72012120R00007 FULL ANNOUNCEMENT HOVERLA.pdf

Issuance Date: September 4, 2020 Questions Due Date and Time: September 17, 2020, 16:00 Kyiv Local Time Closing Date and Time: October 29, 2020, 16:00 Kyiv Local Time

SUBJECT: Request for Proposal (RFP) No.: 72012120R00007

USAID Governance and Local Accountability (HOVERLA) Activity

The United States Government, represented by the U.S. Agency for International Development (USAID), Regional Mission for Ukraine and Belarus, is seeking proposals from qualified and eligible organizations to implement the USAID Governance and Local Accountability (HOVERLA) Activity as fully described in the attached RFP. USAID/Ukraine anticipates awarding one five (5) year, cost plus fixed fee, completion type contract as a result of this solicitation. The estimated range for the required services detailed in Section C of this RFP is between $72 and $75 million.

Proposals will be accepted from eligible organizations. The geographic codes for this procurement are 110 and 937. USAID will conduct this procurement through full and open competition under which any type of organization (including large or small commercial [for profit] firms, educational institutions or non-profit organizations) is eligible to compete. The North American Industry Classification System (NAICS) code for this acquisition is 541990 (All Other Professional, Scientific, and Technical Services).

Offerors are encouraged to read the entire solicitation. Special attention must be paid to Section L - Instructions, Conditions, and Notices to Offerors or Respondents, and Section M - Evaluation Criteria. Any questions related to this RFP must be submitted in writing via email to Ms. Marina Orlova at morlova@usaid.gov and me at dharter@usaid.gov by the time and date specified above. No questions will be accepted after the specified date. If questions are received, the responses to which affect the solicitation, or if any changes are made to the RFP, this solicitation will be amended. This RFP and any amendments to this solicitation will be issued and published on beta.SAM.gov. Offerors are encouraged to check this website periodically. USAID bears no responsibility for data errors resulting from transmission or conversion processes. Only electronic proposals will be accepted. Proposals must be sent to morlova@usaid.gov and dharter@usaid.gov by the due date and time specified above. No other forms of submission will be accepted.

The Government reserves the right to award a contract without discussions based upon the evaluation of an Offeror's technical and cost proposal in accordance with this RFP. Therefore, an Offeror's initial technical and cost proposal should contain its best terms to meet requirements and the objectives of the Statement of Work.

The RFP does not obligate the United States Government to award a contract nor does it commit the Government to pay any cost incurred in preparing and submitting a proposal. In addition, the Government reserves the right to reject any and all offers, if such action is considered to be in the best interest of the Government. Award of a contract under this RFP is subject to the availability of funds and other approvals.

Thank you for your interest in USAID programs.

Sincerely, /s/

Daniel E. Harter Regional Contracting Officer mailto:morlova@usaid.gov mailto:dharter@usaid.gov http://beta.sam.gov/ mailto:modlova@usaid.gov mailto:dharter@usaid.gov

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

UNDER DPAS (15 CFR 700)

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

SEALED BID (IFB)

NEGOTIATED (RFP)

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

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

9. Sealed offers in original and _____________________________ copies for furnishing the supplies or services in the Schedule will be received at the place specified in Item 8, or if hand carried, in the depository located in until local time _______________________ (Hour) (Date)

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

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

AREA CODE NUMBER EXT.

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

PART I - THE SCHEDULE PART II - CONTRACT CLAUSES

A SOLICITATION/CONTRACT FORM I CONTRACT CLAUSES

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

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

D PACKAGING AND MARKING PART IV - REPRESENTATIONS AND INSTRUCTIONS

E INSPECTION AND ACCEPTANCE

F DELIVERIES OR PERFORMANCE

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

H SPECIAL CONTRACT REQUIREMENTS M EVALUATION FACOTRRS FOR AWARD

K REPRESENTATIONS, CERTIFICATIONS AND OTHER

STATEMENTS OF OFFERORS

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

12. In compliance with the above, the undersigned agrees, if this offer is accepted within _210_ calendar days (60 calendar days unless a different period is inserted by the Offeror) from the date for receipt of offers specified above, to furnish any or all items upon which prices are offered at the price set opposite each item, delivered at the designated point(s), within the time specified in the schedule.

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

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

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

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

ADDRESS OF

OFFEROR

(Type or print)

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

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

ABOVE - ENTER SUCH ADDRESS IN SCHEDULE

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

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

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

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

26. NAME OF CONTRACTING OFFICER (Type or print)

Daniel E. Harter

27. UNITED STATES OF AMERICA 28. AWARD DATE

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

(Signature of Contracting Officer)

(REV. 9-97)

10. FOR INFORMATION CALL:

11. TABLE OF CONTENTS

STANDARD FORM 33

SOLICITATION, OFFER AND AWARD N/A

SOLICITATION

OFFER (Must be fully completed by Offeror)

AWARD (To be completed by Government)

72012120R00003 X

09/04/2020 REQ-121-20-000043

USAID/Ukraine/Regional Contract Office Department of State 5850 Kyiv Pl.

