72027820R00001 - Request for Proposal (RFP).pdf

72027820R00001

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

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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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

720278

USAID/Jordan American Embassy PO Box 354 Amman, 11118, Jordan 11118

Alla'a J. Sawaked asawaked@usaid.gov

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PAGE(S)

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 ______________ calendar days (60 calendar days unless a different period is inserted

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LIST OF ACRONYMS

ACO Administrative Contracting Officer ADS Automated Directives System AMELP Activity Monitoring, Evaluation, and Learning Plan AIDAR International Development Acquisition Regulation AWP Annual Work Plan BEE Business Enabling Environment BEO Bureau Environmental Officer BIP Branding Implementation Plan CAGE Commercial and Government Entity CAS Cost Accounting Standards CCN Cooperating Country National CDCS Country Development Cooperation Strategy CDR Ceiling Daily Rates CE Categorical Exclusion CFA Cognizant Federal Auditor CFAO Cognizant Federal Agency Official CLA Collaboration, Learning, and Adaptation CO Contracting Officer COP Chief of Party COR Contracting Officer Representative COVID-19 Coronavirus Disease CPARS Contract Performance Assessment Reporting System CPFF Cost-Plus-Fixed-Fee CSP Cloud Service Provider CST Contractor Salary Threshold CUI Controlled Unclassified Information DDL Development Data Library DEC Development Experience Clearinghouse DFID Department of International Development (DFID) DLA Defense Logistics Agency DO Development Objective EA Environmental Assessment EFF Extended Fund Facility EIG Exit and Intervention Graduation Plan FAR Federal Acquisition Regulation FAPIIS Federal Awardee Performance and Integrity Information System FDI Foreign Direct Investment FedRAMP Federal Risk and Authorization Management Program ii

FICA Federal Insurance Contributions Act FIPS Federal Information Processing Standards FISMA Federal Information Security Management Act FMCG Fast Moving Consumer Goods FOIA Forensics, Freedom of Information Act FRPFM Fiscal Reform and Public Financial Management G&A General and Administrative GAO Government Accountability Office GBD General Budget Department GCI Global Competitiveness Index GDP Gross Domestic Product GFMIS Government Financial Management Information System GoJ Government of Jordan GUCs Grants under Contracts HR Human Resources IA Information Assurance Division IaaS Infrastructure as a Service ICT Information and Communication Technology IEE Initial Environmental Examination IMF International Monetary Fund IPN Implementing Partner Notices IPSAS International Public Sector Accounting Standards IR Intermediate Result IRS Internal Revenue Service ISTD Income and Sales Tax Department ISS Information System Security IT Information Technology JIC Jordan Investment Commission KOICA Korean International Cooperation Agency KONEPS Korean Online E-Procurement System KPI Key Performance Indicators LPA/PIPOS Bureau for Legislative and Public Affairs/Public Information, Production and Online Services M&M Mitigation and Monitoring MEL Monitoring, Evaluation, and Learning MEO Mission Environment Officer MIL Master Indicator list MODEE Ministry of Digital Economy and Entrepreneurship MoF Ministry of Finance MP Marking Plan iii

NATO North Atlantic Treaty Organization NCAGE NATO Cage NICRA Negotiated Indirect Cost Rate Agreement NIST National Institute of Standards and Technology NGO Non-Governmental Organization NSPA NATO Support and Procurement Agency ODC Other Direct Costs OH Overhead OFPP Office of Federal Procurement Policy OMB Office of Management and Budget PaaS Platform as a Service PBA Performance-Based Acquisition PEA Political Economy Analysis PER Public Expenditure Review PII Personally Identifiable Information PIRS Performance Indicator Reference Sheets PIV Personal Identity Verification PFM Public Financial Management PFMA Public Financial Management and Administration PPD Public Private Dialogue PPP Public Private Partnership PPS Public Procurement Service PRO Program Office PSA Public Service Announcement QASP Quality Assurance Surveillance Plan RF Results Framework RMS Results Management System ROB Result Oriented Budgeting SaaS Software as a Service SAM System for Award Management SBU Sensitive But Unclassified SF Standard Form SLAs Service Level Agreements SOQ Statement of Qualifications SOR System of Records SOW Statement of Work SP Special Publications SSN Social Security Number SSR Summary Subcontracting Report TCN Third Country National iv

TIC Trusted Internet Connection TIN Taxpayer Identification Number ToS Terms of Service UN United Nations VCS Visa Compliance System VEVRAA Vietnam Era Veterans’ Readjustment Assistance Act 3PAO Third Party Assessment Organization v

