RFP No. 72049721R00007 USAID PADU.pdf

Issuance Date: December 16, 2021 Questions Due Date: January 3, 2022, 08:00 AM, Jakarta Time Closing Date for Proposals: January 24, 2022, 08:00 AM, Jakarta Time E-mail Submission to: proposals-indonesia@usaid.gov

NAICS Code: 541611-Administrative Management and

General Management Consulting Services

Authorized Geographic Code: 937

SUBJECT: Request for Proposal (RFP) No.72049721R00007 USAID/Indonesia – PADU (Partnerships for Productivity)

Dear Prospective Offerors:

The United States Agency for International Development (USAID) is seeking proposals from qualified organizations interested in providing the services described in Section C of this Solicitation. USAID anticipates awarding a cost-plus fixed fee (CPFF) completion type contract for a total estimated cost not to exceed $7 million, covering a period of performance of (5) five years.

In accordance with FAR Part 19.5, this acquisition is being set aside for U.S. Small Businesses only. Teaming arrangements that include local partners are encouraged in order to adequately provide the expertise required for the implementation of an integrated program.

Offerors should read the entire solicitation, which includes all pertinent technical sections and the terms, conditions and instructions required for submitting a proposal. Special attention should be paid on Section L – Instructions, and Section M – Evaluation Factors. Sections B through I of the solicitation and Attachment J will become a substantive part of the anticipated contract with blanks to be completed by the Contracting Officer upon award. Section K - Representations, Certifications, and Acknowledgements must be filled out in full.

USAID also encourages offerors to become aware of the prohibitions associated with Section 889(a)(1)(B) of the John S. McCain National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2019, effective August 13, 2020, prohibits executive agencies from entering into, or extending or renewing, a contract with an entity that uses any equipment, system, or service that uses covered telecommunications equipment or services as a substantial or essential component of any system, or as critical technology as part of any system. Section H.12 of this solicitation regarding the prohibition on contracting for certain covered telecommunications and video surveillance services or equipment will be removed if the apparently successful offeror does not use the Foreign Assistance Waiver (see the USAID Section 889 Partner website for more information).

Prior to the submission of proposals, any amendments to this solicitation will be made available through the Government port of entry at http://beta.sam.gov. It is the offeror’s responsibility to check this site periodically for official updates and amendments to the solicitation. If the proposal is received after the closing date and time, or if it is incomplete, it will not be accepted nor considered unless authorized by mailto:proposals-indonesia@usaid.gov https://www.usaid.gov/work-usaid/resources-for-partners/section-889-partner-information https://www.usaid.gov/work-usaid/resources-for-partners/section-889-partner-information https://www.usaid.gov/work-usaid/resources-for-partners/section-889-partner-information http://beta.sam.gov/

Page - 2 the Contracting Officer pursuant to FAR 15.208.

This RFP in no way obligates USAID to award a contract nor does it commit USAID to pay any costs incurred in the preparation and submission of a proposal. Award of a contract under this RFP is subject to availability of funds and other internal USAID approvals. Furthermore, USAID reserves the right to reject any and/or all offers if such action is considered to be in the best interest of the Government.

All questions, comments, and/or requests for clarifications must be sent in writing to proposals-indonesia@usaid.gov no later than the date and time indicated above.

Thank you for your interest and we look forward to your participation.

Sincerely, Brian Chang Contracting Officer USAID/Indonesia

72049721R00007

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

1 136

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

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G

F

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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-497-21-00000512/16/2021

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720497

USAID/Indonesia American Embassy JI. Medan Merdeka Selatan 3-5 Jakarta 10110 10110

0800 G 01/24/2022 proposals-indonesia@usaid.gov

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PAGE(S)

Brian Chang

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 _____180_________ calendar days (180 calendar days unless a different period is inserted

RFP No.72049721R00007

USAID PADU

Page - 4

Table of Contents

SECTION B – SUPPLIES OR SERVICES AND COST/PRICES 9

B.1 PURPOSE

B.2 CONTRACT TYPE AND CONTRACT SERVICES

B.3 ESTIMATED COST, FIXED FEE AND OBLIGATED AMOUNT

B.4 PRICE SCHEDULE

B.5 INDIRECT COST

B.6 COST REIMBURSABLE

B.7 PAYMENT OF FIXED FEE

SECTION C – PERFORMANCE BASED WORK STATEMENT 12

SECTION D - BRANDING AND MARKING 23

SECTION E – INSPECTION AND ACCEPTANCE 25

E.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE

E.2 INSPECTION AND ACCEPTANCE

SECTION F – DELIVERIES OR PERFORMANCE 27

F.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE

F.2 PERIOD OF PERFORMANCE

F.3 PLACE OF PERFORMANCE

F.4 REPORTS AND DELIVERABLES OR OUTPUTS

F.5 AIDAR 752.7005 SUBMISSION REQUIREMENTS FOR DEVELOPMENT EXPERIENCE

DOCUMENTS (September 2013)

F.6 KEY PERSONNEL

SECTION G – CONTRACT ADMINISTRATION DATA 42

G.1 ADMINISTRATIVE CONTRACTING OFFICE

G.2 CONTRACTING OFFICER’S AUTHORITY

G.3 CONTRACTING OFFICER’S REPRESENTATIVE (COR)

