72061720Q00012 Solicitation for Financial Services BPA.pdf

Issuance Date: July 1, 2020

Questions Due: July 15, 2020, 4:00 pm (Uganda Time)

Virtual Bidders Conference: July 15, 2020, 10:00 am (Uganda Time)

Closing Date: August 7, 2020, 4:00 pm (Uganda Time)

SUBJECT: Request for Quotations (RFQ) No.72061720Q00012 Blanket Purchase Agreement (BPA) for Financial Support Services to Improve Program Accountability and Oversight

Dear Prospective Offerors:

The United States Government represented by the U.S. Agency for International Development (USAID) Mission to Uganda, is seeking proposals from prospective Offerors, to provide Financial Support Services to Improve Program Accountability and Oversight Services as described in Section B.10.

USAID is contemplating awarding up to five (5) Blanket Purchase Agreements (BPA) to responsible Offerors whose quotes represent the best value to the U.S. Government, in accordance with the evaluation factors outlined in Section E. The combined value of all orders placed will not exceed $11,300,000 over the 5-year period of this BPA, subject to availability of funds.

This Activity will be procured through an acquisition mechanism and competition will be limited to Local Entities. This mechanism is considered to be best suited to the circumstances of the contract action and consistent with the need to fulfill the Government’s requirements efficiently.

Pursuant to ADS 302.3.4.5.f, this solicitation is open to all local entities that meet the definition of local entity in Section 7077 of Public Law 112-74 (b) and (c). For the purposes of this section, local entity means an individual, a corporation, a nonprofit organization, or another body of persons that--

(1) is legally organized under the laws of Uganda;

(2) has as its principal place of business or operations in Uganda;

(3) is majority owned by individuals who are citizens or lawful permanent residents of Uganda; and

(4) managed by a governing body the majority of who are citizens or lawful permanent residents of Uganda.

For purposes of this section, ‘majority owned’ and ‘managed by’ include, without limitation, beneficiary interests and the power, either directly or indirectly, whether exercised or exercisable, to control the election, appointment, or tenure of the organization's managers or a majority of the organization's governing body by any means.”

All interested Offerors must meet the definition above in order to be considered.

In accordance with BPA procedures described in Federal Acquisition Regulation (FAR) Part 13.303, and the Acquisition of Commercial items procedures described in FAR Part 12, this solicitation consists of the following:

72061720Q00012 Financial Support Services

1) Section A- SF-1449

2) Section B - Continuation of SF-1449

3) Section C - Administrative Requirements

4) Section D - List of Attachments

5) Section E - Solicitation Provisions

All quotations must be prepared in accordance with instructions contained in Section E and must be submitted no later than the closing time and date indicated above. Failure to comply with the submission date and time may deem any submission unacceptable, and will not be reviewed or evaluated. Faxed quotations are not acceptable, nor will they be reviewed or evaluated. Please also note that an early submission is encouraged.

The North American Industry Classification System (NAICS) code for this solicitation is 541990. The authorized geographic code for this procurement is 937.

A virtual pre-bidder’s conference is scheduled per the date and time on the cover page. All interested bidders should register through KampalaUSAIDSolicita@usaid.gov by July 10, 2020. The call-in details are as follows: Please follow the link of the Meeting ID meet.google.com/aam-sviy-sjs or call the number US line: +1 617-675-4444; Pin Number: 889 706 663 4496#. You are encouraged to login at least five minutes before the call starts. All callers must mute their lines during the call and send in questions in advance of the meeting or insert your questions in the comments section. A summary of the Questions and Answers received will be posted as an Amendment to the solicitation.

Any questions regarding this RFQ must be submitted in writing to KampalaUSAIDSolicita@usaid.gov.

Questions sent to any other e-mail address will not be answered. The e-mail transmitting the questions must reference the RFQ number and title in the subject line of the e-mail. Responses to questions received prior to the deadline will be furnished to all Offerors through an amendment to solicitation and will be posted to https://beta.sam.gov.

This RFQ and any future amendments can be viewed and downloaded from beta.sam.gov. USAID bears no responsibility for data errors resulting from the transmission or conversion processes. Further, be aware that amendments to solicitations are occasionally issued and will be posted on the same internet site from which you downloaded the solicitation. You are therefore advised to regularly check the above internet site for amendments.

If you decide to submit a quotation, please follow the submission instructions in Section E. All submissions will be made to KampalaUSAIDSolicita@usaid.gov. Late submissions will not be considered for award. Hard copy, telegraphic, or fax applications are not authorized for this RFQ and will not be accepted.

Offerors are encouraged to register with the Data Universal Numbering System (DUNS) and System for Award Management at https://www.sam.gov/portal/public/SAM/ as these are mandatory requirements before any award can be made. In the event that the submission deadline is due before registration is complete, Offerors should proceed with the submission of their quotations. USAID will not award a BPA to an Offeror unless the Offeror has complied with all applicable unique entity identifier and System for Award Management (SAM) requirements. The registration process may take many weeks to complete. Therefore, Offerors are encouraged to begin registration early in the process.

Issuance of this solicitation does not constitute an award commitment on the part of the Government, nor mailto:KampalaUSAIDSolicita@usaid.gov https://beta.sam.gov/ http://www.tbo.gov/ mailto:KampalaUSAIDSolicita@usaid.gov does it commit the Government to pay for any costs incurred in the preparation or submission of a quote.