PART I - THE SCHEDULE 1

SECTION B - SUPPLIES OR SERVICES AND PRICE/COSTS 1

B.1 PURPOSE 1

B.2 CONTRACT TYPE AND SERVICES 1

B.3 ESTIMATED COST, FIXED FEE, AND OBLIGATED AMOUNT 1

B.5 COST REIMBURSABLE 3

B.6 INDIRECT COSTS 3

B.7 FIXED FEE CEILING 4

SECTION C - DESCRIPTION/SPECIFICATIONS/STATEMENT OF WORK 5

C.1 SUMMARY 5

C.2 BACKGROUND 5

C.3 STATEMENT OF WORK 7

C.4 IMPLEMENTATION CONSIDERATIONS 20

C.5 RELEVANT ANALYSIS 24

SECTION D - PACKAGING AND MARKING 25

D.1 AIDAR 752.7009 - MARKING (JAN 1993) 25

D.2 BRANDING AND MARKING POLICY 25

D.3 BRANDING STRATEGY 26

SECTION E - INSPECTION AND ACCEPTANCE 27

E.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE 27

E.2 INSPECTION AND ACCEPTANCE/RESPONSIBLE OFFICIAL 27

END OF SECTION E 27

SECTION F - DELIVERIES OR PERFORMANCE 28

F.1 NOTICE LISTING SOLICITATION PROVISIONS INCORPORATED BY

REFERENCE 28

F.2 PERIOD OF PERFORMANCE 28

F.3 PLACE OF PERFORMANCE 28

F.4 PERFORMANCE STANDARDS 28

F.5 KEY PERSONNEL 29

F.6 REPORTS AND DELIVERABLES OR OUTPUTS 31

SUMMARY OF PLANS, REPORTS AND OTHER DOCUMENTS 43

F.7 FIXED FEE PAYMENT SCHEDULE 45

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SECTION G - CONTRACT ADMINISTRATION DATA 46

G.1 AIDAR 752.7003 - DOCUMENTATION FOR PAYMENT (NOV 1998) 46

G.2 CONTRACTING OFFICER’S AUTHORITY 47

G.3 ADMINISTRATIVE CONTRACTING OFFICE 47

G.4 CONTRACTING OFFICER’S REPRESENTATIVE (COR) 48

G.5 PAYING OFFICE 48

G.6 CONTRACTOR’S PRIMARY POINT OF CONTACT 48

G.7 CONTRACTOR'S PAYMENT ADDRESS 48

G.8 ACCOUNTING AND APPROPRIATION DATA 49

G.9 TECHNICAL DIRECTION/RELATIONSHIP WITH USAID 49

G.10 LETTER OF CREDIT PAYMENTS RELATED TO GUCs 51

SECTION H - SPECIAL CONTRACT REQUIREMENTS 52

H.1 AIDAR 752.7001 - BIOGRAPHICAL DATA (JUL 1997) 52

H.2 ADDITIONAL REQUIREMENTS FOR PERSONNEL COMPENSATION 52

H.3 AUTHORIZED GEOGRAPHIC CODE 54

H.4 NONEXPENDABLE PROPERTY PURCHASES AND INFORMATION

TECHNOLOGY RESOURCES 55

H.5 DEFENSE BASE ACT (DBA) INSURANCE 55

H.6 LIFE SUPPORT AND SECURITY SERVICES 56

H.7 ELECTRONIC PAYMENTS SYSTEM 56

H.8 ADS 302.3.5.21 - SUBMISSION OF DATASETS TO THE DEVELOPMENT DATA

LIBRARY (DDL) (OCT 2014) 57

H.9 ADS 302.3.4.13 - GRANTS UNDER CONTRACTS (GUCs) – (SEP 2016) 59

H.10 LOGISTIC SUPPORT 59

H.11 FOREIGN GOVERNMENT DELEGATIONS TO INTERNATIONAL CONFERENCES

H.12 ENVIRONMENTAL COMPLIANCE 60

H.13 VALUE ADDED TAX AND CUSTOMS DUTIES 61

H.14 PRESS AND PRESS RELATIONS 61

H.15 PROHIBITION AND ASSISTANCE TO DRUG TRAFFICKING 61

H.16 GOVERNMENT FURNISHED FACILITIES OR PROPERTY 61

H.17 SOVEREIGN RELATIONSHIPS 62

H.18 U.S. CITIZENS REGISTRATION 62

H.19 TRAINET AND USAID SPONSORED J-1 VISAS 63

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H.20 MEETINGS WITH GOVERNMENT OF JORDAN MINISTERS 64

H.21 CONTRACTOR’S USE OF PROJECT VEHICLES 64

H.22 ADS 547 - MANAGEMENT OF INFORMATION TECHNOLOGY RESOURCES 64

H.23 INDIRECT COSTS FOR NON-U.S. ORGANIZATIONS 65

H.24 FOREIGN FUNDING TO LOCAL ORGANIZATIONS 66

H.25 ADS 302.3.5.19 - USAID-FINANCED THIRD-PARTY WEB SITES (NOV 2017) 66

H.26 COMPLIANCE WITH SECTION 508 OF THE REHABILITATION ACT OF 1973, AS

AMENDED 68

H.27 RESTRICTIONS AGAINST DISCLOSURE (MAY 2016) 68

H.28 INFORMATION TECHNOLOGY APPROVAL (APR 2018) (DEVIATION NO. M/OAA-

DEV-FAR-18-2c) 69

H.29 MEDIA AND INFORMATION HANDLING AND PROTECTION (APR 2018) 70

H.30 PRIVACY AND SECURITY INFORMATION TECHNOLOGY SYSTEM INCIDENT

REPORTING (APR 2018) 72

H.31 CLOUD COMPUTING (APR 2018) 77

H.32 COUNTRY CLEARANCE 84

PART II - CONTRACT CLAUSES 85

SECTION I - CONTRACT CLAUSES 85

I.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE 85

I.2 AIDAR CLAUSES INCORPORATED BY REFERENCE (MAR 2015) 89

I.3 AIDAR 752.7007 - PERSONNEL COMPENSATION (JULY 2007) 90

I.4 FAR 52.204-1 - APPROVAL OF CONTRACT (DEC 1989) 90

I.5 FAR 52.204-21 - BASIC SAFEGUARDING OF COVERED CONTRACTOR

INFORMATION SYSTEMS (JUN 2016) 90

I.6 FAR 52.222-35 - EQUAL OPPORTUNITY FOR VETERANS (OCT 2015) 92

I.7 FAR 52.222-36 - EQUAL OPPORTUNITY FOR WORKERS WITH DISABILITIES

(JUL 2014) 93

I.8 FAR 52.252-4 - ALTERATIONS IN CONTRACT (APR 1984) 93

I.9 AIDAR 752.232-70 - LETTER OF CREDIT ADVANCE PAYMENT (MAR 2015) 93

I.10 AIDAR 752.245-70 - GOVERNMENT PROPERTY—USAID REPORTING

REQUIREMENTS (OCT 2017) 94

I.11 AIDAR 752.229-71 - REPORTING OF FOREIGN TAXES (JUL 2007) 97

I.12 AIDAR 752.7013 - CONTRACTOR-MISSION RELATIONSHIPS (JUN 2018) (M/OAA-

DEV-AIDAR-18-04C) 98

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I.13 AIDAR 752.7032 - INTERNATIONAL TRAVEL APPROVAL AND NOTIFICATION

