DRAFT STATEMENT OF WORK.docx

DRAFT STATEMENT OF WORK

C.1 OBJECTIVES

The purpose of this contract is to implement the Strategic Economic Research and Analysis (SERA) program. Implementation of the SERA Program through this contract has three objectives:

1. Working with public sector agencies, the private sector and civil society organizations to perform economic policy reform analyses that will improve the policy and regulatory environment. Poverty reduction and increased employment within a supportive macro-economic environment (emphasizing small business development, trade, investment and intellectual property rights, agriculture and land reform, and socio-economic impacts of HIV/AIDS in Zimbabwe and mainstreaming gender in the policy programs) are the ultimate objective. Reform of social safety net policies and programs are also a priority.

2. Working with Zimbabwean policy development institutions, and through employing both formal and informal training mechanisms, build Zimbabwean capacity for policy reform concerning selected priority issues relevant to improving the economic policy environment in Zimbabwe.

3. Working with the Zimbabwe National Statistics Agency (ZIMSTAT), provide targeted support to the collection of data, production of statistics and their dissemination.

C.2 BACKGROUND

The following provides relevant background information regarding (a) the development challenge, (b) the program rationale, (c) economic analysis and economic policy formation in Zimbabwe and (d) the development of the SERA program.

C.2.a Development Challenge

The major challenge for Zimbabwe is to generate increased broad-based, sustainable economic growth, employment, and improved equity for the nation’s citizens. An improved economic policy environment is critical to achieving these objectives and the economic empowerment of Zimbabwe’s population. Acceleration of the policy reforms is necessary to accelerate growth, reduce poverty and unemployment.

Within the current political environment, economic confidence is improving but remains very low. Although the introduction of foreign currencies as legal tender within Zimbabwe has effectively halted hyper-inflation (inflation is projected at 4.8% in 2010), all savings denominated in Zimbabwean dollars became worthless by the end of 2008. Exports have declined to the lowest levels of the last twenty years and remittances from the Diaspora contributing significantly to the country’s foreign exchange requirements as well as supporting the livelihoods of many Zimbabweans. Confidence in the economy had evaporated and the trust that is essential to investment remains to be rebuilt. However, with signs of economic recovery occurring in different areas of the economy, a window of opportunity exists to address impediments to increased growth. Future growth will depend on a number of essential factors of which one of the most important is national economic policy.

The social impact of the economic disruption has been substantial. As inflation has escalated and the costs of doing business have increased, businesses have reduced in size so that formal employment has shrunk to less than 10% of the workforce. Within a ten-year period, a fully functional social welfare system, including health, education, police, and pension systems lost all financial support and for a period of time became completely non-functional as a result. Although the physical and institutional infrastructure of these systems is still in place, resuscitation is slow.

There has been mass migration to South Africa and Europe. From a population of 14 million, five million are estimated to have left the country, while of the remaining nine million, six million are now based in urban centers and only three million remain on the land. The remaining rural population has also been disrupted by the emigration of the male workforce so that 80% of rural households are now headed by women. The results of this migration have been two-fold. On the one hand, there has been considerable depletion of technical and professional skills, while on the other hand, there has been a substantial inflow of remittances, that has been important in sustaining livelihoods.

Government is re-establishing it sources of revenue, which registered US$1.793 billion by October 2010 and is projected to be $2.7 billion in 2011. Donor and international organizations provided US$360 million as of October 2010 through the Vote of Credit, which is budgeted at US$500 million in 2011. Given adequate financial resources, it appears that the professional capacity of the civil service would be adequate to meet the immediate needs of government, but skills would be sorely lacking if new programs or concepts were to be introduced as part of a development strategy.

C.2.b Program Rationale

Three aspects of government are particularly limited and require immediate support to promote development, namely:

1. Policy formulation capacity – higher levels of government are limited in their capacity to prepare development policies, either by virtue of their experience, lack of reliable data, or as a result of the considerable work-load which can be expected to be placed upon them once the reform process has begun.

