RFP-72016921R00006_Public Procurement Activity.pdf

Issue Date: November 1, 2021

Questions Due Date: November 9, 2021, 2021 at 5 pm, Belgrade time.

Proposals Due Date: December 7, 2021 at 5pm, Belgrade time

SUBJECT: Request for Proposal (RFP) No. 72016921R00006 for USAID/Serbia Public Procurement Activity

Dear Prospective Offeror:

The United States Government, represented by the U.S Agency for International Development (USAID), through the Regional Office for Acquisition and Assistance in Kosovo, is seeking proposals from qualified organizations to implement Public Procurement Activity in Serbia, as described in section C of this solicitation. This is a USAID/Serbia Democracy and Governance portfolio activity, and the goal of this activity is to strengthen the institutional capacities for the management and oversight of a fair, open, non-discriminatory, and transparent public procurement process.

USAID/Serbia anticipates awarding one Cost Plus Fixed Fee (CPFF) contract as a result of this solicitation covering an estimated period of five (5) years from the date of the award. The principal geographic code for this contract is 937. The North American Industry Classification System (NAICS) code for this acquisition is 541611.

Subject to availability of funds, USAID estimates the available funding for this activity to be up to $15 million. USAID’s intent is to maximize the best value obtainable and is in no way obligated to make an award within the maximum estimated amount. Offerors should not strive to meet the maximum amount; rather, offerors should propose the best technical/management solution, and costs that are appropriate, realistic, and reasonable, and in accordance with the proposed approach for achieving the activity objectives.

This procurement will be conducted under full and open competition, pursuant to Part 15 of the Federal Acquisition Regulation (FAR) (48 CFR Chapter 1). All types of organizations are eligible to compete; USAID encourages the participation to the maximum extent possible of local Serbian organizations, small business concerns, veteran owned small businesses, service-disabled veteran small businesses, HUB zone small businesses, small disadvantaged businesses, women-owned small business concerns and small business concerns in this activity as the prime contractor or as subcontractors. USAID discourages the use of exclusive agreements as this limits USAID’s and Serbia’s ability to receive the best services. This applies to personnel

SOLICITATION No. 72016921R00006 Public Procurement activity Serbia and subcontractors, international and local organizations. USAID discourages the use of exclusive agreements as this limits USAID’s and Serbia’s ability to receive the best services. This applies to personnel and subcontractors, international and local organizations.

Any questions regarding this solicitation and the proposals must be submitted via email only to the points of contact for this activity, Dukagjin Hasani at dhasani@usaid.gov and Branislav Bulatovic at bbulatovic@usaid.gov by the date and time specified on the first page. If your organization decides to submit a proposal in response to this solicitation, detailed requirements for Offerors’ proposals are outlined in Section L of this solicitation. Proposals must be signed by an official who is authorized to bind the organization and are to be submitted via email only to USAID’s points of contact no later than the closing date and time stated on the first page.

USAID reserves the right to amend or rescind this solicitation at any time. This solicitation, amendments to this solicitation, and announcement of contract award will be made available through the government point of entry at https://sam.gov/. It is the Offeror’s responsibility to check this site periodically for official updates to this solicitation. Issuance of this solicitation and the submission of a proposal do not constitute a commitment on the part of the U.S.

Government or USAID to make an award, nor does it constitute an obligation for any costs incurred in the preparation and submission of a proposal.

USAID appreciates the time and effort put into preparing proposals in response to this solicitation.

Sincerely, Boryana Boncheva Contracting Officer USAID/Serbia mailto:cberkowitz@usaid.gov https://sam.gov/

72016921R00006

SOLICITATION, OFFER AND AWARD

4. TYPE OF SOLICITATION2. CONTRACT NUMBER 3. SOLICITATION NUMBER

7. ISSUED BY CODE 8. ADDRESS OFFER TO (If other than Item 7)

ORDER UNDER DPAS (15 CFR 700)

6. REQUISITION/PURCHASE NUMBER

NOTE: In sealed bid solicitations "offer" and "offeror" mean "bid" and "bidder".

NEGOTIATED (RFP)

SEALED BID (IFB)

5. DATE ISSUED

1. THIS CONTRACT IS A RATED RATING PAGE OF PAGES

3 102

C. E-MAIL ADDRESS

EXT.NUMBERAREA CODE

B. TELEPHONE (NO COLLECT CALLS)A. NAME

10. FOR

INFORMATION

CALL:

CAUTION: LATE Submissions, Modifications, and Withdrawals: See Section L, Provision No. 52.214-7 or 52.215-1. All offers are subject to all terms and conditions contained in this solicitation.

(Date)(Hour) local timeuntildepository located in copies for furnishing the supplies or services in the Schedule will be received at the place specified in Item 8, or if hand carried, in the

SOLICITATION

9. Sealed offers in original and

PART IV - REPRESENTATIONS AND INSTRUCTIONS

OTHER STATEMENTS OF OFFERORS

EVALUATION FACTORS FOR AWARD

INSTRS., CONDS., AND NOTICES TO OFFERORS

REPRESENTATIONS, CERTIFICATIONS AND

LIST OF ATTACHMENTS

CONTRACT CLAUSES

PART III - LIST OF DOCUMENTS, EXHIBITS AND OTHER ATTACH.

I

J

K

L

M SPECIAL CONTRACT REQUIREMENTS

CONTRACT ADMINISTRATION DATA

DELIVERIES OR PERFORMANCE

INSPECTION AND ACCEPTANCE

PACKAGING AND MARKING

DESCRIPTION/SPECS./WORK STATEMENT

SUPPLIES OR SERVICES AND PRICES/COSTS

SOLICITATION/CONTRACT FORM

PART II - CONTRACT CLAUSESPART I - THE SCHEDULE

H

G

F

E

D

C

B

A

SEC. DESCRIPTION PAGE(S) (X) DESCRIPTION SEC. (X)

11. TABLE OF CONTENTS

18. OFFER DATE17. SIGNATURE

SUCH ADDRESS IN SCHEDULE.