REQUIREMENTS (APR 2014) 99

I.14 AIDAR 752.222-70 - USAID DISABILITY POLICY (DEC 2004) 99

I.15 AIDAR 752.7036 - USAID IMPLEMENTING PARTNER NOTICES (IPN) PORTAL

FOR ACQUISITION (JULY 2014) 99

I.16 AIDAR 752.204-72 - ACCESS TO USAID FACILITIES AND USAID'S INFORMATION

SYSTEMS (APRIL 2018) (DEVIATION NO. M/OAA-DEV-AIDAR-18-2c) 101

PART III – LIST OF DOCUMENTS, EXHIBITS AND OTHER ATTACHMENTS 104

SECTION J - LIST OF ATTACHMENTS 104

PART IV - REPRESENTATIONS AND INSTRUCTIONS 105

SECTION K - REPRESENTATIONS, CERTIFICATIONS AND OTHER STATEMENTS OF

THE OFFEROR 105

K.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE 105

K.2 AGREEMENT ON, OR EXCEPTIONS TO, TERMS AND CONDITIONS 105

K.3 FAR 52.204-3 - TAXPAYER IDENTIFICATION (OCT 1998) 105

K.4 FAR 52.204-8 - ANNUAL REPRESENTATIONS AND CERTIFICATIONS (JAN 2020)

K.5 FAR 52.204-20 - PREDECESSOR OF OFFEROR (JUL 2016) 111

K.6 FAR 52.209-7 - INFORMATION REGARDING RESPONSIBILITY MATTERS (OCT

2018) 112

K.7 FAR 52.209-12 - CERTIFICATION REGARDING TAX MATTERS (FEB 2016) 113

K.8 FAR 52.209-13 - VIOLATION OF ARMS CONTROL TREATIES OR AGREEMENTS-

CERTIFICATION (JUN 2018) 114

K.9 FAR 52.204-24 - REPRESENTATION REGARDING CERTAIN

TELECOMMUNICATIONS AND VIDEO SURVEILLANCE OR EQUIPMENT (DEC

2019) 116

K.10 FAR 52.204-26 - COVERED TELECOMMUNICATIONS EQUIPMENT OR

SERVICES-REPRESENTATION (DEC 2019) 117

K.11 FAR 52.230-1 - COST ACCOUNTING STANDARDS NOTICES AND

CERTIFICATION (OCT 2015) 117

K.12 FAR 52.230-7 - PROPOSAL DISCLOSURE-COST ACCOUNTING PRACTICE

CHANGES (APR 2005) 121

SECTION L - INSTRUCTIONS, CONDITIONS, AND NOTICES TO OFFERORS 122

L.1 NOTICE LISTING SOLICITATION PROVISIONS INCORPORATED BY

REFERENCE 122

L.2 TYPE OF CONTRACT (APR 1984) 123

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L.3 SERVICE OF PROTEST (SEP 2006) 123

L.4 GENERAL INSTRUCTIONS TO OFFERORS 124

L.5 DELIVERY INSTRUCTIONS 125

L.6 INSTRUCTIONS FOR THE PREPARATION OF THE TECHNICAL PROPOSAL 126

L.7 INSTRUCTIONS FOR THE PREPARATION OF THE COST PROPOSAL 132

L.8 INSTRUCTIONS FOR THE PREPARATION OF BRANDING IMPLEMENTATION

AND MARKING PLANS 140

SECTION M – EVALUATION FACTORS FOR AWARD 141

M.1 GENERAL INFORMATION 142

M.2 TECHNICAL EVALUATION CRITERIA 142

M.3 COST PROPOSAL EVALUATION 146

M.4 DETERMINATION OF THE COMPETITIVE RANGE AND CONTRACT AWARD 147

M.5 SOURCE SELECTION 148

PART I - THE SCHEDULE

SECTION B - SUPPLIES OR SERVICES AND PRICE/COSTS

B.1 PURPOSE

The purpose of this contract is to provide technical assistance and services that fall within the Statement of Work (SOW) specified in Section C for the Public Financial Management and Administration (PFMA).

B.2 CONTRACT TYPE AND SERVICES

This is a Cost-Plus-Fixed-Fee (CPFF) completion contract. For the consideration set forth below, the Contractor shall provide the technical support specified in Section C, deliverables or outputs described in Section F, and 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 fixed fee, if any, is $ [___]. The fixed fee, if any, is $ [___]. The estimated cost plus fixed fee, if any, 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 shall not exceed the aforesaid obligated amount.

