RFI 72036724RFI00004 USAID e-Governance.pdf

REQUEST FOR INFORMATION (RFI)

Subject: Request for Information No. 72036724RFI00004

Issued Date: September 4, 2024

Comments Due Date: September 18, 2024

Comments Due Time: 4:00 PM Kathmandu, Nepal Local Time

Reference: USAID e-Governance

The United States Government, represented by the U.S. Agency for International Development (USAID) in Nepal, is in the process of designing a new activity entitled USAID e-Governance.

USAID is publishing this Request for Information (RFI) pursuant to FAR 52.215-3 to conduct market research. We are seeking public comments on the DRAFT Statement of Work (SOW) below to inform that design process. Responses to this request for information are not binding on the U.S. Government and do not obligate USAID to issue a solicitation, nor does it commit USAID to pay any cost incurred in the preparation and submission of comments.

Brief Project Description The purpose of the USAID e-Governance activity is to assist the Government of Nepal (GoN) and the private sector in the development and rollout of an effective and efficient e-governance capability that is safe and accessible for citizens.

Requested Information In order to inform the design and maximize potential program impact, USAID invites constructive feedback on the draft SOW (Attachment A), including, but not limited to, feedback on the priority areas listed under each objective. USAID/Nepal is also interested in receiving suggestions from the public on the perceived ability to meet expected results given the four-year timeframe and the funds anticipated to be allocated to this activity. Further, USAID is interested in how best to incorporate into the SOW the flexibility needed to respond to changing circumstances. USAID strongly encourages responses from all types of organizations, firms, and individuals in order to receive a diversity of feedback. These comments will be taken into consideration in the design of the final activity.

In addition to general feedback, USAID would like to receive comments related, but not limited, to the questions listed below:

1. Is the proposed draft SOW, including the activity’s purpose, scope and expected results clear and understandable? What sections should be added, modified, clarified, or elaborated on?

2. Is the proposed draft SOW sufficiently flexible to allow for innovation and collaboration to achieve the proposed results? If not, how could it be improved?

3. Are there key aspects missing from the proposed approach that would be critical to achieving its purpose and expected results? In particular, are there additional critical elements, opportunities, or constraints that need to be accounted for in the proposed approach?

4. Are the proposed purpose and expected results feasible and achievable within the proposed scope and budget? Specifically, is a 8 to 11 million USD budget (subject to the availability of funds) sufficient to achieve the activity’s objectives?

5. Is a four-year period of performance feasible and reasonable for implementing this activity and achieving the expected results? If no, why not?

6. What are the prospects and best opportunities for engaging the private sector in the proposed activity? Is there a role for the Nepali tech diaspora located in various countries?

7. What are the best solutions to foster business creation and inclusive economic growth through this SOW?

8. What specific eService(s) could be developed and implemented initially under the proposed activity to provide the greatest benefit to citizens given the current political and economic context and the state of Government of Nepal institutions?

9. What other comments or recommendations would you like to share with USAID regarding any anticipated solicitation for this requirement?

Please note that USAID/Nepal has determined that this solicitation will be released as a request for task order proposal (RFTOP) under the Active Communities Effective States (ACES) Indefinite-Delivery, Indefinite-Quantity (IDIQ) contract and will be set-aside to the small business IDIQ holders. As such, USAID is not requesting or seeking Sources Sought information.

Submission Instructions Comments in response to this RFI must be submitted via email to the Contracting Officer, Maria Televantos at mtelevantos@usaid.gov with a copy to the Acquisition and Assistance Specialist, Dibya Shakya at dshakya@usaid.gov with the subject entitled: “RFI 72036724RFI00004: USAID e-Governance” no later than the date and time stated above.

Thank you for your interest in the subject request for information.

Sincerely, Maria Televantos Contracting Officer mailto:dshakya@usaid.gov

Attachment A: DRAFT Statement of Work USAID e-Governance

Period of Performance: 2025-2029

Goal: To strengthen the e-Governance ecosystem of Nepal for equitable, accessible and quality service delivery to citizens.

Development Context and Challenge

Nepal is at a crossroads in its democratic and economic development. The civil strife of the recent past has been replaced by a dynamic political ecosystem with new changes of government and challenges, the ever-present problem of supporting economic growth for its millions of citizens, and the establishment of federalism to devolve power to the provinces and municipalities. Since adopting a new Constitution in 2015 as part of the peace process, Nepal has made progress in developing democratic institutions and electronic governance (e-governance) processes. However, the transition from a unitary to a federal state and the competing public policy priorities highlight that Nepal’s e-governance sector, while full of potential, is still in its early stages.

