RFP_72026319R00005_-_Economic_Courts_Activity_-_ECA.pdf

Request for Proposal (RFP) No.: 72026319R00005 Date Issued: November 7, 2019 Deadline for Questions: November 21, 2019, 3:00pm (Cairo Local Time) Closing Date: January 14, 2020, 3:00pm (Cairo Local Time)

SUBJECT: Request for Proposals (RFP) No.: 72026319R00005 Economic Courts Activity (ECA)

The United States Government, represented by the U.S. Agency for International Development (USAID)/Egypt is seeking proposals from qualified organizations to implement Economic Courts Activity (ECA). The purpose of this project is to support the Economic Courts of Egypt improve its ability to resolve cases in a more timely manner and consistent with international standards.

Subject to the availability of funds, USAID/Egypt anticipates awarding a Cost-Plus-Fixed-Fee completion-type contract as a result of this solicitation, covering an estimated period of five (5) years. The North American Industry Classification System (NAICS) code for this activity is 541990. The authorized geographic code is 937 (refer to attachment J.3).

All interested and qualified organizations are invited to submit a proposal in accordance with the requirements of the enclosed RFP No. 72026319R00005. This procurement will be conducted under full and open competition procedures, pursuant to Part 15 of the Federal Acquisition Regulation (FAR) (48 CFR Chapter 1). Proposals must be received by the Government no later than the local time on the due date stated above and in the RFP. Proposals received after the closing date and time will be processed in accordance with FAR 15.208.

Prior to the submission of proposals, amendments to this solicitation will be made available through the Government homepage at http://www.fbo.gov. It is the offeror’s responsibility to check this site periodically for official updates and amendments to the solicitation. Issuance of this solicitation does not obligate USAID to award a contract, nor does it commit USAID to pay for costs incurred in the preparation and submission of a proposal. Furthermore, USAID reserves the right to reject any and all offers, if such action is considered to be in the best interest of the U.S. Government.

Offerors should read the entire solicitation, which includes all pertinent technical sections and the terms, conditions and instructions required for submitting a proposal. By email only, please submit all questions regarding this RFP no later than the date and time listed above to Ms. Abeer Rizk at arizk@usaid.gov with a copy to Ms. Dina El Motei at delmotei@usaid.gov. Oral http://www.fbo.gov/ mailto:arizk@usaid.gov

RFP # 72026319R00005

instructions or explanations given before the award of the contract resulting from this solicitation will not be binding. Answers to all offerors’ questions will be provided in writing.

Thank you for your interest in USAID/Egypt programs.

Sincerely, /s/ Martin Fischer Contracting Officer

SOLICITATION, OFFER AND AWARD 1. THIS CONTRACT IS A RATED ORDER

UNDER DPAS (15 CFR 700)

RATING PAGE OF PAGE

(S)

N/A 1 117

2. CONTRACT NO. 3. SOLICITATION NO. 4. TYPE OF SOLICITATION 5. DATE ISSUED 6. REQUISITION/PURCHASE

REQ-263-19-000125

72026319R00005 ☐ SEA LED B ID (IFB )

☒ N EG O TIA TED (R FP)

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

USAID/ Egypt arizk@usaid.gov, and delmotei@usaid.gov

NOTE: In sealed bid solicitations “offer” and “Offeror” mean “bid” and “bidder”

SOLICITATION

9. Proposals are due electronically to the address shown in section L

CAUTION LATE Submissions, Modifications, and Withdrawals: See section L. All offers are subject to all terms and conditions contained in this solicitation.

10. A. NAME B. TELEPHONE NO. (NO COLLECT

CALLS)

C. E-MAIL ADDRESS

FOR

INFORMATI

ON

CALL:

See attached cover letter Intl CODE NUMBER EXT. arizk@usaid.gov and delmotei@usaid.gov

11. TABLE OF CONTENTS

(x) SEC

DESCRIPTION PAGE(S) (x) SEC. DESCRIPTION PAGE(S)

PART I - THE SCHEDULE PART II - CONTRACT CLAUSES

x A SOLICITATION/CONTRACT FORM x I CONTRACT CLAUSES x B SUPPLIES OR SERVICES AND PRICE/COST PART III - LIST OF DOCUMENTS, EXHIBITS AND OTHER ATTACH.

x C DESCRIPTION/SPECS./WORK STATEMENT x J LIST OF ATTACHMENTS x D PACKAGING AND MARKING PART IV - REPRESENTATIONS AND INSTRUCTIONS x E INSPECTION AND ACCEPTANCE x K REPRESENTATIONS, CERTIFICATIONS AND

OTHER STATEMENTS OF OFFERORS

x F DELIVERIES OR PERFORMANCE x G CONTRACT ADMINISTRATION DATA x L INSTRS., CONDS., AND NOTICES TO OFFERORS x H SPECIAL CONTRACT REQUIREMENTS x M EVALUATION FACTORS FOR AWARD

OFFER (Must be fully completed by Offeror)

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

about:blank

12. In compliance with the above, the undersigned agrees, if this offer is accepted within _____ 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 (%)

14. ACKNOWLEDGMENT OF AMENDMENTS

(The Offeror acknowledges receipt of amendments to the

SOLICITATION

for Offerors and related documents numbered and dated:

AMENDMENT NO. DATE AMENDMENT NO. DATE

15A. NAME AND

ADDRESS

OF

OFFEROR

CODE FACILITY 16. NAME AND TITLE OF PERSON AUTHORIZED TO SIGN OFFER (Type or print)

15B. TELEPHONE NUMBER ☐ 15C . C H EC K IF R EM ITTA N C E

ADDRESS

IS DIFFERENT FROM ABOVE –

ENTER

SUCH ADDRESS IN SCHEDULE.