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

B.4 BUDGET AND CEILING PRICE

Line Item

Description Quantity Unit Unit Price Amount

0001 Base: Direct + Indirect (Year 1) 1 1 $ $

Base: Direct + Indirect (Year 2) 1 1 $ $

Base: Direct + Indirect (Year 3) 1 1 $ $

Base: Direct + Indirect (Year 4) 1 1 $ $

Base: Direct + Indirect (Year 5) 1 1 $ $

Total Estimated Cost $ $

Fixed Fee $ $

Total Estimated Cost + Fixed Fee $ $

Item

Description Quantity Unit Unit Price Amount

0002 Grants Under Contract (Year 1) 1 1 $ $

Grants Under Contract (Year 2) 1 1 $ $

Grants Under Contract (Year 3) 1 1 $ $

Grants Under Contract (Year 4) 1 1 $ $

Grants Under Contract (Year 5) 1 1 $ $

Total Estimated Cost $4,000,000 $4,000,000

Item

Description Quantity Unit Unit Price Amount

0003 Cross-cutting PFM Reform (Year 1) 1 1 $ $

Cross-cutting PFM Reform (Year 2) 1 1 $ $

Cross-cutting PFM Reform (Year 3) 1 1 $ $

Cross-cutting PFM Reform (Year 4) 1 1 $ $

Cross-cutting PFM Reform (Year 5) 1 1 $ $

Total Estimated Cost $3,500,000 $3,500,000

B.5 COST REIMBURSABLE

The U.S. dollar costs allowable shall be limited to reasonable, allocable and necessary costs determined in accordance with FAR 52.216-7, Allowable Cost and Payment, FAR 52.216-8, Fixed Fee, if applicable, FAR 52.232-20, Limitation of Cost, FAR 52.232-22, Limitation of Funds and AIDAR 752.7003, Documentation for Payment.

B.6 INDIRECT COSTS

Pending establishment of revised provisional or final indirect cost rates, allowable indirect costs must be reimbursed on the basis of the following negotiated provisional or predetermined rates and the appropriate bases for prime contractors and their major subcontractors.

Description Fringe Rate

Overhead Rate

G&A Rate

Prime contractor: [•]

Base of Application: [•]

Source: [•]

Period: [•]

Description Fringe Rate

Overhead Rate

G&A Rate

Subcontractor:

Base of Application: [•]

Source: [•]

Period: [•]

NOTE: Insert additional indirect rates as needed for the prime and major subcontractors in the above tables.

The Contractor is allowed to recoup indirect costs (OH, G&A, etc.) as Other Direct Costs (ODC) if it is part of the contractor’s usual accounting procedures, consistent with FAR Part 31 and the contractor's Negotiated Indirect Cost Rate Agreement (NICRA).

B.7 FIXED FEE CEILING

(a) Pursuant to the clauses entitled "Allowable Cost and Payment" (FAR 52.216-7) and "Fixed Fee" (FAR 52.216-8) are incorporated into this Contract, the terms and conditions of these clauses apply after total payments of fixed fee reach eighty-five percent (85%) of the total fixed fee.

(b) For Grants Under Contracts (GUC) administration purposes a separate Fixed Fee Ceiling is applicable, if found necessary.

In no event may the amount of fixed fee (if any) applicable to GUCs exceed [ ] percent (Offeror proposes ceiling percentage) of the Contract GUC cost.

END OF SECTION B

SECTION C - DESCRIPTION/SPECIFICATIONS/STATEMENT OF WORK

The Public Financial Management and Administration (PFMA) Activity

C.1 SUMMARY

A series of negative external shocks affected Jordan in significant ways, throwing its economy out of balance and threatening its internal security, calling for major reforms to the economy, including in the public financial management area. The goal of the five-year Public Financial Management and Administration Activity (PFMA) is to improve public financial management in Jordan. PFMA will help improve the performance and efficiency of the Jordanian revenue system and will enhance the budget management process. This will be achieved by building the capacity of the Jordanian Ministry of Finance (MoF) and other Government of Jordan (GoJ) institutions to modernize the revenue collection system, encourage compliance, ease taxpayer ability to comply with tax obligations, improve budget planning, preparation and execution, and improve the public procurement management. The activity will contribute to increased economic stability within the Hashemite Kingdom of Jordan.

C.2 BACKGROUND

The Global Financial Crisis of 2008-2009 coupled with a series of negative regional shocks, negatively affected Jordan's economy. Foreign Direct Investment (FDI), which averaged 13% of Jordan’s Gross Domestic Product (GDP) between 2003- 2009, fell to 5.1% of GDP on average over the period of 2010-2017. Conflict in the region led to reduced demand from key export markets and cut off important trade routes. The fall in exports to Syria and Iraq alone represented over 11% of GDP after 2011. Regional conflicts brought a massive wave of migrants and refugees into Jordan, resulting in an unprecedented net population increase. The region’s instability also negatively impacted the cost of energy. Iraq stopped subsidizing its oil shipments to Jordan in 2004 and the Egyptian natural gas pipeline to Jordan suffered numerous disruptions in 2011, forcing Jordan to import expensive heavy fuels at a time of record prices, furthering pressures on its balance of payment and its fiscal accounts.

Export growth in Jordan decelerated between 2009 and 2013 as global trade slowed down and Jordan’s market share gains in garment and chemical exports stagnated. Exports continued to decelerate between 2014 and 2016, reflecting a decrease of an additional 13%, as trade with and through Iraq and Syria collapsed. This downturn was particularly sharp in agriculture, transport and tourism sectors. The Jordanian economy reacted to these economic shocks by curbing imports, from an average of 79.4% of GDP over the expansion period of 2000-2008 to 56.2% in 2017. In spite of this very sharp adjustment, the current account deficit remains above 8% of GDP.

The curbing of exports and the decrease of imports had a significant negative impact on tax revenues collected. To counter the reduction of tax revenues collected, the GOJ reduced its net domestic spending of domestic revenue to 8.1% between 2011 and 2017. This adjustment was accomplished by increasing indirect taxes, eliminating subsidies, and reducing public investment.

