Amendment 000001 Attachment 2 - Revised Sol_72011422R00005.pdf

SOL #72011422R00005

SECTION B - SUPPLIES OR SERVICES/PRICES .............................................................................................. B-1 B.1 PURPOSE ......................................................................................................................................................... B-1 B.2 CONTRACT TYPE .......................................................................................................................................... B-1 B.3 ESTIMATED COST, FIXED FEE, AND OBLIGATED AMOUNT ........................................................... B-1 B.4 BUDGET ........................................................................................................................................................... B-1 B.5 INDIRECT COSTS .......................................................................................................................................... B-2

B.6 ADVANCE UNDERSTANDING ON CEILING INDIRECT COST RATES AND FINAL

REIMBURSEMENT FOR INDIRECT COSTS ..................................................................................................... B-3 B.7 PAYMENT OF FIXED FEE .............................................................................................................................. B-3 B.8 COST REIMBURSABLE ................................................................................................................................ B-3

SECTION C - DESCRIPTION/SPECIFICATIONS/STATEMENT OF WORK .............................................. C-1 C.1. PURPOSE ........................................................................................................................................................ C-1 C.2. BACKGROUND .............................................................................................................................................. C-1 C.3 STRATEGIC ALIGNMENT AND THEORY OF CHANGE ....................................................................... C-4 C.4. SCOPE OF WORK ......................................................................................................................................... C-5 C.5 DETAILED WORK REQUIREMENTS ....................................................................................................... C-7 C.6 GRANTS UNDER CONTRACT .................................................................................................................... C-8 C.7 SPECIFIC INTERVENTIONS ..................................................................................................................... C-8 C.8 CONTRACT DELIVERABLES ................................................................................................................. C-9 C.9 MONITORING, EVALUATION AND LEARNING (MEL) ..................................................................... C-11 C.10 SUSTAINABILITY CONSIDERATIONS .................................................................................................. C-12 C.11 CROSS-CUTTING IMPLEMENTATION REQUIREMENTS................................................................ C-12 C.12 ENVIRONMENTAL COMPLIENCE......................................................................................................... C-15

SECTION D - PACKAGING AND MARKING .................................................................................................... D-1 D.1 AIDAR 752.7009 MARKING (JAN 1993) ..................................................................................................... D-1 D.2 MARKING AND BRANDING STRATEGY ................................................................................................ D-1 D.3 BRANDING STRATEGY AND MARKING PLAN .................................................................................... D-1 D.4 BRANDING STRATEGY ............................................................................................................................... D-2 D.5 BRANDING IMPLEMENTATION PLAN (BIP) AND MARKING PLAN (MP) .................................... D-2

SECTION E - INSPECTION AND ACCEPTANCE ............................................................................................. E-1 E.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE .............................. E-1 E.2 INSPECTION AND ACCEPTANCE ............................................................................................................. E-1

SECTION F - DELIVERIES OR PERFORMANCE ............................................................................................. F-1 F.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE .............................. F-1 F.2 PERIOD OF PERFORMANCE ...................................................................................................................... F-1 F.3 PLACE OF PERFORMANCE ........................................................................................................................ F-1 F.4 AUTHORIZED WORK WEEK ...................................................................................................................... F-1 F.5 AIDAR 752.242-70 PERIODIC PROGRESS REPORTS (OCT 2007) ........................................................ F-1 F.6 REPORTS AND DELIVERABLES ................................................................................................................ F-2 F.7 PERFORMANCE STANDARDS AND EVALUATION ............................................................................ F-10 F.8 CONTRACTOR COOPERATION WITH ANY EXTERNAL EVALUATION ...................................... F-11 F.9 KEY PERSONNEL ........................................................................................................................................ F-11 F.10 SUBMISSION OF DATASETS TO THE DEVELOPMENT DATA LIBRARY (DDL) (OCT 2014) .... F-12 F.11 ELECTRONIC SUBMISSION OF DOCUMENTS .................................................................................... F-13

F.12 AIDAR 752.7005 SUBMISSION REQUIREMENTS FOR DEVELOPMENT EXPERIENCE

DOCUMENTS. (SEP 2013) .................................................................................................................................... F-13

SECTION G - CONTRACT ADMINISTRATION DATA ................................................................................... G-1

G.1 AIDAR 752.7003 DOCUMENTATION FOR PAYMENT (NOV 1998) ..................................................... G-1 G.2 ADMINISTRATIVE CONTRACTING OFFICE ........................................................................................ G-2 G.3 CONTRACTING OFFICER’S AUTHORITY ............................................................................................. G-2 G.4 CONTRACTING OFFICER’S REPRESENTATIVE (COR) ..................................................................... G-2 G.5 TECHNICAL DIRECTIONS/RELATIONSHIP WITH USAID ................................................................ G-3 G.6 ACCEPTANCE AND APPROVAL ............................................................................................................... G-4 G.7 PAYING OFFICE ........................................................................................................................................... G-4 G.8 INVOICES ....................................................................................................................................................... G-5 G.9 CONTRACTOR’S PRIMARY POINT OF CONTACT .............................................................................. G-5