17. SIGNATURE 18. OFFER DATE

AREA

CODE

NUMBER EXT.

AWARD (To be completed by Government)

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

All

22. AUTHORITY FOR USING OTHER THAN FULL AND OPEN COMPETITION: 23. SUBMIT INVOICES TO ADDRESS SHOWN IN ITEM

☐ 10 U .S.C . 2304(c) ( ) ☐ 41 U .S.C . 253(c) ( ) (4 copies unless otherwise specified)

24. ADMINISTERED BY (If other than Item 7)

CODE 25. PAYMENT WILL BE MADE BY CODE

Same as Item 7 Office of Financial Management

USAID Egypt

26. NAME OF Contracting Officer (Type or print) 27. UNITED STATES OF AMERICA 28. AWARD

DATE

/s/ Martin Fischer Contracting Officer

(Signature of Contracting Officer)

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

AUTHORIZED FOR LOCAL REPRODUCTION

Previous edition not usable.

33-133 STANDARD FORM 33 (Rev. 9-97)

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

SECTION B - SUPPLIES OR SERVICES/PRICES

B.1 PURPOSE

The purpose of this project is to support the Economic Courts of Egypt improve its ability to resolve cases quickly and transparently, consistent with international standards, as described in detail in Section C, Statement of Work.

B.2 CONTRACT TYPE

This is a Cost-Plus-Fixed-Fee (CPFF) Completion-type contract. For the consideration set forth below, the Contractor must achieve the performance objectives and provide the deliverables as described in Sections C and F and otherwise comply with all contract requirements.

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

(a) The estimated cost for the performance of the work required hereunder, exclusive of fee is: $______. The fixed fee is $ . The estimated cost plus fixed fee is $

(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 $ . The Contractor must not exceed the aforesaid obligated amount in accordance with Federal Acquisition Regulation (“FAR”) 52.232.22, “Limitation of Funds.” [NOTE: The actual amount to be obligated will be determined at the time of award.]

(c) Funds obligated hereunder are anticipated to be sufficient through {TBD based on the date of award}.

B.4 BUDGET

The total cost stated for the budget category specified below may not be adjusted without a modification to the contract signed by the Contracting Officer. No amounts in excess of the amounts specified for the budget will be billed to the Contract.

Item Total

Direct Cost $__________

Indirect Cost $__________

Total Cost $__________

B.5 PAYMENT OF FIXED FEE

Payment of the fixed fee will be made as follows. The Contractor’s fixed fee is tied to the accomplishment of performance objectives and deliverables or outputs described in Sections C, D and F that are specified in Table 1 below, subject to inspection and acceptance by USAID/Egypt as specified in section E, and otherwise in compliance with the terms of the contract and in accordance with work planning approved by USAID/Egypt. The contractor will be paid the amount of fee specified for each denoted performance objective, deliverable or output set forth in the table below upon acceptance by the Contracting Officer’s Representative (COR). Because the clause entitled “Allowable Cost and Payment” (FAR 52.216-8) is incorporated into the RFP and applicable to this order, the terms and conditions of this clause apply after total payments of fixed fee reach eighty‐five percent (85%) of the total fixed fee.

Table 1 – Fixed Fee Payment Schedule [Amount of fee to be filled by offerors and results to be filled in by offerors where indicated below and consistent with instructions in Section L.9.a.2.ii] # Performance Objective/Deliverable/Output Delivera ble Amount

1 Year 1 Annual Work Plan Approved

F.6.b $______

2 Gender Analysis F.6.f $______ 3 Process Analysis F.6.i $______ 4 Economic Courts Automation for Cairo

F.6.l

5 Economic Courts Automation for Alexandria

6 Economic Courts Automation for Port Said

7 Lessons Learned Analysis

F.6.k

8 Economic Courts Automation for Additional Economic Court #1

(as specified in annual workplans)

F.6.m

9 Economic Courts Automation for Additional Economic Court #2

10 Economic Courts Automation for Additional Economic Court #3

11 Economic Courts Automation for Additional Economic Court #4

12 Economic Courts Automation for Additional Economic Court #5

13 Successful completion of all services specified in Section C and all deliverables required in Section F

Sections C & F

B.6 INDIRECT COSTS

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

Description* Period** Rate Base***

* Description or type of rate indicated as a percentage, e.g., G&A ** Period, e.g., CY 2009 *** Base, e.g., Direct Labor for Labor Overhead

[RATES WILL BE INSERTED AT THE TIME OF AWARD]

B.7 COST REIMBURSEMENT

Allowable costs will be limited to reasonable, allocable and necessary costs determined in accordance with FAR 52.216-7, Allowable Cost and Payment (JUN 2013), FAR 52.216-8 (JUN 2011), Fixed Fee, if applicable, and AIDAR 752.7003 (NOV 1998), Documentation for Payment.

