Karnali Water Security Activity (KAWAS)-RFP-72036719R00009 Amendment No. 01.pdf

AMENDMENT OF SOLICITATION/MODIFICATION OF CONTRACT

1. CONTRACT ID CODE PAGE OF PAGES

01 25

2. AMENDMENT/MODIFICATION NUMBER 3. EFFECTIVE DATE 4. REQUISITION/PURCHASE REQ. NO. 5. PROJECT NO. (If applicable)

01 See Block 16C

6. ISSUED BY CODE 7. ADMINISTERED BY (If other than Item 6) CODE Office of Acquisition and Assistance (OAA)

USAID/Nepal GPO Box 295 U.S. Embassy, Maharajgunj Kathmandu, Nepal

Same as Block 6

8. NAME AND ADDRESS OF CONTRACTOR (No., street, county, State and ZIP Code) (X) 9A. AMENDMENT OF SOLICITATION NO.

All Potential Offerors 72036719R00009

9B. DATED (SEE ITEM 11)

June 15, 2020

10A. MODIFICATION OF CONTRACT/ORDER

NO.

10B. DATED (SEE ITEM 13)

CODE FACILITY CODE

11. THIS ITEM ONLY APPLIES TO AMENDMENTS OF SOLICITATIONS

The above numbered solicitation is amended as set forth in Item 14. The hour and date specified for receipt of Offers is extended, is not extended.

Offers must acknowledge receipt of this amendment prior to the hour and date specified in the solicitation or as amended, by one of the following methods:

(a) By completing items 8 and 15, and returning 1 copies of the amendment; (b) By acknowledging receipt of this amendment on each copy of the offer submitted;

or (c) By separate letter or telegram which includes a reference to the solicitation and amendment numbers. FAILURE OF YOUR ACKNOWLEDGMENT TO BE RECEIVED AT THE PLACE DESIGNATED FOR THE RECEIPT OF OFFERS PRIOR TO THE HOUR AND DATE SPECIFIED MAY RESULT IN REJECTION OF YOUR OFFER. If by virtue of this amendment your desire to change an offer already submitted, such change may be made by telegram or letter, provided each telegram or letter makes reference to the solicitation and this amendment, and is received prior to the opening hour and date specified.

12. ACCOUNTING AND APPROPRIATION DATA (If required) Not applicable

13. THIS ITEM ONLY APPLIES TO MODIFICATION OF CONTRACTS/ORDERS.

IT MODIFIES THE CONTRACT/ORDER NO. AS DESCRIBED IN ITEM 14.

CHECK ONE A. THIS CHANGE ORDER IS ISSUED PURSUANT TO: (Specify authority) THE CHANGES SET FORTH IN ITEM 14 ARE MADE IN THE CONTRACT ORDER

NO. IN ITEM 10A.

B. THE ABOVE NUMBERED CONTRACT/ORDER IS MODIFIED TO REFLECT THE ADMINISTRATIVE CHANGES (such as changes in paying office, appropriation date, etc.) SET FORTH IN ITEM 14, PURSUANT TO THE AUTHORITY OF FAR 43.103(b).

C. THIS SUPPLEMENTAL AGREEMENT IS ENTERED INTO PURSUANT TO AUTHORITY OF:

D. OTHER (Specify type of modification and authority)

E. IMPORTANT: Contractor is not, is required to sign this document and return copies to the issuing office.

14. DESCRIPTION OF AMENDMENT/MODIFICATION (Organized by UCF section headings, including solicitation/contract subject matter where feasible.)

This Amendment No. 01 to request for proposal (RFP) No. 72036719R00009:

(a) Amends relevant RFP sections; and

(b) Publishes the submitted questions from selected offerors and corresponding responses.

Details provided on pages 2 – 25 below.

Except as provided herein, all terms and conditions of the document referenced in Item 9A or 10A, as heretofore changed, remains unchanged and in full force and effect.

15A. NAME AND TITLE OF SIGNER (Type or print) 16A. NAME AND TITLE OF CONTRACTING OFFICER (Type or print)

Jack M. Adrien

15B. CONTRACTOR/OFFEROR 15C. DATE SIGNED 16B. UNITED STATES OF AMERICA 16C. DATE SIGNED

Jul. 20, 2020 (Signature of Contracting Officer) (Signature of Contracting Officer)

Previous edition unusable

STANDARD FORM 30 (REV. 11/2016)

Prescribed by GSA FAR (48 CFR) 53.243

Jack Adrien Digitally signed by Jack Adrien Date: 2020.07.20 05:45:10 -06'00'

USAID/Nepal KAWAS

Request for Proposal (RFP) (Phase II) Solicitation No. 72036719R00009

Amendment No. 01

I. REQUEST FOR PROPOSAL (RFP) AMENDMENTS

A. PART I – THE SCHEDULE

1. SECTION B – SUPPLIES OR SERVICES AND PRICES/COSTS

(a) B.5 INDIRECT COSTS (CPFF)

Section B.5 INDIRECT COSTS (CPFF) is hereby DELETED in its entirety and REPLACED with the following:

B.5 INDIRECT COSTS (CPFF)

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

Rate Base Type Period % 1/ 1/ 1/ % 2/ 2/ 2/ % 3/ 3/ 3/

Description

1/Base of Application: Type of Rate: Period:

2/Base of

3/Base of

NOTE: The Contractor can recover applicable indirect costs (i.e., overhead, general and administrative (G&A), etc.) per FAR § 31.203 on other direct costs (ODCs), if it is part of the Contractor’s usual accounting procedures, consistent with FAR Part 31, and Negotiated Indirect Cost Rate Agreement (NICRA). Given that the contractor (i.e., offeror) has privity of contract with its proposed subcontractors, a contractor may opt to enter into subcontracts categorized by price (i.e., fixed-price, incentive, or cost-reimbursement subcontracts per FAR Subparts 16.2, 16.3, or 16.4, respectively) or by services measured by time worked (i.e., time-and-materials or labor-hour subcontracts per FAR Subpart 16.6) with local organizations, or otherwise, at its discretion. The FAR, however, contains