Washington D.C. 20521-5850

16:00 (Kyiv LT) 10/29/2020

Ms. Marina Orlova Administrative CO morlova@usaid.gov

See Attached Table of Contents

X 1

X 3-5

X 6-23

X 24-25

X 26-27

X 28-44

X 45-49

X 50-83

X 84-114

X 115

X 116-124

X 125-144

X 145-148

USAID/Ukraine/Regional Contract Office

USAID/Ukraine/Office of Financial Management

Request for Proposal 72012120R00007

PART I - THE SCHEDULE

SECTION B - SUPPLIES OR SERVICES AND PRICE/COSTS

B.1 PURPOSE

The purpose of this contract is to acquire technical assistance services to advance self-reliant local governance in Ukraine, including legislative reforms, participatory strategic planning methodologies, service improvement, local economic development, civil society engagement, and capacity building of sub-national government entities as specified in the Activity's Statement of Work below. These services would facilitate the creation of Ukrainian local governance systems and processes that are more self-reliant, accountable to citizens, inclusive and able to provide services through “USAID Governance and Local Accountability (HOVERLA) Activity” in Ukraine as described in detail in Section C. STATEMENT OF WORK.

B.2 CONTRACT TYPE

This is a cost plus fixed fee (CPFF) completion contract. For the consideration set forth in the contract, the Contractor must provide the results and deliverables described in Section C and Section F of this contract.

The Contractor must also comply with all other contract requirements.

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

(a) The estimated cost for the performance of the work required hereunder, exclusive of fixed fee, if any, is __________ [ TBD ]. The fixed fee, if any, is _________ [ TBD ]. The estimated cost plus fixed fee, if any, is ___________ [ TBD ].

(b) Within the estimated cost plus fixed fee (if any) specified in paragraph (a) above, the amount currently obligated and available for reimbursement of allowable costs incurred by the Contractor (and payment of fee, if any) for performance hereunder is _________ [ TBD ]. The Contractor shall not exceed the aforesaid obligated amount.

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

B.4 CONTRACT BUDGET

(a) Cost Category Amount Total Estimated Cost TBD Fixed Fee TBD

Total Estimated Cost Plus Fixed-Fee TBD

(b) The inclusion of any costs in the above cost categories does not obviate the requirement for prior approval by the Contracting Officer of cost items designated as requiring prior approval by any of the terms and conditions of this contract, including the applicable cost principles (see FAR § 52.216-07, “Allowable Cost and Payment”); nor does it constitute a determination of allowability by the Contracting Officer of any item of cost, unless specifically stated elsewhere in this contract.

Also, these amounts may not be adjusted without a written modification signed by the Contracting Officer. The Contractor must not bill any amounts against this contract in excess of the amounts specified for each line item.

(c) The Contractor agrees to furnish data that the Contracting Officer’s Representative (COR) may request on costs expended or accrued under this contract.

B.5 INDIRECT COSTS

(a) Pending establishment of revised provisional or final indirect costs, USAID will reimburse allowable indirect costs on the basis of the following negotiated provisional or predetermined rates and the appropriate bases pursuant to the Contractor’s current executed Negotiated Indirect Cost Rate Agreement:

Description Rate Base Type Period % 1/ 1/ 1/

1/Base of Application:

Type of Rate:

Period:

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

B.6 COST REIMBURSABLE

The U.S. dollar costs allowable will 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,” FAR § 52.232-20, “Limitation of Cost,” and FAR § 52-232-22, “Limitation of Funds,” if applicable, and AIDAR 752.7003, “Documentation for Payment.”

In addition, the requirement and conditions concerning estimated cost and funding apply as detailed in FAR § 52.232-22, Limitation of Funds, incorporated by reference in Section I of this contract.

B.7 PAYMENT OF FIXED FEE

USAID will pay a proportion of the contractor’s fixed fee each month pursuant to FAR 52.216-8, Fixed Fee, upon the receipt of a proper invoice by the Office Financial Management (OFM) located in USAID/Ukraine.

B.8 MULTI-YEAR CONTRACT AND CANCELLATION CEILING

This contract is considered non-severable, and is therefore a multi-year contract as defined in FAR 17.103.

Therefore, this contract is subject to the requirements of FAR 17.106.

a. Performance under this contract during the second and subsequent program years is contingent upon the appropriation of funds. All program years except the first are subject to cancellation. Cancellation shall occur by the dates specified below if the Contracting Officer:

1. Notifies the Contractor that funds are not available for contract performance for any subsequent program year; or

2. Fails to notify the Contractor that funds are available for performance of the succeeding program year.

b. Cancellation Ceiling:

This is a CPFF type contract where the Contractor is authorized to be reimbursed for all costs which are allowable in accordance with FAR 52.216-7, “Allowable Costs and Payment.” Therefore, the

Contractor will not incur any costs which would have been amortized over the life of the contract should the contract be cancelled in accordance with FAR 52.217-2.

