SOL-438-11-000001.pdf

RFP Issuance Date: February 20, 2011 RFP Closing Date: March 28, 2011 RFP Closing Time: 8 a.m., Manila, Philippines local time Receipt of Questions: March 3, 2010

Subject: Request for Proposals Number SOL-438-11-000001, the Business Plus Initiative

To All Prospective Offerors:

The United States Government, represented by the U.S. Agency for International Development (USAID) Mission to Mongolia, is seeking proposals from qualified organizations interested in providing the services described in the attached solicitation.

This procurement is being conducted through full and open competition, for which the procedures for "contracting by negotiation, trade-off process” method of procurement, as described in Part 15 of the Federal Acquisition Regulation (FAR), will apply.

Proposals will be accepted from Mongolian and non-Mongolian non-governmental organizations (NGOs), private, for-profit and non-profit organizations, including universities, research organizations, professional associations, and relevant special interest associations. Faith-based and community organizations are also eligible for award.

In support of USAID’s interest in expanding the number and sustainability of development partners, USAID encourages proposals from potential new partners.

USAID plans to award a cost-plus-fixed-fee completion type contract. The maximum amount of the contract (costs and fee) is $19.5 million, covering an estimated five year period of performance. However, offerors should not necessarily strive to equal this amount. Cost-effective approaches to achieving the results are encouraged, and lower-cost offers will be rewarded under Section M of this solicitation. Offerors must propose costs that they believe are realistic and reasonable for the work. Cost proposals will be evaluated as part of the best value procedure in determining the contract award.

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

Receipt of this solicitation through the internet must be confirmed by written notification to Procurement Secretary Irene Narag at email address aidmnlorp@usaid.gov. It is the responsibility of the recipient of this solicitation document to ensure that it has been received in its entirety, including subsequent solicitation amendments, if any, and USAID bears no responsibility for data errors resulting from transmission or conversion processes. Issuance of this solicitation and the submittal of a proposal do not constitute a commitment on the part of the U.S. Government nor USAID to make an award, neither does it constitute an obligation for any costs incurred in the preparation and submission of a proposal. Award will be subject to funds availability following the proper completion of required USAID internal processes.

Further, the U.S. Government reserves the right to reject any or all proposals received. To this end, this RFP is being issued and consists of this cover letter and the text of the attached request for proposals (RFP). All offerors are cautioned to carefully review this cover letter and the contents of the RFP.

The details associated with the submission requirements for offerors’ proposals are outlined in Section L of this solicitation. Proposals must be signed by an official who is authorized to bind the organization and are to be submitted to USAID no later than the closing date stated above, to the place designated in RFP, Section L for receipt of proposals. The proposal, and any modifications submitted after the initial proposal, shall be submitted in accordance with the instructions provided in Section L. If the proposal is received after the deadline or if it is incomplete, it may not be accepted or mailto:aidmnlorp@usaid.gov� otherwise considered unless authorized by the contracting officer. Late proposals will be handled in accordance with FAR

15.208. Facsimile submissions are not authorized and will not be accepted as valid.

The preferred method of proposal submission will be electronic. See Section L. of the solicitation for instructions.

Offerors are instructed to pay careful attention to Section K - Representations, Certifications and Acknowledgements of the accompanying Request for Proposals. Offerors are now expected to comply with FAR clause 52.204-7, Central Contractor Registration, and complete the annual representations and certifications electronically via the Online Representations and Certifications Application website at http://orca.bpn.gov.

An interested vendors list is not included in this solicitation. Offerors can register and use the interested vendors list found at the Federal Business Opportunities (FBO.gov) webpage created for this solicitation so that that interested firms and individuals can contact one another for consideration of teaming arrangements and/or small business subcontracting opportunities arising from this solicitation.

You are strongly encouraged to submit any comments or questions concerning this RFP by no later than March 3, 2011.

These should be directed by email to Mr. Michael Rossman, Regional Contracting Officer, at email address mrossman@usaid.gov with copy to Irene Narag at aidmnlorp@usaid.gov.

The required closing date and time for receipt of proposals is USAID/Philippines 8 a.m. Manila local time on March 28, 2010. Point of required receipt is USAID/Philippines, Manila, Republic of the Philippines and not USAID offices in Washington, D.C. or any other location. Offerors should take account of the expected delivery time required by the proposal transmission and are responsible to ensure that proposals are received at USAID by the due date and time specified above.

Oral explanations or instructions given before the award of the contract will not be binding. Furthermore, the U.S.

Government reserves the right to reject any and all offers, if such action is considered to be in the best interest of the U.S.

Government. Award of a contract under this RFP is subject to availability of funds and other internal USAID approvals.

Thank you for your interest in working with USAID/Mongolia.

Sincerely, /s/

Michael P. Rossman Regional Contracting Officer http://orca.bpn.gov/� mailto:mrossman@usaid.gov� mailto:aidmnlorp@usaid.gov�

1. THIS CONTRACT IS A RATED ORDER RATING PAGE OF PAGES

UNDER DPAS (15 CFR 700)

2. CONTRACT NUMBER 3. SOLICITATION NUMBER 4. TYPE OF SOLICITATION 5. DATE ISSUED 6. REQUISITION/PURCHASE NUMBER

SEALED BID (IFB)

NEGOTIATED

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

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

9. Sealed offers in original and _____________________________ copies for furnishing the supplies or services in the Schedule will be received at the place specified in Item 8, or if handcarried, 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.

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

AREA CODE NUMBER EXT.

