SOL- 72065620R00016 - USAID Local Governance Strengthening (USAID LOGOS) - SF 30 -Amendment 01.pdf

AMENDMENT OF SOLICITATION/MODIFICATION OF CONTRACT 1. CONTRACT ID CODE PAGE OF PAGES 1 187

2. AMENDMENT/MODIFICATION NO.

Amendment 01 06/22/2020 4. REQUISITION/PURCHASE REQ. NO. 5. PROJECT NO. (If applicable)

6. ISSUED BY CODE 7. ADMINISTERED BY (If other than Item 6) CODE

OFFICE OF ACQUISITION AND ASSISTANCE

USAID/MOZAMBIQUE

JAT COMPLEX, RUA 1231, NO.41

MAPUTO, MOZAMBIQUE

Same as #6

8. NAME AND ADDRESS OF CONTRACTOR (No., street, county, State and ZIP Code) (X) 9A. AMENDMENT OF SOLICITATION

NO.

72065618R00008

9B. DATED (SEE ITEM 11)

10A. MODIFICATION OF CONTRACT/ORDER NO.

10B. DATED (SEE ITEM 13)

CODE FACILITY CODE

11. THIS ITEM ONLY APPLIES TO AMENDMENTS OF SOLICITATIONS

The above numbered solicitation is amended as set forth in Item 14. The hour and date specified for receipt of Offers X is extended, is not extended.

Offers must acknowledge receipt of this amendment prior to the hour and date specified in the solicitation or as amended, by one of the following methods:

(a) By completing items 8 and 15, and returning copies of the amendment; (b) By acknowledging receipt of this amendment on each copy of the offer submitted;

or (c) By separate letter or telegram which includes a reference to the solicitation and amendment numbers. FAILURE OF YOUR ACKNOWLEDGMENT TO BE RECEIVED AT THE PLACE DESIGNATED FOR THE RECEIPT OF OFFERS PRIOR TO THE HOUR AND DATE SPECIFIED MAY RESULT IN REJECTION OF YOUR OFFER. If by virtue of this amendment your desire to change an offer already submitted, such change may be made by telegram or letter, provided each telegram or letter makes reference to the solicitation and this amendment, and is received prior to the opening hour and date specified.

12. ACCOUNTING AND APPROPRIATION DATA (If required)

13. THIS ITEM ONLY APPLIES TO MODIFICATION OF CONTRACTS/ORDERS.

IT MODIFIES THE CONTRACT/ORDER NO. AS DESCRIBED IN ITEM 14.

CHECK ONE A. THIS CHANGE ORDER IS ISSUED PURSUANT TO: (Specify authority) THE CHANGES SET FORTH IN ITEM 14 ARE MADE IN THE CONTRACT ORDER NO.

IN ITEM 10A.

B. THE ABOVE NUMBERED CONTRACT/ORDER IS MODIFIED TO REFLECT THE ADMINISTRATIVE CHANGES (such as changes in paying office, appropriation date, etc.) SET FORTH IN ITEM 14, PURSUANT TO THE AUTHORITY OF FAR 43.103(b).

C. THIS SUPPLEMENTAL AGREEMENT IS ENTERED INTO PURSUANT TO AUTHORITY OF:

D. OTHER (Specify type of modification and authority)

E. IMPORTANT: Contractor X is not, is required to sign this document and return copies to the issuing office.

14. DESCRIPTION OF AMENDMENT/MODIFICATION (Organized by UCF section headings, including solicitation/contract subject matter where feasible.)

The purpose of this amendment is to:

1. Extend the closing date for submission of proposals to July 14, 2020.

2. Revise the solicitation as described in Attachment 01 – Revised RFP (167 pages)

3. Provide responses to the questions as described in Attachment 02 – Questions and Answers (19 pages) 15A. NAME AND TITLE OF SIGNER (Type or print) 16A. NAME AND TITLE OF CONTRACTING OFFICER (Type or print)

George Boateng – Contracting Officer

15B. CONTRACTOR/OFFEROR

(Signature of person authorized to sign)

15C. DATE SIGNED 16B. UNITED STATES OF AMERICA

(Signature of Contracting Officer)

16C. DATE SIGNED

NSN 7540-01-152-8070

Previous edition unusable

STANDARD FORM 30 (REV. 10-83)

Prescribed by GSA FAR (48 CFR

ATTACHMENT 01

REVISED Request for Proposals (RFP) No. 72065620R00016:

USAID Local Governance Strengthening (USAID LOGOS)

