72062022R00014_Solicitation for USAID_Nigeria_OFM BPA.pdf

Issuance Date: June 15, 2022 Deadline for Receipt of Questions: June 29, 2022

Closing Date: July 15, 2022 Closing Time: 16:00 PM (Nigeria Time)

SUBJECT: Solicitation No.: 72062022R00014 Blanket Purchase Agreement (BPA) for Financial Management and Oversight Support Services (FMOSS) to Strengthen Program Execution

Dear Prospective Offerors:

The United States Government represented by the U.S. Agency for International Development (USAID) Mission to Nigeria is seeking offers from qualified firms to provide Financial Management and Oversight Support Services (FMOSS) to Strengthen Program Execution as described in the attached solicitation. This solicitation is open to all pre-qualified entities under USAID/Nigeria’s List of Acceptable Audit firms.

USAID/Nigeria will establish a BPA with the qualified selected organizations. A blanket agreement is a 5-year arrangement between a purchasing organization (in this case USAID/Nigeria) with a service organization for the provision of services over a period based on predefined terms and conditions. A BPA is an agreement, not a contract. Specified order quantities are placed on “Calls” under a funded order. It is only when an order with funds obligation has been executed, that a binding contract is created out of the BPA between the government and the Contractor or service provider. The combined value of all orders placed will not exceed $9.58M over the 5-year period. There is no minimum guarantee of work that will be offered to the Contractor.

USAID contemplates making one or more Blanket Purchase Agreements (BPA) to responsible offerors whose proposal represents the best value to the U.S. Government, in accordance with the evaluation factors outlined in Section M and may establish these BPAs without discussions in accordance with Federal Acquisition Regulations (FAR) 15.306(a). Therefore, the Offeror’s initial offer must contain its best terms from a technical and cost standpoint.

All offers must be prepared in accordance with instructions contained in Section L and must be submitted no later than the closing date and time indicated above. Failure to comply with the submission date and time may deem any submission unacceptable, and it will not be reviewed or evaluated. Faxed proposals are not acceptable, nor will they be reviewed or evaluated.

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

All questions regarding this solicitation will be submitted by the date indicated above. Questions

Solicitation No.: 72062022R00014 Financial Management and Oversight Support Services (FMOSS) must be submitted by email to abujasolicitations@usaid.gov with a copy to asadiq@usaid.gov.

Questions and answers will be posted to www.SAM.gov as an amendment to the solicitation.

This solicitation and any future amendments can be viewed and downloaded from www.SAM.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 internet site from which you downloaded the solicitation. You are therefore advised to regularly check the above internet site for amendments.

Issuance of this solicitation does not constitute an award commitment on the part of the Government, nor does it commit the Government to pay for any costs incurred in the preparation or submission of an offer. 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/Nigeria initiative. We look forward to your participation.

Sincerely, Marva Butler Contracting Officer USAID/Nigeria mailto:abujasolicitations@usaid.gov http://www.sam.gov/ http://www.sam.gov/

Solicitation No.: 72062022R00013 Financial Management and Oversight Support Services

SOLICITATION/CONTRACT/ORDER FOR COMMERCIAL ITEMS

OFFEROR TO COMPLETE BLOCKS 12, 17, 23, 24, & 30

1. REQUISITION NO.

2. CONTRACT NO.

3. AWARD/EFFECTIVE DATE

4. ORDER NO.

5. SOLICITATION NO.

72062022R00014

6. SOLICITATION ISSUE DATE

June 14, 2022

7. FOR SOLICITATION

INFORMATION CALL

a. NAME

b. TELEPHONE NO. (No collect calls)

8. OFFER DUE DATE/LOCAL TIME

July 15, 2022

9. ISSUED BY CODE

10. THIS ACQUISITION IS 11. DELIVERY FOR FOB 12. DISCOUNT TERMS

USAID/NIGERIA

OFFICE OF ACQUISITION AND ASSISTANCE

C/O U.S EMBASSY

UNRESTRICTED

SET ASIDE: % FOR

SMALL BUSINESS

DESTINATION UNLESS

BLOCK IS MARKED

SEE SCHEDULE

PLOT 1075 DIPLOMATIC DRIVE, CENTRAL

BUSINESS DISTRICT

SMALL DISADV.

BUSINESS

13a. THIS CONTRACT IS A RATED ORDER

UNDER DPAS (15 CFR 700)

ABUJA, NIGERIA

8(A) 13b. RATING

SIC:

SIZE STD:

14. METHOD OF SOLICITATION

RFQ IFB RFP

15. DELIVER TO CODE

16. ADMINISTERED BY CODE

SAME AS 9

17a. CONTRACTOR/ CODE

OFFEROR FACILITY

CODE 18a. PAYMENT WILL BE MADE BY CODE

TELEPHONE NO.

