72049219R00017 Final.pdf

72049219R00017

SOLICITATION, OFFER AND AWARD

4. TYPE OF SOLICITATION2. CONTRACT NUMBER 3. SOLICITATION NUMBER

7. ISSUED BY CODE 8. ADDRESS OFFER TO (If other than Item 7)

ORDER UNDER DPAS (15 CFR 700)

6. REQUISITION/PURCHASE NUMBER

NOTE: In sealed bid solicitations "offer" and "offeror" mean "bid" and "bidder".

NEGOTIATED (RFP)

SEALED BID (IFB)

5. DATE ISSUED

1. THIS CONTRACT IS A RATED RATING PAGE OF PAGES

C. E-MAIL ADDRESS

EXT.NUMBERAREA CODE

B. TELEPHONE (NO COLLECT CALLS)A. NAME

10. FOR

INFORMATION

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CAUTION: LATE Submissions, Modifications, and Withdrawals: See Section L, Provision No. 52.214-7 or 52.215-1. All offers are subject to all terms and conditions contained in this solicitation.

(Date)(Hour) local timeuntildepository located in copies for furnishing the supplies or services in the Schedule will be received at the place specified in Item 8, or if hand carried, in the

SOLICITATION

9. Sealed offers in original and

PART IV - REPRESENTATIONS AND INSTRUCTIONS

OTHER STATEMENTS OF OFFERORS

EVALUATION FACTORS FOR AWARD

INSTRS., CONDS., AND NOTICES TO OFFERORS

REPRESENTATIONS, CERTIFICATIONS AND

LIST OF ATTACHMENTS

CONTRACT CLAUSES

PART III - LIST OF DOCUMENTS, EXHIBITS AND OTHER ATTACH.

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M SPECIAL CONTRACT REQUIREMENTS

CONTRACT ADMINISTRATION DATA

DELIVERIES OR PERFORMANCE

INSPECTION AND ACCEPTANCE

PACKAGING AND MARKING

DESCRIPTION/SPECS./WORK STATEMENT

SUPPLIES OR SERVICES AND PRICES/COSTS

SOLICITATION/CONTRACT FORM

PART II - CONTRACT CLAUSESPART I - THE SCHEDULE

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15C. CHECK IF REMITTANCE ADDRESS

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OFFEROR

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16. NAME AND TITLE OF PERSON AUTHORIZED TO SIGN OFFER15A. NAME

DATEAMENDMENT NO.DATEAMENDMENT NO.

and related documents numbered and dated):

amendments to the SOLICITATION for offerors

(The offeror acknowledges receipt of

14. ACKNOWLEDGEMENT OF AMENDMENTS

CALENDAR DAYS (%)30 CALENDAR DAYS (%)20 CALENDAR DAYS (%)10 CALENDAR DAYS (%)

(See Section I, Clause No. 52.232.8)

13. DISCOUNT FOR PROMPT PAYMENT

designated point(s), within the time specified in the schedule.

by the offeror) from the date for receipt of offers specified above, to furnish any or all items upon which prices are offered at the price set opposite each item, delivered at the

NOTE: Item 12 does not apply if the solicitation includes the provisions at 52.214-16, Minimum Bid Acceptance Period.

OFFER (Must be fully completed by offeror)

IMPORTANT - Award will be made on this Form, or on Standard Form 26, or by other authorized official written notice.

28. AWARD DATE

(Signature of Contracting Officer)

27. UNITED STATES OF AMERICA

25. PAYMENT WILL BE MADE BY

26. NAME OF CONTRACTING OFFICER (Type or print)

CODE 24. ADMINISTERED BY (If other than Item 7)

ITEM

(4 copies unless otherwise specified)

23. SUBMIT INVOICES TO ADDRESS SHOWN IN

41 U.S.C. 253 (c) ( 10 U.S.C. 2304 (c) (

22. AUTHORITY FOR USING OTHER THAN FULL AND OPEN COMPETITION:

21. ACCOUNTING AND APPROPRIATION20. AMOUNT19. ACCEPTED AS TO ITEMS NUMBERED

AWARD (To be completed by government)

CODE

REQ-492-19-000101

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720492

USAID/Philippines 00000

Ester Pura epura@usaid.gov

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STANDARD FORM 33 (Rev. 9-97)

Prescribed by GSA - FAR (48 CFR) 53.214(c)

12. In compliance with the above, the undersigned agrees, if this offer is accepted within _____0_________ calendar days (60 calendar days unless a different period is inserted

Solicitation No. 72049219R00006 USAID/Philippines’ PEP

SECTION B– SUPPLIES OR SERVICES AND PRICE/COSTS

B.1 PURPOSE

The scope of the USAID-PNG Electrification Partnership (PEP) Activity is to contribute significantly to achieving the goal of connecting 70% of Papua New Guinea’s population to electricity by 2030. To accomplish this goal, the Contractor must facilitate reaching a target of at least 200,000 new household electricity connections and institutionalize key strategies that will enable PNG to achieve such by the end of the Activity. Contributions to this target and key strategies will come from interventions outlined in the four objectives of this Activity.

B.2 CONTRACT TYPE

This is a Cost-Plus-Fixed-Fee (CPFF), completion type, contract as defined in Federal Acquisition Regulation (FAR) Part 16.