IS DIFFERENT FROM ABOVE - ENTER

15C. CHECK IF REMITTANCE ADDRESS

EXT.NUMBERAREA CODE

15B. TELEPHONE NUMBER

(Type or print)AND

ADDRESS

OF

OFFEROR

CODE FACILITY

16. NAME AND TITLE OF PERSON AUTHORIZED TO SIGN OFFER15A. NAME

DATEAMENDMENT NO.DATEAMENDMENT NO.

and related documents numbered and dated):

amendments to the SOLICITATION for offerors

(The offeror acknowledges receipt of

14. ACKNOWLEDGEMENT OF AMENDMENTS

CALENDAR DAYS (%)30 CALENDAR DAYS (%)20 CALENDAR DAYS (%)10 CALENDAR DAYS (%)

(See Section I, Clause No. 52.232.8)

13. DISCOUNT FOR PROMPT PAYMENT

designated point(s), within the time specified in the schedule.

by the offeror) from the date for receipt of offers specified above, to furnish any or all items upon which prices are offered at the price set opposite each item, delivered at the

NOTE: Item 12 does not apply if the solicitation includes the provisions at 52.214-16, Minimum Bid Acceptance Period.

OFFER (Must be fully completed by offeror)

IMPORTANT - Award will be made on this Form, or on Standard Form 26, or by other authorized official written notice.

28. AWARD DATE

(Signature of Contracting Officer)

27. UNITED STATES OF AMERICA

25. PAYMENT WILL BE MADE BY

26. NAME OF CONTRACTING OFFICER (Type or print)

CODE 24. ADMINISTERED BY (If other than Item 7)

ITEM

(4 copies unless otherwise specified)

23. SUBMIT INVOICES TO ADDRESS SHOWN IN

41 U.S.C. 253 (c) ( 10 U.S.C. 2304 (c) (

22. AUTHORITY FOR USING OTHER THAN FULL AND OPEN COMPETITION:

21. ACCOUNTING AND APPROPRIATION20. AMOUNT19. ACCEPTED AS TO ITEMS NUMBERED

AWARD (To be completed by government)

CODE

REQ-169-21-00004111/01/2021

X

720169

USAID/Serbia 11040

1700 A 12/07/2021

Dukagjin Hasani dhasani@usaid.gov

X

X

X

X

X

X

X

X

X

X

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PAGE(S)

Boryana Boncheva

AUTHORIZED FOR LOCAL REPRODUCTION

Previous edition is unusable

STANDARD FORM 33 (Rev. 9-97)

Prescribed by GSA - FAR (48 CFR) 53.214(c)

12. In compliance with the above, the undersigned agrees, if this offer is accepted within _____0_________ calendar days (60 calendar days unless a different period is inserted

