72039124Q00009 PREIA Review signed.pdf

Samuel Matthews Digitally signed by Samuel Matthews Date: 2024.08.16 09:54:52 +05'00'

SECTION I – SCOPE AND STATEMENT OF WORK

I. BACKGROUND:

Name of the Project: Pakistan Regional Economic Integration Activity (PREIA)

Number: AID 391 C 15 00012 Award Type: Contract Life of Project: September 01, 2015 – June 30, 2024 Total Estimated Cost (TEC): $24,092,072 Total Sub Obligated to Date: $24,092,072

Through the ‘Pakistan Regional Economic Integration Activity’ (PREIA), USAID/Pakistan intends to further the development of the country’s trade sector by improving Pakistan’s competitiveness in international markets. The purpose of the Activity is to increase access to international, in particular, regional markets in order to enhance Pakistan’s regional economic integration with its neighbors. Focusing primarily on trade promotion and facilitation, PREIA will improve the international trade environment, resulting in increased trade and transit volumes.

This Activity should support and build the capacity of business enterprises, associations, chambers of commerce and industry, academia, advocacy groups and the Government of Pakistan (GoP) so they can collectively collect data, generate alternative options, and make legal, policy, operational, and institutional changes to the business enabling environment and in trade policy and facilitation. Throughout the processes, it will directly offer the technical assistance necessary to focus on the reforms that will have the biggest impact in trade.

There are three cross cutting principles, which must be integrated in activities under each component:

Increased Technology Adoption:

PREIA will facilitate implementation and enhance the impact of all aspects of the Activity through the appropriate use of information and communication technology. Examples could include crowdsourcing comments on prospective reforms, improving customs to customs information sharing through common platforms, enhancing, and delivering market information, sharing information on international standards, utilizing e learning platforms or utilizing video conferencing to reduce costs and expand participation.

PREIA will, to the extent practicable, promote use of mobile solutions as a means of achieving Activity goals.

Increased Participation of Women:

PREIA will work with the GoP, the private sector and trade support institutions to bring greater economic benefit to women through increased participation in export trade. The Activity will develop approaches to influence programming and policy at the national level to address gender based constraints to trade and will promote efforts to mainstream gender into trade related policies, processes, and activities.

• Increased Public Private Collaboration:

PREIA will engage the private sector in many aspects of Activity implementation. PREIA’s approach to collaborative engagement will enable USAID to partner with the private sector when achieving joint development objectives. This approach will be applied to all relevant objectives of the Activity.

The total expenditure charged (inclusive of fixed fees) to USAID/Pakistan from September 01, 2015 to June 30, 2024 is $21,561,221.55.

Out of total cost incurred till June 30, 2024, this financial review is required to be focused on the budget line items given in the table below, for which the cumulative estimated expenditure is $14,496,446.055.

PREIA office is based in Islamabad and all the financial records of local transactions will be available in the Islamabad office, however copies of the home office transactions will be provided by PREIA staff as required.

Budget Line Item USD Total Labor Cost 3,557,271.18 Other Direct Cost 10,939,174.875 Total 14,496,446.055

II. TITLE:

Financial Review of USAID/Pakistan resources managed by Developments Alternatives, Inc. (DAI), for Pakistan Regional Economic Integration Activity (PREIA), under Award # AID 391 C 15 00012 for the budget line items, Direct Labor, Other Direct Costs, and Program Activities for the period September 01, 2015 to June 30, 2024.

The mechanism used for this financial review is Purchase Order.

III. OBJECTIVES:

This review will cover all the financial operations, and financial transactions conducted and accounted for by PREIA under the above mentioned budget line items, in connection with the Award # AID 391 C 15 00012. The major objectives of this review are:

1. To ensure that USAID/Pakistan funds are properly expended and accounted for in compliance with the terms of the award; relevant U.S. Federal Government accountability and fund management rules were followed; notices issued by USAID/Pakistan; and Generally Accepted Accounting Principles (GAAP) were followed.

2. To ensure that payments for goods and services made under the award are allowable, allocable, and reasonable in line with the terms of the award and procedures set forth in USAID/Pakistan regulations.

3. To ensure that expenditures aggregated and reported are in accordance with the terms of the award and applicable cost principles. This includes proof and validation of vouchers and records to ensure USAID/Pakistan award is not charged with non qualifying expenditure, future expenditure or advances against goods and services not yet delivered.

4. Determine if the recipient has taken corrective actions on prior audit and/or financial review report recommendations, if applicable.

5. To ensure that local fixed assets acquired under the award are utilized only for bona fide purposes covered under the award and to verify their existence.

6. To ensure that all expenditures are in compliance with the applicable cost principles i.e. FAR Part 31.

IV. STANDARDS:

This review should be conducted such that the reviewer plans and performs the review to obtain sufficient, competent evidential matter to provide a reasonable basis for the conclusions. The reviewer should also maintain independence in mental attitude and exercise due professional care in conducting and reporting the conclusions.