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

PART I - THE SCHEDULE PART II - CONTRACT CLAUSES

A SOLICITATION/CONTRACT FORM

I CONTRACT CLAUSES

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

C DESCRIPTION/SPECS./WORK STATEMENT J LIST OF ATTACHMENTS

D PACKAGING AND MARKING PART IV - REPRESENTATIONS AND INSTRUCTIONS

E INSPECTION AND ACCEPTANCE

F DELIVERIES OR PERFORMANCE

G CONTRACT ADMINISTRATION DATA L INSTR., CONDS., AND NOTICES TO OFFERORS

H SPECIAL CONTRACT REQUIREMENTS M EVALUATION FACTORS FOR AWARD

K REPRESENTATIONS, CERTIFICATIONS AND OTHER

STATEMENTS OF OFFERORS

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 _60_______ 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 price set opposite each item, delivered at the designated point(s), within the time specified in the schedule.

13. DISCOUNT FOR PROMPT PAYMENT 10 CALENDAR DAYS (%) 20 CALENDAR DAYS (%) 30 CALENDAR DAYS (%) CALENDAR DAYS (%) (See Section I, Clause No. 52-232-8)

14. ACKNOWLEDGEMENT OF AMENDMENTS AMENDMENT NO. DATE AMENDMENT NO. DATE

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

CODE FACILITY 16. NAME AND TITLE OF PERSON AUTHORIZED TO SIGN OFFER 15A. NAME AND

ADDRESS

OF OFFEROR

(Type or print)

15B. TELEPHONE NUMBER 17. SIGNATURE 18. OFFER DATE

AREA CODE NUMBER EXT. 15C. CHECK IF REMITTANCE ADDRESS IS DIFFERENT FROM

ABOVE - ENTER SUCH ADDRESS IN SCHEDULE

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

22. AUTHORITY FOR USING OTHER THAN FULL AND OPEN COMPETITION: 23. SUBMIT INVOICES TO ADDRESS SHOWN IN ITEM (4 copies unless otherwise specified)

10 U.S.C. 2304(a) ( ) 41 U.S.C. 253(c) ( )

24. ADMINISTERED BY (If other than Item 7)

25. PAYMENT WILL BE MADE BY CODE CODE

26. NAME OF CONTRACTING OFFICER (Type or print) 27. UNITED STATES OF AMERICA 28. AWARD DATE

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

(Signature of Contracting Officer)

(REV. 9-97)

10. FOR INFORMATION CALL:

11. TABLE OF CONTENTS

STANDARD FORM 33

SOLICITATION, OFFER AND AWARD

SOLICITATION

OFFER (Must be fully completed by offeror)

AWARD (To be completed by Government)

1 101 N/A See TOC

SOL-438-000001 February 20, 2011 X

Office of Regional Procurement USAID/Philippines 8/F PNB Financial Center, Macapagal Boulevard

Pasay City, Philippines 1308

See Section L

Item 7 March 28, 2011 8 a.m.

Michael Rossman 63 2 552-9921 mrossman@usaid.gov See Attached Table of Contents

$.00

Regional Financial Services Center USAID/Philippines 8/F PNB Financial Center, Macapagal Blvd.

Pasay City, Philippines 1308

TABLE OF CONTENTS

PART I - THE SCHEDULE

SECTION B - SERVICES AND PRICE/COSTS

B.1 PURPOSE

B.2 CONTRACT TYPE AND CONTRACT SERVICES

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

B.4 CONTRACT LINE ITEMS AND CEILINGS

B.5 ESTIMATED COST, FIXED FEE, AND OBLIGATED AMOUNT

B.6 BUDGET

B.7 INDIRECT COSTS (DEC 1997)

B.8 ADVANCE UNDERSTANDING ON CEILING INDIRECT COST RATES AND FINAL REIMBURSEMENT FOR INDIRECT COSTS

B.9 REIMBURSABLE COSTS

SECTION C – STATEMENT OF WORK

C.1 INTRODUCTION

C.2 BACKGROUND

C.2a USAID Program C.2b Mongolia’s Development Priorities

C.3 SCOPE OF WORK

C.4 EXPECTED RESULTS

C.4a Improved Implementation of Business Enabling Policies C.4b Strengthened Private Sector Capacity and Competitiveness C.4c Improved Financial Sector Capacity and Enabling Environment

C.5 DETAILED WORK REQUIREMENTS

C.5a Implementation of Business Enabling Policies C.5b Private Sector Support C.5c Financial Sector Deepening Support C.5d Public Outreach and Performance Monitoring and Evaluation

C.6 PERSONNEL REQUIREMENTS

C.6a Qualifications of Key Personnel

C.7 REFERENCES

SECTION D - PACKAGING AND MARKING

D.1 AIDAR 752.7009 MARKING (JAN 1993)

D.2 BRANDING POLICY AND STRATEGY

SECTION E - INSPECTION AND ACCEPTANCE

E.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE

E.2 INSPECTION AND ACCEPTANCE

SECTION F - DELIVERIES OR PERFORMANCE

F.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE

F.2 PERIOD OF PERFORMANCE

F.3 PLACE OF PERFORMANCE

F.4 PERFORMANCE STANDARDS

F.5 FAR 52.217-8, OPTION TO EXTEND SERVICES (NOV 1999)

F.6 KEY PERSONNEL

F.7 REPORTS

F.7a START-UP AND PRELIMINARY WORK PLAN F.7b WORK PLAN F.7c PERFORMANCE MONITORING PLAN F.7d CONTRACTOR FINANCIAL REPORTS F.7e SPECIAL ASSESSMENTS, SPECIAL REPORTS, AND POLICY ANALYSES

F.7f SHORT-TERM CONSULTANTS REPORTS F.7g FINAL REPORT F.7h CLOSE-OUT PLAN

F.8 CONTENTS OF PERIODIC PROGRESS REPORTS

F.9 REPORTING FORMAT

F.10 LANGUAGE OF REPORTS AND OTHER OUTPUTS

F.11 PROJECT EVALUATION

F.11a MID-TERM EVALUATION F.11b FINAL EVALUATION

F.12 AIDAR 752.7005 SUBMISSION OF DEVELOPMENT EXPERIENCE DOCUMENTATION TO PPC/CDIE/DI (JAN 2004)

