DEVIDA_Final_RFP.pdf

U.S. Agency for International Development

USAID/Peru, Regional Office of Acquisition and Assistance (ROAA) Avenida La Encalada, cuadra 17

Monterrico – Surco Lima 33, Peru

Issuance Date: December 22, 2017 Questions Due Date: January 16, 2018 Questions Due Time: 9:00 a.m., Lima time Closing Date: February 28, 2018 Closing Time: 4:00 p.m., Lima time

Subject: Request for Proposals (RFP) No. 72052718R00002 Institutional Strengthening Partnership for DEVIDA

The United States Agency for International Development (USAID) is seeking proposals from U.S. or non-U.S. non-profit or for-profit organizations to achieve the objectives set forth in the attached Request for Proposals (RFP). USAID anticipates awarding one cost-plus-fixed-fee (CPFF) type term form contract with a period of performance of 5 years. The North American Industry Classification System (NAICS) code for this acquisition is 541990. The authorized geographic code is 937.

This procurement will be conducted under full and open competition procedures, pursuant to Part 15 of the Federal Acquisition Regulation (FAR) (48 CFR Chapter 1). Please refer to Section L for information regarding proposal requirements. Offerors should take into account 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 on the cover page. Faxed proposals are not acceptable, nor will they be reviewed or evaluated.

Section L of the RFP 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 will not be binding.

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

This RFP can be viewed and downloaded from www.fedbizopps.gov. USAID bears no responsibility for data errors resulting from transmission or conversion processes. Further, be aware that amendments to solicitations are occasionally issued and will be posted on the same website from which you downloaded the solicitation. USAID advises to regularly check the above website for amendments.

SOLICITATION, OFFER AND AWARD

1. THIS CONTRACT IS A RATED

ORDER UNDER DPAS (15 CFR 700)

RATING PAGE OF PAGES

1 195

2. CONTRACT NUMBER 3. SOLICITATION NUMBER

72052718R00002

4. TYPE OF SOLICITATION

SEALED BID (IFB)

X NEGOTIATED (RFP)

5. DATE ISSUED

12/22/2017

6. REQUISITION/PURCHASE NUMBER

REQ-527-17-000060

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

Regional Office of Acquisition and Assistance (ROAA) USAID/Peru

DOS USAID

3230 Lima Place Washington, DC 20521-3230

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

SOLICITATION

9. Sealed offers in original and 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 depository located in Electronic Submissions Only – See Block 10, C and Section L until 1600 EST local time

(Hour) 2/28/2018

(Date) 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.

10. FOR

INFORMATION

CALL:

A. NAME

Rosario O. de Saldaña

B. TELEPHONE (NO COLLECT CALLS) C. E-MAIL ADDRESS

Limasolicitations@usaid.gov

AREA CODE

NUMBER

618-1434

EXT.

11. TABLE OF CONTENTS

(X) SEC. DESCRIPTION PAGE(S) (X) SEC. DESCRIPTION PAGE(S)

PART I - THE SCHEDULE PART II - CONTRACT CLAUSES

X A SOLICITATION/CONTRACT FORM 3 X I CONTRACT CLAUSES 67

X B SUPPLIES OR SERVICES AND PRICES/COSTS 8 PART III - LIST OF DOCUMENTS, EXHIBITS AND OTHER ATTACH.

X C DESCRIPTION/SPECS./WORK STATEMENT 12 X J LIST OF ATTACHMENTS 89

X D PACKAGING AND MARKING 27 PART IV - REPRESENTATIONS AND INSTRUCTIONS

X E INSPECTION AND ACCEPTANCE 28 X

K

REPRESENTATIONS, CERTIFICATIONS AND

OTHER STATEMENTS OF OFFERORS

X F DELIVERIES OR PERFORMANCE 29

X G CONTRACT ADMINISTRATION DATA 42 X L INSTRS., CONDS., AND NOTICES TO OFFERORS 107

X H SPECIAL CONTRACT REQUIREMENTS 45 X M EVALUATION FACTORS FOR AWARD 127

OFFER (Must be fully completed by offeror)

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

12. In compliance with the above, the undersigned agrees, if this offer is accepted within 180 calendar days (60 calendar days unless a different period is inserted 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 designated point(s), within the time specified in the schedule.

AWARD (To be completed by government)

19. ACCEPTED AS TO ITEMS NUMBERED

TBD

20. AMOUNT

TBD

21. ACCOUNTING AND APPROPRIATION

TBD

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

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

23. SUBMIT INVOICES TO ADDRESS SHOWN IN

(4 copies unless otherwise specified)

ITEM

24. ADMINISTERED BY (If other than Item 7) CODE 25. PAYMENT WILL BE MADE BY CODE

26. NAME OF CONTRACTING OFFICER (Type or print)

Jamala Ukwa

27. UNITED STATES OF AMERICA

(Signature of Contracting Officer)

28. AWARD DATE

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

AUTHORIZED FOR LOCAL REPRODUCTION

Previous edition is unusable

STANDARD FORM 33 (Rev. 9-97)

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

13. DISCOUNT FOR PROMPT PAYMENT

(See Section I, Clause No. 52.232.8)

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

14. ACKNOWLEDGEMENT OF AMENDMENTS

(The offeror acknowledges receipt of amendments to the SOLICITATION for offerors and related documents numbered and dated):

AMENDMENT NO. DATE AMENDMENT NO. DATE

15A. NAME

AND

ADDRESS

OF

OFFEROR

CODE

FACILITY 16. NAME AND TITLE OF PERSON AUTHORIZED TO SIGN OFFER

(Type or print)

15B. TELEPHONE NUMBER 15C. CHECK IF REMITTANCE ADDRESS

IS DIFFERENT FROM ABOVE - ENTER

SUCH ADDRESS IN SCHEDULE.