[END OF SECTION B]

SECTION C – STATEMENT OF WORK

C.1 TITLE OF ACTIVITY AND INTRODUCTION

The title of the activity is the Economic Courts Activity (ECA).

C.2 OBJECTIVE

The Economic Courts Activity will support the Economic Courts of Egypt to improve its ability to resolve cases in a more timely manner and consistent with international standards. The Activity includes the following three objectives:

Objective 1: To automate specialized functions within Economic Courts.

Objective 2: To improve transparency of functions and decisions of Economic Courts.

Objective 3: To bring about organizational change within the Economic Courts to support greater efficiency and transparency.

C.3 BACKGROUND

The following provides relevant background information, including general background, prior Rule of Law Activities and other additional background.

C.3.a General Background

Egypt’s rankings on the World Bank’s Worldwide Governance Indicators have declined since 2005 in the areas of Government Effectiveness, Regulatory Quality, Rule of Law and Control of Corruption.1 The GOE is making efforts to reverse this trend through increased government efficiency and accountability, and streamlining of business and investment related registration processes. The court system is seen as inefficient and documents mandated by law to be public are not easily accessible, in part because they are paper records. Further, few transactions are automated and instead require in person requests and the use of mail. As a result, courts have large case backlogs, long waiting times, and do not enjoy general confidence in solving cases in a timely manner. The Economic Courts, reportedly, are an improvement over the pre-2008 system, however, they are still faced with multiple challenges. Better knowledge of how courts decide commercial cases would help businesses and investors assess and manage risk.

According to a 2014 report from the Organization for Economic Cooperation and Development (OECD), there are several issues that inhibit foreign direct investment (FDI) in Egypt that are directly related to the operation of the economic courts2. A key finding from this report is that, “On a de jure basis, Egyptian law offers protection against expropriation, in practice there are instances where procedures to enforce claims are long and costly and where

1 http://info.worldbank.org/governance/wgi/index.aspx#reports

22014 OECD Business Climate Review of Egypt, Investment Policies and Public- Private Partnerships http://www.oecd.org/mena/competitiveness/BCR%20Egypt_April29_with_cover.pdf http://info.worldbank.org/governance/wgi/index.aspx#reports http://www.oecd.org/mena/competitiveness/BCR%20Egypt_April29_with_cover.pdf

Egyptian courts have not enforced arbitral awards related to expropriation rendered under [Bilateral Investment Treaties] or international contracts. Given the increasing number of cases linked to expropriation measures, it is important for Egypt to send a strong signal to the international investment community that disputes relating to contracts, privatization agreements, land and other property transactions are dealt with in an efficient, transparent manner in accordance with due process and Egypt’s international obligations.”3

The Egyptian Arbitration and Mediation Centre was established by Investment Law no. 72 of 2017 to settle investment disputes. Due to court delays, limited access to decisions, and other challenges, arbitration has emerged as the most common alternative dispute resolution method for commercial agreements in Egypt. To this end, special preparation offices situated within the economic courts are obligated to “exert their utmost efforts” in seeking conciliation between litigants. In addition, the Capital Market Law provides that arbitration will be the sole method of resolving disputes between actors on the securities market. These complement Egypt’s enactment of Law No. 27 of 1994 on Arbitration in Civil and Commercial Matters (“Arbitration Law”), which has made the country as one of the main arbitration hubs in the Middle East. Egypt is a signatory of the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards. Foreign judicial awards are therefore enforceable in Egypt with a few standard exceptions.

Another method of alternative dispute resolution, court-ordered mediation, conducted by “Preparation Panels,” has mixed results. Panels consist of two judges, who then consult with one expert from academia or the private sector who prepares recommendations and sends comments to the judges on the technical/commercial aspects of the case. In some cases, it is a meaningful negotiation between the two parties, in others, it is simply a required procedure and a rote exercise not leading to resolution and does not forestall litigation.

Further, the GOE has identified inefficiencies in government processes and systems, a lack of automation and transparency, and corruption as barriers to investment and economic growth.

They have prioritized better use of technology to enhance systems and make government services faster, more reliable, and more accessible, while reducing opportunities for corruption.

Given current case intake, processing, notification, and hearing procedures, there are numerous opportunities for low level, transactional corruption. Automation would limit, and eventually eliminate, these in-person transactions, speeding the process, improving access to documents and notifications, and removing impediments created by petty corruption. Further, the GOE views this application of technology as a means to improve government metrics and measurement of progress towards sustainable development goals.