TABLE OF CONTENTS

SECTION B – SUPPLIES OR SERVICES/PRICES 1

B.1 PURPOSE 1

B.2 CONTRACT TYPE AND SERVICES 1

B.3 MAXIMUM CONTRACT CEILING 1

B.4 OBLIGATED AMOUNT, ESTIMATED COST, FIXED FEE 1

B.5 FIXED FEE CEILING 2

B.6 LABOR 2

B.7 LABOR (UNBURDENED) RATE CHANGES 3

B.8 INDIRECT COSTS AND ADVANCED UNDERSTANDING ON CEILINGS 3

SECTION C – DESCRIPTION/SPECIFICATIONS 5

C.1. INTRODUCTION 5

C.2. BACKGROUND 6

C.3. PURPOSE, OBJECTIVES AND RESULTS 25

C.4. TECHNICAL APPROACH 35

C.5. GENDER 41

C.6. LOCAL SYSTEMS 43

C.7. SELF-RELIANCE AND SUSTAINABILITY 43

C.8. YOUTH 44

C.9. CLIMATE CHANGE INTEGRATION 46

C.10. SCIENCE, TECHNOLOGY INNOVATION AND PARTNERSHIPS 46

C.11. TRANSPARENCY AND ACCOUNTABILITY 46

C.12. ENVIRONMENTAL COMPLIANCE CONSIDERATIONS 46

C.13. HOST GOVERNMENT, DONOR, AND OTHER COUNTERPART

COLLABORATION 47

C.14. GRANTS UNDER CONTRACTS (GUCs) 48

C.15. COLLABORATING, LEARNING AND ADAPTING (CLA) 49

C.16. MONITORING AND EVALUATION 49

SECTION D – PACKAGING AND MARKING 51

D.1 BRANDING STRATEGY, IMPLEMENTATION PLAN AND MARKING PLAN 51

D.2 BRANDING, IMPLEMENTATION PLAN AND MARKING PLAN 51

SECTION E – INSPECTION AND ACCEPTANCE 52

E.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE 52

E.2 INSPECTION AND ACCEPTANCE/RESPONSIBLE OFFICIAL 52

SECTION F – DELIVERIES OR PERFORMANCE 53

F.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE 53

F.2 PERFORMANCE PERIOD 53

F.3 PLACE OF PERFORMANCE 53

F.4 PERFORMANCE STANDARDS 53

F.5 REPORTS AND DELIVERABLES OR OUTPUTS 54

F.6 MANAGEMENT APPROACH/KEY PERSONNEL 62

F.7 QUALIFICATIONS OF KEY PERSONNEL 63

F.8 TECHNICAL APPROVAL REQUIREMENTS 63

F.9 ORDERING PROCEDURES 64

F.10 TASK ORDER ADMINISTRATION 68

F.11 KEY PERSONNEL 70

SECTION G - CONTRACT ADMINISTRATION DATA 73

G.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE 73

G.2 POINTS OF CONTACT 73

G.3 CONTRACTING OFFICER’S REPRESENTATIVE (COR) 73

G.4 CONTRACTOR’S PRIMARY POINT OF CONTACT 73

G.5 PAYING OFFICE 73

G.6 ACCOUNTING AND APPROPRIATION DATA 74

G.7 CONTRACTOR'S PAYMENT ADDRESS 74

G.8 TECHNICAL DIRECTION/RELATIONSHIP WITH USAID 74

SECTION H - SPECIAL CONTRACT REQUIREMENTS 77

H.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE 77

H.2 ADDITIONAL REQUIREMENTS FOR PERSONNEL COMPENSATION 77

H.3 AUTHORIZED GEOGRAPHIC CODE 78

H.4 DEFENSE BASE ACT (DBA) INSURANCE 78

H.5 INFORMATION SYSTEM SECURITY 78

H.6 EXECUTIVE ORDER ON TERRORISM FINANCING 79

H.7 ELECTRONIC PAYMENTS SYSTEM 79

H.8 SUBMISSION OF DATASETS TO THE DEVELOPMENT DATA LIBRARY (DDL)

(OCTOBER 2014) 80

H.9 USAID IMPLEMENTING PARTNER NOTICES (IPN) PORTAL FOR

ACQUISITION (JULY 2014) 81

H.10 NONDISCRIMINATION (JUNE 2012) 82

H.11 USAID DISABILITY POLICY - ACQUISITION (DECEMBER 2004) 83

H.12 302.3.4.13 GRANTS UNDER CONTRACTS (GUCS) 83

H.13 752.7007 PERSONNEL COMPENSATION. (JUL 2007) 86

SECTION I - CONTRACT CLAUSES 87

I.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE 87

I.2 FEDERAL ACQUISITION REGULATION (48 CFR Chapter 1) 87

I.3 AIDAR 48 CFR CHAPTER 7 90

I.4 52.209-9 UPDATES OF PUBLICLY AVAILABLE INFORMATION REGARDING

RESPONSIBILITY MATTERS (JUL 2013) 91

I.5 52.216-18 ORDERING (OCT 1995) 92

I.6 52.216-22 INDEFINITE QUANTITY (OCT 1995) 92

I.7 52.216-24 LIMITATION OF GOVERNMENT LIABILITY (APR 1984) 92

I.8 52.217-8 OPTION TO EXTEND SERVICES (NOV 1999) 93

I.9 52.219-13 NOTICE OF SET-ASIDE ORDERS (MAR 2020) 93

I.10 52.222-50 COMBATING TRAFFICKING IN PERSONS (JAN 2019) 93

I.11 52.222-56 CERTIFICATION REGARDING TRAFFICKING IN PERSONS

COMPLIANCE PLAN (MAR 2015) 101

I.12 752.245-70 GOVERNMENT PROPERTY – USAID REPORTING REQUIREMENTS

I.13 52.245-1 GOVERNMENT PROPERTY (JAN 2017) 104

I.14 752.202-1 DEFINITIONS (JAN 1990) 117

I.15 USAID DEFINITIONS CLAUSE - SUPPLEMENT FOR USAID CONTRACTS

INVOLVING PERFORMANCE OVERSEAS (DEC 1986) 118

I.16 752.204-2 SECURITY REQUIREMENTS 119

I.17 752.209-71 ORGANIZATIONAL CONFLICTS OF INTEREST DISCOVERED

AFTER AWARD (JUN 1993) 119

I.18 752.211-70 LANGUAGE AND MEASUREMENT (JUN 1992) 119

I.19 752.219-8 UTILIZATION OF SMALL BUSINESS CONCERNS AND SMALL

DISADVANTAGED BUSINESS CONCERNS 119

I.20 752.225-9 BUY AMERICAN ACT – TRADE AGREEMENTS ACT – BALANCE OF

PAYMENTS PROGRAM 120

I.21 752.225-70 SOURCE AND NATIONALITY REQUIREMENTS (FEB 2012) 120

I.22 752.228-7 INSURANCE – LIABILITY TO THIRD PERSONS 121

I.23 752.229-70 FEDERAL, STATE, AND LOCAL TAXES 121

I.24 752.242-70 PERIODIC PROGRESS REPORTS (OCT 2007) 121

I.25 752.245-71 TITLE AND CARE OF PROPERTY (APR 1984) 121

I.26 AIDAR 752.7005 SUBMISSION REQUIREMENTS FOR DEVELOPMENT

EXPERIENCE DOCUMENTS (SEP 2013) 122

I.27 752.7006 NOTICES (APR 1984) 123

I.28 752.7008 USE OF GOVERNMENT FACILITIES OR PERSONNEL (APR 1984) 124

I.29 752.7010 CONVERSION OF U.S. DOLLARS TO LOCAL CURRENCY (APR 1984)

