Supply Chain - Solicitation_11.20.2023_Final.pdf

Request for Proposals (RFP) No.: 72066323R00018

Issuance Date: November 20, 2023 Written Questions Due Date: December 4, 2023, 17:00 (Addis Ababa Time)

Proposals Submission Closing Date: January 10, 2024, 17:00 (Addis Ababa Time)

SUBJECT: Request for Proposals (RFP)/Solicitation No. 72066323R00018 Supply Chain

Strengthening (SCS) Activity

The United States Government, represented by the U.S. Agency for International Development (USAID)

Mission in Ethiopia, is seeking proposals to develop the capacity of local systems, institutions, and individuals to sustainably manage supply chains, for both USAID-procured health commodities and those procured through other donor and national/local systems, and to strengthen local pharmaceutical management systems, including quality pharmaceutical services as described in the attached Request for

Proposals (RFP).

USAID/Ethiopia anticipates the award of a Cost-Plus-Fixed-Fee, Completion-Type Contract for a five (5) year period of performance as a result of this RFP, consisting of one (1) four-year base period, one (1) one-year option period, and one (1) Increased Quantity Option (IQO). The Total Estimated Cost-Plus

Fixed Fee for services under this contract is estimated to fall within the range of $40 - $45 million. The

North American Industry Classification System (NAICS) code for this solicitation is 541611. The principal geographic code for this contract is 937.

This procurement will be conducted under full and open competition procedures pursuant to Part 15 of the Federal Acquisition Regulation (FAR), under which any type of organization is eligible to compete.

Proposals will be accepted from eligible organizations. This RFP has an unrestricted eligibility. USAID encourages the participation to the maximum extent possible of local organizations, small business concerns, veteran owned small business, service-disabled veteran small business, HUB zone small business, small disadvantaged business, and women-owned small business concerns and small business concerns in this activity as the prime contractor or as subcontractors. In support of USAID’s interest in expanding the number and sustainability of development partners, USAID encourages proposals from potential new partners. USAID discourages the use of exclusive agreements with international or regional/local organizations as this limits USAID’s ability to receive the best services.

Interested offerors are invited to submit a proposal in accordance with the requirements of the enclosed

RFP. Proposals must be received by the Government no later than the local time on the due date stated above and in the RFP. Only electronic submissions will be accepted via the E-mailbox caddis@usaid.gov with a copy to Ms. Tsegereda Gebremedhin at tgebremedhin@usaid.gov. No other forms of submission will be accepted. Pursuant to Block 12 of Standard Form 33 of this RFP, USAID requires that offers remain valid for 180 calendar days from the RFP closing date. Please refer to Section L for information regarding proposal requirements. Offerors should take into account the expected delivery time required by the email transmission method, and they are responsible to ensure that proposals are received at USAID by the closing date and time as specified above. Failure to comply with the submission date will deem any submission unacceptable and it will not be reviewed or evaluated. Proposals must be signed by an official who is authorized to bind the organization.

Questions regarding this solicitation must be submitted in writing via e-mailbox at caddis@usaid.gov by the date and time specified above with a copy to Ms. Tsegereda Gebremedhin at tgebremedhin@usaid.gov. If substantive questions are received which affect the response to the

Solicitation, or if changes are made to the closing date and time, as well as other aspects of the RFP, this

Solicitation will be amended and the amendments will be issued and posted on the U.S. government mailto:tgebremedhin@usaid.gov mailto:tgebremedhin@usaid.gov

Supply Chain Strengthening Activity, RFP/Solicitation No. 72066323R00018 website: SAM.gov. It is, therefore, the offeror’s responsibility to check this site periodically for official updates and amendments to the solicitation. USAID bears no responsibility for data errors resulting from transmission or conversion processes. USAID reserves the right to amend or rescind this solicitation at any time. Oral instructions, answers or guidance from any USAID source prior to the award of the contract shall not be binding.

Offerors should read the entire solicitation, which includes all pertinent technical sections and the terms, conditions and instructions required for submitting a proposal.

USAID may not award to an offeror unless the offeror has complied with all applicable unique entity identifiers and System for Award Management (SAM) requirements detailed in Section L.5. The registration process may take many weeks to complete. Therefore, offerors are encouraged to begin registration early in the proposal process.

This Solicitation in no way obligates USAID to award a contract, nor does it commit USAID to pay any cost incurred in the preparation and submission of a proposal in response hereto. Award of a contract under this RFP is subject to availability of funds and other internal USAID approvals. Furthermore, USAID reserves the right to reject any and all offers, if such action is considered to be in the best interest of USAID. USAID appreciates the time and effort put into preparing proposals in response to this solicitation.

Thank you for your interest in USAID/Ethiopia development programs.

Sincerely, Admir Serifovic

Supervisory Contracting Officer

USAID/Ethiopia https://sam.gov/content/home

SF33 - Solicitation, Offer, and Award

TABLE OF CONTENTS

SECTION B - SUPPLIES OR SERVICES AND PRICES/COSTS

B.1 PURPOSE

B.2 CONTRACT TYPE

B.3 ESTIMATED COST AND FIXED FEE

B.4 CONTRACT BUDGET AND LINE-ITEM SCHEDULE

B.5 INDIRECT COSTS

B.6 COST REIMBURSABLE

B.7 PAYMENT OF FEE

B.8 FEE DISTRIBUTION SCHEDULE

B.9 KEY CONSIDERATIONS FOR DEVELOPMENT IN A DYNAMIC ENVIRONMENT

SECTION C - STATEMENT OF WORK

SECTION D: PACKAGING AND MARKING

D.1 AIDAR 752.7009 MARKING (JAN 1993)

