72016819R00006_executed.pdf

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April 16, 2019

Reference: 72016819R00006 (Energy Policy Activity in Bosnia and Herzegovina)

Due Date: 9:00 a.m. Sarajevo Bosnia time, May 7, 2019

Questions Due Date: 9:00 a.m. Sarajevo Bosnia time, April 19, 2019

Geographic Code: 935; NAICS Code: 541990

Dear Sir/Madam:

The United States Agency for International Development (USAID), through the Mission in

Bosnia and Herzegovina (BiH) contemplates award of a five year Cost-Plus-Fixed Fee

Completion contract to implement the Energy Policy Activity (EPA) in Bosnia and

Herzegovina. The anticipated award date is September 30, 2019.

USAID anticipates awarding one contract conducted under full and open competition procedures, pursuant to Part 15 of the FAR (48 CFR Chapter 1). USAID encourages offerors to express interest in this solicitation by submitting a proposal in accordance with the instructions set forth in Section L, “Instructions to Offerors.” USAID will evaluate the responsive proposals in accordance with the evaluation factors provided in Section M, “Evaluation Factors for Award” hereunder.

USAID encourages the participation to the maximum extent possible of U.S. small businesses (SB) in this activity as prime or subcontractors in accordance with Part 19 of the

FAR. Also, please note that the geographic code is 935, which allows participation in this procurement from any area or country except from prohibited sources.

Electronic responses to this RFP are mandatory (See Section L). Please submit your proposals to the email address below by 9:00 a.m. Sarajevo Bosnia time, May 7, 2019.

Receipt time is when the proposal is received by AID/Washington internet server. The address for the receipt of proposals is: sarajevooaa@usaid.gov. Hand delivered proposals

(including commercial courier) and facsimile transmission will not be accepted.

The Technical Proposal has a strict twenty five (25) page limit. Pages exceeding this limit will not be evaluated. Offerors are reminded that evaluators have to be able to read the proposals, so presentation and legibility are crucial.

This RFP can be viewed and downloaded from Federal Business Opportunities portal at https://www.fbo.gov/. USAID bears no responsibility for data errors resulting from transmission or conversion processes. Further be aware that amendments to solicitations are occasionally issued and will be posted on the same website from which you downloaded the solicitation. USAID advises to regularly check the above website for amendments.

This RFP does not obligate the United States Government to award a contract nor does it commit USAID to pay any cost incurred in preparing and submitting of a proposal. Award of a contract under this RFP is subject to availability of funds and other internal USAID approvals.

mailto:sarajevooaa@usaid.gov https://www.fbo.gov/

72016819R00006

SOLICITATION, OFFER AND AWARD

4. TYPE OF SOLICITATION2. CONTRACT NUMBER 3. SOLICITATION NUMBER

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

ORDER UNDER DPAS (15 CFR 700)

6. REQUISITION/PURCHASE NUMBER

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

NEGOTIATED (RFP)

SEALED BID (IFB)

5. DATE ISSUED

1. THIS CONTRACT IS A RATED RATING PAGE OF PAGES

1 148

C. E-MAIL ADDRESS

EXT.NUMBERAREA CODE

B. TELEPHONE (NO COLLECT CALLS)A. NAME

10. FOR

INFORMATION

CALL:

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.

(Date)(Hour) local timeuntildepository located in 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

SOLICITATION

9. Sealed offers in original and

PART IV - REPRESENTATIONS AND INSTRUCTIONS

OTHER STATEMENTS OF OFFERORS

EVALUATION FACTORS FOR AWARD

INSTRS., CONDS., AND NOTICES TO OFFERORS

REPRESENTATIONS, CERTIFICATIONS AND

LIST OF ATTACHMENTS

CONTRACT CLAUSES

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

I

J

K

L

M SPECIAL CONTRACT REQUIREMENTS

CONTRACT ADMINISTRATION DATA

DELIVERIES OR PERFORMANCE

INSPECTION AND ACCEPTANCE

PACKAGING AND MARKING

DESCRIPTION/SPECS./WORK STATEMENT

SUPPLIES OR SERVICES AND PRICES/COSTS

SOLICITATION/CONTRACT FORM

PART II - CONTRACT CLAUSESPART I - THE SCHEDULE

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G

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B

A

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

11. TABLE OF CONTENTS

18. OFFER DATE17. SIGNATURE

SUCH ADDRESS IN SCHEDULE.

IS DIFFERENT FROM ABOVE - ENTER

15C. CHECK IF REMITTANCE ADDRESS

EXT.NUMBERAREA CODE

15B. TELEPHONE NUMBER

(Type or print)AND

ADDRESS

OF

OFFEROR

CODE FACILITY

16. NAME AND TITLE OF PERSON AUTHORIZED TO SIGN OFFER15A. NAME

DATEAMENDMENT NO.DATEAMENDMENT NO.

and related documents numbered and dated):

amendments to the SOLICITATION for offerors

(The offeror acknowledges receipt of

14. ACKNOWLEDGEMENT OF AMENDMENTS

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

(See Section I, Clause No. 52.232.8)

13. DISCOUNT FOR PROMPT PAYMENT

designated point(s), within the time specified in the schedule.

