MENA_Regional_Smart_Cities_DM_SOW.pdf

STATEMENT OF WORK

“DEFINITIONAL MISSION” FOR ADVISORY AND ASSISTANCE SERVICES BY NON-

GOVERNMENTAL SOURCES FOR TURKEY AND JORDAN

PROJECT TITLE: REGIONAL SMART CITIES INFRASTRUCTURE DEFINITIONAL

MISSION

1. SCOPE OF WORK

The U.S. Trade and Development Agency (“USTDA”) requires services under this non-personal services Contract to support its decision-making relative to the funding of activities to support projects1 in Turkey and Jordan.

This definitional mission (DM) shall identify, evaluate and recommend suitable smart city infrastructure projects in Turkey and Jordan for USTDA funding consideration. The DM shall identify and recommend projects for USTDA funding consideration through consulting with central and municipal governments, the private sector, and multilateral and private financial institutions in both countries. The DM shall also conduct in-depth market research of smart cities opportunities in both countries to identify near and medium-term activities, principal actors and stakeholders, interested U.S.-based parties, and other resources to further USTDA’s regional smart city engagement.

It is the expectation that the DM shall focus on municipal level smart city planning and recommend potential USTDA projects to support integrated planning focused on intelligent transportation;

smart utilities (energy, water and waste management); emergency management and resiliency, and e-citizen services.

Turkey

In order to facilitate smart cities development in Turkey, the Ministry of Development launched an Information Society Strategy and Action Plan for 2015-2018, which provides a framework for national and municipal planning. At the national level, the Ministry of Development is developing a national smart cities strategy to provide targets and financing instruments to incentive municipal smart city projects. On the sub-national level, several municipalities such as

Istanbul, Ankara, Izmir and Gaziantep, have already introduced smart applications to support comprehensive municipal planning as well as projects to improve energy, transportation and e-citizen services.

1 Activity is defined as the work that will be funded by USTDA. A USTDA Activity could include a Feasibility Study, Technical Assistance, Reverse Trade Mission, Conference, Training or Workshop. Project is defined as the infrastructure development or goal, as defined by the Host

Country that will require the importation of goods and services in order to be implemented. The

USTDA Activity would help progress the Project to implementation. The USTDA Activity would help promote the use of U.S. goods and services for the implementation of the Project.

Over the last five years, USTDA has supported a large portfolio of “smart” projects in Turkey.

The Agency has funded four feasibility studies, two workshops, and two reverse trade missions to support smart grid development in Turkey. In addition, in 2011, USTDA hosted an Intelligent

Transportation Systems Reverse Trade Mission (RTM) for the Municipality of Izmir. USTDA is currently working with the Istanbul Metropolitan Municipality on a Smarter Cities Technical

Assistance to improve city operations, enhance crisis and disaster management, and provide efficient and reliable public services for the citizens of Istanbul.

Jordan

The Greater Amman Municipality (GAM) is a key stakeholder for smart city planning in Jordan.

The city management has noted that their near-term investment priorities are e-citizen services and the implementation of geographic information systems to manage municipal assets;

intelligent transportation, and smart utility management. Through focusing on these priority areas and investing in big data solutions to increase efficiencies within the municipality, GAM seeks to improve citizen services and security, while decreasing the environmental impact of its growing urban population.

GAM has already been working closely with U.S. companies in their smart city planning. In

2015, Deloitte Consulting conducted a CityPerform pilot project to improve service delivery within Amman, particularly with waste management. In addition, in 2015, GAM and Microsoft

Jordan signed a 3-year institutional agreement for smart city planning. GAM has also been meeting with several U.S. vendors to discuss possible investments in vehicle charging stations, smart transportation cards, and LED street lights.

USTDA requires the Contractor to provide a Final Report to USTDA, which shall:

1.1 assess and justify whether USTDA should provide funding for the proposed feasibility study, technical assistance, pilot project, or other activity(ies), hereinafter referred to as

“activity(ies)”;

1.2 in a separate Public Market Report, evaluate and report on the sector in the host countries, as well as the market for U.S. export of products and services;

1.3 assess any alternative activity(ies) which the Contractor sees as viable options for

USTDA consideration;

1.4 develop terms of reference and budgets for at least three (3) activities in Turkey and two

(2) activities in Jordan for USTDA funding consideration (If Contractor is having difficulty meeting this requirement, the Contractor should discuss the findings of the mission with the Contracting Officer’s Representative (COR) in advance of writing the draft Final Report);

1.5 develop a suggested itinerary and recommend delegates for a Turkey smart cities reverse trade mission to the United States;

1.6 demonstrate meaningful discussions with U.S. firms, as well as current and previous host country project sponsors/Grantees to evaluate the status of implementation for USTDA-supported projects that are sector-relevant to the DM;

1.7 based on climate resilience screening results, provide details, including rationale, on whether (a) an in-depth analysis is recommended; (b) an in-depth analysis is not recommended; or (c) whether or not the climate resilience screening has indicated that a proposed project should not move forward; and

1.8 in addition to the proposed activites, provide in-depth smart cities market research to identify medium-term activities in Turkey and Jordan, including the identification of principal actors and stakeholders, interested U.S.-based parties, and other resources to assist in developing a road map for subsequent DM in-country activities;

1.9 provide supporting analysis and recommendations on the above information and all the relevant issues.