I.30 752.7013 CONTRACTOR-MISSION RELATIONSHIPS (OCT 1989) 124

I.31 752.7015 USE OF POUCH FACILITIES (JUL 1997) 125

I.32 752.7025 APPROVALS (APR 1984) 126

I.33 752.7027 PERSONNEL (DEC 1990) 126

I.34 752.7029 POST PRIVILEGES (JUL 1993) 127

I.35 752.7031 LEAVE AND HOLIDAY (OCT 1989) 128

I.36 752.7033 PHYSICAL FITNESS (JUL 1997) 130

I.37 752.7034 ACKNOWLEDGMENT AND DISCLAIMER (DEC 1991) 131

I.38 752.7035 PUBLIC NOTICES (DEC 1991) 132

I.39 752.7101 VOLUNTARY POPULATION PLANNING ACTIVITIES (JUN 2008) 132

SECTION J - LIST OF DOCUMENTS, EXHIBITS AND OTHER ATTACHMENTS 134

SECTION K - REPRESENTATIONS, CERTIFICATIONS, AND OTHER STATEMENTS OF

BIDDERS 135

K.1 NOTICE LISTING SOLICITATION PROVISIONS INCORPORATED BY

REFERENCE 135

K.2 52.204-8 ANNUAL REPRESENTATIONS AND CERTIFICATIONS (MAR 2020)135

SECTION L - INSTRUCTIONS, CONDITIONS, AND NOTICES TO BIDDERS 140

L.1 NOTICE LISTING SOLICITATION PROVISIONS INCORPORATED BY

REFERENCE 140

L.2 GENERAL INSTRUCTIONS TO OFFERORS 140

L.3 INSTRUCTIONS FOR THE PREPARATION OF THE TECHNICAL PROPOSAL 144

L.4 PROPOSED COST/PRICE 149

L.5 INSTRUCTIONS FOR THE PREPARATION OF THE COST/BUSINESS

PROPOSAL 150

SECTION M - EVALUATION FACTORS FOR AWARD 156

M.1 GENERAL INFORMATION 156

M.2 DETERMINATION OF COMPETITIVE RANGE 156

M.3 COST/PRICE EVALUATION 156

M.4 SOURCE SELECTION 157

M.5 TECHNICAL EVALUATION CRITERIA 157

ATTACHMENT J.1 - CONTRACTOR EMPLOYEE BIOGRAPHICAL DATA SHEET 161

ATTACHMENT J.2 – PAST PERFORMANCE REFERENCE SUMMARY TABLE 162

ATTACHMENT J.3 – BUDGET SUMMARY TEMPLATE 163

ATTACHMENT J.4 – ILLUSTRATIVE WORKPLAN 164

ATTACHMENT J.5 – SUBCONTRACTING PLAN TEMPLATE 165

ATTACHMENT J.6 – LOCAL STAFF SALARY RATES 166

PART I – THE SCHEDULE

SECTION B – SUPPLIES OR SERVICES/PRICES

B.1 PURPOSE

The purpose of this contract is to provide services that fall within the Scope of Work (SOW) specified in Section C for USAID’s Local Governance Strengthening program. USAID Task Order Contracting Officers (TO COs) will request the work through the issuance of task orders during the ordering period as specified in Section F of the contract.

B.2 CONTRACT TYPE AND SERVICES

This is a single-award Indefinite Delivery/Indefinite Quantity (IDIQ) type contract. The Government will issue task orders that are Cost-Plus-Fixed-Fee (CPFF) completion, or any Fixed-Priced type. The Contractor must perform the services set forth in task orders at prices consistent with Section B of this contract.

B.3 MAXIMUM CONTRACT CEILING

This is a single award Indefinite Quantity Contract (IDIQ) with an overall ceiling price of $19,500,000 for 5 years. The maximum aggregate dollar value of task orders awarded to the contractor must not exceed the contract ceiling.

The Total Estimate Cost for the Task Order is between $5,500,000 and $5,850,000.

B.4 OBLIGATED AMOUNT, ESTIMATED COST, FIXED FEE

B.4.1 Obligated Amount

The Task Order includes an initial obligation of funds that will exceed the minimum order requirement of $1,950,000.

B.4.2 CPFF Task Orders The Total Estimated Cost-Plus-Fixed-Fee (CPFF) completion for each task order will be negotiated in accordance with the terms of the IDIQ contract and must be appropriate for the SOW defined in each Request for Task Order Proposal (RFTOP). In no event may the indirect rates or fixed fee for a task order exceed the ceilings set forth in Section B.4.4 and B.5 of this IDIQ contract.

The U.S. dollar costs must be limited to reasonable, allocable, and allowable costs determined in accordance with Federal Acquisition Regulation (FAR) 52.216-7, Allowable Cost and Payment, and FAR 52.216-8, Fixed Fee, FAR 31.3 and AIDAR 731.3 (for universities) and FAR 31.7 and AIDAR 731.7 (non profits).

B.4.3 Fixed Fee Payment Depending on whether a CPFF task order issued under this contract is completion type, a reasonable portion of the Fixed Fee will be paid by USAID and specified in the schedule of each Task Order. The Fixed Fee payment schedule in each task order must be commensurate with progress made to justify payment, up to the total agreed amount of Fixed Fee. Because the clauses entitled "Allowable Cost and Payment" (FAR 52.216-7) and "Fixed Fee" (FAR 52.216-8) are incorporated into this contract, the terms and conditions of these clauses apply after total payments of fixed fee reach eighty five percent (85%) of the total fixed fee.

