Solicitation_Afghan_Water_&_Sanitation.pdf

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Contents

A - SOLICITATION/CONTRACT FORM 7

ACRONYMS 8

PART I – THE SCHEDULE 10

SECTION B: SUPPLIES OR SERVICES AND COSTS 10

B.1 SERVICES 10

B.2 CONTRACT TYPE 10

B.3 ESTIMATED COST, FIXED FEE, AND OBLIGATED AMOUNT - CPFF 10

B.4 ESTIMATED COST AND FIXED FEE FOR IDIQ (CLIN 0004) 11

B.5 CONTRACT BUDGET 11

B.6 INDIRECT COSTS 12

B.7 CEILING ON INDIRECT COSTS 12

B.8 COST REIMBURSABLE 12

B.9 PAYMENT OF FIXED FEE (CPFF) 12

B.10 CANCELLATION CEILING AND MULTI-YEAR CONTRACT 13

SECTION C: DESCRIPTION/SPECIFICATIONS/WORK STATEMENT 14

C.1 BACKGROUND 14

C.2 PURPOSE 18

C.3 SCOPE 18

C.4 OBJECTIVES AND APPROACH 19

C.5 TASKS AND DELIVERABLES 20

C.6 EXPECTED RESULTS 25

C.7 MONITORING AND EVALUATION 25

C.8. ADDITIONAL REQUIREMENTS 26

C. 9 CONSTRAINTS 29

SECTION D: PACKAGING AND MARKING 30

D.1 BRANDING STRATEGY 30

D.2 AIDAR 752.7009 – MARKING (JAN 1993) 31

D.3 ANTICIPATED ELEMENTS OF MARKING PLAN 31

D.4 APPROVAL OF CONTRACTOR BRANDING IMPLEMENTATION & MARKING PLAN 32

SECTION E: INSPECTION AND ACCEPTANCE 33

E.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE 33

E.2 INSPECTION AND ACCEPTANCE 33

SECTION F: DELIVERIES OR PERFORMANCE 34

F.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE 34

F.2 PERIOD OF PERFORMANCE 34

F.3 PLACE OF PERFORMANCE 34

F.4 PLANS AND REPORTS 34

F.5 DELIVERABLES, DELIVERY AND FIXED FEE SCHEDULE 43

F.6 LANGUAGE OF REPORTS AND OTHER OUTPUTS 44

F.7 KEY PERSONNEL 44

F.8 OTHER PERSONNEL 44

F.9 AIDAR 752.7005 – SUBMISSION REQUIREMENTS FOR DEVELOPMENT EXPERIENCE

DOCUMENTS (SEP 2013) 44

F.10 PERFORMANCE STANDARDS 46

SECTION G: CONTRACT ADMINISTRATION DATA 48

G.1 AIDAR 752.7003 DOCUMENTATION FOR PAYMENT (NOV 1998) 48

G.2 ADMINISTRATIVE CONTRACTING OFFICE 49

G.3 CONTRACTING OFFICER’S AUTHORITY 49

G.4 CONTRACTING OFFICER’S REPRESENTATIVE (COR) 50

G.5 TECHNICAL DIRECTIONS/RELATIONSHIP WITH USAID 50

G.6 PAYING OFFICE AND SUBMISSION OF INVOICES 52

G.7 ACCOUNTING AND APPROPRIATION DATA 52

G.8 CONTRACTOR’S PRIMARY POINT OF CONTACT 53

PART II – CLAUSES 54

SECTION H: SPECIAL CONTRACT REQUIREMENTS 54

H.1 AUTHORIZED GEOGRAPHIC CODE 54

H.2 CONSENT TO SUBCONTRACTS (DECEMBER 2016) 54

H.3 RIGHT TO PROCURE FROM OTHER SOURCES (AUGUST 2016) 54

H.4 MAXIMIZING USE OF LOCAL ENTITIES (AUGUST 2016) 54

H.5 USAID/AFGHANISTAN SUB-AWARD REQUIREMENTS (APRIL 2016) 55

H.6 ADS 302.3.5.17 LIMITATION ON SUBCONTRACTING TO NON-LOCAL ENTITIES (JULY

2014) 56

H.7 USAID/AFGHANISTAN PUBLIC POSTING (APRIL 2016) 56

H.8 USAID/AFGHANISTAN VETTING REQUIREMENT (APRIL 2016) 57

H.9 USAID/AFGHANISTAN USE OF SYNCHRONIZED PRE-DEPLOYMENT AND

OPERATIONAL TRACKER (SPOT) FOR CONTRACTORS SUPPORTING A DIPLOMATIC

OR CONSULAR MISSION OUTSIDE THE UNITED STATES (SUPPLEMENT TO FAR 52.225-

19) (AUGUST 2016) 58

H.10 SERIOUS INCIDENT REPORTING (SIR) IN AFGHANISTAN (AUGUST 2016) 58

H.11 USAID/AFGHANISTAN SMART TRAVELER ENROLLMENT PROGRAM (STEP) (JANUARY

2016) 60

H.12 USAID/AFGHANISTAN HOST COUNTRY TAXES AND DUTIES (NOVEMBER 2016) 60

H.13 ADS 302.3.5.5 REPORTING OF FOREIGN TAXES (JULY 2007) 60

H.14 ELECTRONIC PAYMENTS SYSTEM (JULY 2014) 61

H.15 COMPENSATION FOR COOPERATING COUNTRY NATIONALS (CCNs) IN AFGHANISTAN

– ACQUISITION (OCT 2017) 62