17b. CHECK IF REMITTANCE IS DIFFERENT AND PUT

SUCH ADDRESS IN OFFER

18b. SUBMIT INVOICES TO ADDRESS SHOWN IN BLOCK 18a UNLESS

BLOCK BELOW IS CHECKED SEE ADDENDUM

19.

ITEM NO.

20.

SCHEDULE OF SUPPLIES/SERVICES

21.

QUANTITY

22.

UNIT

23.

UNIT PRICE

24.

AMOUNT

(Attach Additional Sheets as Necessary)

25. ACCOUNTING AND APPROPRIATION DATA

26. TOTAL AWARD AMOUNT (For Govt. Use Only)

27a. SOLICITATION INCORPORATES BY REFERENCE FAR 52.212-1, 52.212-4. FAR 52.212-3 AND 52.212-5 ARE ATTACHED. ADDENDA ARE ARE NOT ATTACHED.

27b. CONTRACT/PURCHASE ORDER INCORPORATES BY REFERENCE FAR 52.212-4. FAR 52.212-5 IS ATTACHED. ADDENDA ARE ARE NOT ATTACHED.

28. CONTRACTOR IS REQUIRED TO SIGN THIS DOCUMENT AND RETURN _____ COPIES TO

ISSUING OFFICE. CONTRACTOR AGREES TO FURNISH AND DELIVER ALL ITEMS SET FORTH

OR OTHERWISE IDENTIFIED ABOVE AND ON ANY ADDITIONAL SHEETS SUBJECT TO THE

TERMS AND CONDITIONS SPECIFIED HEREIN.

29. AWARD OF CONTRACT: REFERENCE ___________________ OFFER

DATED _________________. YOUR OFFER ON SOLICITATION (BLOCK 5),

INCLUDING ANY ADDITIONS OR CHANGES WHICH ARE SET FORTH

HEREIN, IS ACCEPTED AS TO ITEMS:

30a. SIGNATURE OF OFFEROR/CONTRACTOR 31a. UNITED STATES OF AMERICA (SIGNATURE OF CONTRACTING OFFICER)

30b. NAME AND TITLE OF SIGNER (TYPE OR PRINT)

30c. DATE SIGNED

31b. NAME OF CONTRACTING OFFICER (TYPE OR PRINT)

31c. DATE SIGNED

32a. QUANTITY IN COLUMN 21 HAS BEEN

ACCEPTED, AND CONFORMS TO THE

33. SHIP NUMBER

34. VOUCHER NUMBER

35. AMOUNT VERIFIED

CORRECT FOR

RECEIVED INSPECTED CONTRACT, EXCEPT AS NOTED PARTIAL

36. PAYMENT 37. CHECK NUMBER

32b. SIGNATURE OF AUTHORIZED GOVT REPRESENTATIVE 32c. DATE COMPLETE PARTIAL

MARVA BUTLER, CONTRACTING OFFICER

38. S/R ACCOUNT NO.

39. S/R VOUCHER NO.

40. PAID BY

42a. RECEIVED BY (Print)

41a. I CERTIFY THIS ACCOUNT IS CORRECT AND PROPER FOR PAYMENT

41b. SIGNATURE AND TITLE OF CERTIFYING OFFICER 41c. DATE 42b. RECEIVED AT (Location)

42c. DATE REC’D (YY/MM/DD) 42d. TOTAL CONTAINERS

TABLE OF CONTENTS

PART I-THE SCHEDULE

A. Solicitation/contract form Page 1 B. Supplies or services and prices/costs Page 5 C. Description/specifications/statement of work Page 9 D. Packaging and marking Page 20 E. Inspection and acceptance Page 24 F. Deliveries or performance Page 25 G. Contract administration data Page 30 H. Special contract requirements Page 35

PART II-CONTRACT CLAUSES

I. Contract clauses Page 67

PART III-LIST OF DOCUMENTS, EXHIBITS, AND OTHER ATTACHMENTS

J. List of attachments Page 70

PART IV-REPRESENTATIONS AND INSTRUCTIONS

K. Representations, certifications, and other statements of offerors Page 71 L. Instructions, conditions, and notices to offerors Page 79 M. Evaluation factors for award Page 93

SECTION B - SUPPLIES OR SERVICES AND PRICES/COSTS

B.1 TITLE

Financial Management and Oversight Support Services (FMOSS) to strengthen Program Execution.

B.2 PURPOSE

The purpose of this solicitation is to establish Blanket Purchase Agreements with one or more qualified vendors to provide Financial Management and Oversight Support Services for USAID/Nigeria’s activities, in accordance with the Statement of Work (SOW) contained in Section C of this solicitation.

B.3 PERIOD OF PERFORMANCE

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

B.4 BPA CEILING

The ceiling for this Blanket Purchase Agreement is $9.58 million. There is no minimum guarantee.

B.5 CALL ORDER TYPES

The Government will issue BPA Call Orders that are Firm-Fixed Price (FFP), and/or Labor Hour

(LH).

