JA_HEDS Cost Extension_approved_SAM.pdf

JUSTIFICATION AND APPROVAL FOR OTHER THAN FULL AND OPEN

COMPETITION (J&A)

TO: Deborah Broderick, Agency Competition Advocate, USAID/Washington

FROM: Thao Nguyen, Contracting Officer’s Representative, USAID/Vietnam, Education, Economic Growth and Governance Office

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 706.3:

This document was prepared by USAID/Vietnam Education, Economic Growth and Governance Office for contract # 72044023C00002, hereafter referred to as Higher Education Development Support (HEDS). The authority used for this J&A is AIDAR 706.302-70(b)(5), impairment of foreign aid programs - continued provision of highly specialized services.

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

This is a request to approve a contract modification for the HEDS award to Chemonics International, Inc. (Chemonics) to add $5,719,819 to the current Total Estimated Cost (TEC) of $15,417,424, thus increasing it to $21,137,243. Under this action, Chemonics will expand activities under the existing contract objectives to specifically provide support to Vietnam National University Hanoi (VNUHN), Vietnam National University Ho Chi Minh (VNUHCM), and University of Da Nang (UD).

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

HEDS was awarded to Chemonics on September 25, 2023. The five-year contract (September 2023 - September 2028) will provide strategic support at the sector/system level to the Ministry of Education and Training (MOET) and targeted higher education institutions through: (1) analyzing higher education policy implementation, supporting MOET in developing and implementing proposals to improve higher education system performance and enabling environment; (2) accelerating the digital transformation of higher education; and (3) internationalizing undergraduate and postgraduate programs in a number of higher education institutions. This will help Vietnam develop the human resources to realize its ambitious socioeconomic development goals. HEDS is implemented in partnership with the American Council for Education—the umbrella organization of U.S. higher education.

USAID/Vietnam previously awarded the Partnership for Higher Education Reform (PHER) activity to a different implementing partner (IP). The purpose was to support two Vietnamese national universities and UD in their endeavor to establish an autonomous, world-class university system. The TEA for this cooperative agreement was $14,200,000, with a performance period from August 2021 to August 2026. However, the award will not be funded beyond March 2025, leaving the goal to assist the three universities incomplete. Given the strong commitment and interest from the universities and the Government of Vietnam (GVN) to continue the activities without significant delays, we intend to extend the scope and cost of HEDS, utilizing the unobligated funds from PHER, to continue assistance to the three universities. The Ministerial-level Presidents of VNUHN and VNUHCM, as well as the President of UD expressed their strong commitment and interest in the continuation of the activity and willingness to collaborate with another IP identified by USAID.

In order for U.S. foreign assistance to be implemented in Vietnam, the GVN must approve the proposed projects in a process that takes twelve to eighteen months after an activity mechanism has been awarded. Not every activity is eventually approved and sometimes the awards must be closed out early without achieving deliverables. The PHER activity has already received this difficult to achieve project approval, and the performance responsibility for this activity will be transferred to Chemonics’ ongoing activity without undue delay to the implementation of foreign assistance.

The services covered by the cost extension will include technical assistance and grants to VNUHN, VNUHCM, and UD in the following areas:

- Establish robust internal quality assurance systems and modernize management information systems to improve university governance and operations

- Provide faculty training in state-of-the-art course design and digitizing curriculum to increase access to high-quality resources. Foster faculty networks across universities to encourage cross-learning and cooperation.

- Strengthen research and innovation through faculty exchanges and training, private sector collaboration, visiting scholar programs, conferences and workshops, and aligning research activities to the social and economic needs of the country.

These interventions will also contribute to the achievement of the HEDS’ objectives.

To ensure a smooth transition, Chemonics will begin recruiting personnel for the PHER activity after the contract modification, conduct consultations with existing PHER IP and World Bank on past and present assistance to the partner universities, meet with the partner universities to understand their priorities and ongoing assistance needs, and develop a new PHER workplan with tailored interventions and appropriate assistance handover for each of the partner university.

To ensure no overlapping interventions by Chemonics and the current PHER IP, Chemonics will closely coordinate with the partner universities and the current IP on when Chemonics interventions will begin during the closeout stage of the IU award, notionally between January- March 2025.

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

AIDAR 706.302-70(b)(5) allows for other than full and open competition to avoid the impairment of foreign assistance objectives in the case that an award for the continued provision of highly specialized services when awarded to another resource would result in substantial additional costs to the government or would result in unacceptable delays. AIDAR 706.302- 70(c)(5) provides that use of this authority for proposed follow-on modifications and awards for the continued provision of highly specialized services in excess of one year or over $250,000 is subject to the approval of the Agency Competition Advocate.

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

The GVN has complex procedures and regulations for approving Official Development Assistance projects, including USAID projects. It usually takes twelve to eighteen months to get GVN approval for implementation. The timeframe for international organizations and contractors to obtain business registration is unpredictable, especially the registration of International Non-Governmental Organizations, which requires verifications with many authorities at different levels. Even the high-visibility PHER project was approved on July 31, 2022, twelve months after the award. Given the Vietnam operating context, a full and open competition to continue the remaining seventeen months of PHER assistance would entail a long procurement process and a new award with a new IP would come at a substantial additional cost to the USG compared to utilizing an existing implementing mechanism and IP.

A new award/IP would require a new GVN project approval that would result in unacceptable delays, whereas having an existing IP to continue carrying PHER activities within the original approved project scope, remaining USAID funding, and remaining project period of PHER will eliminate the need for a brand new GVN project approval and registration for new organization.