H.16 ADDITIONAL REQUIREMENTS FOR PERSONNEL COMPENSATION (DECEMBER 2016) 62

H.17 DEFENSE BASE ACT (DBA) INSURANCE (OCT 2017) 63

H.18 PRESS RELATIONS (JANUARY 2017) 64

H.19 USAID/AFGHANISTAN RESTRICTIONS ON CONTRACTORS EXECUTING AGREEMENTS

WITH GOVERNMENT OF NATIONAL UNITY OF AFGHANISTAN (AUGUST 2016) 65

H.20 SUBMISSION OF DATASETS TO THE DEVELOPMENT DATA LIBRARY (DDL) (OCTOBER

2014) 65

H.21 DATABASE AND GIS/GPS REPORTING REQUIREMENTS (MARCH 2017) 66

H.22 ENVIRONMENTAL COMPLIANCE 68

H.23 IMPLEMENTATION OF EXECUTIVE ORDER 13224 ON TERRORISM FINANCING

(AUGUST 2016) 70

H.24 COMPLIANCE WITH ADS 206 PROHIBITION OF ASSISTANCE TO DRUG TRAFFICKERS

(DECEMBER 2016) 70

H.25 NONEXPENDABLE PROPERTY PURCHASES (APRIL 2017) (COMPLIANCE WITH ADS

302.3.6.6) 70

H.26 USAID/AFGHANISTAN COMPLIANCE WITH EXECUTIVE ORDER 13559 FACILITIES

USED FOR RELIGIOUS ACTIVITIES (FEBRUARY 2016) 70

H.27 USAID/AFGHANISTAN COMPLIANCE WITH SECTION 508 OF THE REHABILITATION

ACT OF 1973, AS AMENDED (AUGUST 2016) 71

H.28 USAID/AFGHANISTAN FOREIGN GOVERNMENT DELEGATIONS TO INTERNATIONAL

CONFERENCES (AUGUST 2016) 71

H.29 COMPLIANCE WITH ADS 252 & 253 - TRAINING AND RESULTS AND INFORMATION

NETWORK (TRAINET) (AUGUST 2016) 71

H.30 USAID DISABILITY POLICY (DEC 2004) 73

H.31 ARCHITECTURE/ENGINEERING AND CONSTRUCTION CLAUSES (AUGUST 2016) 74

H.32 RESPONSIBILITY FOR SUBMITTALS AND SHOP DRAWINGS (AUGUST 2016) 74

H.33 CLIN #0003 IMPLEMENTATION PROCEDURE 74

H.34 ORDERING SUPPLEMENTAL TECHNICAL ASSISTANCE (CLIN 0004) 74

SECTION I: CONTRACT CLAUSES 76

I.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE 76

I.2 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE 76

I.3 FAR 52.203-13 CONTRACTOR CODE OF BUSINESS ETHICS AND CONDUCT (OCT 2015) 80

I.4 FAR 52.217-2 CANCELLATION UNDER MULTI-YEAR CONTRACTS (OCT 1997) 83

I.5 FAR 52.222-35 EQUAL OPPORTUNITY FOR VETERANS (OCT 2015) 85

I.6 FAR 52.222-36 EQUAL OPPORTUNITY FOR WORKERS WITH DISABILITIES (JUL 2014) 85

I.7 FAR 52.222-50 COMBATING TRAFFICKING IN PERSONS (MAR 2015) 86

Alternate I (MAR 2015) 93

I.8 FAR 52.225-20 CONTRACTOR PERSONNEL IN A DESIGNATED OPERATIONAL AREA OR

SUPPORTING A DIPLOMATIC OR CONSULAR MISSION OUTSIDE THE UNITED STATES

(MAR 2008) 94

I.9 AIDAR 752.7036 USAID IMPLEMENTING PARTNER NOTICES (IPN) PORTAL FOR

ACQUISITION (JULY 2014) 98

I.10 AIDAR 752.231-72 CONFERENCE PLANNING AND REQUIRED APPROVALS (AUGUST 2013)100

I.11 CONSTRUCTION SUBCONTRACT CLAUSES 101

I.12 CLIN 0002 FEDERAL ACQUISITION REGULATION (48 CFR Chapter 1) CLAUSES 101

I.13 CLIN 0002 AIDAR CLAUSES 103

PART III- LIST OF DOCUMENTS, EXHIBITS, & OTHER ATTACHMENTS 106

SECTION J: LIST OF ATTACHMENTS 106

Attachment J.1 – Useful Links/References under Section C 106 Attachment J.2 – Initial Environmental Examination (IEE) and Amendments 106 Attachment J.3 – Past Performance Information Sheet 106 Attachment J.4 – National Technical Assistance (NTA) Salary Scale and Implementation Guideline 106 Attachment J.5 – Form AID 1420-17 “Biographical Data Sheets” 106 Attachment J.6 – Budget Template 106

Attachment J.7 – Vetting Mission Order 201.06 106 Attachment J.8 – Registration and Tax Exemptions in Afghanistan Guidance 106 Attachment J.9 – Security Plan Guidance 106 Attachment J.10 – Form AID 500-13 “USAID Partner Information Form” 106 Attachment J.11 – SF-LLL Disclosure of Lobbying Activities 106