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

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

OFFER (Must be fully completed by offeror)

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

28. AWARD DATE

(Signature of Contracting Officer)

27. UNITED STATES OF AMERICA

25. PAYMENT WILL BE MADE BY

26. NAME OF CONTRACTING OFFICER (Type or print)

CODE 24. ADMINISTERED BY (If other than Item 7)

ITEM

(4 copies unless otherwise specified)

23. SUBMIT INVOICES TO ADDRESS SHOWN IN

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

22. AUTHORITY FOR USING OTHER THAN FULL AND OPEN COMPETITION:

21. ACCOUNTING AND APPROPRIATION20. AMOUNT19. ACCEPTED AS TO ITEMS NUMBERED

AWARD (To be completed by government)

CODE

REQ-168-19-00000704/16/2019

X

720168

USAID/Bosnia/Herz 7130 Sarajevo Place Washington DC 20521-7130

0900 A 05/07/2019

Diego Marquez +38 61 dmarquez@usaid.gov

733-7042

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PAGE(S)

Sarah R. Bueter

AUTHORIZED FOR LOCAL REPRODUCTION

Previous edition is unusable

STANDARD FORM 33 (Rev. 9-97)

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

12. In compliance with the above, the undersigned agrees, if this offer is accepted within _____180_________ calendar days (60 calendar days unless a different period is inserted

\S\ 04/16/2019

ABBREVIATIONS

AAPD Acquisition & Assistance Policy Directive

ADS Automated Directives System

AIDAR Agency for International Development Acquisition Regulation

AMEP Annual Monitoring & Evaluation Plan

AQR Asset Quality Review

BEO Bureau Environmental Officer

BiH Bosnia and Herzegovina

BS Branding Strategy

BIP Branding Implementation Plan

CDCS Country Development Cooperation Strategy

CCN Cooperating Country National

CAS Cost Accounting Standards

CFR Code of Federal Regulation

CO Contracting Officer

COP Chief of Party

COR Contracting Officer’s Representative

CPAR Contractor Performance Assessment Reporting

CPFF Cost-Plus-Fixed-Fee

CPI Contractor Performance Information.

CPII Contractor Performance and Integrity Information

CPR Contractor Performance Report

D&B Dun and Bradstreet, Inc.

DBA Defense Base Act

DDL Development Data Library

DEC Development Experience Clearinghouse

DO Development Objective

DOC Development Outreach Coordinator

DSO Distribution System Operator

DUNS Data Universal Numbering System

EA Environmental Assessment

EBRD European Bank for Reconstruction and Development

EDO Economic Development Office

EFT Electronic Funds Transfer

Elektroprivreda a Serbo-Croat-Bosnian word meaning “electric industry”

EnC Energy Community

EP see “Elektroprivreda”

EPA Energy Policy Activity

EPBiH Elektroprivreda Bosne i Hercegovine

EPHZHB Elektroprivreda Hrvatske Zajednice Herceg-Bosne

EPRS Elektroprivreda Republika Srpska

EU European Union

EU Acquis Accumulated legislation, legal acts, and court decisions which constitute the body of European Union law (Directives and other legal acts)

E.O. Executive Order eSRS Electronic Subcontracting Reporting System

FAPIIS Federal Awardee Performance and Integrity Information System

FAR Federal Acquisition Regulation

FBO Federal Business Opportunities

F BiH Federation of Bosnia and Herzegovina

FOIA Freedom of Information Act

FPRA Forward Pricing Rate Agreement

FY Fiscal Year

GAAS Generally Accepted Auditing Standards

GAO General Accounting Office

GIZ Deutsche Gesellschaft für Internationale Zusammenarbeit

GSM Graphic Standards Manual

IEE Initial Environmental Examination

IPN Implementing Partner Notices

IR Intermediate Result

IT Information Technology

LNG Liquefied Natural Gas

LOE Level of Effort

MEL Monitoring, Evaluation and Learning

MEDEVAC Medical Evacuation

MIER Ministry of Industry, Energy and Mining

MOU Memorandum of Understanding

MP Marking Plan

MOFTER Ministry of Foreign Trade and Economic Relations

NAICS North American Industry Classification System

NARUC National Association of Regulatory and Utility Commissioners

NERP National Emission Reduction Plan

OAA Office of Acquisition and Assistance

OFAC Office of Foreign Assets Control

ORCA Online Representations and Certifications Application

PAD Project Appraisal Document

PDF Portable Document Format

RA Reform Agenda

RCE Request for Categorical Exclusion

RES Renewable Energy Sources

RFP Request for Proposals

RS Republika Srpska

RSERC Regulatory Commission for Energy of Republika Srpska

SAA Stabilization and Association Agreement

SAM System for Award Management

SERC State Electricity Regulatory Commission

SDN Specially Designated Nationals

SGIP Strengthening Government Institutions Project

SMEs Small and Medium Enterprises

SOW Statement of Work

TBD To be determined

TIN Taxpayer Identification Number

TCN Third Country National

UNDP United Nations Development Programme

US United States of America

USAID United States Agency for International Development

USAID/W USAID Washington

USG United States Government

WB World Bank

WB6 West Balkan 6 Initiative

PART I—THE SCHEDULE

SECTION B – Supplies or services and prices/costs

B.1 Purpose

The purpose of the Energy Policy Activity (EPA) is to facilitate future investments in the energy sector; increase BiH's energy security; maintain the robustness of BiH's position as an electricity exporter and; help prevent corruption in the sector. The proposed activity is envisioned to assist the BiH energy sector to support the creation of an investor-friendly legislative and regulatory framework in accordance with EnC Treaty obligations (and thus

EU Energy Directives) and to continue the integration of its energy sector into the regional and EU energy markets.