Nepal lags behind high-performing countries in the E-Governance Development Index (EGDI), ranking 125th out of 193 member states. The Online Service Index (OSI), a key component of the EGDI, shows Nepal scoring 0.46, below regional and global averages of 0.61 and 0.55, respectively. The World Bank’s GovTech Maturity Index indicates that Nepal has “some focus” on GovTech but lags behind regional peers such as Bangladesh, India, Pakistan, and Sri Lanka. Moreover, Nepal falls behind on cybersecurity and was ranked 94 of 177 economies in the Global Cybersecurity Index of 2020. There is significant potential to strengthen digital enablers underpinning the digital economy, including data exchange and interoperability, legal and regulatory frameworks, and shared services for integrated e-service delivery.

Currently, government agencies in Nepal operate in silos, leading to inefficient resource allocations, duplication of efforts, and a lack of standardized processes, which impact the efficiency and effectiveness of e-governance services. Inefficient digital ecosystem development in Nepal hinders the country’s potential to drive exports, create jobs, and support national digital transformation. The lack of interoperability and data sharing capabilities within Nepal’s systems affects citizens directly and does not facilitate the establishment of new businesses.

Nepal has made efforts to improve its telecommunications and e-governance infrastructure significantly in recent years. Despite this, according to the the International Telecommunications Union (ITU, the UN’s specialized agency for digital technology), in 2022, only 49.6% of the population used the internet, while mobile coverage is primarily 2G with some 3G and LTE (https://datahub.itu.int/). Similarly, according to a recent World Bank document, seventy-two percent of people subscribe to basic mobile telephony (2024), 52 percent of people are estimated to use the internet (2021), and 29 percent of people are estimated to have made or received a digital payment (2021). Forty percent of households subscribe to fixed broadband, but these are mostly in major urban areas, and 49 percent of people subscribe to mobile internet; both lag global averages of 61 percent and 59 percent, respectively. The price of fixed broadband (5GB per month) as a percentage of gross national income per capita is 10 percent, above the affordability target of 2 percent.

On the positive side, public-private partnerships (PPPs) are increasing, with private entities showing greater willingness to collaborate for better service delivery. Web-based systems and mobile apps for https://datahub.itu.int/ different public services are on the rise. Improved transparency in governance is another achievement, due to the use of technological solutions like e-procurement. For example, the Sub-National Treasury Regulatory Application (SuTRA), the Line Ministry Budget Information System (LMBIS), and the Project Bank Management Information System (PMBIS) are all used in Nepal.

Systems like the Judiciary Case Management System and the Voter Registration System have enhanced transparency and efficiency. National-level initiatives, including the Early Alert and Response System and the improvements made to Public Financial Management contribute to a clearer and more accountable governance process. Despite these achievements, increased ICT utilization in both public and private sectors will be needed to meet rising citizen digital expectations.

Estimates suggest that IT services exports from Nepal exceed US$500 million, with around 100,000 people employed in the digital industries. The Digital Nepal Framework (DNF)1, adopted by the government in 2019, and other national strategies see digitalization as integral to Nepal’s development. For instance, the government has declared FY2025-FY2035 as an “IT Decade” to position Nepal as a global IT hub and generate jobs.

Theory of Change and Relationship to Strategy IF the GoN develops systems that integrate data across Ministries for effective eService delivery AND the GoN has the skills necessary to develop, manage, operate, and maintain data exchange and eServices systems, AND eServices are user-centric and accessible across all populations, THEN GoN will provide higher quality and more inclusive digital public services AND the GoN will be more efficient, transparent, and responsive to citizen’s needs, thus collectively contributing to more effective, participatory, and equitable democratic ecosystems.

To this end, USAID/Nepal intends to engage with key government institutions, development partners, the private sector, and citizens from targeted populations as key stakeholders of this activity. This activity aims to contribute to the 2020-2025 USAID Country Development Cooperation Strategy’s Development Objective 1: More Effective, Participatory, & Equitable Democratic Ecosystem; and Intermediate Results 1.1: Integrity of democratic systems strengthened; and 1.3: Citizen demand for democracy strengthened.