TABLE OF CONTENTS

PART I – SCHEDULE 9

SECTION B – SUPPLIES OR SERVICES AND PRICE/COSTS 9

PURPOSE 9

CONTRACT TYPE 9

ESTIMATED COST, FEE, AND OBLIGATED AMOUNT 9

PRICE SCHEDULE 9

INDIRECT COST 10

ADVANCE UNDERSTANDINGS ON CEILING INDIRECT COST RATES AND FINAL

REIMBURSEMENT FOR INDIRECT COSTS 10

COST REIMBURSABLE 11

PAYMENT OF FIXED FEE 11

MULTI-YEAR CONTRACT AND CANCELLATION CEILING 12

SECTION C – SCOPE OF WORK 13

TITLE OF ACTIVITY 13

PURPOSE 13

BACKGROUND 13

ACTIVITY IMPLEMENTATION 16

SPECIAL ACTIVITIES FOR RAPID RESPONSE 20

COLLABORATION, LEARNING AND ADAPTATION 20

COORDINATION WITH OTHER USAID ACTIVITIES AND STAKEHOLDERS 21

SECTION D – PACKAGING AND MARKING 22

AIDAR 752.7009 MARKING (JAN 1993) 22

BRANDING 22

SECTION E – INSPECTION AND ACCEPTANCE 23

NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE 23

INSPECTION AND ACCEPTANCE 23

SECTION F – DELIVERIES AND PERFORMANCE 24

NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE 24

PLACE OF PERFORMANCE 24

PERIOD OF PERFORMANCE 24

PERFORMANCE STANDARDS 24

KEY PERSONNEL 25

REPORTS AND DELIVERABLES OR OUTPUTS 26

DISTRIBUTION OF PROJECT MATERIALS, PARTICIPATION PARTNER MEETINGS

AND PUBLIC EVENTS 33

SECTION G – CONTRACT ADMINISTRATION DATA 35

NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE 35

FEDERAL ACQUISITION REGULATION (FAR) (48 CFR CHAPTER 1) 35

NUMBER TITLE DATE 35

752.7003 DOCUMENTATION FOR PAYMENT (NOV 1998) 35

ADMINISTRATIVE CONTRACTING OFFICE 35

CONTRACTING OFFICER'S AUTHORITY 35

CONTRACTING OFFICER'S REPRESENTATIVE (COR) 35

CONTRACTOR’S PRIMARY POINT OF CONTACT 35

TECHNICAL DIRECTIONS/RELATIONSHIP WITH USAID 35

PAYMENT AND INVOICES 37

APPROVED SUBCONTRACTORS 37

ACCOUNTING AND APPROPRIATED DATA 38

SECTION H – SPECIAL CONTRACT REQUIREMENTS 39

FOREIGN GOVERNMENT DELEGATIONS TO INTERNATIONAL CONFERENCES 39

AUTHORIZED GEOGRAPHIC CODE 39

LOGISTIC SUPPORT 39

EXECUTIVE ORDER ON TERRORISM FINANCING 39

PROHIBITION AND ASSISTANCE TO DRUG TRAFFICKING 39

ADDITIONAL REQUIREMENTS FOR PERSONNEL COMPENSATION 39

LANGUAGE REQUIREMENTS 42

CONFIDENTIALITY AND OWNERSHIP OF INTELLECTUAL PROPERTY 42

GOVERNMENT FURNISHED FACILITIES OR PROPERTY 42

ENVIRONMENTAL COMPLIANCE AND REQUIREMENTS 42

USAID IMPLEMENTATION OF SECTION 508 OF THE REHABILITATION ACT OF

1973 AND FEDERAL ACQUISITION CIRCULAR (FAC) 97-27 "ELECTRONIC AND

INFORMATION TECHNOLOGY ACCESSIBILITY 43

ADS 302.3.5.9 NONDISCRIMINATION (JUNE 2012) 43

ADS 302.3.5.19 USAID-FINANCED THIRD-PARTY WEB SITES (NOV 2017) 43

ADS 302.3.5.21 SUBMISSION OF DATASETS TO DEVELOPMENT DATA LIBRARY

(OCT 2014) 45

ELECTRONIC PAYMENTS SYSTEM 46

SEXUAL MISCONDUCT (DECEMBER 2020) 47

ADS 302.3.4.13 GRANTS UNDER CONTRACTS (GUCs) 47

ADS 302.3.5.5 REPORTING OF FOREIGN TAXES (JULY 2007) 48

ENSURING ADEQUATE COVID-19 SAFETY PROTOCOLS FOR FEDERAL

CONTRACTORS (OCT 2021) (DEVIATION #M/OAA-DEV-FAR-22-01c). 49

SUBMISSION REQUIREMENTS FOR DEVELOPMENT EXPERIENCE DOCUMENTS

(Sept 2013) 50

PART II CONTRACT CLAUSES 53

SECTION I – CONTRACT CLAUSES 53

NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE 53

FAR 4.21 PROHIBITION ON CONTRACTING FOR CERTAIN COVERED

TELECOMMUNICATIONS AND VIDEO SURVEILLANCE SERVICES OR

EQUIPMENT (SECTION 889) (JANUARY 2021) 57

FAR 52.216-24 Limitation of Government Liability. 57

FAR 52.216-25 Contract Definitization. 58

FAR 52.217-8 OPTION TO EXTEND SERVICES (NOV 1999) 59

FAR 52.229-8 TAXES – FOREIGN COST-REIMBURSEMENT CONTRACTS (MAR

1990) 59

FAR 52.247-67, SUBMISSION OF TRANSPORTATION DOCUMENTS FOR AUDIT

(FEB 2006) 59

PART III LIST OF DOCUMENTS, EXHIBITS, AND OTHER ATTACHMENTS 63

SECTION J – LIST OF ATTACHMENTS 63

PART IV REPRESENTATIONS AND INSTRUCTIONS 64

SECTION K - REPRESENTATIONS, CERTIFICATIONS AND OTHER STATEMENTS

OF OFFERORS 64

NOTICE LISTING SOLICITATION PROVISIONS INCORPORATED BY REFERENCE64

FAR 52.204-3, TAXPAYER IDENTIFICATION (OCT 1998) 64

FAR 52.204-8, ANNUAL REPRESENTATIONS AND CERTIFICATIONS (MAR 2020) 66

FAR 52.204-24 REPRESENTATION REGARDING CERTAIN TELECOMMUNICATIONS

AND VIDEO SURVEILLANCE SERVICES OR EQUIPMENT (OCT 2020) 70

FAR 52.204-26 COVERED TELECOMMUNICATIONS EQUIPMENT OR

SERVICES-REPRESENTATION (OCT 2020) 73

FAR 52.209-5, CERTIFICATION REGARDING RESPONSIBILITY MATTERS (AUG

2020) 73

FAR 52.209-7, INFORMATION REGARDING RESPONSIBILITY MATTERS (OCT 2018)

FAR 52.209-11 REPRESENTATION BY CORPORATIONS REGARDING DELINQUENT

TAX LIABILITY OR A FELONY CONVICTION UNDER ANY FEDERAL LAW (FEB

2016) 77

FAR 52.209-13 VIOLATION OF ARMS CONTROL TREATIES OR

AGREEMENTS-CERTIFICATION (FEB 2021) 77

FAR 52.219-1, SMALL BUSINESS PROGRAM REPRESENTATIONS (NOV 2020) 79

FAR 52.222-22, PREVIOUS CONTRACTS AND COMPLIANCE REPORTS (FEB 1999)

FAR 52.230-1, COST ACCOUNTING STANDARDS NOTICES AND CERTIFICATION

(JUN 2020) 83

FAR 52.230-7, PROPOSAL DISCLOSURE--COST ACCOUNTING PRACTICE

CHANGES (APR 2005) 86

SIGNATURE 86

SECTION L – INSTRUCTIONS TO OFFERORS 88

FAR 52.252-1 SOLICITATION PROVISIONS INCORPORATED BY REFERENCE (FEB

1998) 88

FAR 52.216-1 TYPE OF CONTRACT (APR 1984) 88

FAR 52.233-2 SERVICE OF PROTEST (SEP 2006) 88

GENERAL INSTRUCTIONS TO OFFERORS 89

SUBMISSION/DELIVERY INSTRUCTIONS 90

GENERAL INSTRUCTIONS FOR THE PREPARATION OF THE TECHNICAL

PROPOSAL 91

TECHNICAL APPROACH 92

KEY PERSONNEL, MANAGEMENT APPROACH AND STAFFING PLAN 93

ORGANIZATIONAL CAPABILITY 94

INSTRUCTIONS FOR THE PREPARATION OF THE COST PROPOSAL 94

SECTION M – EVALUATION FACTORS 99

GENERAL INFORMATION 99

TECHNICAL EVALUATION FACTORS 99

1) TECHNICAL APPROACH 100

2) KEY PERSONNEL, MANAGEMENT APPROACH AND STAFFING PLAN 100

3) ORGANIZATIONAL CAPABILITY 100

EVALUATION OF PAST PERFORMANCE 100

EVALUATION OF COST PROPOSALS 101

SOURCE SELECTION 101

PART I – SCHEDULE

SECTION B – SUPPLIES OR SERVICES AND PRICE/COSTS

B.1. PURPOSE

The overall goal of the Serbia Public Procurement activity is to strengthen the institutional capacities for the management and oversight of a fair, open, non-discriminatory, and transparent public procurement process.