2. Timeous availability of reliable data -- The Central Statistical Office, now officially renamed ZIMSTAT, whose mandate is to collect and disseminate useful data, lacks the human and financial capacity to undertake its function. Statistics necessary for making economic and development decisions and planning are not being produced timeously and the quality of the data is questionable, or in some cases lacking. There is a great need to capacitate ZIMSTAT, which drives the entire statistical system, to generate credible and reliable data upon which government and the private sector can make decisions.

3. Public/private interface – there is need to build consensus between government and the private sector (including business and the civil society) on key policy reforms that are necessary: to improve the business operating environment; reduce the cost of doing business; reduce bureaucratic red tape and rent seeking behaviour which promote distortions and corruption; and improve the delivery of services and infrastructure. These and other reforms are required if government is to provide efficient services to the public and support growth.

C.2.c Economic Analysis and Economic Policy Formulation

The lack of reliable data undermines analysis of the performance of the Zimbabwean economy. This provides challenges in monitoring key macroeconomic indicators that measure progress of the economy as well as the ability to produce effective economic development policies and programs. For example indicators such as updating of national accounts statistics and other data series have fallen behind. Since 2006, it has been extremely difficult to obtain up to date estimates on the following variables: population, GDP, poverty levels, remittances, imports, exports, government expenditure, labour force and domestic production.

Despite the formation of the Government of National Unity (GNU), recent political developments have induced neither donor nor investor confidence. Government has made several positive attempts through the Short- to Medium Term Economic Recovery Programme (STERP) and the recently announced 2011 budget to address these challenges. However, a more concerted effort is required to support sustained evidence-based economic policy reforms.

Robust capacity building in economic policy analysis will support the formulation of economic policies that would be designed to:

· Create an attractive investment environment that promotes Foreign Direct Investment (FDI) inflows and international lines of credit by:

· Developing a legal and regulatory environment that create trust in the country and enhance financial sector viability and stability

· Development of a regulatory and licensing regime that lowers the cost of doing business and that allows businesses to operate in a corruption free environment.

· Promote policies and programs that stimulate domestic production, increase exports and reduce import requirements.

· Promote employment creation and absorb the increasing number of school leavers and the returning diaspora.

· Reduce the transaction costs and other costs of doing business.

· Enhance productivity through the recovery and redeployment of a skilled and healthy labor force.

· Rejuvenate the utility infrastructure and other growth enhancing infrastructure to support business development and social development.

· Attract donor and multilateral finance that would stimulate both demand and subsequently production and employment, contributing further to the stimulation and recovery of the economy.

C.2.d Strategic Economic Research and Analysis (SERA) Program

USAID/Zimbabwe, in partnership with the Ministry of Finance, will initiate the SERA Program. This new program has four specific results it seeks to achieve to guide its efforts to improve economic policy:

1. Strengthened skills and the knowledge base of contemporary economic policy issues of staff, management, and senior officials in government departments responsible for economic policy management. (Human Capacity)

2. Strengthened Government Departments’ capacity to analyze, adapt and implement evidence-based economic policy options. (Institutional Capacity)

3. Strengthened think tanks, research institutions, and civil society organizations that provide research support and inputs in the policy making process and improve their responsiveness to the demands of policy makers.

4. Improved quality and availability of data and statistics.

One of the fundamental challenges facing the economy which undermines government efforts to achieve economic stability and sustained growth is trust – in government, financial institutions, courts, regulatory bodies, and in the rule of law. This requires building confidence and removing uncertainty and ambiguity in policy to achieve policy credibility. This will require both political and financial resolution over time. The proposed assistance seeks to facilitate the development of trust and policy credibility by addressing the following issues:

A. The development of an effective dialogue between civil society, the private sector and government that will allow non-governmental actors to express and lobby for their views and priorities on all issues relating to growth and development.

B. The removal of macroeconomic and fiscal uncertainty through the development of a stable macroeconomic and fiscal environment supported by sound policies based upon accurate information, best practices, and public debate. Sound macroeconomic policy is the lynchpin upon which the success of a broader economic growth program is dependent. Without sound fiscal and monetary policies, other aspects of this economic growth strategy will fail. Investor confidence will not be restored, and, as a result, productivity will not increase. Policy consistency is also critical as it enhances the reputation of the policy makers and the planning horizons of the private sector. Policy reversals in the past led to private sector adopting short-term planning horizons which in some cases resulted in costly delays to undertake long-term investments.

