DAI JandA Fully Signed 08072020.pdf

JUSTIFICATION AND APPROVAL (J&A)

TO: Natalie J. Thunberg, Contracting Officer

CC: Deborah Broderick, Agency Competition Advocate

FROM: Claudia Agreda, COR Nexos Locales Project

DATE: August 06, 2020

RE: Contract AID-520-C-14-00002 - Implemented by DAI Global LLC

SUBJECT: Justification for Other than Full and Open Competition under the Expedited

Procedures Package (EPP) for Responding to Outbreaks of Contagious Infectious Diseases

We request approval of this justification for use of other than full and open competition pursuant to the authorities under the EPP for Responding to Outbreaks of Contagious Infectious Diseases (the “Expedited Procedures Package”), approved on March 24, 2020. Your approval of this J&A constitutes the justification for other than full and open competition as required by Tab 1 (Determination and Findings (D&F) Authorization for the Use of Other than Full-and-Open Competition in the Award or Modification of Contracts) of the EPP.

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

You are requested to approve a non-competitive modification of Contract 520-C-14-00002 with DAI Global LLC that implements USAID/Guatemala’s Nexos Locales Project. This modification will increase the total estimated cost of the contract by $4,998,750 dollars from $26,296,119 to $31,294,869, extend the duration of the award by 12 additional months, and update the statement of work to allow DAI Global LLC to continue to work with key offices in 22 prioritized municipalities; two municipal associations (mancomunidades MANQOSEC, MANCUERNA); the National Association of Municipalities (ANAM), and the Guatemalan Association of Mayors and Indigenous Authorities (AGAAI) to respond to the impacts of the COVID-19 emergency.

Approval of this authority for exceptions to full-and-open competition is necessary to provide the flexibility that is essential to USAID’s ability to implement activities that respond to the COVID- 19 outbreak by strengthening local capacity at the municipal level. Approximately 74% of municipal authorities who took office in January 2020 were newly elected. As anticipated, a significant number of municipal technical personnel were replaced with new and inexperienced staff. Less than three months after taking office the new authorities were challenged with responding to the COVID-19 global pandemic.

Municipal governments are at the forefront of responding to the COVID-19 health crisis in Guatemala. The COVID-19 situation requires mayors to act with conviction in investing resources required for providing municipal services. For example: potable water, actions to promote local economic development, food security and nutrition all require strong municipal leadership.

Additionally, Mayors will face a decline in their generation of revenue due to the pandemic.

Unemployment and government curfews have caused a decline in the payment of municipal taxes which forces mayors to make the best use of their limited resources and apply tools and technology to facilitate revenue collection. Supporting municipal governments in the generation of their own source revenue as well as improved planning and financial management will be critical in their ability to immediately respond to COVID-19 as well as promote municipal programs that will support the municipality during the recovery phase.

The Nexos Locales Project has gained the trust of the new municipal authorities who are partnering with the Project; however, the project is scheduled to end June 2022 and currently has limited pipeline available to respond to the urgent and diverse needs that municipalities face due to COVID-19. Providing DAI additional funds, as well as an extension in its period of performance will assure that USAID responds to the need for strengthening municipal capacity to respond to the COVID-19 emergency.

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

This modification will increase the total estimated cost of the contract by $4,998,750 dollars from $26,296,119 to $31,294,869 and will extend the duration of the award by 12 additional months.

The current health crisis, posed by COVID-19, requires increased capacity from municipal governments in the Western Highlands to ensure access to safe water, provide efficient services, manage their funding efficiently and transparently and s develop and implement socioeconomic recovery plans to respond to the emergency. Municipalities, and communities more broadly, also need to increase their resiliency to the COVID-19 pandemic. The proposed scope of work for the increase to the total estimated cost includes assistance to strengthen 22 Municipalities and 2 Mancomunidades to do the following:

● Support municipal capacity to provide sustainable access to safe water as a means to prevent COVID-19 from spreading. These activities will provide municipal governments and mancomunidades with technical assistance to enable them to guarantee the provision of safe water to citizens, for both human consumption and as a line of defense against the spread of the COVID-19. Examples of activities to be implemented include: providing technical assistance to Municipal Water and Sanitation Offices to enable them to improve sustainable maintenance of municipal water systems; providing training to community authorities responsible for water administration (otherwise known as fontaneros in Spanish) on the importance of water chlorination and how to chlorinate water for preventing the spread of COVID-19. Municipalities will also be encouraged to implement four specific actions: involve the Government of Guatemala, private sector, international donors, and civil society (including community development councils) in co-creating action plans to help combat the spread of COVID-19;

● Strengthen the capacities of municipal Health and Nutrition Comissiones to address food insecurity in the targeted area and increase municipal resilience to COVID-19 pandemic and climate change impacts.

