72051823R00001 (00).pdf

72051823R00001

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

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C. E-MAIL ADDRESS

EXT.NUMBERAREA CODE

B. TELEPHONE (NO COLLECT CALLS)A. NAME

10. FOR

INFORMATION

CALL:

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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K

L

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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11. TABLE OF CONTENTS

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IS DIFFERENT FROM ABOVE - ENTER

15C. CHECK IF REMITTANCE ADDRESS

EXT.NUMBERAREA CODE

15B. TELEPHONE NUMBER

(Type or print)AND

ADDRESS

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OFFEROR

CODE

FACILITY

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

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720518

USAID/Ecuador

Avigiras E12-170 y Av. Eloy Alfaro Quito – Ecuador

1700 R 07/17/2023

Miguel Atuesta matuesta@usaid.gov

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PAGE(S)

William Sedlak

AUTHORIZED FOR LOCAL REPRODUCTION

Previous edition is unusable

STANDARD FORM 33 (Rev. 9-97)

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

2-8

9-21 24-39 40-42

44-47

49-71

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83-87

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

Issuance Date: ............................................................ May 30, 2023

Questions Due Date: ........... June 21, 17:00 Quito Local Time (QLT)

Past Performance Due Date: ................. June 26, 2023, 17:00 QLT

Full Proposal Due Date: ........................... July 17, 2023, 17:00 QLT

Subject: Request for Task Order Proposal (RFTOP) – Local Service Delivery “Tu Municipio Responde” (TuMUNI) Activity No. 72051823R00001 – USAID/Ecuador, under the Water and Development II IDIQ (WADI II) Contract

Dear Prospective Offerors:

The United States Government, represented by the United States Agency for International Development (USAID)/Ecuador, is seeking proposals from U.S. or non-U.S., non-profit, or for-profit organizations, to enhance Ecuadorian citizens' access to critical public services, including to water, sanitation, and hygiene (WASH), by strengthening the capacity of local governments for the effective, transparent, and citizen-responsive provision of local services.

The Authorized Principal Geographic Code for this solicitation is 937 – Default. The North American Industry Classification System (NAICS) Code for this solicitation is 541990 – All Other Professional, Scientific, and Technical Services.

USAID anticipates awarding a single Cost-Plus-Fixed-Fee (CPFF) Completion-Type Task Order (TO). The Total Estimated CPFF for services under this TO is estimated to fall within the range of $40-50 million. This procurement will be conducted under Fair Opportunity procedures, pursuant to Part 16.5 of the Federal Acquisition Regulation (FAR) (48 CFR Chapter 1). Please refer to Section L for information regarding proposal requirements. Offerors should consider the expected delivery time required by the proposal transmission method they choose, and they are responsible for ensuring proposals are received at USAID by the due date and time as specified in Section L. Any proposal not received by USAID by the date/time specified in this RFTOP will not be reviewed or evaluated. Faxed proposals are not acceptable, nor will they be reviewed or evaluated.

Section L of the RFTOP sets forth all instructions for the preparation and submission of required proposal contents, including critical dates/times for the submission of questions, and the proposal submission closing date and time. Section M states the criteria by which proposals will be evaluated. The competition will utilize a Highest Technical Rated (HTR) with Fair and Reasonable Price and Realistic Cost process, not a Tradeoff process. In this process, USAID is concerned with getting the best technical solution that has a fair and reasonable price and realistic cost. There will not be a tradeoff to justify paying a premium for a higher technical rated proposal.

RFTOP No. 72051823R00001 USAID/Ecuador Local Service Delivery Activity

Offerors must carefully review Sections L and M of this RFTOP for details of this process. Section L of the RFTOP sets forth all instructions for the preparation and submission of required proposal contents, including critical dates/times for the submission of questions, and the proposal submission closing date and time. Section M states the criteria by which proposals will be evaluated. Oral explanations or instructions given before award of the contract that are not formalized with an amendment will not constitute a formal amendment of the RFTOP and will not be binding.

USAID expects that Offerors will have equal access to all local organizations needed to implement this contract and strongly discourages exclusivity agreements with local organizations.

Any questions regarding this RFTOP are to be submitted in writing via email to Miguel Atuesta at matuesta@usaid.gov with a copy to me at wsedlak@usaid.gov before the date and time specified on page 1 of this cover letter. Please note that only an electronic submission for past performance and full proposal will be accepted in response to this RFTOP, which must be addressed to me and Mr. Atuesta at the electronic addresses noted above, before the date and time specified on page 1 of this cover letter.

This RFTOP in no way obligates USAID to award a contract or task order nor does it commit USAID to pay any cost incurred in the preparation and submission of a proposal. Award of a Contract under this RFTOP is subject to availability of funds and other internal USAID approvals.