V. STATEMENT OF WORK:

To accomplish the objectives set forth above, the review must include the following procedures:

i) Review of the Award between USAID/Pakistan and DAI/PREIA.

ii) Discussions with the management of PREIA.

iii) Physical observation of the facility, work processes, procedures, and attitudes.

iv) Review of all project and financial reports, organizational structure, accounting systems including chart of accounts and all the relevant policies.

v) Review of consolidation process of financial information and reconciliation of financial statements/records with the reports/ invoices submitted to USAID/Pakistan.

vi) Examination and review of expenditure, payments, any advances, and all related supporting financial and other documentation vis à vis objectives achieved/ outputs delivered.

vii) Obtain confirmations from independent third parties, if necessary.

viii) Check compliance with the Award terms, applicable laws, and regulations and with the PREIA internal control procedures.

ix) Obtain specific representations from the management concerning its knowledge of any actual fraud or suspected fraud affecting the entity, involving management or others, and potentially having a material effect on financial statements/reports.

x) Obtain the certified local and home office cost/ expenditure report.

xi) Review if PREIA is following the guidelines for tax exemptions provided by

USAID/Pakistan and if any taxes have been paid under the project. Review the exchange rate policy to ensure it is in accordance with the generally accepted accounting principles and whether it is being implemented consistently by the contractor.

xii) Review the exchange rate policy and whether it is being implemented by the contractor.

xiii) Weekly update the Contracting Officer’s Representative (AOR/COR) for this award on the progress of financial review.

VII. ENTRANCE AND EXIT CONFERENCES:

Entrance Conference with key members of the management and the project manager(s) with USAID/Pakistan presence to explain the objectives and focus of the review.

Exit Conference to discuss the management concerns, reportable conditions, material weaknesses and their recommendations; and questioned costs with the management of

PREIA in the presence of USAID/Pakistan. Agree on timeline and strategy for implementing recommendations or effecting corrective actions.

VIII. DELIVERABLES:

A. Report The Contractor must provide USAID/Pakistan and PREIA with written correspondence to communicate the scheduling of entrance conference within five days and not later than ten days after receipt of Purchase Order or such other date as may be agreed in the Purchase Order. The Contractor shall also provide written correspondence to communicate the scheduling of exit conference and any follow up meetings as necessary. The Contractor shall provide the USAID/Pakistan COR a copy of all correspondence between the Contractor and PREIA in a timely manner.

Subject to the ceiling price of this Purchase Order, the COR may extend the estimated completion date, provided that the extension does not cause the elapsed time for completion of the work, including the furnishing of all deliverables, to extend beyond 20 working days from the original estimated completion date.

The Contractor must provide an electronic copy and one hard copy of the draft and final detailed reports of the financial review to the COR and PREIA in professional business English, properly indexed, footed and cross footed with supporting documentation. The Contractor shall provide the draft report including management comments to USAID/Pakistan COR and PREIA within thirty (30) calendar days of the entrance meeting. The Contractor shall provide the USAID/Pakistan COR and PREIA a final detailed, written report, within five (5) working days from the date of exit meeting.

The Contractor must provide a report addressing each factor as outlined in the scope of work. Each finding must have condition, criteria, cause, effect recommendation, management comment and evaluation of the management comments (if necessary).

Management comments must include a corrective action to be taken by HSS. Each condition must be presented separately. The report shall be clear, concise, and free from grammatical and typographical errors.

The contractor must provide a checklist of work planned and done to USAID/Pakistan as a separate deliverable along with the final report.

B. Report Format

The report shall contain a title page, table of contents and a summary which includes:

(1) a background section with a general description of PREIA and the relevant program under review; (2) the objectives, scope and methodology of the financial review and a clear explanation of the procedures performed and the scope limitations, if any; and (3) a brief summary of the financial review results.

The report must include a separate section for each of, but not limited to, the following:

1. Statement of Expenditures (SOE) along with notes to the SOE as per USAID/Pakistan standards. SOE should be prepared in US Dollars however local cost shall be presented both in USD and Pak Rupees.

2. A tabular and narrative presentation of all questioned costs in the format indicated below referenced to related findings.

Table of Questioned Costs Item Description

Total QC Ineligible Costs Unsupported Costs

Transaction Description

PKR USD

Eqv.

PKR USD

Eqv.

PKR USD

Eqv.

Total:

3. In case a cost is questioned as unreasonable, the auditors must quantify what would be the reasonable amount.

4. The report must distinguish the control deficiencies that are significant in terms of the design or the operation of internal control, and the significant deficiencies considered to be material weaknesses.

5. The report must set forth as findings all material instances of non compliance, defined as instances that could have a direct and material effect on the recipient’s billings to USAID/Pakistan. Non material instances of noncompliance should be included in a separate Annex to the report. All findings must have condition, criteria, cause, effect recommendation, management comment and evaluation of the management comments. Addressing findings, conclusions, and recommendations of Management comments should include a corrective action to be taken by PREIA.

6. The report must include a complete list of local fixed assets verified to ensure that proper inventory controls are in place.

7. The report must include a statement for each of the areas reviewed for population and sample size in terms of volume and number of transactions.