SECTION K: REPRESENTATIONS, CERTIFICATIONS AND OTHER STATEMENTS OF

OFFERORS 107

K.1 NOTICE LISTING SOLICITATION PROVISIONS INCORPORATED BY REFERENCE 107

K.2 52.203-11 CERTIFICATION AND DISCLOSURE REGARDING PAYMENTS TO INFLUENCE

CERTAIN FEDERAL TRANSACTIONS (SEP 2007) 107

K.3 52.204-8 ANNUAL REPRESENTATIONS AND CERTIFICATIONS (NOV 2017) 108

K.4 52.209-7 INFORMATION REGARDING RESPONSIBILITY MATTERS (JUL 2013) 111

K.5 52.230-1 COST ACCOUNTING STANDARDS NOTICES AND CERTIFICATION (OCT 2015) 112

K.6 52.230-7 PROPOSAL DISCLOSURE--COST ACCOUNTING PRACTICE CHANGES (APR 2005) 114

K.7 CONTRACTOR PURCHASING SYSTEM REVIEW 115

K.8 AGREEMENT ON OR EXCEPTIONS TO, TERMS AND CONDITIONS 115

K.9 SIGNATURE 115

SECTION L: INSTRUCTIONS, CONDITIONS, AND NOTICES TO OFFERORS 116

L.1 FAR 52.252-1 SOLICITATION PROVISIONS INCORPORATED BY REFERENCE (FEB 1998) 116

L.2 FAR 52.216-1 TYPE OF CONTRACT (APR 1984) 116

L.3 FAR 52.233-2 SERVICE OF PROTEST (SEP 2006) 116

L.4 GENERAL INSTRUCTIONS TO OFFERORS 117

L.5 PROPOSAL PREPARATION AND DELIVERY INSTRUCTIONS 118

L.6 INSTRUCTIONS FOR THE PREPARATION TECHNICAL PROPOSAL, VOLUME I 121

L.7 INSTRUCTIONS FOR THE PREPARATION OF COST PROPOSAL 123

L.8 INSTRUCTIONS FOR THE PREPARATION OF BRANDING IMPLEMENTATION AND

MARKING PLANS 130

L.9 DISCLOSURE OF INFORMATION 131

L.10 AIDAR 752.204-70 PARTNER VETTING PRE-AWARD REQUIREMENTS (FEB 2012) 132

L.11 JOINT VENTURE INFORMATION 133

SECTION M: TECHNICAL EVALUATION CRITERIA 134

M.1 BEST VALUE CONTINUUM 134

M.2 GENERAL INFORMATION 134

M.3 TECHNICAL EVALUATION FACTORS 134

M.4 EVALUATION OF COST 137

M.5 DETERMINATION OF COMPETITIVE RANGE 137

ACRONYMS

AAPD Acquisition and Assistance Policy Directive AMELP Activity Monitoring, Evaluation, and Learning Plan AUWSSC Afghan Urban Water Supply and Sewerage Corporation A/COR Alternate Contracting Officer’s Representative AIDAR USAID Acquisition Regulation ADS Automated Directives System AMELP Activity Monitoring, Evaluation, and Learning Plan ANSF Afghanistan National Security Forces APPF Afghanistan Public Protection Force ADB Asian Development Bank BEO Bureau Environmental Officer BIP Branding Implementation Plan CAWSS Central Authority for Water Supply and Sewerage CCN Cooperative Country Nationals CF Coalition Forces CFR Code of Federal Regulation CIB Contract Information Bulletin CLIN Contract Line Item Number CPARS Contractor Performance Assessment Reporting System CPFF Cost Plus Fixed Fee CO Contracting Officer COR Contracting Officer’s Representative CST Contractor Salary Threshold DBA Defense Base Act DDL Development Data Library DEC Development Experience Clearinghouse DOC Development Outreach and Communication DOD Department of Defense DOS Department of State DR Development Result EA Environmental Assessment EIT Electronic and Information Technology EMMP Environmental Mitigation and Monitoring Plan EOCC Expanded Object Class Code FAPIIS Federal Awardee Performance and Integrity Information System FAR Federal Acquisition Regulation FOIA Freedom of Information Act FSN Foreign Service National FTE Full-time Equivalent G&A General and Administration GLAAS Global Acquisition and Assistance System GIRoA Government of the Islamic Republic of Afghanistan GIZ Gesellschaftfür Internationale Zusammenarbeit, GmbH GPS Global Positioning System HSPD Homeland Security Presidential Directive IDF Indirect Fire IDIQ Indefinite Delivery, Indefinite Quantity IEE Initial Environmental Examination

IED Improvised Explosive Device IPN Implementing Partner Notices IR Intermediate Results KfW Kreditanstalt für Wiederaufbau LOAs Letters of Authorization MP Marking Plan M&M Mitigation and Monitoring MOU Memorandum of Understanding MS Microsoft MVA Motor Vehicle Accident MUDH Ministry of Urban Development and Housing MEW Ministry of Energy and Water MoM Ministry of Mines MoPH Ministry of Public Health MAIL Ministry of Agriculture, Irrigation and Livestock NARA National Archives and Records Administration NEPA National Environmental Protection Agency NICRA Negotiated Indirect Cost Rate Agreement NGO Non-Governmental Organization NTA National Technical Assistance NXP Non-expendable Property OAA Office of Acquisition and Assistance ODC Other Direct Cost OPPD Office of Program and Project Development PDF Portable Document Format PLSO Partner Liaison Security Office POC Point of Contact PPI Past Performance Information PSC Private Security Contractor RCE Request for Categorical Exclusion SAF Small Arms Fire SAM System for Award Management SB Small Business SIR Serious Incident Reporting SPOT Synchronized Pre-Deployment and Operational Tracker STEP Smart Traveler Enrollment Program TBD To Be Determined TCN Third Country National TIFF Tagged Image File Format TRAINET Training and Results and Information Network UNHCR UN High Commission for Refugees U.S. United States USA United States of America USAID United States Agency for International Development USG United States Government WIA Wounded in Action

PART I – THE SCHEDULE

SECTION B: SUPPLIES OR SERVICES AND COSTS

B.1 SERVICES

The Contractor shall provide technical assistance to the Afghanistan Urban Water Supply and Sewerage Corporation (AUWSSC) and the Afghan government to increase access to urban water and sanitation services for residents in six Afghan cities to accomplish the work described in Section C.

B.2 CONTRACT TYPE

This is a FAR 16.102(b) combination award consisting of a Cost Plus Fixed Fee (CPFF) Completion (CLIN 0001, CLIN 0002, CLIN 0003) and a single-award Indefinite Delivery/Indefinite Quantity (IDIQ) type contract (CLIN 0004) for implementing of infrastructure activities to support AUWSSC Strategic Business Units (SBUs) that meet the eligibility requirements as fully described in Section C.

Under the CPFF Completion portion of the contract (CLIN 0001, CLIN 0002, CLIN 0003), the contractor must furnish all personnel, materials, equipment, supplies, facilities, services (except as expressly set forth in this contract as furnished by the Government) and perform all activities necessary for, or incidental to, the performance of work described in Section C and other sections of the contract not specifically identified under CLIN 0004 as the IDIQ Supplemental Technical Assistance.