G.4 CONTRACTOR’S PRIMARY POINT OF CONTACT

G.5 TECHNICAL DIRECTIONS/RELATIONSHIP WITH USAID

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

G.7 PAYING OFFICE

G.8 ACCOUNTING AND APPROPRIATION DATA

SECTION H – SPECIAL CONTRACT REQUIREMENTS 47

H.1 NOTICE LISTING CONTRACT CLAUSE INCORPORATED BY REFERENCE

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H.2. AUTHORIZED GEOGRAPHIC CODE

H.3 LOGISTIC SUPPORT

H.4 AIDAR 752.7007 PERSONNEL COMPENSATION (JULY 2007)

H.5 WORK WEEK

H.6 AIDAR 752.228-3 WORKER’S COMPENSATION INSURANCE (DEFENSE BASE ACT)

(DEC 1991)

H.7 DEFENSE BASE ACT (DBA) INSURANCE FOR 2015 – 2020

H.8 COMPLIANCE WITH THE TRAFFICKING VICTIMS PROTECTION

REAUTHORIZATION ACT

H.9 AIDAR 752.7032 INTERNATIONAL TRAVEL APPROVAL AND NOTIFICATION

REQUIREMENTS (APR 2014)

H.10 BUSINESS CLASS TRAVEL

H.11 FOREIGN GOVERNMENT DELEGATION TO INTERNATIONAL CONFERENCES

(JAN 2002)

H.12 NONEXPENDABLE PROPERTY PURCHASES AND INFORMATION TECHNOLOGY

RESOURCES

H.13 FAR PART 4.21 PROHIBITION ON CONTRACTING FOR CERTAIN COVERED

TELECOMMUNICATIONS AND VIDEO SURVEILLANCE SERVICES OR EQUIPMENT

(SECTION 889) (JANUARY 2021)

H.14 AIDAR 752.245-71 TITLE TO AND CARE OF PROPERTY (APR 1984)

H.15 APPROVALS – NONEXPENDABLE PROPERTY PURCHASES

H.16 GOVERNMENT FURNISHED FACILITIES OR PROPERTY

H.17 ELECTRONIC PAYMENTS SYSTEM

H.18 VALUE ADDED TAX AND CUSTOMS DUTIES

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

H.20 ORGANIZATIONAL CONFLICT OF INTEREST

H.21 CONFLICT OF INTEREST

H.22 SEXUAL MISCONDUCT (DECEMBER 2020)

H.23 DISCLOSURE OF INFORMATION

H.24 RESTRICTIONS AGAINST DISCLOSURE (MAY 2016)

H.25 ENVIRONMENTAL COMPLIANCE

H.26 LIMITING PLASTIC POLLUTION AND MISMANAGED WASTE (MAR 2020)

H.27 COMMUNICATIONS AND OUTREACH APPROVAL REQUIREMENTS (FEB 2020)

H.28 PUBLICATIONS, VIDEOS, OR OTHER INFORMATION MEDIA PRODUCTS (FEB

2020)

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H.29 USAID-FINANCED THIRD-PARTY WEB SITES (NOV 2017)

H.30 SUBMISSION TO THE DEVELOPMENT DATA LIBRARY (DDL)

H.31 SOFTWARE LICENSE ADDENDUM (MAY 2016)

H.32 ELECTRONIC AND INFORMATION TECHNOLOGY ACCESSIBILITY (APRIL 2018) 63

H.33 INFORMATION TECHNOLOGY APPROVAL (APRIL 2018) – (DEVIATION NO.M/OAA-

DEV-FAR-18-2c)

H.34 MEDIA AND INFORMATION HANDLING AND PROTECTION (APRIL 2018)

H.35 PRIVACY AND SECURITY INFORMATION TECHNOLOGY SYSTEM INCIDENT

REPORTING (APRIL 2018)

H.36 SKILLS AND CERTIFICATION REQUIREMENTS FOR PRIVACY AND SECURITY

STAFF (APRIL 2018)

H.37 SECURITY REQUIREMENTS FOR UNCLASSIFIED INFORMATION TECHNOLOGY

RESOURCES (APRIL 2018)

H.38 CLOUD COMPUTING (APRIL 2018)

H.39 SUBCONTRACTOR CONSENT

SECTION I – CONTRACT CLAUSES 82

I.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE

I.2 FAR 52.204-25 PROHIBITION ON CONTRACTING FOR CERTAIN

TELECOMMUNICATIONS AND VIDEO SURVEILLANCE SERVICES OR EQUIPMENT

(AUG 2020)

I.3 FAR 52.217-8 OPTION TO EXTEND SERVICES (NOV 1999)

I.4 FAR 52.219-14 LIMITATION ON SUBCONTRACTING

I.5 FAR 52.222-35 EQUAL OPPORTUNITY FOR VETERANS (JUN 2020)

I.6 FAR 52.222-36 EQUAL OPPORTUNITY FOR WORKERS WITH DISABILITIES (JUN 2020)

I.7 FAR 52.247-67 SUBMISSION OF TRANSPORTATION DOCUMENTS FOR AUDIT (FEB

2006)

I.8 AIDAR 752.229-71 REPORTING OF FOREIGN TAXES (JUL 2007)

I.9 AIDAR 752.231-72 CONFERENCE PLANNING AND REQUIRED APPROVALS (AUG 2013)

(M/OAA-DEV-AIDAR-20-01c) [DEVIATION (APR 2020)]

