72016820R00001 Financial Reform Activity in Bosnia-Herzegovina Questions and Answers.pdf

72016820R00001 Questions and Answers

72016820R00001 Financial Reform Activity in Bosnia-Herzegovina: Greater fiscal accountability and transparency in Bosnia-Herzegovina

Questions and answers

1. Can USAID please share implementation progress reports or any project evaluation reports from USAID’s FAR Project referenced under Section C.5 (page 19) with prospective offerors?

A: Please see USAID/BiH PAD 2.2 Whole of Project evaluation from 2018 as a reference. It is provided as a separate attachment under the opportunity. The document name is WOPE.

2. Can USAID confirm that the grants under contract references in Section C and F.8 are not relevant to this RFP and that we should not plan for a grants program?

A: Please refer to RFP.

3. Can USAID confirm whether information technology (IT) procurements are expected to be done through this activity or if that support will come through a different project/program?

A: Please refer to RFP.

4. The Fiscal Sector Reform Activity does not have technical deliverables published on the

Development Experience Clearinghouse (DEC) per 48 CFR 752.7005. Could USAID kindly publish or circulate all DEC required reports, including the final report from the Fiscal Sector Reform Activity?

A: The final report to the Fiscal Sector Reform Activity will not be on the DEC for another 2-3 months since we are still in the close-out phase of the activity. Please see the response to Question 1.

5. In Section C, planned activity A.5, sub-activity (1) “Address the widespread tax avoidance through offshore transactions” refers to supporting four tax administrations. In the same planned activity A.5, sub-activity (2) “Strengthen the technical capacity of the three tax administrations (FBiH, RS, BD).” Could USAID kindly specify which four tax administrations need support under sub-activity (1)?

A: This appears to be a typo. It should read “three” tax administrations (FBiH, RS, Brcko). This will be corrected in Amendment 01 of the RFP.

6. Page 35 references a “2019 Gender Assessment,” could USAID please share it with offerors?

A: It is provided as a separate attachment under the opportunity. The document name is “Gender Analysis 2019 Follow-Up Final Report”.

7. Can USAID please confirm that FITRA is the intended acronym for this activity?

A: USAID is open to other suggested acronyms.

8. Attachment J.1 Background, page 9 recommends the purchasing and implementation of the UNCTAD’s Debt Management and Financial Analyses Systems (DMFAS) as a critical step to strengthening public debt management in BiH but states that USAID was unable to find alternate sources of funding for the financing of DMFAS. Does USAID expect the Financial Reform Activity to include costs of the DMFAS software in the Activity budget?

A: No.

9. Does USAID or Bosnia have a MPSA with Oracle Cloud or will Microsoft Cloud be the only MPSA leveraged?

A: Please refer to page 35 of the RFP (C.9 Sustainability Analysis). Further, USAID plans to utilize the existing agreements that both entity governments have already signed with the major IT providers.

10. Will USAID consider a COTS solution for the financial system?

A: Please refer to the RFP and evaluation criteria.

11. Is the preferred identified solution cloud or on premise?

A: Please refer to the RFP and evaluation criteria.

12. Per section F.6 the language seems to indicate that the expectation is for core resources to be located overseas. Please confirm if this assumption is correct. And if so, how is communication expected to be facilitated with Stakeholders?

A: Please refer to the RFP.

13. Could you please confirm Oracle systems are being used by FbiH and RS.

A: Please refer to the RFP.

14. Does this imply additional, i.e. complete harmonization of fiscal regulations (laws) in

BiH? Fiscal regulations are harmonized to a large extent in the BiH on the different levels of government (Local communities, Cantons, Entities, BiH level) but not completely. Is that activity also expected from the consultant?

A: Please refer to the RFP, which lays out the scope of the activities and expected outcomes.

15. In the context of the reform and modernization of the Tax Administration in BiH, is the consultant expected to work on the methodology of the TA operations, internal relations, evaluation of the work of the TA, primarily the perpetrators and their relation to public funds? Poor performance of the TA and individual perpetrators can, and cause great costs for the state, that is, ultimately for the taxpayers, i.e. the citizens of BiH.