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

(a) The estimated cost for the performance of the work required hereunder, exclusive of fixed fee, if any, is [$TBD]. The fixed fee, if any, is [$TBD]. The total estimated cost plus fixed fee, if any, is [$TBD]. The Contractor shall not be paid any sum in excess of this amount.

(b) Within the estimated cost plus fixed fee amounts specified in paragraphs (a) above, the amount currently obligated and available for reimbursement of allowable costs incurred by the Contractor (and payment of fee, if any) for performance hereunder is [$TBD]. The Contractor shall not exceed the obligated amount unless authorized by the Contracting Officer pursuant to the clause of this contract entitled “Limitation of Funds” (FAR 52.232‐ 22).

(c) Funding for this contract will be on an incremental basis, subject to the availability of funds.

Funds obligated are anticipated to be sufficient through [$TBD].

B.4 PRICE SCHEDULE

Contract Line Item Number (CLIN) Amount (US $)

0001 Strengthening PNG Power Limited (PPL)

0002 Off-Grid Electrification

0003 Energy Regulation

0004 Catalyzing Private Investments

Total Estimated Cost

Fixed Fee (FF): Pls see Section F for FF schedule

Total Estimated Cost Plus Fixed Fee (CPFF)

USAID/Philippines’ PEP

B.5 FIXED FEE (CPFF)

Pursuant to FAR 16.306(d)(1), payment of the fixed fee shall be based on the achievement of the targets and deliverables in the PWS and in accordance with the fixed fee payment schedule in Section F.8 of the contract.

B.6 CANCELLATION PROCEDURES

This contract is subject to the requirements of FAR 17.106.

(a) Performance under this contract during the second and subsequent program years is contingent upon the appropriation of funds. All program years except the first are subject to cancellation.

Cancellation shall occur by the dates specified below if the Contracting Officer:

1. Notifies the Contractor that funds are not available for contract performance for any subsequent program year, or

2. Fails to notify the Contractor that funds are available for performance of the succeeding program year.

(b) Cancellation Ceiling:

This is a CPFF type contract where the Contractor is authorized to be reimbursed for costs which are allowable in accordance with FAR 52.216-7, “Allowable Costs and Payment.” Therefore, the Contractor will not incur any costs which would have been amortized over the life of the contract must the contract be cancelled in accordance with FAR 52.217-2.

The Government’s liability for cancellation charges shall not exceed [$TBD]. This amount will be reduced in accordance with FAR 17.106-1 (1) (c) at the conclusion of each program year, as follows:

Program Year Cancellation Date Cancellation Ceiling

Base year 2

Base year 3

Base year 4

Base year 5

[END OF SECTION B]

USAID/Philippines’ PEP

SECTION C – DESCRIPTION/PERFORMANCE WORK STATEMENT

I. BACKGROUND

In November 2018, at the Asia-Pacific Economic Cooperation (APEC) Summit, Papua New Guinea invited Australia, Japan, New Zealand and the United States to work together to support its goal of connecting 70% of its population to electricity by 2030. The Papua New Guinea Electrification Partnership (PEP) recognizes that access to electricity is fundamental to economic growth and is foundational for the development of the private sector and industries. Papua New Guinea has one of the lowest electricity access rates in the region with only 13% of households having access to reliable electricity. To achieve the 70% household electrification target by 2030, PNG will rely on increased collaboration between its government institutions, the private sector and development partners.

To inform planned activities and coordination of the PEP, a multi-agency mission from Australia, Japan, New Zealand and the U.S. participated in the Trilateral Partnership for Infrastructure Investment Meeting which was held from April 9-10 in Port Moresby, Papua New Guinea. From this technical scoping trip, targeted areas for partnership have been identified considering the multitude of projects that are either planned or ongoing by other development organizations.

The proposed set of interventions supports the Indo-Pacific Strategy, particularly the Asia Enhancing Development and Growth through Energy (EDGE) Initiative which supports market-based energy policy and reforms, modernization of energy infrastructure and expanded access to affordable, secure and reliable energy supplies.

Power Situation

The current generation capacity of the country’s two main grids, Port Moresby (POM) and Ramu is very low at around 320 MW, 50 MW of which are supplied by independent power producers (IPPs). About 63% of the generation capacity is sourced from hydro, gas and geothermal while 37% from diesel power thermal sources. PNG has established transmission and distribution networks in the urban centers of Port Moresby, Ramu Valley (Lae, Madang and Highlands area) and Gazelle Peninsula as well as 19 isolated independent power grids servicing provincial centers. Of these three major grids, Ramu power system is connected to 9 provinces. Moreover, it is estimated that 280 megawatts of power is being generated by mining companies for their own consumption.1 The National Energy Rollout Plan (NEROP) estimates that electricity demand will grow by 300 MW by 2030 through expanded connections and future demand from the mining and commercial/industrial and other sectors. The current national electricity tariff is very high at nearly 30 cents per kilowatt hour. One of the reasons for the high tariff is the reliance on expensive imported thermal resources which accounts for 37% of total generation. PNG is endowed with generous indigenous energy resources such as hydro, natural gas, oil, geothermal and other renewable energy sources such as wind and solar. By reducing costs through cheaper domestic energy resources, PNG can reduce their very high generation costs. The World Bank’s recently completed study, Delivering Affordable, Sustainable and Reliable Power to PNG, identifies hydro and gas as the least cost generation options moving forward. The study also identifies new opportunities for solar and wind integration for the POM grid as well as in off-grid locations.