● Support municipalities in designing, conducting and/or broadcasting culturally sensitive media campaigns to promote best practices on Food Security and Nutrition, due to vulnerabilities exacerbated by COVID-19 Media campaigns will also address hand washing and safe water consumption as a means for transmission prevention and combating the spread of COVID-19; and, the importance of paying for municipal services as a means for municipalities to mitigate the negative impacts of COVID-19..

● Provide tailored technical assistance to key municipal offices1 with newly elected officials following the January 2020, that focuses on the impacts of COVID-19.

● Support the modernization of own-source revenue and procurement systems to ensure transparent acquisition and delivery of key municipal services that respond to the effects of COVID-19. Activities in this area would replicate past successes in modernization such as the water reading App and the Transparency App.

● Implementation of Local Socioeconomic Development Resiliency Strategies to assist targeted mancomunidades, municipalities and their citizens in economic recovery from the COVID-19 crisis. This socioeconomic development strategy includes the following:

○ Technical assistance to the Municipal Offices of Local Economic Development in seeking access to finance for micro and small-to-medium size enterprises, especially women and youth-owned enterprises;

○ Technical assistance to municipalities in the implementation of development plans for the period of 2021-2032 (longer term planning) required by the Planning and Programming Presidential Secretariat (SEGEPLAN)

○ Support municipal efforts for restarting the local economy; and

○ Encourage and support mancomunidades and municipal efforts to enroll in the national government’s reforestation program to receive subsidies in accordance with eligibility requirements of the National Association of Forestry (INAB).

● Provide technical assistance to ensure that historically marginalized groups including indigenous populations, women and youth have access to essential services during the COVID-19 emergency, and participate in decision making processes at the municipal level to ensure their inclusion in economic recovery strategies.

c. Identification of statutory authority permitting other than full and open competition.

AIDAR 706.302-70(b)(3) and 40 U.S.C. §113(e)(2); See the “Expedited Procedures Package for Responding to Outbreaks of Contagious Infectious Diseases” approved March 24, 2020. The D&F is attached to this file in Tab 1. The EPP can only be used for an Infectious Disease Outbreak, as defined in paragraph 2 of the D&F (Tab 1). The COVID-19 outbreak was declared a Public Health Emergency of International Concern by the World Health Organization (WHO) on January 30, 2020, and therefore the class D&F applies to COVID-19 emergency response activities.

1 Municipal Women´s Directorates, Commission for Economic Growth, Tourism, Environment and Natural Resources, Municipal Administrative Financial Directorate, Municipal Water and Sanitation Office, Municipal Office for Economic Development, among others.

d. A discussion of the proposed contractor’s unique qualifications or the nature of the acquisition that requires use of the authority cited.

By early March of 2020, the COVID-19 pandemic had severely impacted the government's ability to provide basic services, as they confronted a nationwide socio-economic crisis that increased expenses and decreased revenues for the remainder of 2020 and the coming years. In this incredibly challenging context, the Nexos Locales Project has the trust of the new municipal authorities who are looking to the Project for guidance and support as they respond to the COVID- 19 crisis. The project is well placed to quickly assist municipalities navigate this crisis through the two offices that are already located within the targeted municipalities, and with the technical staff in place that are known and respected by local authorities. The project is currently working with Municipalities to respond to the COVID-19 emergency, including the co-implementation of the Safe Water Against Coronavirus Initiative, which gained interest from the Vice President of Guatemala, due to its strategic approach. The quality of the services and commitment provided by the Contractor has exceeded expectations, which has been recognized by USAID/Guatemala and USAID Washington and is consistently reflected in its annual CPARS.

e. A description of efforts made to ensure that offers are solicited from as many potential sources as is practicable.