Furthermore, the Government reserves the right to reject any offer, if such action is considered to be in the best interest of the Government.

Thank you for your consideration of this USAID/Uganda Financial Support Services to Improve Program Accountability and Oversight Activity. We look forward to your participation.

Sincerely, Admir Serifovic Contracting Officer USAID/Uganda

Contents

SECTION B - CONTINUATION OF SF-1449

B.1 TITLE

B.2 PURPOSE

B.3 PERIOD OF PERFORMANCE

B.4 BPA CEILING

B.5 CALL ORDER TYPES

B.6 PRICE SCHEDULE

B.7 COST/PRICE INFORMATION

B.8 BILLING

B.9 TERMINATION

B.10 STATEMENT OF WORK

SECTION C - ADMINISTRATIVE REQUIREMENTS

C.1 MAXIMUM ORDERING LIMIT

C.2 FUNDING

C.3 PLACE OF PERFORMANCE

C.4 ORDERING PROCEDURES

C.4.1 GENERAL

C.4.2 ORDERING PERIOD

C.4.3 CALL ORDERS

C.4.4 ACCOUNTING AND APPROPRIATION DATA

C.4.5 PAYING OFFICE AND PROCEDURES, PAYMENT TERMS, AND INVOICING

C.5 REPORTS, OUTPUTS AND DELIVERABLES

C.5.1 LANGUAGE REQUIREMENTS

C.5.2 DELIVERABLES

C.6 POST AWARD ADMINISTRATION

C.6.1 CONTRACTING OFFICER-BPA LEVEL

C.6.2 CONTRACTING OFFICER'S (CO) AUTHORITY

C.6.3 CONTRACTING OFFICER’S REPRESENTATIVE (COR)

C.6.4 TECHNICAL DIRECTION/RELATIONSHIP WITH USAID

C.7 NOTICE LISTING OF CLAUSES INCORPORATED BY REFERENCE:

C.8 AID ACQUISITION REGULATION (48 CFR CHAPTER 7) CLAUSES

C.9 FAR 52.212-4 CONTRACT TERMS AND CONDITIONS-COMMERCIAL ITEMS (OCT 2018)

(Deviation M-OAA-DEV-FAR-20-1c)

C.10 CONTRACTOR-MISSION RELATIONSHIPS (OCT 1989) [DEVIATION (JUN 2018)]

C.11 SPECIAL PROVISIONS

C.11.1 AUTHORIZED GEOGRAPHIC CODE

C.11.2 GOVERNMENT FURNISHED FACILITIES OR PROPERTY

C.11.3 CONFIDENTIALITY AND OWNERSHIP OF INTELLECTUAL PROPERTY

C.11.4 DISCLOSURE OF INFORMATION

C.11.5 ORGANIZATIONAL CONFLICT OF INTEREST

C.11.6 AIDAR 752.209-71 ORGANIZATIONAL CONFLICTS OF INTEREST DISCOVERED AFTER AWARD

(JUN 1993)

C.11.7 LIMITATION ON ACQUISITION OF INFORMATION TECHNOLOGY (APRIL 2018)

C.11.8 DEFENSE BASE ACT (DBA) INSURANCE FOR 2015-2020

C.11.9 BRANDING AND MARKING POLICY

C.11.10 VALUE ADDED TAX AND CUSTOMS DUTIES

SECTION D - DOCUMENT, EXHIBITS AND OTHER ATTACHMENTS

SECTION E - INSTRUCTIONS TO OFFERORS AND EVALUATION FACTORS FOR AWARD

E.1 FAR 52.212-3 OFFEROR REPRESENTATIONS AND CERTIFICATIONS-COMMERCIAL ITEMS

(MAR 2020)- See Attachment D.5

E.2 FAR 52.204-24 REPRESENTATION REGARDING CERTAIN TELECOMMUNICATIONS AND VIDEO

SURVEILLANCE SERVICES OR EQUIPMENT (DEC 2019)

E.3 FAR 52.204-26 COVERED TELECOMMUNICATIONS EQUIPMENT OR SERVICES-

REPRESENTATION (DEC 2019)

E.4 FAR 52.212-1 INSTRUCTIONS TO OFFERORS-COMMERCIAL ITEMS (MAR 2020)

E.5 GENERAL INSTRUCTIONS

E.6 FAR 52.233-2 SERVICE OF PROTEST (SEP 2006)

E.7 INSTRUCTIONS FOR THE PREPARATION OF THE TECHNICAL PROPOSAL

E.7.1 GENERAL TECHNICAL PROPOSAL INSTRUCTIONS

E.7.2 TECHNICAL PROPOSAL FORMAT

E.7.2.1 Phase I: Case Study E.7.2.2 Phase II: Technical Approach, Management Approach (Oral Presentation in person or through video conference and written submission) and Past Performance (written submission only)

E.8 INSTRUCTIONS FOR THE PREPARATION OF THE PRICE PROPOSALS

E.9 INSTRUCTIONS FOR THE PREPARATION OF BRANDING AND MARKING PLANS

E.10 EVALUATION FACTORS FOR AWARD

E.10.1 FAR 52.212-2 – EVALUATION – COMMERCIAL ITEMS (OCT 2014)

E.10.2 GENERAL INFORMATION

SECTION B - CONTINUATION OF SF-1449

B.1 TITLE

Financial Support Services to Improve Program Accountability and Oversight.