VII. AVOIDANCE OF CONFLICT OF INTEREST

As per ADS 301.5.2a (2), prior to awarding the assessment contract, the USAID/Pakistan contracting officer shall notify the selected Contractor that in order to avoid any perception that a favorable assessment would enhance the reputation of the Contractor with the host country contracting agency and thus improve its position with respect to obtaining work under the specific activity to be contracted for under host country contracting, THE CONTRACTOR SHALL BE INELIGIBLE TO FURNISH, AS A PRIME OR

SUBCONTRACTOR OR OTHERWISE, UNDER ANY HOST COUNTRY CONTRACTING USING

USAID FUNDS AND AWARDED BY THE PROCUREMENT AGENCY, ANY SERVICES

PERTAINING TO THE SPECIFIC ACTIVITY FOR WHICH THE ASSESSMENT WAS

CONDUCTED, unless the Mission Director shall have granted a waiver, based on the Mission Director's determination that such preclusion of the Contractor would not be in the best interests of achieving the strategic objective. The Regional Legal Advisor and the Contracting Officer shall provide comments prior to the Mission Director making such a determination.

This preclusion shall not apply to future contracts to be awarded through host country contracting procedures under activities which were not yet in the design stage when the Contractor performed the assessment.

Opinion should be adequately supported. USAID/Pakistan reserves the right to review the working papers to ensure that the financial review was done properly.

VIII. INSPECTION AND ACCEPTANCE

Inspection and acceptance of all deliverables is delegated to the COR.

IX. PERIOD OF PERFORMANCE

The estimated period of performance for this Purchase Order is from September 15, 2024 through January 15, 2025.

X. PAYMENT

Full Payment will be made upon acceptance of all of the deliverables by COR.

XI. BUDGET

The budget must be expressed per the budget table below.

S. No Labor Categories Burdened Hourly Labor Rate in PKR 1 Partner 2 Senior Manager 3 Manager 4 Assistant Manager 5 Audit (Senior/Associate) 6 Supervisor 7 Support Staff

XII. PROPOSAL PREPARATION:

Offerors must only submit a Cost Proposal against this solicitation.

Cost Proposal: No more than four (4) pages. The cost proposal must include the Level of Efforts (LOE) required for each labor category.

Offerors must submit a Certificate of Compliance with USAID/Pakistan’s Conflict of Interest Policy Notice.

XIII. EVALUATION

a) USAID will award a Firm Fixed Price Purchase Order to the responsible Offeror whose offer conforms to the solicitation and is most advantageous to the U.S. Government. This acquisition will utilize the Lowest Priced Technically Acceptable (LPTA) procedure. A decision on the technical acceptability of each Offeror’s proposal will be made. For those Offerors whose proposals are determined “Acceptable”, the award will be made to that Offeror with the lowest overall price. If an Offeror receives a technical rating of “Not Acceptable” they will not be considered for the award.

b) If further questions are required, the contracting officer may contact the offeror or offerors.

Unrealistically low proposed level of effort estimates, initially or subsequently, may be grounds for eliminating a quotation from competition either on the basis that the offeror does not understand, or the offeror has submitted unrealistic quotations.

Technically acceptable for this acquisition is defined as a proposal whose labor mix is deemed rational and appropriate in response to the Statement of Work.

If further questions are required, the contracting officer may contact the offeror or offerors.

c) The cost proposal must include a detailed breakdown of pricing. Upon submission of a proposal by the contractor, a Purchase Order will be issued to the lowest priced offeror in writing by the USAID Contracting Officer.

SECTION II – CLAUSES AND TERMS & CONDITIONS

1. Contracting Officer’s Authority The Contracting Officer is the only person authorized to make or approve any changes in the requirements of this order and notwithstanding any provisions contained elsewhere in this order, the said authority remains solely in the Contracting Officer. In the event the Contractor makes any changes at the direction of any person other than the Contracting Officer, the change shall be considered to have been made without authority and no adjustment shall be made in the contract terms and conditions, including price.

2. Technical Directions Technical Directions during the performance of this delivery order shall be provided by the Contracting Officer’s Representative (COR) as indicated in the COR designation letter. The COR or his/her alternate is authorized to accept or reject deliverables under this contract. The COR shall make the final inspection and accept or reject for the Government.

3. Period of Performance The period of performance of this Purchase Order starts from the date of the award until a time set as mutually agreed between USAID and the contractor.

4. Place of Performance Depending on the tasks involved, this work will be performed in one or more locations inside Pakistan, as per the statement of work (SOW) requirement.

5. Office of Inspector General (OIG) Hotline The USAID Office of the Inspector General's (OIG) mission is to protect the integrity of USAID programs and awards. Additionally, the Office of Inspector General provides independent oversight that promotes the efficiency, effectiveness, and integrity of foreign assistance programs and operations under USAID OIG's jurisdiction. The purpose of the OIG Hotline is to receive complaints of fraud, waste, or abuse in our client agencies' programs and operations, including mismanagement or violations of law, rules, or regulations by employees or program participants. Fraud, waste, and abuse are defined as:

(a) Fraud is defined as the wrongful or criminal deception intended to result in financial or personal gain. Fraud includes false representation of fact, making false statements, or by concealment of information.

(b)Waste is defined as the thoughtless or careless expenditure, mismanagement, or abuse of resources to the detriment (or potential detriment) of the U.S. government.