SECTION H - SPECIAL CONTRACT REQUIREMENTS ................................................................................ H-1 H.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE ............................. H-1 H.2. AIDAR 752.225-70 SOURCE AND NATIONALITY REQUIREMENTS (FEB 2012) ............................ H-1 H.3 AIDAR 752.7004 EMERGENCY LOCATOR INFORMATION (JUL 1997) ........................................... H-2

H.4 AIDAR 752.7005, SUBMISSION REQUIREMENTS FOR DEVELOPMENT EXPERIENCE

DOCUMENTS (SEP 2013) ...................................................................................................................................... H-2 H.5 INSURANCE AND SERVICES ..................................................................................................................... H-3 H.6 752.228-70 MEDICAL EVACUATION (MEDEVAC) SERVICES (JULY 2007) ..................................... H-5 H.7 AUTHORIZED GEOGRAPHIC CODE ....................................................................................................... H-5 H.8 LANGUAGE OF REPORTS AND OTHER OUTPUTS ............................................................................. H-5 H.9 752.7034 ACKNOWLEDGMENT AND DISCLAIMER (DEC 1991) ........................................................ H-6 H.10 EXECUTIVE ORDER ON TERRORISM FINANCING (FEB 2002) ....................................................... H-6

H.11 FOREIGN GOVERNMENT DELEGATIONS TO INTERNATIONAL CONFERENCES (JUNE 2012) .6

H.12 REPORTING OF FOREIGN TAXES (JULY 2007) .................................................................................... H-6 H.13 USAID DISABILITY POLICY - ACQUISITION (DECEMBER 2004) .................................................... H-7 H.14 ORGANIZATIONAL CONFLICT OF INTEREST .................................................................................... H-8 H.15 CONFLICTS OF INTEREST ........................................................................................................................ H-8

H.16 752.7032 INTERNATIONAL TRAVEL APPROVAL AND NOTIFICATION REQUIREMENTS (APR

2014) ........................................................................................................................................................................... H-9 H.17 ENVIRONMENTAL COMPLIANCE ........................................................................................................ H-10 H.18 DISCLOSURE OF INFORMATION .......................................................................................................... H-10 H.19 BUSINESS CLASS TRAVEL ...................................................................................................................... H-11 H.20 NEWS RELEASE .......................................................................................................................................... H-11 H.21 TITLE TO PROPERTY ............................................................................................................................... H-11 H.22 PRESS RELATIONS .................................................................................................................................... H-11 H.23 NONDISCRIMINATION (JUNE 2012) ...................................................................................................... H-12 H.24 USAID-FINANCED THIRD-PARTY WEB SITES (AUG 2013).............................................................. H-12 H.25 CONFERENCE PLANNING AND REQUIRED APPROVALS (AUG 2013) ........................................ H-13 H.26 USAID IMPLEMENTING PARTNER NOTICES (IPN) PORTAL FOR ACQUISITION (JULY 2014) . 14

H.27 SUBMISSIONOF DATASETS TO THE DEVELOPMENT DATA LIBRARY (DDL) (OCTOBER 2014)

......................................................................................................................................................................... H-15

H.28 PROHIBITION ON THE USE OF FEDERAL FUNDS TO PROMOTE, SUPPORT, OR ADVOCATE

THE LEGALIZATION OR PRACTICE OF PROSTITUTION– TIP ACQUISITION (MAY 2007) ........... H-16

H.29 USAID IMPLEMENTATION OF SECTION 508 OF THE REHABILITATION ACT OF 1973 AND

FEDERAL ACQUISITION CIRCULAR (FAC) 97-27 "ELECTRONIC AND INFORMATION

TECHNOLOGY ACCESSIBILITY ..................................................................................................................... H-17 H.30 CONTRACTOR’S PERSONNEL INTEGRITY IN FOREIGN ASSISTANCE ..................................... H-17 H.30 THIRD COUNTRY TRAINING .................................................................................................................. H-17

H.31 52.203-99, PROHIBITION ON CONTRACTING WITH ENTITIES THAT REQUIRE CERTAIN

INTERNAL CONFIDENTIALITY AGREEMENTS (DEVIATION 2015-02) ................................................ H-17 H.32 LOGISTICS SUPPORT ................................................................................................................................ H-17 H.33 CONSENT TO SUBCONTRACT ................................................................................................................ H-18

H.34 CONTRACTOR’S USE OF PROJECT VEHICLES AND LIABILITY INSURANCE REQUIREMENTS

FOR PRIVATELY OWNED VEHICLES ........................................................................................................... H-18

H.35 NONEXPENDABLE PROPERTY PURCHASES AND INFORMATION TECHNOLOGY

RESOURCES .......................................................................................................................................................... H-18

H.36 FRAUD REPORTING .................................................................................................................................. H-19 H.37 FACILITIES USED FOR RELIGIOUS ACTIVITIES ............................................................................. H-19

PART II - CONTRACT CLAUSES .......................................................................................................................... I-1