2. DELIVERABLES

The Contractor shall submit all deliverables under this Contract to the COR on or about June 30, 2016.

3. PERIOD OF PERFORMANCE

The Period of Performance for this Contract shall be nine months from the date of the Contracting

Officer's signature on the Contract.

4. PLACE OF PERFORMANCE

The places of performance shall be at the Contractor’s facility, with travel to Turkey and Jordan.

5. DEFINITIONAL MISSION TIPS

The Contractor is encouraged to review the Definitional Mission tips on USTDA’s website via the following link to better understand USTDA’s expectations for this Definitional Mission:

http://www.ustda.gov/businessopps/dmproposaltips.asp

6. DELIVERY & PERFORMANCE REQUIREMENTS

6.1 KICK-OFF MEETING WITH THE USTDA REGIONAL OFFICE AND

PROGRAM EVALUATION OFFICE

Upon award, the Contractor shall be required to sign a Non-Disclosure Agreement to the extent that the work under this Contract requires that the Contractor be given access to confidential information or proprietary data from the Government or other companies. After signing the http://www.ustda.gov/businessopps/dmproposaltips.asp

Non-Disclosure Agreement, the Contractor shall contact USTDA’s COR to schedule a meeting to discuss details of the Contract assignment. Unless otherwise advised by the COR, this meeting will be held at USTDA’s office in Arlington, Virginia. The COR shall provide the

Contractor with names and addresses of the potential project sponsor(s), other pertinent entities to contact in the United States and overseas, and any other relevant details that may impact the design and/or evaluation of the proposed activity(ies).

The Contractor shall meet with USTDA’s Program Evaluation Office to discuss the details of the Contract assignment, and specific requirements of sections 5.5, and the Definitional

Mission Final Report Section 6.7, and 6.8 of this Contract. This discussion can be held in conjunction with the meeting with the COR or independently.

6.2 PRE-VISIT REPORT

No less than one week prior to departure to the host countries, the Contractor shall provide the

Contracting Officer (CO) and the COR a pre-visit written report containing (i) the proposed schedule or itinerary; (ii) preliminary strategies or findings on viability of the project(s); (iii) financing options; (iv) U.S. company interest in the project(s) and information about the sector in the host country, in general; (v) summaries of proposed activity(ies) for USTDA’s funding consideration to support the project(s) identified; (vi) a list of contacts to be made during the visit; and (vii) a pre-visit checklist of issues, information and questions to be utilized during the visit. The Contractor shall include in the pre-visit report a preliminary version of Annex

VI (in Excel format), which will provide substantive comments on U.S. company interest in the project(s) and in the host country in general.

6.3 COMMUNICATION WITH U.S. EMBASSY/CONSULATE IN HOST

COUNTRIES

USTDA will advise the U.S. Embassy and/or Consulate(s) in the host countries of the

Contractor’s proposed travel itinerary no later than one week prior to departure and request that the Commercial and/or Economic Section(s) of the Embassy and/or Consulate(s) provide the Contractor with names and addresses of appropriate host country officials with whom to meet.

6.4 CONTRACTOR’S HOST COUNTRY TRAVEL

The Contractor shall travel to the host countries to meet with relevant project officials and with the U.S. Embassy and/or Consulate(s). This travel is not required to occur concurrently, but travel to Turkey shall be for a least ten (10) business days, including visits to at least five municipalities. Travel to Jordan shall include at least five (5) business days, focused on project development in Amman. For each country, the Contractor shall organize, market and conduct half day roundtable sessions on smart cities planning, which would be open to government, the private sector, and other stakeholders. The Contractor shall meet with national and municipal financing bodies in both countries, including local banks and financing institutions such as the European Bank for Reconstruction and Development, the

World Bank and International Finance Corporation.

The Contractor shall contact the Commercial and/or Economic Section(s) upon arrival and prior to departure for briefing and debriefing meetings. It is the Contractor’s primary responsibility to arrange all meetings. The Commercial or Economic Section staff may be able to assist the Contractor in arranging some initial meetings with host country officials.

The Contractor is also responsible for arranging its own logistics for the visit. For example, hotel accommodations, transportation, and interpretation services. In some instances the

USTDA Contractor may find it useful to purchase the Gold Key or Business Facilitation

Services offered at the U.S. Embassy or Consulate. In some cases, the Contractor may need to contract with a local entity to assist with trip logistics and/or for interpretation services.

However, substantive technical work may not be subcontracted to local entities.

Contractor’s travel shall commence within 30 days of contract award, unless otherwise agreed to in writing by the COR.