Sincerely, William Sedlak Contracting Officer Office of Acquisition & Assistance USAID/Ecuador mailto:matuesta@usaid.gov

Table of Contents

Table of Contents

PART I – SCHEDULE

SECTION B - SUPPLIES OR SERVICES AND PRICES/COSTS

B.1 PURPOSE 7

B.2 TASK ORDER TYPE 7

B.3 ESTIMATED COST, OBLIGATED AMOUNT AND FIXED FEE 7

B.4 CONTRACT BUDGET AND CEILINGS 7

SECTION C – DESCRIPTION/STATEMENT OF OBJECTIVES

C.1 TITLE OF ACTIVITY 9

C.2 PURPOSE 9

C.3 BACKGROUND AND SCOPE 9

C.4 GEOGRAPHIC SCOPE 11

C.5 THEORY OF CHANGE 12

C.6 OBJECTIVES 12

C.7 GENERAL ORGANIZING AND CROSS-CUTTING PRINCIPLES 18

C.8 IMPACT EVALUATION 20

C.9 GENDER AND SOCIAL INCLUSION 20

C.10 AFRO-ECUADORIAN AND INDIGENOUS CONSIDERATIONS 21

C.11 LOCAL ORGANIZATIONS 21

C.12 SECURITY STRATEGY 21

SECTION D– PACKAGING AND MARKING

D.1 SPECIAL TASK ORDER REQUIREMENTS 22

D.2 BRANDING IMPLEMENTATION PLAN AND MARKING PLAN 22

SECTION E – INSPECTION AND ACCEPTANCE

E.1 SPECIAL TASK ORDER REQUIREMENTS 23

E.2 INSPECTION AND ACCEPTANCE 23

SECTION F – DELIVERIES OR PERFORMANCE

F.1 52.252-2 CLAUSES INCORPORATED BY REFERENCE (FEB 1998) 24

F.2 PERIOD OF PERFORMANCE 24

F.3 PLACE OF PERFORMANCE 24

F.4 PERFORMANCE STANDARDS 24

F.5 REPORTS AND DELIVERABLES 24

F.6 PERSONNEL 36

F.7 AUTHORIZED WORK DAY/WEEK 39

SECTION G– CONTRACT ADMINISTRATION DATA

G.1 SPECIAL TASK ORDER REQUIREMENTS 40

G.2 TASK ORDER CONTRACTING OFFICER’S AUTHORITY 40

G.3 TASK ORDER CONTRACTING OFFICER’S REPRESENTATIVE 40

G.4 ACCEPTANCE AND APPROVAL 40

G.5 PAYING OFFICE 40

G.6 ACCOUNTING AND APPROPRIATION DATA 41

G.7 CONTRACTOR’S PRIMARY POINT OF CONTACT 41

G.8 CONTRACTOR'S PAYMENT ADDRESS 41

G.9 TECHNICAL DIRECTIONS / RELATIONSHIP WITH USAID 41

SECTION H - SPECIAL CONTRACT REQUIREMENTS

H.1 SPECIAL TASK ORDER REQUIREMENTS 43

H.2 CONTRACTOR’S STAFF SUPPORT, AND ADMINISTRATIVE AND LOGISTICS

ARRANGEMENTS 43

H.3 LANGUAGE REQUIREMENTS 43

H.4 SECURITY PROTOCOL 43

SECTION I – CONTRACT CLAUSES

I.1 NOTICE LISTING TASK ORDER CLAUSES INCORPORATED BY REFERENCE 44

SECTION J – LIST OF ATTACHMENTS, EXHIBITS, AND OTHER ATTACHMENTS

SECTION K - REPRESENTATIONS, CERTIFICATIONS, AND OTHER STATEMENTS OF BIDDERS

K.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE 49

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

CERTAIN FEDERAL TRANSACTIONS (SEPT 2007) 49

K.3 52.203-18 PROHIBITION ON CONTRACTING WITH ENTITIES THAT REQUIRE CERTAIN

INTERNAL CONFIDENTIALITY AGREEMENTS OR STATEMENTS - REPRESENTATION (JAN 2017)

K.4 52.204-8 ANNUAL REPRESENTATIONS AND CERTIFICATIONS (MAY 2022) 50

K.5 52.204-17 OWNERSHIP OR CONTROL OF OFFEROR (AUG 2020) 54

K.6 52.204-24 REPRESENTATION REGARDING CERTAIN TELECOMMUNICATIONS AND

VIDEO SURVEILLANCE SERVICES OR EQUIPMENT (NOV 2021) 55

K.7 52.204-26 COVERED TELECOMMUNICATIONS EQUIPMENT OR SERVICES -

REPRESENTATION (OCT 2020) 58

K.8 52.209-2 PROHIBITION ON CONTRACTING WITH INVERTED DOMESTIC

CORPORATIONS-REPRESENTATION (NOV 2015) 59

K.9 52.209-5 CERTIFICATION REGARDING RESPONSIBILITY MATTERS (AUG 2020) 59

K.10 52.209-7 INFORMATION REGARDING RESPONSIBILITY MATTERS (OCT 2018) 61

K.11 52.209-11 REPRESENTATION BY CORPORATIONS REGARDING DELINQUENT TAX

LIABILITY OR A FELONY CONVICTION UNDER ANY FEDERAL LAW (FEB 2016) 62

K.12 52.209-13 VIOLATION OF ARMS CONTROL TREATIES OR AGREEMENTS -

CERTIFICATION (NOV 2021) 63

K.13 52.222-38 COMPLIANCE WITH VETERANS’ EMPLOYMENT REPORTING

REQUIREMENTS (FEB 2016) 65

K.14 52.222-56 CERTIFICATION REGARDING TRAFFICKING IN PERSONS COMPLIANCE

PLAN 65

K.15 52.230-1 COST ACCOUNTING STANDARDS NOTICES AND CERTIFICATION (JUN 2020)