Waste also includes incurring unnecessary costs resulting from inefficient or ineffective practices, systems, or controls.

(c) Abuse is defined as excessive or improper use of a thing, or to use something in a manner contrary to the natural or legal rules for its use. Abuse can occur in financial or non financial settings.

� By completing an online form on our website: https://oig.usaid.gov/report fraud � By email: ig.hotline@usaid.gov � By telephone: 1 800 230 6539 (Toll Free) or 202 712 1023 � By mail: U.S. Agency for International Development Office of Inspector General P.O.

Box 657 Washington, DC 20044 065 OIG Hotline Operations will provide anyone protected under Federal whistleblower statutes the protections required under law.

6. Executive Order on Terrorism Financing The Contractor/Recipient is reminded that U.S. Executive Orders and U.S. law prohibits transactions with, and the provision of resources and support to, individuals and organizations associated with terrorism. It is the legal responsibility of the Contractor/recipient to ensure compliance with these Executive Orders and laws. This Provision must be included in all subcontracts/sub awards issued under this contract/agreement.

7. Authorized Geographic Code The authorized geographic code (see 22 CFR 228.1) for the procurement of commodities and services for any award resulting from this RFQ is 937 (the United States, the cooperating/Recipient country, and developing countries other than advanced developing countries, but excluding any country that is a prohibited source.)

USAID maintains a list of developing countries, advanced developing countries, and prohibited sources, which is available in USAID’s Automated Directives System, ADS 310.

See http://www.usaid.gov/policy/ads/300/310maa.pdf.

NOTICE LISTING CLAUSES INCORPORATED BY REFERENCE

This contract incorporates one or more clauses by reference (by Citation Number, Title, and Date) in accordance with the clause at FAR "52.252 2, with same force and effect as if they were given in full text. Upon request, the Contracting Officer will make their text available. Also, the full text of a clause may be accessed electronically at this address:

http://farsite.hill.af.mil/vffara.htm

CONTRACT CLAUSES

52.203 15Whistleblower Protections under the American Recovery and Reinvestment Act of 2009 (JUN 2010)

52.204 2 Security Requirements. (AUG 1996)

52.204 9 Personal Identity Verification of Contractor Personnel. (JAN 2011)

52.204 10 Reporting Executive Compensation and First Tier Subcontract Awards. (OCT 2016)

52.204 12 Unique Entity Identifier Maintenance.

52.204 13 System for Award Management Maintenance. (OCT 2016)

52.207 5 Option to Purchase Equipment. (FEB 1995)

52.208 9 Contractor Use of Mandatory Sources of Supply or Services. (MAY 2014)

52.209 9 Updates of Publicly Available Information Regarding Responsibility Matters.

(JUL 2013)

52.209 10 Prohibition on Contracting With Inverted Domestic Corporations. (NOV 2015)

52.211 5Material Requirements. (AUG 2000)

52.215 2 Audit and Records Negotiation. (OCT 2010) Alternate I (MAR 2009)

52.222 12 Contract Termination Debarment. (MAY 2014)

52.222 15 Certification of Eligibility. (MAY 2014)

52.222 19 Child Labor Cooperation with Authorities and Remedies. (JAN 2018)

52.222 20 Contracts for Materials, Supplies, Articles, and Equipment Exceeding $15,000.

(MAY 2014)

52.222 26 Equal Opportunity. (SEP 2016)

52.222 26 Equal Opportunity. (SEP 2016) Alternate I (FEB 1999)

52.223 3 Hazardous Material Identification and Material Safety Data. (JAN 1997)

52.223 3 Hazardous Material Identification and Material Safety Data. (Alternate I) (JAN 1997)

52.223 6 Drug Free Workplace. (MAY 2001)

52.223 12Maintenance, Service, Repair, or Disposal of Refrigeration Equipment and Air Conditioners. (JUN 2016)

52.223 18 Encouraging Contractor Policies To Ban Text Messaging While Driving. (AUG 2011)

52.225 1 Buy American Supplies. (MAY 2014)

52.232 1 Payments. (APR 1984)

52.232 18 Availability of Funds. (APR 1984)

52.232 25 Prompt Payment. (JAN 2017)

52.243 1 Changes Fixed Price. (AUG 1987)

52.243 1 Changes Fixed Price. (AUG 1987) Alternate I (APR 1984)

52.243 1 Changes Fixed Price. (AUG 1987) Alternate II (APR 1984)

52.243 1 Changes Fixed Price. (AUG 1987) Alternate IV (APR 1984)

52.243 1 Changes Fixed Price. (AUG 1987) Alternate V (APR 1984)

52.244 6 Subcontracts for Commercial Items. (NOV 2017)

52.245 1 Government Property. (JAN 2017)

52.247 21 Contractor Liability for Personal Injury and/or Property Damage. (APR 1984)

52.247 23 Contractor Liability for Loss of and/or Damage to Household Goods. (JAN 1991)

52.247 25 Government Furnished Equipment with or Without Operators. (APR 1984)

52.249 1 Termination for Convenience of the Government (Fixed Price) (Short Form).