Request for Proposal (RFP) (Phase II) Solicitation No. 72036719R00009

Amendment No. 01 certain contract clauses that must “flow down” to subcontractors, irrespective of the type of subcontract or organization. Moreover, per FAR § 44.201-1(b)(1), “[i]f the contractor does not have an approved purchasing system, consent to subcontract is required for cost-reimbursement, time-and-materials, labor-hour, or letter contracts, and also for unpriced actions (including unpriced modifications and unpriced delivery orders) under fixed-price contracts that exceed the simplified acquisition threshold, for…cost-reimbursement, time-and-materials, or labor-hour subcontracts.” Furthermore, the contractor remains responsible for monitoring the subcontractor’s cost principles and procedures per FAR Part 31, including FAR §§ 31.203, 31.204, and 52.216-7, respectively. Nevertheless, if the proposed subcontractor does not have certified indirect cost rates, the contractor must budget and bill all subcontract costs for organizations, local or otherwise, as direct costs per FAR § 31.202.”

[END B.5]

[END SECTION B]

2. SECTION C – DESCRIPTION/SPECIFICATIONS/STATEMENT OF WORK

(a) C.9 CO-DESIGN

Section C.9 CO-DESIGN is hereby DELETED in its entirety and REPLACED with the following:

C.9 CO-DESIGN

Following execution of the contract award to the successful offeror per FAR § 15.504 based on a comparative assessment of Technical Proposals against all source selection criteria in the solicitation per FAR § 15.308, USAID will invite the successful offeror (i.e., Contractor) to develop the final KAWAS work plan through a multi-stakeholder co-design work planning workshop per the Automated Directives System (ADS) 201.3.4.8. Further, ADS 201.6 defines co-creation as “a design approach that brings people together to collectively produce a mutually valued outcome, using a participatory process that assumes some degree of shared power and decision-making.” The “Discussion Note: Co-Creation Additional Help” does not distinguish between “co-creation” and “co-design,” choosing instead to use “co-creation” as an umbrella term describing collaborative design and development of USAID activities.

Co-design is a design approach that brings people together to collectively produce a mutually valued outcome, using a participatory process that assumes some degree of shared ownership and decision-making. Involving local organizations, the private sector, traditional USAID implementing partners, local experts, host country government officials, and other international donors during the co-creation process can greatly enhance opportunities for increasing local ownership of USAID programming. Moreover, co-creation can also lower the programmatic risk that USAID will not achieve the intended results, because the activity design and implementation will be informed by engagement

Request for Proposal (RFP) (Phase II) Solicitation No. 72036719R00009

Amendment No. 01 with a broader array of stakeholders. USAID envisages an open, creative back-and-forth process with external experts and implementers to:

• build a strong analysis rooted in multiple, diverse perspectives and forms of expertise;

• promote multiple viewpoints that will help to identify parameters, prioritize focus areas, or identify opportunities for system collaboration;

• solicit the feedback, validation, and buy-in of multiple stakeholders;

• better understand local needs and constraints and encourage local communities to act; and

• approach development through a more inclusive, collaborative, creative, and open process.

A robust theory of change (TOC) is based on an in-depth causal analysis of issues influencing the situation of interest, and is rooted in a rigorous and evolving evidence base.

Developing and using a TOC builds a common understanding of activity logic and assumptions among stakeholders, and facilitates future monitoring, adaptive management, learning and evaluation. Diverse guidance exists on how to best design and use a TOC.

USAID has published a TOC training and more specifically, How-to-Guides for Biodiversity Programming, including Using Results Chains to Depict Theories of Change.

Use of results chains is the preferred approach for building out the TOC and incorporating tightly-aligned activities and monitoring components.

The activity’s TOC will be expanded and clarified during co-creation by applicant(s), partners and USAID, and further refined after award during work planning, as activity design and monitoring, evaluation, research and learning (MERL) design are developed together.

The Contractor must host the initial KAWAS co-design workshop no later than 60 calendar days of award. The co-design workshop must comply with USAID Acquisition Regulation (AIDAR) 752.231-72. Following the co-design workshop, the Contractor must develop a clear, concise performance-based work plan (i.e., contract administration plan) to the extent possible that will effectively measure the Contractor’s performance no later than 30 calendar days of completion of co-design workshop.”

[END C.9]

[END SECTION C]

3. SECTION F – DELIVERIES OR PERFORMANCE

(a) F.9 PERSONNEL

(1) F.9.1 KEY PERSONNEL

Request for Proposal (RFP) (Phase II) Solicitation No. 72036719R00009

Amendment No. 01

Section F.9.1 KEY PERSONNEL is hereby DELETED in its entirety and REPLACED with the following:

F.9.1 KEY PERSONNEL

Offerors must present at least three, but no more than five key personnel positions, deemed critical to achieve the KAWAS project. Offerors must propose a Chief of Party, WASH Governance Manager, and specify at least one additional key persons per Section F.9.2.3. Nevertheless, whilst not required, USAID recommends the following key personnel positions:

(a) Deputy Chief of Party;

(b) Finance and Procurement Manager; or

(c) Monitoring and Evaluation (M&E) Manager.