K.16 52.230-7 PROPOSAL DISCLOSURE-COST ACCOUNTING PRACTICE CHANGES (APR

2005) 68

K.17 52.237-8 RESTRICTION ON SEVERANCE PAYMENTS TO FOREIGN NATIONALS (AUG

2003) 68

K.18 52.242-4 CERTIFICATION OF FINAL INDIRECT COSTS (JAN 1997) 69

K.19 CERTIFICATION REGARDING LOBBYING 70

K.20 SIGNATURE 71

SECTION L - INSTRUCTIONS, CONDITIONS, AND NOTICES TO BIDDERS

L.1 NOTICE LISTING SOLICITATION PROVISIONS INCORPORATED BY REFERENCE 72

L.2 FAR 52.216-1 TYPE OF CONTRACT (APR 1984) 72

L.3 52.233-2 SERVICE OF PROTEST (SEP 2006) 72

L.4 WAIVERS UNDER FAR PART 4.2101 PROHIBITION ON COVERED

TELECOMMUNICATIONS AND VIDEO SURVEILLANCE SERVICES AND EQUIPMENT 73

L.5 GENERAL INSTRUCTIONS TO OFFERORS 75

L.6 GENERAL SUBMISSION INSTRUCTIONS 76

L.7 INSTRUCTIONS FOR THE PREPARATION OF THE TECHNICAL PROPOSAL 77

L.8 COST/BUSINESS PROPOSAL INSTRUCTIONS 81

SECTION M – EVALUATION CRITERIA

M.1 GENERAL INFORMATION 83

M.2 METHOD OF EVALUATION 83

M.3 TECHNICAL EVALUATION CRITERIA 84

M.4 COST EVALUATION (SEE SECTION L.8) 86

M.5 EVALUATION OF INITIAL OFFERS AND COMMUNICATIONS 86

PART I – SCHEDULE

SECTION B - SUPPLIES OR SERVICES AND PRICES/COSTS

B.1 PURPOSE

The purpose of this Activity is to expand citizens' access to critical public services, including to water, sanitation, and hygiene (WASH), by strengthening the capacity of local governments for the effective, transparent, and citizen-responsive provision of local services in no more than 30 municipalities. Through the provision of local services, this Activity will demonstrate that democratic governance produces results and, at the same time, catalyze progress in other sectors such as economic growth, education, digital connectivity, and child nutrition.

B.2 TASK ORDER TYPE

This is a Cost Plus Fixed-Fee Completion Type Task Order (TO) awarded under the WADI II IDIQ Contract.

B.3 ESTIMATED COST, OBLIGATED AMOUNT AND FIXED FEE

B.3.1. Estimated Cost, Fixed Fee and Obligated Amount

a. The estimated cost for the performance of the work required hereunder, exclusive of fixed fee, is up to [TBD]. The fixed fee is [TBD]. The total estimated cost-plus fixed fee is [TBD].

b. Within the total estimated cost-plus fixed fee specified in paragraph (a) above, the amount currently obligated and available for reimbursement of allowable costs incurred by the Contractor (and payment of fee) for performance hereunder is [TBD]

c. The Contractor must not exceed the aforesaid obligated amount.

B.3.2. Payment of Fixed Fee

Pursuant to FAR 16.306(d), the fixed fee payment is tied to the conditions and completion of the deliverables specified in Section F.5 of this TO and in accordance with the amounts in B.3.1.a.

B.4 CONTRACT BUDGET AND CEILINGS

B.4.1. Base Period of Performance Summary Budget

Description Total ($)

Activity Costs………………………………………………………… $[TBD]

Non-construction subcontractor activities………..

Construction sub activities ……………………………….

Grants under Contract………………………………………

Total Activity Fund…………………………………………………

$[TBD]

$[TBD]

$[TBD]

$[TBD]

Total Estimated Cost…………………………………………….. $[TBD]

Fixed-Fee……………………………………………………………… $[TBD]

Total Estimated Cost-Plus Fixed Fee…………………….. $[TBD]

The Contractor will not be paid any sum in excess of the ceiling price. The only person authorized to commit or obligate additional funds is the task order Contracting Officer (TOCO).

Incurrence of costs in excess of the total amount obligated based on directions received from any individual other than the TOCO and without prior TOCO’s approval, will not be reimbursed to the Contractor.

[END OF SECTION B]

SECTION C – DESCRIPTION/STATEMENT OF OBJECTIVES

[The successful Offeror’s proposed Performance Work Statement (PWS) in response to the Statement of Objectives will become Section C in the resultant contract followed by the sections below. Instructions are found in Section L.7.1]

C.1 TITLE OF ACTIVITY

USAID/Ecuador Tu Municipio Responde (TuMUNI).

