disadvantaged business concerns and women-owned small business concerns in this activity as the prime contractor or as subcontractors in accordance with Part 19 of the FAR.

This RFP and any amendments to this solicitation will be issued and posted on the https://sam.gov website. Further, it is the Offeror’s responsibility to check the website periodically for official updates and amendments to the solicitation. It is also the responsibility of the recipient of this solicitation document to ensure that it has been received from the internet in its entirety and USAID bears no responsibility for data errors resulting from transmission or conversion processes.

Offerors are encouraged to read the entire solicitation, which includes all pertinent contract requirements, and the conditions and instructions required for submitting a proposal.

Pursuant to Block 12 of Standard Form 33 of this RFP, USAID requires that offers stay valid for 210 days from the closing date of this RFP.

https://sam.gov/

RFP # SOL-72065621R00003

USAID TRANSFORM WASH

The primary point of contact for this RFP is Mr. Jean-Jacques Badiane. Any questions related to this RFP must be submitted by email to Tania Conde at tconde@usaid.gov and Jean- Jacques Badiane at jbadiane@usaid.gov by the due date and time specified at the top of this cover letter. No questions will be accepted after this date. Each email must contain a subject line, which clearly indicates the name of the offeror and the solicitation number.

Past Performance Information must be submitted electronically to Tania Conde at tconde@usaid.gov and Jean-Jacques Badiane at jbadiane@usaid.gov by the due date and time specified at the top of this cover letter and in accordance with instructions outlined in Section L of this solicitation.

Proposals in response to this RFP are due by electronic mail to Mr. Jean-Jacques Badiane at jbadiane@usaid.gov with a copy to Tania Conde at tconde@usaid.gov. Only electronic submissions will be accepted. Offerors are responsible for ensuring proposals are received by USAID by the due date and time as specified at the top of this cover letter. Failure to comply with the submission date and time will deem any submission unacceptable and it will not be reviewed or evaluated.

Sections B through I of the solicitation will become the substantive part of the anticipated contract with blanks to be completed by the Contracting Officer upon award. Proposals must be signed by an official authorized to bind the Offeror’s organization.

Please pay careful attention to, and complete in full, RFP section K–Representations, Certifications, and Statements of Offerors.

Please refer to Section L of the RFP for information regarding proposal requirements. Section L of the RFP sets forth all instructions for the preparation and submission of required proposal contents. Section M states the criteria by which proposals will be evaluated. Oral explanations or instructions given before award of the contract will not be binding.

The Government reserves the right to award a contract without discussions or the submittal of the final proposal revision, based upon evaluation of the Offeror’s submitted technical and cost information. Accordingly, the Offeror’s initial offer should contain its best terms for both cost and technical proposal.

This RFP in no way obligates USAID to award a contract nor does it commit USAID to pay any cost incurred in the preparation and submission of a proposal. Award of a Contract under this RFP is subject to availability of funds and other internal USAID approvals.

Sincerely, Jean-Jacques Badiane Contracting Officer mailto:tconde@usaid.gov mailto:jbadiane@usaid.gov mailto:tconde@usaid.gov mailto:jbadiane@usaid.gov mailto:jbadiane@usaid.gov mailto:tconde@usaid.gov