SECTION I - CONTRACT CLAUSES .................................................................................................................... I-1 I.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE ............................... I-1 I.2 52.204-5 WOMEN – OWNED BUSINESS (OTHER THAN SMALL BUSINESS) .................................... I-4 (OCT 2014) .................................................................................................................................................................. I-4

I.3 52.204-25 PROHIBITION ON CONTRACTING FOR CERTAIN TELECOMMUNICATIONS AND

VIDEO SURVEILLANCE SERVICES OR EQUIPMENT (AUG 2020) .............................................................. I-4

I.4 52.209-9 UPDATES OF PUBLICLY AVAILABLE INFORMATION REGARDING RESPONSIBILITY

MATTERS (OCT 2018) ............................................................................................................................................. I-7 I.5 52.216-24 LIMITATION OF GOVERNMENT LIABILITY (APR 1984) ................................................... I-8 I.6 52.219-9 SMALL BUSINESS SUBCONTRACTING PLAN (JUN 2020)..................................................... I-8 I.7 52.222-2 PAYMENT FOR OVERTIME PREMIUMS (JUL 1990) ............................................................ I-20 I.8 52.222-35 EQUAL OPPORTUNITY FOR VETERANS (JUN 2020) ......................................................... I-21 I.9 52.222-36 EQUAL OPPORTUNITY FOR WORKERS WITH DISABILITIES ...................................... I-21 (JUN 2020) ................................................................................................................................................................. I-21 I.10 ENSURING ADEQUATE COVID-19 SAFETY PROTOCOLS FOR FEDERAL ................................. I-21 CONTACTORS (OCT 2021) (DEVIATION) ........................................................................................................ I-21 I.11 52.229-8 TAXES – FOREIGN COST REIMBURSEMENT CONTRACTS (MAR 1990) ....................... I-22 I.12 52.243-7 NOTIFICATION OF CHANGES (JAN 2017) .............................................................................. I-22 I.13 52.247-67 SUBMISSION OF TRANSPORTATION DOCUMENTS FOR AUDIT (FEB 2006) .............. I-24 I.14 752.219-70 USAID MENTOR- PROTÉGÉ PROGRAM (JUL 2007) ......................................................... I-25 I.15 752.245-70 GOVERNMENT PROPERTY - USAID REPORTING REQUIREMENTS. (OCT 2017) ... I-25

I.16 752.225-9 BUY AMERICAN ACT - TRADE AGREEMENTS ACT - BALANCE OF PAYMENTS

PROGRAM ............................................................................................................................................................... I-27 I.17 752.7101 VOLUNTARY POPULATION PLANNING ACTIVITIES (JUN 2008) ................................... I-27

PART III - LIST OF DOCUMENTS, EXHIBITS AND OTHER ATTACHMENTS ......................................... J-1 SECTION J - LIST OF ATTACHMENTS ............................................................................................................. J-1

SECTION K - REPRESENTATIONS, CERTIFICATIONS, AND OTHER STATEMENTS OF BIDDERS K-1

K.1 NOTICE LISTING SOLICITATION PROVISIONS INCORPORATED BY REFERENCE ................ K-1 K.2 52.204-8 ANNUAL REPRESENTATIONS AND CERTIFICATIONS (MAR 2020) ................................ K-1

K.3 REPRESENTATION REGARDING CERTAIN TELECOMMUNICATIONS AND VIDEO

SURVEILLANCE SERVICES OR EQUIPMENT (OCT 2020) .......................................................................... K-5 K.4 INSURANCE - IMMUNITY FROM TORT LIABILITY ........................................................................... K-8 K.5 AGREEMENT ON, OR EXCEPTIONS TO, TERMS AND CONDITIONS ............................................ K-8 K.6 52.209-5 CERTIFICATION REGARDING RESPONSIBILITY MATTERS .......................................... K-8 (AUG 2020) ................................................................................................................................................................ K-8 K.7 52.209-7 INFORMATION REGARDING RESPONSIBILITY MATTERS (OCT 2018) ...................... K-11 K.8 52.215-6 PLACE OF PERFORMANCE (OCT 1997) ................................................................................ K-13 K.9 52.222-22 PREVIOUS CONTRACTS AND COMPLIANCE REPORTS (FEB 1999) ........................... K-13 K.10 52.222-25 AFFIRMATIVE ACTION COMPLIANCE (APR 1984) ......................................................... K-13 K.11 52.225-20 PROHIBITION ON CONDUCTING RESTRICTED BUSINESS OPERATIONS IN SUDAN— CERTIFICATION (AUG 2009) ............................................................................................................................ K-13 K. 12 ........ 52.227-15 REPRESENTATION OF LIMITED RIGHTS DATA AND RESTRICTED COMPUTER SOFTWARE (DEC 2007) ...................................................................................................................................... K-14 K.13 52.230-1 COST ACCOUNTING STANDARDS NOTICES AND CERTIFICATION (JUN 2020) ....... K-15 K.14 52.230-7 PROPOSAL DISCLOSURE--COST ACCOUNTING PRACTICE CHANGES (APR 2005) K-17 K.15 AUTHORIZED NEGOTIATORS ............................................................................................................... K-18 K.16 SIGNATURE ................................................................................................................................................. K-18