SECTION G - CONTRACT ADMINISTRATION DATA

G.1 ADMINISTRATIVE CONTRACTING OFFICE

G.2 CONTRACTING OFFICER’S TECHNICAL REPRESENTATIVE

G.3 TECHNICAL DIRECTIONS/RELATIONSHIP WITH USAID

G.4 AIDAR 752.7003 DOCUMENTATION FOR PAYMENT (NOV 1998)

G.5 PAYING OFFICE

G.6 ACCOUNTING AND APPROPRIATION DATA

SECTION H - SPECIAL CONTRACT REQUIREMENTS

H.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE

H.2 AUTHORIZED GEOGRAPHIC CODE

H.3 LOCAL PROCUREMENT

H.4 LOGISTICAL SUPPORT

H.5 LANGUAGE REQUIREMENTS

H.6 AIDAR 752.7007 PERSONNEL COMPENSATION (JULY 2007)

H.7 ADDITIONAL REQUIREMENTS FOR PERSONNEL COMPENSATION

H.8 EMPLOYMENT OF THIRD COUNTRY NATIONALS (TCNS) AND COOPERATING COUNTRY NATIONALS (CCNS)

H.9 INSURANCE AND SERVICES

H.10 AIDAR 752.228-70 MEDICAL EVACUATION (MEDEVAC) SERVICES (APRIL 2006) (PURSUANT TO CLASS DEVIATION OAA-DEV-2006-1C)

H.11 AIDAR 752.7004 EMERGENCY LOCATOR INFORMATION (JUL 1997)

H.12 GOVERNMENT FURNISHED FACILITIES OR PROPERTY

H.13 AIDAR 752.231-71 SALARY SUPPLEMENTS FOR HG EMPLOYEES (OCT 1998)

H.14 EXECUTIVE ORDER ON TERRORISM FINANCING (FEB 2002)

H.15 USAID DISABILITY POLICY - ACQUISITION (DECEMBER 2004)

H.16 AIDAR 752.7032, INTERNATIONAL TRAVEL APPROVAL AND NOTIFICATION REQUIREMENTS (JAN 1990)

H.17 AIDAR 752.225-70 SOURCE, ORIGIN AND NATIONALITY REQUIREMENTS (FEB 1997)

H.18 AIDAR 752.245-71 TITLE TO AND CARE OF PROPERTY (APR 1984)

H.19 APPROVALS FOR NONEXPENDABLE PROPERTY PURCHASES

H.20 VALUE ADDED TAX (VAT) AND CUSTOMS DUTIES

H.21 REPORTING OF FOREIGN TAXES (MAR 2006)

H.22 FOREIGN GOVERNMENT DELEGATIONS TO INTERNATIONAL CONFERENCES (JAN 2002)

H.23 HOMELAND SECURITY PRESIDENTIAL DIRECTIVE-12 (HSPD-12) (SEPT. 2006)

H.24 AIDAR 752.7101 VOLUNTARY POPULATION PLANNING ACTIVITIES (JUNE 2008)

H.25 SUBCONTRACT CONSENT

H.26 CONFLICTS OF INTEREST

H.27 DISCLOSURE OF INFORMATION

H.28 SOURCE/ORIGIN REQUIREMENTS FOR MOTOR VEHICLES

H.29 CONTRACTOR’S USE OF PROJECT VEHICLES AND LIABILITY INSURANCE REQUIREMENTS FOR PRIVATELY OWNED VEHICLES ... 51

H.30 BUSINESS CLASS TRAVEL

PART II - CONTRACT CLAUSES

SECTION I - CONTRACT CLAUSES

I.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE

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

I.3 FAR 52.227-23 RIGHTS TO PROPOSAL DATA (TECHNICAL) (JUN 1987)

I.4 FAR 52.209-7 INFORMATION REGARDING RESPONSIBILITY MATTERS (APR 2010)

I.5 FAR 52.209-8 UPDATES OF INFORMATION REGARDING RESPONSIBILITY MATTERS (APR 2010)

I.6 FAR 52.203-13 CONTRACTOR CODE OF BUSINESS ETHICS AND CONDUCT (DEC 2008)

I.7 FAR 52.222-50 COMBATING TRAFFICKING IN PERSONS (FEB 2009) ALT. I (AUG 2007)

I.8 FAR 52.244-2 SUBCONTRACTS (JUN 2007)

I.9 AIDAR 752.209-71 ORGANIZATIONAL CONFLICTS OF INTEREST DISCOVERED AFTER AWARD (JUN 1993)

SECTION J - LIST OF ATTACHMENTS

PART IV - REPRESENTATIONS AND INSTRUCTIONS

SECTION K - REPRESENTATIONS, CERTIFICATIONS AND OTHER STATEMENTS OF OFFERORS

K.1 NOTICE LISTING SOLICITATION PROVISIONS INCORPORATED BY REFERENCE

K.2 FAR 52.204-3 TAXPAYER IDENTIFICATION (OCT 1998)

K.3 FAR 52.204-6 DATA UNIVERSAL NUMBERING SYSTEM (DUNS) NUMBER (JUNE 1999)

K.4 FAR 52.204-8 ANNUAL REPRESENTATIONS AND CERTIFICATIONS (FEB 2009)

K.5 AIDAR 752.226-01 DISADVANTAGED ENTERPRISE REPRESENTATION (APR 1991)

K.6 FAR 52.230-1 COST ACCOUNTING STANDARDS NOTICES AND CERTIFICATION (OCT 2008)

K.7 FAR 52.223-13 CERTIFICATION OF TOXIC CHEMICAL RELEASE REPORTING (AUG 2003)