PNG has a fragile power system given its topography and aging power infrastructure. In a study conducted by the World Bank, PNG ranked fifth in terms of the countries with the greatest number of

1 ADB 2018 Pacific Energy Update https://www.usaid.gov/energy/asia-edge https://www.usaid.gov/energy/asia-edge power outages averaging 42 each month.2 System losses, both technical and non-technical, were consistently high from 2015 to 2017, averaging almost 25%,3 about 20% of which were due to unmetered consumption. In a survey of energy consumers in the industrial city of Lae, 80% of the customers were very dissatisfied with the supply of electricity to their home/establishments. Major complaints included affordability of the electricity tariffs, efficiency of power delivery, resolution of complaints, sustainability of power options being considered by the country, adequacy of regulations and enforcement and current available energy options.4

With support from the World Bank, the Government of PNG (GPNG) developed the NEROP, which is the blueprint for implementing the electrification program with the target of reaching 70% by 2030. Given the geography and settlement patterns of PNG’s population, it is estimated that grid electrification is the least-cost option for providing access to approximately 75% of the nation’s future population; while off-grid systems are recommended for the other 25%.5 The table below summarizes current level of grid access and options for grid and off-grid electrification through 2030. These estimates may be further refined through future more detailed planning and updates to the NEROP.

Table 16 . Summary of grid level access and options for electrification

State of PPL

Founded in 1963, PNG Power Limited (PPL), formerly known as the Papua New Guinea Electricity Commission (ELCOM), is a fully integrated authority responsible for the generation, transmission, distribution and retailing of electricity servicing almost 112,000 customers throughout the country. Under the Electricity Industry Act of 2002, PPL took over all of ELCOM’s assets, liabilities, rights, titles and personnel. PPL is a State Owned Entity previously under the oversight of the Ministry of State Owned Enterprises (MSOE) amd oversight is currently transitioning to the Ministry of Information

2 https://post courier.com.pg/png-fifth-power-outages/, June 29, 2018 3 Delivering Affordable, Sustainable and Reliable Power to Papua New Guineans, World Bank, July 2018, p. 52 4 An Appraisal of PNG National Energy Policy 2018-2028, Papua New Guinea University of Technology, pp 7-8 5 Delivering Affordable, Sustainable and Reliable Power to Papua New Guineans, World Bank, July 2018, p. 49 6 PNG Electrification, World Bank, May 2017, p. 5

Communication and Technology (ICT) and Energy. Kumul Consolidated Holdings Limited (KHCL) is mandated to hold the shares for corporatized state entities like PPL. A Board was created by the Ministry of State Owned Enterprises (MSOE) through which, PPL provides annual financial and operational reports and a five-year business plan to KHCL.

PPL has numerous challenges with the foremost being aging infrastructure, high non-technical losses (non-payment for electricity), oversized workforce, and political interference. An assessment of PPL’s financial and operational performance from 2015 to 2017 revealed that the entity has been in financial distress affecting its capacity to fund planned investments, therefore constraining PPL to provide reliable services to its customers. Electricity is very costly in PNG with PPL’s average tariffs for 2017 registered at $0.279/kWh7. Despite its comparatively high weighted tariffs, PPL has limited funds to cover its debt service and capital expenditure requirements. Further, the operating costs and expenses of $250 million are considered oversized for a company with 112,000 customers and $270 million of revenues.8 Major operational costs include staff and overhead costs and fuel which represent 34% and 26%, respectively, of its total revenues. Since 2013, tariff rates have not been adjusted to allow PPL to reflect the true cost of service and allow for a reasonable rate of return.

Electricity Regulation

The Independent Consumer and Competition Commission (ICCC) has broad responsibilities across the economy regulating transport, insurance, fuel and energy sectors. Consistent with the Independent Consumer and Competition Act of 2000, the Electricity Industry Act of 2002 mandating the body to exercise economic regulation by overseeing the conduct of the generation, transmission, distribution and sale of electricity. The Commission consists of three Commissioners which are appointed by the Prime Minister and serve on such terms and conditions as determined by the Parliament.

Specifically, the Commission is tasked to plan and to coordinate the supply of electricity throughout the country, set electricity tariffs, develop and implement regulatory standards for electricity service including reliability indices, lay the groundwork to allow third party access arrangements in the electricity industry and promote consumer protection.

Regulation of the electricity industry was further defined under the 2009 Electricity Industry Policy of Papua New Guinea which states that while the ICCC is the overall regulator, the technical regulation has been delegated to PPL. As a technical regulator, PPL is responsible for ensuring compliance to standards in generation and network assets and enforcement of codes and guidelines for electrical installations.9 PPL considers exercising technical regulation as an additional burden both administratively and financially. It is envisioned that the technical regulation of the electricity industry will eventually be transferred to the Department of Communication, Information Technology and Energy (DCIT/E). The National Energy Policy also proposes creating a new entity, the National Energy Authority, which would spin off from ICCC. This new entity requires bill passage from Parliament.

Another aspect of the regulatory environment is the Organic Law on Provincial Government and Local Level Government of 1995 which granted authority to 19 provincial and 299 local governments to regulate their respective electricity services10.