17. SIGNATURE 18. OFFER DATE

AREA CODE NUMBER EXT.

Solicitation No. 72052718R00002

Table of Contents

SECTION B - SUPPLIES OR SERVICES AND PRICE/COSTS

B.1 PURPOSE

B.2 CONTRACT TYPE

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

B.4 PRICE SCHEDULE

B.5 INDIRECT COST

B.6 CEILING ON INDIRECT COST RATES

B.7 COST REIMBURSABLE

B.8 PAYMENT OF FIXED FEE

B.9 MULTI-YEAR CONTRACT

SECTION C – DESCRIPTION / SPECIFICATIONS / STATEMENT OF WORK

C.1 TITLE OF ACTIVITY

C.2 INTRODUCTION

C.3 BACKGROUND

C.4 PURPOSE

C.5 OBJECTIVES

C.6 EXPECTED RESULTS

C.7 OTHER REQUIREMENTS

SECTION D - PACKAGING AND MARKING

D.1 AIDAR 752.7009 MARKING (JAN1993)

D.2 IMPLEMENTATION PLAN AND MARKING PLAN

SECTION E - INSPECTION AND ACCEPTANCE

E.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE .. 23

E2. INSPECTION AND ACCEPTANCE/RESPONSIBLE OFFICIAL

SECTION F - DELIVERIES OR PERFORMANCE

F.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE . 24

F.2 PERFORMANCE PERIOD

F.3 PLACE OF PERFORMANCE

F.4 PERFORMANCE STANDARDS

F.5 KEY PERSONNEL

F.6 REPORTS AND DELIVERABLES OR OUTPUTS

F.7 AUTHORIZED WORK DAY/WEEK

SECTION G - CONTRACT ADMINISTRATION DATA

G.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE

G.2 CONTRACTING OFFICER

G.3 CONTRACTING OFFICER’S REPRESENTATIVE (COR)

G.4 CONTRACTOR’S PRIMARY POINT OF CONTACT

G.5 PAYING OFFICE

G.6 ACCOUNTING AND APPROPRIATION DATA

G.7 TECHNICAL DIRECTION/RELATIONSHIP WITH USAID

SECTION H - SPECIAL CONTRACT REQUIREMENTS

H.1 USAID-FINANCED THIRD-PARTY WEB SITES (NOV 2017)

H.2 SUBMISSION OF DATASETS TO THE DEVELOPMENT DATA LIBRARY (DDL)

(OCTOBER 2014)

H.3 ADDITIONAL REQUIREMENTS FOR PERSONNEL COMPENSATION

H.4 AUTHORIZED GEOGRAPHIC CODE

H.5 DEFENSE BASE ACT (DBA) INSURANCE

H.6 LOGISTIC SUPPORT

H.7 LANGUAGE REQUIREMENTS

H.8 EXECUTIVE ORDER ON TERRORISM FINANCING (FEB 2002)

H.9 FOREIGN GOVERNMENT DELEGATIONS TO INTERNATIONAL

CONFERENCES (JAN 2002)

H.10. PROHIBITION OF ASSISTANCE TO DRUG TRAFFICKERS

H.11 NONEXPENDABLE PROPERTY PURCHASES AND INFORMATION

TECHNOLOGY RESOURCES

H.12 TITLE TO AND CARE OF PROPERTY

H.13 MANAGEMENT OF INFORMATION TECHNOLOGY RESOURCES

H.14 ENVIRONMENTAL COMPLIANCE

H.15 EXCHANGE VISITORS AND TRAINING

H.16 COMPLIANCE WITH SECTION 508 OF THE REHABILITATION ACT OF 1973,

AS AMENDED

H.17 ELECTRONIC PAYMENTS SYSTEM

H.18 RESTRICTIONS AGAINST DISCLOSURE (MAY 2016)

H.19 ELECTRONIC AND INFORMATION TECHNOLOGY ACCESSIBILITY (MAY

2016)

H.20 CLOUD COMPUTING (MAY 2016)

H.21 INHERENTLY GOVERNMENTAL AND CLOSELY ASSOCIATED FUNCTIONS

H.22 SUBCONTRACTING PLAN AND THE SF 294 – SUBCONTRACTING REPORT

FOR INDIVIDUAL CONTRACTS AND SF 295 – SUMMARY CONTRACTING

REPORT

PART II - CONTRACT CLAUSES

SECTION I - CONTRACT CLAUSES

I.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE . 58

I.2 52.204-1 APPROVAL OF CONTRACT (DEC 1989)

I.3 52.222-35 EQUAL OPPORTUNITY FOR VETERANS (OCT 2015)

I.4 52.222-36 EQUAL OPPORTUNITY FOR WORKERS WITH DISABILITIES (JUL

2014)

I.5 52.222-50 COMBATING TRAFFICKING IN PERSONS (MAR 2015)

I.6 52.247-67 SUBMISSION OF TRANSPORTATION DOCUMENTS FOR AUDIT

(FEB 2006)

I.7 52.252-2 CLAUSES INCORPORATED BY REFERENCE (FEB 1998)

I.8 AIDAR 752.229-71 REPORTING OF FOREIGN TAXES (JULY 2007)

I.9 AIDAR 752.231-71 SALARY SUPPLEMENTS FOR HOST GOVERNMENT

EMPLOYEES (MAR 2015)

I.10 AIDAR 752.7005 SUBMISSION REQUIREMENTS FOR DEVELOPMENT

EXPERIENCE DOCUMENTS (SEP 2013)

1.11 AIDAR 752.7027 PERSONNEL (DEC 1990)

I.12 AIDAR 752.7032 INTERNATIONAL TRAVEL APPROVAL AND NOTIFICATION

REQUIREMENTS (APR 2014)