Nexos Locales Project was awarded through a full and open competition. Per AIDAR 705.202(b), information regarding the proposed action was not publicized as advance notice is not required.

The EPP authorizes the use of other than full and open competitive procedures (pursuant to AIDAR 706.302-70(b)(3)(ii)) when issuing or modifying contract award to respond to an Outbreak. In accordance with FAR 6.305(a), this justification will be made publicly available within 14 days after the modification to the contract is signed.

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

The Contracting Officer has determined that the anticipated costs to the U.S. Government will be fair and reasonable. The current rates, negotiated following a full and open competition in connection with the original contract and subsequent modifications, will remain the same in accordance with the formula established in the original contract.

The amount of resources requested is consistent with funding that has been provided through Nexos Locales for similar activities. Average expenditures (before the Period Review FY 2019) for this activity were approximately $440,000 per month based on the average budget per the current contract. The Nexos Locales Project will implement focused activities for twelve additional months. The activities that will be supported during the twelve-months extension directly respond to the negative consequences of COVID-19 in the areas of governance, health and nutrition and economic development issues. Moreover, these activities will specifically focus on the most vulnerable populations, especially women, youth and indigenous peoples.

g. A description of the market research conducted (see FAR Part 10) and the results or a statement of the reason(s) market research was not conducted.

Market research was not conducted. Given the urgency of this requirement in response to the COVID-19 crisis, and relying upon the experiences of the procurement for this award and other procurements in the Mission, it is not feasible to select another contractor who is familiar with the breadth and scope of the work to be undertaken. Additionally, given the current emergency there is not sufficient time to bring in new partners through a competitive award process.

h. A listing of the sources, if any, that expressed, in writing, an interest in the acquisition.

Publication of a notice is not required per the determination at AIDAR §705.202(b), and no sources submitted a written expression of interest in this acquisition.

i. A statement of the actions, if any, USAID may take to remove or overcome any barriers to competition before any subsequent acquisition of the supplies or services required.

At this moment, no other organization is positioned to provide the required assistance given the urgency of the needs and the fact that the current contractor has the relationships, respect and trust of the Municipal authorities. In this urgent response to the COVID-19 outbreak, USAID will intensify efforts to expand support to the municipal governments to immediately respond to COVID-19 as they are the closest authority to citizens. By strengthening the capacity of municipalities they will not only improve key services in response to COVID-19 but will also be prepared to plan for economic recovery that is inclusive and tailored to local needs. The Project will seek to partner with government institutions, private sector, other donors as well as other USAID interventions to ensure these efforts are sustainable.

RECOMMENDATION

It is recommended that you approve this justification for use of other than full and open competition pursuant to the “Expedited Procedures Package for Responding to Outbreaks of Contagious Infectious Diseases”, approved on March 24, 2020. Your approval of this J&A constitutes the justification for other than full and open competition as required by Tab 1 (D&F for the Authorization of Less than Full and Open Competitive Procedures in the Modification or Award of Contracts) of the EPP.

Ecl. Tab 1- EPP D&F for the Authorization of Less than Full and Open Competitive Procedures in the Modification or Award of Contracts.

CERTIFICATION:

The requirement for technical certification at FAR 6.303-1(c) is fulfilled through:

a. The signature of the Technical Officer below certifying the specific supporting data for this J&A; and

b. The D&F Authorization for the Use of Other than Full-and-Open Competition in the Award or Modification of Contracts under the Expedited Procedures Package for Responding to Outbreaks of Contagious Infectious Diseases” approved on March 24, 2020. (attached in Tab 1).

The Contracting Officer is the Approving Official based on the authority given under the EPP.

However, a separate Contracting Officer certification is not required per AIDAR 706.302-70(c)(1).

Technical Officer:

I hereby certify that the supporting data which form a basis for the justification are complete and accurate to the best of my knowledge and belief.

______________________________ __August 7, 2020____ Claudia Agreda, COR Date

APPROVAL:

______________________________ ______08/07/2020_______ Natalie J. Thunberg Date Contracting Officer

CLEARANCE:

__Clear w/ edits (see email)__________________ ___7AUG2020___________ Mark Kerr Date

RLO