K.8 COMPLIANCE WITH VETERANS EMPLOYMENT REPORTING REQUIREMENTS

K.9 INSURANCE - IMMUNITY FROM TORT LIABILITY

K.10 AGREEMENT ON, OR EXCEPTIONS TO, TERMS AND CONDITIONS

K.11 FAR 52.209-7 INFORMATION REGARDING RESPONSIBILITY MATTERS (APR 2010)

K.12 FAR 52.209-8 UPDATES OF INFORMATION REGARDING RESPONSIBILITY MATTERS (APR 2010)

K.13 SIGNATURE

SECTION L - INSTRUCTIONS, CONDITIONS, AND NOTICES TO OFFERORS

L.1 NOTICE LISTING SOLICITATION PROVISIONS INCORPORATED BY REFERENCE

L.2 FAR 52.215-1 INSTRUCTIONS TO OFFERORS-COMPETITIVE ACQUISITION JAN 2004) ALT I (OCT 1997)

L.3 FAR 52.252-1 SOLICITATION PROVISIONS INCORPORATED BY REFERENCE (FEB 1998)

L.4 FAR 52.216-1 TYPE OF CONTRACT (APR 1984)

L.5 FAR 52.233-2 SERVICE OF PROTEST (SEP 2006)

L.6 QUESTIONS AND CLARIFICATIONS

L.7 GENERAL INSTRUCTIONS TO OFFERORS

L.7a DELIVERY INSTRUCTIONS L.7b PROPOSAL FORMAT AND PRESENTATION

L.8 RESPONSIVENESS TO RFP

L.9 OFFEROR’S RESPONSIBILITIES

L.10 SUBMISSION OF ALTERNATE PROPOSALS

L.11 GOVERNMENT OBLIGATION

L.12 UNNECESSARILY ELABORATE PROPOSALS

L.13 INSTRUCTIONS FOR THE PREPARATION OF THE TECHNICAL PROPOSAL

L.14 INSTRUCTION REGARDING KEY PERSONNEL

L.15 INSTRUCTIONS FOR PREPARATION OF THE BRANDING IMPLEMENTATION AND MARKING PLANS

L.16 INSTRUCTIONS FOR THE PREPARATION OF THE COST PROPOSAL

SECTION M - EVALUATION FACTORS FOR AWARD

M.1 OVERVIEW

M.2 CONTRACT AWARD – BEST VALUE

M.3 TECHNICAL EVALUATION CRITERIA

M.3a. Technical Approach (50 Points) M.3b Qualifications of Proposed Personnel and Management Plan (25 Points) M.3c Institutional Capacity and Methodology (15 points) M.3d Past Performance (10 Points)

M.4 COST EVALUATION CRITERIA

M.5 CONTRACTING WITH SMALL BUSINESS CONCERNS

M.6 CONTRACTING WITH U.S SMALL BUSINESS CONCERNS IN THE MENTOR-PROTÉGÉ PROGRAM

M.7 DETERMINATION OF THE COMPETITIVE RANGE AND CONTRACT AWARD

ATTACHMENTS

ATTACHMENT 1 - IDENTIFICATION OF PRINCIPAL GEOGRAPHIC CODE NUMBERS

ATTACHMENT 2 - USAID FORM 1420-17 - CONTRACTOR BIOGRAPHICAL DATA SHEET

ATTACHMENT 3 – DISCLOSURE OF LOBBYING ACTIVITIES

PART I - THE SCHEDULE

SECTION B - SERVICES AND PRICE/COSTS

B.1 PURPOSE

The purpose of this contract is to provide technical assistance and services as described in detail in Section C, Statement of Work for the implementation of USAID/Mongolia’s Business Plus Initiative (BPI) Project”.

B.2 CONTRACT TYPE AND CONTRACT SERVICES

This is a cost-plus-fixed-fee (CPFF) completion-type contract. For the consideration set forth below, the Contractor shall achieve the performance objectives and deliverables or outputs described in Section C and the additional requirements of Section F and H, in accordance with the performance standards specified herein.

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

(a) For the five year contract period, the estimated cost for the performance of the work required hereunder, exclusive of fixed fee, is TBD. The fixed fee, if any, for the contract period is TBD. The total estimated cost plus fixed fee is TBD.

(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 of the contract period hereunder is TBD. The Contractor shall not exceed the aforesaid obligated amount unless authorized by the Contracting Officer pursuant to the clause of this contract entitled “Limitation of Funds” (FAR 52.232-22). See Section I of this contract.

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

B.4 CONTRACT LINE ITEMS AND CEILINGS

(a) The contract line items below are based on the contractor’s original proposal and/or final proposal revision, which was accepted by USAID through award of this contract, and which is incorporated herein by reference and made a part of this contract.

(b) Without the prior written approval of the contracting officer, the contractor may not exceed the total estimated cost set forth in the budget hereunder or the obligated amount, whichever is less.

B.5 ESTIMATED COST, FIXED FEE, AND OBLIGATED AMOUNT

(a) For the five year contract period, the estimated cost for the performance of the work required hereunder, exclusive of fixed fee, is TBD. The fixed fee, if any, for the contract period is TBD. The total estimated cost plus fixed fee, if any, is TBD.

(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 of the contract period hereunder is TBD. The Contractor shall not exceed the aforesaid obligated amount unless authorized by the Contracting Officer pursuant to the clause of this contract entitled “Limitation of Funds” (FAR 52.232-22). See Section I of this contract.

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

B.6 BUDGET

a. The following itemized budget sets forth the estimates for reimbursement of dollar costs for individual line items of cost, and the fixed fee (if any).