6.5 ASSESS PROJECT VIABILITY

The Contractor shall hold meaningful discussions with appropriate contacts to determine how

USTDA’s funding can be used most effectively to support the implementation of the project(s) identified in the host countries. The Contractor shall provide relevant information to potential project sponsors regarding USTDA’s evaluation criteria, timeline, and due diligence requirements. The Contractor shall gauge the interest of potential project financiers and potential U.S. suppliers and assess whether the proposed USTDA activity(ies) will help accomplish the project(s) goals. Further, the Contractor shall assess whether the proposed activity is justified and the project(s) is viable by:

Assessing the attractiveness to U.S. companies of the sector and the market under consideration in the host countries. This assessment should include determination of U.S.

industry interest;

Consulting with related professional organizations and associations, such as the Smart

Cities Council, U.S. Green Building Council, among others;

Identifying potential procurement of U.S. goods and services for project implementation, broken-down by categories and dollar values;

Analyzing the project risks and assessing the project’s financial viability, the priority of the project and the political/social/organizational support it has, potential sources of financing, and the capability and experience of the project sponsor. The analysis shall also include an assessment of the social and economic development impacts of the proposed project;

Conducting a climate resilience screening utilizing the guidelines in Annex IX;

Conducting a Life Cycle Cost Analysis (LCCA) for the project to examine the initial capital costs to plan, design, develop, and build the project as well as provide a detailed analysis of all long-term operation costs associated with maintaining the facilities, equipment, and other assets to be financed as part of the project. These long-term costs may include, but are not limited to, warranties, operation, maintenance, acquisition, installation, refurbishment, and potential disposal costs;

Determining whether the project is a priority for the host country and substantiating whether it has political/social/organizational support;

Validating and justifying the capability and experience of the project sponsor to implement the project and oversee the USTDA funded work; and, Recommending how the USTDA activity will impact the project, and how USTDA’s impact can be measured and evaluated over five years. Specifically, determining how

USTDA could measure and confirm whether USTDA’s funding goals were met.

6.6 CONTRACTOR SECTOR ANALYSIS AND PAST USTDA PROJECT

ASSESSMENT

In accordance with Section 1.5 of the Statement of Work, the Contractor shall describe all meaningful discussions with current and previous host country project sponsors for projects that were profiled during the kick-off meeting with USTDA's program office. The Contractor shall report on the status of implementation for each project, any realized or anticipated U.S.

exports and developmental impact, and any other measurable success or relevant information.

6.7 CONTACTS

The Contractor shall submit a list of individuals contacted during the DM, with their addresses, phone and fax numbers, e-mail addresses, and a substantive summary of key comments that support the Contractor's recommendations. The list shall be submitted in Excel format according to the specifications outlined in Annex VI.

6.8 CONTRACTOR INTERIM STATUS REPORTING AND DELIVERABLES

The Contractor shall provide verbal updates to the COR on a regular basis. The deliverables may also take the form of information, advice, opinions, alternatives, analyses, evaluations, recommendations, interim and DM Final Reports, or other oral or written work products needed for successful performance. The Contractor shall respond in a timely manner to reasonable requests for updates and information from the COR.

6.9 CONTRACTOR -- DEFINITIONAL MISSION REPORTS

The Contractor shall prepare a report to USTDA that addresses all the DM requirements as described in this Statement of Work. Since this report will be available for public distribution, any sensitive or business proprietary information shall be included in a separate confidential attachment to the DM Final Report. The DM Final Report will also contain a separate Public

Market Report as more fully described in Section 6.

Note that USTDA may publish the Contractor’s Final Report (without the confidential attachment) on its website and/or in other media. Contractor shall ensure that the Final

Report is suitable for publication.

6.9.1 REPORT DRAFT -- COR APPROVAL

The Contractor shall provide the report in draft form electronically to USTDA for COR review within ten (10) working days after completion of the overseas visit. The report should be clearly marked “Draft” on the cover. To the maximum extent practicable, the

COR will provide feedback to the Contractor within 20 working days after receipt of the draft report.

6.9.2 REVISED REPORT DRAFT – COR APPROVAL

Within five (5) working days after receiving the COR’s comments on the draft report, the

Contractor shall submit a revised copy for COR review. The Contractor is responsible for quality control actions necessary to achieve quality in the delivery of the required services.

The COR will reject reports not conforming in all respects to the contract requirements.

The Contractor shall correct all deficiencies at no additional cost to the Government and shall revise the report as necessary until securing final COR approval.

6.9.3 FINAL REPORT – COR APPROVAL

The DM Final Report shall incorporate all mutually agreed upon material and revisions.

The report shall include all supporting documentation. It shall be grammatically and factually correct in all respects, internally consistent, and all statements and tables shall be clear and easily understood by a competent reader, and contain no typographical errors.

Upon notification from the COR that the report is acceptable, the Contractor shall submit one (1) electronic original, along with any confidential attachment, to USTDA. No hardcopy submissions are required. All reports must be paginated, clearly labeled, and also submitted electronically in Microsoft Word and Adobe PDF format on a CD-ROM.

The CD-ROM must be clearly labeled with the title of the definitional mission, date of submission, and project number so that the CD-ROM is easily identifiable. The Contractor shall also submit to the COR via e-mail one electronic copy of the Microsoft Word version of the DM Final Report. The Public Market Report shall be submitted as a separate electronic document, subject to the same requirements as those noted above.