B.2 PURPOSE

The purpose of this award is to establish Blanket Purchase Agreements with up to five qualified vendors to provide Financial Support Services covering activities of its U.S. and non-U.S. based implementing partners, in accordance with the Statement of Work contained in Section B.10 of this solicitation.

B.3 PERIOD OF PERFORMANCE

The period of ordering for this Blanket Purchase Agreement is five (5) years.

B.4 BPA CEILING

The ceiling for this Blanket Purchase Agreement is $11,300,000. There is no minimum guarantee.

B.5 CALL ORDER TYPES

The Government will issue BPA Call Orders that are Firm-Fixed Price (FFP).

B.6 PRICE SCHEDULE

In order to perform the Statement of Work set forth in Section B.10, the Contractor must propose a price schedule using the template provided in Attachment D.4. The proposed price schedule must correspond to the minimum education and experience requirements of each proposed position therein.

B.7 COST/PRICE INFORMATION

The prices/costs will be applied to individual order as follows:

(a) Labor: The price schedule contains loaded daily ceiling rates for work performed at any location designated in this BPA. “Loaded daily rate” is defined as the direct daily labor rate along with appropriate load factors, inclusive of profit or fee. Other load factors include overhead, fringe, and general & administrative (G&A) costs. The loaded daily rates set forth in the schedule are fully burdened, not-to-exceed, ceiling prices.

The contractors may, at their discretions, propose lower loaded daily rates on a call-by-call order basis.

(b) Fixed Price Call Orders: The quantity of days of each labor category will be multiplied by the loaded daily rates listed in the price schedule or lower. The amount negotiated for travel will be added to the total labor amount to arrive at the Call Order total fixed price. Travel can be reimbursed based on actual expenses incurred, not to exceed the negotiated ceiling on travel. Milestone payments will be based on the completion of milestones. Milestones will be stated within the Request for Quotation issued.

(c) The prices (loaded labor rates) included on the BPA list (or applicable "discounted" rates submitted in a response to a Call RFQ which results in award) that are in effect as of the effective date of a Call Order will govern that order's price during the performance period. The BPA holder can voluntarily reduce offered prices at any time by giving 24-hour advance written notice to the Contracting Officer.

(d) Travel: The Government will reimburse the cost of travel required in conjunction with performance of orders issued under the agreement. The Government will set the maximum allowable travel costs per Call Order. Reimbursement for travel is limited to that required in the performance of the order. Allowable travel costs include:

1) Travel (mileage, fuel, vehicle hire etc);

2) Per diem (lodging and meals); and,

3) Other travel related costs.

Note: It is assumed that all Travel will be local.

(e) Subcontracts: Subcontracts are not envisaged for the BPA or Call Orders.

B.8 BILLING

The Call Order will cite the applicable daily rates selected from the Price Schedule negotiated under the BPA.

The daily rates approved under the Call Order will remain in effect for the entire Call Order period. Any rates billed in excess of the daily billing rates designated in the Call Order schedule will not be authorized.

B.9 TERMINATION

See FAR Clause 52.212-4 Contract Terms and Conditions-Commercial items (OCT 2018).

B.10 STATEMENT OF WORK

FINANCIAL SUPPORT SERVICES

A. Background

The USAID/Uganda portfolio contains approximately 65 active acquisition and assistance awards, with a total multi-year portfolio value of over $900 million. Given the amount of U.S. Government (USG) resources programmed by the Mission, the complexity of the Mission’s portfolio and the challenging environment in which USAID/Uganda operates, the Mission needs to establish a robust platform for evaluating the effectiveness of internal administrative, financial and operational controls over this large portfolio of activities.

The Mission is putting in place the activities intended to achieve the vision described in its 2016 to 2021 Country Development Strategy Statement (CDCS). The CDCS, which can be found at:

https://www.usaid.gov/sites/default/files/documents/1860/CDCS_FINAL_26092017.tags_.pdf significantly expands the programmatic integration initiated under the previous CDCS. It also deepens USAID/Uganda’s commitment to self-reliance https://www.usaid.gov/selfreliance. This is captured in the CDCS goal of “Uganda’s systems are accelerating inclusive education, health and economic development.” As indicated in the CDCS, meaningful progress toward self-sufficiency requires strengthening and increasingly channeling USAID assistance through Ugandan systems. Unfortunately, corruption within those systems, and within Uganda more generally, impedes USAID’s development goals and its operational obligation to ensure the integrity of U.S.

taxpayer resources.

Ranking 149th out of 180 countries, Uganda falls at the bottom on Transparency International’s (TI’s) Corruption Perceptions 2018 Index. Corruption in the country is both pervasive and well-entrenched. Uganda’s Black Monday Movement, a coalition of anti-corruption civil society organizations, estimated that between 2000 and 2014, over $6.6 billion dollars was lost to the government due to corruption, “enough to finance the https://www.usaid.gov/sites/default/files/documents/1860/CDCS_FINAL_26092017.tags_.pdf https://www.usaid.gov/selfreliance country’s 2015/2016 budget.”1 Over recent years, Uganda’s scores on TI’s, as well as other indices of accountability, have been on a downward slope. Neither development nor humanitarian assistance is immune from corruption. In 2012, $12.7 million in donor funds tagged for rebuilding post-war northern Uganda was embezzled from the Office of the Prime Minister (OPM) in collusion with the Ministry of Finance and the Central Bank, causing donors to temporarily suspend aid to one of Uganda’s most deprived regions. More recently, OPM, together with United Nations (UN) staff at the World Food Program (WFP) and United Nations High Commissioner for Refugees (UNHCR), were forced to address allegations of massive corruption at the Bidi Bidi refugee camp. Allegations were based on credible reports of systemic misuse of commodities and other fraud, including refugee registration and access to land.