(APR 1984)

52.249 14 Excusable Delays. (APR 1984)

52.222 36 Equal Opportunity for Workers with Disabilities. (JUL 2014)

a. Equal opportunity clause. The Contractor shall abide by the requirements of the equal opportunity clause at 41 CFR 60 741.5(a), as of March 24, 2014. This clause prohibits discrimination against qualified individuals based on disability and requires affirmative action by the Contractor to employ and advance in employment qualified individuals with disabilities.

b. Subcontracts. The Contractor shall include the terms of this clause in every subcontract or purchase order in excess of $15,000 unless exempted by rules, regulations, or orders of the Secretary, so that such provisions will be binding upon each subcontractor or vendor. The Contractor shall act as specified by the Director, Office of Federal Contract Compliance Programs of the U.S. Department of Labor, to enforce the terms, including action for noncompliance. Such necessary changes in language may be made as shall be appropriate to identify properly the parties and their undertakings. (End of clause)

52.222 50 Combating Trafficking in Persons. (MAR 2015)

a. Definitions. As used in this clause Agent means any individual, including a director, an officer, an employee, or an independent contractor, authorized to act on behalf of the organization.

Coercionmeans

1. Threats of serious harm to or physical restraint against any person;

2. Any scheme, plan, or pattern intended to cause a person to believe that failure to perform an act would result in serious harm to or physical restraint against any person;

or

3. The abuse or threatened abuse of the legal process. Commercial sex act means any sex act on account of which anything of value is given to or received by any person.

Commercially available off the shelf (COTS) item means

1. Any item of supply (including construction material) that is

2. A commercial item (as defined in paragraph (1) of the definition at FAR 2.101);

3. Sold in substantial quantities in the commercial marketplace; and offered to the Government, under a contract or subcontract at any tier, without modification, in the same form in which it is sold in the commercial marketplace; and

4. Does not include bulk cargo, as defined in 46 U.S.C. 40102(4), such as agricultural products and petroleum products. Debt bondage means the status or condition of a debtor arising from a pledge by the debtor of his or her personal services or of those of a person under his or her control as a security for debt, if the value of those services as reasonably assessed is not applied toward the liquidation of the debt or the length and nature of those services are not respectively limited and defined.

Employeemeans an employee of the Contractor directly engaged in the performance of work under the contract who has other than a minimal impact or involvement in contract performance.

Forced Labormeans knowingly providing or obtaining the labor or services of a person

1. By threats of serious harm to, or physical restraint against, that person or another person;

2. By means of any scheme, plan, or pattern intended to cause the person to believe that, if the person did not perform such labor or services, that person or another person would suffer serious harm or physical restraint; or

3. By means of the abuse or threatened abuse of law or the legal process. Involuntary servitude includes a condition of servitude induced by means of

4. Any scheme, plan, or pattern intended to cause a person to believe that, if the person did not enter into or continue in such conditions, that person or another person would suffer serious harm or physical restraint; or

5. The abuse or threatened abuse of the legal process.

Severe forms of trafficking in personsmeans

a. Explanation

1. Sex trafficking in which a commercial sex act is induced by force, fraud, or coercion, or in which the person induced to perform such act has not attained 18 years of age; or

2. The recruitment, harboring, transportation, provision, or obtaining of a person for labor or services, through the use of force, fraud, or coercion for the purpose of subjection to involuntary servitude, peonage, debt bondage, or slavery. Sex trafficking means the recruitment, harboring, transportation, provision, or obtaining of a person for the purpose of a commercial sex act. Subcontract means any contract entered into by a subcontractor to furnish supplies or services for performance of a prime contract or a subcontract. Subcontractor means any supplier, distributor, vendor, or firm that furnishes supplies or services to or for a prime contractor or another subcontractor. United States means the 50 States, the District of Columbia, and outlying areas.

b. Policy The United States Government has adopted a policy prohibiting trafficking in persons including the trafficking related activities of this clause.

Contractors, contractor employees, and their agents shall not

1. Engage in severe forms of trafficking in persons during the period of performance of the contract;

2. Procure commercial sex acts during the period of performance of the contract;

3. Use forced labor in the performance of the contract;

4. Destroy, conceal, confiscate, or otherwise deny access by an employee to the employee's identity or immigration documents, such as passports or drivers' licenses, regardless of issuing authority;

(5)(i) Use misleading or fraudulent practices during the recruitment of employees or offering of employment, such as failing to disclose, in a format and language accessible to the worker, basic information or making material misrepresentations during the recruitment of employees regarding the key terms and conditions of employment, including wages and fringe benefits, the location of work, the living conditions, housing and associated costs (if employer or agent provided or arranged), any significant cost to be charged to the employee, and, if applicable, the hazardous nature of the work;

(ii) Use recruiters that do not comply with local labor laws of the country in which the recruiting takes place;

6. Charge employees’ recruitment fees;

(7)(i) Fail to provide return transportation or pay for the cost of return transportation upon the end of employment

1. For an employee who is not a national of the country in which the work is taking place and who was brought into that country for the purpose of working on a U.S. Government contract or subcontract (for portions of contracts performed outside the United States);

or for an employee who is not a United States national and who was brought into the United States for the purpose of working on a U.S. Government contract or subcontract, if the payment of such costs is required under existing temporary worker programs or pursuant to a written agreement with the employee (for portions of contracts performed inside the United States); except that the requirements of paragraphs (b)(7)(i) of this clause shall not apply to an employee who is

1. Legally permitted to remain in the country of employment and who chooses to do so;

or

2. Exempted by an authorized official of the contracting agency from the requirement to provide return transportation or pay for the cost of return transportation.

iii. The requirements of paragraph (b)(7)(i) of this clause are modified for a victim of trafficking in persons who is seeking victim services or legal redress in the country of employment, or for a witness in an enforcement action related to trafficking in persons.