B.6 PRICE SCHEDULE

In order to perform the Statement of Work set forth in Section C, the Contractor must propose a price schedule using the template provided in Attachment D.1. 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 types as follows:

(1) Labor: The price schedule contains loaded hourly ceiling rates for work performed at any location designated in this BPA. “Loaded hourly rate” is defined as the direct hourly 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 hourly rates set forth in the schedule are fully burdened, not-to-exceed, ceiling prices. The contractors may, at their discretions, propose lower loaded hourly rates on a Call-by-Call Order basis.

a. Fixed Price Call Orders: The quantity of hours of each labor category will be multiplied by the loaded hourly rates listed in the price schedule or lower, and the cumulative extended total of all hours will define the fixed price labor amount for the task. The amount negotiated for travel and other Direct Costs (ODCs) will be added to the total labor amount to arrive at the Call Order total fixed price. Travel and ODCs can be reimbursed based on actual expenses incurred, not to exceed the negotiated ceiling on travel and ODCs or at a fixed price. Partial payments may be negotiated based on the completion of milestones.

b. Labor Hours and Time and Materials (T&M) Call Orders: The quantity of hours ordered of each labor category will be specified as deliverable hours billable at the rates specified in this schedule or lower as negotiated.

Travel and ODCs will be estimated for each call order. The cumulative extended total of all labor categories ordered plus travel and ODCs will define the call order ceiling price. The government will not reimburse the contractor for costs incurred beyond the ceiling price, for hours not delivered, for work performed in excess of the ordered labor pool amount, or for travel and ODCs exceeding the ordered pool amount. Labor dollars will not be used to pay for ODCs nor ODC dollars used to pay for labor without a modification to the call order.

(2) 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.

(3) Materials/Other Direct Costs (ODCs): ODCs which will be proposed and approved at the Call level includes the following:

(a) Communication; and,

(b) Printing.

(4) Travel: The Government will reimburse the cost of travel required in conjunction with performance of orders issued under the agreement. Reimbursement for travel is limited to that required in the performance of the order and expressed in the offeror’s ODC proposed budget.

Specific Government direction to attend meetings or gather information will be reimbursed on a cost reimbursable basis only. The Government will not pay travel charges for travel to and from the BPA holder employer’s home office location or to and from one company building to another (either within a company or to and from a prime to a sub company). Travel costs subject to reimbursement are limited to travel occurring at the direction of the Government, performed in conjunction with a specific requirement for a trip authorized in the order. Any administrative/clerical support travel costs will be considered and approved by the Contracting Officer on a case-by-case basis. Allowable costs include:

D.1 Travel;

D.2 Per diem (lodging and meals); and, D.3 Other travel related costs.

Note: Travel as stated above is not limited to airfare. It includes visas, Defense Base Act (DBA) insurance, taxis and local transportation, medical shots, and other costs associated with an assignment that requires travel as designated in the Foreign Affairs Manual (FAM) and General Service Administration (GSA) Federal Travel Regulation.

(5) Subcontracts: If the offerors propose to use subcontract labor under a Call Order, the loaded hourly Ceiling Rates included in this BPA will apply to all subcontracted labor. However, the contractors may propose discounted labor rates at the Call level and should do so where subcontract or in-country labor may be significantly less than loaded hourly Ceiling Rates.

B.8 INDIRECT COSTS AND ADVANCED UNDERSTANDING ON CEILINGS

(This Indirect Cost will also be applied on the Call Orders when necessary)

Pending establishment of a revised provisional or final indirect cost rates, allowable indirect costs will be reimbursed on the basis of the following negotiated provisional or predetermined rates and the appropriate bases for the contractor and the USAID.

Offeror Overhead Rate %

Overhead Ceiling Rate%

G&A

G&A Ceiling

Contractor (Insert Name)

*Special Note: The unshaded columns in the indirect cost table above are the current approved indirect cost rates for the vendor.

Vendors will make no changes in their established methods of classifying or allocating indirect cost without the prior written approval of the Contracting Officer.

Reimbursement for indirect costs will be at final negotiated rates, but not in excess of ceiling rates specified above. The Government will not be obligated to pay any additional amount associated with indirect costs above the ceiling rates established in the BPA. This advance understanding will not change any monetary ceiling, cost limitation, or obligation established in the BPA.

NOTE: For Fixed-priced Orders, the overhead ceilings serve as the basis for negotiation only.

NOTE: Indirect costs will not apply to fully burdened rates.

NOTE: The Vendors are allowed to recoup indirect costs (OH, G&A, etc.) as other direct costs if it is part of their usual accounting procedures, consistent with FAR 31 and the vendor’s

NICRA. Vendors may propose ceilings for other indirect rates as appropriate to their indirect rate structure.

NOTE: In accordance with FAR 52.232-7(b)(7), payment of fee on materials, which includes subcontracts for supplies and incidental services for which there is not a labor category specified in the contract is prohibited.