Complementarity with USAID programming Through the Democratic Processes mechanism, USAID partners NDI and IRI will support development of legal and regulatory frameworks on data privacy, data ownership and custodianship principles, data protection and others. USAID Trade and Competitiveness is providing technical assistance and capacity building in the digital sector, facilitating access to finance and business development services. While these instruments will be working concurrently, coordination and agreed-upon division of responsibilities are key to building the overall framework under which an e-Governance system is to be designed.

Objectives USAID e-Governance will address long-standing challenges related to an absence of integrated digital service delivery by developing streamlined, secure, and user-centric eServices for businesses or citizens, building capacities across GoN entities to adequately design and operate such systems, and supporting equitable citizen access to such services. eServices intend to be high-impact government-to-businesses (G2B) or government-to-citizens (G2C) integrated eServices. The activity

1 The DNF is a comprehensive GoN national digital strategy with the goal of leveraging digital technologies for economic transformation.

will set a direction that will accelerate transformation into an agile digital government, which will ensure that Nepalis receive high quality, efficient and accessible government services. Comprehensive measures are needed to address data privacy and data protection, particularly in the context of e-governance and the digital economy. These measures must address privacy concerns, data security, and the protection of individuals' rights within the digital ecosystem.

In this complex environment, the Contractor must employ adaptive management throughout implementation. The SOW identifies the minimum requirements, and the Contractor must continually learn, adapt and utilize innovative approaches to advance activity objectives throughout the activity lifecycle within the overall scope of the contract and budget.

This activity has three objectives:

Objective 1: Develop and implement eService(s) integrating data across ministries and levels of government

The Contractor must work with the e-GC, MoCIT and government entities that own data or are responsible for specific processes to design all processes related to the establishment of specific eService(s). The contractor must develop a data inventory and service mapping activities to gain a bird's-eye view of the data and services under the proposed eService. This will include exploring relationships with other data-related agencies to interlink or exchange such information. The contractor must coordinate with the World Bank and seek complementarity with this e-governance activity's user-centric service approach.

Once this phase is completed the Contractor must clearly articulate specific eServices aimed at delivering governance functions or support to users. Such services can be horizontally integrated across government units or vertically integrated across all three levels of government within a specific industry or sector within the economy, such as healthcare, finance, or education, prioritizing interoperability solutions and tailored to Nepal’s unique needs and regulatory environments.

As business processes are developed to streamline and automate eService workflows and outline responsibilities, the contractor must place utmost importance on implementing a comprehensive data and digital security framework that encompasses robust encryption, stringent access controls, secure data handling practices, and data protection measures. This framework will safeguard against breaches, unauthorized access, and data vulnerabilities within the digital infrastructure, ensuring the security and integrity of data.

Once all planning phases conclude, the contractor must pilot the eService(s). If the pilot is functional according to the parameters established by the contractor and the GoN and solves the targeted problem, then compliance, cybersecurity-related testing, beta testing, and implementation will commence. Considering the prevalence of open-source software for e-Governance systems, the contractor should consider this option. Given Nepal’s federal structure, solutions could be launched at the provincial or local level first. Accessibility features, such as offering the service in different languages, must be included to ensure the largest possible coverage in targeted locations.

The Contractor must support, but is not limited to, the following activities:

● Develop specific policies and regulations in coordination with other development partners and the GoN if gaps are found in the establishment of the overall e-Governance framework.

● Develop a limited number of high-impact interoperable G2B or G2C eServices with horizontal or vertical integration.

● Provide technical expertise to the GoN (at the appropriate level of government) in developing business processes with clear governance structures and procedures for implementation of e-Services.

● Establish interoperability standards (in coordination with the World Bank) to ensure seamless interaction between different e-governance systems.

● Create and implement comprehensive mechanisms for enforcing digital rights policies, data encryption standards, and privacy considerations including avenues for addressing violations and infringements.

● Emphasize inclusive language accessibility such as providing content in multiple official languages to cater to diverse linguistic populations.

Objective 2: Skill building to all three levels of government to operate data platforms and eServices

Key institutions in charge of Nepal’s digital governance, such as ministries and agencies, require the human resources necessary to develop, maintain, and enhance digital services, manage existing digital government platforms, ensure the interoperability of digital systems, and provide high-quality digital government services through a lifecycle approach.

Given the GoN’s IT constraints, technical capabilities are limited, and most institutions struggle to develop, manage, and deliver digital government platforms and services. Additionally, Nepali government bodies responsible for overseeing digitalization lack the necessary human resources to effectively manage these systems. The Contractor must identify solutions that address the issues around the management and advancement of existing digital infrastructure and the development of eServices.