7. DEFINITIONAL MISSION (DM) FINAL REPORT

The Contractor shall submit a DM Final Report that includes a complete description of the mission detailing the following: (1) all projects reviewed during the course of the mission; (2) summaries of all meetings held prior to and during the mission, including a list of all persons attending the meetings and their contact information; and, (3) a brief explanation for any activity(ies) or project(s) that were reviewed and were not recommended for USTDA funding. The DM Final

Report shall also include a Public Market Report, which shall be a separate document covering the market for U.S. products in the relevant country and sector covered by the mission. This information shall include current market conditions, including:

existing or expected sector regulations;

projected investments/procurements in the sector;

identification of the major stakeholders;

identification of growth trends; and other factors useful to U.S. suppliers considering the market.

This section shall form the Public Market Report, and, as such, shall be appropriate for wide public distribution. Please see Annex VII for guidance on the content of the Public Market Report.

Finally, the DM Final Report shall provide individual activity recommendations that contain the information required in Section 6.1 through 6.17 for each activity recommended for USTDA funding.

The Contractor shall treat any proposal and supporting information submitted by a U.S. company as business confidential in its entirety, unless otherwise stated in writing by the company. All business confidential information, including, where relevant, the Contractor’s recommendations, terms of reference and budgets for sole source projects shall be exclusively in a separate confidential attachment. The Contractor shall not include any business confidential information in the public version of Final Report or the Public Market Report and shall include the following confidentiality certification in the final invoice:

“I hereby certify that the Final Report contains no business confidential information.”

7.1 USTDA REPORT OBJECTIVES

7.1.1 The Contractor shall provide a Final Report to USTDA, which will:

assess the attractiveness to U.S. companies of the sector and the market under consideration in the host countries;

assess and justify whether or not USTDA should provide funding for an activity to support the proposed project(s);

assess and justify any alternative or other activities which the Contractor sees as viable options for USTDA consideration; and provide recommendations for funding in a Final Report that analyzes all relevant issues.

If the Contractor recommends that USTDA fund the activity(ies) in a phased approach, and/or if any outstanding issues should be resolved or conditions met before funding is approved, those phases, issues and/or conditions should be clearly explained in the recommendation.

7.1.2 Contractor recommendations shall be based upon USTDA funding criteria, which are that the project must:

represent an opportunity for the sale of U.S. goods and services that is many times greater than the proposed amount of USTDA funding;

represent an opportunity to positively impact the development of the host country in a measurable and definable way;

be likely to receive implementation financing;

have a procurement process that provides “equal access” to U.S. firms; and, be a priority of the host country project sponsor and country where the project is located.

7.1.3 The Contractor shall provide a Public Market Report in accordance with the guidance contained in Annex VII.

7.2 EXECUTIVE SUMMARY

The Contractor shall submit an executive summary of the report’s findings and recommendations.

7.3 PROJECT DESCRIPTION

The Contractor shall submit a description and history of the project, including, among other things, host country project sponsor, sector, project location, source of raw materials, infrastructure requirements, proposed technological approach, legal and regulatory framework

(licenses, permits, etc.), implementation schedule, economic fundamentals (estimated capital cost, life cycle costs, expected revenues, etc.), and any other key variables or issues that the

Contractor deems critical as part of a thorough activity/project evaluation. The Contractor shall also provide a step-by-step detailed explanation of how the project will be implemented following the recommended USTDA-funded activity, and explain how the recommended

USTDA activity supports the project implementation process.

7.4 PROJECT SPONSOR’S CAPABILITIES AND COMMITMENT

The Contractor shall submit a description of the host country project sponsor’s authority and ability to receive and manage a USTDA grant. The Contractor also shall assess and describe the project sponsor’s business/government operations, and commitment and ability to implement the project. This should include a description of the project sponsor’s previous commitments, work with U.S. companies, overall responsiveness, business activities, and government mandate, if applicable.

7.5 IMPLEMENTATION FINANCING

The Contractor shall submit a review of the financing options for project implementation, including an assessment of the overall cost estimate of the project including the LCCA and, for projects involving potential U.S. equity investment, the project’s proposed debt-equity structure to ensure that it corresponds to the requirements of the prospective lenders (this aspect is critical to USTDA’s decision making). The Contractor shall analyze the proposed financing options and delineate which option represents the best value to the project sponsor and will take into account quality and overall value when implementing the project. As part of this review, the Contractor is required to contact officials from the potential financing institutions, including, where appropriate, multilateral lending institutions, the U.S. Export-Import Bank

(Ex-Im), the Overseas Private Investment Corporation (OPIC), and private/commercial sources, to ensure that the project sponsors have adequately explored their financing options.

The Contractor shall meet with national and municipal financing bodies in both countries, including local banks and financing institutions such as the European Bank for Reconstruction and Development, the World Bank and International Finance Corporation. The Contractor shall provide names and contact information for contacts at the potential lending institutions and summarize their comments. The Contractor must determine the most likely source(s) of implementation financing and ensure that the terms of reference for any proposed activity fulfill the requirements of the most likely source(s), or suggest appropriate revisions to ensure that they do.