B.9 BILLING

Call Orders will cite the applicable hourly rates selected from the Price Schedule negotiated under the BPA. The hourly rates approved under the Call Order will remain in effect for the entire Call Order period. Any rates billed in excess of the hourly billing rates designated in the Call Order schedule will not be authorized. Each hourly rate listed in Section B.6 is "loaded" and must only include the following:

- Salary cost or consulting fee of the individual providing the services;

- Payroll costs (fringe benefits, FICA, etc.);

- Indirect costs applicable to labor; and,

- Profit or fee, if any.

Please note that fee on fee is not authorized. Fee on ODC’s and materials is not authorized.

B.10 TERMINATION

See FAR Clause 52.212-4 Contract Terms and Conditions—Commercial Products and Commercial Services (Nov 2021).

(END OF SECTION B)

SECTION C - DESCRIPTION/SPECIFICATIONS/STATEMENT OF WORK

C.1 STATEMENT OF WORK

C.1.1 BACKGROUND

Nigeria is Africa’s most populous country and largest economy, with abundant human and material resources. At the same time, it also faces a breadth of development challenges. Nigeria’s prosperity and development trajectory is challenged by poor governance, persistent insecurity and conflict, demographic pressures, resource constraints, untapped private sector economic opportunity, and high rates of poverty. To address these challenges, USAID/Nigeria (USAID) implements activities under the 2020-2025 Country Development Cooperation Strategy (CDCS) to support Nigeria and progress towards the ultimate objective of ending her need for development assistance. This involves supporting Nigeria to plan, fund, and manage its own development through strengthened capacity and commitment. Please refer to Appendix B1 for USAID/Nigeria 2020-2025 Country Development Cooperation Strategy (CDCS)

The goal of the CDCS is to support a healthier, more educated, prosperous, stable, and resilient Nigeria. USAID will make progress towards this goal, through the execution of an average annual program assistance budget of $435.3 million, for activities over the life of the CDCS, using a diversified base of implementing partners (IPs), with varying degrees of implementation capacities. Majority of these programs are implemented in some parts of Nigeria with security concerns that affect the Mission’s ability to maintain adequate program implementation oversight and accountability of USAID funds. USAID/Nigeria’s (the Mission) program portfolio is the largest in sub-Saharan Africa and implementation of the CDCS requires significant level of efforts from the support offices to maintain adequate financial management oversight and fulfill fiduciary responsibilities. In-house financial management capacity is challenged by the complexity and ever-growing size of the Mission’s program, the challenging operating environment, and the need to on-board new and non-traditional IPs. Therefore, there is the need to establish a robust platform to strengthen the Mission’s capacity to provide financial management support and oversight required to achieve the goals of the CDCS.

The CDCS draws on the Agency’s New Partnership Initiative (NPI) to expand and diversify the Mission’s partner base. The NPI builds on the networks, platforms, and resources of new potential partners, including non-traditional and underutilized partners, to expand and amplify the Mission’s work. The goal of the NPI is to increase the impact of USAID’s investments by elevating local engagement, fostering creativity and innovation, and mobilizing untapped resources across the Agency’s programs. Under this initiative, the Mission is working with several capable development organizations that were previously underused or did not compete for USAID funding, and established partners that are engaging new and underutilized partners through sub-awards. This will enable smaller organizations to lead in implementation. The Mission is making use of the NPI procurement and implementation approaches, such as co-creation and co-funding, pursuing an ambitious target of the U.S. President's Emergency Plan for AIDS Relief (PEPFAR) local partner initiative, and engaging more with local partners. This increases pressure on the Mission to strengthen local capacity and ensure organizational controls https://drive.google.com/file/d/1nsvvh5wTq_u3VH7em_L_y-M84KWhumA9/view?usp=sharing9dJd-51emaXOQCtWo8Jm6LL/view?usp=sharing https://drive.google.com/file/d/1nsvvh5wTq_u3VH7em_L_y-M84KWhumA9/view?usp=sharing9dJd-51emaXOQCtWo8Jm6LL/view?usp=sharing are in place. One of the major challenges of engaging with new partners is the complexity of working with USAID.

All organizations that receive U.S. government funding must follow U.S. laws and regulations.

Although USAID cannot waive these requirements, we can make them easier to understand and address. While it can be challenging to understand how to work with USAID, the NPI will advance new support mechanisms for prospective partners that have less experience. Therefore, there is the need to support the implementation of the Mission’s NPI action plan, to equip and empower new and underutilized development partners to maximize the impact of American tax dollars.

C.1.2 – OBJECTIVES

The Mission seeks the services of professional audit and assurance firms from USAID/Nigeria’s List of Acceptable Firms to provide financial management and oversight support services to further the Mission’s CDCS and the Agency’s NPI and localization efforts. The objective of this activity is to establish a robust platform that strengthens the Mission’s financial management capacity and supports the Mission’s approach to developing the local capacity of new and underutilized IPs. To accomplish these objectives, the Contractor will:

i. Identify, mitigate, and respond to, risks that arise in operations and in fulfillment of the Mission’s administrative, contractual and fiduciary responsibilities over U.S. government resources programmed in support of USG Foreign Assistance objectives.

ii. Maintain adequate financial management oversight over implementation of programs, and build the administrative, contractual, and financial management capacity of awardees, especially non-U.S. based recipients Support the implementation of the Mission’s CDCS and NPI Action Plan, to equip and empower new and underutilized development partners to maximize the impact of American tax dollars.