Offerors must explain how the combined skills, interpersonal skills, experience, and education of the proposed key personnel will help the offeror implement the activities, accomplish the results, ensure that all legal, administrative and financial requirements are met and meet the indicator targets proposed in the technical proposal. The key personnel are considered essential to the work being performed. Prior to replacing any of the specified individuals, the Contractor must immediately notify both the COR and Contracting Officer in advance and shall submit written justification (including proposed substitutions) in sufficient detail to permit evaluation of the impact on the program. No replacement of Key Personnel shall be made by the Contractor without the written consent of the Contracting Officer. USAID reserves the right to adjust the level of Key Personnel during the performance of this Contract. The Chief of Party must be an employee of the prime Contractor rather than a subcontractor.

Unless specified in writing by the Contracting Officer, the Contractor shall not replace any key personnel without the written approval of the Contracting Officer.

[END F.9.1]

(2) F.9.2 KEY PERSONNEL QUALIFICATIONS

(i) F.9.2.1 CHIEF OF PARTY (COP)

Section F.9.2.1 CHIEF OF PARTY (COP) is hereby DELETED in its entirety and REPLACED with the following:

F.9.2.1 CHIEF OF PARTY (COP)

The COP will serve as the primary point of contact with USAID/Nepal in regard to day-to-day implementation and management matters relating to this contract.

Reporting to the COR and coordinates closely all other field staff to manage and oversee Contractor designated activities, the COP will provide vision, direction, leadership and management for the contract. The COP will serve concurrently as

Request for Proposal (RFP) (Phase II) Solicitation No. 72036719R00009

Amendment No. 01 the technical director for GON technical services and have overall responsibility for ensuring quality control, the appropriateness and overall responsiveness of all work provided under the contract, whether by long- or short-term advisors or others.

Below please find the requisite minimum COP qualifications:

• Ten years of progressively responsible work experience in fields related to water, sanitation and hygiene or watershed management.

• Related work experience in similar positions of leadership such as a COP or a demonstrated track record of progressively responsible managerial experience implementing complex donor-funded projects with multiple activities and diverse teams;

• A master’s degree in international development, urban planning, engineering, environment, business, economics or a related field of study;

• Strong writing and oral presentation skills;

• Ability to speak, read, and write English fluently; and

• Preference for candidates who have a rudimentary understanding of the

Nepali language.”

[END F.9.2.1]

[END F.9.2]

[END F.9]

[END SECTION F]

4. SECTION H – SPECIAL CONTRACT REQUIREMENTS

(a) H.13 AUTHORIZED GEOGRAPHIC CODE

Section H.13 AUTHORIZED GEOGRAPHIC CODE is hereby DELETED in its entirety and REPLACED with the following:

H.13 AUTHORIZED GEOGRAPHIC CODE

The authorized geographic code under the resultant contract is 937. As per ADS 310.3.1.1, Code 937 is defined as “the United States, the recipient country, and developing countries other than advanced developing countries, but excluding any country that is a prohibited source. Procurement of agricultural commodities and related products, motor vehicles, and pharmaceuticals remain subject to the limitations in 22 CFR 228.19 and may require a waiver. Offerors can find further guidance on geographic Code 937 under ADS 310.3.1.1 available at the following link:

https://www.usaid.gov/sites/default/files/documents/1876/310.pdf.

Request for Proposal (RFP) (Phase II) Solicitation No. 72036719R00009

Amendment No. 01

[END H.13]

(b) H.27 GRANTS UNDER CONTRACT

Section H.27 GRANTS UNDER CONTRACT is hereby DELETED in its entirety and REPLACED with the following:

H.27 GRANTS UNDER CONTRACT

The Contractor must develop and execute a grants program on behalf of USAID/Nepal as detailed in Sections C.6 and L.4.1.1.2.2 of this Contract and in accordance with the requirements for grants under contracts as provided in ADS 302 and ADS 303. The Contractor must apply at a minimum all the following requirements to the grants program and all grants awarded by the Contractor under the Contract:

(a) The Contractor is authorized to develop a grants program and execute grants, not cooperative agreements, on behalf of USAID/Nepal to non-governmental organizations (non-profits or for- profits). Note: Approval for solely in-kind grants to government entities are subject to the approval by the Contracting Officer as a matter of disposition of equipment and vehicles.

(b) In accordance with ADS 302 and ADS 303, the total value of any individual grant to a U.S. organization, if any, must not exceed $100,000. This limitation does not apply to grant awards to non-U.S. organizations.

(c) The Contractor must ensure that the COR is significantly involved in establishing the selection criteria.

(d) The selection of all grants recipients is subject to the Contracting Officer’s written approval. If grant recipient approval authority is delegated by the Contracting Officer, the Contracting officer will make this delegation in writing.

(e) To all grants signed by the Contractor, the Contractor must follow and apply all

Agency requirements which apply to the award and administration of all USAID-executed grants. The range of requirements must include, but is not limited to, all requirements of USAID’s Automated Directives System 302 and 303, as amended, all applicable regulatory, policy or procedural changes disseminated through Acquisition & Assistance Policy Directives or any similar notice available on the Agency’s website.

(f) The Contractor must include award language that notifies the grantee that

USAID/Nepal retains the right to terminate the grant activity (activities) unilaterally in extraordinary circumstances.

Request for Proposal (RFP) (Phase II) Solicitation No. 72036719R00009

Amendment No. 01

(g) Each grant awarded by the Contractor on behalf of USAID/Nepal under the forthcoming contract must be in the following form:

(1) a grant letter;

(2) a Schedule;

(3) a Program Description to be developed by the grantee and the Contractor;

and

(4) (i) the mandatory standard provisions; and

(ii) any applicable required-as-applicable standard provisions.

The Contractor may also use a Fixed Amount Award format when appropriate per 2 CFR §200.45 and ADS 303.3.25, respectively.