The contractor shall provide the return transportation or pay the cost of return transportation in a way that does not obstruct the victim services, legal redress, or witness activity. For example, the contractor shall not only offer return transportation to a witness at a time when the witness is still needed to testify. This paragraph does not apply when the exemptions at paragraph (b)(7)(ii) of this clause apply.

8. Provide or arrange housing that fails to meet the host country housing and safety standards; or

9. If required by law or contract, fail to provide an employment contract, recruitment agreement, or other required work document in writing. Such written work document shall be in a language the employee understands. If the employee must relocate to perform the work, the work document shall be provided to the employee at least five days prior to the employee relocating. The employee's work document shall include, but is not limited to, details about work description, wages, prohibition on charging recruitment fees, work location(s), living accommodations and associated costs, time off, roundtrip transportation arrangements, grievance process, and the content of applicable laws and regulations that prohibit trafficking in persons.

c. Contractor requirements.

The Contractor shall

1. Notify its employees and agents officials. The United States Government's policy prohibiting trafficking in persons, described in paragraph (b) of this clause; and ii. The actions that will be taken against employees or agents for violations of this policy. Such actions for employees may include, but are not limited to, removal from the contract, reduction in benefits, or termination of employment; and

2. Take appropriate action, up to and including termination, against employees, agents, or subcontractors that violate the policy in paragraph (b) of this clause.

d. Notification.

(1) The Contractor shall inform the Contracting Officer and the agency Inspector General immediately officials.

Any credible information it receives from any source (including host country law enforcement) that alleges a Contractor employee, subcontractor, subcontractor employee, or their agent has engaged in conduct that violates the policy in paragraph (b) of this clause (see also 18 U.S.C. 1351, Fraud in Foreign Labor Contracting, and 52.203 13(b)(3)(i)(A), if that clause is included in the solicitation or contract, which requires disclosure to the agency Office of the Inspector General when the Contractor has credible evidence of fraud); and ii.Any actions taken against a Contractor employee, subcontractor, subcontractor employee, or their agent pursuant to this clause.

(2) If the allegation may be associated with more than one contract, the Contractor shall inform the contracting officer for the contract with the highest dollar value.

e. Remedies. In addition to other remedies available to the Government, the Contractor's failure to comply with the requirements of paragraphs (c), (d), (g), (h), or (i) of this clause may result in

1. Requiring the Contractor to remove a Contractor employee or employees from the performance of the contract;

2. Requiring the Contractor to terminate a subcontract;

3. Suspension of contract payments until the Contractor has taken appropriate remedial action;

4. Loss of award fee, consistent with the award fee plan, for the performance period in which the Government determined Contractor non compliance;

5. Declining to exercise available options under the contract;

6. Termination of the contract for default or cause, in accordance with the termination clause of this contract; or

7. Suspension or debarment.

f. Mitigating and aggravating factors.

When determining remedies, the Contracting Officer may consider the following:

1. Mitigating factors. The Contractor had a Trafficking in Persons compliance plan or an awareness program at the time of the violation, was in compliance with the plan, and has taken appropriate remedial actions for the violation, that may include reparation to victims for such violations.

2. Aggravating factors. The Contractor failed to abate an alleged violation or enforce the requirements of a compliance plan, when directed by the Contracting Officer to do so.

g. Full cooperation.

(1) The Contractor shall, at a minimum disclose to the agency Inspector General information sufficient to identify the nature and extent of an offense and the individuals responsible for the conduct;

i. Provide timely and complete responses to Government auditors' and investigators' requests for documents;

j. Cooperate fully in providing reasonable access to its facilities and staff (both inside and outside the U.S.) to allow contracting agencies and other responsible Federal agencies to conduct audits, investigations, or other actions to ascertain compliance with the Trafficking Victims Protection Act of 2000 (22 U.S.C. chapter 78), E.O. 13627, or any other applicable law or regulation establishing restrictions on trafficking in persons, the procurement of commercial sex acts, or the use of forced labor; and

iv. Protect all employees suspected of being victims of or witnesses to prohibited activities, prior to returning to the country from which the employee was recruited and shall not prevent or hinder the ability of these employees from cooperating fully with Government authorities.

2. The requirement for full cooperation does not foreclose any Contractor rights arising in law, the FAR, or the terms of the contract. It does not i Require the Contractor to waive its attorney client privilege or the protections afforded by the attorney work product doctrine;

ii.Require any officer, director, owner, employee, or agent of the Contractor, including a sole proprietor, to waive his or her attorney client privilege or Fifth Amendment rights; or iii.Restrict the Contractor from A. Conducting an internal investigation; or B. Defending a proceeding or dispute arising under the contract or related to a potential or disclosed violation.

h. Compliance plan.