I.13 AIDAR 752.7034 ACKNOWLEDGMENT AND DISCLAIMER (DEC 1991)

1.14 AIDAR 752.7101 VOLUNTARY POPULATION PLANNING ACTIVITIES (JUNE

2008)

PART III – LIST OF DOCUMENTS, EXHIBITS AND OTHER ATTACHMENTS

SECTION J - LIST OF ATTACHMENTS

SECTION K - REPRESENTATIONS, CERTIFICATIONS AND OTHER STATEMENTS

OF THE OFFEROR

K.1 NOTICE LISTING SOLICITATION PROVISIONS INCORPORATED BY

REFERENCE

K.3 52.209-5 CERTIFICATION REGARDING RESPONSIBILITY MATTERS (OCT

2015)

K.4 52.209-7 INFORMATION REGARDING RESPONSIBILITY MATTERS (JUL 2013)

K.5 52.209-11 REPRESENTATION BY CORPORATIONS REGARDING

DELINQUENT TAX LIABILITY OR A FELONY CONVICTION UNDER ANY

FEDERAL LAW (FEB 2016)

K.6 52.222-22 PREVIOUS CONTRACTS AND COMPLIANCE REPORTS (FEB 1999) 87

K.7 52.222-25 AFFIRMATIVE ACTION COMPLIANCE (APR 1984)

K.8 52.227-15 REPRESENTATION OF LIMITED RIGHTS DATA AND RESTRICTED

COMPUTER SOFTWARE (DEC 2007)

K.9 52.230-1 COST ACCOUNTING STANDARDS NOTICES AND CERTIFICATION

(OCT 2015)

K.10 52.230-7 PROPOSAL DISCLOSURE--COST ACCOUNTING PRACTICE

CHANGES (APR 2005)

K.11 INSURANCE - IMMUNITY FROM TORT LIABILITY

K.12 AUTHORIZED NEGOTIATORS

K.13 SIGNATURE

SECTION L – INSTRUCTIONS, CONDITIONS, AND NOTICES TO OFFERORS OR

RESPONDENTS

L.1 NOTICE LISTING SOLICITATION PROVISIONS INCORPORATED BY

REFERENCE

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

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

L.4. GENERAL INSTRUCTIONS

L.5. DELIVERY INSTRUCTIONS

L.6. INSTRUCTIONS FOR THE PREPARATION OF THE TECHNICAL PROPOSAL . 97

L.7 INSTRUCTIONS FOR THE PREPARATION OF THE COST/BUSINESS

PROPOSAL

SECTION M - EVALUATION FACTORS FOR AWARD

M.1 NOTICE LISTING SOLICITATION PROVISIONS INCORPORATED BY

REFERENCE

M.2 GENERAL INFORMATION

M.3 TECHNICAL EVALUATION CRITERIA

M.4 COST/PRICE EVALUATION

M.5 DETERMINATION OF THE COMPETITIVE RANGE

M.6 SOURCE SELECTION

M.7 CONTRACTING WITH SMALL BUSINESS CONCERNS

ATTACHMENT 1 – BRANDING STRATEGY

ATTACHMENT 2 – INITIAL ENVIRONMENTAL EXAMINATION INFORMATION

ATTACHMENT 3 - IDENTIFICATION OF PRINCIPAL GEOGRAPHIC CODE

NUMBER

ATTACHMENT 4 – CONTRACTOR PAST PERFORMANCE INFORMATION

ATTACHMENT 5 – CERTIFICATION REGARDING TRAFFICKING IN PERSONS

COMPLIANCE PLAN

ATTACHMENT 6 – SF LLL - DISCLOSURE OF LOBBYING ACTIVITIES

ATTACHMENT 7 – LIST OF ACRONYMS

ATTACHMENT 8 – CONTRACTOR BIOGRAPHICAL DATA SHEET

ATTACHMENT 9 – RECENT USAID AND RELATED REPORTS ON ALTERNATIVE

DEVELOPMENT THAT CAN BE DOWNLOADED FROM DEC

SECTION B - SUPPLIES OR SERVICES AND PRICE/COSTS

B.1 PURPOSE

The purpose of this contract is to provide services described in the Statement of Work (SOW) specified in Section C to implement the activity entitled “Institutional Strengthening Partnership for DEVIDA”.

B.2 CONTRACT TYPE

This is a Cost-Plus-Fixed-Fee (CPFF) completion contract resulting from this solicitation.

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

(a) The estimated cost for the performance of the work required hereunder for the Base

Contract, 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].

(b) Within the estimated cost plus fixed fee (if any) specified in paragraph (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 must not exceed the aforesaid obligated amount nor will the U.S. Government (USG) be responsible for costs incurred should the Contractor do so.

(c) Funds obligated hereunder are anticipated to be sufficient through [TBD].

B.4 PRICE SCHEDULE

Description Total USD$

Direct Costs

Indirect Costs

Fixed Fee

Total Estimated Cost Plus Fixed Fee

B.5 INDIRECT COST

The contract clause entitled “Allowable Cost and Payment (JUN 2013)”, FAR Subpart 52.216-7, specifies that the indirect cost rates shall be established for each of the Contractor’s accounting periods which apply to this contract. Pending establishment of revised provisional or final indirect cost rates, allowable indirect costs shall be reimbursed on the basis of the following negotiated provisional or predetermined rates and the appropriate bases:

Description Rate Base Type Period

[TBD] [TBD] 1/ 1/ 1/

[TBD] [TBD] 2/ 2/ 2/

[TBD] [TBD] 3/ 3/ 3/

1/ Base of Application Type of Rate:

Period:

2/ Base of

Application:

3/ Base of

Application:

B.6 CEILING ON INDIRECT COST RATES

Ceilings are not applicable to Small Businesses.