C.2 PURPOSE

The purpose of this Activity is to measurably strengthen the capacity and functionality of local municipalities to provide important public services, for the livelihoods and prosperity of their citizens. The Activity will work with local governments, civil society organizations and the Government of Ecuador (GOE) to identify opportunities for strengthening service delivery systems through increasing the capacity of local government and service providers and through the coordination of public policies and guidelines among relevant stakeholders. This Activity will have an integrated approach by working in municipal strengthening and delivery of public services (especially drinking water and sanitation) and at the same time catalyzing progress in other sectors such as economic growth, education, digital connectivity, and child nutrition.

The Activity will have two components: (a) More effective and accountable local governance and (b) Improved water and sanitation services. It is aligned with the Water and Development II (WADI II) scope as outlined in the Indefinite Delivery, Indefinite Quantity Contract (IDIQ). WADI II is the USAID Center for Water Security, Sanitation, and Hygiene’s central field support mechanism for missions and other operating units to access critical technical services in support of the U.S. Government’s Global Water Strategy and USAID Water and Development Plan; and other USAID water policies, strategies, and priorities. The Activity is aligned within several cross-cutting governance services including: strategic planning and program design; capacity development and institutional strengthening; technical and service delivery; and policy, regulatory and institutional support. The Activity falls within the democracy and governance and water and sanitation sub-sectors, among others.

C.3 BACKGROUND AND SCOPE

Local governments in Ecuador play a key role in the economic and social development of the country. Through national decentralization efforts, they have the authority to maximize this role for the benefit of its citizens and vitality of the country. USAID recognizes the opportunity to support the strengthening of local government service delivery to demonstrate that democratic governance produces results and is developing this Activity to achieve those results.

This Activity will review those existing municipal delivery systems including direct in-house supply, private sector provision of services, partnerships with other governments, or public-private partnerships and support measures to increase efficiencies and transparency as well as maximize efforts that have already been implemented. Ecuador is a unitary state with a two-tiered system of decentralization with 22 provinces and 222 municipalities as stated in the 2008 https://www.usaid.gov/water-and-sanitation/us-global-water-strategy

Constitution.1 There are some additional divisions of governance – regional and parish units, which are important for reference and understanding the structure of governance, but for the purposes of this Activity, the focus is on municipalities.

Beginning in the early 1990s, Ecuador’s decentralization reforms yielded a framework for decentralization in Ecuador. The implementation of these reforms has included reorganizing management structures to better address needs across staff and line functions, establishing regional and technical coordination or service delivery, and setting goals to promote greater citizen participation. However, like any decentralization process, progress has not always been uniform. Some municipalities have become more successful than others in building their public management capacity and providing services. Fiscal transfers from the national government typically do not cover the expenses and demands for services that local governments face since the majority of the resources cover salaries in smaller municipalities. This Activity will address this decentralization dynamic and provide solutions for strengthening municipalities in light of decentralization. For reference, USAID/Ecuador completed a Decentralization and Democratic Local Governance Project in the mid-2000s.2 Today, through this Activity, USAID/Ecuador and the GOE, have an opportunity to create effective change for local governments.

Prioritizing assistance for Ecuador is part of a U.S. Government initiative that recognizes the democratic openings that exist within a country so that as systems improve and the public sees transparent and accountable public policies implemented, their confidence in elected officials will increase. As a result, public trust will increase, and democratic values will persist. For Ecuador, this Activity will focus on both short- and long-term results. First, the Activity will deliver a short-term quick win – a demonstrated result in nine months that can be showcased as evidence that democratic governance produces results. Water and sanitation are key public services that populations expect. Therefore, the initial investment – the quick win – will be that within the first nine months, first stage water and sanitation interventions would be underway and showing initial impact. No matter the timing of the quick wins, capacity development will always be a critical element to be provided to all the municipalities through the intervention.

Focusing on water and sanitation is also strategic from a standpoint of immediate impact of improving the health and wellbeing of municipal residents. A recent and ongoing LACLEARN study3 has focused on several components of local governance including childhood nutrition.

Recognizing that an immediate opportunity exists to increase access to water will go a long way in improving the health and wellbeing of children in these communities. USAID also had a long history of successful water provision activities in the Northern and Southern Border Regions, and this Activity can build upon those lessons learned.