7.6 U.S. EXPORT POTENTIAL

The Contractor shall describe how procurements are typically conducted in the sector, by the project sponsor, in the country. The Contractor shall confirm whether there are local content requirements or procurement restrictions in this sector or for the project and whether a local provider/distributor will be involved in project implementation. The Contractor shall also list any import licensing requirements or permits needed by U.S. companies to participate and supply goods for the project. The Contractor shall also identify any U.S. companies already working with the project sponsor or working in the respective sector in the host country.

The Contractor shall submit a best estimate of the potential procurement of U.S. goods and services for project implementation. This estimate should be broken down by category and dollar value of goods and services likely to be imported for the project and a list of potential

U.S. suppliers of the goods and services listed that are likely to be sourced from the United

States.

A report of discussions with a reasonable number of U.S. companies that could be exporters, and their level of interest in the project, must also be included. In characterizing a given company’s interest, care should be taken to note not only the general interest in a sector or country, but also interest in the specific project and the candid opinion as to how competitive the company’s offerings would be were the project to reach the implementation stage. The

Contractor should be sensitive to disclosing information about the proposed USTDA activity, to ensure no one is given unfair advantage to compete for USTDA’s funding or the end project implementation. The Contractor shall submit a complete list of U.S. companies contacted, with the name and contact information of individuals interviewed and their responses for each

Project recommended for USTDA funding. If any U.S. company wishes to keep its contact information or the details of the interview confidential, the Contractor shall submit the required list of contacts with the interviewee’s comments in a confidential attachment at the end of the

DM Final Report clearly marked “Confidential”. Please reference Annex VII for an example of the list required for submission.

7.7 FOREIGN COMPETITION AND MARKET ENTRY ISSUES

The Contractor shall discuss the foreign competition for goods and services likely to be procured for project implementation by category, including a discussion of U.S. industry competitiveness in each category, taking into account geographic factors, local industry capabilities, technology and licensing issues, past procurement tendencies of the project sponsor, and how the procurement is likely to be conducted. The Contractor shall discuss the extent to which market entry issues impede trade and how the project will help overcome these obstacles.

7.8 EVALUATION STRATEGY

The Contractor shall address the following questions, at a minimum, within the Evaluation

Strategy: (1) what is the proposed project implementation timeline; (2) how will the project likely be developed (Engineering, Procurement and Construction, Turnkey, Build-Own-

Transfer, Build-Own-Operate, etc.); (3) what potential difficulties may the project sponsor encounter during project implementation and how can these challenges be mitigated; (4) what regulations, if any, should be in place before the project can be implemented; and (5) what other entities must authorize or approve the project for implementation. Specifically, the

Contractor shall recommend benchmarks to measure whether the activity helped the proposed project move towards implementation and helped the project sponsor achieve its goals, timelines, and expected accomplishments based upon industry standards. The Contractor shall recommend where this information could be gathered.

7.9 DEVELOPMENTAL IMPACT

The Contractor shall identify at least one viable and quantifiable Development Impact Measure that will result from the Project being implemented based on the results of the USTDA activity.

The Contractor shall work with the proposed project sponsor and USTDA to identify the most viable Development Impact Measure(s) that will result for the host country. Please refer to the

Development Impact Guide provided in Annex VIII for the complete list of indicators and further instruction on how these indicators should be selected and estimated. The Program

Evaluation Office may provide additional guidance. The indicator should be chosen according to sector. If more than one activity is recommended by the DM, at least one Development

Impact Measure should be identified for each activity. More than one Development Impact

Measure may be identified for an activity but they must be viable and quantifiable. If the DM believes it is necessary to recommend a Development Impact Measure that is not contained in the list, please contact the COR and the Program Evaluation Office.

The Contractor shall provide the following information for each indicator identified for each activity: 1) current status, prior to USTDA’s activity and Project implementation (Baseline);

2) anticipated outcomes should the Project be implemented, based on the recommendations of the USTDA activity; 3) the anticipated timeline for the realization of these benefits; and, 4) how such information can be measured and what sources could be utilized to determine whether the outcome was realized.

7.10 IMPACT ON THE ENVIRONMENT

The Contractor shall submit a statement regarding the likely consequences that the proposed project(s) may have on the environment and ensure that the terms of reference for the activity include, at a minimum, a preliminary review of the project’s impact on the environment, with reference to local environmental requirements and those of potential lending agencies. The activity should identify potential negative impacts and discuss the extent to which they can be minimized.

The Contractor shall conduct a climate resilience screening utilizing the guidance provided in

Annex IX and, based on climate resilience screening results, provide details, including rationale, on whether (a) an in-depth analysis is recommended; (b) an in-depth analysis is not recommended; or (c) whether or not the climate resilience screening has indicated that a proposed project should not move forward. If in-depth analysis is recommended for the project, the Contractor shall propose appropriate language for the Terms of Reference (see section

7.14.6).

7.11 IMPACT ON U.S. LABOR

The Contractor shall submit an assessment of the impact of the project(s) on U.S. labor, addressing the legislative prohibitions on the use of Foreign Assistance Funds described in

Annex I.