(a) For each of the Contractor’s accounting periods during the term of this contract, the parties agree as follows:

(1) The distribution base for establishment of final overhead rates is .

(2) The distribution base for establishment of final G&A rates is .

(b) The Contractor will make no change in its established method of classifying or allocating indirect costs without the prior written approval of the contracting officer.

(c) Reimbursement for indirect costs will be at final negotiated rates, but not in excess of the following ceiling rates for each fiscal year.

Indirect Cost Type FY 17 FY 18 FY 19 FY20 FY 21 FY 22

(contractor’s FY)

1. [TBD]

2. [TBD]

3. [TBD]

(d) The government will not be obligated to pay any additional amount on account of indirect costs above the ceiling rates established in the contract. This advance understanding will not change any monetary ceiling, cost limitation, or obligation established in the contract.

B.7 COST REIMBURSABLE

Allowable costs shall be limited to reasonable, allocable and necessary costs determined in accordance with FAR 52.216-7, Allowable Cost and Payment, FAR 52.216-8, Fixed Fee, if applicable, and AIDAR 752.7003, Documentation for Payment.

B.8 PAYMENT OF FIXED FEE

Payment of fixed fee will be made upon receipt of a proper invoice and shall directly correspond to the percentage of allowable costs being paid. In accordance with FAR 52-216-8, Fixed Fee, the CO will withhold 15% of the total fee or $100,000, whichever is less until the required awards conditions under the reference clause have been met.

B.9 MULTI-YEAR CONTRACT

This contract is considered non-severable, and is therefore a multi-year contract as defined in FAR 17.103. Consequently, this contract is subject to the requirements of FAR 17.106.

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

Therefore, the cancellation ceiling established pursuant to FAR 17.106-1(c)(1) for each program year is $0.00.

[END OF SECTION B]

Solicitation No. SOL-527-17-000008

SECTION C – DESCRIPTION / SPECIFICATIONS / STATEMENT OF WORK

C.1 TITLE OF ACTIVITY

Institutional Strengthening Partnership for DEVIDA (hereafter also referred to as the “Activity”).

C.2 INTRODUCTION

The Institutional Strengthening Partnership for DEVIDA (hereafter referred to as the “Activity”) will be USAID’s principal mechanism for supporting Peruvian institutions with technical assistance—particularly the Comisión Nacional para el Desarrollo y la Vida Sin Drogas (DEVIDA)—to reduce poverty and sustain reductions of coca in the Peruvian Amazon. The Activity will strengthen DEVIDA so that hundreds of recently eradicated communities receive timely and effective support needed to give up coca farming. The Activity will directly support DEVIDA to achieve its institutional development goals and deliver more effective post-eradication assistance.1 Finally, the Activity will work alongside DEVIDA in assisting sub-national governments to respond to the citizen demand for State services in post-eradication areas.

C.3 BACKGROUND

In Peru, coca cultivation exacerbates the poverty trap. Families that grow coca do so because they are isolated and live in poverty. Nevertheless, experience shows that growing coca ensures they remain insecure and poor. In recent years, Peru’s Monzón and VRAEM valleys have been home to the country’s highest concentrations of high-yielding coca.2 In the Monzón, in 2013, 86 percent of people lived in poverty. There, one in ten adults has no education at all. Only about half of all households have access to public water and appropriate sanitation systems. In the VRAEM, poverty rates are six times the national average and 45 percent of children under the age of five are chronically malnourished. Despite coca’s “high value,” poverty reduction has taken place in areas that experienced some of the most dramatic declines in coca, suggesting that coca-derived profits inhibit human development.

Indeed, the Human Development Index (HDI), which factors in health, education, and economic

1 “Post-eradication assistance” includes organizing and strengthening community groups and farmer associations in recently eradicated communities, as well as planting and maintaining cacao, coffee, banana, bolaina (a Peruvian timber tree), and other tree species as part of environmentally sustainable and income-generating agroforestry systems.

Interventions at this stage of assistance—in the first years subsequent to eradication – typically follow a “public goods” approach to instill greater hope and confidence in the role of the State. These interventions include social and community mobilization efforts immediately after eradication, alternative crop installation, and technical assistance to farmers and communities to improve incomes and access to government services. As the conditions for private sector investment improve, assistance shifts to “consolidation”—where the focus is on increasing productivity, market access and long-term income growth. These terms—“post-eradication” and “consolidation” —are used to characterize the alternative development continuum in coca growing areas.

2 The VRAEM—or Apurimac, Ene, and Mantaro River Valleys—is a rugged, lush region of Peru, sandwiched between the Andes Mountains and the Amazon. From 2001 to 2014, total coca cultivation in Peru was reduced, but cultivation in the VRAEM increased by 50 percent and now accounts for about 40 percent of all coca cropland in Peru.

Moreover, it has become a highly productive region. The VRAEM produces roughly two-thirds of all coca being grown in Peru, according to the United Nations Office of Drugs and Crime (UNODC).

status, is 60 percent lower in rural districts where coca is prevalent than in those areas where it is not.3 Once dominated by coca, San Martin experienced a significant reduction in poverty over the last decade—from 52 percent in 2004 to 29 percent today.

USAID’s “San Martin model,” which included 15 years of direct Alternative Development (AD) assistance, led to greater security and prosperity in hundreds of communities where narco-trafficking once flourished. However, given Peru’s economic trajectory and improving capacity, sustaining AD assistance through traditional donor-driven means is not appropriate. Peru’s growth—driven largely by extractive industries and favorable commodity prices—has filled the Government of Peru’s (GOP) treasury. Yet, resources are not reaching rural, isolated communities. Here, poverty—underpinned by insecurity, isolation, and inadequate public services—provides fertile ground for coca cultivation. Over the next five years, USAID seeks to strengthen key institutions and rural markets so that public and private resources are used more strategically, efficiently, and give Peru’s rural poor a sustainable “alternative.”