TABLE OF CONTENTS

PART I – THE SCHEDULE 2

B - SUPPLIES OR SERVICES/PRICES 2

B.1. PURPOSE 2

B.2. CONTRACT TYPE AND SERVICES 2

B.3. ESTIMATED COST AND FIXED FEE AND OBLIGATED AMOUNT 2

B.4. APPROVED BUDGET 2

B.5. INDIRECT COSTS 3

B.6. COST REIMBURSABLE 4

B.7. PAYMENT OF FIXED FEE 4

C – SCOPE OF WORK 5

C.1. INTRODUCTION 5

C.2. BACKGROUND 5

C.3. PROBLEM ANALYSIS AND THEORY OF CHANGE 6

C.4. OBJECTIVES 9

C.5. SCOPE OF WORK 10

C.5.1. GUIDING PRINCIPLES 19

D – PACKAGING AND MARKING 23

D.1 AIDAR 752.7009 MARKING. (JAN 1993) 23

D.2 BRANDING AND MARKING POLICY 23

D.3 BRANDING STRATEGY 23

D.4 MARKING 25

E – INSPECTION AND ACCEPTANCE 26

E.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY

REFERENCE 26

E.2 INSPECTION AND ACCEPTANCE/RESPONSIBLE OFFICIAL 26

E.3 MONITORING AND EVALUATION 26

F – DELIVERIES OR PERFORMANCE 28

F.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY

REFERENCE 28

F.2 PERIOD OF PERFORMANCE 28

F.3 PLACE OF PERFORMANCE 28

F.4 KEY PERSONNEL 28

F.5 REPORTS AND DELIVERABLES 31

F.6 AUTHORIZED WORK WEEK 46

F.7 AIDAR 752.7005 SUBMISSION REQUIREMENTS FOR DEVELOPMENT

EXPERIENCE DOCUMENTS (SEPTEMBER 2013) 46

F.8 AIDAR 752.229-71 REPORTING OF FOREIGN TAXES (JULY 2007) 48

F.9 AIDAR 752.242-70 PERIODIC PROGRESS REPORTS (OCT 2007) 49

G – CONTRACT ADMINISTRATION DATA 50

G.1 ADMINISTRATIVE CONTRACTING OFFICE 50

G.2 CONTRACTING OFFICER'S AUTHORITY 50

G.3 POINTS OF CONTACT 50

G.4 CONTRACTING OFFICER’S REPRESENTATIVE (COR) 50

G.5 TECHNICAL DIRECTION/RELATIONSHIP WITH USAID 51

G.6 PAYMENT METHOD AND INVOICES 52

G.7 ACCOUNTING AND APPROPRIATION DATA 53

G.8 CONTRACTOR’S PRIMARY POINT OF CONTACT 53

G.9 CONTRACTOR'S PAYMENT ADDRESS 53

G.10 752.7003 DOCUMENTATION FOR PAYMENT. (NOV 1998) 53

H – SPECIAL CONTRACT REQUIREMENTS 56

H.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY

REFERENCE 56

H.2 ADDITIONAL REQUIREMENTS FOR PERSONNEL COMPENSATION 56

H.3 AUTHORIZED GEOGRAPHIC CODE 57

H.4 ELECTRONIC PAYMENTS SYSTEM 57

H.5 CONSENT TO SUBCONTRACTS (DECEMBER 2016) 58

H.6 RIGHT TO PROCURE FROM OTHER SOURCES (AUGUST 2016) 58

H.7 MAXIMIZING USE OF LOCAL ENTITIES (AUGUST 2016) 58

H.8 ADS 302.3.5.17 LIMITATION ON SUBCONTRACTING TO NON-LOCAL

ENTITIES (JULY 2014) 59

H.9 ADS 302.3.5.21 SUBMISSION OF DATASETS TO THE DEVELOPMENT

DATA LIBRARY (DDL) (OCTOBER 2014) 60

H.10 SEXUAL MISCONDUCT (DECEMBER 2020) 61

H.11 ENVIRONMENTAL COMPLIANCE 62

PART II – CONTRACT CLAUSES 63

I – CONTRACT CLAUSES 63

I.1 52.252-2 CLAUSES INCORPORATED BY REFERENCE (FEB 1998) 63

I.2 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY

REFERENCE 63

I.3 AIDAR 48 CFR CHAPTER 7 67

I.4 FAR 52.209-9 UPDATES OF PUBLICLY AVAILABLE INFORMATION

REGARDING RESPONSIBILITY MATTERS (OCT 2018) 68

I.5 FAR 52.217-8 OPTION TO EXTEND SERVICES (NOV 1999) 69

I.6 AIDAR 752.202-1 DEFINITIONS (JAN 1990) 70

I.7 USAID DEFINITIONS CLAUSE – SUPPLEMENT FOR USAID

CONTRACTS INVOLVING PERFORMANCE OVERSEAS (DEC 1986) 70

I.8 AIDAR 752.204-2 SECURITY REQUIREMENTS (FEB 1999) 71

I.9 AIDAR 752.222-70 USAID DISABILITY POLICY – ACQUISITION (DEC

2004) 71

I.10 AIDAR 752.211-70 LANGUAGE AND MEASUREMENT (JUN 1992) 72

I.11 AIDAR 752.219-8 UTILIZATION OF SMALL BUSINESS CONCERNS AND

SMALL DISADVANTAGED BUSINESS CONCERNS (MAR 2015) 72

I.12 AIDAR 752.225-9 BUY AMERICAN ACT – TRADE AGREEMENTS ACT –

BALANCE OF PAYMENTS PROGRAM 72

I.13 AIDAR 752.225-70 SOURCE AND NATIONALITY REQUIREMENTS (FEB

2012) 73

I.14 AIDAR 752.228-7 INSURANCE – LIABILITY TO THIRD PERSONS (JUL

1997) 73

I.15 AIDAR 752.228-70 MEDICAL EVACUATION (MEDEVAC) SERVICES

(JUL 2007) 74

I.16 AIDAR 752.229-70 FEDERAL, STATE, AND LOCAL TAXES 74

I.17 AIDAR 752.245-70 GOVERNMENT PROPERTY – USAID REPORTING

REQUIREMENTS. (OCT 2017) 75

I.18 AIDAR 752.245-71 TITLE AND CARE OF PROPERTY (APR 1984) 77

PART III - LIST OF DOCUMENTS, EXHIBITS AND OTHER ATTACH. 78

J - ATTMT - ADDITIONAL ATTACHMENTS 78

J.1 NOTICE LISTING SOLICITATION PROVISIONS INCORPORATED BY

REFERENCE 78

PART IV – REPRESENTATIONS & INSTRUCTIONS 81

K - REPRESENTATIONS, CERTIFICATIONS, AND OTHER STATEMENTS OF

BIDDERS 81

K.1 NOTICE LISTING SOLICITATION PROVISIONS INCORPORATED BY

REFERENCE 81

K.2 52.204-8 ANNUAL REPRESENTATIONS AND CERTIFICATIONS (MAR

2020) 81

K.3 FAR 52.204-24 REPRESENTATION REGARDING CERTAIN

TELECOMMUNICATIONS AND VIDEO SURVEILLANCE SERVICES OR

EQUIPMENT (OCT 2020) 85

K.4 FAR 52.204-26 COVERED TELECOMMUNICATIONS EQUIPMENT OR

SERVICES-REPRESENTATION (OCT 2020) 88

L – INSTRUCTIONS, CONDITIONS, AND NOTICES TO BIDDERS 89

L.1 NOTICE LISTING SOLICITATION PROVISIONS INCORPORATED BY

REFERENCE 89

L.2 FAR 52.216-1 TYPE OF CONTRACT (APR 1984) 89

L.3 52.233-2 SERVICE OF PROTEST. (SEP 2006) 90

L.4 GENERAL INSTRUCTIONS FOR SUBMISSION OF PROPOSALS 90

L.5 PROPOSAL PREPARATION AND SUBMISSION INSTRUCTIONS 92

L.6 TECHNICAL PROPOSAL (VOLUME I) 93

L.7 COST PROPOSAL (VOLUME II) 97

L.8 SMALL BUSINESS SUBCONTRACTING PLAN INSTRUCTIONS 105

L.9 BRANDING IMPLEMENTATION AND MARKING PLAN INSTRUCTIONS

M – EVALUATION FACTORS FOR AWARD 107

M.1. NOTICE LISTING SOLICITATION PROVISIONS INCORPORATED BY

REFERENCE 107

M.2. GENERAL INFORMATION 107

M.3. TECHNICAL EVALUATION FACTORS 108

M.4. COST/PRICE EVALUATION 110

M.5. DETERMINATION OF THE COMPETITIVE RANGE 111

M.6. SOURCE SELECTION 111

SOLICITATION, OFFER AND AWARD 1. THIS CONTRACT IS A RATED ORDER RATING

UNDER DPAS (15 CFR 700)