C.1.3 – GENERIC SCOPE OF WORK

The following scopes of work described in sections C.1.3-a to C.1.3-h, identify the general types of engagements that firms will be expected to undertake for USAID:

• C.1.3-a - Mission Contracted Audits.

• C.1.3-b - Pre-award Surveys.

• C.1.3-c - Fixed Amount Award (FAA) Entity Eligibility Review.

• C.1.3-d - Financial Reviews.

• C.1.3-e - Payment verification for milestone, award expenditure, cost share, and contributions.

• C.1.3-f - Agreed-upon procedures.

• C.1.3-g - Fraud Risk Assessment.

• C.1.3-h - Capacity Building and Technical Assistance

BPA Call Orders will be issued for every engagement and include a tailored scope of work that is adapted to the specific needs of the Mission. For each BPA Call Order, the firm will be responsible for performing the work requested by USAID. These requirements should be reviewed carefully before commencing work. In all cases, the firm will also be expected to comply with host government requirements and with local and U.S. professional standards.

For every BPA Call Order, USAID/Nigeria reserves the right to review the working papers1 of the Contractor to ensure that the engagement was done properly, and the opinion, findings, conclusion, or recommendations are supported with adequate evidence.

C.1.3-a – Mission Contracted Audits

The Contractor shall be required to conduct financial and performance audits for USAID IPs in accordance with applicable regulations and auditing standards and submitting a final report.

These engagements are based on auditing standards and guidelines issued by the U.S.

Government Accountability Office and U.S. Office of Inspector General (OIG). USAID/Nigeria expects the Contractor to conduct the following types of audits:

■ Financial Audits. Financial audits are conducted during award 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. For these types of engagement, the firm will be required to express an opinion on whether the fund accountability statement for the USAID funded programs presents fairly, in all material respects, revenues received, costs incurred, and commodities and technical assistance directly procured by USAID for the period audited; is in conformity with the terms of the agreements and generally accepted accounting principles or other comprehensive basis of accounting (including the cash receipts and disbursements basis and modifications of the cash basis). 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 https://www.usaid.gov/ads/policy/500/591.

Performance (Program) 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 https://www.usaid.gov/ads/policy/500/592. 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. The Mission requires support in reviewing

1 Working papers are records kept by the auditor of the procedures applied, the tests performed, the information obtained, and the pertinent conclusions reached in the engagement. The information contained in working papers constitutes the principal record of the work that the auditor has done and the conclusions that he has reached concerning significant matters.

https://www.usaid.gov/ads/policy/500/591 https://www.usaid.gov/ads/policy/500/592 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, however, under these engagements, the auditors will examine an organization's system of internal controls to identify any weaknesses in the controls designed to safeguard assets and to determine whether anyone in the organization has exploited control weaknesses to misappropriate assets for personal gain.

The auditors may perform one or both of the following, and other procedures require to achieve the objectives of the engagement:

• Investigative services which involve identifying asset-theft fraud and identifying the perpetrator. If such a situation exists, the auditor should contact the Contracting Officer's Representative (COR) and the cognizant regional Office of Inspector General, before proceeding to the next audit steps and procedures. The work and working papers may be subject to review and oversight by the cognizant regional OIG and/ or USAID/Nigeria.

• Litigation services which involve gathering evidence and giving testimony leading to the conviction of the perpetrator in a court of law.

• The auditor may be asked to assist in developing controls to provide reasonable assurance that the issue does not reoccur. The auditor will express an opinion on an organization's financial statements.

Other Audits. The Mission conducts other audits, such as locally incurred cost audits, internal control audits, and internal USAID audits of special or counterpart funds.

C.1.3-b: Pre-award Surveys.

For engagements of this nature, the Contractor shall examine the applicants’ systems to determine whether the prospective recipient has the necessary organization, experience, accounting and operational controls, and technical skills in order to achieve the objectives of the program, or whether specific conditions will be needed. The opinion and conclusion of the survey will provide reasonable assurance to USAID/Nigeria as to whether the potential Awardee has an acceptable organizational and management structure, accounting, financial management systems and other systems of internal controls, quality assurance capabilities, as well as acceptable policies, procedure, practices and can:

- meet activity goals and objectives;

- adequately safeguard, monitor, and efficiently utilize resources;

- obtain, maintain, and fairly disclose reliable data and information; and

- comply with applicable laws and regulations and has the institutional framework for sustainability.

The conclusions and recommendations of the Contractor as expressed in the final survey report guides the Mission in making a determination of responsibility of the potential Awardee. The result of the survey also guides the Mission in determining the appropriate method of payment to be used in a prospective award to the recipient.