SECTION L - INSTRUCTIONS, CONDITIONS, AND NOTICES TO BIDDERS ............................................ L-1

L.1 52.252-1 SOLICITATION PROVISIONS INCORPORATED BY REFERENCE (FEB 1998) ................ L-1 L.2 52.216-1 TYPE OF CONTRACT (APR 1984) ............................................................................................... L-1 L.3 FAR 52.215-1 INSTRUCTIONS TO OFFERORS - COMPETITIVE ACQUISITION (JAN 2017) ........ L-1 L.4 GENERAL INSTRUCTIONS TO OFFERORS ............................................................................................ L-5 L.5 SUBMISSION/DELIVERY INSTRUCTIONS .............................................................................................. L-6 L.6 INSTRUCTIONS FOR PREPARATION OF TECHNICAL PROPOSAL ................................................ L-7

L.7 INSTRUCTIONS FOR PREPARATION AND SUBMISSION OF THE COST/BUSINESS PROPOSAL

L.9 52.233-2 SERVICE OF PROTEST (SEP 2006) .......................................................................................... L-19

SECTION M - EVALUATION FACTORS FOR AWARD ................................................................................ M-1 M.1 GENERAL INFORMATION ........................................................................................................................ M-1 M.2 TECHNICAL EVALUATION CRITERIA ................................................................................................. M-1 M.3 COST/BUSINESS EVALUATION ............................................................................................................... M-4 M.4 DETERMINATION OF COMPETITIVE RANGE .................................................................................... M-5 M.5 SOURCE SELECTION ................................................................................................................................. M-5

SOL #72011422R00005 SECTION B

B-1

SECTION B - SUPPLIES OR SERVICES/PRICES

B.1 PURPOSE

The purpose of the USAID Local Governance Program is to enhance the effectiveness, accountability, and citizen-responsiveness of target local governments in Georgia. The Activity has been designed specifically to: (a) support central-level institutions to manage implementation of the Decentralization Strategy and (b) strengthen accountability across the local governance ecosystem (including across branches of government and across governance functions)

B.2 CONTRACT TYPE

This is a Cost-Plus-Fixed-Fee (CPFF) Completion-type contract. For the consideration set forth below, the Contractor will achieve the performance objectives and deliverables, or outputs described in Section C, Statement of Work, and 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 Total Estimated Cost for the performance of the work required hereunder, exclusive of fixed fee, is _______ [ TBD ]. The Total Fixed Fee, is _______ [ TBD ] . The Total Estimated Cost Plus Fixed Fee, if any, is _______ [ TBD ] .

(b) Within the estimated cost plus fixed fee specified in paragraph (a) above, the amount currently obligated and available for reimbursement of allowable costs incurred by the Contractor (and payment of fee) for performance hereunder is _______ [ TBD ] . The Contractor must not exceed the aforesaid obligated amount, unless authorized by the contracting officer pursuant to the clause of this contract entitled “Limitation of Funds (APR 1984)” FAR 52.232-22.

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

B.4 BUDGET

The following itemized budget sets forth the estimates for reimbursement of dollar costs for cost categories and the fixed fee. [Values will be included at time of award]

CLIN Item Total ($) 001 Total Direct Costs ___ 002 Grants under Contract Up to

$3,285,000 or (15% of the total contract budget)

003 Total Indirect Costs 004 Contract Total Cost (excluding fee)

B-2

005 Fixed Fee Total Estimated Cost Plus Fixed Fee

B.5 INDIRECT COSTS

The contract clause entitled “Allowable Cost and Payment (JUN 2013)”, 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:

For the Prime Contractor:

Description Rate Base Type Period

TBD TBD% 1/ 1/ 1/

TBD TBD% 2/ 2/ 2/

1/ Base of Application: TBD Type of Rate: TBD Period: TBD 2/ Base of Application: TBD Type of Rate: TBD Period: TBD

For Major Subcontractor(s):

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

Description Rate Base Type Period

TBD TBD% 1/ 1/ 1/

TBD TBD% 2/ 2/ 2/

1/ Base of Application: TBD Type of Rate: TBD Period: TBD 2/ Base of Application: TBD Type of Rate: TBD Period: TBD

A “Major Subcontractor” is a subcontractor that is performing 20% or more of the contract, B-3

B.6 ADVANCE UNDERSTANDING ON CEILING INDIRECT COST RATES AND

FINAL REIMBURSEMENT FOR INDIRECT COSTS

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

(b) Reimbursement for indirect costs must be at the lower of the negotiated final provisional/pre- determined rates or the following ceiling rates:

Description 2022 2023 2024 2025 2026 [Rate 1 description to be inserted] % % % % % [Rate 2 description to be inserted] % % % % % [Rate 3 description to be inserted] % % % % %

(c) The Government will not be obligated to pay any additional amount should the final indirect cost rates exceed the negotiated ceiling rates. If the final indirect cost rates are less than the negotiated ceiling rates, the negotiated rates will be reduced to conform to the lower rates.

(d) This advance understanding must not change any monetary ceiling, cost limitation or on established in the contract.