As part of a structural reform package agreed to with the IMF, Egypt liberalized its currency in 2016, resulting in a 50 percent drop in the value of the Egyptian pound against the US dollar overnight. This devaluation and other austerity measures have contributed to inflation that stood at 7.8 percent in July 20194. The average Egyptian is feeling this through dramatically decreased

3 ibid page 39

4 https://www.egypttoday.com/Article/3/73697/Egypt%E2%80%99s-annual-inflation-declines-to-7-8-in-July-

CAPMAS

https://www.egypttoday.com/Article/3/73697/Egypt%E2%80%99s-annual-inflation-declines-to-7-8-in-July-CAPMAS https://www.egypttoday.com/Article/3/73697/Egypt%E2%80%99s-annual-inflation-declines-to-7-8-in-July-CAPMAS purchasing power for everyday goods and services. While these measures may be achieving some macroeconomic improvements, the government is under pressure to improve service delivery, and simplify requirements for small and medium enterprises (SME), and promote economic and employment opportunities. A key feature of future growth will be increased confidence that commercial disputes will be resolved quickly and equitably, and that remedies and decisions will be enforced.

C.3.b Prior Rule of Law Activities

The following USAID/Egypt rule of law activities have been completed:

Administration of Justice Support Project (AOJS) I and II 1999-2004 (USAID Contract No. 263-C-00-95-00134-00) and 2004-2009 (USAID Contract No. 263-C-OO-04-00028-00)

Under the Administration of Justice Project I and II, USAID/Egypt worked with the Ministry of Justice to reform Egypt’s civil and commercial courts. AOJS was implemented by AMIDEAST, NCSC, and several local sub-contractors. During AOJS I 24 Courts of First Instance was reformed and automated. AOJS II replicated and expanded reforms and automation in eight additional Courts of First Instance, provided training, and implemented an automated information management system for the Family Court Mediation Offices.

Continuing Legal Education for Young Lawyers in Egypt 2006-2016 (Grant No. 263-G-00- 06-00064-00)

The Cairo Regional Center for International Commercial Arbitration (CRCICA) and American Bar Association Rule of Law Initiative (ABA ROLI ) started a partnership in 2006 to provide continuing legal education for the Egyptian Legal Community. The Program strengthened the legal profession and improved the quality of professional legal education in Egypt by developing the capacity and capability of university law faculties to deliver quality interactive teaching, and providing opportunities for practicing lawyers and young graduates to strengthen their skills, with the ultimate goal of improving the quality of legal services in Egypt.

Final reports are available on the USAID Development Experience Clearinghouse (DEC).

Strengthening the Capacity of the Egyptian Judiciary 2014-2017 (Grant No. AID-263-A-15- 00001)

During the period from December 2014-2017, ABA ROLI implemented this activity that provided training on mediation, international conventions, and a variety of other legal topics (Court Management, Financial Crimes, Intellectual Property Rights, Judicial Ethics, and Communication Skills) to more than 2,000 Egyptian judges and Ministry of Justice officials helping to advance the effectiveness of judicial institutions, which is critical to Egypt’s reform goals. The activity also sought to strengthen the capacity of the National Center for Judicial Studies (NCJS) that leads training for all Egyptian judges.

Assessment of Economic Courts December 2018 (Contract No. AID-OAA-I-13-00024)

The purpose of this assessment was to provide USAID and its partners in the Ministry of

Investment and International Cooperation (MIIC) and the Ministry of Justice (MOJ), with a specific focus on the specialized Economic Courts, with a strategic plan for joint cooperation in the development of the Economic Court system. The assessment provided an analysis and recommendations for USAID engagement with the Economic Courts on projects such as automation of court filing and e-litigation procedures, and advanced training for judges in specialized commercial fields of study. The final assessment report is available on the USAID Development Experience Clearinghouse

(DEC).

https://dec.usaid.gov/dec/content/Detail_Presto.aspx?ctID=ODVhZjk4NWQtM2YyMi00YjRmLTkxNjktZTcx MjM2NDBmY2Uy&rID=NTIyNDE3&inr=VHJ1ZQ%3d%3d&dc=YWRk&rrtc=VHJ1ZQ%3d%3d&bckToL=

Reports on all the previous mentioned awards are available on the DEC website www.dec.gov and can be obtained by award number and/or project name.

C.3.c Additional Background

Egypt’s Sustainable Development Strategy (SDS): Egypt Vision 2030, provides a road map for Egypt to achieve sustainable development for a better life for all Egyptians. Within this framework, the GOE has identified Anti-Corruption, GDP, Market Competitiveness, Human Development and Quality of Life as priorities. Further, the GOE aims to improve public management systems and government services provided to citizens, and fight corruption in government agencies. The GOE envisions improved government efficiency and transparency through automation, staff training, and the development of systems to support the functions of government agencies in achieving these objectives.

Egypt’s Economic Courts were established in 2008 under Law 120/2008 in order to expedite investment related cases and thereby contribute to a better overall investment and business development climate in Egypt. These courts are part of the existing first instance trial and appellate structure, but are specialized, and handle both criminal and civil disputes arising from laws regulating bankruptcy, insurance, real estate, intellectual property, banking, investment, competition, and consumer protection, inter alia. The economic courts handle all criminal cases related to bankruptcy, insurance matters, joint stock companies, capital markets, financial leasing, central registration and deposit of securities, real estate financing, the protection of Intellectual Property rights, central bank, banking and monetary system, companies working in the field of fund receipt and protection of competition, prevention of monopolistic practices and consumer protection, regulation of telecommunication and regulation of electronic signatures.