(h) The Contractor must ensure that the grantee does not appear on the “List of

Parties Excluded from Federal Procurement and Non-Procurement Programs” and is not otherwise restricted from receiving USG funding.

(i) The Contractor must acquire a signed Certification Regarding Terrorist Financing from the proposed grantee and the Contractor must confirm that the proposed grantee:

(i) does not appear on the master list of Specially Designated Nationals and

Blocked Persons, which list is maintained by the U.S. Treasury’s Office of Foreign Assets Control (OFAC) and is available online at OFAC’ s website: http://www.treas.gov/offices/eotffc/ofac/sdn/t II sdn.pdf; and

(ii) is not included in any supplementary information concerning prohibited individuals or entities that may be provided by USAID/Nepal to the Contractor.

(j) The Contractor must consider all information about the proposed grantee of which it is aware and all public information that is reasonably available to it or of which it should be aware prior to recommending the recipient organization for USAID/Nepal’s approval. The Contractor must implement reasonable monitoring and oversight procedures to safeguard against assistance being diverted to support terrorist activity and to immediately notify USAID and cease support, transactions or dealings with any individual or organization that is designated by the United States Government as a Foreign Terrorist Organization or as a Specially Designated Terrorist or a Specially Designated Global Terrorist or has been designated by the United States Government in or pursuant to Executive Orders 12947 or 13224, or has been designated by the 1267 Committee, or otherwise engages in terrorist acts.

(k) Grants must not extend for any period beyond the estimated termination or completion date of the Contract.

Request for Proposal (RFP) (Phase II) Solicitation No. 72036719R00009

Amendment No. 01

(l) The grant must provide that payment of any interest, fees, program income and other refunds generated by grant recipients hereunder will be made to a special, non-commingled, interest-bearing account established by the Contractor (the “Separate Account”). The Contractor has no beneficial interest in any funds in the Separate Account. Funds in the Separate Account must be used as directed by the USAID/Nepal Contracting Officer.

(m) The Contractor must scrupulously avoid any conflicts of interest and should any conflict of interest arise, the Contractor must immediately notify the Contracting Officer as to the conflict and the Contractor’s proposed solution for avoiding the conflict, and the Contractor must follow the instructions of the Contracting Officer.

(n) The Contractor will act as custodian for USAID of all records relating to grants under the Contract. The Contractor will preserve all records with respect to its grant-making (including with respect to the deliberations of all Review Panels) and grant administration hereunder. Copies of all reports received from grantees will be forwarded to the COR. USAID and the Comptroller General must have full access to all documents, papers and others records of the Contractor with respect to its duties hereunder. At the conclusion of the Contract, the Contractor must consult with the Contracting Officer for direction as to which records must be transferred to USAID.

(o) With reference to ADS 303 Mandatory Standard Provision entitled “Submissions to the Development Experience Clearinghouse ( June 2012),” the Contractor must obtain written clearance from the COR and then forward one copy of all published reports generated by recipients under the grants program to USAID Development Experience Clearinghouse (DEC) .at: http://dec.usaid.gov.

(p) The Contractor must comply with and apply additional grant program requirements and details as described in Section L of this Contract. Conflicts between Section L and this Section must be resolved by the Contracting Officer.

(q) Grants proposed for “Public International Organizations” or host government entities are subject to Contracting Officer review and approval regardless of other delegated authority.

(r) Grants may not include construction, infrastructure, renovation, or rehabilitation projects.

(s) The Contractor is responsible for administering all the Grants Under Contracts program.”

[END H.27]

[END SECTION H]

Request for Proposal (RFP) (Phase II) Solicitation No. 72036719R00009

[END PART I]

B. PART IV – REPRESENTATIONS AND INSTRUCTIONS

1. SECTION L – INSTRUCTIONS, CONDITIONS, AND NOTICES TO

OFFERORS OR RESPONDENTS

(a) L.4 PHASE TWO TECHNICAL PROPOSAL

(1) L.4.1 INSTRUCTIONS FOR PHASE TWO TECHNICAL

PROPOSAL PREPARATION

(i) L.4.1.1 PHASE TWO PAGE AND FORMATING

DIMENSIONS AND LIMITATIONS

Section L.4.1.1 PHASE TWO PAGE AND FORMATING DIMENSIONS AND LIMITATIONS is hereby DELETED in its entirety and REPLACED with the following:

L.4.1.1 PHASE TWO PAGE AND FORMATING

DIMENSIONS AND LIMITATIONS

Offerors must organize the Technical Proposal according to the technical evaluation criteria listed in Section M. Thus, below please find the Technical Proposal page and formatting dimensions and limitations:

• Paper Size:

o Letter or American National Standards Institute (ANSI) Letter (i.e., 8.5 by 11.0 inches or 215.9 millimeters (mm) by 279.4 mm);

or o A4 (i.e., 8.27 inches × 11.7 inches or 210mm × 297 mm).

• Type Size: 12-point font

• Font Style: Times New Roman or similar serif typeface

• Spacing: Single spaced

• Margins: 1-inch (25.4 mm) top, bottom, left, and right

• Page Limitation: Not to exceed 30 pages. USAID will not consider any pages that exceed the prescribed page limitation.

• Front Matter: Below please find the front matter that does not count against the 30-page limitation:

o Cover Page (no more than 1 full page);

o Table of Contents;

o List of Acronyms or Initialisms; and o Executive Summary (no more than 2 pages).

Request for Proposal (RFP) (Phase II) Solicitation No. 72036719R00009

Amendment No. 01

• Technical Proposal Corpus: Below please find the requisite written texts that count against the 30-page limitation:

o Technical Approach and Understanding (25-page limit); and o Management and Staffing Plan (5-page limit).