7 Delivering Affordable, Sustainable and Reliable Power to Papua New Guineans, World Bank, July 2018, p. 49 8 Ibid.

9 Electricity Industry Policy, August 2009, p. 13 10 PNG’s Energy Sector and Estimation of Renewable Energy Resources in Morobe Province, Papua New Guinea: Solar and Wind Power for New Umi Township. p. 41

Off-grid Electrification

The World Bank estimates that at least 25% of PNG’s population will never be connected to the formal grid. PPL does not serve these populations as their mandate only extends 10 kilometers from the existing grid. More remote areas receive electricity through a third-party service provider. Serving this population is much more cost effective through off-grid approaches and currently there is minimal investment and no national agency responsible for off-grid electrification. There is substantial private sector interest in developing off-grid solutions but this segment of the population requires creative service models.

Competition for loads that are less than 10 MW are encouraged regardless of the service provider’s coverage areas. Under the State’s Community Service Obligation (CSO) policy, service providers for off-grid areas may be funded by the State through a competitive tender. However, the implementation framework for the CSO policy is yet to be defined. Currently, PPL is also providing electricity to off-grid areas through the National Budget allocation and reduced dividends to the State. This arrangement, however, has not been sufficient to expand rural electrification.11

Domestic Gas Utilization

PNG’s proven and probable natural gas reserves are estimated at 8 trillion cubic feet (tcf) while an estimated additional 30 tcf of underdeveloped recoverable resources remain untapped.12

The recently completed World Bank study on least cost generation options identifies a strong business case for gas to power generation as a flexible energy source which can be produced at a minimal cost.

One option for a new gas power plant is in the PNG highlands on Exxon’s existing gas production facility. The ExxonMobil LNG project which was completed in 2014 was the first of its kind and became the top-revenue export product in the same year. In 2017, the gas production and processing facilities produced 8.3 million tonnes of LNG, an increase of 20% from the original design specification of 6.9 million tonnes per annum (MTA).13 Gas resources are all now being exported, but economic analysis and political commitment indicate opportunities for increased domestic utilization. PPL is in discussion to relocate and refurbish two existing GE turbines to Exxon’s Hides location to produce electricity. Phase II of the project would be a new gas-to-power plant at the same location, which could be developed in phases up to 110 MW to serve the Ramu Grid and planned mining projects in the region.This project will drive down the cost of power generation compared to more expensive liquid fuel and more capital-intensive hydropower and geothermal projects.14 Recently, the government prioritized the use of natural gas for domestic energy requirements and the planned development of a gas master plan is essential to encourage private sector investments in the entire value chain.

II. PROBLEM STATEMENT

Access to affordable and reliable electricity is integral to achieving PNG’s economic and social development objectives. PNG is rich in energy resources with abundant renewable energy as well as natural gas resources but the country currently has one of the lowest electrification rates in the Asia Pacific Region. The PEP targets an ambitious goal of 70% electrification by 2030 from the current level of 13%. Over five years, the USAID PNG Electrification Partnership Activity aims to achieve

11 Electricity Industry Policy, August 2009, p. 10 12 Delivering Affordable, Sustainable and Reliable Power to Papua New Guineans, World Bank, July 2018, p. xiv 13 ExxonMobil PNG LNG website 14 Delivering Affordable, Sustainable and Reliable Power to Papua New Guineans, World Bank, July 2018, p. 94 intermediate progress toward this goal through the strengthening of key energy sector institutions, develop viable off-grid electrification and increased private investment. Therefore, the development hypothesis of this activity is that if technical, financial and organizational capacities of key energy sector stakeholders and institutions improve, then institutions will have greater ability to invest in electrification expansion and partner with the private sector to meet PEP targets.

The PEP target of 70% electrification by 2030 requires the country to add 70,000 connections annually, which is estimated to cost more than $100 million per annum. In recent years, PPL has added approximately 10,000 connections annually. In 2019, PPL is increasing their new connections to 32,000.

This is, however, way below the target of annual connections to meet the PEP goal. Given this huge undertaking, the PEP presents a strategic opportunity for partners to contribute resources and work together to reach the targeted electrification level.

PPL is the main government counterpart for the PEP. Over the last 14 months, PPL has started a reform program which includes the hiring of a new Managing Director. PPL has also established a new senior management team and created focused divisions on their core business of generation, transmission/distribution and commercial retail. These divisions previously did not exist. Advancing PPL reforms and supporting the utility’s sustainability and financial viability is crucial to enable future investment to meet PEP’s electrification targets, and ultimately achieve self-reliance in the energy sector.

Improving regulatory quality is likewise critical to ensure reliable and cost-effective service delivery and consumer protection. For a sector that is positioned to allow greater private sector participation, regulatory oversight is key to sustaining market stability and competitiveness.

III. ACTIVITY PURPOSE

The purpose of the USAID-PNG Electrification Partnership Activity is to contribute significantly to achieving the goal of connecting 70% of Papua New Guinea’s population to electricity by 2030. To accomplish this goal, the Contractor will facilitate reaching a target of at least 200,000 new household electricity connections and institutionalize key strategies that will enable PNG to achieve such by the end of the Activity. Contributions to this target and key strategies will come from interventions outlined in the four objectives of this Activity.”