The Contractor will be required to use the “Non-U.S. Organization Pre-Award Survey (NUPAS) guidelines (https://www.usaid.gov/sites/default/files/documents/1868/303sam.pdf), to conduct the survey. The NUPAS guidelines should be used as a basis for developing appropriate methodologies and a work plan to conduct the survey. The Contractor may adapt the guidelines appropriately to address the requirements of the specific engagement. The list of questions or test areas provided within the NUPAS guidelines are not considered all-inclusive or restrictive in nature, and do not relieve the Contractor 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 findings.

C.1.3-c: Fixed Amount Award (FAA) Entity Eligibility Review.

For engagements of this nature, the Contractor shall conduct reviews and examinations to assist USAID in determining the eligibility of the potential IP(s) to receive a Fixed Amount Award.

The Contractor will be required to use the USAID FAA entity eligibility checklist (https://www.usaid.gov/ads/policy/300/303mak), as a basis for developing appropriate methodologies and work plans. The Contractor may adapt the framework appropriately to address the requirements of the specific engagement. The list of questions provided within the checklist are not considered all-inclusive or restrictive in nature, and do not relieve the Contractor from exercising due professional care and judgment.

The opinion or conclusion should be adequately supported. USAID, through the COR, reserves the right to review the working papers to ensure that assessment was done properly.

C.1.3-d: Financial Reviews.

Financial reviews are based on GAO Standards for Attestation Engagements and Reviews of Financial Statements contained in Chapter 7 of the Government Auditing Standards published by the U.S. Government Accountability Office (GAGAS), https://www.gao.gov/assets/720/713761.pdf.

Financial reviews are more flexible and less invasive than an audit. They are performed as much for the benefit of USAID and the entity being reviewed.

The contractor will conduct reviews to provide USAID with limited assurance that adequate systems are maintained by the funded organization, to manage USAID funds in accordance with the terms and conditions of the award, and applicable USG regulations, policies, and procedures.

https://www.usaid.gov/sites/default/files/documents/1868/303sam.pdf https://www.usaid.gov/ads/policy/300/303mak https://www.gao.gov/assets/720/713761.pdf

Financial reviews are conducted during the implementation phase of the award to evaluate the effectiveness of the organization’s financial policies, systems, controls, and procedures established to implement USAID awards. This 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. These reviews may include specific transactions relating to account or ledger balances, procurement, non-financial reviews, marketing analysis, inventory controls, review of an entity’s financial accounting, cost elements reporting, financial statements or pro-forma, compliance with requirements of specified laws, regulations, rules, contracts, or grants, and organizational procedures and practices. The scope of these reviews may require the Contractor to 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 award to achieve the overall programmatic targets.

For comprehensive and efficient results, this type of review is risk-based. The Contractor will be required to use the financial review framework provided by USAID/Nigeria as the basis for developing appropriate methodologies and work plans to conduct the review. The Contractor may adopt a framework appropriate to address the requirements of the engagement. The list of questions provided within the framework are not considered all-inclusive or restrictive in nature, and do not relieve the Contractor 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.

These engagements may include providing actionable recommendations to strengthen the financial management capacity of IP(s) or improving their financial management systems to a level acceptable to USAID.

C.1.3-e: Payment verification for milestone, award expenditure, cost share, and contributions.

For tasks required under this category of services, the Contractor will provide verification services, to support USAID determination on accomplishment of award milestones, validity of award expenditures, and adequacy of cost share and counterpart contributions.

• Verification of award deliverables.

Verification services are required in agreements such as Fixed Amount Awards (FAAs) or Fixed Amount Reimbursable Agreements (FARAs) wherein USAID agree to reimburse an IP for accomplishment of mutually agreed upon award deliverables or milestones in a cost reimbursement award, including construction projects. Under this engagement, the Contractor will be expected to verify the accomplishment of award deliverables using guidelines agreed upon by both parties (USAID and the IP), 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 award deliverable, and recommendations for payment. Opinion, recommendations, and other conclusions reached shall be supported by evidence.

Project deliverables for verification may include, but are not limited to:

- 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.

• Verification of project expenditure, cost share or counterpart contributions.

The Contractor will be required to assess the partners’ fulfillment of mutually agreed contractual obligations in the following areas:

- Eligibility of expenditures and compliance with award terms.

- Eligibility and adequacy of cost share. The Contractor may be required to verify fulfillment of cost share requirements under grants and cooperative agreements to non-governmental organizations, both nonprofit and for profit, funded by USAID.

Cost share is generated where USAID or its partner identifies and arranges financial or in-kind support from counterpart organizations or independent non-governmental organizations to the benefit of a USAID award. Cost-sharing mobilizes additional financial resources and increases the coverage and effectiveness of USAID's limited budget resources. The Contractor will validate the elements of cost share and review the recipient's financial reports to ensure that the recipient is making progress toward meeting the required cost share.

