SOL-111-12-000001.doc

USAID/Armenia/ SOL-111-12-000001

ISSUANCE DATE:

NOVEMBER 20, 2011

QUESTIONS DEADLINE:

NOVEMBER 29, 2011

CLOSING DATE:

JANUARY 9, 2012

CLOSING TIME:

10:00 AM (Yerevan Time)

Request for ProposalS SOL- 111-12-000001, USAID/Armenia Tax Reform Project (TRP)

Dear Prospective Offerors:

The United States Government, represented by the U.S. Agency for International Development (USAID), is seeking proposals from qualified organizations interested in providing the services described in the attached solicitation.

If you decide to submit a proposal, it must be submitted in accordance with the attached solicitation and received in Yerevan no later than the date and time indicated above. Offerors are advised that a minimum of 5 days should be allowed for proposals sent by courier. A minimum of 3 weeks should be allowed for proposals sent through the Washington, D.C. State Department address.

The NAICS Code for this solicitation is 541990. This procurement will be conducted as a full and open competition, under which any type of organization may submit proposals. The procedures set forth in FAR Part 15 will apply. USAID plans to award a 4-year Cost-Plus-Fixed-Fee (CPFF), Completion Type Contract with a total estimated cost in the range of $5-$6 million for the implementation of this activity. Cost proposals will be evaluated as a part of a Best Value determination for Contract award. The Offeror is to propose key personnel positions and candidates. Sections B through J of the solicitation will become the Contract, with blanks completed by the Contracting Officer based on the successful proposal.

This solicitation in no way obligates USAID to award a contract, nor does it commit USAID to pay any cost incurred in the preparation and submission of the proposal.

Potential offerors must submit questions concerning this RFP in writing or via email to Armen Karapetyan, Acquisition Specialist, USAID/Armenia. All questions and/or request for clarifications/explanations should be received by the deadline on this Cover Letter. Questions submitted by the Offerors will be answered via an amendment to the solicitation. Mr. Karapetyan can be reached via e-mail at akarapetyan@usaid.gov or via facsimile at (374-10) 464 728. Receipt of this RFP through the internet must be confirmed by written notification to Mr. Karapetyan if the Offeror wishes to be notified of any amendments to the solicitation. Offerors should retain for their records copies of any and all enclosures which accompany their proposals.

Sincerely, John F. Lord

Regional Contracting Officer

USAID/Caucasus

Table of Contents

6SECTION B - SUPPLIES OR SERVICES AND PRICE/COSTS

6B.1

PURPOSE

6B.2

CONTRACT TYPE

6B.3

ESTIMATED COST, FIXED FEE, AND OBLIGATED AMOUNT

6B.4

LINE ITEMS

6B.5

INDIRECT COSTS

7B.6

COSTS REIMBURSABLE

7B.7

FIXED FEE – FAR 52.216-8 (JUN 2011)

8SECTION C - DESCRIPTION/SPECIFICATIONS/STATEMENT OF WORK

8TAX REFORM PROJECT (TRP)

8C.1

OBJECTIVE/BACKGROUND/INTRODUCTION

8A. Overview

10C.2.

SCOPE OF WORK

11C.3

DETAILED WORK REQUIREMENTS

11C.3 (a) Component 1: Human and Institutional Capacity Building at the Ministry of Finance

12C.3 (b) Component 2: Human and Institutional Capacity Building at the State Revenue Committee

13C.3 (c) Component 3: Improved Discourse on Tax Policy and Administration

15SECTION D - PACKAGING AND MARKING

15D.1

AIDAR 752.7009 MARKING (JAN 1993)

15D.2

BRANDING STRATEGY FOR TAX REFORM PROJECT

15D.3

BRANDING AND MARKING POLICY

16SECTION E - INSPECTION AND ACCEPTANCE

16E.1

NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE

16E.2

INSPECTION AND ACCEPTANCE

17SECTION F - DELIVERIES OR PERFORMANCE

17F.1

17F.2.