D.2 USAID BRANDING AND MARKING POLICY

D.3 BRANDING AND MARKING PLAN

D.4 BRANDING IMPLEMENTATION PLAN AND MARKING PLAN

SECTION E: INSPECTION AND ACCEPTANCE

E.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE

E.2 INSPECTION AND ACCEPTANCE

E.3 ACTIVITY MONITORING, EVALUATION, AND LEARNING (MEL) PLAN

E.4 PERFORMANCE EVALUATION AND FINANCIAL REVIEW

E.5 CONTRACTOR PERFORMANCE ASSESSMENT REPORTING SYSTEM (CPARS) EVALUATION

E.6 MULTI-TIERED MONITORING STRATEGY

SECTION F: DELIVERIES OR PERFORMANCE

F.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE

F.2 PERIOD OF PERFORMANCE

F.3 PLACE OF PERFORMANCE

F.4 KEY PERSONNEL

F.5 DISTRIBUTION OF PROJECT MATERIALS, PARTICIPATION IN PARTNER MEETINGS AND PUBLIC

EVENTS

F.6 AUTHORIZED WORK WEEK

F.7 REPORTS AND DELIVERABLES

F.8 AIDAR 752.7005 SUBMISSION REQUIREMENTS FOR DEVELOPMENT EXPERIENCE DOCUMENTS

(SEPT 2013)

SECTION G: CONTRACT ADMINISTRATION DATA

G.1 CONTRACTING OFFICER'S AUTHORITY

G.2 ADMINISTRATIVE CONTRACTING OFFICE

G.3 CONTRACTING OFFICER'S REPRESENTATIVE (COR)

G.4 PAYING OFFICE

G.5 INVOICING INSTRUCTIONS:

G.6 AIDAR 752.7003 DOCUMENTATION FOR PAYMENT (NOV 1998)

G.7 ACCOUNTING AND APPROPRIATION DATA

G.8 TECHNICAL DIRECTION/RELATIONSHIP WITH USAID

G.9 CONTRACTOR’S PRIMARY POINT OF CONTACT

G.10 CONTRACTOR'S PAYMENT ADDRESS

SECTION H - SPECIAL CONTRACT REQUIREMENTS

H.1 AUTHORIZED GEOGRAPHIC CODE

H.2 SUBCONTRACTING PLAN, INDIVIDUAL SUBCONTRACT REPORT (ISR) AND THE SUMMARY

SUBCONTRACT REPORT

H.3 CONSENT TO SUBCONTRACT

H.4 NONEXPENDABLE PROPERTY PURCHASES AND INFORMATION TECHNOLOGY RESOURCES 59

H.5 CLOUD COMPUTING (APR 2018)

H.6 LOGISTIC SUPPORT

H.7 LANGUAGE REQUIREMENTS

H.8 ENVIRONMENTAL COMPLIANCE

H.9 DISCLOSURE OF INFORMATION

H.10 RESTRICTIONS AGAINST DISCLOSURE (MAY 2016)

H.11 USAID-FINANCED THIRD-PARTY WEB SITES (NOVEMBER 2017)

H.12 COMPLIANCE WITH THE TRAFFICKING VICTIMS PROTECTION REAUTHORIZATION ACT

(2017) 68

H.13 CHILD LABOR

H.14 BUSINESS CLASS TRAVEL

H.15 ADS 302.3.5.22 SUBMISSION OF DATASETS TO THE DEVELOPMENT DATA LIBRARY (OCT

2014) 69

H.16 ADDITIONAL REQUIREMENTS FOR PERSONNEL COMPENSATION

H.17 COMMUNICATIONS AND OUTREACH APPROVAL REQUIREMENTS

H.18 GRANTS UNDER CONTRACT

H.19 EXECUTIVE ORDER ON TERRORISM FINANCING (FEB 2002)

H.20 FRAUD REPORTING

H.21 OWNERSHIP OF PROJECT DATA, REPORTS AND OTHER DOCUMENTS

H.22 FOREIGN GOVERNMENT DELEGATIONS TO INTERNATIONAL CONFERENCES (JAN 2002) . 74

H.23 ORGANIZATIONAL CONFLICTS OF INTEREST

H.24 CONFLICT OF INTEREST

H.25 INHERENTLY GOVERNMENTAL AND CLOSELY ASSOCIATED FUNCTIONS

H.26 ELECTRONIC PAYMENTS SYSTEM

H.27 CONTRACTOR’S USE OF PROJECT VEHICLES AND LIABILITY INSURANCE

REQUIREMENTS FOR PRIVATELY OWNED VEHICLES

H.28 SEXUAL MISCONDUCT

SECTION I - CONTRACT CLAUSES

I.1 FAR 52.252-2 CLAUSES INCORPORATED BY REFERENCE (FEB 1998)

I.2 52.201-1 ACQUISITION 360: VOLUNTARY SURVEY (SEP 2023)

I.3 FAR 52.203-3 – GRATUITIES (APR 1984)

I.4 FAR 52.203-13 – CONTRACTOR CODE OF BUSINESS ETHICS AND CONDUCT (NOV 2021)

I.5 FAR 52.204-1 – APPROVAL OF CONTRACT (DEC 1989)

I.6 FAR 52.204-25 – PROHIBITION ON CONTRACTING FOR CERTAIN TELECOMMUNICATIONS

AND VIDEO SURVEILLANCE SERVICES OR EQUIPMENT (NOV 2021)

I.7 FAR 52.215-19 – NOTIFICATION OF OWNERSHIP CHANGES. (OCT 1997)

I.8 FAR 52.217-7 – OPTION FOR INCREASED QUANTITY-SEPARATELY PRICED LINE ITEMS (MAR

1989) 87

I.9 FAR 52.217-8 – OPTION TO EXTEND SERVICES (NOV 1999)

I.10 FAR 52.217-9 – OPTION TO EXTEND THE TERM OF THE CONTRACT (MAR 2000)

I.11 FAR 52.222-50 – COMBATING TRAFFICKING IN PERSONS (NOV 2021)

I.12 FAR 52.227-23 – RIGHTS TO PROPOSAL DATA (TECHNICAL) (JUN 1987)

I.13 FAR 52.229-8 TAXES – FOREIGN COST-REIMBURSEMENT CONTRACTS (MAR 1990)

I.14 FAR 52.230-6 – ADMINISTRATION OF COST ACCOUNTING STANDARDS (JUN 2010)

I.15 52.232-40 PROVIDING ACCELERATED PAYMENTS TO SMALL BUSINESS

SUBCONTRACTORS (DEC 2013)[(DEVIATION JUN 2020)]

I.16 FAR 52.242-3 PENALTIES FOR UNALLOWABLE COSTS (DEC 2022)