C. The Government of National Unity is lacking the necessary experience and technical expertise to design and implement the array of fiscal and monetary policy corrections that are required to bring about market driven growth and to generate sufficient revenue to fund government programs through the budget. These measures are critical first steps that must be achieved to build not only private sector confidence but also donor confidence to reengage on a developmental level.

The Macroeconomic Policy Program Area is designed to achieve a single intermediate result IR 3.1: Macroeconomic Foundation for Economic Growth Created. The program area will provide technical assistance to the Zimbabwe Economic Policy and Analysis Unit (ZEPARU) in support of the development of policy analysis and research capacity to provide assistance to the economic ministries in fiscal and budgetary policy, and the development of effective revenue collection systems. Technical assistance may also be strategically targeted to build the capacity of the government to improve monetary policy. To achievement the intermediate result, USAID will also provide support to government to collect and analyze economic data. Such data is essential to the development of policy, but is currently not available. A core activity within this program area would use technical assistance and other supports to develop the capacity of the ZIMSTATS to collect, analyze, and publish data and results which would inform both public debate and economic policy.

This program is fundamental to the achievement of a sound macroeconomic foundation. Without accurate data and sound economic policy analysis and research capacity, it will remain impossible to determine appropriate fiscal policy positions, effective tax systems and responsive macroeconomic policy that address contemporary challenges facing the economy and society.

C.3 GENERAL PROGRAM PARAMETERS AND GUIDANCE

The following general guidance is provided with respect to issues such as coordination with other USAID programs, poverty, gender and staffing. These parameters and guidance apply to the overall performance of the Contract.

C.3.a Coordination with other USAID Programs

This activity must complement the work of other Strategic Objectives (SOs) within USAID. Thus economic policy work will assist the Health SO in analyzing the impact of HIV/AIDS and other health concerns on economic growth; work on Agriculture complements and supports other components of the Economic Growth SO; national government and local authority public financial management assists the Democracy and Governance SO; and the work on strengthening education institutions and structures supports the Health and Education SO.

The primary partners under this activity are ZEPARU, the Ministry of Finance (MOF), the Ministry of Economic Planning and Investment Promotion, ZIMSTATS, and the remainder of the Macroeconomic Growth Cluster within the Government of Zimbabwe. This activity is modeled after a very successful USAID project conducted in South Africa, called the SEGA/MESP activity. Over the life of SEGA II, the project implemented 72 activities, engaged more than 250 experts, and provided training technical assistance and policy analysis to dozens of South African ministries, departments and agencies.

C.3.b Poverty

This activity gives priority to the development of pro-poor policies, and as such special consideration must be given to data collection, analysis and research which quantify and qualify poverty in Zimbabwe, provide the basis for pro-poor or inclusive growth strategies and specific programs that address and result in poverty reduction and improvement of social services and assistance programs.

C.3.c Gender

Women and men are differentially affected by poverty and have different opportunities and constraints to achieving improved standards of living. Men and women also access government services differently. Given this, effective economic policy must take these differences into consideration. Therefore, all activities undertaken will use a gender lens—when supporting the establishment of the research agenda and development of terms of reference; when providing training on economic policy, strategy, legislation and regulatory development; and specifically when supporting regulatory and strategic impact assessments.

C.3.d Staffing and Program Management

While offerors should develop a detailed management planned based on the technical approach to this activity, USAID/Zimbabwe anticipates that in addition to three professional staff, substantive alliances and partnerships will be required to successfully perform this work. The three recommended technical staff includes a Chief of Party, a Resident Advisor, and a Contract/Office Management Specialist.

USAID recommends the addition of a Contract/Office Management Specialist to provide contracting support and general office management services to ensure the efficient programmatic and logistical operations of the office. It is expected that the Chief of Party and Resident Advisor will have the qualifications specified below.