I.10 AIDAR 752.7013 - CONTRACTOR-MISSION RELATIONSHIPS (M/OAA-DEV-AIDAR-20-

03c) (JUN 2020)

I.11 AIDAR 752.7034 ACKNOWLEDGEMENT AND DISCLAIMER (DEC 1991)

SECTION J – ATTACHMENTS 98

SECTION K – REPRESENTATIONS, CERTIFICATIONS, AND OTHER STATEMENTS OF

BIDDERS 99

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K.1 NOTICE LISTING SOLICITATION PROVISIONS INCORPORATED BY REFERENCE . 99

K.2 FAR 52.203-18 PROHIBITION ON CONTRACTING WITH ENTITIES THAT REQUIRE

CERTAIN INTERNAL CONFIDENTIALITY AGREEMENTS-REPRESENTATION (JAN 2017)

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

K.4 FAR 52.204-8 ANNUAL REPRESENTATIONS AND CERTIFICATIONS (MAR 2020)

K.5 FAR 52.204-24 REPRESENTATION REGARDING CERTAIN TELECOMMUNICATIONS

AND VIDEO SURVEILLANCE SERVICES OR EQUIPMENT (OCT 2020)

K.6 FAR 52.204-26 COVERED TELECOMMUNICATIONS EQUIPMENT OR SERVICES-

REPRESENTATION (OCT 2020)

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

K.8 FAR 52.222-56 CERTIFICATION REGARDING TRAFFICKING IN PERSONS

COMPLIANCE PLAN (OCT 2020)

K.9 FAR 52.230-1 COST ACCOUNTING STANDARDS NOTICES AND CERTIFICATION (JUN

2020)

K.10 COMPLIANCE WITH VETERANS EMPLOYMENT REPORTING REQUIREMENTS . 114

K.11 FAR 52.230-7 PROPOSAL DISCLOSURE – COST ACCOUNTING PRACTICE CHANGES

(APR 2005)

K.12 INSURANCE - IMMUNITY FROM TORT LIABILITY

K.13 AUTHORIZED NEGOTIATORS

K.14 AGREEMENT ON, OR EXCEPTIONS TO, TERMS AND CONDITIONS

K.15 CONTRACTOR PURCHASING SYSTEM REVIEW

K.16 SIGNATURE

SECTION L – INSTRUCTIONS, CONDITIONS, AND NOTICES TO OFFEROR 116

L.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE

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

L.3 AIDAR 752.252-1 AIDAR SOLICITATION PROVISIONS INCORPORATED BY

REFERENCE (MAR 2015)

L.4 QUESTIONS AND CLARIFICATIONS

L.5 PROPOSAL PREPARATION AND DELIVERY INSTRUCTIONS

L.6 INSTRUCTIONS FOR PREPARATION OF TECHNICAL PROPOSAL

L.7 INSTRUCTIONS FOR PREPARATION OF PAST PERFORMANCE INFORMATION ... 121

L.8 INSTRUCTIONS FOR THE PREPARATION OF THE COST/BUSINESS PROPOSAL

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L.9 INSTRUCTIONS FOR THE PREPARATION OF THE BRANDING IMPLEMENTATION

AND MARKING PLAN

L.10 WAIVERS UNDER FAR PART 4.2101 PROHIBITION ON COVERED

TELECOMMUNICATIONS AND VIDEO SURVEILLANCE SERVICES AND EQUIPMENT

DEC 2021)

SECTION M – EVALUATION FACTORS FOR AWARD 133

M.1 GENERAL INFORMATION

M.2 TECHNICAL EVALUATION FACTORS

M.3 COST EVALUATION

M.4 DETERMINATION OF THE COMPETITIVE RANGE AND CONTRACT AWARD

M.5 BRANDING IMPLEMENTATION AND MARKING PLANS

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PART I – THE SCHEDULE

SECTION B – SUPPLIES OR SERVICES AND COST/PRICES

B.1 PURPOSE

The purpose of this contract is to provide technical assistance and services as described in detail in Section C, Performance Work Statement, for the implementation of the USAID PADU (Partnerships for Productivity) Activity.

B.2 CONTRACT TYPE AND CONTRACT SERVICES

This is a Cost-Plus-Fixed-Fee (CPFF) completion type contract. The Contractor must provide the outputs and accomplish goals and objectives as described in Section C, and all reports and deliverables set forth in Section F, in accordance with the performance standards specified in Section F and Section H.

B.3 ESTIMATED COST, FIXED FEE AND OBLIGATED AMOUNT

(a) The total estimated cost for the performance of the work required hereunder, exclusive of fixed fee, if any, is $ (to be inserted upon award). The fixed fee, if any, is $(to be inserted upon award). The estimated cost plus fixed fee, if any, is $(to be inserted upon award). USAID will not pay the Contractor any sum in excess of the total estimated cost.

(b) The contract is incrementally funded. Within the estimated cost plus fixed fee (if any) specified in paragraph (a) above, the amount currently obligated and available for reimbursement of allowable costs incurred by the Contractor (and payment of fee, if any) for performance hereunder is $(to be inserted upon award). The Contractor must not exceed the aforesaid obligated amount in accordance with Federal Acquisition Regulation (FAR) 52.232-22, entitled, “Limitation of Funds.”

(c) Funds obligated hereunder are anticipated to be sufficient to fund activities through (to be determined at time of award).