I.17 AIDAR 752.219-8 UTILIZATION OF SMALL BUSINESS CONCERNS AND SMALL

DISADVANTAGED BUSINESS CONCERNS (MAR 2015)

I.18 AIDAR 752.219-70 USAID MENTOR-PROTÉGÉ PROGRAM (JULY 2007)

I.19 FAR 52.216-7 ALLOWABLE COST AND PAYMENT (AUG 2018)

I.20 FAR 52.222-36 EQUAL OPPORTUNITY FOR WORKERS WITH DISABILITIES (JUN 2020)

I.21 AIDAR 752.245-70 GOVERNMENT PROPERTY – USAID REPORTING REQUIREMENTS (OCT

2017) 104

I.22 AIDAR 752.7036 USAID IMPLEMENTING PARTNER NOTICES (IPN) PORTAL FOR

ACQUISITION (JULY 2014)

I.23 752.229-71 REPORTING OF FOREIGN TAXES(JUL 2007)

I.24 52.204-27 PROHIBITION ON A BYTEDANCE COVERED APPLICATION (JUN 2023)

I.25 FAR 52.243-7 NOTIFICATION OF CHANGES (JAN 2017)

I.26 AIDAR 752.209-71 ORGANIZATIONAL CONFLICTS OF INTEREST DISCOVERED AFTER

AWARD (JUN 1993)

I.27 AIDAR 752.7037 CHILD SAFEGUARDING STANDARDS (AUG 2016)

I.28 INTERNATIONAL TRAVEL (AIDAR 752.7002 AND 752.7032)

I.29 LIMITATION ON ACQUISITION OF INFORMATION TECHNOLOGY (DEVIATION NOs. M/OAA-

DEV-FAR-20-3c and M/OAA-DEV-AIDAR-20-2c) (APRIL 2020)

I.30 EMPLOYMENT OF THIRD COUNTRY NATIONALS AND COOPERATING COUNTRY NATIONALS

(AIDAR 722.170)

I.31 PERSONNEL APPROVALS (AIDAR 752.7007 AND 752.7027)

I.32 AIDAR 752.225-70 SOURCE AND NATIONALITY REQUIREMENTS (FEB 2012)

I.33 AIDAR 752.7004 EMERGENCY LOCATOR INFORMATION (JUL 1997)

I.34 AIDAR 752.228-70 MEDICAL EVACUATION (MEDEVAC) SERVICES (JUL 2007)

I.35 AIDAR 752.222-70 USAID DISABILITY POLICY (DEC 2004)

I.36 AIDAR 752.7013 CONTRACTOR-MISSION RELATIONSHIPS (OCT 1989) [DEVIATION (JUN

2018)] 115

I.37 AIDAR 752.228-3 WORKER's COMPENSATION INSURANCE (DEFENCE BASE ACT) (DEC 1991)

[(DEVIATION JUN 2022)] Class Deviation No. M-OAA-DEV-AIDAR-22-10c

I.38 AIDAR 752.228-7 INSURANCE – LIABILITY TO THIRD PERSONS. (JULY 1997)

I.39 AIDAR 752.231-72 CONFERENCE PLANNING AND REQUIRED APPROVALS (AUG 2013)

[DEVIATION (APR 2022)]

I.40 FAR Part 4.21 Prohibition on Contracting for Certain Covered Telecommunications And Video Surveillance

Services or Equipment (Section 889) (December 2021)

SECTION J - LIST OF DOCUMENTS, EXHIBITS AND OTHER ATTACHMENTS

SECTION K - REPRESENTATIONS, CERTIFICATIONS AND OTHER STATEMENTS OF OFFERORS

K.1 NOTICE LISTING SOLICITATION PROVISIONS INCORPORATED BY REFERENCE

K.2 FAR 52.209-5 CERTIFICATION REGARDING RESPONSIBILITY MATTERS (AUG 2020)

K.3 FAR 52.209-7 INFORMATION REGARDING RESPONSIBILITY MATTERS (OCT 2018)

K.4 FAR 52.209-11 REPRESENTATION BY CORPORATIONS REGARDING DELINQUENT TAX

LIABILITY OR A FELONY CRIMINAL CONVICTION (FEB 2016)

K.5 FAR 52.222-22 PREVIOUS CONTRACTS AND COMPLIANCE REPORTS (FEB 1999)

K.6 FAR 52.222-25 AFFIRMATIVE ACTION COMPLIANCE (APR 1984)

K.7 FAR 52.237-8 RESTRICTION ON SEVERANCE PAYMENTS TO FOREIGN NATIONALS (AUG

2003) 124

K.8 FAR 52.204-3 TAXPAYER IDENTIFICATION (OCT 1998)

K.9 FAR 52.204-8 ANNUAL REPRESENTATIONS AND CERTIFICATIONS (MAR 2023)

K.10 FAR 52.230-1 COST ACCOUNTING STANDARDS NOTICES AND CERTIFICATION (JUN

2020) 128

K.11 FAR 52.230-7 PROPOSAL DISCLOSURE--COST ACCOUNTING PRACTICE CHANGES (APR 2005)

K.12 INSURANCE - IMMUNITY FROM TORT LIABILITY

K.13 FAR 52.204-17 OWNERSHIP OR CONTROL OF OFFEROR (AUG 2020)

K.14 FAR 52.204-20 – PREDECESSOR OF OFFEROR (AUG 2020)

K.15 FAR 52.209-12 – CERTIFICATION REGARDING TAX MATTERS (OCT 2020)

K.16 FAR 52.222-56 CERTIFICATION REGARDING TRAFFICKING IN PERSONS COMPLIANCE PLAN

(OCT 2020)

K.17 AUTHORIZED NEGOTIATORS

K.18 SIGNATURE

SECTION L – INSTRUCTIONS, CONDITIONS, AND NOTICES TO OFFERORS

L.1 NOTICE LISTING SOLICITATION PROVISIONS INCORPORATED BY REFERENCE

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

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

L.4 QUESTIONS AND CLARIFICATIONS

L.5 Waivers under FAR Part 4.2101 Prohibition On Covered Telecommunications And Video Surveillance Services and Equipment (JUNE 2023)