The Government's liability for cancellation charges shall not exceed $0. This amount will be reduced in accordance with FAR 17.106-1(c)(1) at the conclusion of each program year, as follows:

Program Year Cancellation Date Cancellation Ceiling Year 1: 2021/2022 N/A N/A Year 2: 2022/2023 MONTH TBD, 2022 TBD Year 3: 2023/2024 MONTH TBD, 2023 TBD Year 4: 2024/2025 MONTH TBD, 2024 TBD Year 5: 2025/2026 MONTH TBD, 2025 TBD

[END OF SECTION B]

SECTION C – DESCRIPTION/SPECIFICATIONS/STATEMENT OF WORK

USAID GOVERNANCE AND LOCAL ACCOUNTABILITY (HOVERLA) ACTIVITY

C.1 PURPOSE AND SCOPE

The purpose of this activity is to facilitate the creation of Ukrainian local governance systems and processes that are more self-reliant, accountable to citizens, inclusive and able to provide services. The Activity has three objectives:

Objective 1: Ukraine's system of local self-governance is increasingly institutionalized and effective

Objective 2: More self-reliant subnational governance Objective 3: Citizens play an increasingly influential role in local governance processes

C.2 BACKGROUND AND CONTEXT

The decentralization process initiated following Ukraine’s Euromaidan protests and Revolution of Dignity --which is perhaps the most successful of the country’s post-2014 reform agenda -- has changed the structure of the state and relationship between citizens and government. Decentralization reform aims to shift governing power, funding, and management responsibilities from the central Government of Ukraine (GOU) to new structures of sub-national local self-government. Following the events of 2013-2014, Ukraine accelerated the decentralization process in line with commitments under the European Charter of Local Self-Government (ECLSG).1 The reform devolved powers to consolidated territorial communities (CTCs) so that they could provide expanded local level public services through new authorities including local economic and infrastructure development, authorities akin to the country’s oblast (province) significant cities (OSCs).

Matching this delegation of powers, the GOU also fiscally decentralized over 40% of the total state budget to local governments, increasing overall local funds to UAH 114.6 billion ($4.29 billion) in 2020.2 Together, these actions expanded the enabling environment and resource base for local governing self-reliance, unlocking the ability of local governments and citizens to inclusively define, sustainably resource, and effectively implement solutions to their own development challenges.

Decentralization is not yet complete. Until mid-2020, the reform proceeded on a voluntary basis, and with the passage of Law 2653, the GOU empowered the Cabinet of Ministers to complete the community consolidation process before nationwide local elections scheduled in October. The GOU anticipates that there will be approximately 1,450 communities by the end of the consolidation/amalgamation phase, including both CTCs and OSCs.3 Consolidation is also slated for the mid-level of Ukraine’s local government, known under the pre-reform system as the rayon level. It is yet unknown what form of governance will exist at this level, if any at all, and whether there will be elected councilors and/or only presidentially-appointed prefects and deconcentrated officials from line ministries. Beyond rayons, Ukraine’s 24 oblasts (province level entities) will remain the same in terms of their boundaries but will receive new administrative structures, currently discussed as being akin to the prefecture model of subnational governance common in a number of European countries. The actual model has yet to be agreed.

The many newly established sub-national government entities need more defined scopes of work and to be staffed and empowered to act on their mandates. Capacity-building is needed to attain appropriate operational capabilities for local officials and for staff to perform their delineated responsibilities Members of existing local government themselves acknowledge the relatively low level of capacity and the need for professional

1 CETS 122 - European Charter of Local Self-Government 2https://decentralization.gov.ua/uploads/attachment/document/588/%D0%86- %D0%BA%D0%B2%D0%B0%D1%80%D1%82%D0%B0%D0%BB_2020.pdf (please, copy and paste this link in Chrome) 3 The finalized title of these entities may still be in flux.

https://rm.coe.int/CoERMPublicCommonSearchServices/DisplayDCTMContent?documentId=090000168007a088 https://decentralization.gov.ua/uploads/attachment/document/588/%D0%86-%D0%BA%D0%B2%D0%B0%D1%80%D1%82%D0%B0%D0%BB_2020.pdf https://decentralization.gov.ua/uploads/attachment/document/588/%D0%86-%D0%BA%D0%B2%D0%B0%D1%80%D1%82%D0%B0%D0%BB_2020.pdf development4 and GOU capacity assessments confirm low self-sufficiency, particularly among CTCs, and a need for more effective management decision-making and professional development for local council members and executives.5 National-level entities also require greater expertise and human resources. The 2020 local elections are expected to complicate matters further by reshuffling mayors, council members and executive officers across the country. Fiscal decentralization has also been a continuing capacity challenge with established local governments perennially underfunded for their delegated mandates, including budget underperformance6 and the underfunding of sectoral subsidies, particularly medical subsidies that were affected in 2020 by the need to respond to the COVID-19 pandemic.7