The GOP has taken increasingly greater responsibility for AD efforts over the past five years.

Together with USAID, DEVIDA has assisted over 34,000 families to increase their incomes through support to over 56,000 hectares of cacao and coffee. Progress is clearest with cacao.

Winner of countless awards, Peru has positioned itself among the world’s highest quality cacao producers. Still, private investment is nascent and margins for “fine and aromatic” cacao have not been fully realized. Furthermore, incomes are overexposed to downward trends in cacao prices.

USAID and DEVIDA investments in coffee have been more marginal, and Peru remains far behind its competitors in recovering from the 2012 epidemic of leaf rust.

Institutionally, over the past five years, DEVIDA has had a fairly robust and stable budget, and its capacity to spend that budget has improved. DEVIDA faces challenges, however, in the areas of planning, procurement, and coordination among GOP agencies. Addressing these challenges is key to enhancing the quality and effectiveness of DEVIDA’s expenditures.4 Other important GOP investments in coca growing areas—particularly public infrastructure and social services— remains out of reach for local governments or constrained by: (1) convoluted funding systems, (2) incomplete decentralization, and (3) the low capacity or inability of local and regional governments to plan, budget for, and execute basic services for their citizenry.

C.4 PURPOSE

3 Resa, Carlos. UNODC Peru-Ecuador Analytical Brief, in collaboration with the Department of Economic Structure and Economy for Development, Autonomous University of Madrid— “Coca Crops and Human Development.”

February 2014.

4 As highlighted in a USAID-commissioned assessment of DEVIDA’s institutional capacity (attached as Annex 1), DEVIDA has two principal roles as Peru’s chief counter-narcotics agency: (1) a coordination or “rector” role among GOP entities in coca-growing areas, and (2) an implementation role whereby DEVIDA provides assistance to communities and farmers subsequent to eradication. DEVIDA’s role as an implementer is relatively new. Until 2013, the agency was largely a coordinating authority with a rather limited mandate. With USAID assistance, this has changed. DEVIDA now has greater stature as both a coordinator and provider of GOP services. With this shift, DEVIDA has grown tremendously. The number of staff increased from 268 in 2011 to over 700 in 2017. DEVIDA’s AD budget was just $4 million in 2010 and $32 million in 2017. In 2016, DEVIDA spent 98 percent of the allocated budget. Its expenditures are significant, considering its past struggles to spend just a fraction of its budget. Still, DEVIDA must now enter into a new phase, from focusing on spending, to effectiveness, impact, and sustainability.

The purpose of the Activity is to improve public investment and household incomes in post-eradication areas. The contractor will achieve this purpose by strengthening Peruvian institutions—particularly DEVIDA, but also local governments and community-based organizations—so that they are more capable of delivering the help those citizens in post-eradication areas need to give up coca cultivation. Through improved national and local institutional effectiveness and public investment, the contractor will establish the basic conditions for licit and environmentally sustainable development to take hold.

C.5 OBJECTIVES

The contractor will implement a set of activities to achieve the following objectives:

1. Strengthen DEVIDA’s capacity to more effectively deliver post-eradication assistance

(without continued USAID support);

2. Organize and empower post eradication communities to define, advocate for, and implement social and economic development priorities; and

3. Improve the ability of national and sub-national governments to respond to the demand for government services and facilitate the conditions for local economic development in targeted areas.

These objectives correspond to the three contract components described below. The three components are inherently interrelated. USAID does not intend for them to be independent or mutually exclusive of one another. Rather, the intent is to provide the logical framework through which to strengthen Peruvian institutions and improve public investment.

C.5.1 (Component 1): DEVIDA more effectively and sustainably delivers post-eradication assistance.

The Government of Peru’s National Strategy for the Fight Against Drugs (2017-2021) aims to reduce the area of coca cultivation by half.5 To accomplish this ambitious objective, DEVIDA must be able to deliver post-eradication assistance in all its phases, under its own budget and authorities, and facilitate State presence. The contractor will help DEVIDA to achieve its institutional goals in order to effectively carry out this mandate.

The Contractor will implement a strategy to achieve each of the below five institutional goals.6 Technical assistance under this component will directly support DEVIDA. Under this component, absent a compelling reason, USAID does not anticipate direct Activity assistance to farmers or procurement of agricultural inputs.

Institutional Goal #1: DEVIDA’s institutional progress, as well as its post-eradication progress, is effectively monitored and informs budgetary and programmatic decisions. The contractor will improve DEVIDA’s capacity to measure and evaluate its institutional and post-

5 The strategy can be found here: http://www.devida.gob.pe/estrategia-nacional-de-lucha-contra-las-drogas-2017- 2021/.

6 These goals correspond with key areas that DEVIDA has identified for USAID technical assistance. They also correspond with areas outlined in DEVIDA’s Plan Estratégico Institucional (2017-2019):

http://www.devida.gob.pe/wp-content/uploads/2017/01/PLAN-ESTRATEGICO-INSTITUCIONAL-2017-2019.pdf.

eradication advances. The contractor will develop meaningful indicators to measure DEVIDA’s progress in areas such as procurement, strategic planning, and budget execution, as well as in operational areas such as community organizing, inter-governmental coordination, and other assistance delivery.7 The contractor will collect and compile data from key indicators, in cooperation with DEVIDA leadership, and assemble an aggregate index that tracks overall organizational performance. The contractor will assist DEVIDA in increasing its capacity to evaluate institutional progress, including the reasons behind increases or decreases in coca cultivation, and increases or decreases in licit income. DEVIDA will develop the capacity to track and understand where it falls short, and where it excels, and why.