L.6 GENERAL INSTRUCTIONS TO OFFERORS

L.7 FAR 52.215-1 INSTRUCTIONS TO OFFERORS-COMPETITIVE ACQUISITION (JAN 2017)

L.8 PROPOSAL SUBMISSION/ DELIVERY INSTRUCTIONS

L.9 INSTRUCTIONS FOR THE PREPARATION OF VOLUME I – TECHNICAL PROPOSAL

L.10 BRANDING IMPLEMENTATION PLAN AND MARKING PLAN

L.11 INSTRUCTIONS FOR THE PREPARATION OF VOLUME II – COST PROPOSAL

SECTION M - EVALUATION FACTORS FOR AWARD

M.1 GENERAL INFORMATION

M.2 TECHNICAL EVALUATION CRITERIA

M.3 BUSINESS/ COST PROPOSAL EVALUATION

M.4 DETERMINATION OF COMPETITIVE RANGE

M.5 SOURCE SELECTION

PART I - THE SCHEDULE

SECTION B - SUPPLIES OR SERVICES AND PRICES/COSTS

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 the Supply Chain Strengthening (SCS) Activity.

B.2 CONTRACT TYPE

This is a Cost-Plus-Fixed-Fee (CPFF), Completion-Type Contract. The Contractor will provide the deliverables or outputs described in Section C and comply with all contract requirements.

B.3 ESTIMATED COST AND FIXED FEE

a. The estimated cost for the performance of the work required for the four-year base period, exclusive of fixed fee, if any, is $TBD. The fixed fee, if any, is $TBD. The estimated cost plus fixed fee, if any, for the base period is $TBD.

b. The estimated cost for the performance of the work required for the one-year option period, if exercised, exclusive of fixed fee, if any, is $TBD. The fixed fee for the first one-year option period, if any, is

$TBD. The estimated cost plus fixed fee, if any, for the option period is $TBD.

c. The estimated cost for the performance of the work required for the increased quantity of technical assistance option, if exercised, exclusive of fixed fee, if any, is $TBD. The fixed fee for the increased quantity of technical assistance option, if any, is $TBD. The estimated cost plus fixed fee, if any, for the increased quantity option is $TBD.

d. Within the estimated cost plus fixed fee (if any) specified in paragraph (a) above, the amount currently obligated and available for reimbursement of allowable costs incurred by the Contractor (and payment of fee, if any) for performance hereunder is $TBD. The Contractor must not exceed the aforesaid obligated amount unless authorized by the Contracting Officer pursuant to the clause of this contract entitled "Limitation of Funds" (FAR 52.232-22).

e. Funds obligated hereunder are anticipated to be sufficient through [To be inserted at the time of award].

f. Subject to the availability of funds, this contract will be incrementally funded.

B.4 CONTRACT BUDGET AND LINE-ITEM SCHEDULE

(a) The contract budget found herein is based on the Contractor’s original proposal and/or final proposal revision, which was accepted by USAID on TBD upon the award of this contract.

(b) The following itemized budget sets forth the estimates for individual line items of cost: No amounts in excess of the amounts specified for each activity shall be billed against the Contract.

[REMAINDER OF PAGE LEFT INTENTIONALLY BLANK]

CONTRACT LINE-ITEM SCHEDULE

CLIN Line Item Total

0001 Base Period (Years 1-4) – Technical Assistance $TBD

Direct Costs (Inclusive of Subcontracts) $TBD

Indirect Costs $TBD

Fixed Fee $TBD

Grants Under Contract (GUC) $TBD

Total Estimated Cost Plus Fixed Fee: Base : $TBD

1 001 Option 1 (Year 5) – Technical Assistance $TBD

Direct Costs (Inclusive of Subcontracts) $TBD

Indirect Costs $TBD

Fixed Fee $TBD

Grants Under Contract (GUC) $TBD

Total Estimated Cost Plus Fixed Fee: Option 1: $TBD

TOTAL Base + Option 1: $TBD

Increased Quantity Option to be exercised between the period of Project Year 1 and Project Year 4.5 at USAID’s sole discretion.:

CLIN Line Item Total

2 001 Option 2 - Increased Quantity Option – Technical Assistance $TBD

Direct Costs (Inclusive of Subcontracts) $TBD

Indirect Costs $TBD

Fixed Fee $TBD

Grants Under Contract (GUC) $TBD

Total Estimated Cost Plus Fixed Fee: Option 2: [Up to $2,000,000]*

TOTAL Base + Option 1 + Option 2 : [$40 ,000,000 - $45,000,000]*

[Note 1: * Final dollar amount to be inserted at time of award based on selected offeror’s proposal.

Note 2: GUCs to be up to $1,000,000 for the life of the award including all options.]

These amounts may not be adjusted without a written modification signed by the Contracting Officer. The contractor will not bill any amounts against this contract in excess of the amounts specified for each line item as illustrated above. The base amount plus the cumulative amount of one (1) one-year options period plus the one (1) increased quantity option cannot exceed the total estimated amount of the contract.

(c) The inclusion of any costs in the above budget does not eliminate the requirement for prior approval by the Contracting Officer of cost items designated as requiring prior approval by any of the terms and conditions of this contract, including the applicable cost principles (see FAR 52.216-

7, “Allowable Cost and Payment”); nor, does it constitute a determination of allowability by the

Contracting Officer of any item of cost, unless specifically stated elsewhere in this contract.

(d) The Contractor agrees to furnish data that the Contracting Officer may request on costs expended or accrued under this contract.

(e) These CLIN amounts may not be adjusted without a written modification signed by the

Contracting Officer. The contractor will not bill any amounts against this contract in excess of the amounts specified for each line item as illustrated above. Without the prior written approval of the

Contracting Officer, the Contractor must not exceed the total estimated cost set forth in the budget or the total obligated amount, whichever is less.

B.5 INDIRECT COSTS

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:

Prime:

Description Rate Base Type Period

TBD TBD 1/ 1/ 1/

TBD TBD 2/ 2/ 2/

1/ Base of Application: TBD

Type of Rate: TBD

Period: TBD

2/ Base of Application: TBD

Type of Rate: TBD

Period: TBD

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.