Under the IDIQ portion of the contract (CLIN 0004), the contractor must furnish additional work arising out of or related to the completion portion of the contract, as required by Government-issued Task Orders. The services must be ordered in accordance with Section H.34 entitled “Ordering Supplemental Technical Assistance (CLIN 0004)” and the IDIQ clauses in Section I. As this CLIN is part of this contract and not a stand-alone award, the Government is not required to state or order any minimum number of person-days as otherwise provided in FAR 16.504(a)(1). The other CLIN contained in this Contract provides sufficient consideration to make this a legally binding contract, and the Government has no obligation to fund or order under this CLIN.

For the consideration set forth below, the Contractor must provide the deliverables or outputs described in Sections C and F in accordance with the performance standards specified in Section F.

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

(a) The estimated cost for the performance for the CPFF contract type component of work required hereunder, exclusive of fixed fee, if any, is $TBD . The fixed fee, if any, is $TBD.

The estimated cost plus fixed fee, if any, is $TBD. Cost shall be limited to reasonable, allocable, and allowable costs determined in accordance with Federal Acquisition Regulation

(FAR) 52.216-7.

(b) Fixed Fee Payment: The Government shall pay the Contractor for performing this contract the fixed fee specified in the Schedule in accordance with FAR 52.216-8(a).(see Section B.9 and F.5)

(c) Within the estimated cost plus all possible fee (if any) specified in paragraph (a) above, the amount currently obligated and available for reimbursement of allowable and allocable costs incurred by the Contractor (and payment of fee, if any) for performance hereunder is $TBD. The Contractor must not exceed the aforesaid obligated amount unless authorized by the Contracting Officer pursuant to the provisions entitled “Limitation of Funds” (FAR 52.232-22) as indicated in Section I of this contract.

(d) Funds obligated hereunder are anticipated to be sufficient through [date to be inserted prior to award].

B.4 ESTIMATED COST AND FIXED FEE FOR IDIQ (CLIN 0004)

(a) The total estimated ceiling cost of this CLIN is $[To be inserted prior to award, at least up to 20% of the total cost], exclusive of the associated maximum fee of $ TBD. The total estimated ceiling cost and maximum fee is $ TBD.

(b) The budget for this CLIN is solely for the implementation of the infrastructure improvement projects that will be approved under Task 4.

The fee set forth in B.4 (a) is based upon furnishing the level-of-effort specified in paragraph

(c) above. The total estimated cost and fixed fee will be established in the individual Government-issued Task Orders and must not exceed the amounts set forth in Section B.4 (a).

B.5 CONTRACT BUDGET

The budget for this contract is as follows:

(Approved Contract Budget to be determined at time of award).

CLIN 0001 CLIN Description Total ($) 0001a Direct Costs $ 0001b Indirect Costs $ 0001c Fixed Fee $ Sub-Total CLIN 0001 $ CLIN 0002 CLIN Description (Security) 0002a Security Costs $ Sub-Total CLIN 0002 $ CLIN 0003 CLIN Description (Equipment Improvement) 0003a Equipment Cost (at least up to 20% of TEC) $ Sub-Total CLIN 0003 $ CLIN 0004 CLIN Description (IDIQ- Supplemental Technical

Assistance)

0004a Infrastructure Cost (at least up to 20% of TEC) $ Sub-Total CLIN 0004 $ Total Estimated Cost (All CLINS) $

Shifting of funds (budget re-align) between CLINS exceeding ten percent (10%) of the individual CLIN sub-total must be approved by Contracting Officer. The funds under CLIN0003 and CLIN 0004 must be used ONLY for Task 4 activities (see Section C) implementation to support water and sanitation infrastructure and equipment improvements.

The use of infrastructure and equipment improvement line items for eligible AUWSSC strategic business units is dependent upon successful completion of Task 2 and substantial completion of Task 3. Only Firm Fixed Price (FFP) sub-contracts shall be issued under CLIN 0003 and 0004. A written sub award approval from the Contracting Officer must be received prior to the issuance of sub-awards under this CLIN. Construction sub-contracts must include all appropriate construction clauses. Deviations from this requirement must be approved by the Contracting Officer.

B.6 INDIRECT COSTS

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

Description Rate Base Type Period

TBD TBD 1/ 1/ 1/

1/Base of Application: ______________ [TBD] Type of Rate: Predetermined/Provisional ______________ [TBD] Period: ______________ [TBD]

B.7 CEILING ON INDIRECT COSTS

Reimbursement for indirect costs will be at the lower of the negotiated final pre-determined rates or the following ceiling rates:

Description 2018 2019 2020 2021 2022

[Rate 1 description to be inserted] __% ___% ___% ___% ___% [Rate 2 description to be inserted] __% ___% ___% ___% ___% [Rate 3 description to be inserted] __% ___% ___% ___% ___%

The government will not be obligated to pay any additional amount on account of indirect costs above the ceiling rates established in the contract. This advance understanding will not change any monetary ceiling, cost limitation, or obligation established in the contract.

B.8 COST REIMBURSABLE

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

B.9 PAYMENT OF FIXED FEE (CPFF)

Pursuant to FAR 16.306 (d) “Cost-Plus-Fixed-Fee Contracts”, payment of fixed fee under this contract will be tied to the completion of deliverables specified in Section F.5.

Upon successful achievement of the deliverable, the Contractor must provide evidence of its achievement to the COR and the Contracting Officer. Upon acceptance and approval by USAID, the Contractor must submit an invoice for the amount of the fee associated with the deliverable. Further, payment of fixed fee, subject to FAR 52.216-8, will be made upon receipt of a proper invoice.

B.10 CANCELLATION CEILING AND MULTI-YEAR CONTRACT

The costs for this contract are considered non-severable and are therefore multi-year contracts as defined in FAR 17.103, “Definitions”. This contract is subject to the requirements of FAR 17.106, “Procedures”.