PAGE OF PAGES

1 111

2. CONTRACT NUMBER

TBD

3. SOLICITATION NUMBER

72065621R00003

4. TYPE OF SOLICITATION

SEALED BID (IFB)

NEGOTIATED (RFP)

5. DATE ISSUED

08-10-2021

6. REQUISITION/PURCHASE NUMBER

REQ-656-21-000020

7. ISSUED BY CODE 656 8. ADDRESS OFFER TO (If other than item 7)

NOTE: In sealed bid solicitations "offer" and "offeror" mean "bid" and "bidder".

SOLICITATION

9. Sealed offers in original and copies for furnishings the supplies or services in the Schedule will be received at the place specified in item 8, or if hand carried, in the depository located in until local time

(Hour) (Date) CAUTION - LATE Submissions, Modifications, and Withdrawals: See Section L, Provision No. 52.214-7 or 52.215-1. All offers are subject to all terms and conditions contained in this solicitation.

10. FOR

INFORMATION

CALL:

A. NAME

Tania Conde

B. TELEPHONE (NO COLLECT CALLS) C. E-MAIL ADDRESS

tconde@usaid.gov AREA CODE NUMBER EXTENSION

11. TABLE OF CONTENTS

(X) SEC. DESCRIPTION PAGE(S) (X) SEC. DESCRIPTION PAGE(S)

PART I - THE SCHEDULE PART II - CONTRACT CLAUSES

X A SOLICITATION/CONTRACT FORM 1

X I CONTRACT CLAUSES 63-77

X B SUPPLIES OR SERVICES AND PRICES/COSTS 2-4 PART III - LIST OF DOCUMENTS, EXHIBITS AND OTHER ATTACH.

X C DESCRIPTION/SPECS./WORK STATEMENT 5-22

X J LIST OF ATTACHMENTS 78-79

X D PACKAGING AND MARKING 23-25 PART IV - REPRESENTATIONS AND INSTRUCTIONS

X E INSPECTION AND ACCEPTANCE 26-27

X K REPRESENTATIONS, CERTIFICATIONS AND OTHER

STATEMENTS OF OFFERORS 81-88

X F DELIVERIES OR PERFORMANCE 28-49

X G CONTRACT ADMINISTRATION DATA 50-53

X L INSTRUCTIONS, CONDITIONS, AND NOTICES TO OFFERORS 89-106

X H SPECIAL CONTRACT REQUIREMENTS 56-62

X M EVALUATION FACTORS FOR AWARD 107-111

OFFER (Must be fully completed by offeror)

NOTE: Item 12 does not apply if the solicitation includes the provisions at 52.214-16, Minimum Bid Acceptance Period.

12. In compliance with the above, the undersigned agrees, if this offer is accepted within 210 calendar days (60 calendar days unless a different period is inserted by the offeror) from the date for receipt of offers specified above, to furnish any or all items upon which prices are offered at the set opposite each item, delivered at the designated point(s), within the time specified in the schedule.

13. DISCOUNT FOR PROMPT PAYMENT

(See Section I, Clause No. 52.232-8)

10 CALENDAR DAYS (%) 20 CALENDAR DAYS (%) 30 CALENDAR DAYS (%) CALENDAR DAYS(%)

14. ACKNOWLEDGMENT OF AMENDMENTS

(The offeror acknowledges receipt of amendments to the SOLICITATION for offerors and related documents numbered and dated):

AMENDMENT NO. DATE AMENDMENT NO. DATE

15A. NAME AND

ADDRESS

OF OFFEROR

CODE FACILITY 16. NAME AND THE TITLE OF PERSON AUTHORIZED TO SIGN

OFFER(Type or print)

15B. TELEPHONE NUMBER 15C. CHECK IF REMITTANCE ADDRESS IS

DIFFERENT FROM ABOVE - ENTER SUCH

ADDRESS IN SCHEDULE.

17. SIGNATURE 18. OFFER DATE

AREA CODE NUMBER EXTENSION

AWARD (To be completed by Government)

19. ACCEPTED AS TO ITEMS NUMBERED 20. AMOUNT 21. ACCOUNTING AND APPROPRIATION

22. AUTHORITY FOR USING OTHER THAN FULL OPEN COMPETITION:

10 U.S.C. 2304 (c) 41 U.S.C. 3304(a) ( )

23. SUBMIT INVOICES TO ADDRESS SHOWN IN ITEM

(4 copies unless otherwise specified)

24. ADMINISTERED BY (If other than Item 7) 25. PAYMENT WILL BE MADE BY CODE

26. NAME OF CONTRACTING OFFICER (Type or print) 27. UNITED STATES OF AMERICA

(Signature of Contracting Officer)

28. AWARD DATE

IMPORTANT - Award will be made on this Form, or on Standard Form 26, or by other authorized official written notice.