Applicable indirect costs (i.e., overhead, G&A, etc.) on other direct costs (ODCs), if it is part of the

Contractor’s usual accounting procedures, consistent with FAR Part 31, and Negotiated Indirect Cost Rate

Agreement (NICRA). Indirect costs shall not be allowed for organizations that do not have a NICRA; this requirement does not apply to subcontractors.

B.6 COST REIMBURSABLE

a) The U.S. dollar costs allowable will be limited to reasonable, allocable, and necessary costs determined in accordance with FAR 52.216-7, “Allowable Cost and Payment,” FAR 52.232-20, “Limitation of Cost,” and FAR 52.232-22, “Limitation of Funds,” if applicable, and AIDAR

752.7003, “Documentation for Payment.”

b) The application of the following clauses (incorporated by reference in Section I) is as follows: (i)

FAR 52.232-20 Limitation of Cost (applies when the contract is fully funded); and (ii) FAR 52.232-

22 Limitation of Funds (applies while the contract is funded in an amount less than the total cost plus award fee).

B.7 PAYMENT OF FEE

Pursuant to FAR 16.306 (d) “Cost-Plus-Fixed-Fee Contracts,” payment of the fixed-fee will be divided between fixed payments (25%) and payments based on the completed Fixed-fee Schedule (75%) found in

Section B.8. Payment amounts will be proposed by the Offerors and negotiated for those deliverables indicated in the table in Section B.8, both subject to the inspection and acceptance by USAID as specified in Section E of the same and in compliance with the terms of this contract. Upon successful completion of a deliverable, the Contractor must provide evidence of its achievement to the Contracting Officer’s Representative (COR).

Upon receipt of concurrence by the COR, the Contractor shall submit an invoice for the amount of the fee associated with the deliverable.

The Contractor may earn and be paid all or a portion of the total fee based on performance under this contract.

Full fee payment is dependent upon full completion of the contract, as demonstrated by attainment of all deliverables. The Contracting Officer, in consultation with the COR and at the request of the Contractor, may modify the fee schedule, based upon changes in underlying assumptions, the development context or other extenuating circumstances.

In the event of discontinuance of the work in accordance with the clause of the contract entitled FAR 52.249-

6 Termination (Cost Reimbursement), the fee must be re-determined by mutual agreement equitably to reflect the reduction in the work actually performed. The amount by which such fee is less than, or exceeds, payments previously made on account of the fee must be paid to, or repaid by the Contractor, as applicable. Pursuant to

FAR 52.216-8 Fixed Fee, after payment of 85 percent of the fixed fee, further payment of the fee will be withheld.

B.8 FEE DISTRIBUTION SCHEDULE

Definite goals or targets must be achieved and end results must be completed, delivered, and accepted by

USAID during the period of performance and within the total estimated cost as a condition for payment of the entire fixed fee. The final Fee Distribution Schedule, and any subsequent changes, must be approved by the

Contracting Officer.

[Deliverables and amount of fee to be proposed by offerors in their Cost Proposal. Upon USAID’s approval, the agreed Fixed Fee for each deliverable will be incorporated in this section upon award]

Ref. Key Deliverables Description & method of verification

Fee Amount ($) & Deadline Fee

Amount

Total

Performance Deliverables (75% of the total Fixed Fee)

1 Supply Chain Maturity Year

Year

Year

Year

Ye ar 5

IQO*

1.1 National supply

chain maturity baseline assessment report

(Year 1, 3 & 5)

Report assessed for accuracy and approved by the Mission technical team.

N/A

1.2 Number of health

facilities achieve

Maturity level 4

[Offeror to propose number]

Facilities assessed jointly by Contractor and GOE, and TA phased in facilities achieving level 4 maturity

1.3 Number of EPSS

warehouses achieve maturity

[Offeror to propose number]

EPSS ISO certification issued for qualified warehouses

2 Product availability

2.1 HIV program

priority commodity availability

[Offeror to propose number]

Report assessed and approved by the USAID technical team.

2.2 TB program

medicine program availability

[Offeror to propose number]

Report assessed and

2.3 Family Planning

commodity availability

[Offeror to propose number]

Report assessed and

2.4 Maternal child

Health program commodity availability

[Offeror to propose number]

Report assessed and

2.5 Malaria program

medicine and supplies availability

[Offeror to propose number]

Report assessed and

3 Sustainability

3.1 Regions engage

private sector in pooled procurement of medicines and medical devices not included on

EPSS’

procurement list

Agreement assessment by contractor and reviewed USAID

3.2 Offerors to

propose additional

Performance

Deliverables and

Amounts, if any

(add rows as necessary)

TBD

Activity Deliverables (25% of the total Fixed Fee)

4 Reports

4.1 Annual Work Plan

with Budget

Report reviewed and approved by the USAID technical team.

N/A

4.2 Gender Analysis

and Strategy

Strategy reviewed and approved by the USAID technical team.

N/A

4.3 Grants Under

Contract (GUC)

Manual

Manual reviewed and approved by the USAID technical team.

N/A

4.4 MEL Plan MEL Plan reviewed and

approved by the USAID technical team.

N/A

5 Offerors to propose additional

Activity

Deliverables, if any

Deliverables reviewed and approved by the

USAID technical team.

*Note: As the IQO is to be exercised at any time between year 1 and year 4.5, the IQO must not have a designated schedule included in the Fee Table and instead only include the amount per deliverable.

B.9 KEY CONSIDERATIONS FOR DEVELOPMENT IN A DYNAMIC ENVIRONMENT

Due to the extremely fluid nature of the Ethiopian development context, USAID/Ethiopia must be able to adapt to changing circumstances on the ground. Adaptive management will be required from the implementer in order to maintain, sustain, or expand development gains achieved through activity implementation.

The Contractor must anticipate the need to adapt to changing conditions on the ground either of a positive or negative nature in order to achieve the contract's objectives. These objectives are defined in Section C.

Implementation of these changes will be governed by FAR 52.243-2 (Alternate I) Changes Cost

Reimbursement. The changes must be within the general scope of this contract. These changes will be made to address changing circumstances in Ethiopia. Examples of the circumstances include but are not limited to:

● Data indicates and the Mission Director determines in writing that there is a high probability of a crisis developing in the operating environment, requiring adjustments to ongoing programming.