This is a combination contract type consisting of a CPFF completion and IDIQ type line items where the Contractor is authorized to be reimbursed for all costs which are allowable in accordance with FAR 52.216-7, “Allowable Cost and Payment”. The Contractor will not incur any costs which would have been amortized over the life of the contract should the contract be cancelled in accordance with FAR 52.217-2 “Cancellation under Multi-Year Contracts”.

Therefore, the cancellation ceiling for each cancellation date is $0 as represented in the below table

Cancellation Dates Cancellation Amount Contract Year 1: TBD $0 Contract Year 2: TBD $0 Contract Year 3: TBD $0 Contract Year 4: TBD $0 Contract Year 5: TBD $0

[END OF SECTION B]

SECTION C: DESCRIPTION/SPECIFICATIONS/WORK STATEMENT

C.1 BACKGROUND

(a) Current state of urban water and sanitation in Afghanistan

Across Afghanistan, only 21 percent of urban residents are served by a piped water connection to their home. The rest rely on unsafe shallow open wells or hand pumps that are highly susceptible to contamination, or expensive alternatives such as trucked water. Even where piped services are available, the quality of the service is often poor, with limited service hours or water quality that does not meet health standards. On-site household sanitation systems are the most common source of drinking water contamination. Many households rely on private suppliers who provide water via tankers, while newly developed townships are serviced by private suppliers through network supply arrangements. Other systems are community-managed and include shared water connections, small networks, non-governmental organization (NGO) supported water supply systems, or service provision by a private supplier.

Only fifty-two percent of households in urban areas have access to an improved toilet facility.

In the major urban centers, there is a general trend of shifting away from dry sanitation to water-based systems as the economic status of a household improves. However, there is no collectively organized or centralized mechanism for managing wastewater at a city-level in any urban area of Afghanistan. Instead, a variety of different management practices are used including dry toilets, septic tanks, or decentralized sewage collection and treatment systems.

Many on-site treatment options, such as septic tanks, are not properly constructed or maintained and contribute to contamination of drinking water and public health issues.

Meeting the water and sanitation needs of Afghanistan’s urban population is already a challenge, and becoming more complex when planning for population growth. Between 2000 and 2010, the country’s urban population grew by almost 4.5 percent a year and according to 2016 World Bank data, the urban population grew by 4.3 percent, the 16th fastest in the world. While most of this is attributable to an increase in birth rates in urban areas, rural-urban migration is occurring, and Afghan cities are increasingly becoming the destination for returned refugees and internally displaced persons. As of mid-2014, there were, according to UN High Commission for Refugees (UNHCR) estimates, 683,000 people internally displaced by conflict in Afghanistan, more than half of which were living in urban areas. The UN anticipates that between 864,000 and 1.5 million Afghans could return to Afghanistan from neighboring countries in 2017, many of whom will likely return to cities.

(b) Afghan Urban Water and Sanitation Policies and Cognizant Ministries

The Ministry of Urban Development and Housing (MUDH), formerly the Ministry for Urban Development Affairs, is responsible for urban service provision, including water and wastewater management services. MUDH has responsibility for developing master and strategic plans, which include sanitation and water supply. Additionally, in the absence of an independent regulator, MUDH has by default, an interim regulatory role. In 2005, MUDH released the Urban Water Supply and Sewerage Sector Policy to help guide the sector during the post-Taliban reconstruction era. The policy objectives were to improve sustainable access to safe drinking water and basic sewerage, prepare for the decentralization of service delivery, ensure improved operation and maintenance of infrastructure, emphasize full cost recovery, and prioritize the development of surface water as a supply of potable water.

In 2014 MUDH started to amend the Urban Water Supply and Wastewater Sector Policy. The updated policy, still pending final approval from the Supreme Council of Lands and Water, includes developments within or directly affecting the sector, and is in compliance with the Water Law (2009) and principles of the Environment Law (2007). It aligns with the Afghanistan National Development Strategy and its priority planning processes. The new policy better discusses urban wastewater and highlights areas for integration and coordination within the urban water and sanitation sector, as well as with other sectors such as health.

Afghanistan lacks an independent regulatory authority for the urban water and sanitation sector. In the interim, MUDH is executing some basic regulatory functions for water supply.

In 2012 MUDH established and initiated a process to issue licenses to private sector drinking water service providers in Kabul city. MUDH is developing a sanitation master plan for Kabul city, which would be implemented by AUWSSC. MUDH is currently serving as an interim regulatory institution for both water and sanitation. MUDH is working on tariff regulation for private water supply service providers.

MUDH, in coordination with the Ministry of Energy and Water (MEW), Ministry of Mines (MoM), Ministry of Public Health (MoPH), Ministry of Agriculture, Irrigation and Livestock (MAIL), and National Environmental Protection Agency (NEPA) has the responsibility to provide water supply for drinking and livelihoods. This includes construction of water treatment plants, water conveyance facilities, sewerage systems and sewage treatment plants.

MEW has jurisdiction over Afghanistan’s surface water resources and is responsible for policies and structures to manage them. MEW developed a Water Sector Capacity Building Policy (2013), which analyses capacity building needs for all institutions related to the water sector and outlines the process of establishing capacity building departments in each water sector institution.

(c) Afghan Urban Water Supply and Sewerage Company (AUWSSC)

Prior to 2006, the Central Authority for Water Supply and Sewerage (CAWSS), under MUDH, provided piped water supply and sanitation in the country. In 2006, a Presidential Decree transformed CAWSS into a commercialized state enterprise, the Afghan Urban Water Supply and Sewerage Corporation (AUWSSC). This reform professionalized the operation of Afghanistan’s municipal water utilities and introduced the same type of fiscal and service delivery improvements that followed commercialization of the national power utility, Da Afghanistan Breshna Sherkat. AUWSSC has five shareholders: Ministry of Finance (40%), MUDH (35%), Ministry of Economy (10%), NEPA (10%), and Kabul municipality (5%).