For the same period, the six-year adjustment was significantly larger than those registered in Spain (4.6% of GDP, 2009-2015), Portugal (6.1%, 2010-2016), and Greece (10.7%, 2010-2016).

In spite of such a large fiscal consolidation, the overall economy displayed extraordinary resilience, continuing to grow at an average rate of 2.0% over 2011-2017. However, because of the increase of migrant and refugee population in Jordan, this was a major factor into the contraction of 12% in per capita income over the same period. Unemployment has risen to 18.7%, with especially high unemployment rates among women (28.1%) and youth (39.7%).

Jordan’s debt-to-GDP ratio rose from about 65 percent in 2011 to about 94.6 percent in mid 2019.

Going forward, slow growth makes continued fiscal consolidation difficult. At the same time, further fiscal consolidation poses a serious challenge for inclusive growth, as well as for political stability. In order to achieve macroeconomic sustainability, Jordan’s fiscal reforms need to be complemented by strategies to reduce the cost of debt finance and to re-ignite export-led growth.

Jordan continues to face significant macroeconomic challenges and it stands at a critical point in its journey to achieve economic stability. With several structural reforms and the reopening of borders with Iraq and Syria in 2018, there is cautious optimism.

The GoJ is committed to implement fiscal, monetary, and financial sector policy reforms which will protect the Jordanian economy from regional shocks, and stimulate economic growth.

The GoJ has been recently active in defining its reform priorities for public financial management.

They include, but are not limited to:

● Adjust and improve public spending efficiency:

○ Implement and deploy the public Electronic Inventory Management System (medicines and supplies).

○ Develop a unified Procurement System.

○ Implementation of Results Oriented Budgeting.

● Fair distribution of the tax burden:

○ Adjust the share of the sales tax burden gradually

● Tax Evasion Measures:

○ Insert an item in the income tax bill that requires issuance of invoices so that business transactions are tracked and tax collected.

○ Implement an Electronic invoicing System

○ Implement extensive financial penalties that will lead to imprisonment of evaders.

○ Consolidate the prosecution of tax evasion cases to the Judiciary Branch..

○ Establish a coordination group composed of members of regulatory bodies to address the problem of tax evasion and recommend actionable solutions.

The GoJ has recently made progress in implementing structural measures, most notably the passage of a new income tax law, and enacting a broad range of laws designed to improve the business enabling environment.

However, foundations for efficient tax systems are not complete. The taxpayer register has low reliability, taxpayer use of e-services is still low, analysis and evaluation of tax administration operations are inadequate, strategic approach to compliance risk management is lacking, rate of tax arrears is high, and formalized tax ruling system is absent. In addition, budget preparation and execution processes need to be enhanced, public procurement systems need to be reformed, and capacity to monitor, evaluate and support an effective audit function needs to be built up. The MoF needs organizational restructuring, enhanced business processes, and a new revenue management system, as well as more and better trained staff.

C.3 STATEMENT OF WORK

PFMA Results Framework

The goal of the PFMA is to improve Public Financial Management. The theory of change is that IF the efficiency of the revenue raising system is improved, the budget management process is streamlined, and public expenditure management is optimized to complement and contribute to a better allocation of government spending, THEN the goal of improved public financial management can be achieved. The four objectives of the PFMA are: Objective 1: Improve Revenue Raising System; Objective 2: Streamline the Budget Management Process; Objective 3: Optimize Public Expenditure Management; and Objective 4: Cross-cutting Public Financial Management (PFM) Reform. The execution of these objectives will strengthen fiscal sustainability of the GoJ, reduce obstacles to economic growth in Jordan, build the capacity of the GoJ to manage the economy, improve performance of revenue administration, and ensure transparent budget management and public procurement process in accordance with international best practices.

PFMA is a key component of USAID/Jordan’s Country Development Cooperation Strategy (CDCS) Goal of Improved Prosperity, Accountability, and Equality for a Stable, Democratic Jordan. The activity is designed to help achieve Development Objective (DO) #1: To accelerate Broad-based Economic Development. PFMA is the main implementing mechanism for Intermediate Result (IR) #1.3: To improve Fiscal stability and public financial management.

The PFMA Activity will achieve, at a minimum, the following outcomes/results:

● Macroeconomic stability achieved by decreasing the gap between spending and revenues.

● Enhanced revenue performance by improving the government’s tax efficiency and capacity to establish effective tax policies and administrative systems.

● Improved allocation of public resources and achieve the efficiency of resource utilization and effectiveness of public service delivery.

● Improved budget execution oversight through internal and external auditing.

● Strengthened public accountability for performance through implementing result oriented budgeting and organizational restructuring.

● Enhanced higher authorities’ decision making process through improvement of the quality of financial reporting.

● Academic and professional partnerships developed to provide the Ministry of Finance with the skilled personnel.

PFMA’s objectives, below, and the goal level areas are shown in the PFMA results framework (Attachment J9):

Objective/Component 1: Improve Revenue Raising System Objective/Component 2: Streamline Efficient Budget Management Process Objective/Component 3: Optimize Public Expenditure Management Objective/Component 4: Cross Cutting PFM Reform

Objective/Component 1: Improve Revenue Raising System

Strengthening fiscal control and revenue administration, as well as implementing an electronic revenue management system are critical elements required to build up a modern revenue administration system in Jordan. These elements form the two sub-objectives for this component, and are laid out in detail below. The Mission expects offerors to include in their proposal interventions with the highest expected impacts. The required inputs are technical assistance, training, and when appropriate, special equipment such as computer systems/software, and office equipment.