REVISED Request for Proposals (RFP) No. 72065620R00016 USAID Local Governance Strengthening (USAID LOGOS)

B.4.4 FFP Task Orders The Firm-Fixed Price for each task order will be negotiated based on the price to complete the work in its entirety. After acceptance of a FFP task order by the Contractor, the task order price will only be adjusted to reflect changes in scope or conditions governed by other clauses (Changes, Differing Site Conditions, etc.).

Cost reimbursable line items may be allowed in Fixed Price task orders for elements of the task order that cannot be reasonably estimated.

B.5 FIXED FEE CEILING

(a) For each cost-reimbursement task order issued under this IDIQ, the TOCO and Contractor agree to negotiate a set dollar amount or percentage for fixed fee. In negotiating the fixed dollar amount/percentage for fee, the TOCO must consider the policies and factors for establishing fee in FAR 15.404-4 as well as any applicable USAID policy on establishing a fixed fee amount/percentage. In no event, however, may the amount of fixed fee in any individual task order exceed TBD at the time of award of the task order’s estimated cost).

This fee ceiling is not applicable to Grants under Contracts (GUCs), if any, or other costs that have a separate fee ceiling established in the contract. The fixed fee ceiling applies to the prime contract and all cost reimbursement subcontracts.

(b) The Total Estimated Cost -Plus- Fixed- Fee for each Task Order must be negotiated in accordance with the terms of this contract.

(c) Fixed Fee Payment. For any Task Order issued under this Contract, at the time of each payment of allowable costs to the contractor, the USAID paying office ordinarily pays the contractor a percentage of fixed fees that directly corresponds to the percentage of allowable costs being paid. Two exceptions to paying fixed fee in this manner apply:

(1) If the TOCO determines that this method results in paying a disproportionately higher ratio of fixed fee than the percentage of work that the contractor has completed, then the TOCO may suspend further payment of any fixed fee until the contractor has made sufficient progress to justify further payment, up to the agreed percentage.

(2) Because the clauses entitled "Allowable Cost and Payment" (FAR 52.216-7) and "Fixed Fee" (FAR 52.216-8) are incorporated into this Contract, the terms and conditions of these clauses apply after total payments of fixed fee reach eighty-five percent (85%) of the total fixed fee.

B.6 LABOR

(a) Compensation: Compensation of personnel under this contract or any resulting subcontract must be in accordance with AIDAR 752.7007 Personnel Compensation (July 2007) and section H.7 of the IDIQ.

(b) Salary Approval: Acceptance of the Contractor labor rates presented during IDIQ or task order negotiation does not constitute approval of final salary rates above the Contractor Salary Threshold (CST). (ADS 302.3.6.10). All TOCOs will comply with the approval requirements in ADS 302.

(c) Labor Categories: The Contractor shall furnish personnel with the necessary education, training and/or relevant experience, as specified in the task orders to be issued under this contract. Task order proposals must justify proposed rates to the satisfaction of the TOCO.

(d) Locally Hired National Personnel or Other Non-U.S. Expatriates

(1) Third Country Nationals (TCNs) and Cooperating Country Nationals (CCNs) who are working in the United States or are legal residents of the United States at the time they are hired, must be extended benefits and subject to restrictions on the same basis as U.S.

citizens who work in the United States. The U.S. labor rates may be applied to TCNs and CCNs conforming to this regulatory provision.

(2) Salaries for locally-hired personnel and other non-U.S. labor under this contract or any resulting subcontract must be in accordance with AIDAR 752.7007, Personnel Compensation (July 2007) and Section H.7 of the IDIQ.

(3) Pursuant to AIDAR 722.18, the total compensation for locally hired CCN and TCN labor shall be consistent with the contractor’s established policies and procedures and the total mix of cash and non-cash payments shall not exceed, without Mission approval, the total, prevailing compensation paid to personnel performing comparable work in Mozambique.

B.7 LABOR (UNBURDENED) RATE CHANGES

The labor rates are fixed for all contract years; however, the Contractor may submit a proposal reducing the labor rates and/or indirect rates at any time during the life of this contract. The Government will review these proposals and determine if the revised rates are realistic and in the best interests of the Government. If the rates are accepted, the Government will modify the contract by incorporating the new rates into the contract.

B.8 INDIRECT COSTS AND ADVANCED UNDERSTANDING ON CEILINGS

[Ceilings are not applicable to Small Business Offerors or local organizations serving as the prime or a subcontractor. Indirect rates are only applicable to cost reimbursement task orders.]

Pending establishment of revised provisional or final indirect cost rates, allowable indirect costs must be reimbursed on the basis of the following negotiated provisional or predetermined rates and the appropriate bases for prime contractors and their major subcontractors.

Offeror Fringe Rate % Overhead Rate % Overhead Ceiling Rate % G&A Rate % G&A Ceiling Rate %

PRIME (Insert Name)

Base of Application

Source: (insert)

Period: (insert)

SUBCONTRACTOR(S) (Insert Name (s))

Base of Application

Source: (insert)

Period: (insert)

NOTE: Insert additional indirect rates as needed for all primes and major subcontractors in the above table.

*Special Note: The un-shaded columns in the indirect cost table are the current approved indirect cost rates for the prime and major subcontractor(s).

The Contractor will make no change in its established method of classifying or allocating indirect costs that impacts this contract without the prior written approval of the Contracting Officer.

Reimbursement for indirect costs must be at final negotiated rates, but not in excess of ceiling rates specified above.