IV. KEY CONSIDERATIONS/CONSTRAINTS

The PEP Contractor will work with key national government entities such as PPL, ICCC, Department of ICT and Energy, select local government units or District Development Authorities, the private sector, universities and other development partners/donors and non-government organizations that contribute to the PEP goals.

Activity implementation must take into account the following considerations in designing its implementation approach:

● Consideration of PNG’s demography and ethnic diversity. With a population of more than 8 million in 2017, 60% of which are 25 years old and below, Papua New Guinea has one of the most diverse cultures with more than 1,000 ethnic groups and 800 local languages spoken. These tribal communities are highly decentralized and community members have strong allegiance to cultural practices and beliefs, hence interaction with members of these tribal communities must consider these sensitivities. About 80% of the population lives in rural areas and rely on natural resources for its daily subsistence. The Contractor will design strategic approaches for implementing community-based energy systems, capacity building support and technical assistance by recognizing local practices, diversity and livelihoods.

● Advanced coordination with other donors. Several donors are already working to assist the PNG government in pursuing its electrification goals. Convergence and coordination with other donor-funded projects is key to leverage other resources, scale up development impacts, and better meet the needs of the PNG Government. Development partners under the PEP have agreed to sustain dialogues through participation in future Trilateral coordination platforms and the planned PEP Governance Committee. The Contractor will work with other donors and the PNG government to ensure close strategic planning and implementation.

● Synergies with other USAID activities. The Contractor will coordinate, cooperate and communicate with the Pacific-American Climate Fund (PACAM) and the recently awarded biodiversity project called, “Lukautim Graun” (look after the environment) and find synergies in order to optimize resources and enhanced results. Lukautim Graun will work both at the national and local levels to strengthen governance of natural resources for biodiversity conservation. At the site level, the project intends to work in the Bismark Forest Corridor across four provinces:

Madang, Chimbu, Eastern Highlands, and Jiwaka to conserve biodiversity in priority places by demonstrating and replicating conservation actions that reduce the key threats to biodiversity.

Potential partnership with other on-going USAID energy activities managed in Washington, DC such as the Energy Regulatory Partnership Program, the Sector Reform and Utility Commercialization activity, among others.

● Human and Institutional Capacity Development (HICD). The Contractor will review HICD programs for further development for select PNG government agencies including PPL ICCC,the Department of ICT and Energy and other government agencies involved in the energy sector, and follow the guidelines developed by USAID (Reference, Human and Institutional Capacity Development Handbook, October 2010, http://pdf.usaid.gov/pdf_docs/pnadt442.pdf). The Contractor may present similar HICD programs for better results and monitoring features.

● Procurement of smart technologies. The Contractor will consider utility performance improvement procurements that may include, but are not limited to information technologies/architecture that support the meter-to-cash process, mobile billing and collection and data management and analytics; and integrated energy modeling software. These technologies will be factored into the design to improve utility reliability, efficiency and maintenance. Prior to proposing the procurement of these technologies, the activity must leverage private sector resources that are willing to partner with USAID to implement these technologies.

● Gender. In February 2019, the Women’s Global Development and Prosperity (W-GDP) Initiative was signed through the Presidential National Security Memorandum. This whole-of-government initiative aims to promote women’s economic empowerment globally to benefit 50 million women by 2025. In the energy sector, USAID’s Engendering Utilities Program works to promote gender equity. Specifically, it focuses on enhancing gender equity through global best practices in the employee life cycle of electric utility operations with the goal of improving core business outcomes for the utility. At PPL, there is more work across the institution that can be done to increase the participation and decision making of women.

● Private sector engagement. The Asia EDGE Initiative is anchored on engaging the private sector. As the economy grows, demand for energy will increase, thus, the country requires huge http://pdf.usaid.gov/pdf_docs/pnadt442.pdf http://pdf.usaid.gov/pdf_docs/pnadt442.pdf financial investments, including from the private sector. USAID’s private sector engagement is a strategic approach to planning and programming through which USAID consults, strategizes, aligns, collaborates, and implements with the private sector for greater scale, sustainability, and effectiveness of development outcomes across all sectors. The activity must clearly identify the role of the private sector in each of the Tasks and qualify the private sector’s resources that will contribute to achieving the goals of the PEP. Due diligence is expected to be performed by USAID through the Contractor, of the private sector partners.

● Environmental compliance and climate risk management. Development must be environmentally sound, and interventions will be compliant with environmental regulations. As such, the Contractor must ensure adherence to the provisions in Title 22 of the Code of Federal Regulations, Part 216. In addition, the Contractor must comply with PNG’s environmental laws and procedures.

This Activity will be proactive and robust in its strategy against potential climate change impacts. Climate Risk Management (CRM) is now required for new USAID strategies, projects and activities. The Contractor will identify expected climate change impacts over the life of the project’s expected benefits and demonstrate how those risks will be reduced in order to ensure effectiveness and sustainability of the project’s objectives in the face of climate variability and change.

● Sustainability. USAID recognizes that sustainability of interventions is indispensable to meet long-term development objectives. As the Agency plays a leading role in Asia EDGE, the Contractor must highlight the principles behind strengthening energy security and expanding access across the Indo-Pacific region by engaging with local organizations either through subcontracts or grants to develop their institutional capacity, encourage ownership of results and ensure sustainability of reforms.