Citizen demand has historically been a critical source of commitment to reform in Ukraine, particularly when manifested through the country’s diverse, effective national-level civil society organizations (CSOs). At the community level, however, established CSOs are often weak and citizen engagement in local governance limited. Citizen participation at the local government level is particularly weak, as described in USAID’s Ukraine Civil Society Sectoral Assessment.8 Civil society development across Ukraine’s oblasts is also uneven, with striking disparities in capacity between Kyiv-based and region-based CSOs.9 Truly self-reliant local governance will require citizens and civic groups to adapt, requiring new capacities like resident participation in local decision-making, civic sharing of responsibility for delivering results with local governments, and ensuring effective local government oversight.

C.3 RELATION TO USAID STRATEGY

This Activity will contribute to USAID/Ukraine’s Country Development Cooperation Strategy (CDCS) for 2019-2024, Development Objective 3 (DO3) Democratic Governance Strengthened and its associated Intermediate Results (IRs).10 The Activity is part of USAID/Ukraine’s Democratic Governance Project, which encompasses activities contributing to CDCS DO3 and its IRs.

DO3: Democratic Governance Strengthened

IR 3.1: Citizens engaged in good governance Sub-IR 3.1.1: Increased citizen awareness, advocacy, and oversight of reform processes Sub-IR 3.1.2: Strengthened civil society organizational capacity

IR 3.2: Government more responsive and accountable to citizens Sub-IR 3.2.2: Local government more efficient and accountable to citizens

4 http://www.slg-coe.org.ua/wp-content/uploads/2019/07/TNA_Ukraine-2018-2019-Final-Report_ukr_F.pdf 5 https://zakon.rada.gov.ua/laws/show/214-2015-%D0%BF 6 https://www.epravda.com.ua/publications/2020/02/20/657213/ 7 https://decentralization.gov.ua/news/12407 (please, copy and paste this link in Chrome) 8 https://pdf.usaid.gov/pdf_docs/PA00TDQ5.pdf; In 2019 only 7% of citizens reported engagement in civic activism in the previous year.

9 Op. cit.

10 https://www.usaid.gov/ukraine/cdcs http://www.slg-coe.org.ua/wp-content/uploads/2019/07/TNA_Ukraine-2018-2019-Final-Report_ukr_F.pdf https://zakon.rada.gov.ua/laws/show/214-2015-%D0%BF https://www.epravda.com.ua/publications/2020/02/20/657213/ https://decentralization.gov.ua/news/12407 https://pdf.usaid.gov/pdf_docs/PA00TDQ5.pdf https://www.usaid.gov/ukraine/cdcs

Journey to Self-Reliance (J2SR). The Contractor shall support priority USAID goals of advancing self-reliance by supporting local governments to more effectively and transparently use expanded authorities and resources as they plan and implement effective development solutions with communities. In a country of nearly 40 million citizens and over 1,000 CTCs, substantial focus on building the capacity and commitment of local governments to transparently and effectively use resources where they are most likely to impact citizens’ lives as well as citizens’ capacity for local government oversight and civic engagement in local transformational processes is essential to successful implementation of and public confidence in this reform.

With Ukraine’s long-term self-reliance grounded in its integration with the European Union, the Activity shall ensure that further legal/regulatory reforms in the sector are aligned with the ECLSG and the Ukraine-EU Association Agreement, as well as broader structural reforms (such as land and tax reform) that will help Ukraine break free of its legacy of systemic corruption and increase the resource base for self-reliant development.

Private Sector Engagement (PSE). A key sub-objective of this Activity is to increase the effectiveness of local government in promoting local economic development and own-source revenue generation. Strategic plans and service delivery improvements supported by this Activity at the local level will heavily engage and mobilize the resources of the private sector, in particular small and medium-size enterprises that may be more active at the local level. Additionally, an important component of these strategic plans will be local economic development, through which USAID will bolster the commitment and capacity of local governments to develop market-based solutions to their own development challenges which can be sustained beyond the life of this Activity.

Countering Malign Kremlin Influence (CMKI). Pervasive Russian disinformation and Kremlin-driven negative narratives about Ukraine and its reform trajectory are a key element of Russia’s hybrid war and a major brake on Ukraine’s further self-reliant development. Decentralization impacts nearly every Ukrainian and, despite its reputation for success, still enjoys relatively low public support or awareness. By advancing systemic policy reforms with nationwide impact coupled with service delivery improvements at the local level, the Contractor shall ensure publicly-recognized improvements through decentralization reform. Public engagement with democratically-elected local leaders who improve citizens’ lives is a compelling alternative to the Russian Federation’s centralized “power vertical.”