AUTHORIZED FOR LOCAL REPRODUCTION

Previous edition is unusable

STANDARD FORM 33 (REV. 6/2014)

Prescribed by GSA - FAR (48 CFR) 53.214 (c)

USAID/Mozambique/OAA JAT Complex, Rua 1231, Nr. 41 Maputo, Mozambique mailto:tconde@usaid.gov

PART I – THE SCHEDULE

B – SUPPLIES OR SERVICES/PRICES

B.1. PURPOSE

The purpose of this contract is to provide services that fall within the Scope of Work (SOW) specified in Section C.

B.2. CONTRACT TYPE AND SERVICES

This is a Cost-Plus-Fixed-Fee (CPFF) term type contract in accordance with FAR 16.306.

For consideration set forth below, the Contractor must perform the components and activities/tasks required in Section C (SCOPE OF WORK) and the additional requirements described in Section F, H and E in accordance with the performance standards specified herein.

B.3. ESTIMATED COST AND FIXED FEE AND OBLIGATED AMOUNT

a) The estimated cost for the performance of the work required hereunder, exclusive of fixed fee is ___TBD_____. The estimated fixed fee is ___TBD_____. The estimated cost plus fixed fee is ___TBD_____.

Cost shall be limited to reasonable, allocable, and allowable costs determined in accordance with Federal Acquisition Regulation (FAR) 52.216-7.

b) Within the estimated cost-plus fixed fee (if any) specified in paragraph (a) above, the amount currently obligated and available for reimbursement of allowable costs incurred by the Contractor (and payment of fee, if any) for performance hereunder is __TBD_____. The Contractor must not exceed the aforesaid obligated amount in accordance with the Limitation of funds Clause, FAR 52.232.22.

c) Funds obligated hereunder are anticipated to be sufficient through ___TBD____.

B.4. APPROVED BUDGET

a) The contract budget found herein is based on the contractor’s original proposal and/or final proposal revision, which was accepted by USAID through award of this contract.

b) Without the prior written approval of the Contracting Officer, the Contractor may not exceed the total estimated costs set forth in the budget hereunder or the total obligated amount, whichever is less.

c) The following illustrative budget sets forth the estimates for reimbursement of dollar costs for individual line items of cost, and the fixed fee.

Description Year 1 Year 2 Year 3 Year 4 Year 5 Total All

Years

Option Year

Total Direct

Total Indirect Costs

Grants

Fixed Fee

TOTAL

B.5. INDIRECT COSTS

For the Prime Contractor:

Pending the establishment of a revised provisional or final indirect cost rates, allowable indirect costs shall be reimbursed on the basis of the following negotiated provisional or predetermined rates and the appropriate bases:

Description Rate

Base 1/ 2/

Type 1/ 2/

Period 1/ 2/

1/Base of Application

Type of Rate: Provisional

Period:

2/Base of Application:

3/Base of Application:

For Each of the Major Subcontractor (s)*

Description Rate

Base 1/ 2/

Type 1/ 2/

Period 1/ 2/

1/Base of Application:

Type of Rate:

Period:

2/Base of Application:

Type of Rate:

Period:

3/Base of Application:

Type of Rate:

*“Major Subcontractors” are those subcontractors whose proposed cost exceeds 10% of the Offeror’s proposed total cost. USAID may request to review any proposed subcontractors below the 10% threshold. As applicable, any request to review proposed subcontractors below the 10% threshold will be communicated to the Offeror.

Note 1: Contractors may recover applicable indirect costs (i.e., overhead, G&A, etc.) if it is part of the contractor's usual accounting procedures, consistent with FAR Part 31, and Negotiated Indirect Cost Rate Agreement (NICRA).

B.6. COST REIMBURSABLE

The U.S. dollar costs allowable will be limited to reasonable, allocable and necessary costs determined in accordance with FAR 31 (Contract Cost Principles), 2 CFR 200, FAR 52.216-7, (Allowable Cost and Payment), FAR 52.216-8 (Fixed Fee) if applicable, and AIDAR 752.7003 (Documentation for Payment).

B.7. PAYMENT OF FIXED FEE

Payment of fee shall be in accordance with FAR 52.216-8. The Contractor shall be paid fees based on the completion of expected results stated in the Statement of Work (SOW).

(END OF SECTION B)

C – SCOPE OF WORK

C.1. INTRODUCTION

Through this Solicitation, the United States Agency for International Development (USAID) intends to identify a uniquely qualified Contractor to implement a five-year activity, to develop and manage construction contracts and consulting activities in water, sanitation, and hygiene (WASH), supporting the Government of the Republic of Mozambique (GRM) in achieving the Sustainable Development Goals, and promoting WASH sector growth. This activity is in line with the goals outlined in the USAID Country Development Cooperation Strategy (CDCS), in particular development objective number 4, “health status of target populations improved”, as well as with the Mozambique WASH Project Appraisal Document (M-WASH PAD), of “improved well-being of communities, especially women and girls”.

This activity will be titled USAID Transform Water, Sanitation, and Hygiene (USAID Transform WASH) (though subject to change), and through it, USAID/Mozambique intends to impact particularly women and girls, in selected small towns, rural growth centers and peri-urban areas, primarily in Cabo Delgado, Nampula and Zambezia provinces, but may also expand to other regions considered to have a strategic impact in the context of WASH needs.

In light of the current COVID-19 pandemic, it is important to highlight the essential role of safe WASH services in preventing disease and protecting human health during infectious disease outbreaks. Cost-effective strategies for ensuring some degree of pandemic preparedness and mitigation include investing in basic local services infrastructure, good management practices, and healthy WASH behaviors that will help prevent outbreaks and transmission in households and within communities.

C.2. BACKGROUND

Over the past decade, Mozambique’s economy has expanded at a rapid rate, as evidenced by its gross domestic product (GDP) growing between 5 and 7 percent per year.