B.7 PAYMENT OF FIXED FEE

a) The Government shall pay the Contractor for performing this contract the fixed fee specified in the Schedule.

b) In accordance with FAR 52.216-8 “Fixed Fee (JUN 2011),” USAID reserves the right to withhold and reserve not to exceed $100,000. The Contracting Officer shall release 75 percent of all fee withholds under this contract after receipt of an adequate certified final indirect cost rate proposal covering the year of physical completion of this contract, provided the Contractor has satisfied all other contract terms and conditions, including the submission of the final patent and royalty reports, and is not delinquent in submitting final vouchers on prior years’ settlements. The Contracting Officer may release up to 90 percent of the fee withholds under this contract based on the Contractor’s past performance related to the submission and settlement of final indirect cost rate proposals.

B.8 COST REIMBURSABLE

The U.S. dollar costs allowable shall be limited to reasonable, allocable and necessary costs determined in accordance with FAR 52.216-7, Allowable Cost and Payment, FAR 52.216-8, Fixed Fee, if applicable, and AIDAR 752.7003 “Documentation for Payment.”

END OF SECTION B

SOL #72011422R00005 SECTION C

C-1

SECTION C - DESCRIPTION/SPECIFICATIONS/STATEMENT OF WORK

USAID RESILIENT COMMUNITIES PROGRAM

C.1. PURPOSE

The purpose of the USAID Local Governance Program is to enhance the effectiveness, accountability, and citizen-responsiveness of target local governments in Georgia.

C.2. BACKGROUND

Georgia’s journey toward meaningful local self-governance has not been linear, nor is it complete. Since regaining independence in 1991, Georgia has experienced periods of both accelerated decentralization and regressive centralization. As a result, after nearly 30 years, true local self-governance, beyond the capital, remains elusive as local governments receive insufficient resources and are delegated incomplete authorities. Nevertheless, with the government’s launch of the new Decentralization Strategy, 2020-2025, expectations are high for Georgia to usher in a new phase of decentralization and, ultimately, deliver the conditions necessary for authentic self-governance at the local level.

History of Decentralization in Georgia Georgia’s local government system was established with the first post-independence multiparty elections in 1991 and consisted of locally elected councils and president-appointed prefects.

Nevertheless, the system collapsed a few months later in late-1991 with the military coup d’état of President Zviad Gamsakhurdia’s government and the advent of civil war in Abkhazia in 1992.

During the ensuing 1992-1998 period, Georgia underwent a period of centralization whereby local governments were appointed by central authorities. Representative local governance was reestablished with local elections in 1998 and 2002 under a new law that created elected local councils (Sakrebulos) at the village, community, town, and city levels. The lowest level of self-governance at the village and community levels was later removed with the introduction of a new local governance law ahead of the 2006 local elections. Ultimately, the period following the Rose Revolution and through the 2008 war was generally marked by strengthened central control over local governments. Nonetheless, following 2010 local elections, Parliament amended the Constitution adding a “Local Self-Governance” chapter which established the main principles of local self-governance. With Constitutional guarantees in place, Parliament developed the 2014 Local Self-Government Code and launched a comprehensive territorial and administrative reform for 2014 local elections. Importantly, the Code ensured the direct election of all mayors as well as councils. Yet, by the 2017 local elections, the 14 new municipalities established by the 2014 reform were remerged into seven and the number of self-governing cities was reduced from 12 to five. During the same year, nonetheless, the Constitution was again amended and, this time, added the subsidiarity and commensurability principles to address ongoing local government concerns of lack of autonomy and resources.

Decentralization Strategy, 2020-2025 In January 2018, Georgia launched a multi-stakeholder process to develop a new decentralization strategy. Following a long two-year formation process, the Decentralization Strategy was adopted in December 2019. The five-year Strategy (2020-2025) aims to implement the principles enshrined in the Constitution and facilitate consistent development of local self-governance in Georgia. The Strategy has three strategic objectives: (1) Increase the role of self-governments in managing a substantial share of public affairs; (2) Ensure adequate material and financial https://matsne.gov.ge/en/document/view/30346?publication=35 https://matsne.gov.ge/en/document/view/30346?publication=35 https://mrdi.gov.ge/pdf/5e468e292b317.pdf/Decentralization-strategy-ENG.pdf https://mrdi.gov.ge/pdf/5e468e292b317.pdf/Decentralization-strategy-ENG.pdf

C-2 resources for local self-governments; and (3) Develop reliable, accountable, transparent, and results-oriented self-government. The three strategic goals are underpinned by eight objectives and 26 priority activities with corresponding targets, detailed in an accompanying monitoring and evaluation (M&E) framework. Implementation will be guided through biennial/annual Actions Plans managed by the Ministry of Regional Development and Infrastructure (MRDI).

Present Challenges to Achieving Meaningful Local Self-Governance Achieving citizen-responsive and meaningful local self-governance is hindered by a quintet of interrelated challenges and their derivatives, including: lack of exclusive and delegated local government authorities, lack of independent financial resources, low human and institutional capacity, weak checks and balances and accountability practices, and underdeveloped citizen participation in local government affairs.