C.4. COLLABORATION

C.4.1 Collaboration with Other USAID Activities

The Contractor shall substantially collaborate with and/or expand tools/approaches successfully used by USAID’s current decentralization support activities, Decentralization Offering Better Results and Efficiencies (DOBRE) and Policy for Ukraine Local Self-Governance (PULSE). While the nature of this collaboration and transfer of best practices will be different for each of these partners, the Contractor shall leverage these substantial USAID investments in decentralization reform through each of these activities in its approach.

At the national level, PULSE and implementing partner the Association of Ukrainian Cities (AUC) has a track record of effective advocacy around the interests of cities and communities, substantively shaping decentralization legislation and regulations. The Contractor shall leverage relationships and approaches effectively used by AUC and other local governance associations at the national and sub-national level in its approach to Objective 1. As DOBRE has engaged on national-level policy development and capacity building starting in mid-2020, helping fill a critical gap in legislative assistance during the pre- and post- local elections period, the Contractor shall also leverage DOBRE best practices in its implementation of Objective 1, in particular approaches to communicating and mainstreaming successful local governance approaches at the CTC/city level to the sub-national and national levels.

At the community level, DOBRE and implementing partner Global Communities has piloted a number of effective methodologies for engaging local governments, specifically CTCs. AUC has regional offices that USAID has supported through the provision of consultants that have worked providing technical assistance and advice to CTCs and cities. The Contractor shall substantially leverage and expand best approaches to building capacity and measuring progress. As intensive assistance to target local governments is within the scope of the Activity (Objective 2) as well as part of DOBRE’s continuing efforts, the Contractor shall engage in intensive coordination upon award regarding geographic scope, approach, and opportunities for maximizing USAID resources.

Since local governance reform entails decentralization of service delivery and increased local autonomy in several sectors, i.e., health, education, urban development, agricultural development and others, the Contractor shall work with respective line ministries to provide them with the information and expertise they may be lacking to implement cross-sectoral changes required as part of decentralization reform. The Contractor shall collaborate with the Mission’s portfolio of programs in economic growth, health, and democratic governance, and in any other sectors that are directly related to the decentralization of services to the local level. Current and/or planned activities requiring collaboration include:

● Ukraine Responsive and Accountable Politics (U-RAP)

● Agriculture Growing Rural Opportunities (AGRO)

● USAID Health Reform Support Activity

● Ukraine National Identity Through Youth (UNITY) Activity

● Support to Anti-Corruption Champion Institutions (SACCI)

● Transparency and Accountability in Public Administration and Services (TAPAS)

● Enhance Non-Governmental Actors and Grassroots Engagements (ENGAGE)

● Ukraine Civil Society Sectoral Support Activity

● Ukraine Confidence Building Initiative (UCBI) II

● USAID Democratic Governance East (DG East)

● Ukraine Economic Resilience Activity (ERA)

● Competition Law and Policy for Ukraine (CLP)

● USAID Transformation Communications

● The Media Program in Ukraine

● Human Rights in Action

C.4.2 Collaboration with Other Development Partners

The Contractor shall coordinate extensively with relevant efforts funded by other donors and shall propose to the USAID COR how to adapt contract activities over time to match with the changing character of these projects. In Ukraine, these other actors include assistance providers that participate in the Donor Decentralization Board like the European Union (EU) and its large Ukraine - Local Empowerment, Accountability, and Development Program (U-LEAD), the Japan International Cooperation Agency (JICA), United Nations Development Programme (UNDP), the World Bank, European Investment Bank (EIB), International Organization for Migration (IOM), and others. The depth of coordination will depend on the relevance of the project in question. However, the Contractor shall conduct a broad range of coordination efforts, from joining coordination bodies such as the Decentralization Donor Board, to regular consultations, to joint planning of relevant interventions. The Contractor shall coordinate appropriately and report on that coordination on a quarterly basis. The full range of donor-supported decentralization activities with which the Contractor shall coordinate are specified on Ukraine’s centralized decentralization portal (decentralization.gov.ua).11

The Contractor shall further coordinate with the following GOU entities:

● Ministry of Communities and Territories Development (MCDT)

● Verkhovna Rada of Ukraine, particularly the Committee on State Building, Local Governance, Regional and Urban Development

● Ministry of Education and Science

● Ministry of Youth and Sports

● Ministry of Health

● Ministry of Infrastructure

● Ministry of Digital Transformation

● Ministry of Economic Development, Trade and Agriculture

● Ministry of Finance

● Ministry of Reintegration and Temporary Occupied Territories

● Ministry of Culture and Information Policy

● State Geo Cadaster

● State Fiscal Service

● State Agency on Tourism Development

● Oblast State Administrations and/or their successors

● Rayon State Administrations and/of their successors

● Oblast Significant City Administrations and/or their successor bodies

● Consolidated Territorial Communities, councils, executive bodies, etc.

● Other local and medial government entities as appropriate

The Contractor shall work with Ukrainian government, non-government and private sector partners at the national, rayon, oblast, city and consolidated territorial community (CTC) levels as appropriate, including both sub-national government entities as well as local branches of national executive bodies.