- Eligibility and adequacy of Host Country Contribution requirements under bilateral agreements with Host Government entities.

C.1.3-f: Agreed-upon procedures.

These engagements are based on GAO Standards for Attestation Engagements and Reviews of Financial Statements contained in Chapter 7 of the Government Auditing Standards published by the U.S. Government Accountability Office (GAGAS), https://www.gao.gov/assets/gao-18- 568g.pdf, which apply to three levels of service—examination, review, and agreed-upon procedures—and can be applied to innumerable types of subject matter. An examination engagement results in an opinion; a review engagement results in a conclusion; and an agreed-upon procedures engagement results in findings. For engagements of this nature, the Contractor will provide USAID, with an opinion, conclusion, or findings regarding the reliability of the subject matter or an assertion about the subject matter, as measured against suitable and available https://www.gao.gov/assets/gao-18-568g.pdf https://www.gao.gov/assets/gao-18-568g.pdf criteria. The Contractor shall conduct engagements required to enhance the degree of confidence that USAID places in the subject matter.

Agreed-upon procedures engagements include examining, reviewing, or performing agreed-upon procedures on a subject matter or an assertion about a subject matter and reporting on the results.

The subject matter may take many forms, including historical or prospective performance, or condition, physical characteristics, historical events, analyses, systems and processes, or behavior. Attestation engagements can cover a broad range of financial or non-financial subjects and can be part of a financial audit or performance audit. Procedures performed on a subject matter (agreed-upon procedures) could include but not limited to reporting on:

- An entity’s internal control over financial reporting.

- An entity’s compliance with requirements of specified laws, regulations, rules, contracts, or grants.

- The effectiveness of an entity’s internal control over compliance with specified requirements, such as those governing the bidding for, accounting for, and reporting on grants and contracts.

- Prospective financial statements or pro-forma financial information.

- The reliability of performance measures.

- Extent of implementation of recommendations from prior audits, assessments, and financial reviews.

- Indirect cost rate proposal.

- Proper calculation and billing of de minimis rate.

C.1.3-g: Fraud Risk Assessment.

For engagements of this nature, the Contractor shall: assess the potential for fraud to affect Awardee’s ability to maintain operations and implement the award, identify vulnerability of the award to both internal and external fraud, and exposures where the internal control environment may have limitations. The scope of these engagements will require the Contractor to gain an understanding of where fraud could occur in the award and identify potential local schemes and scenarios impacting the implementation of the award.

These engagements may include recommending a Fraud Risk Response plan and a broad range program that encompasses controls to prevent, detect, and respond to incidents of fraud or misconduct. The Contractor may adapt the framework appropriately to address the requirements of the specific engagement.

C.1.3-h: Capacity Building and Technical Assistance

The Contractor will be engaged to provide services to support and strengthen the organizational capacity and practices of USAID/Nigeria’s existing and potential IPs, and target entities in furtherance of the Mission’s localization plan. Support shall be extended to sub-recipients through the Prime Recipients.

This category of services covers supporting and strengthening accounting, internal controls, 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. This could require helping organizations develop their vision, strengthen their institutional and staff competencies, build the networks required to improve their fiduciary performance, incorporate a strong internal control system, implement risk mitigation measures, and provide technical assistance.

Support under this engagement may include, but will not limited to the following:

• Governance and management structures: The Contractor will be expected to identify and define institutional changes that need to be fully implemented across for the organization to succeed. Because effective structural implementation requires continued efforts to address institutional bottlenecks, including with respect to ownership and governance, the Contractor will equip the team with good and relevant skills to step toward a stronger and well governed institution.

• Legal, Policy and Regulatory Frameworks: The Contractor will be expected to provide services relevant to improving performance in strengthening legal and regulatory frameworks relevant to fiduciary performance. Support is intended to help client organizations develop new and/or modified frameworks in ways that engage stakeholders and learn from and adapt existing, new, and/or modified frameworks.

• Implementation of management decisions: The Contractor will be expected to support target organizations to implement recommendations from audits, financial reviews, pre-award surveys, evaluations and assessments contracted by USAID/Nigeria, and achieve final action and closure. This includes supporting target organizations to improve their financial management and operating systems to a level acceptable to USAID/Nigeria.

• Outsourced financial management function: The Contractor may be asked to develop the management capacity of the organization or assume the financial management roles and responsibilities for a period of time during program implementation.

• Internal audit function: The Contractor may be asked to develop the internal audit capacity of the organization or assume the internal audit roles and responsibilities for a period of time during program implementation.

• Budget Planning: The Contractor will be expected to provide services relevant to improving budget planning processes. Support is intended to lead to improved performances in fiscal discipline; the allocation of resources; the efficiency and effectiveness of budget planning processes, including harmonization of horizontal and vertical budgeting processes; the transparency and accountability of, and citizen engagement in planning processes;

performance evaluation; etc.