Democracy also depends on longer term investments to demonstrate how and why a governance system based on transparent, participatory, and equitable allocation of resources and capacity building through public input and support results in prosperity. Despite advances

1 https://www.constituteproject.org/constitution/Ecuador_2021?lang=en 2 https://pdf.usaid.gov/pdf_docs/PDACH794.pdf 3 https://docs.google.com/document/d/1rZaDwrV3OPrmCQLNcA9f1LC7QgRQyXVX/edit https://www.constituteproject.org/constitution/Ecuador_2021?lang=en https://pdf.usaid.gov/pdf_docs/PDACH794.pdf https://docs.google.com/document/d/1rZaDwrV3OPrmCQLNcA9f1LC7QgRQyXVX/edit made in Ecuador’s legal framework which provides several mechanisms for citizen participation and transparency, as well as parity for the participation of women and youth in public office, local governments lack the capacity and/or will to implement these and citizens need to be acquainted with these mechanisms and empowered to participate in policy and decision-making. Participatory governance and planning are essential for municipal strengthening and vice versa. Local governments range in their capacity to effectively govern and their own success usually depends on the level of capacity to manage governance systems like public financial management, delivery of services, supporting economic development and issuing effective public policies and advocating with the national government for resources to ensure the sustainability of programs and policies. Adding value to the existing system of municipal planning and community development will be critical to the success of this Activity. Further strengthening will come through a focus on investing in a range of sectors that support local governments.

The strength of municipalities can be evaluated by: (1) their ability to adhere to national expectations for community development and (2) their ability to govern based on the knowledge and capacity of local authorities and staff. The National Council of Competencies (CNC), as established by the Ecuador Constitution, outlines 14 competencies that local governments are expected to address and meet. These include ones that are not regulated such as water and sanitation and some that are regulated like environmental management, transit, and roads. For coordination, municipalities are required to report on: (1) how they plan (2) how they spend and (3) their citizen participation activities. Municipalities have many gaps and deficiencies in these competencies. For example, many municipalities do not provide comprehensive information on what they spend funds on. This Activity can address these gaps and add value to this existing system.

A key area of deficiency is the capacity of municipal staff. While there are some experts in local government, the majority of civil servants at the municipal level do not have the comprehensive knowledge to manage complex municipal service delivery systems. In addition, elected officials lack any large-scale vision for improving their municipalities. Without a clear vision, it is difficult to get buy-in from staff and constituents. Organizations exist that build these capacities. This Activity is meant to support capacity building efforts.

This Activity will maximize the opportunities of the local governments to demonstrate measurable results in the provision of public services. Improvements in all of these are necessary to ensure responsive and transparent municipalities, which is furthermore linked to the overall satisfaction with democracy and its elected officials.

C.4 GEOGRAPHIC SCOPE

The Activity will be implemented in no more than 30 small and medium sized municipalities that have demonstrated a level of capacity that when enhanced through this intervention will lead to more efficient and accountable service delivery. The selection of municipalities will be taken in a phased approach, meaning not all 30 municipalities will receive the intervention up front. Based on the desire for some quick demonstrated results and longer-term capacity building, the selected municipalities will include a range of capacities commensurate with accomplishing these goals. These municipalities will be identified in coordination with the GOE and will likely focus on the Coast and Amazon, with some sites in the Andean region. For efficiency of project management, municipalities will be clustered in these geographic regions.

In close coordination with USAID, the Activity must develop a non-partisan set of criteria to select participating municipalities. The selection approach must account for USAID priority areas, such as existing USAID investments as well as areas where the Activity can leverage external partner investments.

As this Activity will be coordinated with other USAID efforts, the selected municipalities should overlap with municipalities in USAID/Ecuador’s Environment and DG on-going portfolios.

Another factor will be that selected municipalities should leverage investments of like-minded partners and organizations that are investing in this space. Furthermore, underrepresented voices, such as women, youth, and Indigenous people, will have a prioritized role in contributing to the solution.

Municipal selection will be based on the following criteria:

a. Concentration for impact by leveraging existing investments (i.e., environment (ENVE) and democracy and governance (DG) portfolios) made by USAID and other development agencies;

b. The political will of the municipality;

c. Advancement of Mission priorities or initiatives;

d. Best represents the most significant potential for providing public services in the near and long term (broader and longer impact); and

e. Concentration of populations traditionally excluded (Indigenous peoples, women, afro- Ecuadorians, and youth).

Based on LACLEARN’s study, and locations of USAID/Ecuador’s environment and DG programs, USAID/Ecuador has a preliminary list of municipalities that could benefit from this Activity. The contractor shall analyze and recommend the locations that would maximize impact and optimize investments to achieve the proposed results.

The first step of the Activity implementation will be to complete a baseline of selected municipalities so that Objectives can be measured from the baseline through implemented results.

C.5 THEORY OF CHANGE

TuMUNI is based on the theory of change that IF Ecuador’s municipalities increase their capacity to generate local revenue, provide public services, and increase citizen participation in decision making, THEN citizens will have improved access to critical municipal services, including water and sanitation, AND their overall satisfaction with the quality of public democratic governance will increase.

C.6 OBJECTIVES

As stated above, the purpose of the TuMUNI Activity is to measurably increase and strengthen the capacity and functionality of local municipalities to provide important public services for the https://drive.google.com/file/d/1Te7MNsgOIeJKMO4ZZ-rqFRyC47E8ctea/view?usp=share_link livelihood and prosperity of its citizens. This purpose is intended to demonstrate how democratic institutions, in this case municipal governments, can have a visible and tangible impact on the lives of citizens. To that end, and to the maximum extent possible, the contractor must focus on achieving improved performance by municipal governments and increased/enhanced service delivery in the target areas.

