AID267H1700001 IGPA J A.pdf

JUSTIFICATION AND APPROVAL FOR OTHER THAN FULL AND OPEN COMPETITION

(J&A)

TO: Deborah Broderick, Agency Competition Advocate

From: Vladan Raznatovic, Acting Governance and Economic Opportunity Office Director

SUBJECT: JUSTIFICATION AND APPROVAL FOR OTHER THAN FULL AND OPEN

COMPETITION (J&A)

1. This document sets forth the facts and rationale justifying the use of other than full and open competition, in accordance with AIDAR 706.302. Specifically, AIDAR 706.302-70(b)(5) states that an exception to competition can be made for “[a]n award for the continued provision of highly specialized services when award to another resource would result in substantial additional costs to the Government or would result in unacceptable delays.” This document was prepared by Vladan Raznatovic, Acting Governance and Economic Opportunity Office Director, USAID/Iraq .

2. The nature and/or description of the action being approved:

This is a request to approve a modification to Contract number AID-267-H-17-00001 held by Development Alternatives, Inc. (DAI) for the Iraq Governance and Performance Accountability/ Takamul (IGPA/Takamul) project to increase the Total Estimated Cost (TEC) by $12,000,000 to $172,010,152 from $160,010,152, and extend the period of performance by 12 months from June 2022 to June 2023. The specifics are articulated in section 3. This action comes at a critical time wherein the USG has limited time to prepare, influence and guide the Government of Iraq (GOI) through the Strategic Dialogue with the U.S. that was announced by Secretary of State Mike Pompeo in April 2020. Secretary Pompeo made it clear, “With the global COVID-19 pandemic raging and plummeting oil revenues threatening an Iraqi economic collapse, it's important that our two governments work together to stop any reversal of the gains we've made in our efforts to defeat ISIS and stabilize the country.” This unforeseen and unexpected announcement will require expedient action by USAID in order to support USG priorities prior to June 2020, the announced timeline of the Dialogue. Additional resources will be necessary for the Dialogue’s success and for resulting follow-through actions later. As the Mission’s sole governance activity, IGPA/Takamul is the only option to undertake this work.

While this work fits within the objective of the contract, it is additional work that was not envisioned at the time of award and will require additional resources and time to implement.

IGPA/Takamul is a hybrid contract with cost-plus-fixed fee completion type CLINs (CLIN 0001, CLIN 0002, CLIN 0003, and CLIN 0004) and a single award IDIQ CLIN (CLIN 0005). Since the inception of the contract there have been eight funding modifications related to CLINs 0001 through 0004. Also there were five task orders implemented under the IDIQ CLIN.

The new activities listed in section 3 will be completed under the cost-plus-fixed fee portion of the contract, specifically CLINs 0003 and 0004.

3. Description of the supplies or services required, including an estimated value:

Citing the global COVID-19 pandemic, an economy teetering on the edge of total collapse due to the fall in oil prices and years of poor investments, and civil unrest that is ongoing and reflects decades of corruption, malign foreign actor influence and ever-simmering ethnic tensions, Secretary Pompeo announced on April 7, 2020 that the United States would hold a Strategic Dialogue with the Iraqi government in mid-June 2020. Specifically, Secretary Pompeo said, “All strategic issues between our two countries will be on the agenda, including the future presence of the United States forces in that country and how best to support an independent and sovereign Iraq.”In response to this unprecedented and unanticipated announcement, the GOI’s Strategic Dialogue leaders requested USAID to expand its support to Iraq. Specifically, DAI, as the implementer of USAID’s sole governance program, stands poised to support this effort. With the approval of this request with an estimated value of $12,000,000, IGPA/Takamul will support the following key immediate and related follow-through actions:

1. Review the GOI national budget cycle and budget process improvement initiatives

2. Improve the GOI’s capacity to address fiscal risks

3. Improve the GOI and KRG’s cash management

4. Support alternative investment financing schemes

5. Support greater coordination between Ministry of Finance and Ministry of Planning

4. Statutory authority permitting other than full and open competition:

AIDAR 706.302-70 states that, “Full and open competition need not be obtained when it would impair or otherwise have an adverse effect on programs conducted for the purposes of foreign aid, relief, and rehabilitation,” and may be applied per AIDAR 706.302-70(b)(5) for “[a]n award for the continued provision of highly specialized services when award to another resource would result in substantial additional costs to the Government or would result in unacceptable delays.”