A: Please refer to the RFP, especially section A.5.

16. Is it meant, by introduction of transparency in the work of TA, complete public insight in the work of TA, respecting of course the Law on protection of personal data?

A: Please refer to the RFP, especially section A.5.

17. When we talk about introduction of Health Sector in treasury business for easier control and insight into the use of public funds, is it meant on introduction on introduction in tresory system of operation or/ and inclusion in the budget, i.e. should those assets collected in the form of contributions that are calculated on employees´ personal income be integral part of the document called annual budget or not?

A: This question is illegible.

18. Is the consultant expected to work on a model of healthcare reform? It is necessary to approach urgently healthcare reform in BiH at all levels of government, respecting the constitutional structure and constitutional competence in BiH. The urgency of reforming the health system in BiH is necessary for sustainability because the health system in BiH is on the edge of financial sustainability.

A: Please refer to the RFP, especially section A.2.

19. Is the consultant expected to propose directions for public administration reform, with an aim of more transparent and effective use of public funds and, of course, fiscal sustainability and stability? There is nowhere in the assignment a reference to the New Public Managament, and to the Digital Public Administration. Public administration reform should go in the direction of the Digital Public Administration, but with a systematic approach, by no means with an approach to unrelated digitized entities.

20. Is the consultant expected to propose, among other things, a process for revising sectoral strategies and the goal of more efficient use of public funds and the objective of measuring the results of individual strategies and policies in spending?

21. Is the consultant expected to propose a model for creating sectoral strategies and policies across different levels of government that would have a synergistic effect?

22. Is the consultant expected to propose a model for financing public infrastructure works?

Almost all infrastructure works are financed through the loans of BiH. Negligible portion through concessions, Pablic Private Partnership PPP. It is necessary to create with the international credit institutions (EBRD, WB, EIB, IMF and other development banks) a sustainable model of financing infrastructure works throughout the region.

23. C. 7 Planned activities

A.1. Assistance for improved fiscal planning and analysis On the Page 22. RFP - As currently there is no modeling analytical unit in the Ministry of Finance, in order to expand the capabilities for fiscal accountability and fiscal oversight in BiH, this activity should train non-profit professionals in statistical modeling.

Question:

1. Does this activity implies setting up a pilot unit for modeling in the Ministries of Finance in BiH?

2. Can profit seeking professionals do the training services?

24. A.2 On the page 24...Strengthening of the FBiH and Republika Srpska Health Sector

Treasury Systems

1. In the Federation of BiH, USAID will select the pilot Cantons for inclusion of the health sector into the treasury operations.

1. Does the project pilot refer only to three Cantons in the Federation of BiH and according to which criterias the choice will be selected?

A: USAID and the Contractor will jointly decide how to achieve objectives under A.2.

2. Per Section A.2 it states that cantonal TS are no longer supported by principal provider Oracle, does this mean it is supported by a third party or TS employees?

A: USAID expects offerors to have a solid understanding of the development context.

25. A.5 Increased tax compliance, Activities: Address the widespread tax avoidance through offshore transactions.

Activities will include: Provide capacity building assistance to the TAs

1. Does the assistance refer also on the institutions with which Tax Administration exchanges data?

A: Offerors may include institutions in addition to the ones listed in A.5.

26. A.6 Improved quality of budgeting and public spending

Beneficiary: FBiH & Cantonal Ministries of Finance; Brcko District Focus of assistance:

Public Finance Management/Budget planning/Public expenditures.

1. Are these activities conducted in Republic of Srpska as well?

27. C.12 Critical Assumptions and Risks

Based on the current state of country’s political environment the following are the critical assumptions and risks that need to be taken into consideration.

1. Is it necessary to develop special risk management plan?

28. Section B.4 provides a price schedule with detailed line items and indicates that the line items may not be adjusted without a written modification from the contracting officer and that the contractor may not bill amounts in excess of the line items. Considering that the contract is a cost plus fixed-fee (CPFF) contract with contractor responsibility to manage costs within the total estimated costs, would USAID consider removing this language?