PERIOD OF PERFORMANCE

17F.3

PLACE OF PERFORMANCE

17F.4

PERFORMANCE STANDARDS

17F.5

DELIVERABLES

18F.6

REPORTS AND DELIVERABLES

22F.7

KEY PERSONNEL

23F.8

AUTHORIZED WORK WEEK

23F.9

MONITORING AND EVALUATION

23F.10

752.242-70 PERIODIC PROGRESS REPORTS (OCT 2007)

23F.11

SUBMISSION REQUIREMENTS FOR DEVELOPMENT EXPERIENCE DOCUMENTS (JAN 2004)

24F.12

ACCRUALS

26SECTION G - CONTRACT ADMINISTRATION DATA

26G.1

AIDAR 752.7003 DOCUMENTATION FOR PAYMENT (NOV 1998)

27G.2

ADMINISTRATIVE CONTRACTING OFFICE

27G.3

CONTRACTING OFFICER’S TECHNICAL REPRESENTATIVE (COTR)

27G.4

TECHNICAL DIRECTIONS/RELATIONSHIP WITH USAID

29G.5

PAYING OFFICE

30SECTION H - SPECIAL CONTRACT REQUIREMENTS

30H.1

30H.2

AIDAR 752.7004 EMERGENCY LOCATOR INFORMATION (JUL 1997)

30H.3

AIDAR 752.7031 LEAVE AND HOLIDAYS (OCT 1989)

32H.4 AIDAR 752.209-71 Organizational Conflicts of Interest Discovered After Award (JUN 1993)

32H.5 AIDAR 752.7032 INTERNATIONAL TRAVEL APPROVAL AND NOTIFICATION REQUIREMENTS (JAN 1990)

33H.6

AIDAR 752.225-70 SOURCE, ORIGIN AND NATIONALITY REQUIREMENTS (FEB 1997)

33H.7 752.228-70 MEDICAL EVACUATION (MEDEVAC) SERVICES (July 2007)

34H.8

INSURANCE AND SERVICES

34H.9

AUTHORIZED GEOGRAPHIC CODE

34H.10

NONEXPENDABLE PROPERTY PURCHASES AND INFORMATION TECHNOLOGY RESOURCES

35H.11

LOGISTIC SUPPORT

35H.12

LANGUAGE REQUIREMENTS

35H.13 SUBCONTRACTING PLAN AND THE SF 294 – SUBCONTRACTING REPORT FOR INDIVIDUAL CONTRACTS AND SF 295 – SUMMARY CONTRACTING REPORT

35H.14

EXECUTIVE ORDER ON TERRORISM FINANCING (FEB 2002)

35H.15

REPORTING OF FOREIGN TAXES

36H.16

USAID DISABILITY POLICY - ACQUISITION (DECEMBER 2004)

37H.17

CONSENT TO SUBCONTRACTS

37H.18

ENVIRONMENTAL COMPLIANCE

38H.19 PROHIBITION AGAINST DISCRIMINATION (Oct 2011)

39SECTION I - CONTRACT CLAUSES

39I.1

41I.2 52.209-9 UPDATES OF PUBLICLY AVAILABLE INFORMATION REGARDING RESPONSIBILITY MATTERS (JAN 2011)

42I.3 52.217-8 OPTION TO EXTEND SERVICES (Nov 1999)

42I.4

52.252-2 CLAUSES INCORPORATED BY REFERENCE (FEB 1998)

42I.5

COMMUNICATIONS PRODUCTS (OCT 1994)

43I.6

AIDAR 752.225-71 LOCAL PROCUREMENT (FEB 1997)

43I.7

52.203-8 CANCEL, RESCIND, RECOVER FUNDS ILLEGAL/IMPROPER ACTIVITY (JAN 1997)

43I.8

52.243-7 NOTIFICATION OF CHANGES (APR 1984)

45I.9

52.229-8 TAXES--FOREIGN COST-REIMBURSEMENT CONTRACTS (MAR 1990)

45I.10

INTERNATIONAL TRAVEL APPROVAL

46I.11

752.219-70 USAID MENTOR-PROTÉGÉ PROGRAM (JULY 2007)

46I.12

752.219-71 MENTOR REQUIREMENTS AND EVALUATION (JULY 2007)

46I.13

752.7101 VOLUNTARY POPULATION PLANNING ACTIVITIES (JUNE 2008)

48PART III - LIST OF DOCUMENTS, EXHIBITS AND OTHER ATTACHMENTS

48SECTION J - LIST OF ATTACHMENTS

49PART IV - REPRESENTATIONS AND INSTRUCTIONS

49SECTION K - Representations, Certifications, and Other Statements of Bidders

49K.1

NOTICE LISTING SOLICITATION PROVISIONS INCORPORATED BY REFERENCE

49K.2

FAR 52.204-8 ANNUAL REPRESENTATIONS AND CERTIFICATIONS (JAN 2011)