The Economic Courts have first instance and appeal departments. The first instance Economic Courts handle litigation valued below 5 Million Egyptian Pounds (EGP), while the appeal courts will deal with all the cases and litigation with values above 5 Million EGP. Approximately 283 judges are assigned to the Economic Court system. An amendment to Law 120/2008 has been ratified by the Parliament in July 2019. The law, will, among other things, expand the jurisdiction of the Courts, increase the required value of cases and mandate the implementation of electronic filing.

https://dec.usaid.gov/dec/content/Detail_Presto.aspx?ctID=ODVhZjk4NWQtM2YyMi00YjRmLTkxNjktZTcxMjM2NDBmY2Uy&rID=NTIyNDE3&inr=VHJ1ZQ%3d%3d&dc=YWRk&rrtc=VHJ1ZQ%3d%3d&bckToL= https://dec.usaid.gov/dec/content/Detail_Presto.aspx?ctID=ODVhZjk4NWQtM2YyMi00YjRmLTkxNjktZTcxMjM2NDBmY2Uy&rID=NTIyNDE3&inr=VHJ1ZQ%3d%3d&dc=YWRk&rrtc=VHJ1ZQ%3d%3d&bckToL= http://www.dec.gov/

C.3.d Relationship to GOE and USAID Frameworks.

The primary GOE partners will be the Ministry of Justice (MOJ) and the Economic Courts, which are part of the Specialized Court system. This activity will contribute to a current government wide effort to automate and digitize functions throughout GOE Ministries.

It will also contribute to USAID priority of strengthening the transparency of governance systems through improved efficiency of public institutions, namely improved efficiency in case filing and processing in economic courts for faster resolution of cases. This priority area addresses the Journey to Self Reliance (J2SR) commitment and capacity metrics in the sub-areas of Liberal Democracy, Business Environment, Open Government, and Government Effectiveness.

C.4 OPERATING CONSTRAINTS AND GUIDANCE

The following operational guidance is provided that will be critical for the successful and sustainable implementation of this Activity and must be applied to all services and deliverables specified in the Contract. These constraints and guidance relate to: a. Work Planning Approach; b. Sustainability; c. Private Sector Engagement; d. Gender; e. Monitoring Evaluation and Learning; f. Geographic Focus; g. IT Equipment and Services; and h. Data Security and Integrity.

C.4.a Work Planning and General Management Approach

Automation is a government-wide directive, and there is strong motivation to show progress.

The Economic Courts are a promising test site, as they are well staffed, important to larger economic goals, newly-established, and offer a smaller, closed system in which to operate. At the same time, there are competing priorities, which could slow start up and implementation.

Ideally, this contract would begin with accurate case data. However, assessment teams have not been able to gain a good understanding of caseload or disposition, due in part to the lack of experience in automation and insufficient centralized record keeping. The Contractor needs to be aware of this issue and develop a strategy to collect this information in the initial start-up phase, as well as how the contract could proceed without it. This is specified in more detail in Sections C.5.b.ii, F.6.i and F.7.j.

The Contractor shall engage the GOE and other stakeholders in a consultative and participatory process to develop a realistic plan for the design and delivery of system configuration. The Contractor shall determine the commitment and level of resources the GOE will need to maintain and utilize any system developed under this program, including a detailed understanding of the process of payments for ongoing licensing needs, systems maintenance, electrical/server upgrades, and procurement of hardware. The Contractor shall determine the technical skills and abilities needed for the functioning of the system and make recommendations for the hiring of those staff by the MOJ. The Contractor shall also anticipate any potential risks or roadblocks, and present a plan for how the program will adapt and manage.

While the contract has three objectives, they are all related and necessary for the contract’s purpose which is to improve the efficiency and timeliness of case resolution and raise the quality of services provided by the Economic Courts. In the implementation of this contract, the Contractor shall integrate to the maximum extent practicable best practices and international standards in court service and decision-making into the automated systems being developed or applied.

C.4.b Sustainability

USAID promotes self-reliance by aligning our policies, strategies, resources, and program practices to strengthen the capacity and commitment of partner countries so they can better-plan, finance, and manage their own development. The GOE has tied improvement in the performance of the Economic Courts to an improved business climate, and a more favorable environment for Foreign Direct Investment (FDI). For the purposes of this project, sustainability shall be viewed as long term improvement in the functions and services provided by the Economic Courts, and their personnel, namely increased efficiency in case resolution, and quality of judgements. As businesses are the primary users of the Economic Courts, a more efficient system would thereby improve the user experience, increase confidence in the system, and eventually contribute to indicators used for the international measurements such as the World Bank’s Doing Business and World Governance Indicators.