A: The language will be revised in Amendment 01 of the RFP.

29. Section B.10 indicates that the contractor must propose meaningful deliverables linked to the fixed fee, and Table 7 in Section F.8.1.b provides a deliverables table. Can USAID please clarify how the contractor should align the Table 7 deliverables with deliverables associated with the fixed fee?

A: Table 7 deliverables under Section F.8.1(b) are the basis for fixed fee payment schedule in Section B.10. Offerors need not include all the deliverables listed under Section F.8.1(b) in Table 3 Payment of Fixed Fee Schedule. As indicated in the RFP (Table 3), meaningful deliverables are to be proposed.

30. If offerors follow H.11 and establish salaries based on the market value of the position in the country of performance that is realistic and reasonable based on the responsibilities of the position, would USAID consider providing waivers should these salaries exceed the Mission’s local compensation plan (LCP)? We believe this would be necessary to be consistent with AIDAR 752.7007, “Personnel Compensation,” incorporated in the contract under Section H.10, which stipulates that personnel compensation be in accordance with the contractor’s established policies, procedures, and practices. The salary restriction of the Mission’s LCP maximum may preclude contractors from following their established policies, procedures, and practices, as required by AIDAR 752.7007.

A: Pursuant to AIDAR 722.170 “Employment of Third Country Nationals (TCNs) and Cooperating Country Nationals (CCNs)”, compensation, including merit or promotion increases paid to TCNs and CCNs may not, without the approval of the Mission Director or the Assistant Administrator having program responsibility for the project, exceed the prevailing compensation paid to personnel performing comparable work in the cooperating country as determined by the USAID Mission.

Therefore, LCP ranges provided under the RFP refer to maximum salaries for CCNs and TCNs employed under the contract. This is not in contradiction with AIDAR 752.7007 Personnel Compensation. For U.S. expatriate employees, if any, maximum salary must not exceed the USAID Contractor Salary Threshold (USAID CST) stated in USAID Automated Directives System (ADS) Chapter 302 USAID Direct Contracting.

31. Section H.23 states “All STTAs and consultants must be treated as subcontractors if they are not employees of the Contractor or subcontractors. The contractor must request Contracting Officer consent and submit the information required by the aforementioned clause for any subcontracts requiring consent but not listed above.” Based on FAR 31.205-33 (a), we respectfully ask USAID to consider the following revision: “Unless the consultant is engaged as labor and hence considered contractor personnel, they are considered a subcontractor subject to the applicable clauses and requirements.”

A: In accordance with 752.202-1 Definitions (e), Consultant shall mean any especially well qualified person who is engaged, on a temporary or intermittent basis to advise the Contractor and who is not an officer or employee of the Contractor who performs other duties for the Contractor. This is consistent with FAR 31.205-33(a), which defines professional and consultant services as those services rendered by persons who are members of a particular profession or possess a special skill and who are not officers or employees of the contractor.

Pursuant to FAR 52.244-2, consent to subcontract is required for any subcontract that is of the cost-reimbursement, time-and-materials, or labor-hour type; or is fixed-price and exceeds either the simplified acquisition threshold or 5 percent of the total estimated cost of the contract.

32. Section L.8.(4)(e) notes that the summary budget must reflect summary cost information for each of the base and option years. Could USAID please confirm there are no option years, and this section should only reference the five contract years and six one-month extension options?

A: USAID confirms that there are no option years, and this section should only reference the five contract years and six one-month extension options. This will be corrected in Amendment 01 of the RFP.

33. Section L.7.B.5 (page 138) states that a major subcontractor is “one whose proposed cost exceeds 15% of the offeror’s total proposed cost” while Section L.8.(4)(2) (page

142) states that a major subcontractor is “defined as one whose proposed cost exceed 20% of the Offeror’s total proposed cost.” Can USAID please confirm the correct percentage threshold for defining a “major subcontractor”?