52K.3

FAR 52.209-5 CERTIFICATION REGARDING RESPONSIBILITY MATTERS (APR 2010)

54K.4

FAR 52.209-7 INFORMATION REGARDING RESPONSIBILITY MATTERS (APR 2010)

55K.5 FAR 52.209-8 Updates of Information Regarding Responsibility Matters (apr 2010)

55K.6

FAR 52.230-7 PROPOSAL DISCLOSURE--COST ACCOUNTING PRACTICE CHANGES (APR 2005)

55K.7

INSURANCE - IMMUNITY FROM TORT LIABILITY

56K.8

SIGNATURE

57SECTION L - INSTRUCTIONS, CONDITIONS, AND NOTICES TO OFFERORS

57L.1

NOTICE LISTING SOLICITATION PROVISIONS INCORPORATED BY

57REFERENCE

57L.2

FAR 52.215-1 INSTRUCTIONS TO OFFERORS-COMPETITIVE ACQUISITION

57(JAN 2004)

61L.3

FAR 52.252-1 SOLICITATION PROVISIONS INCORPORATED BY REFERENCE (FEB 1998)

61L.4

FAR 52.216-1 TYPE OF CONTRACT (APR 1984)

61L.5

FAR 52.233-2 SERVICE OF PROTEST (SEP 2006)

61L.6

GENERAL INSTRUCTIONS TO OFFERORS

62L.7

DELIVERY INSTRUCTIONS

63L.8

RESPONSIVENESS TO RFP

64L.9

OFFEROR’S RESPONSIBILITIES

64L.10

SUBMISSION OF ALTERNATE PROPOSALS

64L.11

UNNECESSARILY ELABORATE PROPOSALS

65L.12

ORAL PRESENTATIONS

65L.13

INSTRUCTIONS FOR THE PREPARATION OF THE TECHNICAL PROPOSAL

71L.14 INSTRUCTIONS FOR THE PREPARATION OF THE BRANDING IMPLEMENTATION AND MARKING PLANS

72L.15

INSTRUCTIONS FOR THE PREPARATION OF THE COST/BUSINESS PROPOSAL (CPFF)

78SECTION M - EVALUATION FACTORS FOR AWARD

78M.1

OVERVIEW

78M.2

CONTRACT AWARD – BEST VALUE

78M.3

TECHNICAL EVALUATION CRITERIA

79TECHNICAL EVALUATION CRITERIA

80M.4

COST EVALUATION CRITERIA

81M.5

CONTRACTING WITH SMALL BUSINESS CONCERNS

81M.6

CONTRACTING WITH U.S SMALL BUSINESS CONCERNS IN THE MENTOR-PROTÉGÉ PROGRAM

81M.7

DETERMINATION OF THE COMPETITIVE RANGE AND CONTRACT AWARD

PART I - THE SCHEDULE

SECTION B - SUPPLIES OR SERVICES AND PRICE/COSTS

B.1

PURPOSE

The purpose of the Tax Reform Project (TRP) is to improve business competitiveness in Armenia through targeted interventions aimed at reducing the tax compliance burden for individuals and businesses.

B.2

CONTRACT TYPE

The Government contemplates award of a Cost-Plus-Fixed-Fee (CPFF), Completion Type Contract resulting from this solicitation. For the consideration set forth below, the Contractor shall provide the deliverables or outputs and in accordance with the performance standards described/specified in Section F.

B.3

ESTIMATED COST, FIXED FEE, AND OBLIGATED AMOUNT

(a) The estimated cost for the performance of the work required hereunder, exclusive of Fixed Fee, if any, is $_______. The Fixed Fee, if any, is $__________. The estimated Cost-Plus-Fixed-Fee, if any, is $____________.

(b) 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 $____________. The Contractor shall not exceed the aforesaid obligated amount.

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

B.4

LINE ITEMS

Total Direct Cost

Total Indirect Cost

Fixed Fee

Total Estimated Cost

B.5

INDIRECT COSTS

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

Description Rate Base Type Period

TBD

1/ 1/ 1/

1/Base of Application:

Type of Rate: Predetermined

Period:

B.6

COSTS REIMBURSABLE

The U.S. dollar costs allowable shall 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, if applicable, and AIDAR 752.7003, Documentation for Payment.