B.2 Contract Type

A Cost-Plus-Fixed-Fee (CPFF) Completion Contract is being contemplated. For the consideration set forth in the contract, the contractor must provide the deliverables and results described in Section C and Section F (to be incorporated at contract award). 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 must not exceed the aforesaid obligated amount.

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

B.4 Price Schedule

(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 will 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 may request on costs expended or accrued under this contract in support of the budget information provided herein.

B.5 Option to Extend Services

Pursuant to FAR 37.111 and to the FAR clause incorporated by full text in Section I entitled

“52.217-8 OPTION TO EXTEND SERVICES (NOV 1999)”, the Contractor hereby grants to the U.S. Government option to extend services under the contract for six additional one month periods. Such extension options are to be exercisable by issuance of a unilateral modification prior to the expiration of the contract. The six one-month extension options may be combined or exercised individually. Upon exercise of such options by the Government, the costs and fees evaluated at contract award will be increased by the amounts specified below for each option month to extend. TBD.

Cost Category 1 st Option 2 nd Option 3 rd Option 4 th Option 5 th Option

To Extend To Extend To Extend To Extend To Extend

(1 month) (1 month) (1 month) (1 month) (1 month)

Total Estimated Cost

Fixed Fee

Total Estimated Cost

B.6 Indirect Costs

(a) Pending establishment of revised provisional or final indirect cost rates, 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 Forward Pricing Rate Agreement (FPRA):

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.7 Ceiling on Indirect Cost Rates (if applicable)

(a) Reimbursement for indirect costs will be at the lower of the negotiated final (or predetermined) rates or the following ceiling rates:

Description Rate Base Type Period

% 1/ 1/ 1/

1/Base of Application:

Type of Rate:

Period:

(b) 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.

(c) This understanding will not change any monetary ceiling, obligation, or specific cost allowance or disallowance. Any changes in classifying or allocating indirect costs require the prior written approval of the Contracting Officer.

B.8 Multi-year contract and cancellation ceiling

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) If cancellation under the clause at FAR 52.217-2, “CANCELLATION UNDER

MULTI-YEAR CONTRACTS (OCT 1997)” occurs, the contractor will be paid a cancellation charge not over the cancellation ceiling defined as follows:

Program Year

Cancellation Date

Cancellation

Ceiling

Base year 2 September, 2021

Base year 3 September, 2022

Option year 4 September, 2023

Option year 5 September, 2024

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

The cancellation ceiling shall be the amount allotted to this contract under the

Limitation of Funds clause (FAR 52.232-22(b)) at the time the cancellation notice is issued by the Contracting Officer.

(c) In accordance with the Cancellation under Multi-year Contracts clause, the cancellation charge will cover only:

1. Costs:

Incurred by the contractor and/or subcontractor;

Reasonably necessary for performance of the contract; and

That would have been equitably amortized over the entire multi-year contract period but, because of the cancellation, are not so amortized; and

2. A reasonable profit or fee on the costs.

B.9 Cost Reimbursable

(a) 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,” and FAR § 52-232-22, “Limitation of

Funds,” if applicable, and AIDAR 752.7003, “Documentation for Payment.”

B.10 Payment of Fixed Fee

Pursuant to FAR 16.306 (d) “Cost-Plus-Fixed-Fee Contracts”, payment of fixed fee will be based on acceptance of the deliverables described in Section C and F of this contract by the

Contract Officer’s Representative (COR) per section E of this solicitation and must be in accordance with the approved fee schedule below. This payment chart applies up to eighty‐ five percent (85%) of the total fixed fee. Per FAR 52.216-8, 15% will be withheld as a reserve.

Performance

Objective/Deliverable/Output

Reference

Section

Means of Verification $ Fee

TBD

And others as proposed.

END OF SECTION B

SECTION C - Description/Specifications

STATEMENT OF WORK

February 22, 2019

1.0 Background

To meet its future energy needs, maximize its export potential and make the sector attractive for investors, BiH must invest additional efforts to remove legislative obstacles, shorten development time frames, modify conflicting regulations, and improve the transparency of development process.

BiH is a signatory to the Energy Community Treaty. The Energy Community (EnC) has adapted the EU energy acquis for the EnC Treaty signatories. The Treaty requires the signing parties to adopt the relevant regulations and thus harmonize their energy market frameworks with that of the EU. The EU, through the EnC Secretariat, regularly monitors and reports on the progress that BiH has made in reforming its energy sector.