Sub-Objective 1.1: Fiscal Control and Revenue Administration Strengthened

Despite recent progress achieved in improving the tax system in Jordan, significant challenges remain for the MoF to continue its efforts in modernizing the tax regime. This regime continues to suffer from a number of structural weaknesses that reduce the fairness and the efficiency of the tax system, such as the poor performance in collecting taxes from the self-employed or taxes on investment income. PFMA will assist the public sector to improve revenue administration processes and combat tax evasion. In addition, the GoJ requires technical assistance to reduce tax arrears and reduce the number and amounts of tax cases under appeal.

There is a need to support MoF to conduct sophisticated tax and customs policy analysis, develop policy recommendations, estimate the revenue, distributional and economic impacts of current and future tax changes, and draft tax legislation in accordance with international best practices.

Anticipated results under sub-Objective 1.1 include:

● Tax administration is reorganized along functional lines

● Improved tax policies and the administration of the taxation framework.

● Minimized tax evasion.

● Rationalized tax burden of different sectors.

● Broader citizen engagement around tax and public expenditures is created.

● Tax policy making is strengthened.

● Improved audit and controls practices at revenue departments.

● Improved dispute management system at Income and Sales Tax Department (ISTD).

Illustrative activities are listed below. These are not intended to be comprehensive, but are examples for offerors to consider tasks to be proposed as a means to achieve the anticipated results:

● Provide technical assistance to GoJ to reorganize the tax administration along functional lines (e.g. processing, auditing, collections, taxpayer service, and appeals) to replace the current structure based on source of revenue (e.g. customs, and income and sales tax), and create a unified revenue commission incorporating tax and customs. It is not anticipated that the commission will include non-tax revenues at its inception.

● Provide technical assistance to GoJ to make tax procedures consistent while reducing compliance costs for taxpayers.

● Provide technical assistance to the GoJ to develop and implement tax administration initiatives and policies that aim to improve tax compliance and combat tax evasion.

● Provide technical assistance to MoF to execute its plans to expand its taxpayer base.

● Improve fiscal control and audit activities within ISTD.

● Provide technical assistance to the MoF to increase the degree to which dispute outcomes are acted upon.

● Provide technical assistance toProvide technical assistance to MoF to process tax refund claims in a timely manner.

● Provide technical assistance to the MoF to expand its reporting system to include additional tax reports and dashboards.

● Encourage voluntary compliance by taxpayers.

● Provide technical assistance to the MoF in developing and conducting taxpayers’ awareness and communications campaigns.

● Support the reduction in net tax arrears through improved targeting, collections, and enforcement actions.

● Provide technical assistance to the MoF Human Resource (HR) system to develop and retain skilled staff.

Sub-Objective 1.2: Electronic Revenue Management System Implemented

A key priority of the MOF revenue system process is to provide professional taxpayer services.

The MoF has a mandate to improve taxpayer services through a combination of initiatives; these include establishing a taxpayer Contact Center and developing an electronic Revenue Management System (RMS).

The Implementing Partner will provide technical assistance to the MoF to establish the contact center and to design, develop and implement the RMS which will enhance the revenue collection, increase efficiency, and improve compliance in an atmosphere of shrinking resources.

The RMS will be built on a user-friendly and robust platform and will include all data in a single database. It will capture unified business registration, taxpayers’ records, and payments. It will be used by revenue administration for activities such as collections, enforcements, and audits. The RMS will be connected to all MoF revenue offices as well as to other Ministries such as the Ministry of Trade and Industry in order to identify non-registered traders at revenue departments.

It will also be connected with an interface to the Government Financial Management Information System (GFMIS). It is anticipated that the GoJ will fund the purchase of the RMS software and PFMA will fund its development (through technical assistance) and procurement of hardware as needed.

Technical assistance provided by PFMA will improve taxpayer services and reduce tax filing compliance costs, use the GFMISfor audits and promote higher levels of voluntary taxpayer compliance through the RMS.

The Implementing Partner will assist the MoF to apply the RMS to identify and bill non-filers, stop-filers, and late payers or under-payers and also to encourage simplified e-filing for taxpayers.

Anticipated results under Sub-Objective 1.2 include:

● Electronic Revenue Management System is fully functioning.

● Online tax services and information are provided to taxpayers.

● Better case management tracking for tax collection, audit, and appeals cases.

● Complex procedures for the payment and verification of taxes are reduced.

● Accuracy of the taxpayer data is improved and variance between forecast and actual tax revenues is reduced.

● Enhanced reporting in order to focus resources on higher-revenue generating activities.

● Better customer services through answering the taxpayers queries in a timely manner.

● Better case management tracking for tax collection, audit, and appeals cases.

● Increased collection/reduced value of outstanding tax arrears.

● Improved tax audits process.

Illustrative activities are listed below. These are not intended to be comprehensive, but are examples for offerors to consider tasks to be proposed as a means to achieve the anticipated results:

● Provide technical assistance to the GoJ to re-engineer the business processes at Revenue departments.

● Provide technical assistance to the GoJ to implement an electronic Revenue Management System (RMS) by providing technical assistance and training during the implementation.

Specific IT equipment can be provided by PFMA.

● Support to the MOF to establish a contact center at the Income and Sales Tax Department (ISTD) to provide efficient services to the taxpayers.

● Provide technical assistance to improve capacities of the IT specialists at ISTD to implement and maintain the new systems.

● Change business practices and incentive structure to increase the use of automation which will reduce opportunities for rent-seeking.

● Expand and maintain an up-to-date database of taxpayer records and taxpayer financial status.