The contractor must work with the GOE, local governments, and other stakeholders to strengthen the capacity of municipalities governance operations including public financial management, revenue generation, and provision of public services. The contractor must ensure that this increased capacity is commensurate with both providing in demand municipal services and delivering increased water and sanitation services in identified jurisdictions. Because water and sanitation are considered a high priority and a sector that can produce near term successes, it may be important to focus on water and sanitation delivery first and then enable selected municipalities to address other sectors. No matter the timing of the quick wins, capacity development will always be a critical element to be provided to all the municipalities through the intervention. Through water and sanitation and other public services this activity will catalyze progress in other sectors such as economic development, digital connectivity, child nutrition, utilities, education, and health care.

C.6.1. Objective 1: More effective and accountable local governance

The hallmark of any democracy is citizen security and public trust. When democracy delivers, citizens have confidence in a government that is able to deliver basic services. The degree to which a government is able to carry out its functions at any level can often determine a country's ability to sustain democratic reforms and provide for the well-being of its citizens.

USAID’s objective for any Activity focusing on democratic governance is the effective, efficient, and responsive management of government resources. This includes enhancing executive and legislative institutions at all levels of government to provide effective, inclusive, and citizen-responsive services to efficiently and transparently mobilize and spend public resources to promote locally owned development and inclusive economic growth.

Though Ecuador has gone through a decentralization process, much work remains to be done to ensure that local governments are equipped to deliver on citizen expectations for a host of public services including waste management, transport, utilities, education, health care, and economic development, among other services. Through this work, the contractor will evaluate local governance service delivery systems and create additional efficiencies in staff productivity and delivery processes. In doing so, public trust will increase, and livelihoods will be strengthened.

Result 1: Municipal planning, budgeting, procurement, and reporting capabilities enhanced

To enhance municipal processes and capabilities, interventions under this result may include actions to evaluate municipal cash or accrual accounting, provide technical assistance for local governments to transition to accrual accounting in budget formulation and execution, improve technical capacity in budgeting to enable local governments to develop budgets based on accurate financial status and address imbalances in allocations to certain services. This may include reviewing capacities to estimate service costs, and restructure tariffs to ensure sustainability and cost recovery. It would also include technical and communications reports that use evidence-based data to ensure that citizens easily understand them. Other facets include upgrading existing systems and developing Integrated Financial Management Systems (IFMS). IFMS digitizes the municipal financial systems, and links the various systems/ programs, in one unified program. Increased transparency and citizen participation will be critical to the success of this result.

Result 2: Own-source revenues increased

Most local governments recognize the gaps that exist between fiscal transfers from national governments and the costs of providing services demanded by the public. By increasing their own source revenue by 1 or 2 percent, local governments can close the fiscal gap needed to provide services. One method for adding to own source revenue to increase collection efficiency for municipal services: assess effectiveness of collection systems for municipal service fees, develop improved municipal billing and collection procedures and systems, and automation of billing and collection systems. Local governments can establish a database which includes the citizen beneficiaries from municipal services.

A second area for improvement is reevaluation of the property tax and its collection. Most local governments experience a large leakage of municipal revenues because the systems in place (land titling and tax assessment) are not particularly effective or efficient in identifying property owners, assessing the tax rate, and then collecting the necessary tax. Local governments in Ecuador can evaluate the effectiveness of their systems and measure the rate of tax collection versus expected figures. In doing so, local governments can establish a clear baseline of expected revenue and adjust their collection schemes based on the factor by which they are able to collect taxes. Increased budget transparency and budget execution will also be a crucial factor to guarantee citizen satisfaction in this result.

Result 3: Transparent, inclusive, and participatory planning implemented

Local governments in Ecuador strive to govern in ways that are transparent, inclusive, and participatory, but in many cases lack the capacity to direct efforts in a way to articulate local plans and public policies to the public. This articulation is valued as a competency of local governments, but given the demands of time and resources, many municipalities have not invested in necessary communications systems and training to prepare civil servants and elected officials with the tools necessary to incentivize public discourse and participation.

Working with civil society organizations provides opportunities to implement open government practices for more transparent, innovative, and participatory local governance. The work with local organizations also helps establish and implement information systems to support alliances between municipalities and the public. The Activity may also consult the existing USAID’s Innovating Democracy And Governance Partnerships program for further coordination. These partnerships also invest in the training of public officials and create linkages between the needs of the community and the investments made in local governments. By focusing on increased investment for the implementation of open government, and communications training, the Activity will lead to more knowledgeable staff and citizens, increased transparency in public-decision making, and create a dialogue understanding that increases public trust and confidence in decision making at the local government level.

Result 4: Municipal public services improved/increased

Beyond overarching improvements to strengthen municipal systems, a key result of this Activity will be to increase efficiencies and amounts of selected services for the municipalities selected for this work. Recognizing the importance of human health and livelihoods, the LACLEARN study has identified key issues like nutrition, water and sanitation, education and digital access as key facets of everyday living that can be enhanced by attention and investments of delivery of these services. Furthermore, participating local governments will identify other key services like waste management, electricity, roads, and other infrastructure for attention and focus through this Activity. Interventions under this result may include actions to enhance systems such as the introduction of citizen service centers to identify service needs or gaps in service provision. Or improvements might include: revision of service procedures, developing automated systems for service provision to reduce processing times; and introducing e-services in key areas.