The Government must not be obligated to pay any additional amount associated with indirect costs above the ceiling rates established in the contract. This advance understanding must not change any monetary ceiling, cost limitation, or obligation established in the contract.

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

Note: Contractors are allowed to recoup indirect costs (OH, G&A, etc.) as other direct costs if it is part of the contractor’s usual accounting procedures, consistent with FAR Part 31 and the contractor's NICRA.

(END OF SECTION B)

SECTION C – DESCRIPTION/SPECIFICATIONS

C.1. INTRODUCTION

USAID LOGOS is an integrated, cross-sectoral, sub-national governance improvement effort designed to support the Government of the Republic of Mozambique (GRM) efforts to decentralized governance to improve delivery of public services at central, provincial, district and/or municipal levels. Implementation of the program will be closely coordinated with USAID’s current and future media support, civil society strengthening, water, sanitation and hygiene (WASH), primary health, primary education, biodiversity, agriculture, business environment, extractive industries, community resilience and peacebuilding activities.

Coordination with additional USAID activities will be required during program implementation.

The integrated cross-sectoral project will contribute more broadly to the achievement of two USAID/Mozambique Development Objectives (DOs) described in its Country Development Strategy Statement 2014 – 2020: DO 1. Democratic Governance of Mozambican Institutions Strengthened and will be supported through contributions to Intermediate Result (IR) 1.2:

Improved Effectiveness, Transparency, and Accountability of Key Government Institutions1 .

“Key Government Institutions” in this case are the institutions of sub-national governance.

Achievement of DO 2: Resilient, Broad-based Economic Growth Accelerated, will be advanced through program support for local economic development activities by participating sub-national governments. Participating sub-national governments will include provinces, districts, and municipalities, but, at all levels of government, the economies of most sub-national governments are likely to include a substantial level of agricultural production, marketing, transport, processing and/or warehousing. Indeed, in Mozambique, broad-based economic growth is difficult to conceive without involvement of smallholder agriculture.

USAID’s LOGOS will conduct activities with all levels of GRM, including support to central ministries responsible for coordination of sub-national units of government, as well as technical assistance to all principal types of sub-national government subject to coordination by central government (provinces, districts and municipalities). Improvement of sub-national governance will involve simultaneous, multi-faceted efforts to strengthen sub-national societies; to strengthen productive capacities of governments, the private sector, civil society, and therefore disadvantaged groups.2

Mozambique’s substantial natural resources endowment—including the world’s fifth-largest natural gas reserves—and accompanying anticipated GRM revenues are believed to be a dominant determinant of Mozambique’s mid and long-term future. Substantial natural resource revenues are well known to provide both opportunities and hazards. The program described

1 USAID/Mozambique, Country Development Cooperation Strategy,2014 – 2020.

2 USAID expects to have a separate civil society strengthening mechanism.

herein is part of USAID’s effort to help prepare the GRM and its citizens to deal wisely with the anticipated revenues.

USAID envisions implementation of a five-year, integrated Single-award Indefinite Delivery/Indefinite Quantity (IDIQ) contract to support a cross-sectoral local governance improvement program, with potential funding expected to total approximately $19.5 million.

Implementation of an integrated, cross-sectoral program requires extensive coordination of project plans and activities with many other relevant parties.3

C.2. BACKGROUND

Recent GRM changes in the legal framework for sub-national governance were negotiated in a peace process between the Government of Mozambique and the main opposition RENAMO party. FRELIMO led a successful fight against Portuguese colonial rule and has elected every national President, with a controlling majority in parliament, in every government. RENAMO originated as an armed guerilla group and alternative contender for national leadership that has never completely disarmed and continues to engage in occasional sporadic violence against government facilities and personnel. USAID’s program is one of several donor-supported sub-national governance improvement programs currently being developed in the effort to support the peace process. Other relevant programs include those supported by The World Bank, The United Kingdom Department of International Development (DFID), Swiss Cooperation, The Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), and the European Union.

USAID’s sector program development activities include coordination with the plans of other donor programs, and implementation will be fully coordinated with other USAID programs (various sectors) and other donor-supported sub-national governance support programs.

Assistance to Governments

The objective of USAID LOGOS activity is to support the priorities and objectives of the GRM, primarily, the two main ministries that are mostly involved in guiding the ongoing decentralization process – the Ministry of State Administration and Public Service (MAEFP), and the Ministry of Economy and Finance (MEF) – as well as with the parliamentary leadership of the three major political parties – FRELIMO, RENAMO and MDM – and authorities at the provincial, district and municipal levels in the Nampula, Zambezia and Cabo Delgado Provinces.

Coordination with and among the various units of sub-national government is a major responsibility of MAEFP, and assistance to coordination processes was proposed as a high priority need. USAID’s LOGOS’s assistance to sub-national governments to improve public financial management and own-source revenue generation will be consistent with MEF’s expectations. Support for improvement of sub-national public services is a significant

3 USAID policies concerning local systems, appropriate risk taking, consistent messaging, applied political economy analysis, CLA, self-reliance and MEL are discussed in the following Sections: C.6. Local Systems; C.7. Self-reliance and Sustainability ; C.15. Collaborating, Learning and Adapting (CLA) and C.16. Monitoring and Evaluation. .

contribution to domestic political and social stability and a widely acknowledged need at central and sub-national levels.

“Systemic” assistance to decentralized governance in Mozambique is desirable because the current system combines intended central coordination with numerous shared responsibilities across multiple types of heterogeneously devolved, delegated, and deconcentrated units.

USAID’s LOGOS’s systemic approach is consistent with MAEFP’s expressed desire for USAID assistance to improve national coordination of sub-national government activities. Increasing the quantity and quality of sustainable, resilient local public services, provided by participating subnational governments, will be a central objective of USAID’s program.