Chief of Party – Professional Training Expert in Economist and Macroeconomic Policy Specialist

· A Master’s degree or its equivalent (including an equivalent degree in a foreign education system) in macroeconomics, economic policy and/or applied economics, and professional economic training or in a closely related field;

· ten years of relevant development experience in areas such but not limited to macroeconomic policy development and reform, and professional training eight of which should be in a developing country and three years in Africa is preferred;

· eight years of relevant experience in managing and coordinating complex development programs (experience managing macroeconomic policy reform and professional training programs is strongly preferred) of which three years in Africa is preferred;

· experience as Chief of Party of an international development program of equivalent size and scope, of which experience in Africa is preferred;

Resident Advisor – Economist and Macroeconomic Policy Specialist

· Master’s degree or its equivalent (including an equivalent degree in a foreign education system) in macroeconomics, economic policy and/or applied economics, or in a closely related field;

· ten years of relevant development experience in areas such but not limited to macroeconomic policy development and reform, eight of which should be in a developing country and three years in Africa is preferred;

· experience and demonstrated expertise as a macroeconomic policy advisor to a host country government is preferred.

C.4 SERVICES AND TASKS REQUIRED

The contractor will be responsible for managing assistance to a range of Government of Zimbabwe ministries, agencies and civil society organizations, including, among other activities, provision of short- and long-term technical advisers, research and training. The contractor is also responsible for the provision of technical assistance (as requested), contracting and oversight of a number of outsourced research projects over the course of this activity. In addition, assistance should be provided to ZEPARU as the institution conducts in-house research and analysis, and disseminates this work.

The Contractor will provide the services and deliverables specified below. With respect to the two Contract Line Item Numbers (CLINs) identified in Section B.4 and Section F.5 of the Contract, the correspondence between the CLINs and the Statement of Work is as follows:

In general, services and deliverables will be provided to achieve the objectives identified above and by performing illustrative activities specified in Section C.4.b below and elsewhere in the Contract, subject to the guidance and limitations specified in Section C. Specific services, activities and deliverables required will be established in the annual work plans approved by the Contracting Officer’s Technical Representative and, when necessary, through modifications to work plans approved in writing by the Contracting Officer’s Technical Representative. Such technical direction must be consistent with all of the terms and conditions of the Contract and the determinations of the Contracting Officer.

C.4(a) Management and Administrative Services

The Contractor will provide all general management and administrative support necessary to perform the Contract. The services authorized by this section include, but are not limited to:

1. Overall management and administration of the Contract, including both expatriate and home office support and administrative services. The Contractor will provide both the key personnel specified in the Contract and additional personnel, both long-term and short-term, necessary to meet recurring general management and administrative support needs under the Contract.

2. The Contractor shall procure or lease necessary facilities, supplies and services as necessary to perform the Contract. The Contractor shall be based in Harare, Zimbabwe when performing services under the Contract.

3. General advice regarding planning for the contract. As discussed in more detail elsewhere, work plans are required.

4. Oversight, quality control and general technical support of all services and deliverables provided pursuant to the Contract.

5. Provide and assure the proper, efficient and uniform use of modern management and administration, accounting practices, information technology (IT), communications, reporting, human resource management, property control, security, records and other administrative processes and systems required under the Contract.

6. Manage the overall database and reporting needs of the program as specified in the Contract and developed in work plans in conjunction with the COTR.

7. Manage and administer a small grants program pursuant to Section H.19 and as developed in the work plans required in C.5(b) below. The Contractor shall identify and review viable program proposals, develop a process for evaluating proposals and prepare them for review by USAID and other participants in the evaluation process. The Contractor shall monitor performance under the grants and ensure that these grants comply with all USAID grant requirements such as progress reports, audits, evaluations and completion of disbursement vouchers.

C.4(b) Technical Services

Below are illustrative examples of the technical areas and activities in which the contractor will provide technical inputs and support training. USAID/Zimbabwe recognizes, however, that changing requirements may make it necessary to modify the areas and activities cited below, eliminating some areas and adding others. There are twin foci of USAID’s work: economic policy reform and capacity development. In both cases, the emphasis is on improving Zimbabwe's analytical capacity to improve economic policy. In addition to seminars offered by African institutions or developed under this activity, the use of USG agencies and Department training programs should be considered, as appropriate. For example, the U.S. Department of Labor Statistics, the Department of the Treasury, the Department of Justice and Department of Commerce all have overseas training and technical assistance divisions which offer and will customize training to meet country-specific needs.