• Required Annexes: Below please find the required annexes (i.e., end matter) that do not count against the 30-page limitation, but each of which may have its own page or other limitations:

o Past Performance Information;

o Listing of all known subcontractors, subrecipients, and consortium or resource partners, if any;

o Standard Form (SF)-294 Subcontracting Reports;

o Résumés or curricula vitae (CVs) of Key Personnel with three references (please provide full reference contact information: name, position, relationship, email address, and telephone number);

o Letters of commitment from proposed Key Personnel;

o Letters of commitment from Major Subcontractors, if any;

o Branding Implementation Plan and Marking Plan (please see Section L.7 below); and o Organizational Chart (two pages or fewer).

Offerors must submit documents in MS Word or PDF (.pdf). DO NOT send files in ZIP1 file format.

The Technical Proposal must include the information set forth below.”

[END L.4.1.1]

(ii) L.4.1.1.3.1 PAST PERFORMANCE INFORMATION

Section L.4.1.1.3.1 PAST PERFORMANCE INFORMATION is hereby DELETED in its entirety and REPLACED with the following:

L.4.1.1.3.1 PAST PERFORMANCE INFORMATION [see Section M.2.2.4]

1. The offeror must provide past performance information for itself and each major subcontractor (i.e., “major subcontractor” means a subcontractor whose proposed subcontract equals or exceeds 20 percent of the contract value) in accordance with the following:

(a) List up to five of the most recent (i.e., within the past 10 years) and a relevant contract, cooperative agreements, grants, or other donor funded projects of similar efforts for offeror and international or local sub-offerors. The most relevant indicators of performance are contracts of

1 An archive file format that supports lossless data compression.

Request for Proposal (RFP) (Phase II) Solicitation No. 72036719R00009

Amendment No. 01 similar magnitude and complexity to this requirement. The offeror must also have a record of past performance and demonstrated experience in undertaking and successfully managing performance-based contracts.

(b) The Offeror should demonstrate an understanding of building governance and accountability, preferably in WASH sector in Asia. The Offeror should demonstrate utilization and awareness of the risk of ‘do no harm’ has experiences of developing conflict impact assessment tools, as well as an ability and skills to advance challenging governance reform processes with host country, USAID and other donors.

(c) Provide for each of the awards listed above a list of contact names, job titles, telephone numbers, email addresses, and a description of the performance that includes:

• Project name;

• Award number;

• Award type (i.e., fixed price or cost reimbursement contract, cooperative agreement, grant, or other donor funded award);

• Project dollar value;

• Project period of performance;

• Project implementation location(s);

• statement of work or complexity/diversity of tasks; and

• skills/expertise required;

(USAID recommends that the Offeror alert the contacts that their names have been submitted and that they are authorized to provide performance information concerning the listed contracts if USAID requests it.)

2. If extraordinary problems impacted any of the referenced contracts, provide a short explanation and the corrective action taken (as required by FAR § 15.305(a)(2)).

3. Describe any quality awards or certifications that indicate exceptional capacity to provide the technical assistance described in the statement of work.

4. Performance in Using Small Business (SB) Concerns (as defined in FAR § 19.001).

(a) This section (d) is not applicable to offers from small business concerns.

(b) As part of the evaluation of performance in RFP Section M.3, USAID will evaluate the extent you used and promoted the use of small business concerns under current and prior contracts. The evaluation will assess the extent small business concerns participated in these contracts

Request for Proposal (RFP) (Phase II) Solicitation No. 72036719R00009

Amendment No. 01 relative to the size/value of the contracts, the complexity and variety of the work small business concerns performed, and compliance with your SB subcontracting plan or other similar small business incentive programs set out in your contract(s).

(c) For USAID to fully and fairly evaluate performance in this area, all offerors who are not small business concerns must do the following:

(i) Provide a narrative summary of your organization’s use of small business concerns over the past three years. Describe how you actually use small businesses--as subcontractors, as joint venture partners, through other teaming arrangements, etc. Explain the nature of the work small businesses performed--substantive technical professional services, administrative support, logistics support, etc.

Describe the extent of your compliance with your SB subcontracting plan(s) or other similar SB incentive programs set out in your contract(s) and explain any mitigating circumstances if goals were not achieved.

(ii) To supplement the narrative summary in (A), provide a list of the recent contracts [recent contracts or the timeframe for “recent” is considered not more than 2 years] for which you submitted subcontract reports to eSRS (FAR § 52.219- 9(d)(10) and a copy of any similarly recent subcontracting reports if they were not submitted to eSRS.

(iii) Provide the names and addresses of three SB concerns for us to contact for their assessment of your performance in using SB concerns. Provide a brief summary of the type of work each SB concern provided to your organization, and the name of a contact person, their title, phone number, and email address for each.

(iv) Offerors must provide information that allows the evaluation of the

Offeror’s: technical capability, including quality of services, cost control techniques and capability, including accuracy in financial reporting; Offeror’s compliance with delivery schedules thus ensuring timely compliance of award’s requirements; Offeror’s business relations with its clients, providing examples how it addressed problems and controversies and how issues were identified and resolved in a timely manner; of the Offeror’s key personnel, including prompt and satisfactory changes, if identified during contract performance; and the Offeror’s compliance with the utilization of small business concerns. CPAR information is accepted.”