Institutional Goal #2: DEVIDA procures goods and services efficiently, particularly for planting alternative crops and related inputs. The contractor will assist DEVIDA to decentralize procurement functions and authority to field offices, as well as to assist these field offices to build their skills and systems to effectively procure goods and services. DEVIDA suffers, for example, from an uneven track record and capacity to deliver inputs to farmers seeking to grow alternative crops and an inefficient and ineffective procurement system.

Improving this capacity may require analysis of the underpinning institutional and legal framework. The contractor will help DEVIDA field offices to contract for goods and services so that beneficiaries secure, in a timely fashion, the inputs they need to facilitate their transition from illicit to licit crops.

Institutional Goal #3: DEVIDA strategic planning and budgeting aligned with the National Strategy for the Fight Against Drugs. To halve the number of hectares of coca in Peru, DEVIDA must align its post-eradication plans and budget with eradication operations. And, planning and budgeting must be agile enough for DEVIDA to successfully decentralize its procurement and field operations. The National Strategy calls for the installation of 6,000 new hectares of licit crops and the enrollment of 4,000 new families in post-eradication assistance each year. Uncertainty exists, however, over the geographic placement of this assistance and alignment with eradication. The National Strategy calls for the annual eradication of 25,000 hectares. Many of these hectares will likely be in areas that are not prepared for post-eradication assistance.

Indeed, with such a high-hectare target, eradication often takes place in areas where there is insufficient population density or infrastructure for post-eradication assistance. Effective planning and budgeting for field offices to deliver post-eradication assistance in areas where post-eradication is viable, is therefore contingent upon consistent coordination between DEVIDA and CORAH (Proyecto Especial de Control y Reducción de Cultivos Ilegales en el Alto Huallaga), the GOP’s special eradication project/entity under the Ministry of Interior. The contractor must synchronize eradication and post-eradication efforts, so that field offices have the resources needed to deliver timely and effective assistance.

Institutional Development Goal #4: DEVIDA employees are skilled and equipped to deliver timely post-eradication technical assistance and services. Any work in this area should focus on strengthening DEVIDA’s capacity to provide post-eradication assistance on its own. To meet this institutional goal, contractor will conduct training and mentoring of DEVIDA staff, with a focus on training staff in field offices. The contractor will provide training that improves their performance in a number of areas, including gender, environment, procurement, community

7 Offerors are required to submit a Monitoring, Evaluation, and Learning Plan, as described in Section C.5, which will include these indicators.

development, marketing, financial services, agronomy, monitoring and evaluation, and communications. DEVIDA will define its training needs annually. Most of the training will be conducted in the field in a “learning-by-doing” manner, such as through workshops on the installation of agroforestry systems.

Institutional Development Goal #5: DEVIDA formulates and improves public policies associated with alternative development. Certain policy reforms or changes to regulatory procedures may be necessary to adequately address some of the issues described above. Types of policy reform measures include: identifying additional disincentives for coca growers beyond eradication, including fines; assisting DEVIDA to develop post-eradication plans for new areas of intervention; identifying more strategic and cost-effective ways to eradicate coca; evaluating policy options to address the problem of migratory coca farming and the corollary “balloon effect;” examining the costs and benefits of promoting one alternative crop, or even tree variety, over another; and analyzing, upon request, policies and laws that require reform or refinement.

The contractor will not undertake any of the research or analysis absent a specific request from the Peruvian Government agency.

C.5.2 (Component 2): Communities organized to define, advocate for, and implement social and economic development priorities.

Narco-traffickers did not identify coca-growing areas out of happenstance. They purposefully selected areas that are isolated, poor, disempowered, and have minimal State presence. DEVIDA support communities that pledge to leave coca to get organized, identify their priorities, and help them realize those priorities. Alongside DEVIDA, will provide help to communities at the caserío, or village level, to organize themselves into Juntas Vecinales Comunales (JVCs). To date, approximately 300 such JVCs have been established, which have leveraged more than $3 million in GOP funds for schools, health services, water, roads, and economic opportunities have been supported. More than just bringing basic services, these committees form the basis through which other groups, including producer groups, water boards, and savings groups, come together to drive and sustain progress. Perhaps most fundamental, members of a community begin to trust one another, and cooperate to achieve common goals. This “social capital” is important to not only put communities on a licit path, but to generate the peer pressure and empowerment necessary to sustain their licit trajectory.8 Accordingly, the contractor will look for opportunities to build social capital—through support to JVCs and/or other relevant community organizations.

The contractor will implement a strategy that positions DEVIDA to empower and incentivize communities, including women and youth, to meaningfully engage in and benefit from the alternative development process. While USAID believes that the JVC has been an effective mechanism to engage communities in this process, it is not the only mechanism, and certainly not an end in itself. Many communities—even those with JVCs—feel isolated from their elected representatives and express concerns about being “abandoned” by the State. Activities under this component may include:

8 For more information on the importance of building social capital, see: John Ellis, Revisiting Social Capital (and What to Do About It), USAID Frontiers in Development, Ending Extreme Poverty Edition, 2014; Michael Woolcock, Social Capital: Implications for Development Theory, Research and Policy, World Bank, 1999, p. 3; Francisco Herreros, The Problem of Forming Social Capital: Why Trust? Palgrave-Macmillan, 2004, p. 7.

Community relations building. DEVIDA should be able to effectively mentor and guide local communities in the formation of JVCs (or other community governance structures) and the preparation of development plans, in order to reinforce their commitments to refrain from coca cultivation. In the past, much of this work fell to USAID’s implementer.

Connecting JVCs and/or other community governance structures to local governments.

Communities often report that they are disconnected from their elected leaders. The contractor will assist DEVIDA to ensure that community-level plans and priorities are incorporated into local, regional, and national development plans.