The Contractor must first focus on understanding current processes and procedures in the Economic Courts, how well they work, who are the key stakeholders, and end users, and assess how automation will have the greatest impact. The program should focus on technology solutions that are appropriate to current conditions and users, and will be compatible with current automation systems and future GOE automation plans. In addition, the Contractor should consider system maintenance capacity in its sustainability plan, including budget implications for the MOJ.

USAID will continue conversations with MOJ and Economic Courts officials, along with the Contractor to ensure maintenance, sustainability and appropriateness of technology and equipment introduced through the program.

In addition, rather than focus on top-down advocacy for policy reform, the sustainability plan must focus more on working through local organizations, and the private sector for advocacy, to ensure that the appropriate infrastructure for policy reform is established. Finally, the sustainability plan must also address gender imbalances as it is widely believed to be a necessary condition for achieving sustainable growth.

C.4.c Private Sector Engagement

The private sector has a significant stake in the success of the GOE achieving its economic objectives. Private entities of all sizes and sectors see their costs increase and efficiency and profitably impaired due ineffective services at the institutional, procedural, and policy levels.

Private sector entities of all types play a role in communicating the urgency of reform and are critical for identifying problems and finding solutions that improve and promote economic inclusiveness and growth. The primary users of the economic courts are lawyers, businesses and other members of the private sector who can offer great insights on what they need from the courts. Therefore, it is essential that the Contractor consult with and take valuable input from lawyers, private businesses, and trade organization during the design and development of the activity and open constant lines of communication with them.

C.4.d Gender

Egypt persists in ranking very low in international comparisons of women’s participation in the economy. The 2018 Global Gender Gap Report ranks Egypt 139/149 in its index of economic participation and opportunity.5 Women are extremely underrepresented in the workforce, both due to low participation rates and high unemployment, especially for women with higher levels of education. Data from 2018 on unemployment for Egypt, for example, show male unemployment at 6.8 percent compared to 22.8 percent for women.6 The low unemployment rate for men approaches what economists would consider full employment, suggesting that any future growth in Egypt’s workforce and economy will depend on encouraging women’s employment.

Women are also underrepresented among Egyptian entrepreneurs, among micro-entrepreneurs, on company boards and as members and leaders within business associations. Women form the bulk of unpaid family labor working from home, a situation that has not contributed to improving their status within the family or community. The GOE has developed a National Strategy for the Empowerment of Women7 which prioritizes actions to advance four pillars: women’s political empowerment and leadership, women’s economic empowerment, women’s social empowerment, and women’s protection. The GOE further pledges to emphasize “the need for serious efforts to change the social culture and norms that limit women’s full participation, in addition to strengthening women’s access to their legal rights.”8

In order to support women’s economic empowerment and protection, the contractor will undertake a gender analysis of entrepreneurs, small and medium businesses, and their interactions with the Economic Courts. This analysis will include issues related to usage and accessibility and outcome of decisions of the Economic Courts for men and women owners of small and medium enterprises. Further, this analysis should identify legal barriers to business development or commercial dispute resolution (differentiated by sex) that could or should be addressed through better access to Economic Courts, and appropriate technology solutions. The contractor will measure participation rates of men and women court staff in technology development and training, and encourage women to be actively involved.

5 World Economic Forum. The Global Gender Gap Report 2018.

6 Daily News Egypt, November 15, 2018, quoting CAPMAS figures.

7 Egypt – National Council for Women (2017), National Strategy for the Empowerment of Egyptian Women 2030 Vision and Pillars.

8 Ibid., Preface

C.4.e Monitoring, Evaluation, and Learning (MEL)

Monitoring, evaluation, and learning should be used to measure each stage of program development and implementation, and to capture where and how results are being achieved. The information collected will be used to inform further program planning in partnership with the GOE and USAID.

A mid-term evaluation may be conducted through a USAID/Egypt mission-wide monitoring and evaluation mechanism. Additionally, a final evaluation or whole-of-project will be conducted at the end of the program to assess the achievement of the project purpose and sub-purposes or test the theory of change. The mid-term evaluation will focus on progress to date, identifying what is working as well as problems, and discuss possible project reorientation options as necessary.

The final evaluation will focus on the outcomes of USAID interventions. Generalized lessons learned for the development community are expected to be generated. The Contractor will be expected to cooperate fully with these evaluations.

USAID will promote Collaborating, Learning, and Adapting (CLA) among stakeholders during implementation. CLA objectives include:

● Generate Knowledge. The Contractor must generate new knowledge and evidence around learning questions identified together with USAID and other stakeholders, as well as questions that emerge during the course of implementation. In filling these knowledge and evidence gaps, the Contractor must provide reporting, data, analysis, and gather partners for inclusive reviews and validation of the activity goals and results.

● Share Knowledge. The Contractor must increase knowledge sharing with stakeholders, local organizations, GOE, sectoral experts, donors, regional and international organizations, and others to encourage more widespread learning across teams, mechanisms, and sectors. The Contractor must work together within a learning network to share information with implementing partners of other USAID activities, such as local stakeholders and other development partners. The Contractor must convene forums to share knowledge and also use existing forums within Egypt.