[END L.4.1.1.3.1]

Request for Proposal (RFP) (Phase II) Solicitation No. 72036719R00009

Amendment No. 01

[END L.4.1]

[END L.4]

(b) L.5 COST PROPOSAL

(1) L.5.1 INSTRUCTIONS FOR COST PROPOSAL PREPARATION

(i) L.5.1.8 CONSOLIDATED BUDGET

Section L.5.1.8 CONSOLIDATED BUDGET is hereby DELETED in its entirety and REPLACED with the following:

L.5.1.8 CONSOLIDATED BUDGET

The Offeror must provide a separate budget for each major sub-offeror, which details all proposed costs by summary cost categories using the budget line item headings in Section L.5.2.1. This consolidation should detail all major sub-offeror costs in the appropriate cost line item. This budget should not have the sub-offeror line item. The budget should still indicate who the service provider will be – Prime, Sub-offeror A or Sub-offeror B.”

[END L.5.1.8]

[END L.5.1]

(2) L.5.2 BUDGET PREPARATION GUIDANCE

(i) L.5.2.3.1 SUPPORTING DOCUMENTATION

Section L.5.2.3.1 SUPPORTING DOCUMENTATION is hereby DELETED in its entirety and REPLACED with the following:

L.5.2.3.1 SUPPORTING DOCUMENTATION

The Offeror must provide additional supporting budget documentation to substantiate all proposed costs. Negotiated Indirect Cost Rate Agreements should be included in the Cost Proposal. In addition, AID Form 1420-17 – Offeror Employee Biographical Data Sheets, should be submitted for each position with identified personnel. The form must be signed and dated by the individual and the Offeror (or sub-offeror) in the appropriate spaces with all blocks completed. Use of Biographical Data Sheets that are more than three months old are not acceptable. If the individual is on an appointment of less than 12 months (e.g., an academic year appointment for a university faculty member), the form must

Request for Proposal (RFP) (Phase II) Solicitation No. 72036719R00009

Amendment No. 01 indicate the number of months in the appointment period. If continuation sheets are used, each must contain the individual’s name, signature, and date.

Other supporting documentation should be submitted if the Offeror believes that it is necessary to substantiate or support costs proposed by the Offeror.”

[END L.5.2.3.1]

[END SECTION L.5.2]

[END SECTION L.5]

[END SECTION L]

[END PART IV]

[END RFP AMENDMENTS]

II. KAWAS QUESTIONS SUBMITTED BY SELECTED OFFERORS AND

CORRESPONDING ANSWERS

A. SECTION B – SUPPLIES OR SERVICES AND PRICES/COSTS

1. Section B.5 (Indirect Costs CPFF), paragraph 1 (Note), page 14. The Note states that “Indirect costs shall not be allowed for local organizations. All costs for local organizations shall be budgeted and billed as direct costs.” We request that USAID provide offerors with the flexibility of entering into Cost-Plus-Fixed-Fee (CPFF) or Time and Materials (T&M) type subcontracts with local organizations when the following conditions are met:

• A local organization can provide evidence that it has an accounting system capable of administering a CPFF or T&M type subcontract

• A local organization is committed to undergoing annual audits of their indirect cost rates in accordance with the cost principles of FAR Part 31

• The prime contractor has the appropriate subcontract management systems in place to ensure a CPFF or T&M subcontract with a local organization is administered properly

• A local organization has established indirect cost rates and the use of indirect cost rates is an integral part of their cost accounting standards

With strong prime contractor oversight and the requirement for local organizations to undergo annual audits in accordance with the cost principles of FAR Part 31, these contracting mechanisms serve as a tool to build the capacity of local organizations so they can eventually have the financial and administrative capacity to receive direct funding from

USAID.

Request for Proposal (RFP) (Phase II) Solicitation No. 72036719R00009

Amendment No. 01 Furthermore, managing cost-reimbursement subcontracts with indirect costs billed as direct costs typically results in higher financial and administrative burden for prime contractors because they will have to review the subcontractor’s indirect costs every month and reduces overall cost control because monthly costs will vary significantly based on the fluctuation of indirect costs incurred by the subcontractor every month. Indirect cost rate ceilings (under CPFF subcontracts) and fixed multipliers (under T&M subcontracts) reduce the government’s cost risk of potential indirect cost increases and allow for a higher level of cost control and financial and administrative oversight by the prime contractor.

USAID Response: Privity of contract is the legal relationship and responsibilities between parties to the same contract. The government has privity of contract with the prime contractor; the prime contractor has privity of contract with the first-tier subcontractor, but there generally exists no privity of contract between the government and subcontractors. Thus, given that the contractor (i.e., offeror) has privity of contract with its proposed subcontractors, a contractor may opt to enter into subcontracts categorized by price (i.e., fixed-price, incentive, or cost-reimbursement subcontracts per FAR Subparts 16.2, 16.3, or 16.4, respectively) or by services measured by time worked (i.e., time-and-materials or labor-hour subcontracts per FAR Subpart 16.6) with local organizations, or otherwise, at its discretion. The FAR, however, contains certain contract clauses that must “flow down” to subcontractors, irrespective of the type of subcontract or organization.

Moreover, per FAR § 44.201-1(b)(1), “[i]f the contractor does not have an approved purchasing system, consent to subcontract is required for cost-reimbursement, time-and-materials, labor-hour, or letter contracts, and also for unpriced actions (including unpriced modifications and unpriced delivery orders) under fixed-price contracts that exceed the simplified acquisition threshold, for…cost-reimbursement, time-and-materials, or labor-hour subcontracts.” Furthermore, the contractor remains responsible for monitoring the subcontractor’s cost principles and procedures per FAR Part 31, including FAR §§ 31.203, 31.204, and 52.216-7, respectively. If a subcontractor, local institutional or otherwise, has an established and certified indirect cost rate, then such costs are allowable to the extent they are reasonable, allocable, and determined to be allowable under FAR §§ 31.201, 31.202, 31.203, and 31.205, respectively. Nevertheless, if the proposed subcontractor does not have certified indirect cost rates, the contractor must budget and bill all subcontract costs for organizations, local institutional or otherwise, as direct costs per FAR § 31.202.