As seen in public administrations worldwide, compensation for ICT-related expertise within Nepal’s public sector is significantly lower than in the more lucrative private sector. Career development opportunities are also more restricted in the public sector, and high staff turnover prevents the GoN from retaining specialized skills.

The Contractor’s support must include, but is not limited to, the following activities:

● Map out required IT skill sets to operate eServices as well as higher-level data exchange platforms and digital enablers.

● Map out existing IT human resources and skill sets to determine skill gaps.

● In coordination with other development partners, develop Standard Operating Procedures (SOP) on management of the entire digital chain, from operation of digital enablers and the data exchange platform to administration of eServices. A lifecycle management approach must be considered, including acquisitions, system administration, database management, cybersecurity, data privacy, business process use, and disposition.

● Support specific GoN ministries or levels of government in identifying the most appropriate IT training mechanisms to factor in turnover and ensure continuous professional development.

Implement specialized digital capacity building programs tailored to the eGC, MoCIT and line ministries and/or subnational governments administering eServices.

● Develop a government handover plan to institutionalize such skill building.

Objective 3: Enhance accessibility of eServices in targeted locations

In Nepal, a significant digital divide persists across various population segments, including socio-economic status, geographic location, language, gender, age, and ability. Addressing these barriers is essential to prevent the perpetuation of existing social and economic disparities, which ultimately exclude disadvantaged groups from accessing vital government services and fully participating in the digital economy. Additionally, poor quality and accessibility of online services can lead to inefficiencies in government operations and deprive citizens of essential services.

On the supply side, eServices need substantial improvements, particularly in user experience, accessibility, and service scope. For instance, Estonia's "e-Estonia" and Ukraine’s “Diia” offer valuable insights into efficiently and comprehensively delivering government services through digital platforms. The contractor must examine such successful models and best practices to suit the unique circumstances and needs of specific regions, thereby enhancing the safety, efficiency, accessibility, and citizen-centric nature of government service delivery ecosystems.

On the demand side, the Contractor must establish Common Service Centers (CSCs) at the provincial and local levels where appropriate. Currently, an active informal economy of service providers assists citizens in accessing digital government services. However, the reliability of these providers is limited by the absence of government oversight. The Contractor must incorporate this informal sector into the operation of the service centers.

Similar to the Digital Seva Kendra initiative in neighboring India, such physical locations can serve as access points for delivering a broad range of digital services. With digital literacy, device availability, and connectivity still improving in Nepal, government-certified local support centers can significantly enhance citizen awareness and use of digital services as they are rolled out by the GoN. The contractor must pilot the establishment of subnational government-operated CSCs to offer immediate services while simultaneously developing incentives for private sector providers to enter the market.

The Contractor’s support must include, but is not limited to, the following activities:

● Implement user-centered design principles to create efficient and user-friendly online government services.

● Implement accessibility standards and best practices to ensure that digital infrastructure supports a wide range of users, especially those with limited or no digital literacy skills.

● Provide content in targeted locations’ predominant languages to cater to diverse linguistic populations.

● Pilot government certified service centers in partnership with local governments and private sector including the participation of the existing informal network of service providers.

● Create incentives, such as supporting the regulatory environment towards a private sector-led expansion of common service centers.

Results

The Contractor must achieve, but is not limited to, the following results:

● High-impact interoperable, citizen-centered G2B or G2C eService(s) available within targeted locations with adequate data privacy, data protection and cybersecurity standards.

● Functional business processes and interoperability standards with clear governance structures and procedures for implementation of e-Services.

● Standard Operating Procedures (SOP) on digital chain management, with lifecycle process and digital rights considerations in place.

● Targeted GoN staff from targeted ministries or levels of government adequately trained on eServices and digital platform management.

● eServices and digital platform management training curricula (either online or in-person) in place.

● User-centered design principles to create efficient and user-friendly online government services in place.

● Pilot government certified service centers in partnership with local governments and private sector operations.

● Incentives in place towards a private sector-led expansion of common service centers.

Cross-Cutting Themes

Private Sector Participation Most digital government systems, services, and platforms, around the world, are developed and maintained by private sector contractors. The private sector (small and large) is a key player influencing successful e-Governance by creating the system environment (the unique technical and operating characteristics of an IT system and its associated environment, including the hardware, software, firmware, communications capability, organization, and physical location) and supporting e-participation with respect to e-Governance. With a lot to gain from digitization, the private sector can play an outsized role in realizing the potential of this vibrant economy and ensuring everyone has access to digital tools like software and technology and the skills to use those tools. However, with the rise of Digital Public Goods (DPGs), many governments are turning towards open-source software solutions and the role of the private sector may shift.