Organizational internal controls across the portfolio and other accountability mechanisms are weak and low levels of penalization for corruption perpetrators provide little incentive to respect controls that do exist. In addition, the recent U.S. President's Emergency Plan for AIDS Relief (PEPFAR) Local Partner initiative, requiring a total of 70% of PEPFAR funds directed towards local Non-Government Organizations (NGOs) and government entities puts increased pressure on the Mission to ensure organizational controls are in place.

With limited staffing, the primary objective of this Blanket Purchase Agreement (BPA) is to create a mechanism that will adaptably assist the Office of Financial Management (OFM) in strengthening risk management, accountability and oversight of USAID/Uganda’s growing portfolio of programs and activities.

USAID requires the assistance of professional auditing firms (or firm) to perform actions that include, but not limited to financial assessments and reviews, audits, third-party monitoring, risk management, or providing technical assistance and capacity development to aid recipient organizations and potential recipients in Uganda.

Each engagement shall be performed in a professional manner and the Contractor (or contract firm) shall perform sufficient work to provide the information requested by USAID.

B. Objective

The objective of this engagement is to provide USAID/Uganda management the basis to identify, mitigate, respond to, or otherwise manage risks that arise in its operations, in fulfillment of its fiduciary responsibilities over U.S. government resources programmed in support of USG Foreign Assistance objectives. All surveys, assessments, financial reviews, audits, and similar programmatic and financial evaluations and capacity development projects will be conducted in accordance with standards agreed upon and approved by the Mission and to provide assurance that the recipient’s control environment and risk status impacts on the effectiveness of internal controls, and generally is in accordance with the terms of the contract/grant.

The generic scopes of work below identify the general type of engagement that the firm will be expected to undertake for USAID. Each BPA Call Order will have a specific scope of work that considers many factors and will be adapted to the specific situation. For each BPA Call Order, the firm is responsible for performing the work needed to provide a professional opinion on all issues requested by USAID, documenting their findings in a professional manner, and recommending the necessary actions to resolve those findings and recommendations. These requirements should be reviewed carefully before commencing work because USAID will be relying on the firm to comply with the legal and/or regulatory requirements. In all cases, the firm will also be expected to comply with local government requirements and with local and U.S. professional standards.

C. Generic Scopes of Work

Types of work envisioned include, but are not limited to, the following:

1. Pre-Award Surveys

2. Fiduciary Risk Assessments of GoU

3. Financial Reviews

1 John Martin Kewaza, Afro-Barometer Dispatch No. 77, March 28, 2016.

4. Payment Verification for milestones, project expenditures and cost share

5. Host Country Contracting Capability Assessments

6. Audits

7. Other Technical Assistance

8. Third Party Monitoring (TPM)

9. Risk Management

10. Capacity Building

1. Pre-Award Surveys for local NGOs

A fundamental principle of implementing grants and contracts through partners is that the USAID Contracting/Agreement/Principal Officer makes an affirmative determination of responsibility in respect of the potential grantee or Contractor (see ADS Chapter 303, “Grants and Cooperative Agreements to NGOs” at https://www.usaid.gov/sites/default/files/documents/1868/303.pdf .). A pre-award survey is an evaluation of a potential recipient’s ability to perform under a USAID sponsored agreement and possess the management competencies to plan and carry out the activities funded. Such surveys are normally limited to assessing the potential recipients’ accounting system in accumulating cost information or financial capability to perform under a prospective award. Surveys may also encompass technical, production, and quality assurance considerations. The result of the survey also guides the Mission in determining appropriate the method of payment to be used in a prospective award to the recipient. The conclusions and recommendations of the Contractor as expressed in the final survey report guides the Mission in making an affirmative determination responsibility of the potential grantee or Contractor.

The Contractor will be required to use the pre-award survey framework provided by USAID/Uganda. The framework should be used as a basis for developing appropriate methodologies and a work plan to conduct the survey. The Contractor may adapt the framework appropriately to address the requirements of specific BPA Calls. The list of questions provided within the pre-award survey framework are not considered all-inclusive or restrictive in nature, and do not relieve the contracted firm from exercising due professional care and judgment.

The Contractor will use due professional care in evaluating the organization and will be expected to gain an understanding of the organization by performing reviews of the organization’s formal written documentation, guidance, policies, and procedures. The Contractor is also expected to review the understanding and application of those policies and procedures by the organization’s personnel. The Contractor is expected to perform sufficient levels of compliance testing to validate and support the findings arrived at by the Contractor firm.