The Minister of Finance has highlighted several initial areas in which outreach, research and analysis is needed either to inform government policy or to undertake legislative or regulatory reform. Each of these illustrative areas has macroeconomic underpinnings which require broader monetary and fiscal policy decision making to take place. These initial areas include:

· Pro-poor or inclusive growth policies

· Public finance

· Financial sector regulation

· Labor market economics

· Private sector competitiveness and governance

· Regional trade and integration

· Sector-specific policy: extractive industries, agricultural, energy

A priority of this activity will be support for the development of inclusive growth policies, including the development or reform of social safety net strategies, policies and programs. This activity will support implementation of a demand-driven research agenda, resulting in new policy development or policy reforms and/or drafting of new legislation/regulations; and the production of quality and timely statistics and data.

C.4(b)(1) Assistance to ZEPARU

This program component involves research and analysis and various types of training.

C.4(b)(1)(A) Research and Analysis

As the primary institution to undertake economic policy and research, ZEPARU has the mandate to support government and civil society in the development of economic policy. The institution supports policy decision-makers and implementation across government, looking at macroeconomic policy issues and constraints; variables of fiscal and monetary policy and outcomes, including public finance; drivers of economic growth; and regional trade and integration, among other areas.

Loss of human capital and access to financial capital within ZEPARU, even since its inception in 2004, has meant the institution no longer has the capacity to respond in a timely fashion to all requests for support for policy analysis and training. In light of this, the MOF and USAID’s joint objectives for economic policy reform within Zimbabwe and the focus of this program will be to develop and deepen ZEPARU’s capacity to fulfill its mandate. Short-term and long-term technical assistance will be provided to ZEPARU, on a demand basis and the contractor will be responsive to the needs of ZEPARU and support the institution to fulfill its mandate. The contractor shall not undertake direct policy analysis or research, shall not be involved in the management of the Unit and shall not directly be involved in the determination of the research agenda. The contractor will provide support and technical assistance to ZEPARU as it outsources certain short and long-term research projects to local, regional or international consultants, think tanks or other organizations. As required by ZEPARU, the contractor may assist ZEPARU in the development of the terms of reference for such research activities, will fund the contract of the outsourced research organization, may support ZEPARU in the management of that contract, as requested by ZEPARU, and once final products are accepted/approved by ZEPARU, will make payment directly to the research organization (act as paying agent for USAID-funded activities).

The contractor will provide a long-term resident advisor to ZEPARU, for a period of two years. The Resident Advisor will provide technical assistance to the Unit, as requested, in support of the institution’s development and implementation of the research agenda (to be conducted both in-house and outsourced), and development and completion of short and long-term training programs.

ZEPARU and the contractor may find it necessary to have short term advisors (up to 3 months) within ZEPARU, when longer term research activities require greater support. The need for such short-term advisors may become essential in Years 3 and 4 of this activity.

C.4(b)(1)(B) Parliamentarian Training

Parliamentarian training on economic policy issues and improving their economic literacy is essential to enable and empower parliamentarians to make informed decisions especially when they debate the budget and other economic policy and legislative issues affecting economic planning. ZEPARU will craft a training program designed to build capacity of parliamentarians on economics in general and economic policy issues in particular. This program will be designed in consultation with the Clerk of Parliament and the Portfolio committee chairpersons especially the Finance and Budget Committee. ZEPARU will coordinate with other interested donors and non-government organizations that are running capacity building programs for parliament to avoid duplication and thus provide appropriate training. USAID estimates approximately 6 Parliamentary seminars a year will be required.

C.4(b)(1)(C) Short and Long-term Training of Economists

The provision of various short term and long-term training is required under this contract. As a result of the country's economic decline, skilled individuals, specifically those qualified to undertake high-quality economic research and analysis, have emigrated to South Africa, the U.K., or elsewhere to seek better wages and living conditions as they wait out the political uncertainty in Zimbabwe. ZEPARU will initiate and the contractor will support a training program with the objective of developing a greater depth of skills and knowledge within government research and analysis units in each of the prime partners, and when deemed appropriate, within other government entities and line ministries.