Result 5: Increased participation of women, youth, and Indigenous people in local governance

The voice of women and marginalized groups will need to be considered and embedded in any strategic process for identifying how to improve municipal service delivery. Furthermore, provinces with high Indigenous populations and Afro communities will need to be carefully considered. Increasing leadership skills and public management capacity of women, particularly recently elected mayors, city council and parish members, as well as community-based leaders, will have a particular focus of attention under this Activity. The program will help promote the participation of women, including young women, in local governance, enhance women’s leadership at the community level, and help women elected officials in selected municipalities strengthen their capacity for public management. Later, the program will work local agendas by elected officials to promote gender equity and combat issues affecting women, including GBV in the political and social arena.

The Ecuadorian Constitution, which specifically addresses gender equality under its chapters 1 and 2 is a good place to base additional emphasis on equality for underserved populations, including women. With a more informed population and an understanding that women’s and youth empowerment and participation can increase the economic vitality of local governments, it is clear that this Activity should result in increased decision making and influence for women, youth, and Indigenous people at the local level.

C.6.2. Objective 2: Improved Water and Sanitation Services

Access to water and sanitation have key impacts in livelihoods, health, and security. Access to improved water sources in Ecuador has increased from 80.7 percent in 2007 to 88.7 percent in 2016. An average of 95.5% of urban households have access to improved water sources, compared to 74.3% of rural households. However, much of this access is not to quality water or continuous access to that water. There are geographic variations as well in access: Andean communities generally have more access to water than communities in the Amazon region or on the Ecuadorian coastline. Service providers vary per municipality. The most recent information in the 2021 Potable Water and Sanitation Management in Decentralized Municipal Autonomous Governments Report shows that 62.9 percent of the Decentralized Municipal Autonomous Governments managed the provision of drinking water and sanitation services through the municipality, while 30.3 percent managed through municipal state-owned companies and 6.3 percent managed through joint state-owned companies. Of the 221 cantons, only 119 (54 percent) served parishes, precincts, or communities outside the cantonal capital.4 Quality of water is the main problem, with 79.3% of the population having access to safe water. More importantly, there is a significant difference between urban and rural populations, with only 51.4% of rural populations having safe water vs. 71.9% of urban populations. The majority of service provision outside capitals occur through community water management organizations (juntas administradoras de sistemas de agua y saneamiento). It is estimated that almost 7,000 juntas exist in the country.

Much work has already been done with juntas. The Contractor must build off of and engage civil society organizations and nongovernmental organizations who currently collaborate with juntas. For example, the AVINA Foundation has developed a set of 13 modules for an integral capacity building program for juntas de agua.5

Result 1: Improved Access to Water and Sanitation

As mentioned, while access to water is quite high, the quality of water and continuous access to water are several problems in Ecuador, along with geographical variation of water access. This result will measure the overall impact that the work has on citizen’s access to safe water. It will increase the number of people gaining access to a safely managed drinking water service and sanitation as well as the number of people receiving improved service quality from an existing basic or safely managed drinking water service as a result of USG assistance.

Result 2: Increased Performance of Water and Sanitation Service Providers

As mentioned, there are several types of service providers (either public, private, or community-based organizations) in the water and sanitation sector. In many cases, systems are built and there is limited follow-up or capacity-building efforts post-construction on efficiency of operations or management. Performance of service providers are vital for ensuring the overall viability of their service models. Furthermore, customers are more likely to pay for water if they receive reliable services. When service providers are not able to fully recover operating costs, they are unable to guarantee sustainable access to quality services.

Interventions under this result may include actions to increase billing and collection efficiency;

reduction in non-revenue water losses; ensuring costs and staffing levels are appropriate; and exploring energy efficiency options for treatment and distribution systems.

4 The last section was taken from the Latin America and Caribbean Learning and Rapid Response’s (LACLEARN) Democratic Accountability in Local Service Delivery in Ecuador Desk Review, January 2023.

5 https://biblioteca.avina.net/product-tag/fortalecimiento-de-capacidades/ https://biblioteca.avina.net/product-tag/fortalecimiento-de-capacidades/

Result 3: Increased Governance of and Access to Finance for Water and Sanitation Service Providers

Once service providers have exhausted their opportunities to increase their performance and operational cost-recovery has still not been achieved, a tariff increase may be required to put the service provider on a sound footing for sustainable service provision. This is a delicate process between users and service providers which needs to be based on quality service provision, the ability of customers to pay and service to be conducted within a clear, transparent, and accountable governance framework.

Beyond tariff modifications, financial interventions should focus on small investments that either expand the customer base for increased revenues or result in performance improvements that generate cost savings, both of which may be possible to finance with small local commercial bank loans, if the investment pay-back periods are sufficiently short enough for the prevailing interest rates.