● Data indicates and the Mission Director determines in writing that there is a high probability that peace will continue, and the operating environment will stabilize, requiring adjustments to ongoing programming.

The purpose of this section is to inform the Contractor of the very fluid nature of development work in Ethiopia and the likely need to adapt to changing circumstances while still achieving the contract’s objectives. There may be other needs that require the use of the changes clause but the extreme fluidity of the operating environment in Ethiopia warrants this section in order to increase the probability of success in achieving the contract’s objectives.

[END OF SECTION B]

SECTION C - STATEMENT OF WORK

A. ACRONYMS

ARV Antiretroviral (drug)

ART Antiretroviral therapy

APTS Auditable Pharmaceutical Transactions and Services

CDCS Country Development Cooperation Strategy

DO Development Objective

DTC Drug and Therapeutic Committee

EFDA Ethiopian Food and Drug Administration

EHCRIG Ethiopian Health Center Reform Implementation Guideline

EHRIG Ethiopian Hospital Reform Implementation Guideline

EPA Ethiopian Pharmaceutical Association

EPSS Ethiopian Pharmaceutical Supply Service

FMHACA Food, Medicine and Health Care Administration and Control

Authority

EFDA Ethiopian Food and Drug Authority

FP Family planning

GoE Government of Ethiopia

HEW Health Extension Worker

HSS Health System Strengthening

HSTP Health Sector Transformation Plan

IPC Infection Prevention and Control

IPLS Integrated Pharmaceutical Logistics System

LMIS Logistics Management Information System

MNCH Maternal, Newborn, and Child Health

MoH Ministry of Health

OJT On-the-job training

PMED Pharmaceuticals and Medical Equipment Directorate

PPE Personal Protective Equipment

PSTP Pharmaceuticals Supply Transformation Plan

RDF Revolving Drug Fund

RHB Regional Health Bureau

RRF Report and Requisition Form

SDP Service Delivery Point

SNNP South Nations Nationalities and People (region)

TB Tuberculosis

USG United States Government

B. ACTIVITY TITLE

Supply Chain Strengthening Activity.

C. PURPOSE AND SCOPE

The purpose of this contract is to serve as the primary vehicle through which USAID/Ethiopia will improve pharmaceuticals supply chain, logistics, services, and ultimately, health outcomes in Ethiopia.

This Activity emphasizes the achievement of measurable, high-quality, and cost-effective results to support the objectives and priorities outlined in this SOW . Additionally, this Activity places a premium focus on strong financial management, evidence-based learning, and adaptive strategies fueled by cost-efficiency, visionary approaches, use of appropriate technology, and partnerships with new and underutilized international, regional, and local partners, including private sector actors.

USAID/Ethiopia’s health investments are focused on ending preventable child and maternal deaths;

achieving HIV/AIDS epidemic control; malaria prevention, control, and elimination; increasing and sustaining access to safe, voluntary, high-quality family planning (FP) and reproductive health services;

and combating infectious diseases such as tuberculosis. The provision of technical assistance (TA) interventions to the health supply chain and pharmaceutical and logistics services in Ethiopia, all of which are cornerstones of the health system, will ensure the achievement of these critical life-saving priorities.

The Activity will develop the capacity of local systems, institutions, and individuals to sustainably and efficiently manage the health supply chain1, pharmaceutical, and logistics services2, at all levels of the health system (from the MoH down to the community), thereby ensuring uninterrupted availability of quality-assured, safe and efficacious essential commodities at service delivery points. This aim will strategically shift the public sector’s role towards fostering partnerships with the private sector on operational support for improved supply chain and pharmaceutical and logistics services. This Activity also aims to strengthen the Government of Ethiopia (GoE)’s accountability and strategically foster ownership of the supply chain system by building the capacity of the Ministry of Health (MoH), Ethiopian

Pharmaceutical Supply Services (EPSS), the Pharmaceuticals and Medical Equipment Lead Executive

Office (PMELO), regional health bureaus (RHB), woreda health offices, and health facilities. Such support will also engage other respective sub-national leadership, private sector, and other local actors in the GoE’s responsibility to manage and implement the supply chain and pharmaceutical and logistics services for improved delivery of quality, essential health services for Ethiopians.

The Supply Chain Strengthening Activity has the following three major objectives:

1. Ensure consistent availability of high-quality health products3 for Ethiopians at service delivery points through an improved and more mature supply chain system and strengthened pharmaceutical and logistics management services.

2. Increase access to quality pharmaceutical services and improve rational use of pharmaceutical products to achieve better health outcomes for Ethiopians.

3. Improve the efficiency and sustainability of the health supply chain and pharmaceutical and logistics services.

Supply chain functions to be supported may include forecasting and supply planning, procurement, customs clearance, warehousing and inventory management, distribution and transportation, logistics and operational support, supply chain information system, data management and analysis, human resources and organizational management, performance management, as well as enabling environment factors, including policy, governance, and financing.

Pharmaceutical services are integral parts of health services and programs and represent a process that includes: i. Supply of medicines; ii.

Maintenance and control of quality of medicines; iii. Safety and therapeutic effectiveness of medicines; iv. Follow‐up and evaluation of usage; and

iv. Procurement and dissemination of information about medicines.

In this document, health products may include medicines and medical devices, vaccines, medical equipment and supplies, contraceptives, diagnostics, consumables, vector control products, and other consumable/single use health products,such as personal protective equipment, and general laboratory items.

Table 1 below summarizes the Activity goal, objectives, and sub-objectives.

The goal, approaches, constraints, expected activities and results under each objective and sub-objectives are illustrated below.

Goal: Sustainable access to and rational use of quality health products at the health system and service delivery points.

There are three main objectives of the activity:

1. Supply Chain functions and operations improved (40% LOE).

2. Access to and rational use of medicines and supplies at health facilities and communities improved

(45% LOE).