B.2. CONTRACT TYPE

This is a Cost Plus Fixed Fee (CPFF) completion type Contract for an estimated period of five

(5) years. For the consideration set forth below, the Contractor shall provide the deliverables or outputs described in Sections C, F, and comply with all contract requirements.

B.3. ESTIMATED COST, FEE, AND OBLIGATED AMOUNT

a) Total Estimated Cost:

The estimated cost for the performance of the work required hereunder in section C and F exclusive of Fixed Fee, is $ TBD. The fixed fee, if any, is $TBD. The estimated cost-plus fixed fee is $TBD.

b) Obligated amount:

Within the estimated cost-plus fixed fee specified in paragraph a) above, the amount currently obligated and available for reimbursement of allowable costs incurred by the contractor ( and payment of fee), for performance hereunder is $ TBD. The Contractor must not exceed the aforesaid obligated amount.

c) Funds obligated hereunder are anticipated to be sufficient through TBD.

B.4. PRICE SCHEDULE

Budget Summary Cost Category Total Total Direct Costs TBD Grants under Contract $1,000,000 Special Activities $1,000,000 Total Indirect Costs TBD Fixed Fee TBD Total Estimated Cost Plus Base Fee TBD

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.

B.5. INDIRECT COST

Pending establishment of revised provisional or final indirect cost rates, allowable indirect costs shall be reimbursed based on the following negotiated provisional or predetermined rates and the appropriate bases:

Description Rate Base Type Period

% 1/ 1/ 1/

% 2/ 2/ 2/

% 3/ 3/ 3/

1/Base of Application:

Type of Rate:

Period:

2/Base of Application:

Type of Rate:

Period:

3/Base of Application:

Type of Rate:

Period:

B.6. ADVANCE UNDERSTANDINGS ON CEILING INDIRECT COST RATES AND

FINAL REIMBURSEMENT FOR INDIRECT COSTS

(a) Reimbursement for indirect costs shall be at the lower of the negotiated final (or predetermined) rates or the following ceiling rates:

Description Rate Base Period

% 1/ 1/

% 2/ 2/

% 3/ 3/

1/Base of Application:

Type of Rate:

Period:

2/Base of Application:

Type of Rate:

Period:

3/Base of Application:

Type of Rate:

Period:

(b) The Government will not be obligated to pay any additional amount should the final indirect cost rates exceed the negotiated ceiling rates. If the final indirect cost rates are less than the negotiated ceiling rates, the negotiated rates will be reduced to conform to the lower rates.

(c) This understanding shall not change any monetary ceiling, obligation, or specific cost allowance or disallowance. Any changes in classifying or allocating indirect costs require the prior written approval of the Contracting Officer.

B.7. COST REIMBURSABLE

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 § 52.216-8“Fixed Fee”; FAR § 52.232-22 “Limitation of Funds,” if applicable, and AIDAR 752.7003, “Documentation for Payment.”

B.8. PAYMENT OF FIXED FEE

1. Fixed fee

(a) USAID will pay the base fee pursuant to FAR § 52.216-7 and FAR § 52.216-8, upon the receipt of an invoice deemed proper by the USAID/Serbia Financial Management Office.

The total amount of fee payable upon completion of all contract requirements will be set at the time of award and does not vary with actual cost.

(b) Definite goals or targets must be achieved and end products 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.

(c) The contractor must propose the Fee Distribution Schedule as per the Illustrative fee payment and delivery schedule presented in the table below. The final Fee Distribution Schedule, and any subsequent changes, must be approved by the CO, and shall be incorporated in the contract upon award.

(d) Goals or targets and end products from the Fee Distribution Schedule that have a fee associated with their completion or delivery must be referred to as Fee Bearing Results or Deliverables.

(e) Fee Bearing Results or Deliverables proposed in the Fee Distribution Schedule must appear in the Work Plan (WP) and/or Monitoring, Evaluation, and Learning (MEL) Plan that has been prepared in compliance with the specifications and requirements of this Contract.

Appropriate Fee Bearing Results are completion of items that meet the USAID definition of a deliverable, an Output or Result. Performance Indicators are generally not an appropriate Fee Bearing Results. Deliverables such as reports may be Fee Bearing.

(f) The Fee Distribution Schedule must emphasize completion of goals, targets and/or deliverables that are the development results sought by USAID through this award but must also include selected implementation management and development results milestones as Fee Bearing Milestones.

(g) As a condition for the payment of the portion of the total fixed fee associated with a specific goal, target and/or deliverable, the Contractor must complete the goal, target and/or deliverable. When a Fee Bearing Milestones is not completed or achieved, the portion of the total fixed fee allocated to the Milestone in the Fee Distribution Plan will not be paid.

(h) When a Fee Bearing Milestones is not completed on time or requires more cost/effort to complete than projected in the WP and/or MEL Plan, the portion of the total fixed fee allocated to the Milestone in the Fee Distribution Plan may be subject to adjustment of the fee by the Contracting Officer.

2. Illustrative fee distribution schedule

Deliverables Delivery schedule Percentage of Fixed Fee

Fixed Fee Amount for payment

Deliverables for Year 1 TBD by the contractor Deliverables for Year 2 TBD by the contractor Deliverables for Year 5 TBD by the contractor

B.9. MULTI-YEAR CONTRACT AND CANCELLATION CEILING

USAID/Serbia considers this contract non-severable and is therefore a multi-year contract as defined in FAR 17.103. Therefore, this contract is subject to the requirements of FAR 17.106.

However, as a cost-reimbursement contract, USAID/Serbia will authorize the reimbursement for all allowable costs incurred by the Contractor pursuant to FAR 52.216-7, “Allowable Costs and Payment.” The Contractor will not incur any costs that require amortization or substantial upfront investment over the contract’s period of performance if the Contracting Officer cancels the contract pursuant to FAR 52.217-2. Thus, $0 will serve as the cancellation ceiling for each cancellation date. There is no requirement to include cancellation dates in the contract.