However, economic growth has not resulted in significant improvements to health, gender and poverty indicators. With a population of around 28 million people, Mozambique ranks 180th out of 189 countries on the United Nations Development Program 2018 Human Development Index (HDI). Almost half of the country’s population still lives in poverty, with the highest concentration in Nampula and Zambezia provinces, where almost half of the 11.2 million poor live. Mozambique has one of the highest under-five mortality rates in the world (71 per 1,000 live births), 16 percent of which can be attributed to inadequate water and sanitation and poor hygiene practices1.

Sixty percent of the country’s population lives in low-lying coastal areas, vulnerable to floods and associated water borne diseases. According to UNICEF and USAID, 43 percent of children under 5 years of age are stunted, but regional variations persist, with

1 UNICEF (2020) Monitoring the situation of children and women.

the highest rates of stunting in Nampula (55 percent) and Cabo Delgado (52 percent) provinces, and the lowest rates in Maputo Province and Maputo City (23 percent each)2.

In 2019, USAID designated eight new countries, including Mozambique, as high priority WASH countries for 2020, pursuant to requirements by the Senator Paul Simon, Water for the World Act of 2014 and guided by the U.S. Global Water Strategy3 issued in November 2017. In response to USAID/Mozambique’s designation as a high priority WASH country, a Country Priority Plan has been developed, and the present statement of work outlines the activities to be carried out by the Mission, particularly in the context of increasing water supply services access, during the next five years.

C.3. PROBLEM ANALYSIS AND THEORY OF CHANGE

a. Problem Analysis

From 1990 to 2015, the population of Mozambique more than doubled, from 13.6 million to 27.1 million (due to high levels of fertility rate, caused by early first pregnancies and the low use of contraceptive methods4), while the number of people living in urban areas tripled. Water and sanitation service provision has not been able to keep up with the growing population in which the rich and richest segments of the population, who are primarily urban dwellers, have greatest access to basic water services while the poor, who make up the majority of the population, do not. National water coverage for the wealthiest population is above 80 percent, but below 30 percent for the poorest inhabitants. In terms of basic sanitation access, the inequity is even greater, with over 40 percent of the richest population segment having access as compared to only 8-10 percent for the poorest members of the population. The increased demand for water and sanitation services in cities and small towns has also impacted the hours of service that can be provided due to limited water supply. The increased demand for water disproportionately impacts women and girls, who are generally responsible for carrying water.

The Joint Monitoring Program (JMP) estimates that in 2019, only 56 percent of the Mozambican population had access to basic water services, with 84 percent of urban households having access to at least basic water service as compared to only 40 percent of rural households. For sanitation, while 29 percent of the population had access to basic sanitation facilities, rates of open defecation were just as high, at 27 percent. In small towns, which have a total population of about 3.8 million people (around 15 percent of the total Mozambican population), little investment for water and sanitation has been provided, despite the trend of economic growth. The water services coverage rate in small towns is at around 20 percent, 14 percent with hand pumps and 6 percent piped water, often neither functioning. Considering this, Mozambique ranks 12th out of 193 countries (with 1 indicating highest need) on the USAID WASH Needs Index5.

2 USAID Mozambique Nutrition Profile (2018).

3USAID: https://www.usaid.gov/what-we-do/water-and-sanitation/us-global-water-strategy 4 The World Bank: https://worldpopulationreview.com/countries/mozambique-population 5 USAID 2020 Needs Index Rank.

USAID highlights the following as main challenges constraining the sector’s growth:

▪ Low access and sustainability of WASH service delivery. In the 130 GRM prioritized small towns/secondary cities in Mozambique, around 15 percent of the population has access to a piped water supply. Where the GRM has rehabilitated the infrastructure and delegated the management to the private sector, access has increased to almost 50 percent. Similarly, the GRM has begun investing in piped water systems in rural growth centers and delegated their management to local private operators. However, given the population growth in these towns and historic underinvestment in these areas, more systems are in need of rehabilitation and expansion. Even when they are under private sector management, most of these systems are still in need of expansion and many technical, operational, and financial challenges remain; there is a need to develop and/or scale up sustainable business models and services management to improve access and increase sustainability, particularly in small towns and peri-urban areas.

▪ Weak governance and institutional capacities. The Ministry of Public Works, Housing and Water Resources (MOPHRH), through the National Directorate for Water Supply and Sanitation (DNAAS), and through the National Directorate for Water Resources Management (DNGRH), has overall responsibility for water services management, and for water resource management, respectively. Policies and institutional arrangements exist for the water sector, but implementation remains weak. The evolving and still uncertain legal and regulatory framework weakens transparency and predictability of market signals from government to private investors—individuals and companies—in the water sector, which increases investment and business risks. In the sanitation sector, there is a lack of clear policies and strategies and insufficient political will to strengthen weak service delivery institutions.

▪ Sector financing gaps. The GRM estimates that approximately $4.2 billion in WASH sector financing (75 percent water and 25 percent sanitation) is needed to achieve universal access by 2030. Currently the total funding deficit is estimated at $3.7 billion. The GRM plans to invest around $50 million in water and water resource management in 2020 to meet the targets set in the GRM Five-Year Plan 2020-2024, however, it is unlikely that this objective will be achieved due to the added challenges experienced in 2020, such as the response to the COVID-19 epidemic. At these rates, the annual investment needs for the sector will reach less than a quarter of the goal. In the last seven years, on average about 80 percent of the funding for the WASH sector came from external resources (grants and concessional loans). The GRM has delegated the management of some of its water services to the private sector, but this sector needs access to financing.