Additionally, given that water and sanitation are public services, communication and coordination with municipal governments are important. The Activity should focus on increased productive dialogue between municipal governments and service providers. The Activity should also increase citizen participation in the management of water and ensure transparency and accountability of service providers.

Result 4: Established Last Mile Connection Fund to Expand the Customer Base of Well Performing Service Providers

Once service providers are approaching operational cost-recovery and performing relatively well, the focus should shift towards expanding the customer base via distribution system extensions and last-mile household connections. This result focuses on expanding services and may be achieved with full or partial subsidies to encourage the rapid expansion of household connections. This may be accomplished by removing one-time connection fees or reducing the connection cost barriers for future customers. This can be done through a payment for results scheme that utilizes a grant fund to subsidize connection fees and associated costs.

At the end of the period of performance, the participating municipalities must measurably demonstrate the following results (disaggregated by women and Indigenous populations when possible):

i. Objective 1: More effective and accountable local governance o Percent increase of service delivery systems enhanced;

o Number of people actively participating in governance decision making based on improved Information systems within local government;

o Number of municipalities that have increased their own-source revenue;

o Number of participants in municipal governance training carried out with USG assistance to increase efficiencies in municipal services delivery;

o Number of persons trained with USG assistance to advance outcomes consistent with gender equality or female empowerment through their roles in public or private sector institutions or organizations;

o Number of public financial management systems enhanced;

o Percent increase of tax and fee collections based on system upgrades;

o Number of women elected and municipal officials with increased capacity on public management;

o Number of women community leaders demonstrating increased leadership in policy and decision making.

o Number of legal instruments drafted, proposed, or adopted with USG assistance designed to promote gender equality or non-discrimination against women or girls at the national or sub-national level (GNDR-1) o Number of municipalities that have improved the citizen perception of at least one service delivery;

o Number of people served by increased investment in service delivery per participating municipality;

o Percent increase of local government capacities to deliver municipal services.

ii. Objective 2: Improved Water and Sanitation Services o HL.8.1-2 Number of people gaining access to a safely managed drinking water service;

o HL.8.1-3 Number of people receiving improved service quality from an existing basic or safely managed drinking water service as a result of USG assistance (i.e., existing access);

o HL.8.3-3 Number of water and sanitation sector institutions strengthened to manage water resources or improve water supply and sanitation services as a result of USG assistance;

o HL.8.4-1 Value of new funding mobilized to the water and sanitation sectors as a result of USG assistance;

o Number of water service providers documenting cost recovery due to Activity intervention.

C.7 GENERAL ORGANIZING AND CROSS-CUTTING PRINCIPLES

The Activity must adhere to the following principles:

● Adopt a demand-driven approach to identify public services improvement opportunities under Objective 3 in addition to the water and sanitation component, which is a required area of work as stated in Objective 2.

● Incorporate the needed mechanisms to consult with the municipal government, civil society, and Indigenous communities to identify the proposed areas of work.

● All construction must be done by Ecuadorian firms. The expertise is in Ecuador and the Activity needs to make effective use of design/oversight Agency solutions, just not for the construction itself, that is almost "earmarked" for Ecuadorian businesses. All work will be done following USAID’s preferred approach. Construction is explained more in depth in Section C.7.4 in the WADI II contracts, hereby incorporated by reference to this TO.

Construction must not go beyond 40% of the estimated cost for water and sanitation funding. Up to $10 million of the TEC is estimated for construction.

● Private Sector Engagement is paramount, and as such should be mainstreamed in all aspects of the Activity. The Activity must strive to establish strategic partnerships with the private sector to co-finance, co-design, or co-implement solutions.

● Build capacity of local governments through coordination with existing stakeholders at the national and local levels. When appropriate, the contractor must leverage, and not replicate, existing capacity building resources and mechanisms, such as training by the Ministry of Finance or by the National Association of Municipalities (AME), to achieve the Activity’s objectives.

● Leverage existing training resources and efforts that have been undertaken through national programs including the National Council of Competencies.

● Consider how this intervention will improve the following services: water and sanitation, digital connectivity, nutrition, education, and economic reactivation.

● Be results oriented and foster effective partnerships that will last beyond the life of the Activity; in other words, sustainability of results and continuation of effective interventions must be mainstreamed throughout the Activity’s approach.

● Grants under Contract (GUCs): GUCs will be an important portion of the Activity. Please refer to Section H.26 in the WADI II contracts for grants under contract requirements. The purpose of grants under contract for this Activity is to prioritize local solutions including the hiring of local institutions and organizations that can implement the work plan and deliver expected results. Partners may include non-governmental organizations (non-profits or for-profits), universities, public international organizations, private sector, community organizations, and private foundations in Ecuador. A key pillar of the GUC component is also to provide technical and capacity building support to relevant local organizations. The contractor will work with the local entity to build their capacity toward managing direct partnerships with USAID in the future, to increase the pool of local partners for future USAID programming. GUCs cannot include architect and engineering, design, or construction services as defined in the Brooks Act and FAR Part 2 and Part 36.

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