The most recent EnC 2017 Annual Implementation Report states that BiH has made some progress but remains largely non-compliant with EnC Treaty obligations. The degree of compliance varies by sector. The lack of a Third Energy Package-compliant gas sector legislation is especially significant. The natural gas market should be in compliance with the

EnC’s Third Liberalization Package particularly because new pipeline infrastructure will provide additional security of supply. The Oil sector and the renewable energy framework are largely non-compliant and in need of reform assistance as well. Some progress has been made in the electricity market, energy efficiency, and energy statistics, but these areas too require further interventions. The environmental requirements have been implemented to a modest degree, whereas competition policy is largely in compliance with the Treaty obligations.

BiH is now considered lagging behind other EnC participants in the Western Balkans. The

BiH political environment has played a major role in slowing down energy sector reform.

Political challenges include the need to navigate the state-level and entity-level legal structures, as well as cantonal politics in FBiH. Various deadlocks that occur in the process slow down the pace of reform. Some new legislation, including the State Law on Regulator, Transmission, and Electricity Market and the Law on the Establishment of the Transmission

System Operator have been held up, preventing further reforms in support of compliance and electricity market operation.

In addition, energy price deregulation is a politically sensitive issue, inviting the use of political power to influence independent regulatory bodies. No real progress has been made on key issues such as unbundling and price deregulation in the electricity market. Non-market prices, in turn, discourage long-term investment and inhibit the overall development of a competitive energy market. Hence, a host of policy interventions requiring specialized knowledge and technical assistance is needed to pull BiH nearer to its regional peers and bring its energy sector closer to the integrated European markets. However, BiH governments have successfully passed/adopted legislation and technical recommendations that mark the end of the stalemate. These successes include:

- The adoption of the BiH State Framework Energy Strategy by the Council of

Ministers

- The adoption of the National Emission Reduction Plan (NERP), which is fully compliant with the EU Policy Guidelines and the Directives

- The approval of the Road Map for Implementation of the West Balkan 6 Initiative

(WB6) in Bosnia and Herzegovina.

- The FBiH Government adopted USAID EIA recommendations for improving the permitting regime.

- The RS Government adopted USAID EIA recommendations for streamlining the permitting regime, in cooperation with the RS Ministry of Industry, Energy and

Mining, and the GiZ PRoRE Project.

2.0 Scope

The Contractor must assist the BiH energy sector stakeholders to support the creation of an investor-friendly legislative and regulatory framework in accordance with EnC Treaty obligations (and thus EU Energy Directives) and to continue the integration of its energy sector into the regional and EU energy markets. The Contractor must facilitate future investments in the energy sector; raise the level of energy security for BiH, maintain the robustness of BiH’s position as an electricity exporter, and help prevent corruption in the sector, and achieve the results listed under each Component.

3.0 Components

There are four components:

Component One: Natural Gas Technical Assistance

Component Two: Electricity Technical Assistance

Component Three: Cross-cutting Assistance on EU Accession Requirements in the

BiH Energy Sector Component Four: Cross-cutting Assistance and Activities in Public Outreach

4.0 Work Requirements

Overall: It is important to note that the EU may soon issue a fourth Energy Package, which would then be adopted by the Energy Community (EnC). The final directives and regulations will impact the project direction and the Contractor must incorporate any new directives and regulations into their work plan.

4.1 Component One: Natural Gas Technical Assistance

The goal of this natural gas technical assistance is to create the preconditions for and development of a BiH natural gas internal market, and its integration into the regional natural gas market. Under this component, the Contractor must offer technical assistance needed for redrafting and passing the compliant legislation in the natural gas sector on all government levels. The Contractor must address the design and adoption of a number of regulatory and policy reforms, including the unbundling of gas pipelines (separating pipeline networks from supply function); open access regulation; rules on licensing, tariffs, general conditions of supply, customer switching, and other preconditions for creating the internal market as required by EnC Treaty. Contractor must be targeted toward the development of the missing legislation, regulations and rules; providing training for the regulators and natural gas sector stakeholders to comply with the new legislation and take the lead in establishing the natural gas and balancing markets; and creating the preconditions to join the regional natural gas market.

To succeed in this component, the Contractor must:

1. Natural Gas Security of Supply and Missing Primary and Secondary Legislation

a. Track and report on the progress of transmission pipelines that will transport gas from sources other than Russia, along with other pipelines bringing Russian gas to

Europe. Track and report on Liquefied Natural Gas (LNG) terminals and their development progress that would be accessible for BiH.

b. Where necessary, work with legislators and agencies to ensure that the BiH natural gas infrastructure permitting regime is consistent, transparent, and investor friendly.

2. Regional Natural Gas Sector

a. Assist BiH to satisfy the preconditions to join the regional natural gas market and obtain access to natural gas storage facilities in accordance with requirements for

Energy Treaty and EU Energy Directives; and

b. The Contractor must assess the BiH gas network development in regard to the

BiH Energy Strategy development plan, and provide assistance to BiH to create legal and regulatory pre-condition to implement it. This is a next step after the approval of the Framework Energy Strategy for BiH.