The following example adds credence to USAID’s decision to emphasize assistance to system coordination:

“Many municipalities have been investing a substantial proportion of their capital investment funds in improving local health and education facilities, largely in response to the demand from local communities for such facilities (and despite the fact that responsibility for delivery of health and education services has not been devolved to municipalities). However, in a number of cases these investments have been wasted due to the inability of local education and health sector officials to plan future availability of staff, or due to changes in the criteria laid down for the design of these facilities.” 4Little has changed in the 17 years since this was written.

USAID’s LOGOS will engage devolved municipal governments, provincial governments (which are in the process of being devolved following the October 2019 elections), and deconcentrated district governments (scheduled to become devolved following the national elections of 2024).

Devolved and deconcentrated sub-national governments provide multiple public services.

Delegated units of government are often regulators, financiers, even operators of a single public service. Examples of delegated units of government are Fundo de Investimento e Património do Abastecimento de Água (FIPAG) and Conselho de Regulação do Abastecimento de Água (CRA).

FIPAG constructs, maintains and operates potable water supply systems and CRA is the systems regulator. USAID’s integrated program may involve delegated units of government where they are integral to provision of a public service. Delegated units are particularly prominent in the supply of potable water. Improvements in potable water supply are highly likely to involve work with the delegated agencies. At a minimum, it will involve cognizance of the functions and responsibilities of delegated sector agencies.

The geographic focus of program activities will be the provinces of Nampula, Zambézia and Cabo Delgado, and 8 to 15 selected district and/or municipal governments located in the selected provinces. Support in these three provinces will target the three levels: provincial, district and

4 Harding, Alan, Eduardo Nguenha and Théogene Turatsinze. 2003 Creating an Enabling Environment for Local Economic Development in Mozambique: The Role of Municipalities. Swiss Agency for Development & Cooperation (SDC), Mozambique. Page 11 municipal. Coordination of selected USAID program activities with MAEFP and MEF is likely.

Program coordination with public service providing ministries [e.g. Ministry of Education and Human Development (MINEDH, Ministério de Educação e Desenvolvimento Humano);

Ministry of Public Works, Housing and Water Resources (MOPHRH - Ministério das Obras Públicas, Habitação e Recursos Hídricos); Ministry of Gender, Children and Social Services (MGCAS, Ministério de Género, Criança e Acção Social); Ministry of Health (MISAU, Ministério da Saude) and Ministry of Higher Education, Science and Technology (MESCT, Ministério do Ensino Superior, Ciência e Tecnologia)] is also anticipated.

Through this project, USAID intends to emphasize data-driven decision making, based on the perception that current intergovernmental relationships and decisions tend to be neither transparent nor data driven. USAID’s intention is informed by its work with Mozambican civil society organizations that have been able to influence government decisions through intelligent use of empirical data. Transforming the current, sometimes contentious dialogue, demands that USAID implementing partners (IPs) be transparent, reliable sources of relevant empirical data;

trusted, to the extent possible, by all parties. Program events and processes should, whenever possible, support the production and discussion of relevant empirical data by participants (central and sub-national), and/or be informed by relevant empirical data from program and/or outside sources.

USAID’s selection of targeted service improvements is contingent on the current authorized service delivery responsibilities (competências) of participating sub-national governments, current and future sub-national government decisions regarding the exercise of authorized service delivery responsibilities, and current and future decisions of central ministries to encourage/discourage decentralization of service delivery. Provision of potable water and basic sanitation by district and municipal governments is a current common practice. Provision of primary health services and primary education by districts, with tutelage of responsible central government ministries, is widespread. Municipal governments are formally eligible to assume responsibility for primary health and primary education, but very few have assumed those responsibilities. Program activities are intended to assist interested local governments to prepare themselves to assume increased service delivery responsibilities.

If participating sub-national governments show sufficient interest in primary health care and primary education, USAID expects the cumulative effects of the five-year, integrated, cross sectoral, sub-national governance improvement project to be measurable through application of the World Bank Service Delivery Indicators for primary health and basic education in Africa5.

Additional donor/lender funded governance improvement projects in Mozambique currently being planned also contemplate the use of the World Bank Service Delivery Indicators for Africa.

Program technical assistance to participating governments may include:

5 According to the World Bank, Service Delivery Indicators do not include indicators for the WASH sector, as WASH service delivery is more effectively measured via household surveys.

1) Support to central ministries (principally MAEFP, possibly MEF) to prepare administrative regulations necessary to implement recent decentralization laws and to prepare explanatory materials to inform sub-national governments regarding content of recent decentralization laws.

2) Support to central government communication and coordination with participating sub-national government units in the targeted geographic areas.

3) Support for coordination and joint planning processes among participating sub-national constituent government units, i.e. province – district, province – municipal, and/or district

– municipal coordination and planning, where coordination and planning facilitate fulfillment of shared service responsibilities and interests.

4) Support for improved public financial management and increased mobilization of own-source revenues by sub-national governments.

5) Support for improvement of planning and budgeting processes and preparation of specific service improvement plans, with participating sub-national governments.

6) Support for applied research on current and alternative public service delivery systems.

7) Support for local private sector economic initiatives, encouragement of local and national private sector participation in program activities, and assistance for efforts by sub-national governments to analyze, plan and catalyze local economic growth;

8) Support to sub-national governments responsible for basic sanitation and/or potable water supply in all aspects of assessment of needs, planning, provision, expansion, operation, and sustainable system maintenance, in close coordination with other USAID WASH activities;

9) Support to sub-national governments to improve the local doing business index6.

10) Support local government initiatives to foster citizen participation in governance and improve transparency and accountability; and

11) Other needed technical assistance as revealed by program efforts and interests.