With respect to advancing the private sector role through public-private dialogue and creation of a partnership between GoN and the private sector and in support of digital government efforts, the Contractor must seek opportunities for private sector participation on all three objectives. The contractor may draw upon ICT companies across the private sector to foster the public-private dialogue on digital services. USAID e-Governance will advance public-private dialogues and strengthen the partnership between GoN and the private sector in support of digital services.

Development Partner and GoN Collaboration Currently, many donors and multilateral banks are envisioning e-Governance support in Nepal. As of now, the World Bank and USAID are the closest to implementing such assistance. Among other objectives, the World Bank intends to support GoN entities to enhance digital government through more resilient and sustainable digital infrastructure and improved digital services. This World Bank project will support delivery of digital services through three components: improving access to and adoption of broadband; enhancing data hosting, Digital Public Infrastructure (DPI), and the trust ecosystem (cybersecurity and data protection); and skill building on IT and digital literacy. DPI is a set of digital building blocks which provide access to public and private services at a societal scale. These building blocks are interoperable, built on open standards and specifications, and governed by enabling rules to drive innovation, inclusion, and competition in the digital economy. In other words, DPI is an infrastructure approach to developing common, interoperable, and foundational digital systems such as identification, data sharing, and digital payments which underpin digital services.

These systems are modular, buildable, and cut across Ministries and services. The World Bank expects its loan to be approved by its board in April 2025 after which it would go to Nepal’s cabinet for approval.

The main government partners for this contract will be the Ministry of Communication and Information Technology (MoCIT) and the e-Governance Commission (eGC) as well as line ministries and subnational governments responsible for specific eServices. MoCIT, the policymaker for the digital sector, oversees the expansion of digital infrastructure and services deployment. The eGC, chaired by the Prime Minister, is poised to serve as a strong coordinating body to test, strengthen, and scale up e-governance solutions. The commission is responsible for developing and implementing standards for integrated data systems, establishing norms for electronic financial transactions, conducting feasibility studies for electronic systems, identifying and mitigating e-governance risks, ensuring data sharing across government tiers, and coordinating with international institutions for software export.The Ministry of Federal Affairs and General Administration (MOFAGA) is another key ministry that coordinates activities undertaken by local government, including initiatives on e-Governance.

Gender and Inclusive Development (GID) Women and marginalized groups in Nepal face considerable barriers to accessing digital services.

Cultural norms and societal expectations often limit women's opportunities to engage with technology. According to the Nepal Telecommunications Authority, only 30% of women in rural areas have access to the internet compared to 55% of men. Smartphone ownership mirrors this trend, with 25% of rural women owning smartphones compared to 50% of rural men. This digital divide is further exacerbated by lower levels of digital literacy among women compared to men. The educational gap, coupled with traditional roles that prioritize domestic responsibilities over education for women, contributes significantly to this disparity. Cultural norms and societal expectations also limit women's and marginalized group’s opportunities to engage with technology, especially since women tend to remain in the household doing domestic chores and caring for the extended family. Dalits and other lower castes, given the nature of their work and income levels, have fewer opportunities to make the digital leap.

Addressing these disparities requires targeted interventions, such as community-based access to online services, affordable internet access through digital service centers, and policies that greater access to digital services, thereby promoting digital inclusion. Bridging this digital divide is crucial for fostering an inclusive digital society in Nepal, ensuring that all citizens can participate in and benefit from the nation's digital transformation. Therefore, the contractor should take into consideration all these aspects and offer solutions to advance women and marginalized groups access to digital service and opportunity to be part of the digital transformation process.

Acronyms:

e-GC e-Governance Commission

EGDI E-Governance Development Index

FY Fiscal Year

G2B Government-to-Business

G2C Government-to-Citizens

GID Gender and Inclusive Development

GoN Government of Nepal

ICT Information and Communications Technology

IT Information Technology

MoCIT Ministry of Communication and Information Technology

OSI Online Service Index

PLGSP Provincial and Local Government Strengthening Project

PPPs Public-Private Partnerships

SOP Standard Operating Procedures

USAID United States Agency for International Development

US$ United States Dollars

WB World Bank