B.4 PRICE SCHEDULE

The Contractor is not allowed to exceed any contract line item nor is authorized to shift funding between contract line items without prior written approval of the Contracting Officer. The fee is fixed according to the terms of this contract.

Budget Line Items Total Amount Direct Cost $ [TBD] Indirect Cost $ [TBD] Fixed Fee (if any) $ [TBD]

Total Estimated Cost Plus Fixed Fee (if any) $ [TBD]

[to be completed at the time of award]

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B.5 INDIRECT COST

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

[TBD]

B.6 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 52.232-20, “Limitation of Cost,” and FAR 52-232-22, “Limitation of Funds,” if applicable, and AIDAR 752.7003, “Documentation for Payment.”

B.7 PAYMENT OF FIXED FEE

Pursuant to FAR 16.306(d) “Cost-Plus-Fixed-Fee Contracts”, payment of fixed fee will be based on the completion of the following deliverables as described and outlined in Section C and Section F.4 of this contract, and in accordance with the approved fee schedule below:

[The Payment of Fixed Fee will be presented in USD amount by the time of award].

[LEFT BLANK INTENTIONALLY]

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Upon successful achievement of the deliverable, the Contractor must provide evidence of its achievement to the USAID Contracting Officer’s Representative (COR). Upon acceptance by USAID COR, the Contractor must submit an invoice for the amount associated with the fee.

In accordance with FAR 52.216-8, Fixed Fee (2011) USAID will withhold 15% of the total fee or $100,000, whichever is less until the required conditions under the referenced clause have been met.

[END OF SECTION B]

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SECTION C – PERFORMANCE BASED WORK STATEMENT

C.1 ACTIVITY TITLE

USAID Partnerships for Productivity (USAID PADU)

C.2 ACTIVITY SUMMARY

The Partnerships for Productivity (PADU) is a five-year activity to enhance private sector investment in vocational training programs through partnerships among private sector firms and government-owned vocational training centers (i.e., Balai Latihan Kerja/BLK). The activity will facilitate/catalyze the establishment of partnerships to improve the quality of vocational training programs to address skills gaps in the labor market, develop capacity of government institutions and the private sector to improve labor market information systems and services and promote utilization of tax deduction incentives for the private sector.

C.3 BACKGROUND

C.3.1 Activity Context

While Indonesia has made great strides in advancing access to post-primary education, reaching an 85 percent gross enrollment rate in secondary schools in 2018; the quality of learning remains a fundamental concern. Technical and vocational training and education (TVET) institutions,1 which are managed by multiple ministries, are hampered by theoretical curricula, outdated facilities, a lack of teachers/instructors with practical skills, and weak linkages with the private sector. Decentralized governance has also contributed to inconsistencies or disparities among districts and provinces in the delivery, and quality, of training programs, particularly in the secondary vocational education (SMK) and non-formal training programs known as Balai Latihan Kerja (BLK). Consequently, there are mismatches between graduating students/training participants and the competency and skills needed to enter or progress in the workplace. A World Bank study of employers reported that employees/trainees lack aptitudes and skills in critical thinking, communication, and problem solving that are essential for success in the workplace.2

The Government of Indonesia (GOI) recognizes these challenges and aims to stimulate workforce development improvements, both through formal and private sector training initiatives. Specifically, President Joko Widodo has called for reforms in TVET institutions and asked that TVET adjust their curriculum, learning materials, work practices, testing, and certification to meet the demands of business and industry.3 To spark private-sector investment in workforce development, the GOI is offering tax incentives for businesses that implement vocational training to strengthen the quality of human resources or work via formal and non-formal training institutions. Through the Finance Ministerial Decree, PMK No.128/PMK.03/2019, the GOI is granting firms/employers a reduction in taxable gross income to

1 TVET institutions refer to vocational upper secondary schools, religious-based vocational secondary schools, higher education with diploma programs, vocational training centers (BLK), or other government institutions implementing workforce-related services at national, provincial, or district levels.

2 This study examined employers’ opinions on their employees’ work performance and behavior in various work sectors.

3 https://setkab.go.id/en/vocational-education-system-needs-reforms-reorientation-president-jokowi/ https://setkab.go.id/en/vocational-education-system-needs-reforms-reorientation-president-jokowi/

Page - 13 implement improved workforce practices, apprenticeship programs, and other human resource development (“learning”) programs. 4 Companies that implement vocational education programs meeting GOI’s criteria may receive a 200 percent tax deduction.

In designing this activity, USAID has conducted consultations with key stakeholders5 and taken into account lessons from previous workforce development activities. Across these consultations, stakeholders identified the key barrier in addressing the weak linkages/connection and collaboration between the private sector and TVET institution as a lack of support for bridging the two parties to connect and establish partnerships. Furthermore, a weak labor market information system (LMIS)6 contributed to skills mismatches.

Based on the Indonesian demand for skilled workers, the GOI commitment to workforce improvement backed by incentives, and the novelty of the incentive program, USAID/Indonesia proposes to link and catalyze partnerships among companies with relevant TVET institutions. The activity will compel private sector firms to be anchor partners of TVET institutions, support the private sector to plan and implement vocational training programs in collaboration with TVET institutions, and work with the GOI to streamline regulations and guidelines related to the utilization of tax deductions and incentives on training activities. In addition, the activity will strengthen the existing Indonesian LMIS AyoKitaKerja to support the country's efforts to build a skilled and competitive workforce.7

USAID/Indonesia will leverage past investments in workforce development initiatives, particularly the established relationships with private sector partners, such as Indonesian Employers Association (APINDO) and business associations. Ultimately, this activity will enhance public-private cooperation to improve the quality and productivity of the Indonesian workforce through resources available in-country from both the government and private sector.