A: A major subcontractor is one whose proposed cost exceeds 15% of the offeror’s total proposed cost. The discrepancy will be corrected in Amendment 01 of the RFP.

34. L.7.B.5(a)1 and 2 – USAID requires a list of “all relevant contracts for the past five years for the offeror and each major subcontractor for efforts similar to the work in the subject proposal,” as well as accompanying Contractor Performance Reports. Some offerors may have hundreds of contracts in such a list. Would USAID please consider limiting the number of contracts to be listed to 10 of the most recent and relevant contracts?

A: Yes, and this will be included in the amendment 01 of the RFP. USAID impresses on Offerors that L.7.B.4 also explicitly states “the most relevant indicators of performance are contracts of similar size, type of work, scope of work, and complexity/diversity of tasks and how recently they were performed.”

35. In section L.7.B.3 Factor 3 – Management Approach on page 138 of the solicitation, with regards to key personnel, USAID requests that offerors “indicate the key positions held, not the personnel by name.” Can USAID kindly clarify if offerors are able to profile staff as long as they are not named? Could USAID also kindly clarify whether offerors are allowed to name staff in the cost proposal?

A: In accordance with L.7.B.3 Factor 3 – Management Approach, offerors must provide the roles and responsibilities of all proposed positions (key and non-key).

Please indicate the key positions held, not the personnel by name.

36. On page 75, H.11 Additional requirements for personnel compensation, it states that “salary ranges of the compensation plan must be certified by the Contractor and submitted to the Contracting Officer for approval.” Page 143 says, “The detailed salary and benefit information for professional employees that the offeror provide in its cost proposal will be considered your professional compensation plan.” May Offerors submit a country compensation plan for approval in an annex to the cost proposal? This will facilitate a rapid mobilization upon Award.

A: Offerors may submit a country compensation plan for approval in an annex to the cost proposal.

37. On page 36, C.11 under Gender and Disability Considerations, it states, “The

Offeror/applicant shall include a disability inclusion plan specifically delineating how the project will address barriers for the people with disabilities relevant to the project and ensure equal access and disability inclusive development practices.” On page 136, USAID lists all of the Technical Proposal Annexes, and a disability inclusion plan is not included. Please confirm that the Disability Inclusion Plan can be submitted as an annex to the Technical proposal.

A: USAID confirms that the Disability Inclusion Plan must be submitted as an annex to the Technical proposal. This will be clarified in Amendment 01 of the

RFP.

38. On page 143, section (3) i Budget Narrative/Personnel, it states “Please note that no waivers to the U.S. Mission’s Local Compensation Plan for CCNs and TCNs employed under the contract will be provided.” Personnel in the fiscal, public financial management (PFM), and IT for PFM area are highly technical professionals, compensated at rates above the maximum annual rate in BAM. The limitation imposed on professionals in this area, both TCNs and CCNs, rigidly restricts offerors and forces them to find personnel that are necessarily U.S. expats or to lower the experience level and expertise of personnel to be proposed. Restricting compensation could therefore increase the cost to USAID. Would USAID consider removing the restriction on waivers for TCNs and CCNs, who serve as key personnel, on a case-by-case basis?

A: No waivers for TCNs and CCNs employed under the contract will be provided.

USAID/BiH holds that TCN and CCNs employees' fair and reasonable salary can be based on the USAID/BiH local compensation plan, ranges of which were provided in the RFP.

39. Can USAID please confirm that their definition of a major subcontractor for this bid is

15% (page 138) and not 20% (page 142)?

A: See response to Question 33 above.

40. Please confirm that Offerors may adjust the budget template and proposed cost categories per their required Cost Accounting Standards, for example with respect to how fringe and allowances are budgeted, and the addition of a line for subcontracts.

A: Yes, Offerors may adjust the budget template and proposed cost categories as long all requirements in Section L are met. Addition of a line for subcontractors is allowed. Please note L.8(4) requirement related to developing a full detailed budget worksheet for each major subcontractor, which has to be linked to the Prime’s in the same spreadsheet.