3. Improved sustainability and efficiency of the supply chain and pharmaceutical services. (10% LOE)

The Activity will support USAID/Ethiopia’s 2019-2024 Country Development Cooperation Strategy

(CDCS) Development Objective (DO) 4 – Sustained Improvement in Essential Service

Delivery Outcomes Focused on Women and Girls. This Activity is linked with two sub-intervention results: IR 4.4 Utilization of quality health and nutrition services increased and IR 4.5 – Health and nutrition systems strengthened for greater self-reliance. The Activity is aligned with the GoE’s Health

Policy, Health Sector Transformation Plan II 2020/21-2024/25 and the Pharmaceuticals Supply

Transformation Plan II (PSTP) 2020/21 – 2029/30.

C. PROBLEM STATEMENT

USAID/Ethiopia and other key stakeholders have made considerable investments over the last 15 years to strengthen the health supply chain and pharmaceutical and logistics services. Substantial improvements have been made in medicine and other health commodity availability and improved infrastructure capacity; however, challenges remain, particularly in efficiency, governance, ownership, and sustainability.

Despite improvements in product availability in Ethiopia and the capacity of EPSS and the overall supply https://www.usaid.gov/ethiopia/country-development-cooperation-strategy https://www.usaid.gov/ethiopia/country-development-cooperation-strategy chain system, much remains to be done. More focus is needed to strengthen the capacity and efficiency of GoE supply chain actors at all levels of the health system, including the PMEDLO (the current

Pharmaceuticals and Medical Equipment Management Lead Executive Office), RHBs, woreda health offices and health facilities. In addition, gaps exist in measuring supply chain system efficiency to support in-country priorities and strategies, specifically inventory management, and the financial and operational sustainability of EPSS and its warehouses and pharmaceutical services. For example, inventory turnover and velocity is low; stockouts and overstocking are common; and the lack of financing often impedes supply chain operations.

The SCS Activity will improve the quality of pharmacy services through visionary approaches, for example, scale-up of an accountable pharmaceutical transaction system, increased rational drug use, and/or deployment and use of a quality medicine information system. The Activity will not support pharmaceutical regulatory services or product quality assurance and control, both of which are managed by the Ethiopian Food and Drug Authority (EFDA).

USAID/Ethiopia investments are being re-balanced towards tailored strategies to priority program health products and accountability of USG resources, while also building strong integrated health systems in

Ethiopia.

4. GENERAL PROGRAM AND CONTRACT PARAMETERS

Considering the scale of challenges and the limited financial resources available to achieve the expected outcomes, this activity’s interventions will need to be carefully targeted. The Activity must support key activities that will achieve the expected results below and drive the proposed technical assistance approaches. Proposed approaches will maximize cost-efficiencies/effectiveness through strategic partnerships, inclusive of private sector and other non-traditional actors. The Contractor must integrate gender considerations into all aspects of its proposed technical assistance approaches, monitoring activity implementation at various levels, and establishing metrics to achieve expected results in programming. It is also expected to consider localization, youth empowerment, and comply with the initial environmental examination and climate changes as per USAID guidelines.

Geographic focus and Selection:

The Supply Chain Strengthening Activity must balance support for the national system with creative solutions to monitor both overall and individual facility performance for targeted health facilities (up to

800 health centers and 400 hospitals), identify performance issues, and propose and implement corrective actions for both the short- and long-term.

Central Level/Systems: Support for PMELO and EPSS and for central level systems and structures necessary for last mile availability needs to continue, with a drive for increased sustainability, accountability and efficiency through innovation. For the purposes of this SOW, EPSS hubs are considered as “central level” (understanding they operate in regions and deliver to health facilities) and are expected to receive intensive support as needed to ensure performance. The project will develop performance metrics to be reported routinely with EPSS both for management of USAID products and for overall performance.

A priority intervention will be increasing the numbers of PHCUs receiving direct delivery of supplies from

EPSS, and the project is also expected to develop and test innovative solutions for sustainable delivery of supplies to health posts.

Regional Level: The Supply Chain Strengthening Activity is expected to provide support to a select number of RHBs to ensure it will be able to play their role in the supply chain, in terms of accessing data, monitoring performance, identifying problems and implementing solutions (both short term as well as longer term strategic solutions). In addition, the Supply Chain Strengthening Activity is expected to provide intensive support to a minimum of two regions that will focus on improved supply chain performance and sustainability through building the capacity of the RHB, woredas and health facilities to play a full role in the supply chain. The actual number of regions to be supported by this approach will be proposed by the offeror. This does not mean these entities replace EPSS but rather improve overall performance through each stakeholder working together to implement the supply chain as envisaged. The focus will be on ownership and sustainability with the intent that these regions can serve as a model for other regions.

The Supply Chain Strengthening Activity may support all 19 EPSS hubs across the country, with more intensified, holistic support to up to two initial regions, and their woredas and facilities therein. Through such support, the Activity will demonstrate cost-effective models of end-to-end supply chain support, with linkages to other GoE and development partner-supported activities. The Contractor will also proactively plan from inception on staging graduation and gradual expansion of implementation regions and sites within the first three years within this Activity’s budget, GoE, and/ or other development partner funding.

Offerors must propose their methodology for establishing clear site criteria with measurable milestones

(and with cost-efficiencies as paramount) to structure graduation of service delivery points and/or region from Activity support. This criteria will also establish the varying levels of support offered by the Activity, with respect to addressing site-specific needs along the TA continuum towards the final support stage before graduation. Such criteria will be inclusive of both urban and predominantly agrarian regions to demonstrate increased performance of the supply chain and pharmaceutical services across various contexts.

Selection: The criteria to inform selection of regions and facilities for support for intensified, holistic support will be finalized after award in consultation with USAID and other stakeholders. However, Offerors must include their proposed criteria with justified rationale for selection of regions and facilities, including 2-3 regions, and woredas and facilities within regions that balances limited resources with maximizing health impact, equity, USAID disease priorities (HIV, TB, malaria, family planning and

MNCH), involved RHBs and EPSS hub management, and DHIS/Dagu. The Contractor will tailor support by region in response to regional variations that impact the supply chain. Initial illustrative tailored support must be clearly articulated by Offerors.