Improving asociatividad. Organization and collective action among farmers and community members—otherwise referred to in Spanish as asociatividad—is critical to enhancing access to markets, as well as spurring the organization needed to define community priorities and bring about change. According to a 2015 study, only one out of every four small farmers in post-eradication areas belongs to some type of producer organization, and not more than one in six is part of a legally recognized association or cooperative.9 Such low rates of asociatividad prevent many farmers from selling their products with the volume that buyers demand, pushing down the prices paid for those products. The contractor will work with DEVIDA to address this problem, helping communities to organize themselves around both social and economic ends.

Promoting off-farm employment opportunities through vocational training or other means.

In assisting DEVIDA to organize communities around both social and economic ends, the contractor must go beyond the farm and even agriculture-sector interventions. Off-farm enterprises, which are often small in scale, are generally not sufficient to lift a family out of poverty. They can be critical sources of income, however, especially during the post-eradication period when cacao and coffee harvests are years away. Off-farm activities add to and diversify cash flow for rural households, and in many cases increase women’s incomes and empowerment.10 The promotion of off-farm business and employment opportunities is also necessary to engage youth, who often do not perceive agriculture as a remunerative or prestigious profession. Accordingly, the contractor may work with DEVIDA at the community and/or municipal level to provide training that is directly linked with private sector labor needs, such as labor for large-scale infrastructure projects. Basic business training could be provided on a fee basis, and in ways that are connected to financial services and generate employment, particularly for young people.

Promoting private sector investment, and individual and communal access to financial services. While the appetite among private sector actors to invest in post-eradication areas is generally quite low, providing DEVIDA with the tools and know-how to engage with such actors will be important to ultimately transition communities out of poverty and away from coca cultivation. To this end, the contractor will enhance DEVIDA’s institutional knowledge and abilities associated with market development and “consolidation.” The contractor will empower

9 The same study points out that these figures are probably much lower if one considers that many of these organizations are ineffective, often due to weak leadership and/or low organizational capacity. See “Zonas de Post Erradicación: Consideraciones Entorno a la Asociatividad,” December 28, 2015. Attached as Annex 2.

10 In keeping USAID’s gender policy, the Activity will work to reduce gaps between men and women and to increase women’s participation in economic activities and decision-making processes. The Alternative Development Project’s gender approach and analysis is attached as Annex 3.

DEVIDA staff, for example, to connect former coca farmers with financial institutions and facilitate investment by private sector input suppliers and buyers in the value chains for licit crops, such as cacao and coffee. Most families in AD areas do not have access to financial services; however, credit and savings are of critical importance—particularly as incomes grow— to consolidate a strong, licit economy. The contractor will support DEVIDA to partner with financial institutions and organizations interested in expanding their markets and upgrading their services in AD areas (banks, cooperatives, savings and loan associations, micro-finance institutions, and/or cajas rurales).11 The contractor will also indirectly support efforts to improve financial literacy, so as to expand the use of these services. Finally, the contractor may guide DEVIDA to provide advisory services to entrepreneurs and businesses, helping to incorporate them into the formal financial system.

Promoting Social Inclusion. Technical assistance shall take into account differences in age, gender, and cultures and make special efforts to build capacity and provide benefits to all groups.

This includes identifying opportunities to integrate traditional knowledge into activities.

C.5.3 (Component 3): National and sub-national governments better respond to the demand for services and facilitate the conditions for local economic development in targeted areas.

In post-eradication areas, good mayors and regional leaders are trapped in a supply and demand problem. On the supply side, Peru’s new President ran on a platform of reducing poverty and increasing basic services—particularly water, health, and education —in isolated areas. And, his 2017 budget includes increases for such basic services. However, on the demand side, mayors and regional leaders are unable to navigate through a maze of national level “funds,” produce quality project proposals, or execute efficiently. This disconnect between supply and demand results in inadequate public investment and social services in poor, coca-growing areas.

The contractor will implement a strategy to link national-level initiatives with municipalities and communities to generate public investment and basic services in post-eradication areas.

The approach will support DEVIDA’s coordination role, bring public services to post-eradication areas, and ultimately increase citizen confidence in the State and reflect an appreciation of the roles and respective mandates of key national-level institutions, such as DEVIDA and the Ministry of Economy and Finance (MEF), in supporting regional and municipal governments to promote local economic development in targeted areas.12 The contractor will build the capacity of a select number of municipalities—in consultation with DEVIDA and the MEF—to carry out a strategic planning and development process that leads to greater public investment for filling social and economic gaps (i.e. education, health care, transportation, etc.).13 Through this process, the contractor will assist regional governments and municipalities to plan for and execute over

11 These services include those that would expand the use of Peru’s mobile payment system, or Billetera Móvil (BIM).

12 The World Bank defines local economic development as “a process by which public, business and non-governmental sector partners work collectively to create better conditions for economic growth and employment generation.” See, for example: http://siteresources.worldbank.org/INTLED/423069- 1099670772921/20738133/led_primer.pdf.

13 USAID is currently working with DEVIDA and the MEF to define the list of municipalities, though the Offeror should prepare to deliver assistance to approximately 20 municipalities in Huánuco, Ucayali, San Martín, and Pasco.

The exact number of municipalities is subject to available funding and other mechanisms through which USAID may choose to provide this support.