● Improve capacity for risk-based tax auditing using IT applications.

● Ensure public outreach on the improvement of taxpayer services.

● Improve revenue forecasting.

Objective/Component 2: Streamline Efficient Budget Management Process

PFMA will provide technical assistance to the GoJ to improve its budget preparation and execution, effectively manage public expenditures, and enhance the organizational system of the procurement entities and improve the quality of its workforce. The Implementing Partner will develop a change management plan to provide the GoJ with a strategic approach that will recommend changes to existing processes, systems, and structures in order to improve GoJ’s public procurement processes. This needs to be planned in advance through a clear and adaptable methodology. The Implementing Partner is requested to ensure that the government will be able to continue the work after the activity ends. This can be ensured through capacity building, knowledge transfer, job shadowing, and finding the self-reliance advocates that can support the change and encourage the government to develop the capacity to manage and maintain the new system and structure. The required inputs are technical assistance, training, and when appropriate, special equipment such as computer systems/software, and office equipment.

Sub-Objective 2.1: Budget Preparation Process Strengthened

It is critical for the GoJ to improve the budget planning and preparation process. The budget planning and preparation framework is input focused with insufficient focus on government policy priorities and outputs. The current monitoring and evaluation system at the General Budget Department (GBD) is inadequate for effective assessment and results are not used for budget allocation decisions or for performance improvement decisions.

PFMA will provide technical assistance to continue implementing Result Oriented Budgeting (ROB) and organizational structure improvements for the budget entities to increase the focus on service delivery, improve coordination and oversight changes. This will strengthen public accountability for performance. PFMA will also promote gender responsive budgeting, incorporating gender equality principles into all stages of the budget process.

The Implementing Partner will provide technical assistance to the budget staff at GBD to be able to implement new techniques so that the budget is more transparent in tracking expenditures, and is more reflective of GoJ decisions, leading to a more efficient use of budget resources. In this regard, technical assistance will also be extended to line ministries when needed.

USAID/Jordan has invested significant resources to implement the Government Financial Management Information System (GFMIS) to standardize the life-cycle of budget preparation, budget execution, and financial reporting processes. GFMIS is still not fully utilized in the budget preparation area including the Hyperion system features, project management module and costing module. The Implementing Partner will provide technical assistance to the MoF and GBD to activate and implement these modules, taking into consideration that any required software licenses will be paid by the GOJ, not PFMA.

USAID/Jordan envisions that additional technical assistance will be required to develop and customize reports through the utilization of the business intelligence features within the GFMIS and to ensure that Ministries across the GoJ utilize the GFMIS in budget decisions..

Anticipated results under Sub-Objective 2.1include:

● A direct relationship between performance information and budget decision is created.

● Improved alignment of budget expenditures and government priorities within the available resources.

● Key GBD staff are well trained and lead the budget staff at line ministries to implement

ROB.

● Promoted gender responsive budgeting and improved alignment of allocations with gender priorities and commitments within the available resources.

● Established monitoring and evaluation systems for budget performance.

● Central Government budget book prepared through GFMIS – Hyperion module.

● GFMIS is fully utilized and its modules implemented.

examples for offerors to consider tasks to be proposed as a means to achieve the anticipated results:

● Provide technical assistance to the GBD to apply the needed improvements to strengthen connections between strategic top-down planning and bottom-up budgetary processes.

● Provide technical assistance to the GoJ to increase the use of results-oriented budgeting and gender-responsive budgeting.

● Provide technical assistance to the government to identify annual strategic priorities and performance indicators for the GoJ to allocate budget resources accordingly.

● Provide technical assistance to GBD to undertake mid-term budget review to make the budget more adaptable and consistent with fiscal changes.

● Provide technical assistance to the GoJ to set up monitoring and evaluation systems to provide the needed analysis and assessments of the budget performance.

● Provide technical assistance to the GBD to use GFMIS in the budget preparation process through fully activating the Hyperion and the Project Management modules.

● Provide technical assistance to the GoJ to expand the functionality of GFMIS to track payroll and personnel data through the integration with the Civil Service Bureau.

Sub-Objective 2.2: Budget Execution Improved

To increase fiscal sustainability, the GoJ needs to significantly improve the public expenditure management and the control of expenditure, both of which are essential for efficient and effective resource management. PFMA will provide technical assistance to the GoJ to monitor the budgetary performance of line ministries/departments and ensure the alignment of public expenditures with total revenues and allocative efficiency through the conformance of budgetary allocations with strategic priorities.

Public funds and assets are vulnerable to waste, fraud, and abuse. The Implementing Partner will work with the MoF and the Audit Bureau to strengthen internal and external audit processes.. This includes improving the current audit process based on international auditing standards, strengthening requirements for cooperation between the Audit Bureau and the internal audit control units, and enhancing coordination with other related accountability mechanisms (e.g. Anti- Corruption Commission, Ombudsman Bureau) and the General Budget Department.

The Implementing Partner is to provide technical assistance to the MOF to implement new techniques to track expenditures, compliant with international accounting standards (e.g.

International Public Sector Accounting Standards (IPSAS)), and utilize the GFMIS to strengthen expenditure controls and regular reporting, leading to more efficient use of budget resources.

PFMA will also encourage the role of non-governmental organizations and civil society organizations in monitoring budget execution through sharing reports and information on budget implementation, to compare budget allocations with actual spending.

Anticipated results under Sub-Objective 2.2 include:

● The central budget is reflective of better informed policy decisions regarding government expenditures.

● Central budget provides a complete breakdown of all budget expenditures, activities financed, outputs produced, and results achieved.