C.3.2 Problem Statement

Collaboration and linkages between the private sector and technical and vocational and education training (TVET) institutions in Indonesia are weak. Most companies rely on their own resources to develop the quality of their workforce. Consultations with Indonesian employers indicate that many do not believe

4 This Ministerial decree stipulates that vocational training includes on-the-job training such as work practices (praktek kerja), internships and apprenticeships, and other forms of human resources development programs generally termed as “learning” programs. https://perpajakan.ddtc.co.id/peraturan-pajak/read/peraturan-menteri-keuangan-128pmk-0102019 5 USAID/HCP has conducted initial consultations with GOI (the Ministry of Manpower and the Ministry of Education) and several companies. Follow-on consultations with other stakeholders, such as with the Ministry of Industry as well as the Ministry of Finance (DirGen of Tax) on the expectations and mechanics of the tax facility, will take place at the activity implementation stage.

6 LMIS refers to institutional arrangements and procedures that coordinate collection, processing, storage, retrieval, and dissemination of labour market information (European Training Foundation, https://www.etf.europa.eu/sites/default/files/m/466C7A2340B3DAE0C12580E60049FC1D_LMIS.pdf); an advanced LMIS provides stakeholders/users with information to help them make informed decisions on a variety of issues, including job search, career planning and skills upgrading, business investment and hiring, public or private workforce and skills investments, optimal employment and skills policy designed to meet future demands (The World Bank, 2020).

7 The Ministry of Manpower launched its Labor Market Information System(LMIS) AyoKitaKerja or now called Sistem Informasi Ketenegakerjaan or Sisnaker (Employment Information System) in 2016.

https://perpajakan.ddtc.co.id/peraturan-pajak/read/peraturan-menteri-keuangan-128pmk-0102019 https://perpajakan.ddtc.co.id/peraturan-pajak/read/peraturan-menteri-keuangan-128pmk-0102019

Page - 14 that the current education and training system provides work-ready employees, especially as technology and automation increasingly characterize modern job operations. Meanwhile, current technical and vocational training programs do not keep up with labor market/industry demand/needs for higher-level skills. Employers thus face challenges in identifying appropriate workers. Factors inhibiting the efficient supply and demand of labor force include inadequate labor market information for TVET institutions and training participants; curriculum/training mismatch and heterogeneous quality of TVET providers; limited opportunities for on-the-job training; high labor mobility costs; weak fundamentals among certain industries to engage in TVET and rapid structural change and technological development.8

Improvements are therefore necessary across the entire vocational training system, with a particular opportunity to strengthen public and private sector partnerships utilizing the tax deduction policy. These partnerships are key to addressing the current gaps within TVET institutions and enable them to improve their curriculum, learning materials/facilities, internships and apprenticeships and other relevant learning/training programs critical for students/training participants to acquire market-relevant skills before graduation. In parallel with these interventions, strengthening the existing Indonesian Labor Market Information System (LMIS) is critical to bridge the gap between TVET institutions and employers to improve matching of training to jobs.

Many Indonesian Government priorities have shifted to responding to the COVID-19 pandemic, significantly affecting implementation of the ministerial decree on tax deductions. While some businesses struggle to maintain basic operations, there is an opportunity to help enhance their productivity and potentially reduce training costs through the recent tax deduction decree. The results of this activity will help provide high quality, productive workers to private sector firms, and revive long-term economic growth in Indonesia.

C.4 THEORY OF CHANGE

IF private sector firms in Indonesia develop effective collaboration and partnerships with TVET institutions;

And IF these partnerships enable TVET institutions to improve on-the-job trainings, curricula, instruction/learning process, instructors’ skills, and facilities;

THEN TVET institutions will produce graduates with higher-level skills that increase their employability and productivity.

C.5 OVERALL GOAL AND EXPECTED RESULTS

C.5.1 Goal:

To enhance private sector investment in vocational training programs through partnerships with TVET institutions9

8 Program Information Document. The World Bank (2018).

9 Based on USAID recent consultations with the Ministry of Manpower, USAID will target only government-owned vocational training centers i.e., Balai Latihan Kerja (BLK) in 4 (four) USAID priority provinces.

http://documents.worldbank.org/curated/pt/594741563369992590/pdf/Concept-Stage-Program-Information-Document-PID-Indonesia-Skills-Development-Project-P166693.pdf

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C.5.2 Key Objectives:

1. To catalyze and facilitate partnerships between private sector firms and public vocational training centers to implement vocational training programs.

2. To improve capacity of the public and private sector to plan and implement vocational training programs and to deliver labor market information services.

3. To streamline regulations and guidelines related to utilization/implementation of tax deductions/incentives on training activities for the private sector.