3. Training for the Regulators and Natural Gas Sector Stakeholders

This sub-component assumes that the new “Law on Electricity and Gas Sector

Regulator and Electricity Transmission System and Market in Bosnia and

Herzegovina” has been passed, and the process of preparing regulations for the gas sector has already started or is about to start.

a. Regulatory Independence Training. The introduction of natural gas regulation in the Federation and State presents an excellent opportunity, so the Contractor must provide “refresher” trainings both for regulators who have already received such training when the regulatory commissions were formed and also for regulators and staff appointed or hired thereafter. The Contractor must invite all regulators and, if possible and where appropriate, government representatives to attend this refresher on the independence of the regulators.

b. Substantive training on natural gas market. The Contractor must conduct an assessment and, with approval from USAID, provide training for all three regulatory commissions in BiH (RSERC, FERC and SERC). The purpose of the substantive training is to develop the BiH internal natural gas market in compliance with the EnC Treaty requirements. It is possible that on the date of project implementation some training will have been done in the areas that are preceded with an asterisk (*), depending on when the law on gas is passed.

Trainings should be accompanied by the following outputs:

Licensing: draft a report on the role and structure of licenses, drafting a licensing rule, and outlines of transmission, distribution, and supply licenses.

*Sector unbundling: drafting a report on sector unbundling, the roles of companies, and any necessary legislative amendments.

Tariffs: draft a report on price regulation; help BiH regulators to determine transmission network and connection charges; help BiH regulators to determine distribution network and connection charges; draft a report on setting final consumer prices; draft a rule on tariffs and outlines of contracts;

and develop revenue/tariff setting computer tools.

*General conditions of supply: draft a short report on supply activities and the role of general conditions of supply and an outline of general supply conditions.

Gas market/access arrangements: draft a report on market organization.

*Capacity allocation and congestion management: draft a report on capacity allocation and congestion management; draft market/network rules.

Market operations and balancing: draft a report on market operations and balancing and draft market/network rules. This includes network codes that must be transposed and implemented by EnC Treaty signatory parties.

*Connection and interoperability: draft a report on connection conditions and interoperability and draft market/network rules.

Security of supply: draft a report on security of supply in liberalized gas markets; draft market/network rules.

Key partners that the contractor must be working with on Component 1:

Ministry of Foreign Trade and Economic Relations (MOFTER); the Federation of BiH

(FBIH) Ministry of Energy, Mining and Industry; the Republika Srpska (RS) Ministry of

Economy, Energy and Development; all gas companies in BiH and Brcko District; all entity and cantonal ministries in charge for spatial planning and environment; RS, FBIH, BiH

Concession Commissions; RS and FBiH Environment Funds; three regulatory commissions in BiH (State Electricity Regulatory Commission (SERC) and two at the entity levels); the

Energy Community Secretariat (EnC) in Vienna; other donors; and investors in the gas sector of BiH. The contractor must closely coordinate its activities with other USAID programs, where feasible, Energy Community Secretariat (EnC), the European Bank of Reconstruction and Development (EBRD), the European Commission (EU), the Office of the High

Representative (OHR), and the World Bank (WB).

Results:

Gas sector in BiH organized in accordance with transparent market principles and EnC

Treaty.

Necessary and missing legislation, rules and regulations for the functioning of the natural gas sector in BiH developed which includes BiH being part of the regional electricity market.

Security of natural gas supply improved.

Access to natural gas storage facilities supported.

Gas sector stakeholders trained on functioning of the gas market in compliance with the EnC Treaty requirements.

4.2 Component Two: Electricity Technical Assistance

Under this component the Contractor must offer technical assistance for legislative and regulatory changes listed under Expected Results – Electricity Technical Assistance. The

Contractor must work on enhancing the smart grid features of the electricity network by developing a demand side response mechanism, instituting intra-day and day-ahead markets, assisting newly unbundled electricity utilities, Renewable Energy Sources (RES) producers, and households and small commercial customers to benefit from a fully operational market;

and, continue the development of the Energy Efficiency Obligation (EEO) to make it fully functional.

The following tasks must be completed by the Contractor, but not limited to:

1. Investment

a. Work with legislatures and other authorities to ensure that the BiH electricity generation permitting regime is consistent, transparent and investor friendly.

b. Develop a customized permitting guide for investors based on inputs provided on the proposed project. The guide would outline a roadmap of potentially required permits, typical timeframes and issuing authorities

c. Assist BiH authorities to develop and implement Regulation 347 as part of the

BiH permitting system for Projects of EnC Interest (PECI), Projects of Common

Interest (PCI), and Central and South Eastern Europe Gas Connectivity (CESEC) projects. Regulation 347 provides for new, more transparent and accelerated procedures to grant permits for such projects.