(1) This paragraph (h) applies to any portion of the contract that i.Is for supplies, other than commercially available off the shelf items, acquired outside the United States, or services to be performed outside the United States; and ii.Has an estimated value that exceeds $500,000.

2. The Contractor shall maintain a compliance plan during the performance of the contract that is appropriate

i. To the size and complexity of the contract; and ii.To the nature and scope of the activities to be performed for the Government, including the number of non United States citizens expected to be employed and the risk that the contract or subcontract will involve services or supplies susceptible to trafficking in persons.

3. Minimum requirements. The compliance plan must include, at a minimum, the following:

.An awareness program to inform contractor employees about the Government's policy prohibiting trafficking related activities described in paragraph (b) of this clause, the activities prohibited, and the actions that will be taken against the employee for violations. Additional information about Trafficking in Persons and examples of awareness programs can be found at the Web site for the Department of State's Office to Monitor and Combat Trafficking in Persons at http://www.state.gov/j/tip/.

i.A process for employees to report, without fear of retaliation, activity inconsistent with the policy prohibiting trafficking in persons, including a means to make available to all employees the hotline phone number of the Global Human Trafficking Hotline at 1 844 888 FREE and its email address at help@befree.org.

iii. A recruitment and wage plan that only permits the use of recruitment companies with trained employees, prohibits charging recruitment fees to the employee, and ensures that wages meet applicable host country legal requirements or explains any variance.

iv. A housing plan, if the Contractor or subcontractor intends to provide or arrange housing, that ensures that the housing meets host country housing and safety standards.

v. Procedures to prevent agents and subcontractors at any tier and at any dollar value from engaging in trafficking in persons (including activities in paragraph (b) of this clause) and to monitor, detect, and terminate any agents, subcontracts, or subcontractor employees that have engaged in such activities.

4. Posting.

(i) The Contractor shall post the relevant contents of the compliance plan, no later than the initiation of contract performance, at the workplace (unless the work is to be performed in the field or not in a fixed location) and on the Contractor's Web site (if one is maintained). If posting at the workplace or on the Web site is impracticable, the Contractor shall provide the relevant contents of the compliance plan to each worker in writing.

(ii) The Contractor shall provide the compliance plan to the Contracting Officer upon request.

5. Certification. Annually after receiving an award, the Contractor shall submit a certification to the Contracting Officer that

i. It has implemented a compliance plan to prevent any prohibited activities identified at paragraph (b) of this clause and to monitor, detect, and terminate any agent, subcontract or subcontractor employee engaging in prohibited activities; and

ii. After having conducted due diligence, either

1. To the best of the Contractor's knowledge and belief, neither it nor any of its agents, subcontractors, or their agents is engaged in any such activities; or

2. If abuses relating to any of the prohibited activities identified in paragraph (b) of this clause have been found, the Contractor or subcontractor has taken the appropriate remedial and referral actions.

i. Subcontracts.

(1) The Contractor shall include the substance of this clause, including this paragraph (i), in all subcontracts and in all contracts with agents. The requirements in paragraph (h)of this clause apply only to any portion of the subcontract that

1. Is for supplies, other than commercially available off the shelf items, acquired outside the United States, or services to be performed outside the United States; and

2. Has an estimated value that exceeds $500,000.

(2) If any subcontractor is required by this clause to submit a certification, the Contractor shall require submission prior to the award of the subcontract and annually thereafter.

The certification shall cover the items in paragraph (h)(5) of this clause.

(End of Clause)

52.222 50 Combating Trafficking in Persons. (MAR 2015) Alternate I (MAR 2015)

a. Definitions. As used in this clause Agent means any individual, including a director, an officer, an employee, or an independent contractor, authorized to act on behalf of the organization.

Coercion means

1. Threats of serious harm to or physical restraint against any person;

2. Any scheme, plan, or pattern intended to cause a person to believe that failure to perform an act would result in serious harm to or physical restraint against any person;

or

3. The abuse or threatened abuse of the legal process. Commercial sex act means any sex act on account of which anything of value is given to or received by any person.

Commercially available off the shelf (COTS) item means

1. Any item of supply (including construction material) that is

i. A commercial item (as defined in paragraph (1) of the definition at FAR 2.101);

ii.Sold in substantial quantities in the commercial marketplace; and iii.Offered to the Government, under a contract or subcontract at any tier, without modification, in the same form in which it is sold in the commercial marketplace; and

2. Does not include bulk cargo, as defined in 46 U.S.C. 40102(4), such as agricultural products and petroleum products. Debt bondage means the status or condition of a debtor arising from a pledge by the debtor of his or her personal services or of those of a person under his or her control as a security for debt, if the value of those services as reasonably assessed is not applied toward the liquidation of the debt or the length and nature of those services are not respectively limited and defined. Employee means an employee of the Contractor directly engaged in the performance of work under the contract who has other than a minimal impact or involvement in contract performance.