USAID/Mongolia RFP SOL-438-11-000001 Page 7 of 102 pages Business Plus Initiative

Contract Period of Performance Total I. Estimated Cost

1. Salaries and Wages

2. Fringe Benefits

3. Overhead

4. Allowances

5. Travel and Transportation

6. Equipment and Supplies

7. Subcontract(s)

8. Grant Funding $1,000,000

9. Other Direct Costs

10. General and Administrative Costs

Subtotal Contract Estimated Cost II. Fixed Fee III. Total Estimated Contract Cost Plus Fixed Fee

Note 1- Individual subcontractors proposed as part of officer should include the same cost element break-downs in their budget as applicable.

Note 2 - The contractor will provide grant funding to local Mongolian NGOs, PVOs and other organizations with the consent of USAID/Mongolia in support of the objectives of this project. The amount of the grants may vary from year to year and the total value should not exceed $1,000,000 for the life of the project.

B.7 INDIRECT COSTS (DEC 1997)

The contract clause entitled “Allowable Cost and Payment (MAR 2000)”, FAR 52.216-7, specifies that the indirect cost rates shall be established for each of the Contractor’s accounting periods that apply to this contract. Pending establishment of 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 Type Period

1/ 1/ 1/

[To be determined]

B.8 ADVANCE UNDERSTANDING ON CEILING INDIRECT COST RATES AND

FINAL REIMBURSEMENT FOR INDIRECT COSTS

(a) Reimbursement for allowable indirect costs shall be at final negotiated rates but not in excess of the following ceiling rates:

Description Rate Base Type Period 1/ 1/ 1/

[To be determined]

(b) The Contractor shall make no change in its established method of classifying or allocating indirect costs without the prior written approval of the Contracting Officer.

USAID/Mongolia RFP SOL-438-11-000001 Page 8 of 102 pages

(c) The Government shall not be obligated to pay any additional amount on account of indirect costs above the ceiling rates established in the contract.

(d) This understanding shall not change any monetary ceiling, obligation, cost limitation, or obligation established in the contract.

B.9 REIMBURSABLE COSTS

The US dollar costs allowable shall be limited to reasonable, allocable and necessary costs determined in accordance with FAR 31 (Contract Cost Principles), A-21 (Cost Principles for Educational Institutions), A- 122 (Cost Principles for Non-Profit Organizations), FAR 52.216-7 (Allowable Cost and Payment), FAR 52.216-8 (Fixed Fee), if applicable, and AIDAR 752.7003 (Documentation for Payment), in order to be reimbursable under this contract.

[END OF SECTION B]

USAID/Mongolia RFP SOL-438-11-000001 Page 9 of 102 pages

SECTION C – STATEMENT OF WORK

C.1 INTRODUCTION

The Business Plus Initiative (BPI) Project is designed to support an enhanced role for the private sector in Mongolia's economic growth by complementing and supporting the Government of Mongolia’s (GOM) strategy to advance the following objectives:

• Improved implementation of business enabling policies

• Strengthened private sector capacity and competitiveness

• Increased financial sector capacity and enabling environment

The project will promote these objectives by building on the Economic Policy Reform and Competitiveness (EPRC) project and its predecessor, the Economic Policy Support Project (EPSP) as well as the Competitiveness Initiative (TCI), the Gobi Project and the GER Initiative. BPI will contribute directly to the achievement of Strategic Objective One (SO1): Accelerate and Broaden Sustainable Private Sector Led Economic Growth.

As detailed in this document, BPI’s clearly defined components will focus on achieving measurable results. However, it is also designed to have sufficient program flexibility to respond rapidly and effectively to windows of opportunity such as new market or business opportunities, new economic reform opportunities or requirements, as well as unexpected domestic, regional or international economic and business developments. As such the BPI contractor must have a high level of managerial and technical competence in core program areas, while maintaining sufficient flexibility to respond to critical USAID and U.S. Government, GOM, private sector and NGO program assistance needs on an in-time, demand-driven basis.

USAID encourages the contractor to take an innovative approach to implementation of the program activities, bringing to bear international best practices and integrating it with local context and priorities.

The contractor is encouraged to connect with leading innovators in the private sector and academia in Mongolia and beyond, and to access the recently created Development Innovation Ventures Fund -where creative solutions can be funded, piloted and brought to scale, as well as to seek appropriate opportunities to use the project as a catalyst to mobilize the resources of private corporations, foundations, universities, and other non-government organizations interested in working in Mongolia through the Global Development Alliance (GDA) Initiative.

C.2 BACKGROUND

In the last 20 years, Mongolia has made tremendous progress in its transition from a centrally-planned state to a democratic, market economy. The transition has been successful overall with the private sector currently constituting over 70 percent of the nation’s GDP. Despite initial challenges, Mongolia’s economy grew rapidly largely thanks to the rising prices of natural resources. From 2004 to 2008, growth averaged nearly 9 percent per year. Like much of the world, Mongolian experienced a down year in 2009, during which its economy contracted by 1.6 percent, but it is expected to grow by an annual average of 7 percent between 2010 and 2011, indicating that Mongolia’s economy is rebounding strongly.1

Mongolia is a mineral rich country with some of the largest untapped gold, copper, and coking-coal reserves in the world, in addition to a wide range of other mineral resources. Since late 2009, the GOM has finalized an agreement with foreign investors to develop the vast Oyu Tolgoi (OT) copper and gold deposit, and articulated plans to develop the Tavan Tolgoi (TT) coal deposit with a mix of state-run and foreign investor-led development. Total investment to develop Oyu Tolgoi, Tavan Tolgoi, and other

1 World Bank, 2010

USAID/Mongolia RFP SOL-438-11-000001 Page 10 of 102 pages announced minerals developments exceeds $6 billion in the next three years alone. Compared to 2009 GDP of $4.2 billion, this represents a significant financial injection into the economy. Many other developments, ranging from several millions of dollars to a $1 billion iron-ore project, are waiting to be developed depending on the investment environment. Observers speculate that, if these plans materialize, GDP could double by 2015 and quadruple by 2020.