7.12 QUALIFICATIONS

The Contractor shall submit the activity team qualifications required to conduct the activity(ies) and the evaluation criteria to be used by the project sponsor in cases of competed activity(ies).

7.13 JUSTIFICATION AND RECOMMENDATION

The Contractor shall provide an explanation of why USTDA’s grant funding is needed, including a description of how the activity would support U.S. Government priorities and promote U.S. commercial goals, how USTDA's participation would add value to the project's development, and how the success of each project would be measured in terms of U.S. trade promotion and development impact.

The Contractor shall provide detailed recommendations as to:

1. Whether or not the project meets USTDA’s basic funding criteria;

2. The appropriate TOR for the proposed activity; and

3. The appropriate budget for the TOR recommended for the proposed activity.

If the recommendation is that USTDA should fund the activity, but in a phased approach or only if certain outstanding issues are resolved or conditions met, those phases, issues or conditions should be clearly delineated in the recommendation.

7.14 TERMS OF REFERENCE

The DM Contractor shall provide Terms of Reference (TOR) for the activity(ies). The TOR, which must be endorsed by the project sponsor, shall include, at a minimum, the following:

7.14.2 Purpose and objective of the activity. This should explain how the activity relates to the proposed project.

7.14.3 Project Development Analysis. This section should describe all work required to develop and implement the project, such as data collection, technology selection, project site preparation, regulatory reviews, bidding document preparation, training, cost benefit analysis, and project implementation plan. The work should be tailored to fit the needs of the project and meet USTDA’s funding requirements.

7.14.4 Economic analysis of the project. The TOR shall describe all analyses that are needed to determine the economic viability and sustainability of the project. This includes a cash flow analysis, life cycle costing, attention to market conditions, raw material availability, supply agreements, off-take agreements, and competing alternative methods of achieving the same or similar project objectives. The TOR shall include all requirements and information needed by financiers, project developers and stakeholders.

In order to provide the project sponsor with sufficient information to responsibly manage and maintain the project for the duration of the investment, the TOR should include a task or sub-task to include a Life Cycle Cost Analysis (LCCA) as part of the overall project cost estimate. The LCCA shall examine the total initial capital costs to plan, design, develop, and build the project, and also shall include a detailed analysis of the costs associated with the long-term operation of the project, which includes maintaining the facilities, equipment, and other assets financed as part of the project. Such costs include, but are not limited to, warranties, operation, maintenance, acquisition, installation, refurbishment, and disposal costs that could be encountered throughout the life of the project.

7.14.5 Financial Analysis. The TOR should help define the financial requirements to implement the project, which may include determining the availability of equity and debt financing, the views of potential financing entities and potential for U.S.

Export-Import Bank and OPIC to play a role in project implementation. The TOR shall help progress the project to implementation.

7.14.6 Environmental Analysis. The TOR shall help to determine the project’s anticipated impact on the environment. The TOR shall ensure that the environmental analysis will conform to local requirements, the U.S. government, and multilateral lending agencies. The TOR should include language requiring the identification of potential negative impacts, discuss the extent to which they can be mitigated, and the development plans for a full environmental impact assessment if and when the project moves forward to the implementation stage.

The TOR should also outline all work required by the project sponsor following the completion of the USTDA activity but prior to project implementation. Based on the Contractor’s climate resilience screening, if an in-depth analysis for the project is needed, then the Contractor shall propose language detailing how such an in-depth analysis should be completed for the project (see Attachment IX).

7.14.7 Regulatory Review. The TOR should detail all regulatory analysis that would be required to progress the project toward implementation. The TOR should also include language to identify potential regulatory barriers to project implementation, and whether/how they can be overcome.

7.14.8 Development Impact Measurements. The TOR shall detail the anticipated host country impacts of the project, in accordance with USTDA’s Development

Impact Measures, should the project be implemented following the recommendations provided through the project planning assistance. This task shall incorporate the baseline information gathered by the DM Contractor, in accordance with Section 6.9 of this Statement of Work, and provide clear instruction to the Project Sponsor and Contractor to update this baseline information to accurately reflect new projections based on the analysis of project feasibility and recommendations set forth in other tasks. This task shall instruct the Contractor to utilize the Development Impact Guide provided in Annex VIII, in conjunction with the baseline data. The Contractor shall work closely with the

Project Sponsor during this task to ensure that the projected development impacts are viable and measurable.

7.14.9 U.S. sources of supply. The TOR must include the identification of U.S. sources of supply for all goods and services required to implement the project. It is anticipated that the TOR will also require detailed information about U.S.

companies, potential products/services, a point of contact appropriate to the market in the host country, and how they would need to engage to participate in the project.

7.14.10 Implementation Plan. The TOR shall include an implementation plan detailing all work required, after the conclusion of the activity, to implement the project, with a corresponding timeline of when each step is anticipated to occur.