● Incorporate Agile and Adaptive Processes. The Contractor must develop adaptive management and implementation processes and must include an adaptive management plan within the annual work plans to allow course corrections to respond to unintended effects, changing/emerging realities, and priorities. Together with USAID, the Contractor’s activity work plan, quarterly reports, and periodic progress review meetings must provide a forum for an adaptive approach to change course based on data collected/analyzed, lessons learned and the evolving country context. The Contractor must prioritize activities together with the COR during work planning and review the prioritization during the quarterly reporting period. If circumstances arise, the Contractor may and should alter activity designs with approval from the COR to accommodate the window of opportunity, as long as the reprogramming (i) falls within the scope of work of this Contract, and (ii) does not hold the USG to incurring additional costs, in each case unless otherwise directed by the CO.

C.4.f Geographic Focus:

The focus of this activity is economic courts in Cairo, Alexandria and Port Said in the pilot phase. The activity can include all eight economic courts depending on the assessment phase.

C.4.g IT Software:

All software must be able to interface with other software and ensure that maintenance is not difficult over the long-term. Accordingly, it is expected that the use of off-the-shelf (OTS) case management system for basic court functions (e.g. case initiation, docketing and indexing;

scheduling; document generation and processing; hearings; dispositions; case closing; financial and accounting) will be optimal. These decisions must be made in consultation with Economic Court staff and officials, MOJ, USAID/Egypt, and other key stakeholders, such as the business and legal community, and other GOE Ministries. All technical solutions must be designed so that any resulting automation system will be compatible and/or interoperable with other GOE/MOJ automation efforts. Using open source software will help guarantee the MOJ is not required to use only one company for upgrading and maintaining the software. The Contractor will be expected to make cost effective recommendations for supporting technology, such as servers, cloud-based solutions, block chain technology and data architecture. Final determinations of the types of software that is optimal will be determined through the development and acceptance of the process analysis as specified in Sections C.5.b.ii, F.6.i and F.7.j.

C.4.h Data Security and Integrity:

The Economic Courts have wide jurisdiction over civil and criminal matters related to commercial activity, such as intellectual property, banking, stock market, and other sensitive matters. The Contractor shall provide data security and integrity solutions that will promote consumer confidence and protect private/proprietary data. The Contractor shall ensure the design of proper user access features that enable sharing of information and efficient case processing, while protecting sensitive personal and industry data, and system integrity.

C.5 SERVICES AND TASKS REQUIRED

The Contractor must provide the services and deliverables specified below. Services and deliverables shall be provided to achieve the objective set forth above, subject to the guidance and limitations specified herein. Specific services, activities and deliverables required will be established in the annual work plans approved by the Contracting Officer’s Representative (COR) and, when necessary, through modifications to work plans specified in writing by the COR. Such technical direction must be consistent with all of the terms and conditions of the Contract and the determinations of the Contracting Officer.

C.5.a Management and Administrative Services

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

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

⮚ The Contractor shall procure or lease necessary facilities, supplies and services as necessary to perform the Contract .

⮚ The Contractor shall provide the planning necessary for performance of the contract. As discussed in more detail elsewhere, approval of implementation and other plans are required.

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

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

⮚ Manage the overall reporting needs of the program as specified in the Contract and developed in work plans in conjunction with the COR.

C.5.b Technical Services

The Contractor must provide technical services designed to achieve the objectives of the Activity. ECA will be implemented in phases, and the Contractor shall engage in an iterative planning, design and delivery approach in partnership with USAID and the GOE. As discussed above, annual work plans and/or modification to the work plans will establish the specific services, activities and additional deliverables required. In addition, the performance milestones in the work plans will establish the basis on which performance will be evaluated.

ECA will support the GOE in upgrading and automating the Economic Courts’ functions and processes (i.e. case management and document filing systems) in order to increase efficiency, transparency, and accountability; thereby improving the experience of court users, namely commercial actors and the lawyers who represent them, individual business owners, and court staff. Upgrades will also improve internal court management, allowing court personnel to spend less time on time consuming administrative tasks. Flowing from the automation process will be increased availability of key court documents, greater transparency about Economic Courts processes, and heightened accountability of the judicial system to commercial users.

To promote this fundamental transformation in systems and processes, ECA will support the training and continuing education of the court’s administrative and judicial staff around specialized law topics that will be determined through a consultative process with the Ministry of Justice (MOJ), in addition to how to manage and adapt to change. Through the application of change management principles, the Contractor shall work closely with the Economic Courts’ staff at all levels to build consensus and buy-in to successfully implement the new processes associated with automation.

The theory of change is that: if Egypt’s Economic Courts are automated and their administrative and judicial staff are provided specialized training on legal topics and change management, commercial disputes can be resolved quickly to improve the environment for foreign direct investment.

The contractor will deliver recommendations, plans, development, installation, technical assistance, capacity building, ICT hardware, software and helpdesk support, and training to relevant stakeholders and counterparts, including the Ministry of Justice (MOJ), Economic Courts, and other relevant line ministry staff. The Contractor will coordinate with other development partners and donors to ensure complementarity of the activities and avoid any potential duplication of efforts. Contractors are encouraged to draw upon proven regional models and expertise, as appropriate.