AUWSSC is headed by a Director General, who reports to the Board of Directors. The Board of Directors is comprised of five representatives from each of the shareholders, as well as one representative from Afghanistan Independent Land Authority and one representative from the Independent Directorate of Local Governance.

As of 2016, AUWSSC has 1,381 staff covering six strategic business units in Kabul, Herat, Jalalabad, Mazar e Sharif, Kandahar, and Kunduz, and 26 sub-strategic business units. In total, AUWSSC has operations in 19 provinces. According to AUWSSC, in 2016, the total network length was 3,817 km with 172,004 registered household connections serving 2.2 million people. They have 1,381 public utility connections. The total daily water production, as of 2016, is reported as 111,499 m3 and reservoir capacity is 104,176 m3. Plans for expansion over the next five years would increase the total population served to 5 million, and increase the number of household connections by 13.5 percent and reservoir capacity by 18.2 percent.

In 2009, with World Bank financing, the Afghan government launched the Afghanistan Urban Water Sector Project to support the commercialization process. To complement this effort, USAID provided $22.7 million from 2008-2014 for the Commercialization of Afghanistan Water and Sanitation Activity (CAWSA) to support reforms in cities with AUWSSC-provided services, including Mazar e Sharif, Jalalabad, Gardiz, Ghazni, Kandahar, Lashkarga, Zaranj and Mehtarlam. USAID assistance improved water utility management and performance, especially with regard to accounting and financial systems, and introduced commercial water utility principles. Over the last decade, the German government has provided similar support to the strategic business units in Herat, Kabul and Kunduz.

Since the 2006 reforms, AUWSSC has seen moderate success in the expansion of piped water services and in their efforts to improve cost recovery. From 2009-2016, AUWSSC reported an increase in network length of 1,945 km and a 35 percent (35%) increase in daily water production. However, evaluations of USAID, World Bank and German government assistance in urban water sector indicate that a low level of technical and managerial capacity in AUWSSC and infrastructure deficiencies remain limiting factors in improving services and cost recovery. The evaluation of USAID’s assistance indicated that future programming should include a business planning component, continue to improve cost recovery efforts, assess infrastructure conditions, and improve staffing management. The evaluation report also noted that for most of AUWSSC’s units, it was unrealistic to expect any long-term or sustainable changes in overall performance (including cost recovery) without significantly improving the ability to deliver higher quantities of water through water supply infrastructure investments.

Current water tariffs are based on the 2012 Presidential Decree on Water Tariffs. In 2013, as a result of the tariff reform, AUWSSC for the first time reported a surplus of $0.03 million.

However, the increase in profit, has not yet translated into efficiency in financial resource use or expansion of service delivery. The AUWSSC five (5) year strategic plan cites the lack of information and financial planning system as a barrier to improvement. AUWSSC faces staffing challenges due to a lack of skilled staff within the sector and continued need for training for current staff. Higher private sector salaries make retention of current staff and recruitment of new staff to replace an ageing workforce in AUWSSC problematical.

AUWSSC has a mandate for sanitation service provision. The AUWSSC five (5) year strategic plan (2016-2020) briefly highlights the importance of decentralized solutions for sanitation services in Kabul, Herat, Mazar e Sharif, Jalalabad, Kunduz, and Kandahar to address discharge of untreated wastewater in urban and peri-urban areas. The plan calls for feasibility studies and the design and construction of decentralized wastewater treatment systems in the six cities.

(d) Linkages to Foreign Policy Goals and USAID Initiatives

The Afghan Urban Water and Sanitation activity aligns with USAID policies and strategies, as well as broader U.S. foreign policy goals. On August 21, 2017 the U.S. government announced a new U.S. strategy for Afghanistan that includes improving economic development in the country. Water is critical for economic development and cities are the areas with the most potential economic growth in Afghanistan. This activity supports USAID/Afghanistan’s Plan for Transition (2015-2018). The main objective of the plan is to increase government revenue to replace donor assistance and provide resources for quality service delivery. Support to AUWSSC directly supports this objective, with an end goal of improved water and sanitation service delivery.

This assistance for the Afghan urban water and sanitation sector directly supports the U.S.

Government’s Global Water Strategy. The USAID goal under the strategy is to increase availability and sustainable management of safe water and sanitation for the unserved and most vulnerable. This activity supports three of the four (4) Development Results (DR): DR 1: strengthen sector governance and financing, DR 2: increase sustainable access and use of sanitation, and DR 3: increase sustainable access to safe drinking water. The U.S.

Government’s Global Water Strategy, released in November 2017, was created in response to the Water for the World Act of 2014, under which Afghanistan has been identified as a high priority country. This activity will support Afghanistan’s commitments to the Sustainable Development Goals, specifically Goal 6: ensure availability and sustainable management of water and sanitation.

The Afghan Urban Water and Sanitation activity supports USAID’s Urban Policy:

Sustainable Service Delivery in an Increasingly Urbanized World and USAID’s Gender Equality and Female Empowerment Policy in all activities to ensure that these strive for inclusion, and will comply with the USAID Evaluation Policy to appropriately measure impacts and outcomes.

(e) Donor and Development Partner Support

There are a limited number of donors engaged in the urban water utility sector in Afghanistan. The World Bank doesn’t currently provide assistance for urban water and sanitation, but previously supported AUWSSC to improve operational management and investment planning and implementation (2006-2014), including establishing the AUWSSC organizational structure and formalizing the relationship between headquarters and the strategic business units. In 2017, World Bank announced grants, including $100 million for inclusive growth and $20 million for urban development and service delivery, though additional details on water and sanitation specifics are pending. From 2008 to 2017, the German government through Deutsche Gesellschaftfür Internationale Zusammenarbeit, GmbH (GIZ) has been providing technical assistance to three of AUWSSC’s strategic business units (Herat, Kabul and Kunduz), with the possibility of extension. This assistance is complemented by urban water infrastructure improvements funded by the German development bank, Kreditanstalt für Wiederaufbau (KfW). USAID contributes $20 million to KfW’s Kabul water supply improvement project. KfW is assisting AUWSSC to develop a sanitation master plan for Kabul city. The Asian Development Bank (ADB) is currently undertaking a project preparatory technical assistance for the Arghandab Integrated Water Resources Development Investment Program which has a water supply component for Kandahar city.