● Site Selection. USAID reserves the right to add sites or change sites if it deems necessary and strategic or in response to government priorities or in consideration of security, natural disasters, and other challenges that would impede on the capacity of the project to deliver assistance.

The Contractor must, at a minimum, adhere to the following criteria for site selection:

a) Low service coverage vis-a-vis projected high electricity demand;

b) Presence of capable and willing local partners, including women organizations;

c) Implementing or has plans of implementing programs related to electricity distribution/retail;

d) Existing livelihoods that could benefit from increased access to electricity; and

e) Potential collaboration with other existing projects that promote biodiversity conservation and sustainable natural resource management.

V. PERFORMANCE WORK STATEMENT (PWS)

To accomplish the objectives of the PEP, the contractor shall perform the following:

(The Contractor’s PWS to be inserted here).

[END OF SECTION C]

SECTION D – PACKAGING AND MARKING

D.1 MARKING AND BRANDING STRATEGY

The Contractor shall submit a final branding implementation plan and marking plan no later than 30 days after award. The plan must be in accordance with ADS 320.3.2. The plan must be submitted to the COR for approval and shall be developed collaboratively through co-design/co-creation process.

The Contractor shall comply with the requirements of the policy directives and required procedures outlined in USAID Automated Directive System (ADS) 320.3.2 “Branding and Marking in USAID Direct Contracting” at http://www.usaid.gov/policy/ads/300/320.pdf; and USAID “Graphic Standards Manual” available at www.usaid.gov/branding or any successor branding policy.

Anticipated elements of marking plan: Deliverables to be marked, include products, equipment and inputs delivered; places where program activities are carried out; external public communications, studies, reports, publications and informative and promotional products; and workshops, conferences, fairs, media related activities and any such events. Publications authored by Contractors or other non-USAID employees must include the following disclaimer on the title page: “The author’s views expressed in this publication do not necessarily reflect the views of the United States Agency for International Development or the United States Government.” Threats and restrictions to the security of the program need to be identified and assessed in order to request any necessary exception from the marking requirement in accordance with ADS 320.3.2.

USAID’s web page contains the electronic version of the Graphic Standards Manual that is compulsory for all Contractors. Marking under this contract shall comply with the “USAID Graphics Standards Manual” available at http://www.usaid.gov/work-usaid/branding/acquisition-awards.

D.2 AIDAR 752.7009 MARKING (JAN 1993)

(a) It is USAID policy that USAID-financed commodities and shipping containers, and project construction sites and other project locations be suitably marked with the USAID emblem. Shipping containers are also to be marked with the last five digits of the USAID financing document number. As a general rule, marking is not required for raw materials shipped in bulk (such as coal, grain, etc.), or for semi-finished products which are not packaged.

(b) Specific guidance on marking requirements must be obtained prior to procurement of commodities to be shipped, and as early as possible for project construction sites and other project locations. This guidance will be provided through the COR indicated on the cover page of this Contract, or by the Mission Director in the Cooperating Country to which commodities are being shipped, or in which the project site is located.

(c) Authority to waive marking requirements is vested with the Regional Assistant Administrators, and with Mission Directors.

(d) A copy of any specific marking instructions or waivers from marking requirements is to be sent to the Contracting Officer; the original must be retained by the Contractor.

D.3 AIDAR 752.7034 ACKNOWLEDGMENT AND DISCLAIMER (DEC 1991)

(a) USAID shall be prominently acknowledged in all publications, videos or other http://www.usaid.gov/work-usaid/branding/acquisition-awards information/media products funded or partially funded through this contract, and the product shall state that the views expressed by the author(s) do not necessarily reflect those of USAID. Acknowledgments must identify the sponsoring USAID Office and Bureau or Mission as well as the U.S. Agency for International Development substantially as follows:

"This [publication, video or other information/media product (specify)] was made possible through support provided by the Office of [ ], Bureau for [ ], U.S. Agency for International Development, under the terms of Contract No. [ ]. The opinions expressed herein are those of the author(s) and do not necessarily reflect the views of the U.S. Agency for International Development."

(b) Unless the contractor is instructed otherwise by the cognizant technical office publications, videos or other information/media products funded under this contract and intended for general readership or other general use will be marked with the USAID logo and/or U.S. AGENCY FOR INTERNATIONAL DEVELOPMENT appearing either at the top or at the bottom of the front cover or, if more suitable, on the first inside title page for printed products, and in equivalent /appropriate location in videos or other information/media products. Logos and markings of co-sponsors or authorizing institutions must be similarly located and of similar size and appearance.

(End of Clause)

[END OF SECTION D]

SECTION E – INSPECTION AND ACCEPTANCE

E.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE

The following contract clauses pertinent to this section are hereby incorporated by reference (by Citation Number, Title, and Date) in accordance with the clause at FAR “52.252.-2 CLAUSES INCORPORATED BY REFERENCE” in Section I of this contract. See http://www.acquisition.gov/comp/far/index.html for electronic access to the full text of a FAR clause.