C.5.3 Expected Results

1. Strengthened connectivity and partnerships between the public and private sector entities to align workforce development initiatives with market demand

2. Increased capacity of government and TVET institutions, and private sector entities to plan and implement vocational training programs to improve workforce productivity

3. Increased quantity and quality of private sector investment in vocational training programs

4. Improved training curricula and other joint vocational programs at participating TVET institutions to develop the workforce skills required by the private sector employers

5. Enhanced commitment of the Ministry of Manpower (MOM) (e.g., signed agreements and/or committed resources) to continue partnerships between participating private sector and TVET institutions following the end of the activity

6. Increased tax deduction submissions by the private sector firms as a result of training activities implementation in partnerships with TVET institutions.

7. Strengthened labor market information system (LMIS) with improved LMIS utilization and/or service to stakeholders/users.

C.5.4 Intermediate Results Supported by PADU

The PADU activity aligns with USAID/Indonesia’s 2020 - 2025 CDCS under DO 2, Inclusive Market- Driven Economic Growth Increased. It will contribute to IR 2.1: Workforce Productivity Increased, and IR 2.1.2: Access to market-relevant vocational and technical training increased, by strengthening market-relevant linkages between technical and vocational training institutions and companies demanding improved labor. The activity will also contribute to IR 2.2: Public and Private Capacity to Expand Economic Growth Strengthened through both IR 2.2.1: Economic policy and regulatory implementation improved and 2.2.2 Private sector engagement to achieve development outcomes expanded. Through this activity, USAID will promote utilization of the GOI tax credit and support companies to apply for the facility, facilitating public and private capacity to expand economic growth while simultaneously improving regulatory implementation.

This activity implements USAID Private Sector Engagement Policy to convene and catalyze private sector resources to improve both their own workforce skills and capabilities as well as GOI technical and vocational training institutions connections to market demand. The activity contributes to the Economic

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Growth Pillar of the U.S. Indo-Pacific Strategy by enhancing the quality of private sector investment for improving workforce productivity.

The activity is well-aligned to GOI development strategies. The GOI Medium-Term Development Plan (RPJMN 2020 - 2024) lists “Quality and Competitive Human Capital” as the first goal in the plan, which this activity will work to support GOI to achieve.

C.5.5 ACTIVITY COMPONENTS

A. Component 1: Building of partnerships between the private sector and vocational training centers (Facilitation of creation of effective partnerships between private sector firms/companies and vocational training centers (i.e., Balai Latihan Kerja or BLKs) to address market-relevant skills gaps.)

Under Component 1, the Contractor must work with key stakeholders to assess and identify labor force skill gaps in the target provinces that will be addressed through partnerships between firms and BLKs while fulfilling requirements of vocational training programs as outlined in the Ministerial Decree of Finance Minister on tax deduction incentives for the private sector10. Included as key stakeholders for this activity are the Ministry of Manpower (MOM), Ministry of Industry, business associations such as APINDO, industry-based associations, Indonesian chamber of commerce (Kadin) as well as vocational training centers (Balai Latihan Kerja/BLKs) and other key stakeholders. In a parallel effort, the contractor must develop a strategy and/or a roadmap to facilitate partnerships between private sector firms and BLKs under the MOM and local governments to improve the quality of vocational training in order to meet the identified demand for skills. The Contractor must closely engage these stakeholders to provide input and recommendations for strategy and/or roadmap for the partnerships. Subsequently, the Contractor must support/facilitate process of building effective partnerships between the private sector firms and BLKs until formalization of the partnerships, including for example, mediating communication and negotiations to identify and reach agreement on shared interests, goals, the scope of vocational training programs to be implemented, roles and responsibilities as well as terms and conditions for the partnerships. Specifically, the scope of collaborative vocational training or workforce development programs to be implemented under each partnership may include a range of vocational training activities mutually determined and agreed to such as apprenticeships or other types of on-the-job training, curriculum development/revisions, trainer/instructor training, work placement, and other forms of workforce development programs. These vocational training or workforce development programs must be designed to meet industry needs and/or provide graduates with certifications according to international standards as well as in support of inclusive and diverse learning including for marginalized groups, particularly women. Contractor must not deliver vocational training or workforce development programs directly, but provide support to private sector partners and BLKs in the design or development of a range of vocational training activities on an as-needed basis.

10 This Ministerial decree stipulates that vocational training includes on-the-job training such as work practices (praktek kerja), internships and apprenticeships, and other forms of human resources (HR) development programs generally termed as “learning” programs

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Private sector partners and BLKs will play an active role to enhance skills development in Indonesia that supports Indonesia’s transition to the fourth industrial revolution (Industry 4.0). When needed, the Contractor is expected to provide technical assistance to BLKs to build institutional capacity to adapt or develop a workforce training and development model aimed at building and enhancing productive, mutually-beneficial partnerships with the private sector to meet industry needs/demand for specific skills.

It is the responsibility of both partners/parties of the partnership (i.e., private sector firms and BLKs) to ensure the roll-out and continuity of the program and partnerships.

Activities must include, but are not limited to:

1. Assist the Ministry of Manpower (MOM) and local governments to (i) examine/review the effectiveness, value-add, and impact of BLKs’ existing partnerships with firms; (ii) develop plans and/or strategic approach to create partnerships between BLKs and private sector firms; (iii) establish monitoring and evaluation tools, including tracer study, to measure results/outcome of partnerships with the private sector;

2. Provide technical support to the MOM, local governments, businesses/industry associations/employers, and other stakeholders to conduct skill gap analyses to identify specific skills to be addressed by the partnerships between companies and vocational training centers;

3. Work with all stakeholders including MOM, the Ministry of Industry, and businesses/industry associations to develop a strategy and/or a roadmap to establish new partnerships between private sector firms with vocational training centers/BLKs; and

4. Facilitate and provide need-based technical support in the areas of training, curriculum and any type of workforce development under the partnerships with a particular focus on developing certifications or supporting skills-building for transformation to Industry 4.0 according to international standards.