C.2.1. Background and Problem Analysis

The people of Mozambique, indeed, most people in Low Income Countries (LICs) in Africa, have very limited abilities to represent themselves in the economic and political exchange processes that occur in modern markets and national political institutions. Social scientists, following Amartya Sen7, describe such persons as having low “agency.” USAID’s LOGOS will be a focused effort to strengthen local governance in complementarity with other relevant USAID activities to strengthen citizen agency, focused primarily to Nampula, Zambezia, and

6 World Bank. 2019. Doing Business in Mozambique 2019. Washington, DC:

World Bank. License: Creative Commons Attribution CC BY 3.0 IGO, https://www.doingbusiness.org/ content/dam/doingBusiness/media/Miscellaneous/SubNational/Doing-Business-in-Mozambique-2019_Eng.pdf 7 Amartya Sen. 1999. Development as Freedom. Oxford University Press.

Cabo Delgado provinces. Increases in the personal agency of individuals and, by extension, the social agency of groups of citizens, can be conceived as both cause and effect of development.

The World Bank World Development Report 2019, “The Changing Nature of Work” (WDR) focuses on a very similar concept: human capital. Since the World Development Report does not include an actual definition of “human capital,” the term is used interchangeably with “agency” in this document.8 As usual, the World Development Report 2019 is filled with information and complexity that lays out a compelling case that the governments of the African LICs face an urgent need to improve the human capital of their citizens in order to cope with powerful, rapid changes in technology.9

“Innovation will continue to accelerate but developing countries will need to take rapid action to ensure they can compete in the economy of the future. They will have to invest in their people with a fierce sense of urgency especially in health and education, which are the building blocks of human capital to harness the benefits of technology and to blunt its worst disruptions. But right now, too many countries are not making these critical investments.”10

National Human Capital Index scores (HCIs) have a theoretical range from 0 to 1.

Mozambique’s HCI in 2019 was 0.36. This score placed Mozambique in the 148th place in a total of 157 ranked countries. The sources of improved human capital, as identified by the World Bank, are crucial to the rationale for USAID’s proposed program. Primary sources identified in the WDR are high quality early childhood learning, high quality formal education (primary, secondary and tertiary), effective health care, and “on the job” learning through work experiences and formal skills training, especially corporate, formal sector work experiences.

Program Learning

An effort to improve and sustain local public services, especially a pioneering effort to improve personal agency, is unlikely to produce short-term benefits at the USAID Development Objective level. There is no known recipe for this endeavor and the IP cannot be held accountable for measured increases in personal agency/human capital. Lacking a recipe for program success means that early program actions must target learning as a high priority.

USAID’s Collaboration, Learning and Adaptation framework is designed for these circumstances. Program activities will be focused on improving services, but, in the near-term, because there is no known recipe, learning may very well be more important than immediate impacts on services. For example, rather than selecting a presumed “best way” to improve a targeted service, based on current knowledge, the program could choose to test alternative credible approaches to improving a service; thus, prioritizing learning over immediate results.

IPs will be responsible for documentation of expected program results beforehand and a detailed

8 In standard usage, “agency” is more commonly used to speak of political participation and “human capital” is more frequently used to refer to economic activities.

9 For an understanding of the World Bank’s Human Capital Index, and how it is calculated, see World Bank (2019a) World Development Report 2019: The Changing Nature of Work, pages 155 – 167.

10 World Bank (2019a) World Development Report 2019: The Changing Nature of Work, vii logic that informs attribution of those results to specific program activities (a hypothesis) each time that an adaptation is made.

The overarching purpose of program learning is to inform sustained improvements to selected sub-national government services. Measurement of improvements to public services demands a baseline measurement of quantities and qualities of targeted services in targeted units of government. The World Bank Service Delivery Indicators (SDI) for Africa are a potential framework in which to monitor, analyze and improve quantities and qualities of health and education services. Sampling procedures for the World Bank’s planned repetitions of SDI surveys in Mozambique (planned at 2 to 3-year intervals) will produce results valid at the national level only. If monitoring and evaluation of USAID’s program relies on SDIs, USAID will have to conduct SDI surveys in participating Mozambican schools and health centers.

USAID anticipates that Implementing Partners must conduct at minimum a total of two surveys at the beginning and at the mid-term of program implementation.

An important objective of USAID’s LOGOS is for all program participants, USAID, IPs, other donors supporting local governance and service delivery improvement, and, most of all, the GRM and its intended service providers, to learn how to optimize the production and delivery of targeted services within the constraints and opportunities of current and intended systems of subnational governance. USAID intends that program actions and program learning (and, hopefully, subnational government decision-making) be explicitly and transparently data informed, while realizing that data alone seldom forms an adequate basis for public sector decision making.

USAID’s intended integrated service delivery improvement project will support systemic improvements to decentralized delivery of public services at all levels of government, emphasizing the need for, and potential gains from, improved coordination and communication across multiple, heterogeneous units of government. USAID’s LOGOS will take every opportunity to utilize and produce empirical data about focal problems and services in its assistance to coordination and communication between units of government.

Through this program, USAID intends to support the MAEFP in exercising its assigned responsibilities for system-wide coordination. In addition, USAID intends to support planning and coordination of efforts by sub-national units of government, i.e. provincial – district coordination, provincial – municipal coordination and municipal – district coordination and provincial – district – municipal coordination, where there are shared attributes and competencies for targeted services.

The integrated, cross-sectoral service delivery improvement program will -contribute, as requested by participating sub-national governments, on improvement of the following public services provided by provincial, district and/or municipal governments: primary education;

primary health care (including public health activities); public sanitation; provision of potable water (emphasizing durability and sustainability of potable water sources); extension services for smallholder farmers; technical-professional education; and assistance to the private sector

(business environment). These services have been selected in accordance with the following rationale:

1) Responsibility for provision of these services is, in many cases, a shared competency of central, provincial, district and municipal governments that is likely to be improved through effective coordination across units of sub-national government.