It is expected that this approach will prevent the need for a new GVN project approval, preserve the existing PHER timeline which the GVN is also contributing staff and funding to, and avoid at least eighteen months of solicitation and re-project approval, which also includes hundreds of thousands of dollars in costs and a project approval process fraught with reputational and performance risks.

Currently, Chemonics is the only contractor under the Higher Education Portfolio qualified to do this work, and according to market research is the only potential partner positioned to implement in a reasonable timeframe with a reasonable expectation of successful performance. Chemonics has demonstrated significant success in implementing large scale and complex USAID-funded policy reform activities with the Vietnam Governance for Inclusive Growth Program. With long-standing experience in Vietnam, Chemonics has developed key expertise and relationships on the ground for HEDS and has already effectively navigated the regulatory bureaucracies to complete the start-up phase and expedited the government project approval process. In addition, with the current office and staffing in place in the country, Chemonics can right away roll out the activities without even having to seek project approval, which helps USAID/Vietnam to save significant funding and efforts as well as minimize the further delays of the implementation.

Results of the market research carried out for both PHER and HEDS indicates that there were no potential local contractors qualified to provide the required services. In addition to that, no qualified local entity and no local entity expressed interest in the solicitation of both PHER and HEDS respectively. As such, a direct award to local contractor(s) was not considered. Among international contractors and non-governmental organizations (NGOs), Vietnam has the reputation of being a difficult place to work with a nearly closed civil society, a burdensome bureaucracy with vague rules too often enforced selectively, and risk to implementer staff who often bear civil and criminal personal liability for ensuring that award performance and cost management are well managed. Well known U.S. organizations have been directly banned from working in Vietnam as well. This has led to very few serious and interested contractors and NGOs expressing interest in working in Vietnam, and even fewer having actual expertise to competently navigate the complicated inter-ministerial, provincial, and national authority relationships necessary to successfully implement in Vietnam.

Chemonics has the unique position, expertise and relationship in Vietnam necessary to take on this activity. The IP has completed the start-up phase for HEDS within the planned time and has progressed well with MOET on project approval. No other potential implementing partner is presently positioned to mobilize fast enough, set up an office, hire personnel, navigate the multitude of approvals to begin engagement, and establish an existing relationship with MOET in time to meet the activity’s strict deliverables timeline while also instilling confidence in the host government counterparts.

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

FAR 5.2 [AIDAR 705.2].

A notice of the proposed non-competitive extension was publicized on SAM.gov on April 3, 2024 in accordance with AIDAR 706.302-70(c) (3) and FAR 5.201. The Notice provided interested parties with fifteen (15) calendar days to submit expressions of interest. The open period for responses expired on April 17, 2024. No submissions were received in response.

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

An Independent Government Cost Estimates (IGCE) was developed by the USAID/Vietnam/Higher Education team. The IGCE is based on historical costs/prices and other market data. The Contracting Officer may use the IGCE, in addition to USAID/Vietnam Office of Acquisition & Assistance cost analysis of the budget proposed by the contractor, to ensure a fair and reasonable cost.

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

Based on the market research carried out for both PHER and HEDS, as well as the level of interest received in response to the solicitation of the PHER and HEDS, the Mission determined that it would not be possible for another contractor to provide the required services at the expected level of quality on a timely and cost-efficient basis.

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

In August 2021, Vice President Harris visited Vietnam and underscored the United States’ commitment to the future of Vietnam, which included the announcement of USAID’s Partnership for Higher Education Reform, a five-year project providing up to $14.2 million to strengthen teaching, research, innovation, and governance within the three largest public universities in Vietnam, namely VNUHN, VNUHCM, and UD. In September 2023, President ive Strategic Partnership, which included the announcement of USAID’s five-year HEDS project with MOET to modernize and internationalize Vietnam’s higher education sector. PHER and HEDS are USAID/Vietnam’s flagship higher education reform assistance to the GVN and are integral to the enduring bilateral cooperation as signified by the announcements during the Vice President and President visits.

USAID is responsible, through the implementation of these activities, for fulfilling USG commitments on this important partnership in the higher education sector between the USG and GVN. In addition to the increased unnecessary costs to the USG, a full and open competition would result in failure to effectively continue education reform assistance under the new Comprehensive Strategic Partnership which will potentially harm bilateral trust and commitment on future partnership cooperation.

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

None.

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:

The additional services and resources required to extend the HEDS contract aim to finish activities left incomplete under the PHER award. There are no practical alternatives to the proposed contract modification that would allow the Agency to complete the work without undue delay and significant additional cost. The Agency intends to compete future requirements, if any, through full and open competition.

12. Technical or Requirements Personnel Certification:

In accordance with FAR 6.303, I hereby certify that the technical statements included above and which form a basis for the justification are complete and accurate.

Thao Nguyen, Project Management Specialist

Date

Thao Nguyen Phuong

Digitally signed by Thao Nguyen Phuong Date: 2024.04.24 19:15:06 +07'00'

13. Contracting Officer Certification:

In accordance with FAR 6.303, I hereby certify that the justification is accurate and complete to the best of my knowledge and belief.

Bryan Moody, Contracting Officer Date

14. Approved:

Deborah Broderick, Agency Competition Advocate Date

Bryan S. Moody Digitally signed by Bryan S. Moody Date: 2024.04.24 20:59:42 +07'00'

Deborah Broderick Deputy Director, Office of Acquisition & Assistance APPROVED (approved via email - available on file) May 9, 2024

[STAND ALONE PAGE]

Internal Agency Clearances:

1. Office Director Clearance:

______Cleared___________________ _____4/23/2024________ Douglas Balko, E2G2 Office Director Date

2. Resident Legal Officer Clearance:

____cleared_________________________ _____3/6/2024________ Karen d'Aboville, Resident Legal Officer Date