B.7

FIXED FEE – FAR 52.216-8 (JUN 2011)

a) The Government shall pay the Contractor for performing this contract the fixed fee specified in the Schedule.

(b) Payment of the fixed fee shall be made as specified in the Schedule; provided that the

Contracting Officer withholds a reserve not to exceed 15 percent of the total fixed fee or $100,000, whichever is less, to protect the Government’s interest. The Contracting Officer shall release 75 percent of all fee withholds under this contract after receipt of an adequate certified final indirect cost rate proposal covering the year of physical completion of this contract, provided the Contractor has satisfied all other contract terms and conditions, including the submission of the final patent and royalty reports, and is not delinquent in submitting final vouchers on prior years’ settlements. The Contracting Officer may release up to 90 percent of the fee withholds under this contract based on the Contractor’s past performance related to the submission and settlement of final indirect cost rate proposals.

[END OF SECTION B]

SECTION C - DESCRIPTION/SPECIFICATIONS/STATEMENT OF WORK

TAX REFORM PROJECT (TRP)

C.1

OBJECTIVE/BACKGROUND/INTRODUCTION

Purpose

‘How people are taxed, who is taxed, and what is taxed tell more about a society than anything else.’

Taxes shape economic growth by altering the incentives for work, investment, savings and innovation. In addition, tax revenues that increase with economic growth ensure sustainable funding of essential public services for poor people: ‘public goods’ such as security, health and education on which economic growth and social development depend.

Mobilization of domestic resources is crucial for the provision of public goods and central for the redistribution of wealth and for accountability of governments towards their citizens. This requires fair, effective and efficient tax systems, sustained commitment to address harmful tax practices and tax evasion, as well as increased international cooperation and enhanced transparency.

Tax is central to the ‘Monterrey Consensus’ agreed in 2002 and reaffirmed in 2008, by which developing countries including Armenia committed themselves to deliver ‘effective, efficient, transparent and accountable’ taxation systems, in return for increased international development assistance.

The Government of Armenia (GOAM), after years of institutional challenges, has launched a comprehensive reform program to streamline tax policy and regulation, lighten the tax compliance burden on businesses, curtail corruption, and instill greater trust between taxpayers and tax authorities. Effective revenue policy and efficient tax administration will improve the business enabling environment and contribute to Armenia’s economic growth.

The Tax Reform Project (hereafter the Project) will support the Ministry of Finance (MoF) to increase its capacity to formulate tax policy and to objectively, effectively and efficiently handle tax audit appeals. It will also provide technical assistance to the State Revenue Committee (SRC) to improve its ability to effectively, efficiently and transparently carry out its tax administration responsibilities. Lastly, it will work with the MoF, SRC, the private-sector and civil society organizations to improve the discourse on tax policy and tax administration issues.

Background

A. Overview In Armenia, tax regulations and administration are regularly cited as among the most challenging factors affecting the business environment. The World Bank/IFC’s Doing Business 2011 report indicates that Armenia ranked 159th out of 183 countries on the “Paying Taxes” score, 152nd on the number of tax payments and 179th on the time spent by taxpayers to comply with tax obligations. The tax-to-GDP ratio is 20 percent in Armenia, the lowest among its peer countries. In the World Economic Forum Global Competitiveness Report 2011-2012, respondents in Armenia cited corruption, tax regulations, inefficient government bureaucracy and tax rates as the top four most problematic factors for doing business.

Inadequate strategic planning, tax policy development, revenue administration and excessive red tape are among the causes of the ineffective and inefficient tax system in Armenia. This has led to chronic revenue shortfalls, which the Government of Armenia (GOAM) tries to cover by advance tax collection resulting in delayed tax reimbursements (especially value added taxes for exporters) that further undermine competitiveness. A recent American Chamber of Commerce member survey reports that 69 percent of the firms surveyed had received demands for advance tax payment from the authorities and 39 percent thought that the tax rates and procedures were problematic.

These rankings indicate the ineffectiveness of tax policies and administration in Armenia that increase the costs of doing business and impede firms’ ability to compete. They also dissuade informal enterprises from evolving into registered, tax-paying entities.