2) Primary health care and primary education are “second level” services, requiring significant specialized knowledge, relatively complex technologies and substantial investments and operating costs; and

3) Improvements in the selected services have predictable positive economic impacts and identified direct contributions to improvements in human capital/individual agency.

Early project activities should include close examination of the covariance of the incidence of “competência” (roles and responsibilities) and real-world provision of the service authorized by the competência (roles and responsibilities). USAID implementers will need to understand:

Which kinds of governments share which specific competências (roles and responsibilities)?

What factors play a role in influencing uptake of additional public services by governments holding a particular competência (roles and responsibilities)? and, which governments, or types of governments, are most interested in providing additional public services?

Points (2) and (3) of the preceding service selection rationale imply a possible “laddering up” of service delivery capacities, from relatively simple, less complex services, perhaps lower-cost services, to more complex, perhaps more expensive services. It is unclear whether this actually occurs in current sub-national government practice. Relatively few cases are known to USAID in which municipal governments have taken on additional complex services. District and provincial governments are responsible for complex services (health and education), under the current deconcentrated structure. Early program activities might well include investigating the extent to which subnational governments are interested in providing more, and more complex, services, and understanding central government views of desirable/required indicators of subnational government capacities to engage in higher order services.

It is essential for USAID’s LOGOS, working with officials and participants, to develop an understanding of how real-world advances in service delivery capacities have been achieved in practice. It is also essential that USAID’s LOGOS proffer solutions appropriate to near-term available Mozambican resources. USAID is confident that resilient solutions will emphasize inclusion and effective participation of previously marginalized groups, organized civil society groups, local formal and informal private sector interests, and multiple cooperating levels of the GRM in accordance with shared competências (roles and responsibilities). Inclusion, as used here, implies both socio-political inclusion and economic inclusion. Inclusion implies both a right to participate in decision making and a means-tested responsibility to contribute resources to solutions. Inclusion suggests involvement of non-state actors in both service delivery planning and in the production of local public services.

The program will also provide assistance to participating provincial governments, as requested, to improve provincial provision of secondary and tertiary education, and technical/professional training. District and municipal governments do not share these competências (roles and responsibilities). Activities in these service areas have the potential to improve primary education teacher training and to improve local economic development impacts and human capital development through workforce training.

USAID’s LOGOS will provide technical assistance to participating subnational governments, as requested, in the following areas:

(1) Own-source revenue generation, for governments authorized such revenues, to the extent that this does not negatively impact the business enabling environment;

(2) Promotion of economic growth within respective jurisdictional territories, for governments that improve own-source revenue collections; and

(3) Assistance to improve public financial management (PFM), including assistance to authorized governments with the effective use of Sistema de Administração Financeira do Estado eSISTAFE.

Government to Government Contracting (G2G)

Many of the persons who know best how the subnational system of governance is designed to work, and how it works, are employees of the GRM or its decentralized entities. In some instances, the best source of technical assistance for a nascent Municipal Primary Health Service might be a Provincial Directorate of Health, or, perhaps a District Health Service. If such an occasion arises during the life of USAID’s LOGOS, USAID might sign a Government to Government (G2G) contract to enable the needed assistance. In such an instance, the USAID’s LOGOS IP will be required to closely coordinate with the service provider under G2G arrangements.

Local Economic Development

In the anticipated USAID project, local economic development is viewed as a vehicle for increased local government own-source revenues. In other words, if a participating subnational government engages in efforts to improve public financial management and succeeds in increasing own-source revenues, then the integrated program will provide technical assistance to enable that government to plan and implement increased local economic development throughout the area of responsibility. Local revenues should only be raised through means that are transparent, not regressive11, and that does not negatively impact the business enabling environment. The contingent character of Local Economic Development (LED) activities means that the IP will accumulate work experience with candidate LED subnational governments and

11 A regressive tax affects people with low incomes more severely than people with high incomes because it is applied uniformly to all situations, regardless of the taxpayer.

have time to study local economic development potential of candidate LED governments before agreeing to assist them.

Boex (2011) finds “…there is substantial untapped revenue potential at the municipal level, with estimates indicating that, in the case of the most buoyant local revenue sources, municipalities are only collecting about half of the revenue potential. In the worst cases, municipalities are collecting far less than 10 percent of the total revenue potential of a local revenue source.”12 Revenues are frequently raised, inefficiently, from sources with limited potential yields and relatively high costs of collection.

Local public services have improved under municipal regimes, but improvements are largely centrally financed. Decentralized decision making does respond better to local preferences, but local Mozambican public services don’t compare well with public services in other African LICs. Nevertheless, USAID is confident that the fact that municipal politicians feel compelled to make these public promises is politically significant. In the lead to 2018 municipal elections, civil society organizations elaborated “Manifestos dos Cidadãos” for larger municipalities such as Maputo, Beira and Nampula, demanding better services for vulnerable populations such as women, youth and people with disabilities. Municipal politicians incorporated some of these demands into their electoral promises.

Program results from local economic development may vary widely from one subnational government unit to another. Prior survey work under this activity is likely to reveal unique local opportunities and needs. A World Bank “Doing Business” survey shows that economic development support efforts will include improvements to municipal planning and budgeting.

Improvement in doing business can also be strengthened through streamlined processes such as business registration, and simple, transparent tax payment and construction permit systems.

Harding, Nguenha and Turatsinze suggest that:

“A sine qua non of successful municipalities is that they possess a municipal strategic development plan that is (a) well-defined and focused on priorities, (b) locally developed and owned, (c) multi-annual, but with annual development targets and indicators and (d) provides costing.”13

C.2.2. Public Services in Mozambique

C.2.2.1. Primary Health Services14

The national health system (NHS) is structured into four levels of service delivery: health centers (CS) and health posts (PS) constitute the primary level and provide the services which

12 Boex, Jamie. Joint Support Programme for the Municipal Development of 13 Mozambican Municipalities in Central and…