41. On page 67, the RFP states that, “the Contractor key personnel and/or consultants must have English and local language proficiency as needed, to perform contract requirements. “ Can USAID please confirm that in order to address this requirement, offerors can include the names, CVs and letters of commitment for proposed personnel and/or consultants as an annex in the technical proposal?

A: Please see L.7.B.3 Factor 3 – Management Approach for instructions. Section H containing the quoted language lists contractual requirements, not proposal submission instructions and requirements.

42. On page 136, the RFP states that, “Branding Implementation Plan and Marking Plan will not be subject to 30-Page limitation.” Then, on page 140, the RFP lists the, “the Draft Branding Implementation Strategy and Marking Plan,” as one of the pieces of the COST/BUSINESS PROPOSAL. Can USAID confirm where they would like offerors to place the Branding Implementation Plan and Marking Plan – in the technical or cost proposal?

A: Branding Implementation Plan and Marking Plan should be submitted as an annex to the cost/business proposal. This will be clarified in Amendment 01 of the

RFP.

43. “On page 138, Section L..7.B.5, the RFP states that the offeror must, “list in an annex to the technical proposal all relevant contracts for the a past five years.” However the RFP then provided Attachment J.3, which is a form to be used for past performance information. Can USAID please confirm that past performance information must be displayed in the Attachment J.3 form in an annex to the technical proposal and that as such, USAID does not want to see past performance in list form?

A: USAID confirms that past performance information must be displayed in the Attachment J.3 form in an annex to the technical proposal.

44. Can USAID please clarify if subcontractors need to fill their own information in tabs:

“Detail’ and “Travel?” Should prime and subcontractors present both of these tabs?

A: Please see instructions under Section L.8(4). For each major subcontractor (defined as one whose proposed cost exceeds 15% of the Offeror’s total proposed cost) the Offeror must include a full detailed budget worksheet linked to the Prime’s in the same spreadsheet.

45. Can USAID confirm if they require offerors to add six additional columns (one for each month) in the budget template for the six one-month extensions?

A: Yes, offerors must add six additional columns (one for each month) in the budget template for the six one-month extensions.

46. In the “Detail” tab in the budget template, there is no line item for subcontractors. Can

UASID confirm if offerors should add subcontractors’ costs in the contractual section?

A: Yes, please add subcontractors’ costs in the contractual section. Please note that for each major subcontractor the Offeror must include a full detailed budget worksheet linked to the Prime’s in the same spreadsheet. Budget narrative for major subcontractors must be provided as well.

47. When will the Fixed Fee estimated cost be determined and released?

A: In accordance with Section L.8(4), the offerors should propose a fee with rationale supported by application of the profit-analysis factors.

48. Will Indirect ceiling rates be published?

A: Indirect cost ceiling rates will be negotiated and incorporated in the contract.

This information will not be published.

49. What is the evaluation criteria weighting?

A: Please see Section M.4 Evaluation factors of the RFP.

50. When will TBD’s in the Contract Type section be disclosed?

A: TBD in the Contract Type Section will be incorporated in the award.

51. Is the incumbent contractor eligible to recompete?

A: There is no incumbent contractor. This procurement is conducted under full and open competition procedures, pursuant to Part 15 of the Federal Acquisition Regulations.

52. H.11 Additional requirements for personnel compensation

Limitations .... If, during contract performance, the Contractor proposes salary or wages for an individual(s) that exceeds the market value of the position, the cognizant Contracting Officer’s approval is required.

1. Which market is relevant for „market value“?

A: Please see the response to Question 30.

53. vii. Subcontracts- page 144 - Information sufficient to determine the reasonableness of the cost of each major subcontract (one whose proposed cost exceeds 15% of the offeror’s total proposed cost) must be included.

1. Who is considered to be „major subcontractor“- is the cost only criteria?

A: A major subcontract is one whose proposed cost exceeds 15% of the offeror’s total proposed cost.