Government of Armenia Efforts and Rationale for Intervention

The GOAM recently launched reforms focusing on four major areas: institutional development, structural changes, business processes re-engineering, and modernizing information and communication systems. The following has been achieved:

· The Tax Administration Strategy and Action Plan to Reform SRC was developed for 2009-2012;

· A Supreme Board for Implementation of New Revenue Administration Culture was created in 2008;

· GOAM issued an order in 2009 for the establishment of an unified electronic tax administration system at SRC;

· The SRC was reorganized and the Large Tax Payers Unit was established;

· Risk-based audit selection introduced and the automation program initiated;

· VAT refund automation software development and utilization;

· Amendments to tax laws were passed by the National Assembly (NA) to streamline tax payer reporting thereby reducing tax compliance costs;

· Two taxpayer centers were established to provide accessible tax payer services;

· E-filing was introduced and became mandatory for large taxpayers (approximately 5000 taxpayers are filing their returns electronically);

· The Appeal Committee for taxpayers complaints was transferred from the SRC to the MoF in June 2010;

· Tax policy, legislation and regulation development was transferred from SRC to MoF in June 2010.

The tax reform process is at an important stage and momentum must be maintained to ensure fiscal stability and economic development in the country. The Government of Armenia is pursuing tax reform and considers USAID, the World Bank and the International Monetary Fund (IMF) as strategic partners in this process for the following reasons:

· Strong working relationship between GOAM and USAID. USAID is recognized by GOAM as the lead donor agency for provision of expert technical advice in fiscal and tax reform. USAID has established strong working relationships with the SRC and the Ministry of Finance and the MoF has requested assistance to strengthen its capacity to develop revenue and tax administration policy. The Ministry’s mandate also includes tax audit appeals, an important step toward systematically and fairly managing taxpayers’ complaints.

· Need for revenue and tax administration policy reforms. Policymakers recognize the need for change given private sector complaints and low rankings in recent international comparative indices. The Government of Armenia is revising its revenue and tax administration policies and regulations to streamline and harmonize them with international standards. The GOAM also recognizes that it is crucial to develop trust between taxpayers and tax authorities and has launched a serious effort to restyle the SRC into a more efficient and “user-friendly” organization.

· A clear course of action for fulfillment of reforms. As part of the drive toward better performance in tax administration, the GOAM continues to refine the design of the Taxpayer 3 system. USAID assisted in the development and design of Taxpayer 3 through the Technical Assistance to Support Tax Administration Reform (TASTAR) project that also supported SRC to modernize their audit and VAT refund processes and taxpayer services.

C.2.

SCOPE OF WORK

A. Objective

The overall goal of the project is to improve the effectiveness and efficiency of SRC tax administration and MoF tax policy development, which in turn will promote generation of adequate revenue in an efficient and equitable manner, while fostering an enabling environment for economic growth, socio economic development and poverty reduction. The project will assist the State Revenue Committee and Ministry of Finance in the following areas: (a) revenue policy formulation (strategic planning, revenue analysis and tax policy review and simplification; and the appeals policies, procedures and implementation carried out by the Ministry of Finance and (b) improve the SRC strategic planning, human resource management and internal control processes to better administer taxes and to enhance taxpayer trust and compliance.

B. Linkages with the USAID Mission Operation Plan and Strategic Objectives The Project will contribute to the achievement of USAID/Armenia’s Economic Growth Assistance Objective: A more competitive and diversified private sector. Improved tax policies and administration will result in increased business competitiveness and foster new private-sector investment by reducing the tax-compliance burden on businesses.

The Project will contribute to USAID/Armenia Results Framework Intermediate Results (IRs):

IR1: Increased enterprise efficiency and productivity. The Project will contribute to an improved business environment by addressing one of Armenia’s principal weaknesses: taxation.

IR2: Improved regulatory and institutional framework for financial, trade and ICT services. The Project will have a positive impact on the above sectors through improved tax policies, streamlining tax administration procedures, and improved tax payer services.