Long-term Training: Up to 10 individuals will be provided graduate bursaries each year for the first two years of this program. These individuals will undertake part-time Master's degree programs in the Economics Department of the University of Zimbabwe. The Master’s Degree Program is a three year program. Selection of individuals will be based upon recommendations made by program stakeholders and nominations made by ZEPARU. The participants under this program are required to work for the Zimbabwean Government or their agencies for a period not less than the duration of their training. Thirty bursaries are planned over the first two years of this activity and bursaries not awarded in any given year may be awarded in a subsequent year.

Up to five (5) individuals will be provided graduate bursaries to study full-time at the University of Cape Town in a Ph.D. economics program, or a relevant degree program at another academic institution. This is a four year program and therefore USAID anticipates that intake of students will only take place in year one. Another option however is to undertake this degree on a part time basis. Selection of individuals will be completed based upon recommendations made by program stakeholders and nominations made by ZEPARU. The participants under this program are required to work for the Zimbabwean Government for a period not less than the duration of their training. Support for graduate degrees is limited to government employees.

Short-term training: A series of short-courses will be provided to selected individuals, to be designed and held within Zimbabwe, as well as the provision of bursaries and travel/per diem for selected individuals to travel to regional short courses.

Up to five (5) short courses of up to ten (10) days each will be conducted in Zimbabwe each year, each with up to 20 participants. Course topics will be demand-driven and be responsive to the needs of the annual research agenda of the MOF, MOEP and ZEPARU. The contractor will be responsible for provision of technical assistance to ZEPARU in either designing and conducting the short-courses, or hiring a training institution which may have existing relevant short courses, to conduct the training. The contractor will be responsible for all costs associated with these courses: design, materials development and printing, venue, facilitators and instructors, etc.

In addition, up to 25 individuals will be sponsored to attend relevant economics short courses regionally. These are established courses offered by African institutions throughout sub-Saharan Africa. The majority of these courses are two weeks in duration. The contractor will be responsible for all costs associated with these courses: travel and per diem for participants, course registration and tuition/fee.

Up to 8 individuals will be sponsored to attend Africa regional courses of longer duration, up to 30 days. Again, these are established courses offered by African institutions throughout sub-Saharan Africa. The majority of these courses are two weeks in duration, but some are longer. The contractor will be responsible for all costs associated with these courses: travel and per diem for participants, course registration and tuition/fee.

C.4(b)(1)(D) Workshops

In the past ZEPARU supported a number of workshops for relevant public and private sector stakeholders to review and discuss various economic policies and present research and analysis completed. These workshops can be both outreach focused, or can be held specifically to disseminate information and research, but the subject matter will be driven by current issues or the annual research agenda of the MOF, the Ministry of Economic Planning and ZEPARU. The majority of these workshops will be three days in length, and will be held in Harare. USAID anticipates supporting up to 10 outreach/dissemination workshops. Upwards of 70 individuals will participate in each workshop from government, universities and colleges, think tanks, the private sector, civil society and the donor community. The contractor will be responsible for all costs associated with these courses: venue/facilities, materials development and printing, facilitators and other incidentals.

C.4(b)(2) Assistance to ZIMSTAT

The Zimbabwe National Statistics Agency (ZIMSTAT) was established as a corporate entity in 2009, taking over the function of the Central Statistics Organization. While ZIMSTAT is one of several organizations (academic, NGO, ministries, etc.) to produce statistics in Zimbabwe, it is the organization responsible for the coordination and supervision of the National Statistical System and implementation of the National Strategy for the Development of Statistics (NSDS). Like ZEPARU, the last few years have seen ZIMSTAT plagued by lack of human, financial and organizational capacity to carry out this mandate. Government, while acknowledging the increased need for statistics and their production, does not have the resources to support implementation of the NSDS.