Donor investments have helped AUWSSC achieve measurable gains in service provision. For example, with support from the German government, the Herat strategic business unit was able to increase the number of household connections from 12,300 in 2002 to 46,280 in 2013, providing service to almost the entire city. Water quality continues to be a challenge though, and is an example of something that this activity could continue to support. The successful service delivery in Herat may serve as a good model to be used and replicated among other AUWSSC strategic business units. In the sanitation sector, the Kabul city sanitation master plan is under development and is the first such large-scale urban sanitation plan for the country. This may be another good example of past donor support that can be scaled-up for replication in other cities. The Afghan Urban Water and Sanitation activity will coordinate closely with other donor initiatives, develop results obtained from earlier donor assistance, adapt lessons learned from previous interventions, and replicate successful models, without duplicating efforts. Because of the past and ongoing support, as well as varying levels of capacity, the first step in the activity implementation will require the Contractor to work with AUWSSC headquarters and the strategic business units to establish baselines. These baselines must be approved by USAID.

C.2 PURPOSE

The purpose of the Afghan Urban Water and Sanitation activity is to increase access to urban water and sanitation services for residents in six Afghan cities serviced by the Afghanistan Urban Water Supply and Sewerage Corporation (AUWSSC) and the Afghan government.

C.3 SCOPE

The Afghan Urban Water and Sanitation activity will work directly with AUWSSC, MUDH, and relevant municipal or provincial governments and in coordination with other donors as appropriate. The scope of this activity includes business and financial planning, infrastructure and equipment improvements, transparency or efficiency support, and service delivery planning.

The six urban areas1 planned for this activity correspond to the Afghan cities where AUWSSC headquarters and strategic business units are located: Kabul, Herat, Jalalabad, Mazar e Sharif, Kandahar, and Kunduz. Due to the dynamic security envelope in Afghanistan, it will be incumbent upon the Contractor to ensure that U.S. Government funds are only expended in areas controlled by the Afghan government.

The Afghan Urban Water and Sanitation activity is based on the hypothesis that by improving the operational and technical performance of AUWSSC and providing necessary infrastructure support, Afghan citizens in select urban areas will have increased access to water and sanitation services. This may be in the form of new access in previously unserved areas or as improved service quality, such as longer hours of water provision or improved water quality from existing services. Access to sanitation currently lags behind access to water in most urban areas, as such, the approaches for water and sanitation will differ.

Additionally, each city has different levels of access and each strategic business unit has varying levels of capacity, infrastructure, service delivery, and support from other international donors or Afghan government initiatives. As such, it is vital that this activity use a customized approach that is tailored to local realities at each site. Technical and operational capacity building must focus on transparency, internal controls, auditing procedures, budgeting process, performance-based management, efficiency, non-revenue water, metering, customer service, public outreach, business planning, among others. The activity must work

1 Urban areas are defined as those with a population generally in excess of five thousand and falling within the jurisdiction of an authority established and governed by the Law of Municipalities (Law 794 of Year 1379 Chapter 2 Article 7) in the 2005 Urban Water Supply and Wastewater Sector Policy.

to strengthen existing strategies, institutional structures, and programs to avoid duplication and developing parallel processes. This activity must work to improve coordination in the urban water and sanitation sector among AUWSSC, MUDH, municipal and provincial governments, as well as other relevant stakeholders.

C.4 OBJECTIVES AND APPROACH

USAID seeks to increase access to urban water and sanitation services for residents in the six Afghan cities mentioned in C.3 above that are serviced by AUWSSC and the Afghan government. Increased access to services may include new access, improved access, or improved service quality. The Afghan Urban Water and Sanitation activity will support AUWSSC at their Kabul headquarters and sub-offices. The specific objectives of this activity are:

1. Increase technical and operational performance of AUWSSC;

2. Enhance sanitation service delivery and planning; and

3. Improve water and sanitation infrastructure.

To accomplish these objectives it is imperative that the Contractor work directly with AUWSSC and other entities as appropriate, to implement practical interventions to strengthen existing systems and processes, without creating parallel systems or duplicative interventions.

The Contractor will work with AUWSSC headquarters to improve the overall operations of the utility, as well as at the strategic business unit level in the six aforementioned cities.

MUDH will be a key partner at both the national and municipal level. The contractor is expected to work with relevant municipalities and provincial governments as well. Technical assistance provided under this activity will build upon the existing skills, policies, plans, and strategies of AUWSSC, as well as MUDH. The Contractor must leverage existing programs and other donor initiatives and investments and ensure coordination across the urban water and sanitation sector.

The Contractor must utilize baseline assessments and other available data to develop tailored approaches for capacity building and technical assistance for AUWSSC headquarters, as well as each of the strategic business units. As capacity levels vary widely across each of these units, it is imperative that assistance be customized and based on actual need. Infrastructure interventions must be prioritized based on cost benefit analysis and strategic priorities. Water infrastructure rehabilitation, upgrades, or new construction will only be permitted following the completion of the business planning process at the strategic business unit level. With both water and sanitation infrastructure, the Contractor must include appropriate operations and maintenance considerations and plans to ensure the sustainability of the investment.

Sustainability must be included as a key consideration across all interventions, not only infrastructure, and the Contractor must avoid introducing skills or systems that cannot be sustained in the absence of the Contractor. The Contractor must seek and establish partnerships to ensure long-term sustainability. As part of this sustainability element, interventions must directly support Afghan government strategies, plans, and priorities.

Given the dynamic security environment in Afghanistan and the inherent risks of infrastructure investments, the Contractor must use an approach that mitigates risk.

C.5 TASKS AND DELIVERABLES

The Contractor shall address the following tasks, taking into consideration the expectations outlined in the overall approach section above.