Although Mongolia anticipates unparalleled, mineral-driven economic growth, it is not prepared for either the massive expansion or the speed of transition. Complex economic, governance, environmental, social and capacity issues persist and require urgent attention. The undiversified economy is highly vulnerable to price volatility in natural resources, unemployment remains high, and 35 percent of the population continues to live under the poverty line. A big increase in commodity exports will put upward pressure on the togrog, making other exports less competitive. Mining is a capital-intensive industry and will not contribute significantly to reducing unemployment, and the country’s workforce may prove ill-suited to the jobs created by the sector’s growth. Mongolia’s poor regulatory capacity is a deterrent to retaining world class investors. Corruption, especially rent seeking activities, may also prove to be a long-term problem.

Growing public frustration about how the dividends from the mining sector are spent, as well as the impact of mining on Mongolia's fragile environment, could also be a source of instability. The GOM has signaled that it recognizes these challenges, and is looking to learn from the example of countries such as Chile, Malaysia and Botswana to discover how economies have managed their mineral resource wealth and rapid growth successfully.

Apart from the challenges and opportunities presented by its mineral wealth, Mongolia is struggling with the enormous challenge of improving performance on a range of areas necessary to expand the benefits of growth. They can be summarized as follows:

• Weak Administrative Capacity to Promote Business Enabling Environment Mongolia made significant strides in building the legal and institutional framework necessary to support a market economy; however, implementation and enforcement must improve in order to promote competitiveness and sustained growth. Administrative capacity and procedures need to be strengthened to enhance economic governance and to reduce the cost of doing business.

• Lack of Citizen Participation in Economic Policy

Private sector and individual "citizen" involvement in policy formulation continues to be minimal.

There are few effective business associations representing the views and advocating in the policy making process on behalf of their members. Public-private dialogue will become increasingly critical to ensure that revenues from the mining sector are effectively managed and that business perspectives are considered in policy decisions that affect the enabling environment. Further, confidence in public sector capacity for efficient service delivery is low. The concept of sound corporate and economic governance is gaining traction in Mongolia but is far from adequate.

• Weak and Underdeveloped Financial Sector Significant improvements in the financial markets are necessary in order for Mongolians to capitalize on the rapid growth of the economy. Mongolian banks with steep interest rates dominate the financial sector with over 96 percent of the sector’s assets. The nascent non-banking financial sector lacks strong business managers, effective regulators and a financially literate customer base. Better regulated banks and access to longer term non-banking finance are necessary to support entrepreneurship, infrastructure development, and other ventures that require increased private sector investments.

C.2a USAID Program

Since the dissolution of the Soviet Union in 1991, USAID has helped Mongolia build a solid macroeconomic policy framework and lay the institutional foundations for a stable and sovereign democracy. USAID programs focus on two of Mongolia’s most pressing concerns: strengthening the

USAID/Mongolia RFP SOL-438-11-000001 Page 11 of 102 pages economy and improving governance. USAID has made vital contributions to Mongolia’s economic and political transformation with limited funding. It has strengthened more than 7,000 small businesses, increased the availability of business information to half a million people, and facilitated business loans worth over US $6.4 million. USAID’s assistance was critical in transforming the troubled Agricultural Bank of Mongolia into Khan Bank, one of Mongolia’s largest banks and the bank with the most extensive branch network. After 20 years of engagement, USAID is seen as the lead donor in promoting private sector-led economic growth and good governance.

The current USAID strategy in Mongolia is organized around a strategic vision that focuses on two central Strategic Objectives (SOs):

-- First, USAID/Mongolia will work to accelerate and broaden sustainable, private sector-led economic growth;

-- Second, USAID/Mongolia will work to achieve more effective and accountable governance.

USAID projects have contributed to SO1 in the following ways:

1) The Growing Entrepreneurship Rapidly (GER) Initiative: Implemented by CHF international, the GER Initiative (2002-2009) promoted business development and employment services in the rapidly growing ger (a traditional Mongolian dwelling) districts that surround Mongolia's urban centers. The GER Initiative worked in five cities and their surrounding areas: Ulaanbaatar (UB), Darkhan, Erdenet, Choibalsan and Bayan Ulgii. Activities included facilitating loans to four partner banks, supply and demand linkages to larger businesses in city centers, and information services in partnership with government authorities. The project was spun off into a local NGO, Development Solutions, which continues to operate independently and sustainably in and around the five cities.

2) The Gobi Regional Economic Growth Initiative Phase II: Implemented by Mercy Corps

International, the second phase of the ‘Gobi’ Initiative (2004-2009) promoted economic growth by developing and strengthening rural businesses in the six southern aimags (provinces) of Mongolia. Activities included facilitating financial transactions with local banks; technical support for herders and small and medium-sized enterprises; and providing expanded business information services through various media, including innovative radio programs and the monthly magazine Rural Business News.

3) Economic Policy Reform and Competitiveness (EPRC) Project (2003-2011): Implemented by

Chemonics International, Inc. (http://www.eprc-chemonics.biz/), this project provides the GOM with a quick-response mechanism for addressing a wide range of economic policy reform and private sector development issues. Working in conjunction with high-level government counterparts, long-term expatriate technical specialists provide information and analysis on key issues related to trade, investment, private sector development and related issues. Specially targeted emphases include commercialization of the energy sector and (until 2008) strengthening industries such as tourism and cashmere - key sectors of the economy.

The Gobi and GER projects, although successful, ended in early 2009 due to budget constraints.

However, successor programs continue with USDA (United States Department of Agriculture) funding.

A new USAID strategy covering the period 2012-2016 is currently being prepared and will likely continue to emphasize these two central themes. The BPI project will contribute to the USAID strategy by building on the EPRC project and its predecessor, the Economic Policy Support Project (EPSP) as well as The Competitiveness Initiative (TCI), the Gobi Project and the GER Initiative.