C.3

DETAILED WORK REQUIREMENTS

The Project will build upon on the results and lessons learned from the USAID TASTAR project and will be implemented in close collaboration with the World Bank Public Expenditure Management and Tax Administration Project (PEMTAM) (http://www-wds.worldbank.org/external/default/main?pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000001843_20110301114909) and the IMF. The USAID and World Bank projects will work in tandem: USAID will provide technical assistance and the World Bank will provide commodities and capital goods. Technical assistance will fall into two major categories: tax policy and appeals process capacity building at the Ministry of Finance and tax administration capacity building at the State Revenue Committee. The Project will also support improving the relationship between tax authorities and tax payers.

The Project results are grouped under two components for assistance to the MoF and SRC and a third component to improve tax authority-tax payer discourse on tax policy and administration issues:

C.3 (a) Component 1: Human and Institutional Capacity Building at the Ministry of Finance

i. Tax Policy Development

The contractor shall assist the MoF to attain the capacity to sustainably develop and manage tax policy in accordance with international standards and best practices.

Required Results:

· The MoF has defined an improved legislative and regulatory tax policy framework action plan.

· The MoF has the sustainable competency-based capacity to develop, manage and analyze tax policy in accordance with international standards and best practices.

ii. Appeals Process Development and Management

The contractor shall assist the MoF to attain the capacity to manage an objective, effective, efficient and transparent appeals process.

Required Results:

· The MoF designs and adopts an appeals process based on international standards and best practices.

· The MoF has the sustainable and competency-based human and institutional capacity to objectively, effectively, efficiently and transparently manage appeals.

· The MoF establishes a system of rulings to provide guidance and precedence on specific tax appeal cases resolved.

· The MoF and SRC define and adopt procedures for their effective interaction on appeals cases.

C.3 (b) Component 2: Human and Institutional Capacity Building at the State Revenue Committee

i. Strategic and Human Resource Planning and Reform

The contractor shall assist the SRC to develop and sustain an effective, efficient and transparent strategic and human resource management capacity based on international standards and best practices.

Required Results:

· The SRC attains a competency-based and sustainable strategic planning capacity.

· The SRC completes and adopts a human and institutional capacity reform plan based on international standards and best practices.

· The SRC attains a sustainable competency-based organizational management capacity based on international standards and best practices.

· The SRC attains a sustainable competency-based human resource management capacity based on international standards and best practices.

· The SRC adopts a sustainable internal control and audit system based on international standards and best practices.

· The SRC attains key competencies in tax administration including adoption of streamlined processes for the preparation, payment, and management of tax obligations, tax audits, and appeals based on international standards and best practices.

ii. Improved Tax Administration and Tax Payer Services through ICT Utilization

The contractor shall assist the SRC to sustainably adopt, utilize and manage information and communications technology (ICT) to improve its capacity to administer taxes, deliver tax payer services and increase tax payer compliance in accordance with international standards and best practices.

ii . a) E-filing Expansion of the SRC e-filing system will contribute significantly to lowering the time and costs spent on tax compliance, increase access to and by taxpayers and increase the security of taxpayer information.

Required Result:

· SRC attains the sustainable capacity to refine, expand and manage the e-filing system based on international standards and best practices.

ii. b) Communications

The Taxpayer 3 system is designed to cover a range of communication needs including taxpayer access to their records and Government-to-Taxpayer functions including e-statements, e-notifications, and e-reminders.

Required Results:

· SRC fully implements the Taxpayer 3 system including utilization of all functions required for comprehensive and integrated tax management based on international standards and best practices.

· SRC possesses an ICT infrastructure (and the sustainable capacity to manage and maintain it) for the automated calculation of taxes processing of returns and in accordance with international standards and practices.

· SRC expands the type and availability of electronic services to taxpayers to improve revenue collection, reduce the tax compliance burden on taxpayers and accelerate tax refunds.

· SRC completes and adopts a Data Processing Center Action Plan including a detailed data warehousing design, management and implementation plan.

· SRC enhances its capacity in designing and developing the software specification for the automated data warehousing, processing and archiving functions.

ii. c) Electronic Services for Audit Selection and VAT Refund USAID support has helped the SRC in two major areas: risk-based audit selection and automated VAT reimbursements for exporters. Risk-based taxpayer selection audit software is under development; however, challenges remain for piloting, evaluation and training of personnel.

Similarly, implementation of the automated VAT reimbursement option will require support once the software for this component has been developed as part of Taxpayer 3. The contractor will maintain momentum, and ensure success of these reforms through assisting in testing and launching the respective software, and enhancing the SRC capacity in audit management and VAT refund areas.