2. Fiduciary Risk Assessments of GoU

Fiduciary risk assessments include assessments of the Government of Uganda (GoU) ministries and agencies, public financial management (PFM), procurement and administrative systems. The objective of this type of assessment is to assist USAID/Uganda to evaluate and recommend, where necessary, corrective actions to mitigate identified risks and vulnerabilities in the system, to facilitate USAID direct support to the entity. This type of assessment is risk-based and during the evaluation of the entity’s business processes, the Contractor is expected to identify and score risk, using USAID’s regulations and guidelines for conducting fiduciary risk assessment (see ADS Chapter 220 www.usaid.gov/policy/ads/200/220.pdf)

● PFMRAF Stage 2 Risk Assessments: USAID’s Public Financial Management Risk Assessment Framework (PFMRAF) guides the process of risk assessment of host country entities. The PFMRAF process is described in ADS Chapter 220, “The Use of Reliable Partner Country Systems for Direct Management and Implementation of Assistance” at www.usaid.gov/policy/ads/200/220.pdf. The Contractor will be expected to provide services in the performance of the Stage 2 risk assessment.

https://www.usaid.gov/sites/default/files/documents/1868/303.pdf http://www.usaid.gov/policy/ads/200/220.pdf http://www.usaid.gov/policy/ads/200/220.pdf

● PFMRAF Follow-Up: The Contractor will be expected to provide services in post-Stage 2 PFMRAF follow-up activities, including but not limited to services related to incorporating the results of the Stage 2 risk assessment risk mitigation plan into project and activity designs, providing input into Implementation Letters between USAID/Uganda and the host country, and making recommendations with the design of capacity building efforts. The Contractor will not provide services in assisting in the implementation of any mitigation or capacity development activities related to risk assessments the Contractor performed; or any other follow-on activities that could be perceived to create a conflict of interest.

The Contractor will be required to use the risk assessment Statement of Work (SOW) provided by USAID/Uganda. The framework should be used as a basis for developing appropriate methodologies and a work plan to conduct an assessment. The risk assessment will identify, rank, and assess the impact of risks and propose corrective measures for each of the indicators within the framework. The list of questions provided at the sub-indicator level within the risk assessment framework are not considered all-inclusive or restrictive in nature, and do not relieve the contracted firm from exercising due professional care and judgment. The Contractor may adapt the questionnaire appropriately to address the requirements of specific BPA Call Orders.

The Contractor will use due professional care in evaluating the risks and will be expected to gain an understanding of the organization by performing reviews of the organization’s formal written documentation, guidance, policies, and procedures. The Contractor is also expected to review the understanding and application of those policies, practices, and procedures by the organization’s personnel from the Board of Directors through the executive and mid-level managers to the line personnel carrying-out the organization’s functions. The Contractor is also expected to perform sufficient levels of actual compliance testing to validate and support the risk measurements.

USAID reserves the right to review the working papers of the Contractor to ensure that risk assessment was conducted adequately, and observations and risk scoring are supported by evidence.

3. Financial Reviews

As a rule, Financial Reviews (FRs) are more flexible and less invasive than an audit and performed as much for the benefit of the entity being reviewed as for the entity requesting the review. Ultimately, FRs assess the effectiveness of internal controls in projects' administrative, financial management and performance monitoring systems; ensure compliance with applicable regulations.

FRs are conducted during the implementation phase of the project to provide limited assurance that the business systems, processes and procedures of USAID funded organizations are adequately managing the USG funds/programs, and that these organizations are complying with the terms and conditions of the award. For comprehensive and efficient results, this type of review is risk-based. While financial reviews intend to evaluate the effectiveness of the organization’s financial policies, systems, controls and procedures, when required, they in addition focus on the linkages between programmatic and financial systems and structures and how such controls influence the organization’s ability to ensure adequate accountability of funds and perform in accordance with the terms of the contract to achieve the overall programmatic targets. Because of the likely limitations of available documentation especially for US-based partners, the scope is normally limited to “locally incurred costs.” The review entails an assessment of all systems and processes that interact with and influence, directly or indirectly, financial records maintained by the activity under review. Areas of focus for each review are tailored to a specific award based on the nature of activities and assumed associated risk. The Contractor will be required to use the financial review framework provided by USAID/Uganda as the basis for developing appropriate methodologies and a work plan to conduct the assessment. The Contractor firm may adopt the framework appropriately to address the requirements of specific BPA Calls. The list of questions provided within the framework are not considered all-inclusive or restrictive in nature, and do not relieve the contracted firm from exercising due professional care and judgment. The Contractor will use due professional care in evaluating the organization and will be expected to gain an understanding of the organization by performing reviews of the organization’s formal written documentation, guidance, policies, and procedures. The

Contractor is also expected to review the understanding and application of those policies and procedures by the organization’s personnel. The Contractor is also expected to perform sufficient levels of actual compliance testing to validate and support the findings arrived at and must ensure, when relevant, to exercise professional judgement when designing the assignment work plan, designing tools, carrying out site visits, reporting on results, and sharing findings.

USAID reserves the right to review the working papers of the Contractor to ensure that the financial review was conducted as required and that all observations and conclusions are adequately supported by evidence.