7.14.11 Final Report. The Contractor shall prepare and deliver to the Grantee and

USTDA a substantive and comprehensive final report of all work performed under these Terms of Reference (“Final Report”). The Final Report shall be organized according to the above tasks, and shall include all deliverables and documents that have been provided to the Grantee. The Final Report also shall include an Executive Summary and a Project Synopsis containing only public information. The Final Report shall be prepared in accordance with Clause I of

Annex II of the Grant Agreement.

The TOR must be designed to meet the requirements of the most likely source(s) of implementation financing. The requirements of some of the potential financing sources may be found at the following web sites:

www.opic.gov/finance.home.html www.exim.gov/tools.index.html www.ifc.org/proserv www.adb.org/PrivateSector/finance/default.asp http://www.opic.gov/finance.home.html http://www.exim.gov/tools.index.html http://www.ifc.org/proserv http://www.adb.org/PrivateSector/finance/default.asp www.ebrd.com/applyindex.html www.iadb.org www.afdb.org

7.15 BUDGET

7.15.2 Budget Format. The DM Contractor shall provide a detailed budget for each recommended USTDA activity that is divided into three parts: a line item budget and task breakdown (Annex III), a Task Completion Schedule (Annex IV), and a budget narrative (Annex V). All costs in each budget should be reasonable and allocable to the work being performed, and should support the activity TOR. The budget should be supported with sufficient detail to enable USTDA staff or others reviewing the material to understand completely, not only the budgeted amounts, but also the methodology that justifies the budget amounts. The budget should be provided in accordance with the format in Annex III and should include:

Labor, budgeted by position title and task for each of the positions on the activity team. Positions should be identifiable, with descriptions of the positions and proposed team members included in the proposal. Person-Days should reflect the proposed number of days of work effort proposed for each position for each task.

The labor cost shall be derived as set forth in Annex III. The proposed budget may not include fee or profit on contractor employee labor as set forth in Annex

III.

Itemization for per diem, transportation, communications, purchased services/contracts, translation of Final Report, and other direct costs. Per diem must be based on U.S. Government rates, which are available on the State

Department web site (http://aoprals.state.gov/web920/per_diem.asp)

The Task Completion Schedule should list each major task to be performed in support of the TOR. The duration of each task is to be graphically presented in a bar chart as illustrated in Annex IV.

The budget narrative should provide a detailed budget explanation and justification presenting how all costs have been derived in accordance with the sample provided in Annex V. The narrative must include an explanation for every line item. In general, each narrative statement should describe, in as much detail as possible:

What the specific item is

How the specific item relates to the project

How the amount shown in the budget was arithmetically determined

7.16. INTELLECTUAL PROPERTY

This contract is funded by the United States Government. All intellectual property generated and/or delivered pursuant to this Statement of Work shall be subject to appropriate federal acquisition regulations which entitle the Government to unlimited rights to technical data developed exclusively with Government funds. The Government may: (1) use; (2) disclose; (3) reproduce; (4) prepare derivative works; (5) distribute copies to the public; (6) perform publicly http://www.ebrd.com/applyindex.html http://www.iadb.org/ http://www.afdb.org/ and (7) display publicly, the “data” in any manner and for any purpose, and have or permit others to do so (i.e., the Government may sublicense these rights to another contractor). See FAR 52.227-

14(a).

7.17. INELIGIBILITY FOR PERFORMANCE ON OTHER USTDA ACTIVITIES

It is essential that this DM be conducted with complete impartiality and objectivity and that the

Contractor and its Subcontractors not obtain an unfair competitive advantage on USTDA-funded activities. The Contractor shall therefore be ineligible to compete for, as a prime or subcontractor or otherwise, any USTDA funded activities resulting from this contract. The tasks under this contract require access to proprietary, business confidential, and internal agency documents, to include but not limited to financial data which informs USTDA’s grant and acquisition activities, and may give rise to a potential organizational conflict of interest in accordance with FAR Subpart

9.5. USTDA through its Office of Acquisition Management reserves the right to grant a waiver, based upon FAR 9.503, if preclusion of the Contractor from USTDA activities resulting from this contract would not be in the Government’s interest. This restriction shall remain in effect for four

(4) years from the completion of performance under this contract. The Contractor is responsible for including this restriction in all subcontracts under the contract.

Annex I - 1

8.0 PAYMENT SCHEDULE

30% after Kick-Off Meeting.

30% after Contractor Submittal and Government Acceptance of Initial Draft Report.

40% after Contractor Submittal and Government Acceptance of Final Report.

Annex I-2

Annex I

IMPACT ON U.S. LABOR STATEMENT

THE DM CONTRACTOR SHALL CONSIDER THE VARIOUS IMPACTS ON U.S. LABOR

FOR ALL RECOMMENDED PROJECTS FOR USTDA FUNDING.

The Foreign Operations, Export Financing and Related Programs Appropriations legislation restricts U.S. foreign assistance from being used to provide: (a) any financial incentive to a business enterprise currently located in the United States for the purpose of inducing such an enterprise to relocate outside the United States if such incentive or inducement is likely to reduce the number of employees of such business enterprise in the United States because United States production is being replaced by such enterprise outside the United States; (b) assistance for any project or activity that contributes to the violation of internationally recognized workers’ rights;

and (c) direct assistance for establishing or expanding production of any commodity for export by any country other than the United States, if the commodity is likely to be in surplus on world markets at the time the resulting productive capacity is expected to become operative and if the assistance will cause substantial injury to United States producers of the same, similar, or competing commodity.