The local subcontractor must propose indirect cost rates based on audits from the past three years by a reputable audit firm or USAID Regional Inspector General (RIG) approved audit firm to provide evidence for the fulfillment of the above conditions.

USAID has amended RFP Section B.5 above accordingly.

2. Section B.5, paragraph 2, page 14: The solicitation states that “Indirect costs shall not be allowed for local organization.” Can USAID confirm whether this applies to local institutional subcontractors who already have well established and certified indirect cost rates?

USAID Response: Please refer to the USAID response under question No. 01 above.

Request for Proposal (RFP) (Phase II) Solicitation No. 72036719R00009

Amendment No. 01

3. Section B.7 (Multi-Year Contracting), paragraph 1 – 2, page 14 and 15 states that the proposed cancellation ceiling for contract year two – five is “TBD.” As this is a CPFF contract, all allowable, allocable, and reasonable costs incurred by the contractor are reimbursed; therefore, we will not incur any costs that would have to be amortized over the life of the contract. As required by FAR 52.217-2, we respectfully request USAID to change the cancellation ceiling for this contract from “TBD” to “$0.00.”

USAID Response: As per FAR § 17.109, “[t]he contracting officer shall insert the clause at 52.217-2, Cancellation Under Multi-year Contracts, in solicitations and contracts when a multi-year contract is contemplated.” Given that KAWAS meets the definition of an incrementally funded, multi-year contract per FAR § 17.103, “[a]ll program years except the first are subject to cancellation” per FAR § 17.106-1(c)(1). Further, FAR § 17.106- 1(c)(1) provides “[f]or each program year subject to cancellation, the contracting officer shall establish a cancellation ceiling. Ceilings must exclude amounts for requirements included in prior program years. The contracting officer shall reduce the cancellation ceiling for each program year in direct proportion to the remaining requirements subject to cancellation.” The contractor must not incur any costs which are required to be amortized over the life of the contract per FAR §§ 17.103 and 52.217-2. Moreover, the contract award must state a cancellation ceiling for each contract year subject to cancellation.

Nevertheless, the ceilings must be incorporated at the time of award based upon information provided in the offeror’s proposal. Thus, the apparent successful Offeror may request changing the cancellation ceiling to “$0” during final negotiations and before selection (i.e., award to successful Offeror) per FAR § 15.504.

B. SECTION C – DESCRIPTION/SPECIFICATIONS/STATEMENT OF WORK

4. Section C.6.2 (Program and Illustrative Interventions) we respectfully believe that two expected outcomes are beyond the scope of KAWAS and should be removed from the RFP or reformulated. Specifically:

(a) Section C.6.2.1.2.1 (Expected Outcomes), paragraph 5 (bullet), page 33 of the

RFP states “At least one additional season of agriculture production.” Agricultural extension seems to be beyond the scope of KAWAS.

USAID Response: Section C.6.2.1.2 emphasizes coordination with local government and other activities to ensure proper use of physical assets supported by KAWAS funding. USAID expects physical assets, particularly Multi-use water system and/or small scale irrigation system supported through KAWAS should allow beneficiaries to increase cropping intensity by bringing back fallow land into cultivation or add at least one additional season of agriculture production which ultimately contributes to higher economic yield of the vulnerable households. Thus, USAID affirms that “[a]t least one additional season of agriculture production” falls within the scope of KAWAS, remaining in the RFP with no removal or reformulation.

(b) Section C.6.2.3.2.1 (Expected Outcomes), paragraph 5 (bullet), page 37 of the RFP states “Integrated city-wide sanitation plans that establish a basis for phased

Request for Proposal (RFP) (Phase II) Solicitation No. 72036719R00009

Amendment No. 01 implementation of infrastructure and services for sewerage, fecal sludge management, solid waste, and stormwater drainage.” Solid waste and stormwater drainage seem to be beyond the scope of KAWAS, however solid waste and stormwater considerations may be part of a municipal sanitation plan.

USAID Response: USAID’s KAWAS activity must develop an integrated city-wide sanitation plan at the municipal level. As provided in the RFP, the contractor should coordinate with the Department of Water Supply and Sewerage and local governments in selection of municipalities for engagement in city-wide integrated sanitation planning (i.e., sewerage systems, fecal sludge, solid waste, and drainage). However, please note that the outcome only represents a plan and not infrastructure or other investments by KAWAS in solid waste and stormwater drainage.

5. Section C.6.2.1 (Objective 1: Increased Sustainable Access to Safe Drinking Water and

Water for Productive Uses), paragraph 1 – 15, starting on page 29 of the RFP, construction/renovation of permanent drinking water and sanitation infrastructure is an important activity under component 1. During Phase I answer to questions USAID provided guidance that “USAID recommends that offerors should allocate at least 30 percent of the total budget for construction.” Can USAID please confirm if this guidance is still correct? Does USAID/Nepal have specific requirements regarding the management of construction activities? Will USAID/Nepal review and approve engineering designs and possibly inspect construction? Would that be through a USAID engineer or through an existing A&E mechanism?

USAID Response: USAID confirms that selected offerors should allocate at least 30 percent of its total budget for construction. Further, a licensed engineering firm should complete engineering designs. Moreover, a locally licensed engineering firm (i.e., international or local firm legally registered to practice the relevant engineering disciplines) should prepare, review, and certify the engineering design (i.e., defining construction requirements, producing the drawings and technical specifications, and preparing the construction cost estimate) to ensure quality, accuracy, and completeness prior to procurement of construction services. Lastly, USAID reserves the right to contract with an independent engineering firm to review engineering designs for completeness and inspect construction for quality assurance.