2. The Electricity Market

a. Unbundled Power Utilities. Assist regulators and companies to develop and implement rules for unbundled power utilities so they can operate in a fully-opened electricity market. The legislation is already in place and the implementer must coordinate with the EnC Secretariat because it has offered assistance in this area.

b. RES Producer Participation in the Market. Develop rules so that Renewable

Energy Sources (RES) power plants can participate in the balancing and wholesale market.

c. Support the development of a Demand Side Response System for the development of a BiH smart grid. A demand side response system is a program whereby energy customers adjust their energy consumption to available supply in response to changes in the price of electricity over time and changes in incentive https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja&uact=8&ved=0ahUKEwil272bxunXAhWFz4MKHULVC3sQFggnMAA&url=https%3A%2F%2Fec.europa.eu%2Fenergy%2Fen%2Ftopics%2Finfrastructure%2Fcentral-and-south-eastern-europe-gas-connectivity&usg=AOvVaw2oz7OIwVBJxAzGZ73w9Z3k programs. The Contractor must determine the obstacles to creating such a system and offer recommendations to removing these obstacles.

d. Intra-Day and Day-Ahead Market Systems. The contractor must provide technical assistance (TA) to accommodate the market commercial processes for intra-day and day-ahead markets implemented through a power exchange. This TA must be provided to BiH energy authorities listed as key partners, show below.

e. Enabling Supplier Competition for Households and Small Businesses. Assist the regulators and Independent System Operator (TSO/Market Operator) to develop a methodology and rules for balancing households and small businesses to enable suppliers to compete for their energy supply.

f. Assist BiH to develop systematic energy efficiency approaches through further development of Energy Efficiency Obligation (EEO) scheme and other financing mechanisms for the benefit of citizens, as per EnC requirements.

Key partners that the contractor must be working with on Component 2:

Ministry of Foreign Trade and Economic Relations (MOFTER); the Federation of BiH

(FBIH) Ministry of Energy, Mining and Industry; the Republika Srpska (RS) Ministry of

Economy, Energy and Development; three regulatory commissions in BiH (State Electricity

Regulatory Commission (SERC) and two on the entity levels); all entity and cantonal ministries in charge for spatial planning and environment; RS, FBIH, BiH Concession

Commissions; RS and FBiH Environment Funds; all power utilities and companies in BiH and Brcko District; Renewable Energy Sources power producers, power traders, the

Independent System Operator (ISO), Elektroprenos – Elektroprijenos BiH (TRANSCO), all other governmental institutions in charge of power sector; the Energy Community Secretariat

(EnC) ; donors; and investors in the power generation of BiH. The contractor must closely coordinate its activities with other USAID programs, where feasible, and the Energy

Community Secretariat (ENC), and the United Nations Development Programme (UNDP), the European Union (EU), World Bank (WB), German Development Agency (Gesellschaft für Internationale Zusammenarbeit (GIZ), European Bank of Reconstruction and

Development (EBRD), the Office of the High Representative (OHR), the World Bank (WB), other Embassies, beside United States (US) that work in the energy sector, i.e. German, United Kingdom (UK), and others.

Results:

The BiH internal market is fully functional and equipped with all the features necessary to join the regional market.

Permitting system in BiH streamlined and simplified.

A customized permitting guide developed

Necessary rules and regulations for the full functioning of the electricity market in

BiH developed, which includes BiH being part of the regional electricity market.

Systematic energy efficiency mechanism supported.

4.3 Component Three: Cross-cutting Assistance on EU Accession Requirements in the

BiH Energy Sector

1. Provide communication support and assistance to Ministry of Foreign Trade and

Economic Relations of BiH (MOFTER) and relevant entity ministries on project work that impacts compliance with the requirements of the Energy Community (EnC) and obligations of BIH, as a signatory of Energy Treaty. Assist MOFTER and the relevant entity ministries on improving the energy strategies and action plans within the scope of the above activities.

2. National Energy and Climate Plans. Develop Recommendations for MOFTER on the preparation of integrated national energy and climate plans (NECP). The national plan should define objectives for each dimension of the EnC with regard to the 2030 targets for energy. USAID will work on the energy targets only.

3. Contractor must cooperate/coordinate with all USAID regional activities (National

Association of Regulatory Utility Commissioners (NARUC), USEA, etc.) and other donors in the energy sector.

4. Cyber Security. Contractor must, using the inputs from the Energy Community and

USEA/NARUC documents, and based on its own research, develop a Road Map and provide assistance to MOFTER for the implementation of Directive on security of

(energy) network and information systems (NIS Directive) in the energy sector of

BiH.

Key partners that the contractor must be working with on Component 3:

The Ministry of Foreign Trade and Economic Relations (MOFTER), two entity –level

Energy Ministries, the Energy Community Secretariat (ENC); specifically all utilities in both gas and electricity sector; three regulatory commissions in BiH (State Electricity Regulatory

Commission (SERC) and two on the entity levels); The contractor must closely coordinate its activities with other USAID programs, bilateral and regional, where feasible, and the Energy

Community Secretariat (ENC).

MOFTER and relevant entity ministries competently carry out their mandate.

Energy strategies and corresponding actions plan improved.

Road map on security of energy network and information system of BiH developed.

4.4 Component Four Cross-Cutting Assistance and Activities in Public Outreach

Assist the BiH regulatory commissions to promote and support a Europe-oriented, market-based energy sector by working with NARUC to develop an online platform to improve each commission’s capacity, strategy, and tools to conduct public outreach campaigns and educate customers on the benefits of increased competition. Assist the regulatory commissions to create websites that are easy to understand and navigate, user friendly, and serve as the central platform for customer education and a supply Price Comparison Tool (PCT). The

PCT enables customer switching in a competitive retail market. The PCT should be further developed and populated with educational information and then transferred to the regulatory commissions for continuing operation. The project’s public outreach effort must also work to inform energy sector stakeholders and the public about its activities.