5. A demonstration that the proposed contractor’s unique qualifications or the nature of the acquisition that requires use of the authority cited:

With the Strategic Dialogue process set to begin in summer of 2020, USAID is reliant on existing mechanisms for support to the GOI. An approved continuation and expansion of IGPA/Takamul’s work is to the benefit of the USG for both cost and timeliness reasons.

First, the design and competition of a new mechanism that could be awarded, operationalized and engender the trust of the GOI and KRG officials involved would not be feasible in such a short timeframe. With average timelines for design to procurement greater than 12 months, not including the required onboarding of new contractors, office space provision and other start-up related actions, the window for support to the Strategic Dialogue would have passed by the time a new awardee could be operational.

Second, the employment of a new award would cost the USG substantial additional money. By utilizing the existing partner, DAI, to address the needs of the Strategic Dialogue, the USG is able to avoid unnecessary costs to the US taxpayer by utilizing DAI’s existing office space, security infrastructure (a significant cost in Iraq) and staff, as well as the associated time and planning required for these tasks. It is estimated that the additional costs associated with drawdown and startup activities historically amount to approximately 5-10 percent of overall costs in the last and first years of a project.

Finally, a direct award to local contractor(s) was not considered because, based on our knowledge of existing Iraqi firms, none of them is capable of offering the required services, in light of the complexity of tasks, the sheer variety of technical fields being engaged and the magnitude of the project. DAI is expected to bring international standards to public financial management, legal drafting, oversight and accountability, public procurement, and maintain the ability to mobilize international and regional expertise in response to ad hoc requests and opportunities - capabilities which currently do not exist in the Iraq market.

6. Description of the efforts made to ensure that offers are solicited from as many potential sources as practicable, including whether a notice was publicized as required by Federal Acquisition Regulation (FAR) 5.2 [AIDAR 705.2].

USAID/Iraq will publicize the notice for the new award in accordance with FAR 5.201. Similarly, the finalized J&A will be posted according to the requirements of ADS 302.3.4.5(h)(2) and FAR 6.305.

7. A determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable:

The initial award for this activity demonstrated, through the evaluation of technical capabilities, costs, and past performance, that the current contractor offered the best value to the government. The proposed additional activities fall within the general scope of those contemplated during that competition and thus do not affect this determination.

USAID will analyze the activity’s historical costs to determine that additional costs to the USG are fair and reasonable.

8. Description of the market research conducted, and the results or a statement of the reasons market research was not conducted:

There are very few organizations in Iraq, either private companies or local and international NGOs, working on issues of governance and governance-strengthening. Furthermore, the specific concept of the required support for the Strategic Dialogue is very new to the Iraqi context. Based on research conducted for both the current and prior USAID-funded activities, specifically IGPA/Takamul, Tarabot/Iraq Administrative Reform Project and GSP/Taqadum, USAID is very familiar with local and international capacity and it is fair to conclude that the capacity inside Iraq is relatively limited for an activity of this size and scope to improve governance in Iraq in a timely manner.

There currently is no centrally-managed IDIQ or surge support mechanism that could be used to support this effort; specifically, as the team and work need to be assembled and operational in June the options are severely limited.

Based on the competition of the existing contract, there are international firms available and capable of completing the required work; however, based on extensive knowledge of firms operating in Iraq, there are no international firms that are poised to do this work within the strict time and cost constraints.

Therefore, it was determined that the new governance-related work should be completed by IGPA/Takamul as it will enable efficient and effective use of existing expertise that is readily available to support this unforeseen additional activity in Iraq.

9. Other facts supporting the use of other than full and open competition:

Estimate of the cost to the Government that would be duplicated and how the estimate was derived: It is estimated that the additional costs associated with drawdown and startup activities historically amount to approximately 5-10 percent of overall costs in the last and first years of a project. Based on the $12,000,000 estimate of the work, if a new contract was issued, it would cost the US government an additional $1.2 million to $2.4 million.