4. Payment Verification for milestones, project expenditures and cost share

Verification services are required in agreements such as Fixed Amount Awards (FAAs) or Fixed Amount Reimbursable Agreements (FARAs) wherein USAID agree to reimburse an implementing partner for accomplishment of mutually agreed upon project deliverables or milestones in a cost reimbursement award, including construction projects. Under this BPA, the Contractor will be expected to verify the accomplishment of project deliverables using guidelines agreed upon by both parties (USAID and the implementing partner), prior to final disbursement of funds. The Contractor shall submit a report expressing an opinion as to the level of completion and accomplishment of the project deliverable, and recommendations for payment. Opinion, recommendations, and other conclusions reached shall be supported by evidence. For tasks required under this category of services, the Contractor will be provided a detailed SOW that will fully contain instructional guidelines and other criteria that will inform the methodology of the verification.

Whenever appropriate, a USAID staff may be part of the verification team, and based on physical verification as well as confirmation from the designated project or Host Government officials, the Contractor will confirm that the milestone(s) was complete as defined in the agreement/Contract or Implementation Letter. While the verification team is expected to recommend payment of the milestone amount (not based on actual cost incurred), if defined in the scope, the Contractor may sometimes be required to identify areas of improvement for the next milestones.

Project deliverables for verification may include:

● Completion of an important phase of a procurement process for the provision of goods and /or services, as mutually agreed by both parties.

● Supply and receipt of goods and /or services as per required specifications and terms mutually agreed by both parties.

● Installation and /or testing of materials and equipment as per specifications and terms mutually agreed by both parties.

● Completion of key phases of an architecture and design or civil works contract as per terms and specifications mutually agreed upon by both parties.

● Outputs and outcomes supporting the completion and accomplishment of activities in a service delivery contract.

● Availability of proper and required documentation including payment vouchers to support disbursement of funds for accomplishment of mutually agreed upon deliverables.

USAID reserves the right to review the working papers of the Contractor to ensure that the payment verification is conducted as required and that final opinion, observations, recommendations and conclusions are adequately supported by evidence.

Project expenditure and cost share verification

When designed as a standalone or embedded in other scopes, the Contractor will be required to assess the partners’ fulfillment of contractual obligations related to cost share and liquidating of project expenditures. The Contractor will assess whether or not the partner has fulfilled its requirements as per the contract. The Contractor will also verify the eligibility of expenditures and compliance with the contract.

5. Host Country Contracting Capability Assessments

Host Country Contracting (HCC) is a means of program implementation in which USAID/Uganda finances, but is not a party to, contractual arrangements between the host country and the supplier of goods and /or services (see ADS Chapter 301 www.usaid.gov/policy/ads/300/301.pdf and ADS 305 www.usaid.gov/policy/ads/300/305.pdf.) This requires that prior to the award of a host country contract, the Mission must conduct a HCC capability assessment of the entity’s business processes, including procurement and financial management, and issue a report which will inform a decision as to the adequacy of these processes and acceptance of the entity for the implementation of the HCC award. The Contractor will be expected to conduct a HCC capability assessment using guidelines outlined in ADS 301, ADS 305 and the USAID Project Officer’s Guidebook (see Host Country Contracting, www.usaid.gov/pubs/ads/300/3016s.pdf.)

USAID reserves the right to review the working papers of the Contractor to ensure that HCC capability assessment was conducted adequately, and observations and other conclusions are supported by evidence.

6. Mission-initiated Audits

The Contractor shall be required to conduct financial and performance audits for USAID implementing partners in accordance with applicable regulations and auditing standards and submitting a final report. USAID/Uganda expects the Contractor to conduct the following types of audits:

● Financial Audits: Financial audits are conducted during activity implementation or closeout to assess whether a Contractor, recipient or host government has accounted for and used USAID funds as intended and in compliance with applicable laws and regulations governing the award. Financial audits are conducted in accordance with the USAID’s applicable regulation ADS Chapter 591, “Financial Audits of USAID Contractors, Recipients, and Host government Entities,” at www.usaid.gov/policy/ads/500/591.pdf.

● Performance Audits: A performance audit is an objective and systematic examination of evidence to assess the performance and management of a program or project, provide a prospective focus, or synthesize information on best practices or cross-cutting issues. The Contractor is expected to conduct performance audits in accordance with the USAID’s applicable regulation as contained in ADS Chapter 592 at www.usaid.gov/policy/ads/500/592.pdf. The audit is usually designed and executed to answer a specific audit question such as whether the program’s main goals are being achieved.

● Forensic Audits: Forensic audits are a deep dive into financial and other operations, conducted to examine a specific issue or concern. USAID/Uganda requires support in reviewing financial data to identify inaccuracies, tracing discrepancies in electronic and paper trails, preparing oral and written reports that meet legal standards for prosecution, and forecasting and preventing fraud. USAID has no guidance specific to forensic audits.

● Other Audits: USAID Missions conduct various other audits, such as locally incurred cost audits, internal control audits, limited scope audits, and internal USAID audits (including audits of local currency USAID/Uganda managed trust funds), etc.

For each task ordered under this category, the Contractor will be issued a detailed SOW with instructional guidelines that will inform the methodology of the audit. USAID reserves the right to review the audit working http://www.usaid.gov/policy/ads/300/305.pdf http://www.usaid.gov/pubs/ads/300/3016s.pdf papers of the Contractor to ensure that the audit was conducted as required and that final opinion, observations, recommendations, and other conclusions are adequately supported by evidence.