B. Component 2: Labor Market Information System (LMIS) strengthening (Building partnerships between MOM, private sector, and vocational training institutions to improve LMIS to increase access to quality vocational training and employment opportunities.)

The Contractor must provide technical support to key government stakeholders overseeing the existing Labor Market Information System (LMIS) including the Ministry of Manpower, local governments and other relevant institutions to improve/strengthen the LMIS. The Contractor must work collaboratively with these stakeholders to identify gaps within the LMIS and develop effective approaches to revamp the LMIS including, for example, through mobilizing stakeholder contributions to the system. The Contractor must use the recent World Bank’s assessment of Indonesian LMIS AyoKitaKerja to inform its approaches to strengthen the system11. The Contractor must ensure or strengthen connection of national LMIS to local labor markets (provincial and district/cities level). Furthermore, the Contractor must provide technical assistance to local governments to utilize the LMIS to inform labor/talent needs planning in the target provinces. The Contractor must assess the capacity of sections/units within the Ministry of Manpower and other relevant government agencies overseeing and/or managing LMIS and provide technical assistance (TA) to address identified needs. The Contractor must engage, or work with, 11The World Bank conducted the study in 2020 based on the request of the Ministry of Manpower. The title of the study report is ”Toward a World-Class Labor Market Information System for Indonesia: An Assessment of the System Managed by the Indonesian Ministry of Manpower'.

Page - 18 government agencies/authorities, businesses, and other relevant stakeholders to disseminate or socialize the LMIS to users i.e., prospective workers/job seekers, employers, local workforce development planning agencies and vocational training providers to increase their utilization of LMIS.

Activities must include, but are not limited to:

1. In close collaboration with MOM, engage key stakeholders, including provincial/district governments, the private sector and other relevant entities, to support/contribute to strengthening of LMIS;

2. Plan, organize and conduct assessments to identify gaps in the functions and utilization of existing LMIS in Indonesia;

3. Engage key GOI agencies and other stakeholders, including digital technology providers, to improve the LMIS based on the identified gaps;

4. Develop the capacity of GOI agencies involved in LMIS to better manage LMIS to improve its utility and services for the users; and

5. Support development or strengthening of local LMI systems to serve the needs of users to expand/increase their access to market-relevant training and employment opportunities.

C. Component 3: Streamlining of policy guidance and/or implementing regulations related to utilization/implementation of tax deduction/incentive on training activities for the private sector

The Contractor must review existing policy on tax deductions for the private sector (i.e., the Ministerial Decree of the Finance Minister) to help businesses understand and follow processes/procedures to claim and obtain tax deductions successfully. The Contractor must work with GOI agencies and other relevant stakeholders overseeing implementation of the tax deduction policy to streamline implementing regulations and guidance issued by the GOI agencies to accelerate its utilization (e.g., creating user guides and multimedia tutorials on tax deduction application/claim process for the private sector). The Contractor must work with business/industry associations to socialize streamlined implementing regulations and policy guidance to the private sector to maximize utilization of tax deduction incentives for vocational training collaborations with the training centers.

Activities must include, but are not limited to:

1. Convene GOI agencies and relevant companies to identify implementation issues and gaps in policy guidance and implementing regulations of tax deduction on training activities for companies;

2. Provide technical assistance to relevant ministries/agencies (e.g Ministry of Finance and Ministry of Industry) and business associations to develop policy guidance and necessary implementing regulations to streamline and expedite process and procedures to claim/apply for tax deduction;

3. Provide technical assistance to relevant ministries and/or business associations to socialize the policy guidance, including public awareness campaigns to increase utilization of tax deduction incentives by the private sector;

4. Provide technical assistance to relevant stakeholders such as the Ministry of Industry, MOM, business association to strengthen coaching clinic/services or helpdesk support for firms on tax deduction application/submissions, and

5. Advise businesses on the applicability and processes of tax deductions for training costs, internships, apprenticeships and other types of workforce training programs.

C.6 INCORPORATION OF GENDER AND SOCIAL INCLUSION

The results of gender analysis show that changes in gender and social norms to vocational training and

Page - 19 employment as well as enactment in laws that protect workers’ rights are required to close the gender gap and promote inclusivity in the workforce. The activity will include specific interventions with BLKs to address the underlying drivers of exclusion of women and other marginalized groups (youth, people with disabilities, the poorest, and the most vulnerable). Across the activity cycle, the Contractor must ensure that all USAID policies and strategies, including the 2012 Gender Equality and Female Empowerment Policy, Youth in Development Policy and its operationalization under ADS 205 are applied. To determine the intervention, as required by ADS 205, the Contractor must identify, understand, and explain issues that affect the participation of men, women, and marginalized groups as well as reflect the intersection of sex with age, ethnicity, disability and location in training programs and employment. Based on the findings of this analysis and findings of the USAID gender analysis report, Contractor must then develop gender and inclusive development action plans (GIDAP) or strategies to incorporate interventions that address and reduce the inequities and challenges identified.