$100 million in GOP public investment.14

The contractor will identify gaps and improve municipal-level analysis and planning. The contractor will provide technical assistance to municipal governments to identify the priority social and economic gaps in their districts, as well as the issues or bottlenecks that they face in developing and executing plans to address those gaps. The contractor will guide the municipal governments to analyze their human resource constraints, their planning and budgeting and procurement processes, and their ability to generate own-source revenue and access national-level funds. Alongside DEVIDA, the contractor will assist these local governments to build their capacity to adequately plan for activities that close social and economic “gaps.” Such activities could include improvements to potable water systems, health centers, secondary and tertiary roads, or the construction of a marketplace. The contractor will also communicate with and assist civil society groups to oversee the appropriate use of funds and implementation of public investment projects. Analysis may be necessary throughout the life of the contract to identify and respond to bottlenecks in the systems that impede public investment in coca-growing areas.15

The contractor must prepare DEVIDA to take on this facilitation role and assist other district governments to develop long term strategic public investment plans in post-eradication areas.

C.6 EXPECTED RESULTS

Indicator Year 1 Year 2 Year 3 Year 4 Year 5 Total Objective: Improved public investment and household incomes in targeted areas Amount of public investment facilitated in targeted areas

$0 $15 million

$30 million

$50 million

$55 million

$150 million

Percentage of population centers in targeted areas with access to basic services (potable water, health, sanitation, education, electricity, roads)16

0% 10% 50% 80% 100% 100%

Average percentage change in incomes among targeted households in post-eradication areas17

6% 6% 6% 6% 6% 30%

Outcome 1: DEVIDA more effectively facilitates State presence and delivers post-

14 This number is illustrative. The MEF is planning to invest hundreds of millions of dollars in post-eradication areas over the next several years. The Peruvian Congress will approve the official numbers for multi-annual budgets in December 2017. USAID will help facilitate the execution of these resources.

15 The next municipal elections will occur in October 2018. Continuity—or a lack thereof —is among the biggest risks for a Project that aims to strengthen municipal governments. For this reason especially, the Project must strengthen systems and processes that will endure from one administration to the next.

16 The annual targets presented here are illustrative, but by the end of the Project USAID expects to achieve 100 percent coverage in basic services for the targeted population centers.

17 The six percent annual target is an average that will vary according to the throughput of new and existing households. By the end of Year 5, however, USAID and DEVIDA expect to see, at a minimum, a thirty percent average increase in incomes among targeted households in post-eradication areas.

eradication assistance DEVIDA institutional capacity index18

TBD TBD TBD TBD TBD TBD

Number of new households benefited by post-eradication activities in targeted areas

4,000 4,000 4,000 4,000 4,000 20,000

Number of new hectares facilitated through improved procurement of alternative crops19

6,000 6,000 6,000 6,000 6,000 30,000

Average yield of alternative crops assisted by DEVIDA (kg/ha)20

600 750 800 900 950 1,000

Value of financial services facilitated by DEVIDA

$3 million

$5 million

$6 million

$8 million

$8 million

$30 million

Percentage of population with positive perception of State services (including DEVIDA) in targeted areas21

40% 50% 60% 70% 80% 80%

Outcome 2: Communities organized to define, advocate for, and implement social and economic development priorities Percentage of targeted population centers with a JVC (or other community development organization) and approved Community Development plan

60% 70% 80% 90% 100% 100%

Value of funds secured for targeted JVCs22

$0 $2 million

$3 million

$5 million

$5 million

$15 million

Social capital level among post-eradication communities23

TBD TBD TBD TBD TBD TBD

Outcome 3: National and sub-national governments better respond to the demand for services and facilitate the conditions for local economic development in targeted areas Percentage of targeted municipalities with approved

60% 70% 80% 90% 100% 100%

18 In accordance with Section C.4.1 above, the Offeror will present a plan to develop an index indicator as a tool that DEVIDA owns and uses to improve its performance.

19 The contractor will not plant new crops directly, but rather assist DEVIDA to achieve its own planting targets. In addition to planted hectares, the Offeror will have to monitor its support to DEVIDA as it assists existing hectares of alternative crops.

20 The Contractor will support DEVIDA to establish a baseline for the average yield of hectares currently under assistance. For hectares that DEVIDA has assisted for five or more years, DEVIDA will focus on improving productivity to the point at which, after achieving a yield of 1,000 kilograms per hectare, DEVIDA is able to graduate farmers from direct assistance.

21 Forty percent is the current baseline as measured in DEVIDA’s annual survey.

22 This indicator will measure the amount of funds not just allocated to address JVC priorities, but also spent/implemented.

23 The contractor must establish meaningful indicator or set of indicators to measure social capital.

GOP planning documents Value of funds secured for targeted municipalities24

$0 $13 million

$27 million

$45 million

$50 million

$135 million

C.7 OTHER REQUIREMENTS

In accordance with U.S. Government development commitments, including the Paris Declaration on Aid Effectiveness, the USAID Forward agenda, and USAID policies, the contract implementation should also integrate and adhere to the following principles:

Sustainability

The contractor will seek to unlock public and private investment and position DEVIDA to independently carry out all Alternative Development (AD) assistance, maintaining results and impacts beyond the life of the contract. Sustainability will be achieved when DEVIDA – in coordination with other GOP institutions at the local, regional, and national level – assumes full ownership and financing for all AD activities.

Gender and Social Inclusion

The recognition of social inequalities and the need to move towards social equity is a prerequisite for any approach that aims to help Peru address its rural development challenges. Accordingly, the contractor will make special efforts to involve and empower disadvantaged groups or vulnerable populations, including indigenous peoples, Afro-Peruvians, and women. In accordance with the attached Gender Manual and Gender Action Plan, the contractor will mainstream gender considerations into all of its activities.

Environmental Protection

Small-scale agriculture is the main driver of deforestation in Peru. Many families in AD areas own between five to ten hectares of land and live in heavily deforested areas. Accordingly, the contractor will support DEVIDA to monitor and mitigate deforestation, as well as ensure that DEVIDA’s agricultural activities follow a climate-smart approach that contributes to reforestation and carbon sequestration.