[END OF SECTION B]

SECTION C – SCOPE OF WORK

C.1. TITLE OF ACTIVITY

USAID Serbia Public Procurement activity (the “Activity”).

C.2. PURPOSE

The overall goal of the Serbia Public Procurement activity is to strengthen the institutional capacities for the management and oversight of a fair, open, non-discriminatory, and transparent public procurement process.

C.3. BACKGROUND

The high and growing proportion of public spending involved in public procurement reinforces the importance of strengthening the effectiveness, transparency, and accountability of Serbia’s public procurement system to ensure good value for money and quality service delivery to the public. According to the 2020 Public Procurement Office annual report public procurement in1

Serbia represented about 6.88% of GDP in 2020. While this is low compared to some EU countries such as the Netherlands (20%), Finland (19%), and Sweden (16.5%), procurement has been steadily rising over the past five years in both absolute and relative terms (see table below) and is likely to continue to grow.

Procurement in million dinars GDP in million dinars Share (%)

2015 354,983 4,043,467.8 8.77

2016 335,268 4,261,927.4 7.86

2017 342,911 4,464,629.0 7.68

2018 403,963 5,059,480.9 7.98

2019 440,522 5,410,794.3 8.14

2020 376,124 5,463,542.3 6.88

However, the performance of public procurement remains weak and is weakening. Serbia’s public procurement system is seen as non-transparent and non-competitive, contributing to perceptions of corruption. In 2020 there were only 2.6 bidders per tender, while 94% of procedures use price criteria over quality/price ratio. Transparency International also marks a negative trend in the Corruption Perception Index for Serbia . In 2020, Serbia earned the lowest2 score (38) since 2012 and ranked 94 out of 180 countries. Concerns over transparency in public procurement were exacerbated by the government’s decision in 2020 to make all procurement

2 https://images.transparencycdn.org/images/CPI2020_Report_EN_0802-WEB-1_2021-02-08-103053.pdf 1 https://jnportal.ujn.gov.rs/annual-reports-ppo-public information related to the COVID-19 crisis secret.

Moreover, as Serbia advances on its path towards the EU, the country will need to comply with EU directives and requirements related to public procurement. EU rules ensure that public procurement of goods, services and works in any Member State is transparent and open to all EU companies based on non-discrimination and equal treatment. The EU is closely monitoring performance of the public procurement system (particularly through chapter 5 - public procurement; and chapter 23 - rule of law).

To that end, Serbia has put in place the legal and policy framework broadly aligned with the acquis, developed a software for electronic planning and implementation of public procurement procedures (e-Portal), and set up the institutional framework.

Significant efforts are still needed to further improve competition, efficiency, and transparency in public procurement and fully comply with EU requirements and other international standards. According to the latest EU progress report, Serbia remains moderately prepared on public procurement, and no progress was made in 2019. The report also highlights that through allowing for the circumvention of national legislation as well as EU rules and standards, Serbia maintains serious discriminatory rules in the field of public procurement. Serbia is required to accomplish the following benchmarks:

● complete harmonization with EU legislation and policies, including international agreement with third countries and concessions;

● establish strong administrative and institutional capacities for implementation of the law, including: building capacities; tools for monitoring the implementation; stronger oversight mechanisms; increased transparency of contract implementation; efficient legal remedies; anti-corruption preventive measures, such as conflict of interest;

● establish a fair and transparent system of public procurement.

While there is significant international support to the government’s anti-corruption efforts, USAID Serbia identified numerous areas that could benefit from additional assistance, and intends to work with a variety of Serbian actors and other donors to ensure improved public procurement planning processes, compliance with international good practices, and more effective legal remedies and oversight. The legislative framework is largely in place;

however, there is room for improvement in implementation. Due to the complexity of the topic, the competent authorities and institutions require support and more intensive capacity building to fulfill their mandate prescribed by the Law on Public Procurement (the Law) ;3 and there is a need for stronger inter-institutional cooperation.

Local government and transparency - despite the weaknesses noted in public procurement and its effect on corruption, Serbian local governments have made improvements in

3 On December 24, 2019, Serbian Parliament enacted Law on Public Procurements (“Official Gazette RS” No. 91/2019) – “the Law”. The Law entered into force on January 1, 2020 and started to be applied as of July 1, 2020. https://www.paragraf.rs/propisi/zakon-o-javnim-nabavkama.html http://eupodrska.ujn.gov.rs/wp-content/uploads/2019/12/PPL-OJ-91_2019.pdf transparency over the past years. Through the Local Transparency Index, undertaken the past three years by Transparency International Serbia, there were noted improvements in a number of local governments’ scores. While the overall average score for municipalities is relatively low, more than two-thirds of all 145 municipalities improved their scores. While much work on transparency is still to be done, this promising trend highlights the importance of working at the local level. Given that public procurement is a fundamental part of both national and local governments, including municipalities, the work to improve transparency of public procurement is essential.

Public procurement planning and execution - Per Article 5 of the Law, the contracting entity is obliged to act in an economical and efficient manner, to secure the competition and equal treatment of all parties without discrimination, as well as to ensure transparency of the process. Further, public procurements should be planned without an intention to circumvent the law or certain procedures or any type of discrimination. However, according to the 2020 State Audit Institution (SAI) Report, nearly half of public procurement was unjustifiably exempt from the law, and nearly 10% of public procurements were performed outside of the annual public procurement plans. Furthermore, SAI found irregularities in nearly 50% of all public procurement procedures.

Public procurement monitoring - The Public Procurement Office (PPO) has a central role4 in the public procurement system. Its roles and responsibilities are clearly defined by Section XIV of the law and entail: ensuring by-laws, guidelines and other support documentation is in place, ensuring certification of the public procurement officers and professional development, monitoring the implementation of the legislation, and maintaining the newly introduced mandatory e-Portal .5

Legal remedies in public procurement - The Republic Commission for Protection of Rights 6 is an independent body that ensures the protection of rights in public procurement procedures.

The roles and responsibilities of the Commission are clearly defined by the law (section XVII).