Harm that would be done to the Government or program if there are unacceptable delays:

Should a delay occur, it would cause irreparable harm to the USG in the form of reputational damage. As the U.S. is seen as an “honest broker” by many Iraqis and is relatively routinely viewed positively, an inability by USAID to respond to the GOI’s request for support through the Dialogue process would be seen as an unwillingness. In a time where the US is countering malign influences around the world, and specifically in Iraq, it is crucial that the USG be seen as a supporting partner, willing to help Iraq become a stronger, more independent nation, and thus, retain a positive reputation among Iraqis.

10. Sources, if any, that expressed an interest, in writing, in the acquisition:

USAID/Iraq received 3 responses to the synopsis that was published on May 8, 2020, including:

Kaniwar Company, SoCal Technologies LLC and Masab Sheikh-Ali (individual). Each response was of a general nature and none of the organizations/individuals appeared to have the capability to complete the work. All respondents were informed that the synopsis is a notification only and not a request for proposals and encouraged to watch beta.sam.gov for future opportunities .

11. The actions the Agency may take to remove or overcome any barriers to competition before any subsequent acquisition for the supplies or services required:

USAID/Iraq intends to compete future requirements through full and open competition and potentially set aside some requirements for US small businesses.

12. Technical or requirement personnel certification:

In accordance with FAR 6.303-1(c), I hereby certify that the technical statements included above and which form a basis for the justification are complement and accurate.

Certified via Email (see attached) 05/29/2020 Vladan Raznatovic GEO Acting Director Date

13. Contracting Officer Certifications:

I hereby certify that the justification is accurate and complete to the best of my knowledge and belief.

Zachary Clarke, Contracting Officer Date

14. Approved/Disapproved

Approved Disapproved

Deborah Broderick Date Agency Competition Advocate

1. Clearance

Cleared via Email (see attached) 5/28/2020 Michael Behan, Resident Legal Officer Date

Mission Clearance page for Justification And Approval For Other Than Full And Open Competition (J&A) for IGPA/Takamul:

Drafted: Savannah ThomasArrigo, PRO

A/DMD: Joseph Foltz Date: 05/26/2020

5/29/2020 USAID Mail - Re: IGPA J&A - Invitation to edit https://mail.google.com/mail/u/0?ik=00f62996c1&view=pt&search=all&permthid=thread-f%3A1667742653172091042%7Cmsg-f%3A16677456933772… 1/2

Olga Ekkert <oekkert@usaid.gov>

Re: IGPA J&A - Invitation to edit 1 message

Joe Foltz <jofoltz@usaid.gov> Tue, May 26, 2020 at 3:43 PM To: Olga Ekkert <oekkert@usaid.gov> Cc: Michael Behan <mbehan@usaid.gov>, Vladan Raznatovic <vraznatovic@usaid.gov>

Clear! :)

Joe Foltz Deputy Director (a) USAID/Iraq

On Tue, May 26, 2020 at 12:08 PM Olga Ekkert <oekkert@usaid.gov> wrote:

Just in the reply email.

Best regards, Olga Ekkert Senior Acquisition Specialist

On Tue, May 26, 2020 at 2:55 PM Joe Foltz <jofoltz@usaid.gov> wrote:

Looks good to me, where do you want me to clear?

Joe Foltz Deputy Director (a) USAID/Iraq

On Tue, May 26, 2020 at 10:03 AM Olga Ekkert (via Google Docs) <drive-shares-noreply@google.com> wrote:

mailto:oekkert@usaid.gov mailto:jofoltz@usaid.gov mailto:drive-shares-noreply@google.com

5/29/2020 USAID Mail - Re: Clearance Request - IGPA J&A https://mail.google.com/mail/u/0?ik=00f62996c1&view=pt&search=all&permthid=thread-a%3Ar-2104526254039719537%7Cmsg-f%3A166793881952… 1/1

Olga Ekkert <oekkert@usaid.gov>

Re: Clearance Request - IGPA J&A 1 message

Michael Behan <mbehan@usaid.gov> Thu, May 28, 2020 at 6:53 PM To: Olga Ekkert <oekkert@usaid.gov> Cc: Zachary Clarke <zclarke@usaid.gov>

Thanks, Olga. I suggested two minor edits that I discussed with Zac, and I cleared. Best, Michael

On Wed, May 27, 2020 at 2:40 PM Olga Ekkert <oekkert@usaid.gov> wrote:

Dear Michael, We've finalized J&A for IGPA. Please provide your clearance.