Key partners that the contractor must be working with on Component 4:

Three regulatory commissions in BiH (State Electricity Regulatory Commission (SERC) and two on the entity levels); general public, investors; non-governmental organizations working in the energy, customers associations; The contractor must closely coordinate its activities with other USAID programs, bilateral and regional, where feasible, and the Energy

Community Secretariat (ENC).

Stakeholders and general public knowledge increased pertaining to the activities from

Components 1 – 3; and, Regulatory commissions’ websites serve as a central platform for customers

END OF SECTION C

SECTION D - Packaging and Marking

D.1 Marking

AIDAR 752.7009, “Marking,” (JAN 1993) provides:

(a) It is USAID policy that USAID-financed commodities and shipping containers, and project construction sites and other project locations be suitably marked with the

USAID emblem. Shipping containers are also to be marked with the last five digits of the USAID financing document number. As a general rule, marking is not required for raw materials shipped in bulk (such as coal, grain, etc.), or for semi-finished products which are not packaged.

(b) Specific guidance on marking requirements should be obtained prior to procurement of commodities to be shipped, and as early as possible for project construction sites and other project locations. This guidance will be provided through the cognizant technical office indicated on the cover page of this contract, or by the

Mission Director in the Cooperating Country to which commodities are being shipped, or in which the project site is located.

(c) Authority to waive marking requirements is vested with the Regional Assistant

Administrators, and with Mission Directors.

(d) A copy of any specific marking instructions or waivers from marking requirements is to be sent to the contracting officer; the original should be retained by the Contractor.

D.2 Branding

The Offeror shall comply with the requirements of the USAID branding policies available at www.usaid.gov/branding and appropriately mark all deliverables and public communications with the USAID brand.

USAID receives “exclusive branding and marking” for the work conducted under all acquisition awards. This means that the foreign assistance delivered is clearly credited to the

American people. It also means that competing logos or identities, such as the contractor’s, are excluded. News releases/media alerts must be coordinated with the Contracting Officer’s

Representative (COR). All media releases, press conferences and public events should incorporate the USAID identity. Approval by the USAID BiH Development outreach

Coordinator (DOC) should be received before using any printed materials which incorporate the USAID identity.

Program Name: Energy Policy Activity (EPA)

Branding: The branding shall incorporate the message that “This assistance is from the

American People” sponsored by USAID.

Positioning on materials and communications: USAID policy requires exclusive branding and marking in USAID direct contracting.

http://www.usaid.gov/branding

Contractor is required to use USAID identity on any program-related deliverables, commodities or communication to be produced and delivered under this contract. Contractor and subcontractor’s corporate identities are prohibited on all program materials. Marking is not required on contractor vehicles, offices, and office supplies or other commodities used solely for administration of this contract.

Desired Level of Visibility: USAID identity must be prominently displayed on commodities or equipment; printed, audio, visual or electronic public communications; studies, reports, publications, web sites, and promotional and informational products; events and grants under contracts financed by USAID. Visibility for the program is a very important segment of the project implementation and is essential for the success of the

Exceptions: Exceptions and waivers to USAID marking requirements may be granted in accordance with ADS 320.3.2.5, Exceptions to Contract Marking Requirements and ADS

320.3.2.6 waivers to Contract Marking Requirements.

Other organizations to be acknowledged: Where appropriate and applicable, the branding may acknowledge the cooperation and participation of other organizations deemed as partners of an event or deliverable.

All branding must comply with the standardized USAID regulations on branding. All branding for USAID, its partners, and other Unites States Government (USG) and non-USG entities engaged in a specific activity implemented under this Contract, must have equal representation on all public or internal documentation, publications, advertising, presentations, brochures, etc.

The Marking Plan (MP) shall enumerate all of the public communications, commodities, program materials, events, deliverables, and other items that shall be marked with the USAID identity or brand.

The Contractor will adhere to all USAID policy directives and required procedures on branding and marking of USAID-funded programs, projects, activities, public communications, and commodities with the USAID “Standard Graphic Identity” (or “USAID

Identity”) as specified in ADS 320 (effective 05/05/2009) and the Graphic Standards Manual

(GSM).

(a) In accordance with ADS 320.3.2.1, the Branding Strategy (BS) is a part of the contract requirements. Offerors are instructed to prepare a Branding Implementation

Plan (BIP) and Marking Plan (MP) to implement the Branding Strategy for this program unless otherwise instructed). Offeror shall submit Branding Implementation

Plan with proposal and will be incorporated into the contract in Section D. The standard forms for the BRANDING AND MARKING TEMPLATES are located at:

http://www.usaid.gov/branding/.