An administrative dispute may be initiated against the decision of the Republic Commission before the Administrative Court, which assesses the legality of the decision made. Due to limited specialization and training, the Administrative Court’s capacity to deal with complexity, diversity, and overall quantity of cases and lengthy legal proceedings remains weak. Limited collaboration between the Republic Commission and Administrative Court is hampering better enforcement of rights in the public procurement procedures. The criminal offense of misfeasance in public procurement is defined by the Criminal Code. Furthermore, per the Law on Organization and Jurisdiction of Government Authorities in the Suppression of Organized Crime, Terrorism and Corruption, which took effect on March 1, 2018, corruption criminal offenses, including misfeasance in public procurement, are to be prosecuted by the Prosecutor’s Office for Organized Crime (if there are elements of organized crime) or by special anti-corruption departments established within Higher Public Prosecutors’ Officers and Higher Courts in Belgrade, Novi Sad, Kraljevo and Nis.

6 http://kjn.rs/ 5 https://jnportal.ujn.gov.rs/konzola 4 http://www.ujn.gov.rs/

The Law on public procurement also introduced a new authority for misdemeanor courts to conduct misdemeanor proceedings for the misdemeanors defined in the law. Furthermore, there is a need to attract and build the capacities of future generations of judges and prosecutors through enhancing links with law schools and the Judicial Academy.

Oversight of the public procurement - The State Audit Institution (SAI) is an independent7 institution and the highest authority in charge of auditing the use of public funds. If any potential features of a misdemeanor or criminal offenses are identified, SAI must file a request for misdemeanor proceedings and/or criminal charges to the competent authority. According to the 2020 annual report , “compliance audits in the part related to the implementation of the8

Public Procurement Law in 60 auditees have identified that procurements have been conducted for the procurement of goods, services and works not in compliance with the said law in 860 cases and amounting to RSD 128.96 billion.” Civil society continues to play an important role in monitoring government operations, including the use of public funds. However, civil society efforts in many cases remain without impact on holding the government accountable to its citizens.

Alignment with USAID’s Country Development Cooperation Strategy9

This activity is a part of the latest USAID Serbia 2020-2025 Country Development Cooperation Strategy, which has the overall goal of helping Serbia to become a more prosperous and democratic country committed to Euro-Atlantic Integration. The Serbia Public Procurement activity is a key component that is contributing to the first Development Objective that is focusing on building the resiliency of democratic actors and will use an adaptive approach to engage a broader spectrum of democratic actors in efforts to improve the commitment of Serbia’s governmental institutions to liberal democracy. Specifically, the activity will contribute to Intermediate Result 1.1, “Select Government Institutions Increasingly Acting in the Public Interest” by supporting select government institutions to implement reforms that strengthen their integrity and responsiveness.

C.4. ACTIVITY IMPLEMENTATION

USAID assistance will: strengthen public oversight of government institutions, promote transparency in the judicial sector, and support checks and balances through the rule of law.

Our development hypothesis is: If management and oversight of public procurements are strengthened, then one of the major challenges in achieving effectiveness, transparency and accountability of government institutions will be decreased.

The activity purpose will be achieved through the following objectives:

● Objective 1: Public procurement planning improved

● Objective 2: Public procurement tendering and implementation increasingly

9 https://www.usaid.gov/sites/default/files/documents/External_Serbia_CDCS_2020.pdf 8 http://www.dri.rs/dokumenti/godisnji-izvestaji-o-radu.93.html 7 http://www.dri.rs/%D0%BD%D0%B0%D1%81%D0%BB%D0%BE%D0%B2%D0%BD%D0%B0.1.html meets international standards

● Objective 3: Legal enforcement more effective

● Objective 4: Oversight more effective

The Contractor must utilize the grants under contract (GUC) mechanism to support local organizations to advance the contract’s objectives. The total contract life amount of the GUCs is up to $1,000,000.

The Contractor will propose priority issues and interventions in the following areas:

Public procurement planning: The Contractor must provide assistance to public procurement entities within local governments in applying the Law on public procurement and improve planning processes.

The implementing partner must:

1. Identify municipalities where there are opportunities to improve public procurement practices

2. Support local governments in preparing better informed annual procurement plans that are prepared on a timely basis, aligned with budgets and costs appropriately estimated.

3. Support the dialogue between the local governments and the Public Procurement Office for better quality procurement plans.

4. Support local governments in increasing the number of joint procurement actions for greater cost-effectiveness

Final municipality selection and interventions must be included in the Activity work plan, approved by USAID. While policy reform is not the primary focus of this activity, the implementing partner may work with local governments to identify areas where policy changes would be beneficial. In doing so, the contractor must work with relevant ministries and stakeholders to identify and support these changes.

Public procurement tendering and implementation in line with international standards (including but not limited to OECD, UNCAC, OGP): The Contractor must provide assistance to the Public Procurement Office in performing its mandate: ensuring by-laws, guidelines, and other support documentation are in place, ensuring certification of the public procurement officers and professional development, and monitoring the implementation of legislation. The Contractor must provide assistance to the public procurement entities within local governments to standardize public procurement processes.

The Contractor must:

1. Work with local government procurement offices to introduce clear procurement procedures spanning all phases of the procurement processes from need identification, pre-tendering, and tendering through evaluation, award, and contract management to reduce opportunities for corruption, discrimination, and mismanagement.

2. Support the Public Procurement Office in monitoring the implementation of the legislation, maintaining the e-Portal, and developing guidance and tools to support improved procurement practices.

3. Support for greater transparency and accountability throughout the process; this could entail supporting the use of e-portal/adding features to the e-portal to include more information on contract performance and (where established) supporting local government internal audit units to identify and help address weaknesses in procurement practices.

Legal enforcement: The Contractor must provide assistance to the Commission for Protection of Bidders’ Rights; judiciary and prosecution in implementing and enforcing relevant legislation for fair, open, non-discriminatory, and transparent public procurement processes.