Task 1. Analyze existing systems, capacity and available data to establish activity baselines

Gathering and analyzing existing data will be critical to ensure that technical assistance under this activity meets current needs and realities. This task will directly inform the specific interventions to be undertaken in all other tasks under the contract. The Contractor will use collected data and information to establish baselines from which the Contractor and USAID will measure performance. The intention of this task is not to replicate past assessments, analyses, audit reports, or other available information that is still current and relevant. Rather, the intended purpose is to consolidate existing information and only produce new assessments or analyses in the event that information is unavailable. The Contractor must undertake the following in support of each subsequent task:

(1) AUWSSC organizational, technical, and operational capacity assessed

Assess the current technical, operational and financial performance of AUWSSC. This includes, but is not limited to internal controls, auditing procedures, budgeting process, transparency, performance-based management, cost recovery, non-revenue water losses, estimate of service coverage and revenue from private sector providers, custom service, service coverage, existing infrastructure, planning and management capacity, service quality, among others. The Contractor will work with AUWSSC to further develop the specific areas that need to be assessed in order to provide concrete recommendations on how to prioritize capacity building interventions under Task 2, as well as establish necessary baselines from which to measure achievements. The assessment/data collection must be conducted both at headquarters and within each of the six strategic business units. The assessment must identify strengths and existing capabilities of AUWSSC and build upon those to further technical and operational performance improvements. It will be important to determine any constraints that exist. The analysis must be conducted with a specific focus on improving service delivery. The analysis must identify areas for collaboration with other Afghan government or donor programs, as well as opportunities for private sector engagement. The Contractor must include gender considerations in both the establishment of baseline data and recommendations provided in furtherance of Task 2.

(2) Sanitation service provision & planning data assessed and information gaps identified

Urban sanitation data and information are lacking in Afghanistan. To ensure better planning and decision making for urban sanitation solutions, AUWSSC and MUDH especially, would benefit from better data, assessments and surveys to focus programs accordingly. The Contractor must propose appropriate assessments, studies, and data collection that will provide information on topics such as, but not limited to the following: preferred and appropriate sanitation solutions and technologies, willingness to pay, opportunities for private sector engagement, policy reform, and financial viability or cost-benefit of urban sanitation options. Assessments, studies, or data must be used to inform and improve sanitation planning in Task 3. Data assessments/gathering must include a baseline for the current level of sanitation service provision within the service areas of the six AUWSSC strategic business units. This specific intervention is linked to the operational assessment of AUWSSC in (1) above. Developing this baseline will help to inform the development of sanitation plans in Task 3. The Contractor is required to include gender considerations in the assessments, as well as recommendations provided in furtherance of Task 3.

Findings and recommendations from these analyses will allow the contractor, following discussions with USAID and subject to USAID’s approval, to enhance the focus of the activity so that technical assistance is targeting the areas of greatest need. The data from the assessments will be used to establish baselines and refine associated targets to ensure that realistic goals have been set. As part of the analysis, and using the baseline data collected, the Contractor must develop a capacity building plan that will directly inform the work to be carried out under Task 2 and Task 3. Because sustainability is such a key concern, the Contractor must develop a sustainability plan that will demonstrate how investments and interventions under the contract will be sustained beyond the life of the activity (please see Section C.8 for additional guidance on sustainability plans).

The Contractor must provide or complete the following deliverables:

(i) Baseline assessment of AUWSSC organizational, technical and operational capacity including financial management and communications, knowledge management capacity. At a minimum, the baseline assessment must include current needs or gaps in the areas of transparency, internal controls, auditing procedures, budgeting process, performance-based management, efficiency, non-revenue water, metering, customer service, public outreach, business planning. The baseline must include an assessment of gender equality within AUWSSC, as well as how gender considerations are used to ensure equitable service provision. The assessment must include any other relevant areas identified during the assessment directly linked to the goals of this activity;

(ii) Baseline assessment for each AUWSSC strategic business unit that includes current performance and service coverage including current tariff rates and informal service provider rates for each strategic business unit area. At a minimum, the baseline assessment for each strategic business unit must include current needs or gaps in the areas of transparency, internal controls, auditing procedures, budgeting process, performance-based management, efficiency, non-revenue water, metering, customer service, public outreach, business planning. The baseline must include an assessment of gender equality within the strategic business units, as well as how gender considerations are used to ensure equitable service provision. Each assessment must include other relevant areas particular to each strategic business unit identified during the assessment and directly linked to the goals of this activity;

(iii) A capacity building plan that will inform interventions under Task 2 and Task 3;

(iv) A sustainability plan that provides information specific to AUWSSC headquarters, as well as each of the strategic business units;

(v) Baseline assessment of sanitation service provision in the service areas of the six

AUWSSC strategic business units; and

(vi) A report on the existing data and information gaps in the urban sanitation sector that includes a prioritized recommendation list for studies/analyses to be undertaken in Task 3.

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Outcomes:

(i) Constraints and opportunities for improved technical and operational performance of

AUWSSC identified;

(ii) Better data and information available for sanitation planning;

(iii) Constraints and opportunities for enhanced sanitation delivery and planning identified;

and

(iv) Water and sanitation infrastructure needs for the six targets strategic business units.

Task 2. Provide capacity building to increase technical and operational performance of AUWSSC and the six targeted Strategic Business Units

Using the sustainability and capacity building plans completed under Task 1, the Contractor must provide technical assistance to AUWSSC to increase technical and operational performance, and ultimately improve water service delivery. The Contractor must work with AUWSSC headquarters and at the strategic business unit level. At headquarters, the Contractor must implement interventions that improve AUWSSC’s ability to support the six strategic business units, overall operational efficiency, and better meet the needs of its customers. This includes, but is not limited to internal controls, auditing procedures, business planning, budgeting process, transparency, performance-based management, human resources development and training, customer service and outreach, communications to internal stakeholders across the Government of Afghanistan audiences as well as the general public and private sector service providers, cost recovery, and reduce dependence on government subsidies.