IGPA J&A

Best regards, Olga Ekkert Senior Acquisition Specialist

USAID/Iraq Acquisition & Assistance Office e-mail: oekkert@usaid.gov

“CONFIDENTIALITY NOTICE: This email message and any attachments to this email message may contain confidential information belonging to the sender which is legally privileged. The information is intended only for the use of the individual or entity to whom it is addressed. Please do not forward this message without permission. If you are not the intended recipient or the employee or agent responsible for delivering it to the intended recipient, you are hereby notified that any disclosure, copying, distribution or the taking of any action in reliance on the contents of this transmission is strictly prohibited. If you have received this transmission in error, please notify us immediately by telephone or return email and delete and destroy the original email message, any attachments thereto and all copies thereof.”

Michael T. Behan Resident Legal Officer USAID Middle East Regional Platform Phone: +49 151 27002265 Email: mbehan@usaid.gov

This communication, along with any attachments, is covered by federal and state law governing electronic communications and may contain confidential and legally privileged information. If the reader of this message is not the intended recipient, you are hereby notified that any dissemination, distribution, use or copying of this message is strictly prohibited. If you have received this in error, please reply immediately to the sender and delete this message. Thank you.

mailto:oekkert@usaid.gov https://docs.google.com/document/d/1l6JdxJNS1Vo4IHTUCLF-8QturUD6zT7R3WLNSVAVuUc/edit?usp=drive_web mailto:ttimoshenkova@usaid.gov mailto:mbehan@usaid.gov

5/29/2020 USAID Mail - Re: Clearance Request - IGPA J&A https://mail.google.com/mail/u/0?ik=00f62996c1&view=pt&search=all&permthid=thread-a%3Ar-2104526254039719537%7Cmsg-f%3A166802536208… 1/2

Olga Ekkert <oekkert@usaid.gov>

Re: Clearance Request - IGPA J&A 1 message

Vladan Raznatovic <vraznatovic@usaid.gov> Fri, May 29, 2020 at 5:48 PM To: Olga Ekkert <oekkert@usaid.gov> Cc: Zachary Clarke <zclarke@usaid.gov>

I clear the attached document.

vlad

On Fri, May 29, 2020 at 2:41 PM Olga Ekkert <oekkert@usaid.gov> wrote:

Hi Vladan, Please provide your clearance for the finalized J&A. Thank you.

IGPA J&A

Best regards, Olga Ekkert Senior Acquisition Specialist

USAID/Iraq Acquisition & Assistance Office e-mail: oekkert@usaid.gov

“CONFIDENTIALITY NOTICE: This email message and any attachments to this email message may contain confidential information belonging to the sender which is legally privileged. The information is intended only for the use of the individual or entity to whom it is addressed. Please do not forward this message without permission. If you are not the intended recipient or the employee or agent responsible for delivering it to the intended recipient, you are hereby notified that any disclosure, copying, distribution or the taking of any action in reliance on the contents of this transmission is strictly prohibited. If you have received this transmission in error, please notify us immediately by telephone or return email and delete and destroy the original email message, any attachments thereto and all copies thereof.”

---------- Forwarded message --------- From: Michael Behan <mbehan@usaid.gov> Date: Thu, May 28, 2020 at 6:53 PM Subject: Re: Clearance Request - IGPA J&A To: Olga Ekkert <oekkert@usaid.gov> Cc: Zachary Clarke <zclarke@usaid.gov>

Thanks, Olga. I suggested two minor edits that I discussed with Zac, and I cleared. Best, Michael

On Wed, May 27, 2020 at 2:40 PM Olga Ekkert <oekkert@usaid.gov> wrote:

Dear Michael, We've finalized J&A for IGPA. Please provide your clearance.

IGPA J&A

Best regards, Olga Ekkert Senior Acquisition Specialist

USAID/Iraq mailto:oekkert@usaid.gov https://docs.google.com/document/d/1l6JdxJNS1Vo4IHTUCLF-8QturUD6zT7R3WLNSVAVuUc/edit?usp=drive_web mailto:ttimoshenkova@usaid.gov mailto:mbehan@usaid.gov mailto:oekkert@usaid.gov mailto:zclarke@usaid.gov mailto:oekkert@usaid.gov https://docs.google.com/document/d/1l6JdxJNS1Vo4IHTUCLF-8QturUD6zT7R3WLNSVAVuUc/edit?usp=drive_web