As a result of the services and deliverables specified in the Contract, the following high-level goals should be achieved.

1. The Economic Courts resolve cases and issue decisions more efficiently and in accordance with applicable international standards.

2. The Economic Courts improve timely enforcement of decisions.

3. Increased knowledge of commercial law by judges, court staff, and other stakeholders.

4. Improved data collection and analysis used to improve function of Courts.

5. Improved court user experience through utilization of automated filing, access to documents, status of case or request, and final decisions.

6. Reduced number of in-person transactions and wait time for routine court functions.

7. Increased use of Economic Courts case documents and decisions by lawyers and other end-users.

8. Increased public awareness of Economic Courts case decisions and statistics.

These high-level goals are expected to be achieved through services and deliverables relating to the following three objectives.

C.5.b.i Objective One: To automate specialized functions within Economic Courts

Egypt’s MOJ has begun incrementally automating some aspects of its courts; however, the Economic Courts Activity is its first attempt to automate functions of the Economic Courts since their establishment. To this end, it is expected to be likely that an incremental approach will be required. This approach is most likely to begin with an Off the Shelf (OTS) software package to address basic court functions (taking into account its ability to interface with automation software already in use by the MOJ and availability of suitable open source products), as discussed in Section C.4.g above, while tailoring modules for Economic Courts and scaling up the intervention as the application proves successful and as requisite technical support systems become available. ECA will automate functions that slow case processing and adjudication times and are open to corruption or interference from low level clerks or officials. Applying process reengineering, the Contractor shall analyze the underlying issues that drive delays and examine loopholes that can easily be closed to eliminate low-level corruption.

The Contractor will analyze the process, develop, baseline data and proposed benchmarks for improvement, to include automation of basic court functions and automation of specialized functions of the Economic Courts. The Contractor shall identify, prioritize, and gain consensus from the main activity partners, in particular the MOJ, on the types of functions to automate, in what order, how to pilot and scale up, and how to promote usage of automated functions by court staff and access to information by the public. The Contractor shall identify key decision points and develop a strategy for gaining full concurrence with USAID/Egypt and the GOE/MOJ to move forward, or suggest alternatives as necessary. This analysis should be documented in Section F.6.i, subject to the requirements in Section F.7.j.

The Contractor shall plan to test both the ICT solution, as well as the business processes, at each stage of implementation. The ICT system shall be implemented in concert with other reforms, including, using automation as a management tool, backlog reduction and enhanced court information management services. At all stages, change management should be emphasized to encourage buy-in from system users and beneficiaries.

Based on the information in the process analysis, the Contractor shall support the GOE/MOJ to automate as many courts as is feasible given the time and money available. The Contractor shall select the Economic Courts in Cairo, Alexandria and Port Said for process improvement and determine cost estimates for installation and maintenance of case management system and document filing system(s). Successful automation of a court will be based on the benchmarks established in the process analysis and must be done without failing to complete other complimentary activities and services specified in the work plans for Objectives 1, 2 and 3.

The Contractor will then conduct a "lessons-learned" analysis based on the experience in completing the pilot phase, subject to the time specified in Section F.6.k and the content requirements specified in Section F.7.l. Based on funding and time available, the Contractor will propose a further rollout of improvements at up to five Economic Courts, to maximize the impact of this award. Successful automation of these Economic Courts will be based on the accomplishment of the benchmarks for improvement in the process and must be done without failing to complete other complimentary activities and services specified in the work plans for Objectives 1, 2 and 3.

Potential illustrative additional activities include:

● Automation of solvency certificates to remove the need for a party to physically visit the court, a search of the records by staff and the issuance of a certificate. 9

● Piloting initial electronic filing certificates for: bankruptcy; intellectual property;

9 There are already working models of these types of online services in Egypt. Birth certificates, for example, were identified by many people as a functioning online service. These models can serve as guidance and increase the levels of comfort with online services and electronic information.

corporate cases.

● Establishing a database of available experts for counsel and linking it to the case management system to allow the assignment of experts and the requests for and submission of reports to be automated.

C.5.b.ii Objective Two: To improve transparency of functions and decisions of Economic Courts

The Contractor shall identify, prioritize, and gain consensus from the main activity partners, in particular the MOJ, on the types of functions and proceedings that should improve transparency.

This will include in what order, how to pilot and scale up, and how to promote its usage by court staff and the public. The Contractor shall then implement the selected functions and proceedings for greater transparency.

According to law, all court decisions are public; however, there is no systematic way to ensure this information is available. Currently, an individual attorney must go to the court in person to request a copy of a particular court decision. This does not allow for broader legal analysis by scholars, lawyers, or potential investors.

At all stages of planning and implementation, the stakeholders who will be using the system should be consulted and involved in the planning and design of the systems to be used. A Program Management Unit or board of advisors to help guide planning and implementation comprising administrative and judicial staff members will help to resolve any issues with miscommunication, build buy-in and strengthen sustainability.

C.5.b.iii Objective 3: To bring about…