(b) Contractors and subcontractors' corporate identities or logos must not be used on

USAID-funded program materials. Marking is not permitted on any communications that are strictly administrative, rather than programmatic, in nature. USAID identity is also prohibited on Contractor and recipient communications related to award administration, such as hiring/firing of staff or renting office space and/or equipment.

http://www.usaid.gov/branding/

(c) Each proposal under this RFP shall provide a program-specific Branding

Implementation Plan (BIP) and MP. The contractor shall develop a detailed BIP and

MP. The Marking Plan may include requests for exceptions to marking requirements or programmatic reasons, to be approved by the Contracting Officer. Waivers, as defined by ADS 320, may be necessary for compelling political, safety or security concerns or if the marking shall have an adverse effect in the host country. Marking and attribution for physical structures may need to be visible as soon as work commences. If grants are authorized in the Statement of Work, the Contractor shall clearly and conspicuously state in the small grants documentation and all delivered procurement that resources for the grant have been donated by USAID and make clear that the Contractor is acting as USAID's agent.

The Contracting Officer will consider the Marking Plan's adequacy and reasonableness and will approve or disapprove any exemption requests. The

Marking Plan will be reviewed to ensure the above information is adequately included and consistent with the stated objectives of the award, the offeror's cost data submissions, and the performance plan.

(d) If the Offeror receives an award, the Marking Plan, including any approved exemptions, will be included in and made part of the Contract, and will apply for the term of the award unless provided otherwise.

D.3 Branding and marking policy

In accordance with provision D.2 above, and where applicable, the Contractor shall comply with the requirements of the policy directives and required procedures outlined in USAID

Automated Directive System (ADS) 320.3.2 “Branding and Marking in USAID Direct

Contracting” at http://www.usaid.gov/policy/ads/300/320.pdf; and USAID “Graphic

Standards Manual” available at http://www.usaid.gov/branding/gsm, or any successor branding policy.

END OF SECTION D

http://www.usaid.gov/policy/ads/300/320.pdf http://www.usaid.gov/branding/gsm

SECTION E - Inspection and Acceptance

E.1 Notice Listing Contract Clauses Incorporated by Reference

The following contract clauses pertinent to this section are hereby incorporated by reference

(by Citation Number, Title, and Date) in accordance with FAR § 52.252-2, “Clauses

Incorporated by Reference,” in Section I of this contract.

NUMBER TITLE DATE

Federal Acquisition Regulation (48 CFR Chapter 1)

52.246-5 INSPECTION OF SERVICES - COST-REIMBURSEMENT (APR 1984)

E.2 Inspection and acceptance

(a) USAID inspection and acceptance of services, reports, and other required deliverables or outputs will take place at the below location:

Economic Development Office

USAID/Bosnia and Herzegovina

Robert C. Frasure Street #1

71000 Sarajevo

Bosnia and Herzegovina

(b) USAID reserves the right to inspect and accept any services, reports, and other required deliverables or outputs where the services are performed and where reports and deliverables or outputs are produced or submitted. The contracting officer has delegated authority to inspect and accept all services, reports, and required deliverables or outputs to the

Contracting Officer’s Representative (COR) listed in Section G below.

END OF SECTION E

SECTION F - DELIVERIES OR PERFORMANCE

F.1 Notice Listing Contract Clauses Incorporated by Reference

The following contract clauses pertinent to this section are hereby incorporated by reference

(by Citation Number, Title, and Date) in accordance with FAR § 52.252-2, “Clauses

Incorporated by Reference,” in Section I of this contract.

Federal Acquisition Regulation (48 CFR Chapter 1)

52.242-15 STOP-WORK ORDER (AUG 1989) - ALTERNATE I (APR 1984)

F.2 Place of Performance

The place of performance under this contract is Bosnia and Herzegovina.

F.3 Performance Standards

USAID will evaluate the contractor’s performance in accordance with FAR § 42.15, corresponding USAID procedures, and the contractor’s adherence to the annual work plan, reporting against its Monitoring, Evaluation, and Learning Plan (MEL) (Attachment J.4), and quality of reports described in Section F below. USAID will evaluate the contractor’s performance during the initial, intermediate, and final periods of the contract in accordance with the Contractor Performance Assessment Reporting System (CPARS). The Contracting

Officer and the COR will jointly conduct the evaluation of the contractor’s overall performance. This evaluation will form the basis of the contractor’s permanent performance record under this contract.

F.4 Key Personnel

F.4.1 Contracting Officer consent to replace key personnel

(a) The key personnel who the contractor must furnish for the performance of this contract are as follows:

No. Key Personnel Position Name

1. Chief of Party TBD

2. Legal and Regulatory Expert TBD

3. Energy and Sector Reform Expert TBD

(b) The key personnel identified above are considered essential to the work being performed under this contract. The contractor must remain responsible for providing such key personnel for full-time performance for the term of this contract unless otherwise agreed to by the contracting officer.

(c) The failure to provide the key personnel designated above may be considered nonperformance unless such failure is beyond the control, and through no fault or negligence, of the contractor.

(d) The contractor must immediately notify the contracting officer and the COR of any key personnel’s departure and the reasons therefore.

(e) The contractor must take steps to immediately rectify this situation and will propose a substitute candidate for each vacated position along with a budget impact statement in sufficient detail to permit evaluation of the impact on the program.

The contractor must not replace any of the key personnel without the written consent of the contracting officer whether provided in advance or by ratification.

F.5 Authorized Work Day/Week

(a) Overseas Employees - The work week for the Contractor's overseas employees must not be less than 40 hours and must be scheduled to coincide with the work week for those employees of the…