C.2b Mongolia’s Development Priorities

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Mongolia’s economic growth and development priorities and policies are defined in the fifth chapter of the ‘Millennium Development Goals-based Comprehensive National Development Strategy of Mongolia’ (MDGCDS) adopted in 2009. Key elements of the strategy include increasing labor productivity, increasing investment efficiency, diversifying the economy, increasing exports, introducing technology, improving the business environment, and improving infrastructure.

On the macroeconomic level, the government aims to enhance economic growth, ensure budget and financial sustainability, increase incomes of the population and provide a sound welfare benefits system.

Taxation policy will strengthen private sector-led economic growth and allow for the growth of export-oriented production and services. Inflation and external debt will be managed, interest rates lowered, and favorable investment, trade and banking environments created.

Further, the country seeks to improve competitiveness and remove obstacles to private sector growth.

Although the mining sector features prominently in the strategy, the GOM acknowledges the need for economic diversification, small and medium enterprise, food security, agricultural, and tourism development.

On infrastructure, the GOM will address the needs of the population and economic development by focusing on roads and transportation, energy, fuel, ICT, planning and construction.

C.3 SCOPE OF WORK

Flexibility and Creativity: BPI will be USAID’s primary implementation vehicle for achieving its economic growth objectives in Mongolia. It is designed as a substantive policy implementation and private sector strengthening project geared to deepening and accelerating economic growth. USAID recognizes the need for flexibility and creativity in the contractor’s approach in order to achieve meaningful and sustainable results. Use of innovation is highly encouraged.

Linkages and Synergies: BPI will retain certain positive elements of the EPRC project as well as its predecessor projects, EPSP and TCI, while providing greater emphasis on synergies between policy design and implementation on the one hand and private sector growth on the other. Furthermore, the contractor should prepare its proposal and implement the project in a way to maintain synergies with other USAID and USG funded development projects such as the Millennium Challenge Account (MCA), and other donors.

Strategic Approach: BPI will support policy changes that contribute to inclusive economic growth and permit Mongolians to participate in the growing economy. Its activities will influence the policy and institutional framework in ways that increase investment opportunities, improve trade capacity, and stimulate business growth, which will require addressing concerns in a broad range of areas affecting Mongolia's economic growth and private sector engagement in it, in areas ranging from macro-economic policy to business regulation to financing and regulation.

BPI will continue to be a demand-driven process, building on the results-oriented agenda to maximize the benefits of economic growth. The broad range of potential interventions in contrast to the limited resources available requires a strategic framework that identifies priority interventions necessary to achieve objectives in the most cost efficient manner.

Cross-cutting Issues: USAID recognizes that meaningful success in the economic growth SO cannot occur in the absence of progress in the democracy and governance SO. The critical importance of the interplay between these two strategic objectives warrants particularly strong teamwork and linkages with other activities in the USAID portfolio, especially in the areas of:

• Transparency

USAID/Mongolia RFP SOL-438-11-000001 Page 13 of 102 pages

• Public outreach

• Performance monitoring and evaluation

• Citizen engagement in the policy making process

Donor Coordination: The contractor shall actively coordinate and, where appropriate collaborate with other donors so that USAID resources can be efficiently used to achieve its objectives. BPI should take account of lessons learned from previous USAID-funded projects and other donors. Coordination may entail participation in working group meetings as well as formal and informal information exchange with other bilateral donors and multilateral organizations. USAID’s relatively small size in Mongolia heightens the importance of leveraging donor coordination to maximize results.

USAID Gender Requirements: USAID has a special interest in the participation of women and is working to improve women's equality and empowerment in developing countries. The Agency is increasingly integrating gender into its program planning process. A gender assessment is mandatory for the design of strategic plans and development objectives. USAID completed a gender analysis in 2005, which showed that women have a higher share of jobs in professional and white collar occupations than men. However, the higher education levels for women have not directly translated into higher salaries, senior-management, or decision-making positions. Mongolian women have lower levels of income for similar work, and higher levels of unemployment and poverty than men.2

With this in mind, the contractor shall update this gender analysis as an initial task under this project. The contractor shall develop a strategy for building gender into the work plan in accordance with USAID requirements. Progress of all related activities will be measured and verified using indicators that are disaggregated by gender and will be part of the project performance management plan (PMP).

Grants to local NGOs: The contractor will provide grant funding to local Mongolian NGOs, PVOs and other organizations with the consent of USAID/Mongolia in support of the objectives of this project. The amount of the grants may vary from year to year and the total value should not exceed $1,000,000 for the life of the project.

Indicators and Targets: The contractor will be responsible for monitoring, evaluating and reporting performance against an agreed upon framework of goals, objectives and results with indicators. The strategic objective indicators presented in this document are presented as illustrative and are not to be viewed as fixed.

C.4 EXPECTED RESULTS

Although economic growth prospects are promising, Mongolia faces a number of key challenges in achieving sustainable and equitable economic growth. These include, inter alia, poor economic diversification and independence, weak institutional capacity, under-developed financial sector, and weak economic governance.

As noted earlier, a new USAID strategy covering the period 2012-2016 is currently being prepared and will likely continue to emphasize the two central themes: economic growth and democracy and governance. The focus going forward will be on policy implementation as it relates to private sector-led economic growth and good governance. The USAID strategy takes a pragmatic approach to doing just that. During the next and most critical years for Mongolia, USAID expects to allocate approximately $20 million to help Mongolia advance the financial sector, implement the policies and strengthen the private sector that will ensure sustainable and equitable economic growth. BPI will be the primary vehicle to achieving USAID/Mongolia’s SO1.