Forced Labor means knowingly providing or obtaining the labor or services of a person

1. By threats of serious harm to, or physical restraint against, that person or another person;

2. By means of any scheme, plan, or pattern intended to cause the person to believe that, if the person did not perform such labor or services, that person or another person would suffer serious harm or physical restraint; or

3. By means of the abuse or threatened abuse of law or the legal process.

Involuntary servitude includes a condition of servitude induced by means of

1. Any scheme, plan, or pattern intended to cause a person to believe that, if the person did not enter into or continue in such conditions, that person or another person would suffer serious harm or physical restraint; or

2. The abuse or threatened abuse of the legal process.

Severe forms of trafficking in persons means

1. Sex trafficking in which a commercial sex act is induced by force, fraud, or coercion, or in which the person induced to perform such act has not attained 18 years of age; or

2. The recruitment, harboring, transportation, provision, or obtaining of a person for labor or services, through the use of force, fraud, or coercion for the purpose of subjection to involuntary servitude, peonage, debt bondage, or slavery. Sex trafficking means the recruitment, harboring, transportation, provision, or obtaining of a person for the purpose of a commercial sex act.

Subcontract means any contract entered into by a subcontractor to furnish supplies or services for performance of a prime contract or a subcontract. Subcontractor means any supplier, distributor, vendor, or firm that furnishes supplies or services to or for a prime contractor or another subcontractor.

United States means the 50 States, the District of Columbia, and outlying areas.

b. Policy.

The United States Government has adopted a policy prohibiting trafficking in persons including the trafficking related activities of this clause. Contractors, contractor employees, and their agents shall not

1. Engage in severe forms of trafficking in persons during the period of performance of the contract;

2. Procure commercial sex acts during the period of performance of the contract;

3. Use forced labor in the performance of the contract;

4. Destroy, conceal, confiscate, or otherwise deny access by an employee to the employee's identity or immigration documents, such as passports or drivers' licenses, regardless of issuing authority;

(5)(i) Use misleading or fraudulent practices during the recruitment of employees or offering of employment, such as failing to disclose, in a format and language accessible to the worker, basic information or making material misrepresentations during the recruitment of employees regarding the key terms and conditions of employment, including wages and fringe benefits, the location of work, the living conditions, housing and associated costs (if employer or agent provided or arranged), any significant cost to be charged to the employee, and, if applicable, the hazardous nature of the work;

(ii) Use recruiters that do not comply with local labor laws of the country in which the recruiting takes place;

6. Charge employees recruitment fees;

(7)(i) Fail to provide return transportation or pay for the cost of return transportation upon the end of employment

1. For an employee who is not a national of the country in which the work is taking place and who was brought into that country for the purpose of working on a U.S. Government contract or subcontract (for portions of contracts performed outside the United States);

or

2. For an employee who is not a United States national and who was brought into the United States for the purpose of working on a U.S. Government contract or subcontract, if the payment of such costs is required under existing temporary worker programs or pursuant to a written agreement with the employee (for portions of contracts performed inside the United States); except that

ii. The requirements of paragraphs (b)(7)(i) of this clause shall not apply to an employee who is

1. Legally permitted to remain in the country of employment and who chooses to do so;

or

2. Exempted by an authorized official of the contracting agency from the requirement to provide return transportation or pay for the cost of return transportation.

iii.The requirements of paragraph (b)(7)(i) of this clause are modified for a victim of trafficking in persons who is seeking victim services or legal redress in the country of employment, or for a witness in an enforcement action related to trafficking in persons.

The contractor shall provide the return transportation or pay the cost of return transportation in a way that does not obstruct the victim services, legal redress, or witness activity. For example, the contractor shall not only offer return transportation to a witness at a time when the witness is still needed to testify. This paragraph does not apply when the exemptions at paragraph (b)(7)(ii) of this clause apply.

8. Provide or arrange housing that fails to meet the host country housing and safety standards; or

9. If required by law or contract, fail to provide an employment contract, recruitment agreement, or other required work document in writing. Such written work document shall be in a language the employee understands. If the employee must relocate to perform the work, the work document shall be provided to the employee at least five days prior to the employee relocating. The employee's work document shall include, but is not limited to, details about work description, wages, prohibition on charging recruitment fees, work location(s), living accommodations and associated costs, time off, roundtrip transportation arrangements, grievance process, and the content of applicable laws and regulations that prohibit trafficking in persons.

c. Contractor requirements.

The Contractor shall

1. Notify its employees and agents of (i)(A) The United States Government's policy prohibiting trafficking in persons described in paragraph (b) of this clause; and

(ii) The actions that will be taken against employees or agents for violations of this policy.

Such actions for employees may include, but are not limited to, removal from the contract, reduction in benefits, or termination of employment; and

2. Take appropriate action, up to and including termination, against employees, agents, or subcontractors that violate the policy in paragraph (b) of this clause.

d. Notification.

10. The Contractor shall inform the Contracting Officer and the agency Inspector General immediately of

i. Any credible information it receives from any source (including host country law enforcement) that alleges a Contractor employee, subcontractor, subcontractor employee, or their agent has engaged in conduct that violates the policy in paragraph (b) of this clause (see also 18 U.S.