C.5 ACTIVITY OBJECTIVES, ACTIVITIES AND EXPECTED RESULTS

This section contains Activity Objectives and Sub Objectives, expected results, and illustrative activities that could be implemented as part of the Contractor’s approach to achieve these results.

The objectives described below are based on the following theory of change:

IF Ukraine's system of local self-governance is increasingly institutionalized and effective; and targeted subnational governance is more self-reliant, demonstrating increasing capacity and commitment to community development; and Ukraine’s citizens play an increasingly influential role in local governance

11 https://donors.decentralization.gov.ua/projects (please, copy and paste this link in Chrome) https://donors.decentralization.gov.ua/projects processes; THEN Ukraine’s local governance systems and processes will be more self-reliant, accountable to citizens, inclusive, and able to provide services; and democratic governance in Ukraine will be strengthened.

BECAUSE

● A solid foundation for completion of local governance reform was laid in the previous five years with decentralization reform implementation;

● A majority of people support decentralization reform because they see and hear about successes of their peers in other communities or experience them in their own communities feeling the improvement of quality of services; and

● The current administration has advocated moving the reform forward with an interest in translating associated successes into further political will.

Objective 1 - Ukraine's system of local self-governance is increasingly institutionalized and effective

A complete set of legislation and ultimately constitutional amendments are necessary to finalize the framework definition of the new levels of subnational government in Ukraine. The Contractor shall assist in processes associated with defining scopes of responsibility and establishing systems of financing to enable sub-national government entities (CTCs, cities, etc.) to execute their mandates. Areas for engagement include but are not limited to adjustments to the tax code; land code; Law on Public Servants in Local Communities;

the election code; the Local Government Law; Law on Local State Administrations; Law on Concessions; the budget code; Spatial Law; and a Law on Oversight and/or Prefects. All legislation that the GOU drafts should be in as much accordance with the ECLSG as possible. Legislative achievements to date could be unraveled by regressive legislation or de-facto attempts by unsupportive national/subnational leadership to re-centralize power and resources. The Contractor shall identify and support advocacy to ensure that existing gains remain over the period of contract performance.

The Contractor shall engage to complete, implement, refine and assist in the institutionalization of Ukraine’s devolved system of government so that it is effective, sustainable, and self-reliant. Work shall include consideration and support for laws drafted and/or modified with detailed layers of regulations. Associated secondary legislation outlining the implementation and institutionalization of framework legislation is in many cases still only in conceptual form and is also subject of this contract’s performance. With formal decentralization realized, further territorial-administrative consolidation and/or realignment shall be needed to address unexpected consequences of the changing map.

As a unitary state, alongside the devolution of powers through decentralization, Ukraine is seeking to balance devolution with central government oversight to ensure that local government decisions are in line with constitutional requirements and state policy in areas such as national sovereignty and defense. The Contractor shall support GOU stakeholders with technical assistance regarding models for a future framework to balance central and local authorities, in line with Ukraine’s commitments under the ECSLG and international best practice.

● Sub-Objective 1.1 - The national constitutional, legal, and regulatory framework for decentralization is more effective

● Sub-Objective 1.2 - Sub-national regulatory policies and administrative/territorial divisions are better defined and implemented

● Sub-Objective 1.3 - National oversight of local government actions increasingly reflects European standards.

Possible local partners: Cabinet of Ministers; Ministry of Communities and Territories Development (MCTD); Central Office of Reform; sectoral ministries; National Agency for Civil Service; parliamentary committee on Committee on State Building, Local Governance, Regional and Urban Development; local government associations; local consultants.

Illustrative Activities:

● Provide technical assistance to national-level actors involved in legislative and policy drafting, e.g., parliamentary committees, the President’s Office, and Cabinet of Ministers

● Coordinate with associated GOU entities and other actors (donors, etc.) to create a national level Local Governance Reform Action Plan with goals, a timeline and responsible entities including a monitoring plan and issues troubleshooting

● Similar action plans established for improving targeted sub-national governance, service provision and local economic development

● Support to the management and implementation of associated local governance action plans

● Provide support through technical assistance to sectoral ministries (e.g. the MCTD) through short and/or long term technical assistance

● Technical assistance on the amalgamation and rayon reorganization processes should this be needed with assistance in policy and mapping

● Support fiscal decentralization reform resulting in the reduction of unfunded mandates for CTCs, cities and other associated local government entities (e.g. the median level of government)

● Support to legislative work to increase own-source revenues for local governments through taxes and fees, etc.