FEDERAL ACQUISITION REGULATION (48 CFR Chapter 1)

NUMBER TITLE DATE

52.246-3 52.246-5

INSPECTION OF SUPPLIES – COST REIMBURSEMENT

INSPECTION OF SERVICES – COST-REIMBURSEMENT

MAY 2001

APR 1984

E.2 INSPECTION AND ACCEPTANCE/RESPONSIBLE OFFICIAL

USAID inspection and acceptance of services, reports and other required deliverables or outputs must take place at the location where the services are performed and reports and deliverables or outputs are produced or submitted. The COR listed in Section G has been delegated authority to inspect and accept all services, reports and required deliverables or outputs

E.3 QUALITY ASSURANCE SURVEILLANCE PLAN (QASP)

The QASP will be used to enforce the inspection and acceptance clauses of the contract. The QASP will be submitted by the Contractor to the COR.

The QASP will be co-developed during the collaboration workshop that will take place within 30 days after award of the contract. The QASP will be submitted to the COR for approval 30 days after the collaboration workshop. The contractor and the COR will establish the procedures on how the assessment/inspection process will be conducted. The QASP will require the detailed process for a continuous oversight process:

● What will be monitored?

● How monitoring will take place?

● Who will conduct the monitoring?

● How monitoring efforts and results will be documented?

The Contractor is responsible for implementing and delivering performance that meets contract standards using its Monitoring, Evaluation, and Learning (MEL) Plan. The QASP does not detail how the contractor accomplishes the work. Rather, it provides the structure for the government’s surveillance of the contractor’s performance to assure that it meets contract standards. It is the government’s responsibility to be objective, fair and consistent in evaluating contractor performance.

The QASP will be reviewed and updated as necessary. The Government reserves the right to modify performance standards and/or metrics during the life of this contract, in order to ensure that the right performance results are being assessed and that the performance standards are appropriate. The COR will ensure that the QASP is implemented and updated.

[END OF SECTION E]

SECTION F - DELIVERIES OR PERFORMANCE

F.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE

The following contract clauses pertinent to this section are hereby incorporated by reference (by Citation Number, Title, and Date) in accordance with the clause at FAR “52.252-2 CLAUSES INCORPORATED BY REFERENCE” in Section I of this contract. See http://www.acquisition.gov/comp/far/index.html for electronic access to the full text of a FAR clause.

FEDERAL ACQUISITION REGULATION (48 CFR Chapter 1)

NUMBER TITLE DATE

52.242-15 STOP-WORK ORDER ALTERNATE I AUG 1984

F.2 PERIOD OF PERFORMANCE

The estimated period of performance for this contract is five years from the effective date of the award.

F.3 PLACE OF PERFORMANCE

The place of performance is Papua New Guinea (PNG).

F.4 AUTHORIZED WORK WEEK

The standard work week is from Monday through Friday. No overtime or premium pay is authorized under this Contract. The Contractor is authorized up to a five-day work week for long-term staff. A six-day work week may be authorized on a case by case basis with the prior written approval of the designated Contracting Officer’s Representative (COR).

F.5 PERFORMANCE STANDARDS

The COR and the Contracting Officer will jointly conduct the evaluation of the Contractor’s overall performance and this evaluation shall form the basis of the Contractor's permanent performance record with regard to this contract as required in FAR Part 42.15 and AIDAR 742.15.

The Contractor’s performance under this contract will be evaluated annually and at contract completion, in accordance with the Contractor Performance Assessment Reporting System (CPARS), utilizing at minimum, the following factors:

1. Quality;

2. Schedule;

3. Cost control;

4. Management;

5. Utilization of Small Business (as applicable);

6. Regulatory Compliance; and

7. Other Areas (as applicable) (e.g., late or nonpayment to subcontractors, trafficking violations, tax delinquency, failure to report in accordance with contract terms and conditions, defective cost or pricing data, terminations, suspension and debarments).

F.6 REQUIRED REPORTS

The Contractor must submit required reports and deliverables to the COR specified in Section G with a copy to the cognizant Contracting Officer.

All deliverables and required reporting must be submitted in the English language, unless otherwise specified. The Contractor must promptly notify the COR, of any problems, delays, or adverse conditions which materially impair the Contractor’s ability to meet the requirements of the contract. The COR and the Contractor will develop a standard format for submission of all deliverables during the collaborative workshop that will take place within the first 30 days after contract award.

F.6.1 Annual Work Plan

The Annual Work Plan will be co-developed during the collaboration workshop that will take place within 30 days after award of the contract. The Annual Work Plan will be submitted to the COR for approval 30 days after the collaboration workshop.

The Annual Work Plan that must be supported by a budget will be a guide to the implementation of the contract. The Annual Work Plan and budget must have a link to the results and must be consistent with the PWS. It must also describe the anticipated achievements toward performance indicators with an explanation of how those achievements are expected to contribute to the PEP objectives.

The Contractor must submit subsequent Annual Work Plans to the COR for review and approval no later than 60 days prior to the end of the USG fiscal year (September 30). The Annual Work Plan will be closely tied to the PWS. The Annual Work Plan will include a list of clearly defined Tasks, Activities, Deliverables, Benchmarks and Indicator Targets, and must have no inconsistencies with the PWS. The Contractor must not include activities in the work plan that fall outside the parameters of the

PWS.