7. Other Technical Assistance

Other Technical Assistance covers systems strengthening and institutional capacity building for USAID/Uganda target entities, including GoU entities and local organizations. This category of services covers strengthening financial management, procurement, and other administrative and technical systems of selected entities; including technical capacity to plan, implement and monitor activities contributing to the accomplishment of the entity’s goals and objectives. Other support could include but will not be limited to:

conducting assessments of internal financial management control systems, preparing tools and templates to support improved financial management, conducting analyses to better understand the conditions for improved performance in curbing fraud; providing other OFM-related support to USAID/Uganda staff, IPs, potential IPs or host country governmental entities.

For each task ordered under this category, the Contractor will be issued a detailed statement of work with instructional guidelines that will inform the methodology of the work.

8. Third Party Monitoring (TPM)

The purpose of the Third Party Monitoring Activity is to support, gather, and provide independent, verifiable, primary data to USAID regarding the outputs, outcomes, progress, quality, challenges, successes, and lessons learned from programs that are reliant upon credible, reliable systems and processes. Overall, the information and findings from this activity will be critical in ensuring learning and accountability, which will be useful for real-time programmatic adjustments and future program design in targeted USAID programs.

The Contractor will verify and provide independent confirmation of international and local IPs, and GoU reporting to USAID/Uganda and provide other monitoring support as described below. The following examples are illustrative (but not all inclusive) of the types of validation and record reconciliation activities USAID/Uganda expects to support under the Contract: the delivery of food and other assistance to refugees, the warehousing and distribution of health supplies, progress on Government to Government (G2G) small construction activities, site visits where USAID/Uganda is delivering PEPFAR, or other sectoral support.

Third Party Monitoring (TPM) is the eyes and ears of USAID’s accountability systems. TPM can track the progress (or lack thereof) of USAID-supported activities, signal implementation problems in a timely manner, and inform USAID decision-making.

USAID/Uganda expectations regarding Contractor performance include the following:

● Contractors will be able to provide staff with the language skills and geographic proximity necessary to perform the contracted activity.

● The Contractor will be positioned to provide qualified staff in all regions of the country in time frames called for in individual BPA Call Task Orders.

● TPM tools will be tailored specifically for the sector in which the activity occurs. Contractor TPM and analysis systems will have the capacity to disaggregate data by gender, age, economic status, and other factors as and when required by USAID/Uganda.

● The Contractor will develop relationships and collaborate with host country universities and research institutions to improve the quality and contextual relevance and to increase USAID/Uganda’s access to capable, cost-effective local expertise in the future.

● The Contractor and its staff will have the human, hardware and software capacity for electronic data collection in order to better ensure the transparency of data collection; to create the ability to collect new types of data (GIS, media, including photographs, video, and audio); and to increase the quality and efficiency of: (i) transferring collected data back to a central manager for data analysis; (ii) identifying data anomalies; and (iii) aggregating and sorting data from multiple partners and projects.

● The Contractor’s performance will continuously reflect USAID/Uganda’s commitment to collaboration, learning and adapting.

o Further to collaboration, the Contractor will establish cooperative relationships with other donors, as requested by USAID/Uganda.

o The Contractor’s commitment to “learning and adapting” will be demonstrated in its deliberate and reported efforts to ensure that it is: (i) supporting USAID/Uganda in collecting high quality data against the questions most important to Mission decision-making; and (ii) asking itself how best to collect and act on the data that will lead to the continuous improvement of its performance.

The Contractor will be expected to provide the following services which USAID/Uganda will selectively access under individual BPA Call Orders. Each BPA Call Order will provide specific and sufficient instructions of the services required and indicate the required deliverables to enhance fiduciary management transparency and effectiveness.

● Review -understand existing environment, systems, and processes.

● Validate - Validate records, in accordance with the terms and conditions of the contract, grant or implementation letter.

● Reconcile - account for differences and discrepancies due to damage or loss.

● Recommend - to support evidence-based decision making, recommend specific processes and procedures to address findings.

9. Risk Management

The Contractor will assist USAID/Uganda in minimizing fraud, waste, and abuse in the delivery of development assistance, improving internal financial management and oversight, and ensuring that foreign assistance money is used for its intended purpose. The Contractor will support USAID in conducting financial reviews, risk assessments, audits, and other analyses of existing IPs, potential partners, and Host Country partners’ fiduciary systems.

High quality, upright public financial management (PFM) is essential to ensuring the integrity of government budgeting and budget execution processes and has the added benefit of fostering democracy by fortifying accountability and transparency. As USAID/Uganda increases the delivery of its assistance through GoU entities as well as indigenous NGOs, universities, and private sector enterprises, it has an obligation to U.S.

taxpayers to understand the strengths and weaknesses of counterpart financial management mechanisms so that risks can be addressed. The Contractor will assist USAID/Uganda in:

● Conducting internal control, financial management and risk assessments to identify and develop plans for addressing the risks associated with channeling USAID resources through Ugandan counterpart systems.

● Conducting financial, close out and/or forensic audits.

● Build capacity of USAID/Uganda IP, potential local IPs, host country government and internal USAID/Uganda staff to strengthening financial management competencies necessary to identify and address risks.

10. Capacity Building

The Contractor will assist USAID/Uganda in financial management capacity building of client organizations, including: Host Country entity partners; potential partners; indigenous NGOs, universities, and private sector enterprises with which USAID/Uganda is either partnering or buying services; and other organizations that USAID/Uganda may identify. Other client organizations could also include:

i. USAID/Uganda’s international IPs;

ii. GoU institutions with strategic value in improving fraud prevention such as but not limited to Uganda’s Inspectorate of Government and the Office of the Auditor General;

iii. host country local accounting and/or auditing firms; or

iv. USAID/Uganda staff.