Annex II - 1

Annex II

USTDA Nationality Requirements for the DM Contractor

Award is limited to U.S. firms or U.S. individuals. The Contractor may use U.S. subcontractors.

Employees of U.S. Contractor or U.S. subcontractor firms shall be U.S. citizens or non-U.S.

citizens lawfully admitted for permanent residence in the United States, except that up to twenty percent (20%) of the DM contract amount may be used to pay for services performed by (i) Host

Country subcontractors, and/or (ii) Host Country nationals who are employees of the Contractor.

Subcontractors from countries other than the United States or Host Country may not be used.

Goods purchased for performance of the DM services and associated delivery services (e.g., international transportation and insurance) must have their nationality, source and origin in the

United States. Goods and services incidental to DM support (e.g., local lodging, food, and transportation) in Host Country are not subject to the above restrictions. Finally, Contractor’s cumulative use of all subcontractors is limited to less than fifty percent (50%) of the DM contract amount.

Nationality:

Definitions

A “U.S. individual” is (a) a U.S. citizen, or (b) a non-U.S. citizen lawfully admitted for permanent residence in the United States (a green card holder).

A “U.S. firm” is a privately owned firm which is incorporated in the United States, with its principal place of business in the United States, and which is either (a) more than 50% owned by

U.S. individuals, or (b) has been incorporated in the United States for the last three (3) year period; employs U.S. citizens in more than half of its permanent full-time positions in the United

States; and has the existing capability in the United States to perform the work in question.

A partnership, organized in the United States with its principal place of business in the United

States, may also qualify as a “U.S. firm,” as would a joint venture organized or incorporated in the United States consisting entirely of U.S. firms and/or U.S. individuals.

A nonprofit organization, such as an educational institution, foundation, or association may also qualify as a “U.S. firm” if it is incorporated in the United States and managed by a governing body, a majority of whose members are U.S. individuals.

Annex III - 1

Annex III – To Be Used by the DM Contractor for all Recommended Projects for USTDA

Funding Consideration

Required Budget Format

DIRECT LABOR COSTS:

TOR Task TOR Task Name ____________Primary Contractor (Employee) Labor_________

Total Person Days x Daily Rate* = TOTAL COST

I Task ________ (Position A) ________ ________ _____________

(Position B) ________ ________ _____________

TOTALS: ________ ________ _____________

TOR Task TOR Task Name __________________Non-Employee Labor_____________________

Total Person Days x Daily Rate ** = TOTAL COST

I Task ________ (Position A) ________ ________ _____________

(Position B) ________ ________ _____________

TOTALS: ________ ________ _____________

TOTAL DIRECT LABOR COSTS: _____________

OTHER DIRECT COSTS:

Purchased Services/Contracts*** Tasks_________ TOTAL COST

Travel Trips Trip Cost TOTAL COST

International Air Travel _________ _________ _____________

In Country Air Travel _________ _________ _____________

Ground Transportation _________ _________ _____________

Trip Days Per Diem Rate TOTAL COST

Per Diem _________ _________ _____________

Other (local travel, etc.) _________ _________ _____________

Interpreters _________ _________ _____________

Other TOTAL COST Reproduction and Binding _____________

Courier Services _____________

Visa Services _____________

Communication _____________

TOTAL OTHER DIRECT COSTS: _____________

TOTAL COSTS (DIRECT LABOR COSTS + OTHER DIRECT COSTS): _____________

PROPOSED USTDA GRANT: _____________

* Primary Contractor (Employee) Labor Costs = Salary + Overhead + Benefits (no fee or profit).

** Non-Employee Labor Cost = Salary + Overhead + Benefits + Reasonable Fee or Profit.

*** Purchased Services/ Contracts may include engineering drawings, lab work, surveys, translation, etc., which would not be included in Non-Employee Labor Cost above.

Annex IV - 1

Annex IV

Task Completion Schedule for all Recommended Projects for USTDA Funding

Consideration

Weeks 1 2 3 4 5 6 7 8

Task I

Task II

Task III

Final Report

Instructions

List each major task to be performed. The duration of each task is to be graphically represented.

For example, in the illustrative schedule, Task 1 is to begin in Week 1 and end in Week 4.

Preparation of the Final Report begins in Week 6 and is completed in Week 8.

Annex V- 1

Annex V

BUDGET NARRATIVE REQUIREMENTS FOR ALL RECOMMENDED

PROJECTS FOR USTDA FUNDING CONSIDERATION

DIRECT COSTS

Direct Labor - Only salaries and wages for employees of the proposing organization should be identified here. Provide the job title; the names of the individuals, if known;

the experience and training that describes the individual’s capabilities for the project and supports the proposed daily rate; and an explanation of how the individual will support the Terms of Reference. For each, provide the methodology for how the loaded rate was developed.

Exam…