Under the SO1, USAID/Mongolia seeks to expand private sector growth in a more equitable and sustainable way. This is accomplished through advancing three objectives:

2 Fitch, p. 4

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C.4a Improved Implementation of Business Enabling Policies

Mongolia has made significant strides in building the legal and institutional framework necessary to support a market economy. However, implementation and enforcement must improve in order to promote competitiveness and sustained growth. Significant improvements are required in institutional and staff capacity to understand and communicate the provisions of the legislation, effectively administer the provisions, work collaboratively with the private sector, monitor and evaluate the process of implementation, ensure enforcement of regulations, and make policy adjustments as public and private sector needs require.

Indicative results under the objective are:

1.1 Government capacity to implement economic policies and programs increased

1.2 Trade capacity strengthened

1.3 Licensing, standards and inspections streamlined and enforced

1.4 Public-private dialogue broadened

C.4b Strengthened Private Sector Capacity and Competitiveness

Despite significant improvements during the last few years, private sector capacity is far from adequate.

In fact, the private sector requires assistance to effectively manage and participate in the anticipated strong economic growth.

Ambitious development plans require mobilization of substantial financial resources and GOM is aware of the need to attract the private investment. Mongolia has taken the right steps in implementing the Concession Law (February 2010) and the Privatization Guidelines for 2010-2012 (approved by the Parliament). However, there was limited private sector engagement in drafting the law and it is not sufficient for commercial transactions to be concluded in a timely manner. There are many details which could complicate and delay commercial agreements. Therefore, it is important to further enhance the understanding of key stakeholders and provide them with transaction-related support.

Business associations provide an important function in representing the combined views and advocating on behalf of its members. In Mongolia, business associations continue to struggle to provide effective services for their members, fail to effectively lobby their members’ interests to the GOM or create unity and cooperation within particular industries. Strong business associations in key areas would promote advocacy, information exchange, training, and other support services that enhance their competitiveness.

Indicative results under the objective are:

2.1 Foreign and domestic private sector investment increased in priority sectors as identified by

GOM;

2.2 Business associations capacity strengthened;

2.3 Partnership for entrepreneurship and innovation expanded.

C.4c Improved Financial Sector Capacity and Enabling Environment

Significant improvements in the financial markets are necessary in order for Mongolians to capitalize on the rapid growth of the economy. As Mongolia undergoes significant mining sector led growth in the next five years, there is an increasing demand for alternatives to bank financing. The business community and the Mongolian citizenry need access to longer-term affordable capital in the form of instruments which are suited to their needs. With the rise in income and complexity of development projects, the demand for pensions, insurance, and sophisticated financial instruments is also expected to increase. This in turn will provide the basis for development of non-bank investment products (beyond bank deposits) for domestic and international investors wanting to invest in Mongolia’s growth.

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Expected results in these areas are:

3.1 Financial sector regulatory institutions capacity strengthened

3.2 NBFS financing and investment products increased

3.3 Corporate governance and transparency improved, as determined by both domestic observers and respected international organizations

C.5 DETAILED WORK REQUIREMENTS

BPI will consist of four main interrelated tasks that will require experienced advisors throughout the life of the project:

a. Implementation of Business Enabling Policies.

b. Private Sector Investment Support.

c. Financial Sector Deepening Support.

d. Public Outreach and Performance Monitoring and Evaluation.

C.5a Implementation of Business Enabling Policies

According to the WB, Mongolia ranks 73rd out of 183 countries in the 2010 Doing Business Index3 suggesting that it is easier to conduct business here than it is in China, Russia and Kazakhstan, but more difficult than in other countries of the former Soviet Union, such as Armenia, Azerbaijan, Kyrgyzstan and Georgia. Particular advantages of doing business in Mongolia are declared to be the ease of registering property, employing workers, the protection received by investors and the ability to enforce contracts.

Problematic areas include dealing with construction permits, customs procedures and closing businesses.

Increase Government Capacity to Implement Economic Policies

. Mongolia made significant strides in building the legal and institutional framework necessary to support a market economy; however, implementation and enforcement must improve in order to promote competitiveness and sustained growth. Administrative capacity and procedures need to be strengthened and streamlined to enhance economic governance and to reduce the cost of doing business.

Illustrative Activities:

a. Technical assistance and training for selected government agencies.

b. Study tours for government officials to learn successful methods of reform.

c. Improve the skills of selected government agencies in the formulation, analysis, and monitoring of regulations to implement laws and regulations.

d. Provide expertise, knowledge and tools to perform cost/benefit analysis of regulatory actions.

e. Develop regulatory, supervisory and monitoring functions of ministries and agencies, and standards.

f. Improve administrative procedures and processes within government agencies and ministries so as to reduce numbers of documents required, procedural hoops, timeframes, administrative costs, regulatory burden, etc.

g. Introduce to relevant government organizations, the various alternatives for private sector financing mechanisms, including direct investment, public-private partnerships (PPPs), equity investments, joint ventures, build-operate-transfer (BOT), build-operate-own (BOO) and the benefits/disadvantages of each.

h. Enhance public and private sector understanding of PPPs, assist in reviewing PPP proposals and designing feasibility studies, develop PPP financing strategies, provide preliminary transaction advice, and advise on strengthening policies, concluding agreements and implementing PPPs. Support could be directed to a number of organizations including the State Property Committee (SPC), Ministry of Finance (MoF), Ministry of Mineral Resources and Energy (MMRE) and National Development and Innovation Committee (NDIC). The

3 World Bank Doing Business 2010

USAID/Mongolia RFP SOL-438-11-000001 Page 16 of 102 pages contractor must also coordinate with the World Bank (WB) and Asian Development Bank

(ADB).

Trade Capacity Building. Mongolia ranks 116th in the world for its trading environment.4 There are a number of reasons for the poor score, although many are related to the quality of transport…