● Support civic groups working to influence, alter, or expand the nature and direction of existing policy

● Provide support coordination associated with line ministries and the implementation of sectoral decentralization in the areas of health and education

● Tailored technical assistance to Ukraine’s legislature and local representative bodies; executives of all levels including national government; and associated line ministries, legislators and technical staff

● Work to expand local government capacities through other country decentralization experience;

provision of professional development opportunities; experience sharing via professional exchanges within the country and internationally

● Encouraging/facilitating diverse and inclusive multilevel cross-sectoral dialogue with the aim of increasing the overall efficiency of the country’s local-level governance systems

Expected Results:

● National level legal framework for Ukraine’s decentralized governance system substantially complete

● The administrative and territorial division of Ukraine is more defined, mapped and better implemented with key stakeholder input

● Local self-governance oversight systems increasingly reflect European standards

● More effective legal and regulatory framing for sectoral decentralization, e.g. health and education

● Substantial improvements in the quantity and quality of subnational and local level ordinances outlining key mandates, structures and responsibilities at the sub-national level

● Increasingly detailed and appropriate scopes outlined for sub-national governing responsibilities

● Increased use of international best practices in Ukrainian laws and regulations associated with local government

● The quality of Ukraine’s local government legal and regulatory framework increasingly supports self-reliance at the local level

● Systems established for appropriately financing sub-national government mandates and effective regional development

● Effective steps taken to guard against legislative backsliding

Objective 2 - More self-reliant subnational governance

New political leaders at the local level are starting to understand that they, in partnership with their citizens, are now in charge of governing and developing their own communities, a genuine change from the past. Local level government capacity to execute newly defined mandates is nevertheless low in human resource, managerial, administrative, and financial terms. The Contractor shall engage in technical capacity building including strategic planning, budgeting, revenue generation, and service delivery. Work shall develop mechanisms for attracting and sustaining the appropriate talent to the local level. The quality of locally provided services is an important bellwether of local government efficacy that is not being met. Areas that require attention include utility services like solid waste management, water supply, heating, and lighting;

transportation, including road upgrades, route planning, signage, security, transportation services (bussing etc.); administrative services; and education in the form of school system optimization, teaching personnel selection, buildings, materials and equipment upgrade. Healthcare is also a new mandate for coordination at the local level including health care facilities optimization, qualified medical personnel recruitment, and developing intermunicipal cooperation models as part of the broader health reform effort across Ukraine.

The Contractor shall work with selected local governments to improve citizen engagement including building capacity to be more open, transparent, and willing to have a dialogue and cooperate with constituents and clients not only during election campaigns but on a regular basis as a matter of good decision-making. This includes establishment of citizen engagement strategies and mechanisms, systemic testing of these and citizen outreach formalization for government in the form of local ordinances. The Contractor shall provide assistance to develop communications methodologies. Tax obedience of local residents has been shown to be a clear result of effective citizen-to-government capacity building, and while fiscal decentralization has increased local budget resources, the practice of paying taxes in Ukraine remains an area for work. Local government tax capacities also remain underutilized. The Contractor shall work in selected locations to bolster the system of local taxes and assist in collection methodologies, including engaging in the shift to local tax administration by local government from the national fiscal service. The Contractor shall build the capacity of local government to effectively administer taxes as a means to ensure increasingly self-reliant local government. Local economic development (LED) is a backbone of local government sustainability and self-reliant development. The Contractor shall work with local government leaders to sustainably, effectively, and inclusively develop their local economies, addressing legacy issues like suspicion of private property and competition and fight the pernicious influence of vested interests. The Contractor shall support selected small businesses and seek to build more business-enabling environments at the local level, support tailored to the needs of local communities that will establish greater community trust and cooperation so that residents see the private sector as a partner in the governing process.

Sub-Objective 2.1 - Increased local and subnational government capacity to perform its roles and responsibilities Sub-Objective 2.2 - Improved local and subnational government commitment to citizen engagement through transparent accountability mechanisms Sub-Objective 2.3 - Increasingly citizen-responsive services in targeted local government locations Sub-Objective 2.4 - More effective promotion of local economic development, private sector engagement and own-source revenue generation by local government

Primary local partners: Mayors; executive staff; councilors; starostas; prefects; deconcentrated line ministry staff; city executive staff; oblast executive and legislative staff; local government associations; subject matter professional groups; local universities; local training organizations; and local consultants.

Illustrative Activities:

● Support to local government entities to increase own-source revenues through creating taxpayer databases (closely linked to infrastructure improvements)

● Utilize land tools with subnational governments to be able to responsibly use their land for economic development (e.g., GIS mapping, spatial planning)

● Trainings on asset management for local government entities (closely linked to land reform)

● Increasing the capacity of local government councilors to represent their constituents, legislate local ordinances and oversee the executive

● Supporting local government (mayors and staff) to establish and use participatory governance tools, engaging with citizens/CSOs to incorporate priorities and reflect these in associated budgets and financial planning

● Capacity assistance to median level government (as per current rayon level) as appropriate to establish functionality and appropriately respond to other levels’ needs

● Development of university curricula tailored to local governance

● Support on subnational participatory strategic planning, service improvement and local economic development planning linked to sub-national and national-level planning

● Support on-the-job training, CTC/city peer-to-peer learning. Internships and study tours

● Facilitating the creation of inter-municipal cooperation activities/projects between local governments and sub-national levels on joint services and infrastructure such as solid waste removal