• Financial Management Systems: The Contractor will be expected to provide services relevant to improving financial management systems. Support is intended to lead to improved performance in cash and accounts receivable management; budgetary controls, document storage and controls, fixed asset/inventory management; reporting relevant to decision-making; transparency and accountability (including but not limited to risk assessment, audit, and public reporting capabilities); adherence to accounting policies and practices consistent with local laws and standards, and the requirements of agreements with USAID/Nigeria; etc.

• Procurement Systems: The Contractor will be expected to provide services relevant to improving procurement systems. Support is intended to lead to improved performance in developing, strengthening and/or adhering to improved procurement procedures, particularly with regard to promoting open and competitive procurements; improved contract administration procedures and practices, including monitoring for performance and accountability; appeals mechanisms; use and respect for anti-corruption, anti-fraud and conflict of interest provisions; adherence to procurement policies and practices consistent with local laws and standards and the requirements of agreements with USAID/Nigeria; etc.

• Warehousing and Logistics Systems: The Contractor will be expected to provide services relevant to improving warehousing and logistics systems. Support is intended to lead to improved performance in assessing vulnerabilities and developing/implementing mitigation plans; employee management and supervision; record keeping; auditing of purchasing and billing processes; adherence to accountability and transparency policies and practices consistent with local laws and standards and the requirements of agreements with USAID/Nigeria; etc.

• Human Resource Management Systems: The Contractor will be expected to provide services relevant to improving performance in maintaining the integrity of financial management aspects of human resource management and reducing favoritism, discrimination, and workplace sexual harassment. Support is intended to help maintain the integrity of payroll lists and payment systems, improve the openness and transparency of hiring processes, reduce discrimination against women and other disadvantaged groups in hiring and promotion, reduce workplace-related sexual harassment and gender-based violence, and ensure adherence to human resource management policies and practices consistent with local laws and standards and the requirements of agreements with USAID/Nigeria; etc.

• Information Technology: The Contractor will be expected to provide services related to improving financial and non-financial information systems for effective internal controls, information processing, etc.

• Control Monitoring Systems: The Contractor will be expected to provide services relevant to improving performance in monitoring adherence of the client’s or potential client’s internal controls. Support is intended to lead to better quality data for stock-taking, decision-making, and reporting.

• Ethics Training, Leadership Building and Related Interventions: The Contractor will be expected to provide interventions that improve transparency and accountability.

Illustratively, this could include but is not limited to support for the development and education related to ethics codes; support for the development and marketing of ethics training courses delivered by local universities, accounting firms, etc.; supporting client organization studies of incentives and disincentives to accountability and risk management;

identifying champions and strengthening their capacity to lead change management exercises, build constituencies for reform, and engage the media; public education programs and media campaigns.

• Developing and implementing the policies and procedures (PnP) of the organizations:

The PnPs should be comprehensive enough to: address the accomplishment of program goals and objectives; safeguards the asset, obtains, maintains, and fairly discloses reliable data;

addresses allowability, allocability and reasonableness of costs; and complies with applicable laws and regulation.

• Support for USAID/Nigeria: The increased reliance on counterpart systems that is consistent with USAID/Nigeria’s CDCS will require USAID/Nigeria staff to acquire new and/or deepen existing competencies relevant to both internal and external responsibilities.

The Contractor will be expected to provide services that improve the performance of USAID/Nigeria staff in maintaining ethical and managerial standards consistent with USAID policies and regulations. Services could include training, mentorship and staff coaching; the conduct of assessments and analyses of fiduciary systems; and the development of new fiduciary tools and templates. The Contractor may also be required to provide logistics support for USAID/Nigeria organized or supported training that builds financial management capacity of USAID IPs or improve their knowledge of USAID audit and financial management rules and regulations.

• Procurement of Supplies: Procurement of any supplies USAID/Nigeria and the Contractor deem necessary to complement Contractor services.

• Training: The Contractor will assess training needs and procure or develop targeted trainings to strengthen organizational capacity of local organizations.

• Consulting: The Contractor shall provide technical assistance to local partner organizations in such areas as: (1) developing policies and procedures manuals, (2) reforming the organization structure to improve segregation of duties, (3) developing of internal control procedures, (4) improving human resource capacity, (5) strengthening financial and accounting systems, (6) improving financial management capability, (7) improving procurement systems, (8) developing branding and marking plans,, and/or (9) developing monitoring, administrative, and support capacities.

(END OF SECTION C)

SECTION D: PACKAGING AND MARKING

D.1 AIDAR 752.7009 MARKING (JAN 1993)

(a) It is USAID policy that USAID-financed commodities and shipping containers, and project construction sites and other project locations be suitably marked with the USAID emblem. Shipping containers are also to be marked with the last five digits of the USAID financing document number.

As a general rule, marking is not required for raw materials shipped in bulk (such as coal, grain, etc.), or for semi-finished products which are not packaged.

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

(c) Authority to waive marking requirements is vested with the Regional Assistant Administrators,…