According to the Local Self-Government Code Article 16, local self-governments (LSGs) are afforded 24 separate competencies; however, these are, first of all, insufficient to ensure local autonomy and, second, not fully implemented by the majority of municipalities. A main reason for the latter is the lack of financial resources provided to local governments. Despite a noteworthy reform in 2019 to provide LSGs VAT receipts instead of equalization transfers, which is expected to increase local revenues, LSGs face numerous challenges to boosting revenues, including delays in the transfer of immovable property, agriculture land, and natural resources as well as lack the capacity to effectively mobilize local revenues through local taxes and fees.

Capacity deficits equally challenge LSG ability to deliver effective, economic, and efficient public services to local constituents. Thus, before LSGs are provided additional authorities, they require the resources and capacity to implement existing authorities. Another challenge is the over-concentration of power in the hands of the mayor vis-à-vis local councils, including the difficulties faced by political minority members of local councils in accessing the information required to provide legislative oversight. Additionally, formal citizen engagement mechanisms afford participants little-to-no influence or power and, as such, are largely underutilized, which drives a disconnect between local government and constituent priorities. See Council of Europe’s Local and Regional Democracy in Georgia monitoring report for a detailed discussion of related challenges. The already low percentage of women in elected positions in local governments has seen a worrying decline from 13% several years ago to 11% in 2019, as reported by Geostat.

While LSGs are required to have fully operational gender councils in their sakrebulos, most are not particularly active or impactful, with limited budgets and often lacking political support.

Resource Accountability in Local Government According to the World Bank’s Public Expenditure and Financial Accountability (PEFA) Georgian Municipality Synthesis Report, Georgian municipalities are making progress toward implementing the government’s national Public Financial Management Reform Strategy (2018- 2021) and exhibit numerous strengths including: use of information technology (IT) solutions for budget preparation, execution, personnel and payroll, revenue services, and procurement; public availability of fiscal information; and accounting for revenue, among others. Nevertheless, there are several remaining challenges which add public accountability risk, especially as local government revenues are increased in line with the Decentralization Strategy. Areas for improvement include: legislative scrutiny by Sakrebulos, performance information and evaluation for service delivery, consistency of medium-term expenditure budgeting, public investment management, and public debt management, among others.

Public Perceptions of Local Government According to Caucasus Barometer polling, public trust in local government has declined from 45 percent a decade ago to 27 percent in the most recent poll; nonetheless, this is higher than the 20 https://matsne.gov.ge/en/document/view/2244429?publication=44 https://matsne.gov.ge/en/document/view/2244429?publication=44 https://search.coe.int/cm/pages/result_details.aspx?objectid=09000016808e551a https://search.coe.int/cm/pages/result_details.aspx?objectid=09000016808e551a https://search.coe.int/cm/pages/result_details.aspx?objectid=09000016808e551a http://documents.worldbank.org/curated/en/868341543249717354/132483-WP-P165226-PUBLIC.docx http://documents.worldbank.org/curated/en/868341543249717354/132483-WP-P165226-PUBLIC.docx http://documents.worldbank.org/curated/en/868341543249717354/132483-WP-P165226-PUBLIC.docx https://mof.ge/images/File/strategia/2020/PFMRS%202018-2021%20ENG.pdf https://mof.ge/images/File/strategia/2020/PFMRS%202018-2021%20ENG.pdf https://caucasusbarometer.org/en/ https://caucasusbarometer.org/en/

C-3 percent that express trust in central government. Trust in local government is higher among the minority population, especially for ethnic Armenians, where 60 percent express trust. As for performance, according to National Democratic Institute (NDI) polling in Georgia, 28 percent believe their Mayor’s Office and Local Council is performing well, which is roughly the same share for the central government. Again, perceived performance is higher among minorities.

According to International Republic Institute (IRI) polling in Georgia, only 21 percent of the public believes that local governments represent the interests of municipal residents; rather, the public perceives local governments represent central government, political party, and private interests instead.

Regarding public service delivery, according to NDI polling, the top three national public service problems in local municipalities are roads, cost of utilities, and pollution of the environment. For rural residents, the top problems are roads, water supply, and gas supply, and for urban residents, the top problems are cost of utilities, pollution, and sewage. According to the United Nations Development Programme’s (UNDP) Study on Citizens’ Satisfaction with Public Services (third wave), citizens consistently positively assess the work of public schools (88 percent), availability of electricity (98 percent), availability of preschools (83 percent). Big improvements include tourism development (from 29 percent in 2013 to 49 percent), improved waste management (from 21 to 54 percent), and gasification in rural areas (from 47 to 59 percent), and proper functioning of public transportation (from 73 to 87 percent). Stagnation or regression was observed in the level of civic participation (10 percent admit engaging with local government) and citizen appeals to local government (from 20 to 16 percent), satisfaction with urban planning (consistent at 59 percent) and construction policy (consistent at 55 percent), and awareness of the state preventive vaccination program (from 86 to 79 percent).