▪ Low adoption of key WASH behaviors. There is limited data on WASH behaviors in Mozambique, and the few existing studies indicate that sanitation and hygiene behaviors are not ideal. For example, in 2015, only 12 percent of the population had soap and water available in their residences, with only eight percent of households in rural areas having soap and water on site.6 Nationally, 27 percent of the population practices open defecation; and among those, 83 percent reported unsafe disposal of child feces.7 In addition, insufficient access to water and sanitation facilities negatively impacts women and girls’ abilities to manage their periods with safety and dignity. Disaster relief and recovery programs find that women and girls in Mozambique lack most if not all of the conditions for adequate menstruation management even under normal circumstances, much less in post-disaster settings.8

▪ Weak implementation of gender equality and women and girl’s empowerment-related policies: Gender equality in Mozambique is also poor. In 2018, the country ranked 142 out of 162 countries on the UNDP Gender Inequality Index9, with a score of 0.901 on the Gender Development Index (a ratio of the female to male Human Development Index), placing it in the next to lowest category of gender equality (UNDP, 2018). According to the Mozambique Gender Assessment for CDCS (2019)10, “traditional gender norms play out in households and at the community level that position men as the head of the household and institute gendered hierarchies for who can speak in decision-making. Gendered social norms – particularly those that guide household decision making – heavily influence daily WASH-related interactions and behaviors.

Women are typically the sole parent responsible for most household responsibilities, including water collection and childcare” (USAID/Mozambique, 2019).

b. Theory of Change

Mozambique continues to lag behind in access to safe water and sanitation services due to weak governance and institutional capacity, insufficient public sector investments, inadequate operation and maintenance of water systems, poor hygiene practices and gender inequality. The Transform WASH activity's main objective is to achieve "Increased use and sustainable management of safe water and sanitation services in small towns, rural growth-centers and peri-urban areas." Achievement of this objective will contribute to the overall Mission’s M-WASH PAD goal of improving the well-being of target communities, especially among women and girls. To achieve this objective, the Activity will strengthen WASH sector governance through participatory dialogue with

6 WHO/UNICEF JMP 2015. https://washdata.org/data 7 Child Feces Disposal in Mozambique. (2014). UNICEF, Water and Sanitation Program/World Bank.

8 Haneef, C., & Tembe, M. (2019). CARE Rapid Gender Analysis: Cyclone Idai Response Sofala Province, Mozambique. CARE.

9 http://hdr.undp.org/sites/all/themes/hdr_theme/country-notes/MOZ.pdf 10 https://drive.google.com/file/d/1y0sL97AqaiIrFXLjpbFdrc2Rao7Zh8AE/view?ts=5fbd3752 https://washdata.org/data https://washdata.org/data http://hdr.undp.org/sites/all/themes/hdr_theme/country-notes/MOZ.pdf https://drive.google.com/file/d/1y0sL97AqaiIrFXLjpbFdrc2Rao7Zh8AE/view?ts=5fbd3752

GRM counterparts coupled with a focus on capacity building to strengthen local systems, expand availability of water and sanitation services by catalyzing domestic private sector resources to complement public sector investments, and accelerate adoption of key WASH behaviors that not only lead to improved health outcomes, but also address sustainability by ensuring that investments in physical infrastructure are used and maintained. If USAID Mozambique strengthens WASH sector capacity to make and implement policy, expands availability of water and sanitation services and products, and increases adoption of key WASH behaviors, then increased and improved use and sustainable management of water and sanitation services, increased demand for WASH services, and improved hygiene behaviors will be achieved.

C.4. OBJECTIVES

USAID/Mozambique aims to support the development of the Mozambican WASH sector, at national and subnational levels, by implementing an activity focused on WASH governance, access to WASH services, behavior change and gender equality in small towns, rural growth centers and peri-urban settlements. The Mission’s M-WASH PAD main goal is to achieve “improved well-being of communities, especially women and girls”, thus the Contractor for the implementation of this Activity will pursue it by reaching the following results:

▪ Policy implementation and institutional capacity to deliver WASH services strengthened.

▪ Availability of water infrastructure and services increased and sustained.

▪ Access to financing and business environments for the private sector in the

WASH service delivery chain improved.

▪ Uptake and maintenance of key water and hygiene behaviors among households and institutions accelerated.

▪ Increased women’s leadership within the sector, and enhanced decision-making power within the household for WASH products and services.

To achieve these goals, and support Mozambique’s journey to self-reliance, the USAID Transform WASH activity will focus on supporting policy reform review, considering the ongoing decentralization process, and implementation, to improve the sector’s institutional enabling environment for the water and sanitation sustainable business development. The activity will also support roles clarification and regulations development, and private sector partnerships for the provision of WASH. It will support the development of new WASH infrastructure and sustainable management approaches within the small towns, rural growth centers and peri-urban areas. The activity will also assist in developing innovative WASH financing mechanisms that contribute to a sustainable business environment, and social behavior change to increase demand for WASH services and improve behaviors.

The activity will build on previous or ongoing USAID’s programs and efforts, such as the Water, Sanitation, and Hygiene Financing (WASH-FIN), and the Supporting the Policy Environment for Economic Development (SPEED+) activities, in coordination with other donor partners. This requires supporting government institutions, private sector associations and civil society in developing both the political will and the technical capacities, while providing the necessary checks and balances to facilitate the evolution of a sound business enabling environment.

The activity objective is aligned with the Mission’s M-WASH PAD main goal, namely, “improved well-being of communities, especially women and girls”, and the Country Development Cooperation Strategy (CDCS), particularly with Development Objective 4, “Health Status Improved”.

C.5. SCOPE OF WORK

USAID Transform WASH consists of four components (activity results), which when integrated, will contribute to each other’s results and to the activity’s overall objective.

The change in component’s results will be measured against baseline data gathered at the start of USAID Transform WASH.

The following Results Framework summarizes the Transform WASH key activities through the four components of the Activity. However, the parties may agree on changes to the activities in order to better respond to the components and objectives of the project.