To increase the probability of project effectiveness and sustainability, during the assessment phase, the Contractor must ensure inclusion of different marginalized populations. For example, if you are engaging youth, ensure that women, poor and vulnerable youth and youth with disabilities are represented and then explicitly identify key stakeholders. All people-level data for indicators must disaggregate the needs of relevant population groups by sex, age or other relevant characteristics. The contractor must monitor and report progress of gender-related activities and results in order to measure USAID’s outcomes and impacts related to gender and social inclusion, especially with respect to women’s and marginalized population’s participation in the training programs. The Contractor -must report if there is any unintended negative impact on gender equality as a result of the activity implementation and develop an appropriate mitigation plan.

C.7 MONITORING, EVALUATION AND LEARNING

The Activity will develop and conduct a robust performance monitoring, evaluation, and learning to (a) ensure the intended results and impact are being generated, and (b) inform activity management if and when course corrections may be necessary.

After the Activity is awarded, a detailed Activity Monitoring, Evaluation, and Learning Plan (AMEL Plan) will be developed in accordance with ADS 201.3.4.10, in close consultation with USAID/Indonesia.

The Activity will develop qualitative and quantitative indicators, including appropriate Standard Foreign Assistance Indicators (F indicators) as mandated by USAID, to capture the purpose, IRs, sub-IRs and outputs, and will establish baselines, Performance Indicator Reference Sheet (PIRS) including performance targets for those indicators. The time it takes to ascertain baselines will depend on the nature of the indicators and their data sources. All indicators must be consistent with 1) USAID’s Indo-Pacific Vision and 2) USAID/Indonesia’s Mission-wide Performance Management Plan (PMP). USAID guidance on setting performance targets indicates that they should be ambitious, but achievable.

In addition, the activity will develop other indicators necessary in order to adequately measure and track progress and impact of the range of possible tasks. The Activity must describe the rationale behind the indicators selected (relevance of the indicator, data quality, availability, cost-effectiveness of collection, etc.) and tradeoffs will be agreed upon jointly with USAID. Outcome indicators, as opposed to output indicators, must be used whenever possible.

https://www.usaid.gov/indo-pacific-vision

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In line with the overall goal of the activity to enhance private sector investment in vocational training, the Activity aims to support creation of new and improved partnerships in the four (4) USAID priority provinces i.e. North Sumatra, Banten, East Java and South Sulawesi. The following potential indicators, including gender, age, and people with disabilities data disaggregation, may be considered:

● Number of female and male participants/graduates with improved market-relevant skills following USG-assisted workforce development programs

● Percent of females and males with new employment within 6 months of training following participation in USG- assisted workforce development programs (EG 6-12).

● Percentage change in BLKs’ capacity to implement improved training programs as a result of private sector partnership

● Number of partnerships between companies and training institutions established/created to implement vocational training programs compliant with tax incentives policy requirements.

● Value of leveraged funds through USG assistance (PMP indicators)

● Value of funds mobilized through USG assistance (PMP indicators)

● Satisfaction (in percentage) concerning on labor market information and analysis of skills supply to inform the development of new training

● Number of prospective workers/job seekers getting internships/apprenticeships or employment from improved LMIS utilization and/or service

● The value of tax incentives collected as a result of USG assistance

● Number of tax deduction submissions as a result of USG assisted partnerships

In order to better represent the results of USAID-funded activities, when applicable, USAID requires geographically disaggregated indicators to measure the Activity results. Such indicators include information on the location or geographic scale of the Activity performance, impact, or other information.

Geographically disaggregated indicators enable the Activity to investigate the geographic variation in performance for improved monitoring, learning, and adapting. In the AMEL plan, the Contractor must identify which indicators lend themselves to geographic representation and report accordingly. The AMEL plan must demonstrate how such geographically disaggregated indicators will be used to analyze Activity performance and inform management decisions.

In accordance with ADS 201 and ADS 579, to maximize development impact effectively and efficiently, as well as to promote transparency, participation, and collaboration, the Activity will collect Activity Location Data as well the estimate of investment in those locations. The Activity Location Data depict an activity’s location of implementation and intended beneficiaries.

A mid-term and final performance evaluation will be conducted through an external contract that will be managed by USAID/Indonesia. The mid-term evaluation will focus on investigating the most effective approach and/or factor(s) to incentivize the private sector to collaborate/partner with vocational training centers (i.e., BLKs) to improve quality of training and workforce productivity as well as key approaches to improve LMIS utility and services. Furthermore, these evaluations will assess activity systems, implementation, and lessons learned and use the results as organizational diagnostic to improve the implementation. The Activity will collaborate with the USAID evaluation team by providing relevant data and information.

The Activity will incorporate the collaborating, learning and adapting (CLA) principles throughout the Program Cycle, to collaborate and engage with a broad set of stakeholders, to learn from both evidence and experience and to adapt iteratively to unexpected results or changes in context. CLA can ensure that programs are coordinated, grounded in a strong evidence base, and iteratively adapted to remain relevant throughout implementation. The systematic application of CLA approaches, grounded in a strong learning agenda, to drive implementation will improve the effectiveness of interventions and support the

Page - 21 achievement of development outcomes. The activity will contribute to and expand on the learning agenda that has been identified in the USAID/Indonesia…