Prior USAID Support to Local Self-Government Development in Georgia Between 2000-2009, the USAID/Georgia Mission implemented two back-to-back stand-alone local governance programs, namely, the Local Governance Reform Initiative (LGRI) from 2000- 2004 and the Communities Empowered for Local Decision-making (CELD) Program from 2004- 2009, both implemented by the Urban Institute. LGRI supported decentralization legislative reform, developed municipal and local government professional associations, built local government public administration capacity, and citizen participation in local government decision-making. CELD continued LGRI interventions, including during the post-war period, but with larger geographic coverage, and increased support for local government service provider organizations and raising public awareness for decentralization.

Following the conclusion of the CELD program and during a time of questionable government commitment for decentralization, USAID decided to continue support to local self-governments through its central governance programming. This includes the Good Governance in Georgia (G3) activity, from 2011-2014, implemented by Management Systems International, which focused on supporting decentralization policy reform, building local government capacity for public service improvement planning, and strengthening citizen engagement in local decision-making. Most recently, the Good Governance Initiative (GGI), from 2015-2021, implemented by Tetra Tech ARD, is supporting decentralization policy reform, municipal participation in the Open Government Partnership, as well as transparency and accountability reforms in the Batumi, Kutaisi, and Akhaltsikhe municipalities, including strengthening strategic planning, participatory budgeting, and internal controls.

In the context of renewed government political will for decentralization, USAID plans a stand-alone local government support program to assist the government to implement the new Decentralization Strategy and deliver more citizen-responsive local governance. All https://caucasusbarometer.org/en/datasets/ https://caucasusbarometer.org/en/datasets/ https://www.iri.org/country/georgia https://www.iri.org/country/georgia https://www.ge.undp.org/content/georgia/en/home/library/democratic_governance/citizen-satisfaction-with-public-services-in-georgia--2017.html https://www.ge.undp.org/content/georgia/en/home/library/democratic_governance/citizen-satisfaction-with-public-services-in-georgia--2017.html https://www.tetratech.com/en/projects/georgia-good-governance-initiative https://www.tetratech.com/en/projects/georgia-good-governance-initiative

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USAID/Georgia support to the Decentralization Strategy will be implemented under the local government support program.

Development Partner Programming with Local Government in Georgia USAID is committed to ensuring strong donor coordination, cooperation, and complementarity of efforts within the scope of the Decentralization Strategy. There are other donors in Georgia providing development assistance to LSGs across numerous sectors. Four main development partners are supporting the decentralization and local governance strengthening agenda. Below is a brief description of their local governance related programming.

The World Bank is supporting: the Second Regional and Municipal Infrastructure Development Project ($59 million, 2014-2021) to improve the efficiency and reliability of targeted municipal services and infrastructure; the Third Regional Development Project ($75 million, 2015-2022) to improve services and infrastructure to increase regions-based tourism; the Innovation, Inclusion, and Quality Program ($128 million, 2019-2026) to expand access to preschool education and general education quality; as well as the Improving Preschool Education in Georgia through Social Accountability Processes program ($680 thousand, 2017-2020) to empower citizens to improve resource allocation to pre-school education services. The EU, through Ecorys, is implementing the Mayors for Economic Growth program ($14 million, 2017-2020) to support municipalities to become active facilitators for economic growth and job creation. UNDP is implementing the Fostering Decentralization and Good Governance program ($4 million 2018- 2023) which supports local governance policy reform, human and institutional capacity development, service provision capabilities, and citizen participation in local policymaking as well as the Fostering Regional and Local Development program ($9.5 million, 2017-2021) which builds the competence of LSGs to serve as catalysts for stimulating regional and local economies.

Finally, GIZ is implementing the forthcoming Good Governance for Local Development in the South Caucasus program ($17.3 million, 2020-2023), which will build the capacity of local public institutions in Georgia, Armenia, and Azerbaijan to provide citizen-oriented services.

Development Challenge The overarching problem facing local governments is that fractured and incomplete decentralization has resulted in weak local governance and poor-quality public service delivery at the local level, which in turn is hindering Georgia’s socioeconomic and democratic development.

Within this broad contextual challenge, USAID looks to address the following specific problem set:

● Weak subnational public administration and accountability practices limit the ability of

LSGs to effectively, transparently, and responsibly govern and implement competencies prescribed by Georgia’s LSG Code;

● LSGs lack the resources and capacity to deliver inclusive, accessible, and citizen-responsive public services; and

● Citizens are insufficiently engaged and do not hold LSGs accountable

● Decentralization efforts have not transferred sufficient autonomy, authority, or resources to local self-governments (LSGs) to realize meaningful self-governance.