The Contractor must include EPSS central, hub and region-specific work plans with specific measureable, achievable, relevant, and time-bound (SMART) actions and/or activities that target regional and local capacity and specific bottlenecks to improving supply chain and pharmaceutical services capacity and regional/SDP health outcomes. Each work plan will establish performance and accountability measures to assess the Contractor’s proposed technical assistance approaches and solutions towards ensuring achievement of Activity results. Additionally, where possible for each priority program areas – HIV/AIDS, malaria, TB, FP, and MNCH – the Offeror, through an adaptive management lens, will clearly outline its situational response to particular challenges, while simultaneously, maintaining holistic focus on health systems strengthening for the supply chain and pharmaceutical services.

C. SERVICES AND TASKS REQUIRED

The Contractor shall provide the services and deliverables specified below to achieve the objective set forth above, subject to the guidance and limitations specified herein. After awarding, the Contractor will work closely with the USAID/Ethiopia Health Office to establish requirements in specific services, activities and deliverables for the annual work plan.

C.4.a. Management and Administrative Services

The Contractor will provide all general management and administrative support necessary to perform the

Contract. The services and tasks to be include:

i. Overall management and administration of the Contract, including both expatriate and home office support and administrative services. The Contractor will provide all personnel, including key personnel, specified in the Contract necessary to meet recurring general management and administrative support needs under the Contract.

ii. The Contractor shall provide the facilities, supplies, and services necessary to perform the required activities.

iii. The Contractor shall provide the planning necessary for performance of the contract and submit all required plans and documents as presented in this document. The Contractor is required to provide oversight, quality control, and general technical support of all services and deliverables provided pursuant to the Contract.

iv. The Contractor is required to provide and assure the proper, efficient, and uniform use of modern management and administration, accounting practices, information technology

(IT), communications, reporting, human resource management, property control, security, records, and other administrative processes and systems required under the Contract.

v. Manage the overall reporting needs of the activity as specified in the Contract and developed in work plans in conjunction with the COR.

Supply Chain Activities includes technical assistance and support for a number of functional areas including:

● Quantification (forecasting and supply planning)

● Procurement (TA, not direct procurement)

● Product Reception/Clearance

● Inventory Management

● Warehouse Operations

● Distribution Management

● Fleet and Transportation management

● Infrastructure Support

● LMIS4

● Capacity building and Organizational Strengthening

● Performance Monitoring and M&E

● Data Use and Analytics

● Reverse Logistics

● Waste Management

● Governance including increased role for private sector

● Financial Management

● Resource Mobilization

● Strategic Planning

● Supportive supervision

● Last mile distribution optimization and expansion

● Other aspects of commodity security (enabling environment)

Pharmaceutical Services support while often overlapping with supply chain management will focus on areas like:

● Product selection

● Rational medicine use

● Capacity building

● Medicine dispensing

● Information systems

● Governance and leadership

● Antimicrobial Resistance Systems

Last Mile: A key objective for the Supply Chain Strengthening Activity is last mile availability which for the purposes of this SOW is anywhere clients access products and services including hospitals, PHCUs, health posts and communities. The Supply Chain Strengthening Activity is expected to routinely report last mile availability data for priority commodities and to ensure products are stored, managed and dispensed correctly. To achieve this, the Supply Chain Strengthening Activity will have to implement a series of activities including strengthening supervisory capacity at RHBs and woredas, Note USAID’s Digital Health Activity (DHA) is leading the development and implementation of eLMIS; the

Contractor will work closely with DHA on its LMIS work to identify priority activities and sites building HR capacity of facility personnel, ensuring supply chain systems and LMIS are functional and that facilities report their stock levels and submit orders in a timely manner, and that distribution systems are capable of ensuring timely product availability. Supply Chain strengthening activity is also expected to ensure products are available for their intended purpose and target populations and not diverted for other purposes or wasted in any way. Supply chain performance at facilities needs to be monitored both to identify problems and as a measure of performance and progress. While the ultimate goal is that higher levels of the health system track and act on this data, in practice the Supply Chain Strengthening

Activity will be a key consumer of data and be held accountable by USAID for quality technical assistance for ensuring its quality, availability and use. Data is expected to be to the greatest extent possible generated through routine systems with surveys and other on the ground data collection only for complementary or for a specific purpose (for example a PMI End Use Verification study). Given finite resources and the size of the country, the Supply Chain Strengthening Activity will be required to come up with innovative solutions that can identify problems at facilities and provide targeted, and cost-effective solutions for last mile assistance. This will likely require leveraging of technology solutions.

USAID expects to prioritize at least 400 hospitals and 800 health centers for data visibility and performance monitoring. These facilities will cover all regions and will include visibility and performance for health posts associated with a PHCU. The number will be substantive enough to reflect overall supply chain performance and past USAID investments in facility level support. Intensive on the ground support to facilities may be needed as a means of diagnosing problems, ground truthing reported data, monitoring performance and testing solutions but the emphasis on the Supply Chain

Strengthening Activity will be innovation, building sustainable healthcare systems owned by government partners, and cost-effective performance monitoring. The project is expected to develop, test, and refine innovative approaches to supply chain management at facilities that can be scaled throughout Ethiopia by the MOH and RHBs, including but not limited to areas such as demand planning, resupply, product delivery, inventory management, reporting, capacity building, LMIS including electronic systems, and must prioritize innovation and new appropriate technology.

5.b. RESULTS

The Activity is expected to support the GOE in its accelerated plan to improve decentralized management of supply chain and pharmaceutical services with emphasis on local ownership, enhanced leadership, and cost-efficiencies for maximum positive impacts at facility and patient levels. Through targeted, data- and results-driven technical assistance to the MOH and the EPSS (and other actors), the performance of the supply chain and pharmaceutical systems in focus geographic areas will improve.

Hence, consistent availability and equitable delivery of quality health products, commodities, and pharmaceutical services will be ensured for better health outcomes.

Specific results are listed below for each objective and intermediate result (IR) that the Contractor must support achievement of over the life of the award. However, the Offeror can propose revised percentage achievements outlined below in presenting the associated rationale, evidence-base, and cost-efficiencies, if applicable. The contractor should support the in-country logistics operation, strategic supply chain and provide technical assistance to achieve the specific results listed below. In consultation with the

USAID/Ethiopia Health Office and informed by key stakeholder inputs, Activity targets and indicators for outyears will be developed within the…