As part of USAID’s support for improved macroeconomic capacity within Zimbabwe, targeted support should be provided to critical needs identified by ZIMSTAT. USAID’s interest lies in the production of key national accounts and finance statistics and social statistics. Of the major challenges cited by ZIMSTAT, the following may be appropriate to receive USAID assistance:

· Coordination of data producers which affects harmonization of different methodologies;

· Insufficient and outdated hardware and software,

· Shortage of office equipment and transport for data production; and o

· Updated statistical infrastructure such as the business register, CPI outlets and the sample frame.

The achievement of two results shall be supported under this program component:

A. Improve organization and coordination of the National Statistics System

i. Improve technical coordination arrangements between data producers

ii. Develop a publication on statistical concepts and definitions

iii. Provide training to data producers on new methodologies and approaches (build human capacity)

B. Develop physical, IT and Statistical Infrastructure

i. Support the development of a data management system

ii. Support the functioning of data collection through procurement of IT equipment and vehicles (motorbikes)

iii. Support improvement of sampling frames, registers, methodologies, metadata, adoption of classifications, etc.

The World Bank, the African Capacity Building Foundation and UNDP have provided support to ZIMSTAT, in the development of a strategy, as well as the development and implementation of specific surveys. No more than $500,000 annually will be allocated for direct support to ZIMSTAT, pending availability of resources. ZIMSTAT must coordinate funding and programming offered to the organization by various donors.

Separate from this program, USAID/Zimbabwe is considering further support to ZIMSTAT for the undertaking of the Poverty, Income and Expenditure Survey (PIEDS).

C.5 REPORTS AND DELIVERABLES:

The following reports and plans are required. All costs directly associated with producing the reports and plans specified in Sub-sections C.5(a), C.6(b), C.5(e), C.5(f), C.5(g) and C.5(h) will be billed to CLIN 0001, Management and Administrative, described in C.4(a) above. In addition, the reports, plans and other deliverables required under the Contract are subject to the deadlines specified in Section F.7. The Contractor shall submit to the COTR three (3) hard copies and an electronic copy (in PDF format) in English of all reports, strategies and studies completed during the course of implementation within two weeks of their completion, with the exception of Trip Reports.

C.5.a Monitoring and Evaluation Plan

Monitoring and evaluation of the outputs and outcomes of this activity is essential to ensuring proper targeting of resources. For the majority of tasks, the monitoring and evaluation and performance monitoring plans for this activity will mirror the performance monitoring systems of the client institutions. Given the demand driven nature of this activity, the contractor will work closely with client institutions, namely the MOF, ZEPARU and ZIMSTATS, to develop a performance monitoring plan, and monitoring and evaluation system to measure progress towards programmatic and organizational objectives.

The Contractor, with support from USAID as needed, will develop a monitoring and evaluation plan (M&E Plan) that supports USAID’s Performance Management Plan (PMP) consistent with the schedule set forth in Section F.7(a) below. This M&E plan should mirror the plan developed by ZEPARU and ZIMSTATS. USAID/Zimbabwe will require, at a minimum, data collection and reporting on a number of indicators related to macroeconomic policy, legislation and regulation across a number of sectors, primarily under 4.1 Macroeconomic Foundation for Growth, and including 3.3 Social and Economic Services and Protection for Vulnerable Populations, as well as other Objective Areas. Currently, indictors associated with these Objective Areas are under review and redesign. Therefore, offerors should recommend a number of indicators which meet the intended results and outcomes of this activity. Offerors must provide baselines and targets for the entire period of performance, and note underlying assumptions for indicator recommended. A final selection of indicators will be made following award.

C.5.b Annual Work Plan

The Contractor shall develop an annual work plan to be approved in content and format by the COTR of USAID consistent with the schedule set forth in Section F.7(b) below. The annual work plan shall be developed in consultation with the client institutions and the USAID/Zimbabwe COTR, the work plan may be revised on a quarterly basis [at any time as required by the COTR]. The work plan shall list activities grouped according to the activity categories and expected results defined above. The following shall be indicated for each activity:

· Anticipated start and end dates.

· Anticipated life-of-activity funding broken down by month.