C.3 STRATEGIC ALIGNMENT AND THEORY OF CHANGE

USAID/Georgia’s 2020-2025 Country Development Cooperation Strategy (CDCS) outlines three Development Objectives (DO) that: 1) strengthen resilience to external malign influence; 2) consolidate fragile democratic gains through enhanced citizen responsive governance; and 3) https://projects.worldbank.org/en/projects-operations/project-detail/P147521 https://projects.worldbank.org/en/projects-operations/project-detail/P147521 https://projects.worldbank.org/en/projects-operations/project-detail/P147521 https://projects.worldbank.org/en/projects-operations/project-detail/P150696 https://projects.worldbank.org/en/projects-operations/project-detail/P150696 https://projects.worldbank.org/en/projects-operations/project-detail/P168481 https://projects.worldbank.org/en/projects-operations/project-detail/P168481 https://projects.worldbank.org/en/projects-operations/project-detail/P168481 https://projects.worldbank.org/en/projects-operations/project-detail/P161435 https://projects.worldbank.org/en/projects-operations/project-detail/P161435 https://projects.worldbank.org/en/projects-operations/project-detail/P161435 https://www.m4eg.eu/en/about-m4eg/ https://www.m4eg.eu/en/about-m4eg/ https://www.ge.undp.org/content/georgia/en/home/projects/decentralisation-good-governance.html https://www.ge.undp.org/content/georgia/en/home/projects/decentralisation-good-governance.html https://www.ge.undp.org/content/georgia/en/home/projects/fostering-regional-and-local-development-in-georgia.html https://www.ge.undp.org/content/georgia/en/home/projects/fostering-regional-and-local-development-in-georgia.html

C-5 provide inclusive high-value employment opportunities through increased economic growth. This Activity directly advances DO 2. In particular, it is a primary contributor to Intermediate Result 2.2, which aims to increase the accountability and accessibility of governance institutions, in this case that of local self-governments. Consequently, this Activity is responsible for the achievement of all three sub-Intermediate Results (Sub-IRs) that: increase public administration effectiveness and oversight (Sub IR 2.2.1); increase municipal government capacity (Sub IR 2.2.2); and improve equal access to targeted services (Sub IR 2.2.3).

The Activity’s objectives and expected results are derived from the following theory of change:

Theory of Change: IF national commitment, legislative frameworks, institutional capacities, and partnerships for decentralization in Georgia are strengthened, AND IF the capacity and commitment of local self-governments to effectively and accountably govern and provide accessible, inclusive, and citizen-responsive service delivery is improved, AND IF citizens are engaged and empowered to ensure local government accountability THEN local self-governments will be more accountable and responsive to citizen needs.

C.4. SCOPE OF WORK

As stated above, the purpose of this Activity is to enhance the effectiveness, accountability, and citizen-responsiveness of target local governments in Georgia. In order to achieve its purpose, the activity consists of four objectives, or components, which respond to the identified problem set.

The Activity has been designed specifically to: (a) support central-level institutions to manage implementation of the Decentralization Strategy (Objective 4) and (b) strengthen accountability across the local governance ecosystem (including across branches of government and across governance functions) (Objectives 1, 2, & 3).

Objective 1: Subnational public administration and accountability systems improved.

Objective 2: Subnational capacity to deliver inclusive, accessible, and citizen-responsive public services, in alignment with national standards, enhanced.

Objective 3: Communities, including CSOs, businesses, youth and other individuals, engaged and empowered to hold subnational governments accountable.

Objective 4: National commitment, legislative frameworks, institutional capacities, and partnerships for decentralization strengthened.

The following are the expected results that the Contractor must deliver:

Objective 1: Subnational public administration and accountability systems improved.

● Result 1.1: Municipal councils’ (Sakrebulos) capacity to monitor and provide oversight of the municipal executive (Mayor’s Offices) increased.

● Result 1.2: LSG systems, tools, and capacity for planning, management, implementation, and

C-6 monitoring and evaluation strengthened, including those needed to effectively engage with the private sector.

● Result 1.3: Operation of public finance management systems of LSGs improved as a result of implementation of national Public Financial Management Strategy reforms including implementation of International Public Sector Accounting Standards (IPSAS) .

● Result 1.4: LSG capacity to mobilize new revenue sources and utilize existing resources in more effective, efficient, and economic ways enhanced.

● Result 1.5: LSG capacity to proactively and substantively engage citizens in participatory, oversight, and co-creation mechanisms, including through open government initiatives, increased.

Objective 2: Subnational capacity to deliver inclusive, accessible, and citizen-responsive public services, in alignment with national standards, enhanced.

● Result 2.1: LSG capacity to collect, track, analyze, and use public service delivery data to improve evidence-driven management of targeted public services strengthened.

● Result 2.2: LSG ability to mobilize private sector partnerships and investment for improved service delivery strengthened.

● Result 2.3: LSG capacity and commitment to equitable access to quality public services for minority and marginalized communities expanded.

● Result 2.4: Intermunicipal and intragovernmental coordination for effective subnational public service delivery improved.

● Result 2.5: LSG capacity and commitment to employ social accountability models and utilize citizen feedback strengthened.

Objective 3: Communities, including CSOs, businesses, youth and other individuals, engaged and empowered to hold subnational governments accountable.

● Result 3.1: Community understanding, appreciation, and capacity for engaging LSGs increased.

● Result 3.2: Communities routinely utilize social accountability and transparency mechanisms to demand citizen-responsive local governance and service delivery.

Objective 4: National commitment, legislative frameworks, institutional capacities, and partnerships for decentralization strengthened.

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● Result 4.1: Capacity of MRDI and other central-level stakeholders to implement, manage, and oversee the Decentralization Strategy and…