● Improved budget institutions Key Performance Indicators (KPI) to support transition to more focused ROB through the PER feedback.

● The GFMIS is fully utilized for Public Expenditure Management.

● Accrual-Based International Public Sector Accounting Standards are applied.

● Increased number of performance audits performed according to international audit standards.

● Internal audit at the MoF is strengthened.

● Incorporation of audit findings and corrective actions by GoJ Ministries/departments to improve cost and quality of GoJ services.

● Improved quality of financial reporting system in the GoJ.

Illustrative activities are listed below. These are not intended to be comprehensive, but are examples for offerors to consider tasks to be proposed as a means to achieve the anticipated results:

● Provide technical assistance to the GoJ to undertake comprehensive periodic Public Expenditure Review (PER) for budget institutions in coordination with MoF.

● Provide technical assistance to the GBD to improve the budget institutions KPIs.

● Provide technical assistance to the GoJ to implement IPSAS through providing technical assistance.

● Provide technical assistance to the GoJ to develop the principles of expenditure reductions and the strategies for reducing or slowing down the rate of spending.

● Provide technical assistance to the GoJ to apply the needed upgrades to GFMIS and conduct its customization for better expenditure control and more accurate reporting.

● Train staff on modern audit techniques, including risk-based techniques, and develop the risk-based criteria.

● Develop/use of feedback instruments and mechanisms to provide the Ministries with audit results, corrective actions and follow-ups to ensure that the corrective actions are implemented.

● Develop and use of performance indicators for the Audit Bureau and enhance the role of internal control units within line Ministries.

Objective/Component 3: Optimize Public Expenditure Management

Reforms to improve the transparency and integrity of government procurement and inventory management systems are one of the GoJ priorities. The Implementing Partner will support the GoJ to promote a more effective and responsive public procurement system. It will also support reforms and improvements for the public inventory management system. The required inputs are technical assistance, training, and when appropriate, special equipment such as computer systems/software, and office equipment.

Sub-Objective 3.1: Public Procurement Process Institutionalized

The procurement system in Jordan consists of the three entities (The Government Tenders Department which is responsible for construction, the General Supplies Department that handles the procurement of government’s supplies, and the Unified Purchasing Department which purchases the medicines). The Government of Jordan will restructure these entities for the purpose of merging them under one Department.

The GoJ has implemented an electronic procurement business solution for governmental public sector institutions. The Korean Online E-procurement System (KONEPS), modified for Jordan, and is currently being tested under a pilot program. The new system (called JONEPS) was developed under the direction of the Korea International Cooperation Agency (KOICA) and the Public Procurement Service (PPS). Properly linking JONEPS to the GFMIS for commitment control and inventory management will be critical to improved financial management.

The Implementing Partner will provide technical assistance to improve public procurement management through enhancing the organizational system by improving its structure, operation and the quality of its workforce.

Anticipated results under Sub-Objective 3.1 include:

● Fully integrated and efficient e-procurement system.

● Enhanced organizational system of the procurement entities.

● Better decision making regarding government procurements.

examples for offerors to consider tasks to be proposed as a means to achieve the anticipated results:

● Develop effective policies and legislation to enhance the transparency and efficiency of the procurement system.

● Advance best practices in e-procurement and public procurement management.

Sub-Objective 3.2: Inventory Management Improved

The GoJ has implemented an Inventory Management System which is hosted at the General Supplies Department. The cabinet issued a circular to currently adopt the electronic system in addition to the manual system in managing the inventory, and solely use the electronic system.

The inventory management system contains a record of all government assets; this information is important to implement IPSAS. The system will be used by the Audit bureau and the internal audit departments in the ministries and other budget institutions.

There is no integration between the Inventory Management System and other governmental systems. It is important to integrate this system with the e-procurement system and the GFMIS.

This integration will help the government utilize its government resources efficiently. The inventory management system does not have an independent data center as the system currently uses the GFMIS data-center and licenses.

The GoJ “Fleet” system is managed by the Ministry of Transportation. This system manages vehicle equipment assets, including asset value, and provides information to support long-term planning. The GoJ is planning to incorporate the “Fleet” system into the government procurement system.

Anticipated results under Sub-Objective 3.2 include:

● Improved control of inventory and procurement to ensure efficiency and effectiveness of the procurement system.

● The inventory management system is utilized by the internal audit departments at ministries, audit bureau and all budget institutions.

Illustrative activity is listed below. This is not intended to be comprehensive, but is an example for offerors to consider tasks to be proposed as a means to achieve the anticipated results:

● Develop and integrate the procurement system, the inventory system, and the GFMIS.

Objective/Component 4: Cross-cutting PFM Reform

The GoJ priorities and requirements may change and evolve with time due to emerging external or internal conditions. This requires PFMA to be responsive to these changes in the government or economic environment, and capture emerging opportunities.

Emerging PFM-related priorities could also be identified by USAID during the lifetime of the project. In this case, and upon requests from USAID, PFMA would engage with GoJ entities, especially those in sectors that are also receiving high levels of USAID assistance such as health, education, water supply, and others in order to strengthen the fiscal sustainability of Jordan and complement the work that other activities are conducting.

This component adds the necessary flexibility to the PFMA Activity and provides USAID and the Implementing Partner with a rapid response tool to draw on leading experts to address GoJ priorities related to PFMA objectives and International Monetary Fund (IMF) conditionalities.

The Implementing Partner will analyze new requirements requested by the government and provide USAID with the recommendations and innovative solutions to meet the requirements or face any challenges.

Implemented activities under this component should have high impact and yield tangible results, with an aim to improve the public financial management in the Kingdom.