● Support to oblast governments on regional economic planning

● Support to procurement training at the CTC/city level linked to actual procurements

● Support to CTCs and city institute on creating enabling environments for local economic development

● Technical assistance to CTC/city service provision enterprises on improving service delivery, linked to improved fee collection

● Support methodology establishment for sharing lessons learned and best practices beyond the specific

CTCs/rayons/oblasts directly targeted

Expected Results:

● Improved sub-national capacity to strategically plan and budget with resident/stakeholder input

● Local and subnational level capacity to execute newly defined mandates improved, including, e.g.

better human resource management, administrative systems and financial transparency

● Improved quality of services provided at the sub-national level in targeted locations

● CTCs, cities, and other sub-national governments as defined generate more own-source revenues through taxes and fees

● Establishment of effective citizen engagement strategies and associated mechanisms that increase the number of residents involved in local-level decision making

● National marketplace of certified trainers and training organizations established, supported and working to improve local level capacities

● More effective inter-level government coordination on select issues of mutual engagement, particularly in areas of sectoral decentralization

● Improved local economic growth as a result of multi-stakeholder engagements, including governments, civic actors and the private sector

● Replicable models of sub-national government self-reliance developed and transferred to other parts of Ukraine not targeted by this Activity, for use by other USAID implementing partners and/or donor/GOU funded efforts

Objective 3 - Citizens play an increasingly influential role in local governance processes

Successful, irreversible decentralization reform and more self-reliant local democracy in Ukraine requires a wholesale shift in Ukrainians’ mindset, redefining citizenship from being a subject of government to being an active participant in governance processes. Despite the substantial improvements in local level service delivery experienced by Ukrainians living in decentralized communities since 2014, citizen participation in governance lags, particularly outside of large urban centers. Ukrainians typically view participation in local governance solely in terms of voting, and lack awareness of or the capacity to effectively implement other tools such as local referenda, public advisory boards, local information requests, and other tools. The number of active CSOs at the local (particularly CTC and city) level is small and among those that do exist, focus tends to be on support to their members rather than local development or governance issues. The Contractor shall work in target communities to broaden awareness and support the development of a range of tools for citizen engagement in governance processes, including community participation statutes that empower citizen information requests; procedures codification supported by local level financial resources; and implementation of participatory engagement processes for planning, budgeting, implementation oversight and after-action reviews. The Contractor shall develop capacity for a strategic and higher level sustainable citizen participation using mechanisms such as codified public hearings processes, participation in local council meetings, public expertise, and local advisory boards is a present and critical need at all levels of sub-national government.

One of the key functions of civil society is local government oversight, which can be done by individual citizens or initiative groups but is often more effective when institutionalized and provided on behalf of CSOs. The Contractor shall work to operationalize CSO public oversight capacity, activity prioritization, skills for project identification, resource mobilization, and knowledge of approaches to involve citizens.

Further efforts shall be applied to establish systematic citizen oversight of local development initiatives such as tendering or monitoring of implementation. Work shall include working with everyday citizens through the governance process to build appropriate levels of trust in authorities and interest in local governance, focusing on local drivers of change, formal and informal leaders and activists (particularly women and youth), and the capacity building of CSOs to deliver demand-driven community services and provide local governance oversight through, e.g., monitor implementation of local ordinances alongside the development of norms and networks of civic engagement in governance processes that require active civic involvement.

● Sub-Objective 3.1 - Citizens are more represented, engaged and committed to participatory local government decision-making

● Sub-Objective 3.2 - Improved citizens/CSOs capacity to oversee local government

● Sub-Objective 3.3 - Citizen/CSO demand and advocacy lead to measurable increases in local government responsiveness

Primary local partners: citizens, initiative groups, local CSOs, youth groups, media, local government officials, both executive and legislative, private business; women’s groups.

Illustrative activities:

● Developing and adopting civic engagement mechanisms such as public hearings, civic expertise, town hall meetings, dialogue forums, public debates, youth councils to engage youth, civic advisory boards, public councils, e-based civic engagement mechanisms, such as e-petitions, participatory budgets, etc.

● CSO needs assessment (e.g., community surveying, online voting) and advocacy campaigns

● Build the capacity of local government associations to effectively represent their constituents at all levels of governance

● Campaigns to generate knowledge and support of the Local Governance Reform aimed to increase awareness of citizens role in local democracy and decision making

● Facilitate citizen engagement in local government (CTC, mid-level and cities/oblasts) decision-making with an emphasis on including women (e.g, trainings, public campaigns, gender responsive tools

● Facilitate youth participation and engagement in local governance (e.g., trainings and hub events for youth, youth festivals, local community projects, creating youth spaces, peer-to-peer education programs, exchange tours, youth monitoring of local government services, youth councils, etc.)

Expected Results:

● Increased citizen voice in decentralization policy-making at and between all levels of government;

● Increased participation by citizens in local level…