Capacity building will include helping organizations develop the vision, strengthen their institutional and staff competencies, build the networks required to improve their fiduciary performance, incorporate a strong internal control system, and implement risk mitigation measures.

As described earlier, Uganda is a high-risk environment for financial waste, fraud, and abuse of funds. Risks stem from the thin layers of qualified staff available to organizations; weak systems of internal control within organizations; and a culture with high levels of tolerance for corruption and favoritism. As USAID/Uganda increases the delivery of its assistance through GoU systems as well as indigenous NGOs, universities, and private sector enterprises, it has an obligation to U.S. taxpayers to help address accountability and transparency shortfalls and, thus, ensure the integrity of the systems through which it is delivering assistance.

The Contractor will assist USAID/Uganda in:

• Providing the support to help client organizations or potential organizations meet the requirements of risk mitigation plans that emerge from PFMRAF assessments, pre-award surveys and assessments, and audits described in C.4.2 above;

• Strengthening internal controls among client organizations and potential client organizations more generally;

• Building capacity and organizational will to identify and mitigate against waste, fraud and abuse of funds beyond the life of Contract support;

• Strengthening USAID/Uganda’s internal financial management operations; and

• Strengthening local accounting, consulting, and audit firms.

Contract support for the first three bullets above will focus primarily but not exclusively on local client and potential client organizations, including national and local government counterpart agencies; NGOs and Contractors; universities and private sector enterprises.

USAID/Uganda’s expectations regarding Contractor performance include the following:

● The Contractor will employ participatory, systems-based approaches to capacity building whenever possible.

Such approaches will include using facilitative, learner-centered processes to help client organizations develop the vision, institutional and employee competencies, and networks they need to upgrade and monitor fiduciary performance and sustain progress on risk mitigation or financial management improvement plans.

o Visioning processes will include building an appreciation for custodial standards and ethical behavior and strengthening the connection that staff have to the objectives of their organizations.

o Competency building will include system strengthening and a range of skills and knowledge-building interventions, including traditional and electronic training, coaching, peer-to-peer mentoring, leadership development, etc. Whenever possible, skills and knowledge building will be interactive and/or experiential.

Competency-building interventions may also include systems assessments, operational and other research, the development of tools and templates, exchange programs, study tours, etc. to inform improvements to fiduciary systems and processes as well as technical assistance in improving fiduciary systems and processes. Competency-building efforts will employ gender-sensitive approaches and reflects the broader inclusionary aspirations of USAID/Uganda’s CDCS. Illustratively, leadership courses could be developed specific to women’s needs, learning materials could be made available in the relevant local language, etc.

o Networking will help client organizations strengthen the vertical and horizontal institutional linkages relevant to their mission and benefit from relationships with regional and international counterparts.

Networking could also include increasing awareness of and interaction with Ugandan institutions responsible for promoting good governance, such as Uganda’s Inspectorate of Government or Office of the Auditor General.

● Whenever possible, capacity building will be systematic and guided by performance plans developed in partnership and tailored to the needs of the client organization being supported.

● The Contractor will seek opportunities to engage local accounting firms and university accounting departments as partners in Contract-supported capacity building interventions as a means of: (i) increasing client organizations’ access to local services; (ii) strengthening the local accountability culture; and (iii) better contextualizing Contract support, thus, increasing the effectiveness of Contract capacity-building interventions.

● The Contractor’s performance will continuously reflect USAID/Uganda’s commitment to collaboration, learning and adapting.

o The Contractor’s commitment to collaboration will be demonstrated by:

Its cooperation with client organizations in supporting anti-corruption and other good governance efforts; and by its success in complementing the efforts of USAID IPs that are strengthening technical capacities. Illustratively, the Contractor could complement USAID IPs improving the health aspects of cold chain management by providing support for reducing opportunity for corruption in cold chain systems.

Its collaboration with other BPA holders across the various engagements. For example, holders of “risk management” Call Orders may be requested to brief holders of the “capacity building” Call Orders. Holders of “capacity building” Call Orders may be requested to jointly develop common internal control templates for policies and procedures which client organizations can tailor to their respective organization policies and procedures.

Its collaboration and, if requested by USAID/Uganda, harmonization with capacity building being undertaken by other donors.

o “Learning and adapting” will be deliberate and ensure that USAID/Uganda and the Contractor itself are continuously learning from ongoing work in Uganda as well as from elsewhere in the world and applying learning to improving practices and methodologies. Activity Monitoring evaluation and Learning plans (AMELP) will reflect that USAID/Uganda is not supporting capacity building for capacity building’s sake but rather with the objective of improved institutional performance in exercising fiduciary responsibilities. Thus, beyond numbers of individuals trained, the Contractor must develop monitoring and evaluation systems that can also track improvements in institutional performance. The best systems will be those that the client organizations themselves find of value in sustaining institutional improvements beyond the life of any one BPA Call. The use of performance scorecards and other performance-tracking graphics is encouraged to help client organizations “see” their progress or lack thereof.

The Contractor will be expected to perform the following services:

● Governance and management structures: The…