Assistance must include working with the judiciary, including the Administrative Court, Misdemeanor courts, Supreme Court, and Anti-Corruption Units, as well as the prosecutor office to improve capacities as well as communication and coordination necessary for effective detection, investigation, and adjudication of violations of the Law. The Contractor must also support the Judicial Academy and law schools to develop the expertise and raise the professional qualifications of judges, prosecutors, and judicial assistants.

The Contractor must:

1. Support strengthening of detection and investigation of public procurement violations.

2. Support improvement of adjudication of breaches to the public procurement law.

3. Support inter-institutional dialogue and cooperation.

Oversight Institutions: The Contractor must provide assistance to the State Audit Institution (SAI) to strengthen monitoring of public spending, and exercise mandates as defined per relevant legislation. The Contractor must also support the civil society organizations for a more effective oversight of government operations. A special emphasis on finding creative civil society approaches should be utilized in work under this element.

The Contractor must:

1. Increase coordination between the independent institutions and other relevant institutions, such as the parliament, courts, prosecutor’s offices, and tax authorities.

2. Bolster existing strong cooperation with the State Audit for continued increase of performance audits

3. Improve civil society’s oversight of public spending and find creative ways to make findings more interesting and accessible to the public.

Expected results:

At a minimum, the Contractor must contribute to the achievement of the following results:

1. Public procurement planning is well informed, aligned with budget, and appropriately cost.

2. Reduced opportunities for corruption and mismanagement by implementing clear procurement procedures spanning all phases of the procurement processes

3. Improved capacities for more effective legal enforcement.

4. Improved capacities of government and non-government organizations for a more effective oversight.

All of the Contractor’s interventions in performance of this SOW must be approved by the Contracting Officer’s Representative (COR) via the annual work plan (AWP). The AWP is a living document and can be amended on an as needed basis with the approval of the COR.

In proposing the interventions above, the Contractor must take into account the following implementation principles:

a. Local context: how the Contractor will align all of its programming with the needs and priorities of its Serbian partners, including municipalities and government and non-governmental counterparts. This must include a clear understanding of relevant Serbian laws and policies and EU accession strategies and action plans, as well as the stakeholders and groups with interests for and against reform in the areas of intervention selected and the current opportunities for positive change.

b. Existing policies and institutions: how the Contractor will leverage existing institutions, organizations, policies, regulations and authorities to implement activities, prior to proposing any new ones. Any policy changes identified as areas for intervention must take into account the relevant authorities of local and Republic-level government, and work with appropriate stakeholders, including ministries as necessary, to advocate for policy changes.

c. Broad outreach: how the Contractor will seek out local stakeholders with interests in the areas of intervention selected and engage them in activity implementation.

d. Facilitating consensus: how the Contractor will convene key Serbian government and non-government stakeholders and how the Contractor will facilitate the development of solutions to the identified issues, drawing on local expertise wherever possible and engaging regional and international expertise as appropriate;

e. Adaptive Management: how the Contractor will integrate regular assessment of the effectiveness of interventions and adapt approaches to take account of changes in context and stakeholder interest during Activity implementation;

f. Incentivizing change: how the Contractor will leverage and contribute to strengthening incentives for reforms.

g. Demonstrated impact: the degree to which the Contractor’s approach will focus interventions on those areas/ institutions/processes that will yield the greatest impact on preventing corruption. The Contractor must propose metrics that will demonstrate meeting the targets.

h. Other Donor Coordination: The Contractor must explain in detail how interventions for each objective will complement, rather than duplicate, other efforts by the Government of Serbia and other donor projects. Noting that the implementer will coordinate efforts is not sufficient to address this principle.

i. Private Sector Engagement: how the Contractor collaborates with the private sector, engaging private sector actors wherever possible to develop or implement solutions to identified issues.

The Contractor is expected to maximize its flexibility to respond to the changing local environment. The Contractor is encouraged to suggest innovative ideas and propose additional and/or alternative tasks under each component if the Contractor believes these will better serve to meet USAID’s objectives and expected results.

C.5. SPECIAL ACTIVITIES FOR RAPID RESPONSE

A total funding of $1 (one) million is anticipated over the life of the project to be used for special activities required by unanticipated events in the areas of rule of law and good governance. The Contractor is expected to provide technical assistance on short notice (within 15 days) in response to these unanticipated events and urgent requests. The capacity may be required in any of the subject areas covered by the contract. Technical assistance may include, but is not limited to, assistance in the implementation of important benchmarks under Chapter 5 and Chapter 23 of the acquis , as well as other relevant national strategic documents .10 11 12

C.6. COLLABORATION, LEARNING AND ADAPTATION

The Contractor must continually assess the effectiveness of its interventions, evaluate whether those interventions are succeeding, apply lessons learnt and adapt work appropriately. In addition to presenting a Monitoring, Evaluation and Learning (MEL) plan, the Contractor must implement a methodology, approved by USAID, that identifies the Contractor’s approach to integrating monitoring, evaluation, and learning throughout contract implementation, how they will capture how results are being achieved and how they will integrate the results of ongoing analysis as well as feedback from partners, stakeholders and beneficiaries into Activity implementation.

https://www.mpravde.gov.rs/tekst/30402/revidirani-akcioni-plan-za-poglavlje-23-i-strategija-razvoja-pravosudja-za-period-2020-2025-22072020.php

11http://www.ujn.gov.rs/strategija/ 10 https://ec.europa.eu/neighbourhood-enlargement/enlargement-policy/conditions-membership/chapters-acquis_en https://www.mpravde.gov.rs/tekst/30402/revidirani-akcioni-plan-za-poglavlje-23-i-strategija-razvoja-pravosudja-za-period-2020-2025-22072020.php https://www.mpravde.gov.rs/tekst/30402/revidirani-akcioni-plan-za-poglavlje-23-i-strategija-razvoja-pravosudja-za-period-2020-2025-22072020.php https://ec.europa.eu/neighbourhood-enlargement/enlargement-policy/conditions-membership/chapters-acquis_en

USAID/Serbia recognizes that the success of the Activity will depend on the contributions of actors directly and indirectly engaged with the Activity, as well as institutions and processes beyond the manageable interests of the Contractor, and those changes in the local context may have implications for the achievement of results. Significant shifts within the broader country context may require the adaptive management changing the path being used to achieve the goals in response to changes and the revisiting of indicators to address these changes.