The Transform WASH components are:

1. Policy implementation and institutional capacity of the Government of Mozambique to deliver WASH services strengthened.

2. Government and private water providers technical, financial, and management capacity strengthened.

3. Access to water and sanitation financing and business environment for the private sector improved.

4. Uptake and maintenance of key water and hygiene behaviors among households and institutions accelerated.

a. Component 1: Policy implementation and institutional capacity of the Government of Mozambique to deliver WASH services strengthened

In the 1990s, the GRM embarked on an institutional reform that culminated in the establishment of a new strategic approach to the water sector, the Delegated Management Framework (DMF), which was grounded on the functional separation principle (management, investment, and regulation functions), as well as on private sector involvement in water services delivery. The DMF consists of a set of legal and institutional regulations and organizations created by the GRM and remains the main institutional framework that guides the water sector in Mozambique.

More recently, in 2018, the Government of Mozambique engaged in a Constitutional amendment, and the newly revised Constitution provides opportunities for advancing decentralization of planning, investment, and management of government services, including water and sanitation services, to provinces and districts. The GRM and development partners have committed to support the decentralization process in the WASH sector.

How the existing policies, regulations and institutional frameworks get translated at the decentralized levels will continue to be a challenge. The Contractor must, therefore, assist the national and sub-national government on policy, regulatory, and institutional reform, in line with the decentralization process, seeking to ensure functional and multi-stakeholder institutional structures with aligned incentives to promote sustainable use and management of WASH services. The Contractor will work closely with USAID’s Local Governance Strengthening program activities to ensure complementarities. The Contractor will review and develop approaches for better coordination among government entities and between them and cooperation partners, to better maximize efforts in the sector.

In addition, the Contractor will support both the central and local GRM entities to improve their performance in key areas such as planning (including investment planning), budget execution, management and monitoring of services.

In Mozambique, the private sector has been playing an increasingly important role in the management and expansion of water and sanitation services, particularly in small towns and peri-urban areas. For more than a decade, the private sector has increasingly been managing the water services in secondary cities/small towns through lease contracts, but has not made much investment in infrastructure, partly due to lack of incentives for private investment in the current legal and institutional context. Considering the GRM's financing deficit, and inability to meet the growing demand for water supply services in the small towns in Mozambique, as well as the gaps in technical and capacity for managing and implementing water supply programs in these areas, the Contractor will be required to explore and propose viable Public-Private Partnership (PPP) structures that leverage additional financing and/or management and technical expertise in small towns and rural growth centers, taking into account the necessary policy, regulatory, and institutional frameworks that need to be strengthened and building on existing and previous support not just by USAID but also other development partners such as UNICEF and the World Bank.

Similarly, in peri-urban areas, the private sector has responded to increased demand in services, but, despite the high coverage, the private providers face challenges in their service delivery as they are not fully monitored and regulated. Additionally, there is still a gap of legal guarantees to encourage the provider’s investment and expansion of services.

Therefore, it is important not only to promote private sector delivery of water services, but also to ensure a favorable business environment that incentivizes them to increase investments in this sector, and an adequate regulatory framework and tools to ensure that the consumers’ and providers' needs are fairly met, within the public service provision standards. Strong institutional frameworks are key to providing the necessary incentives and allowing a favorable environment for both public and private organizations to help deliver, directly or indirectly, better WASH services.

Since 2009, considerable investments have been made towards strengthening SINAS, the National Water and Sanitation Information System that collects information on rural and urban water and sanitation, but effective implementation has been repeatedly delayed. To provide regular data from the dispersed systems and water points around the country, such as the National Program for Rural Water Supply and Sanitation (PRONASAR), SINAS would need to be strengthened and implemented at a decentralized level to collect and centralize data on outputs and outcomes achieved by the program. In particular, the Contractor will support the GRM in the development of staff technical capacity for the management of the SINAS platform, including its continuous optimization, and data collection/dissemination.

Finally, WASH access is also a pathway to realizing gender equality and the empowerment of women and girls and transforming them into a force to actively promote investment in WASH that fulfills their basic needs and realizes improved health outcomes for women and their families. Thus, the Contractor will work with the WASH focused government entities to ensure policy implementation that promotes women’s and girls’ participation in local decision-making processes as well in business development related to WASH services delivery.

Minimum Expected Results

▪ Enhanced government capacity, coordination, and tools for ensuring sustainable

WASH services delivery and water provider’s performance.

▪ Effective sector governance and leadership, particularly on engaging women in pursuit of WASH services development and stakeholders (such as community groups, civil society organizations, and donors’ entities).

▪ Revised policies, strategies and implementation plans for ensuring sustainable WASH services and strengthened implementation of such plans.

▪ Clarified roles and regulations and increased utilization of private partners in the provision of WASH.

▪ Increased institutional capacity of national and sub-national government institutions to plan, budget, monitor, and manage small town, rural, and peri-urban water services.

▪ Enhanced legal and regulatory frameworks to help expand and improve services provided by both the public and private sectors.

▪ Strengthened regulatory entities (including consumer organizations) to help ensure transparency and accountability.

▪ Strengthened national sector monitoring system scaled up in all focus provinces.

▪ Strengthened WASH sector capacity through national training institutions.

Illustrative indicators

▪ HL.8.3 - 3 - Number of water and sanitation sector institutions strengthened to manage water resources or improve water supply and sanitation services as a result of USG assistance.