· A listing of the principal counterparts for each proposed activity

· A description and estimate of the amounts of short-term technical expertise, training and other support resources that would be required to provide the assistance proposed.

· Performance indicator(s).

· Baselines for each performance indicator.

The annual work plan shall then describe in narrative form the activity rationale (i.e. the development hypothesis) and expected outputs. It shall include a discussion of relationships to other Contractor activities and to activities performed by others that are necessary for the accomplishment of higher level results, if any. It shall also include a discussion of how crosscutting areas are to be addressed.

C.5.c Activity Reports, Strategies, Success Stories, Planned Events and Public Outreach

While this activity may not generate significant materials appropriate for public outreach, the Contractor shall submit additional reports, studies, and analyses as required for particular activities as identified and approved through the annual work plan process. The Contractor shall provide, as appropriate and agreed upon with USAID, success stories, a schedule of planned events related to the activity’s implementation, including trainings and workshops and shall propose a means of keeping stakeholders aware and informed about program developments and produce/disseminate information tools (e.g., newsletters, success stories, etc.). These reports shall be submitted as per the schedule at F.7.c. In addition, the Contractor may be requested to submit documents and information to USAID/Zimbabwe or USAID/Washington on an ad hoc, but urgent basis, based on the needs of the Agency and the Africa Bureau. The due dates for these deliverables will be established in the work plan (or written modification thereto) or, in the case of an emergency ad hoc report, by the COTR in writing.

C.5.d Quarterly Progress Reports

The Contractor will prepare and submit quarterly reports to USAID/Zimbabwe consistent with the schedule set forth in Section F.7(d) below. Quarterly reports will include progress made on activities and on performance results of USAID/Zimbabwe’s Economic Growth SO’s indicators.

C.5.e Quarterly Financial Reports and Accruals

Financial reports are required on the timeline specified in Section F.7(e) below. These reports will only be considered delivered when accepted by the COTR as containing the information required.

The financial report will show, for the contract and each subcontract, cost to date, the budget estimate for the upcoming quarter, variations from previous estimates (should be highlighted on any spreadsheets and should be addressed in a narrative if significant) and the estimated cost to complete. Actual cost information shall be submitted in the format of the budgets submitted in the Contractor’s cost proposal. The Contractor will track the level of funding available and utilized for sub-grants and the level of funding available and utilized for administrative support and oversight.

The financial report format will be determined by the COTR after consultations with the Contractor, except as specified above. Specifically, the report should contain at a minimum the following information:

· Total funds committed to date by USAID into the Contract.

· Total funds expended by the Contractor to date, including a breakdown to the budget categories provided in the Contractor’s cost proposal, with additional detail to be provided upon request by the COTR.

· Pipeline (committed funds minus expended funds)

· Funds and time remaining in the Award

· Breakdown of expenditures by type of funding

The Contractor will also provide statements of accrued expenditures on a quarterly basis to the COTR based on the schedule specified in Section F.7(f) below.

C.5.f Annual Report

The Contractor will submit an annual report covering activities of the previous fiscal year based on the Schedule in Section F.7(f) below. . The fourth quarter report and the annual report may be submitted as a single document, but all data must be presented by quarter. The Annual Report shall provide detailed data and analysis of performance under this contract. Indicator reporting, success stories and a lessons learned discussion are required. The format of the Annual Report will be agreed upon with the COTR.

C.5.g Other Reporting

Two other reports are required regularly.

· Property Reports: Non-expendable Personal Property The Contractor shall submit to the Contracting Officer one copy of an annual property report containing the information required by AIDAR 752.245-70. The reporting periods are for each year of this task order. This report shall be submitted on the schedule specified in Section F.7(h)

· Sub-Contractor and Grants under Contracts Audits To the extent that sub-contractors and grants under contracts are not required to have recipient-contracted audits performed, the Contractor shall, at the direction and approval of the RCO, provide, or arrange for annual independent financial audits of the sub-contractors and grants under contracts. USAID will assist the Contractor in developing the terms of reference for these audits and may clear the terms of reference through the Office of the Regional Inspector General. This report shall be submitted on the schedule specified in Section F.7(g).