C.7. COORDINATION WITH OTHER USAID ACTIVITIES AND

STAKEHOLDERS

The Contractor must implement the contract in close coordination with USAID and other donor-supported activities in Serbia to the extent there is alignment with the contract’s objectives.

Furthermore, the Contractor must closely coordinate with the U.S. DOJ/OPDAT all of its activities related to prosecutors and specialized anti-corruption court units.

Technical assistance and training activities will be defined and developed in close consultation with Serbian government counterparts, including the local governments, the Public Procurement Office, the Commission for Protection of Bidders’s Rights, judiciary and prosecution, State Audit Institution, and others.

The Contractor must coordinate closely with the EU and its Contractors to ensure complementarity of approaches and partnerships. Similarly, the Contractor must establish and maintain collaboration with the GIZ, the Swedish International Development Agency (SIDA), the UNDP, and other international organizations that are currently involved in good governance programming. The Contractor must ensure that the Activity takes into consideration these initiatives and maintains complementarity with these donors’ approaches.

[END OF SECTION C]

SECTION D – PACKAGING AND MARKING

D.1. AIDAR 752.7009 MARKING (JAN 1993)

(a) It is USAID policy that USAID-financed commodities and shipping containers, and project construction sites and other project locations be suitably marked with the USAID emblem.

Shipping containers are also to be marked with the last five digits of the USAID financing document number. As a general rule, marking is not required for raw materials shipped in bulk (such as coal, grain, etc.), or for semi-finished products which are not packaged.

(b) Specific guidance on marking requirements should be obtained prior to procurement of commodities to be shipped, and as early as possible for project construction sites and other project locations. This guidance will be provided through the cognizant technical office indicated on the cover page of this contract, or by the Mission Director in the Cooperating Country to which commodities are being shipped, or in which the project site is located.

(c) Authority to waive marking requirements is vested with the Regional Assistant Administrators, and with Mission Directors.

(d) A copy of any specific marking instructions or waivers from marking requirements is to be sent to the Contracting Officer; the original should be retained by the Contractor.

D.2. BRANDING

When applicable, the Contractor must comply with the requirements of the policy directives and required procedures outlined in USAID Automated Directive System (ADS) 320.3.2 “Branding and Marking in USAID Direct Contracting” at http://www.usaid.gov/policy/ads/300/320.pdf; and USAID “Graphic Standards Manual” available at http://www.usaid.gov/branding/, or any successor branding policy.

Note: USAID receives “exclusive branding and marking” for the work conducted under all acquisition awards. This means that the foreign assistance delivered is clearly credited to the American people. It also means that competing logos or identities are excluded unless otherwise indicated in the award (Contract).

[USAID will insert the contractors Branding Strategy and Marking Plan for Public Procurement Activity as an attachment in Section J of the contract at award.]

[END OF SECTION D]

http://www.usaid.gov/policy/ads/300/320.pdf http://www.usaid.gov/branding/

SECTION E – INSPECTION AND ACCEPTANCE

E.1. NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE

The following contract clauses pertinent to this section are hereby incorporated by reference (by Citation Number, Title, and Date) in accordance with the clause at FAR “52.232-2 CLAUSES INCORPORATED BY REFERENCE” in Section I of this contract. See the following address (https://www.acquisition.gov/far/) for electronic access to the full text of a FAR clause.

FEDERAL ACQUISITION REGULATION (48 CFR Chapter 1)

NUMBER TITLE DATE

52.246-5 INSPECTION OF SERVICES COST-REIMBURSEMENT APR 1984

E.2. INSPECTION AND ACCEPTANCE

USAID inspection and acceptance of services, reports and other required deliverables or outputs shall take place at the principal place of performance or at any other location where the services are performed and reports and deliverables or outputs are produced or submitted. The Contracting Officer’s Representative (COR) listed in Section G has been delegated authority to inspect and accept all services, reports and required deliverables or outputs.

[END OF SECTION E]

https://www.acquisition.gov/far/

SECTION F – DELIVERIES AND PERFORMANCE

F.1. NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE

The following contract clauses pertinent to this section are hereby incorporated by reference (by Citation Number, Title, and Date) in accordance with the clause at FAR “52.252-2 CLAUSES INCORPORATED BY REFERENCE” in Section I of this contract. See http://www.acquisition.gov/far/ for electronic access to the full text of FAR clauses and https://www.usaid.gov/ads/policy/300/aidar for the full text of AIDAR clauses.

FEDERAL ACQUISITION REGULATION (FAR) (48 CFR CHAPTER 1)

NUMBER TITLE DATE

52.242-15 STOP-WORK ORDER (AUG 1989)

52.242-15 STOP-WORK ORDER (AUG 1989) - ALTERNATE I (APR 1984)

F.2. PLACE OF PERFORMANCE

The place of performance under this contract is Serbia.

F.3. PERIOD OF PERFORMANCE

The period of performance for this contract is five (5) years, from TBD to TBD.

F.4. PERFORMANCE STANDARDS

Evaluation of the contractor's performance must be conducted in accordance with the performance standards set forth in the contract, the Contractor's overall performance toward achievement of the objectives in Section C and provision of deliverables in Section F, and the Contractor's compliance with all other terms and conditions of the contract. Each evaluation will be conducted jointly by the COR and the CO and must form the basis of the Contractor's permanent performance record with regard to this contract as required in FAR Part 42.15 and

AIDAR 742.15.

The Contractor’s performance will be evaluated annually and at contract completion, utilizing at minimum, the following factors:

1) Technical (quality of product or service).

2) Cost control (not applicable for firm-fixed-price or fixed-price with economic price adjustment arrangements).

3) Schedule/timeliness.

4) Management or business relations.

5) Small business subcontracting (as applicable).

6) Other (as applicable) (e.g., adaptive management of problems encountered, late…