▪ Custom indicators o Change in citizen perceptions of WASH service delivery among targeted populations.

o New national policy, standards and guidelines for WASH and gender equality.

o Number of WASH PPPs, including private investment mobilization, developed as a result of USG assistance.

o Number of women in WASH decision-making bodies at various levels.

o Change in women's perception of their role or participation in local structures for accessing WASH services.

o Evidence of use of surveys for tracking the sector’s needs and expenditures.

b. Component 2: Government and private water providers technical, financial, and management capacity strengthened

Currently, 56 percent of the Mozambican population has access to basic water services, with urban centers having greater access, at 84 percent with at least basic water service as compared to only 40 percent of rural households. In small towns, the average coverage rate for piped water is below 20 percent (approximately 14 percent served with hand pumps and 6 percent piped water), with a significant proportion of households having no functional piped water supply at all. This is far below the desirable coverage level, and well below the coverage in rural areas (around 40 percent) and large urban centers (over 80 percent). In peri-urban areas, the private sector has been filling in the gap on public service access, particularly piped water, with around 1,800 private water providers, licensed and non-licensed, providing water services to around 50 percent of the peri-urban population, representing 12 percent of the national population.

In small towns11 and rural growth centers, the GRM has engaged the private sector in water service delivery through delegated management under a public-private partnership arrangement and, more recently, by establishing a licensing process for private water providers in peri-urban areas. However, challenges remain in terms of selecting the business and financial models that can be adopted in order to expand or scale up services, particularly to the unserved and underserved.

The Contractor will work closely with the GRM counterparts, national and local authorities, to map the water services needs in small towns, in Cabo Delgado, Nampula, and Zambézia provinces, from which will assist USAID in the definition of selection criteria and the selection of 10 towns for infrastructure improvements within this activity.

However, this geographic priority may also be expanded to other regions, considered to have a strategic impact in the context of WASH actions. To address the identified needs, the Contractor is required to inform and assist USAID in the needs of identification and selection of the small towns to be subject to infrastructure development interventions, through a different USAID Contract. For this infrastructure, the Contractor will propose management approaches to ensure sustainability of services, by prioritizing asset management and developing local maintenance capacity.

The institutional and regulatory frameworks that guide and encourage the private sector to make investments and serve in the sector are not fully developed. Moreover, private sector participation, including investments, remains constrained by the existing PPP models in small towns and rural growth centers and licensing models in urban and peri-urban areas, given limitations in aspects such as contract duration, mechanisms, and compensation and legitimacy to serve.

Small towns water system management approaches are also crucial to ensure their sustainability, so the Contractor is expected to work in collaboration with the GRM counterparts and propose different management models, including a district-wide water utility model to manage and maintain small piped systems and potentially hand pumps under a “delegated management” framework, especially those in small towns and rural growth centers.

The Contractor will work with the relevant government counterparts in the sector to engage and provide support in terms of capacity building for the private operators as well as to develop and test sustainable business and management models for the small towns systems, to improve their efficiency, profitability and ability to expand services. In consultation with relevant government counterparts, the contractor will propose options for incentive structures and respective regulatory instruments (institutional or self-

11 The World Bank Small Towns Water and Sanitation Electronic Conference, January 31, to March 10, 2000 defined small towns as “settlements that are sufficiently large and dense to benefit from the economies of scale offered by piped water supply systems, but too small and dispersed to be efficiently managed by a conventional urban water utility. They require formal management arrangements, a legal basis for ownership and management, and the ability to expand services to meet the growing demand for water. Small towns usually have populations between 5,000 and 50,000 inhabitants but can be larger or smaller.”

regulation) that promote a balance between financial sustainability, efficiency, and equity.

For this component, the Contractor will work with the central and local government entities, as well with other relevant stakeholders in the given intervention areas.

Minimum Expected results

▪ Improved capacity of public and private providers and communities to manage water services.

▪ Increased access to safe drinking water in at least 10 small towns, through the capacity and adoption of management practices for water service delivery.

▪ Improved cost recovery of water service providers in targeted small towns in

Zambezia, Nampula and Cabo Delgado provinces, and others as required.

▪ Increased technical, financial and management capacity of assisted water providers, with a special focus on supporting and fostering more female-led businesses.

▪ Improved community capacity for social mobilization, monitoring services such as system functionality, with a focus on increasing women’s leadership roles within the committees.

▪ Implemented improved management approaches that address WASH needs of the small towns and rural systems.

▪ HL.8.1 -1 - Number of people gaining access to basic drinking water services as a result of USG assistance.

▪ HL.8.1 – 2 - Number of people gaining access to safely managed drinking water services as a result of USG assistance.

▪ HL.8.1 – 3 – Number of people receiving improved service quality from an existing basic drinking or safely managed water service as a result of USG assistance.

▪ Custom indicators:

o Percentage change in operating ratio (revenue divided by operational costs) of water service providers.

o Percentage change in continuity of service (# hours/day).

o Percentage of households spending, on average, less than 30 minutes a day fetching water.

o Percentage of female/male membership, with position and responsibility, in formal and informal institutions responsible for managing water at community, local and/or national levels.

o Number of large- and small-scale water-related industries and enterprises managed/owned by females or males.

c. Component 3: Access to water and sanitation financing and business environment for the private sector improved.

About US $4.2 billion is required to achieve universal water and sanitation access by 2030 in Mozambique. However, in 2019, the water sector spending in Mozambique amounted to an estimated 3.4 percent of total government spending, only about 0.92 percent of GDP, although it represents an increase over the previous two years. About 75 percent of these funds are allocated to urban areas and 25 percent to rural areas. In the last seven years, about 80 percent of the funding for the WASH sector came from external resources. Expanding access to sustainable services will require new sources of finance, including increased public expenditures, greater cost recovery from users, increased efficiency in service provision, better targeting of subsidies, and better mobilization of financing. In addition, although the private sector engagement in WASH service has been promoted, this market segment of private operators is nascent, with a limited level of professionalism for the provision of such a critical public service.

To support…