6. Section C.6.2.5, paragraph 1, page 39 of the RFP describes Objective 5 of KAWAS: to provide “Supplemental Assistance to link disaster response and recovery activities with support for sustained improvements in water and sanitation service delivery.” We understand this objective is to be used to respond to natural disasters when they happen.

Can USAID please provide more guidance on how to budget for this objective? Given the unknown nature of this objective, could USAID please provide a plug figure to be used by all offers? During implementation, would the prime contractor only be allowed to utilize these funds if and when approved by USAID? Will the actual obligation of objective 5 funding be conditioned by an occurrence of a qualifying event/natural disaster?

Request for Proposal (RFP) (Phase II) Solicitation No. 72036719R00009

Amendment No. 01 USAID Response: Yes, USAID intends to activate Objective 5 to respond natural disasters when they happen. Thus, selected offerors should plan to allocate approximately 5 percent of the total budget for this objective. Upon USAID approval, either the prime or subcontractors can use the proposed budget. Obligation of Objective 5 funding will only occur after USAID approval, if and when required.

7. Section C.9 (Co-Design), paragraph 5 (last one), page 43 of the RFP states that

“following the co-design workshop, the Contractor must develop a clear, concise performance-based work plan to the extent possible that will effectively measure the Contractor’s performance no later than 160 calendar days of completion of co-design workshop” while Section F.6.1 on page 51 of the RFP states that the Five-year summary Work Plan and Year 1 detailed Work Plan are due within 30 days of completion of co-creation or co-design workshop. Can USAID please confirm the number of calendar days after the co-design workshop in which the contractor must deliver the Five-Year summary Work Plan and Year 1 detailed Work Plan?

8. USAID Response: USAID confirms the contractor must develop a clear, concise performance-based Work Plan (i.e., contract administration plan) to the extent possible that will effectively measure the Contractor’s performance no later than 30 calendar days of completion of the co-design workshop. USAID has amended RFP Section C.9 above accordingly.

9. Section C.10, paragraph 3, page 44: Can USAID please confirm that the draft MERL plan can be submitted as a non-counting annex?

USAID Response: Yes, USAID confirms that selected offerors must submit the draft MERL Plan as a non-counting annex.

C. SECTION F – DELIVERIES OR PERFORMANCE

10. Section F.9.1 (Key Personnel), paragraph 1, page 59 of the RFP specifies that offerors must present five key personnel positions. This puts a burden on USAID to review and approve proper candidates and can lead to significant delays in replacing staff when necessary. Can USAID allow offerors the flexibility to determine the appropriate number of key personnel? By allowing for this flexibility to name up to five key personnel, USAID is enabling alignment between offerors’ staffing structures and their proposed technical approach.

USAID Response: After careful consideration, USAID has amended the RFP Section F.9.1 key personnel specifications.

11. Section F.9.2.1 (Chief of Party), paragraph 3 (last bullet), page 60 of the RFP, minimum

COP qualifications lists “preference for fluent Nepali speakers,” this requirement significantly reduces the pool of possible candidates matching the requirement, notably in terms of having experience managing USAID water projects and thus restricts

Request for Proposal (RFP) (Phase II) Solicitation No. 72036719R00009

Amendment No. 01 competition. Can USAID please consider removing this preference from the COP qualifications?

USAID Response: After careful consideration, USAID has amended the RFP Section F.9.2.1 Nepali language preference. Nevertheless, the proposed Chief of Party candidate must still meet the other required minimum qualifications.

D. SECTION H – SPECIAL CONTRACT REQUIREMENTS

12. Section H.2.1.4.1 (Additional Requirements for Personnel Compensation), paragraph (all of (a) and (e)) page 70 and 71 of the RFP states that any individual salary or wage may not exceed the employee’s current salary or wage, or the highest rate of annual salary or wage received during any full year of the immediately preceding three years. We respectfully request that all of these references be removed from the RFP as it appears to be inconsistent with AIDAR 752.7007 Personnel Compensation, incorporated in the contract under Section H.2.1.4, which stipulates that personnel compensation be in accordance with the contractor’s established policies, procedures, and practices, with reimbursement subject only to the USAID Contractor Salary Threshold. The limitation on salary increases may preclude contractors from following their established policies, procedures, and practices, as required by AIDAR 752.7007.

USAID Response: No, USAID will not remove references that any individual salary or wage may not exceed the employee’s current salary or wage, or the highest rate of annual salary or wage received during any full year of the immediately preceding three years. The request as worded omits the concluding “…without approval of the Cognizant Contracting Officer.” As per FAR § 31.205-6(b)(2), “[c]ompensation for each employee or job class of employees must be reasonable for the work performed. Compensation is reasonable if the aggregate of each measurable and allowable element sums to a reasonable total. In determining the reasonableness of total compensation, consider only allowable individual elements of compensation. In addition to the provisions of 31.201-3, in testing the reasonableness of compensation for particular employees or job classes of employees, consider factors determined to be relevant by the contracting officer.” Thus, the requested preceding three year salary history or wage information remain relevant factors that facilitate the contracting officer’s determination and corresponding approval that proposed salary increases for employees are reasonable for the work performed under the resultant contract per FAR §§ 31.201-3, 31.205-6(b)(2), and applicable AIDAR cost principles, respectively

13. Section H.2.1.4.1 (Additional Requirements for Personnel Compensation), paragraph (all of (a) and (e)) page 70 and 71 of the RFP state that CCNs and TCNs are held to the Mission’s Local Compensation Plan. We respectfully request that all of these references be removed from the RFP as it appears to be inconsistent with AIDAR 752.7007 Personnel Compensation, incorporated in the contract under Section H.