To the greatest extent possible, the Contractor will include both men and women in all aspects of this activity including participation and leadership in e.g., meetings, training, etc. The Contractor must collect, analyze and submit to USAID sex- disaggregated data and proposed actions that will address any identified gender-related issues. To ensure that USAID assistance makes the maximum optimal contribution to gender equality, performance management systems and evaluations must include gender-sensitive indicators and sex-disaggregated data when the technical analyses supporting the contract demonstrates that:

●The different roles and status of women and men affect the activities to be undertaken; and ●The anticipated results of the work would affect women and men differently.

The Contractor’s Annual Work Plan will describe how the contractor intends to organize responsibilities among its staff to ensure accomplishment of the tasks. The Annual Work Plan, at a minimum, will include:

● A systematic presentation (i.e., Gantt chart) of activities to be accomplished under the different results and sub-results, on a monthly basis;

● The proposed location of the activity;

● The anticipated outputs and outcomes from each task conducted;

● The anticipated level of effort required from program technical staff and financial resources required to complete the tasks;

● The identification of any assumptions used in preparation of the Annual Work Plan, as well as suggested alternatives, if necessary;

● The anticipated risks with regard to achieving the anticipated objectives of the contract and how they will be mitigated; and

● Any specific award terms or conditions that interfere with maximizing the developmental impact of the award.

Each year, the Contractor will submit for approval a list of commodities that will be purchased during the fiscal year as part of the Annual Work Plan process. The annual commodities procurement list may be revised as necessary in consultation with the COR and by approval of the Contracting Officer, as appropriate. The initial list of commodities due with the technical proposal must be updated and finalized within 30 days of the contract award. Any substantial revisions to the Annual Work Plan will require the written approval of the COR.

F.6.2 Performance Monitoring, Evaluation, And Learning (MEL)

The MEL Plan will be co-developed during the collaboration workshop that will take place within 30 days after award of the contract. The MEL Plan which must be consistent with ADS 201 will be submitted to the COR for approval 30 days after the collaboration workshop.

The MEL plan shall cover the life of award. Annual MEL Plan development is NOT recommended.

However, the contractor must review the MEL plan annually to ensure that it is still valid. If, over the course of implementation, modifications to the MEL plan become necessary, changes to the MEL plan shall be proposed to the COR. Once approved, the Contractor will then amend the MEL plan to reflect those changes and document clearly the changes as approved. If modified, the MEL plan shall not exclude data previously collected, and, to the extent possible, shall mitigate any significant variations in data collection methodology, indicator definition, or data presentation. The intent of the MEL plan is to show changes over time as a result of USAID intervention.

The MEL plan will be guided by the activity’s goal(s) and objective(s), anticipated results articulated in the results framework, the theory of change, and planned inputs/interventions as laid out in the Annual Work Plan. The MEL plan will also serve as a tool of mutual understanding among all parties involved (e.g. USAID, the Contractor, Sub-contractor (if any), and other stakeholders) on stakeholders’ MEL roles and responsibilities and how the achievements of this award will be measured and presented. Routine MEL tasks and reports will give the Contractor and USAID a basis for gauging performance and return on investment, promoting learning, and facilitating adaptive management to allow activity adjustment due to unforeseen changes in strategy, approach, or operating environment that may be needed to achieve or maximize results.

The MEL Plan must include key evaluation questions that will guide the understanding and interpretation of results in line with USAID Evaluation Policy. Under USAID’s new Evaluation Policy, the implementing partner is primarily responsible for monitoring and ongoing evaluations (typically formative and mid-term evaluations) that inform management decisions by assessing whether projects are being implemented as planned, reaching targeted groups, and achieving expected outputs and outcomes.

However, the primary responsibility for summative and other third-party evaluations that assess the overall performance and results from the project/activity rests with USAID and will not be funded under this Contract. While the implementing partner will provide supporting data and analysis, such evaluations will be designed, implemented and separately contracted (where contract support is needed) by the Mission to assure objectivity and rigor.

Where projects or activities are implemented in particular locations, the M&E Plan must include a discussion on ways to map and track the type of intervention by project component and fund use. The

Contractor is encouraged to collaborate with relevant stakeholders in monitoring efforts to assure that monitoring and evaluation systems are as cost-effective as possible.

During contract performance, the MEL Plan shall be updated, as necessary, and is subject to COR approval.

Performance Monitoring

Regardless of the start date of the award, the performance monitoring plan will be adjusted to the fiscal calendar of October 1 to September 30.

The MEL plan must follow contents and instructions as specified in the USAID MEL Plan Template (to be provided by the COR). The contractor is encouraged to use quantitative as well as qualitative indicators, as deemed appropriate, for the result it is intended to measure. The MEL Plan will be submitted to the COR according to the reporting timeline specified in the award.

Evaluation

USAID funds shall not be used for any studies that do not meet USAID and/or international standards, are not necessary or have no added value to maximize the outcomes or results, and/or have no clear objectives and a plan for data use. The Contractor may conduct special studies, such as internal evaluations, formative assessment, and baseline and end-line surveys, as deemed necessary. The studies shall be planned and their purposes, methods, and intended use of the findings and recommendations be precisely described in a relevant section of the MEL plan. The study concept/protocol and the scope of work or terms of reference of the study team must be shared with the COR and COR clearance shall be obtained prior to implementation. At any time of award, USAID may conduct one or more evaluation(s), either by USAID staff and/or a third-party external to USAID and the Contractor, as deemed appropriate.