Required Results:

· Enhanced and fully operational automated Risk Based Audit Selection System, ensuring a robust and bug-free software system;

· Enhanced and fully operational automated VAT Refund System; and

· Enhanced capacity of SRC in auditing planning, risk management, tax estimations, and detection of tax frauds.

ii. d) Taxpayer Services

Under the TASTAR project, USAID provided assistance for the establishment of taxpayer service centers and developed a concept for establishment of a call center. Two centers are operational and a third will be established.

Required Results:

· SRC designs and adopts a comprehensive, sustainable and actionable taxpayer services plan with realistic implementation dates.

· SRC provides taxpayer services based on international standards and best practices for comprehensiveness, objectivity, consistency, transparency which will result in greater reliance on voluntary compliance.

C.3 (c) Component 3: Improved Discourse on Tax Policy and Administration

The contractor shall collaborate with the MoF, SRC, private sector and civil society organizations to improve the interaction and discourse on tax policy and tax administration issues.

Required Results:

· An improved discourse between MoF, SRC and relevant private-sector and civil society organizations on the guiding principles for improving cooperation and trust on tax policy and tax administration issues.

· Improved SRC capacity to improve the relationship between tax authorities and taxpayers, based on cooperation and mutual trust.

[END OF SECTION C]

SECTION D - PACKAGING AND MARKING

D.1

AIDAR 752.7009 MARKING (JAN 1993)

(a) It is USAID policy that USAID-financed commodities and shipping containers, and program construction sites and other program locations be suitably marked with the USAID emblem. Shipping containers are also to be marked with the last five digits of the USAID financing document number. As a general rule, marking is not required for raw materials shipped in bulk (such as coal, grain, etc.), or for semi-finished products which are not packaged.

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

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

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

D.2

BRANDING STRATEGY FOR TAX REFORM PROJECT

The branding strategy for this Contract as specified in USAID ADS 320.3.2.1 is as follows:

Program Name Tax Reform Project (TRP) Branding:

The branding shall incorporate the message: The assistance is “from the American People”

Desired Level of USAID identity must be prominently displayed in: commodities or equipment; printed, Visibility audio, visual or electronic public communications; studies, reports, publications, web sites, and all promotional and informational products and events.

Organizations to be The branding may acknowledge other organizations deemed as partners of an event or Acknowledged deliverable. The Contractor’s name will not be included.

D.3

BRANDING AND MARKING POLICY

In accordance with provision D.2 above, and where applicable, the Contractor shall comply with the requirements of the policy directives and required procedures outlined in USAID Automated Directive System (ADS) 320.3.2 “Branding and Marking in USAID Direct Contracting” (version from January 8, 2007) at http://www.usaid.gov/policy/ads/300/320.pdf; and USAID “Graphic Standards Manual” available at www.usaid.gov/branding, or any successor branding policy.

[END OF SECTION D]

SECTION E - INSPECTION AND ACCEPTANCE

E.1

The following Contract clauses pertinent to this section are hereby incorporated by reference (by Citation Number, Title, and Date) in accordance with the clause at FAR "52.252-2 CLAUSES INCORPORATED BY REFERENCE" in Section I of this Contract. See FAR 52.252-2 for an internet address (if specified) for electronic access to the full text of a clause.

NUMBER

TITLE

DATE

FEDERAL ACQUISITION REGULATION (48 CFR Chapter 1)

52.246-3

INSPECTION OF

MAY 2001

SUPPLIES--COST-REIMBURSEMENT

52.246-5

INSPECTION OF

APR 1984

SERVICES--COST-REIMBURSEMENT

E.2

INSPECTION AND ACCEPTANCE

USAID inspection and acceptance of services, reports and other required deliverables or outputs shall take place at:

USAID/Armenia

1 American Avenue

Yerevan 0082, Armenia or at any other location where the services are performed and reports and deliverables or outputs are produced or submitted. The COTR listed in Section G has been delegated authority to inspect and accept all services, reports and required deliverables or outputs.

[END OF SECTION E]

SECTION F - DELIVERIES OR PERFORMANCE

F.1

NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE

The following contract clauses pertinent to this section are hereby incorporated by reference (by Citation Number, Title, and Date) in accordance with the clause at FAR "52.252-2 CLAUSES INCORPORATED BY REFERENCE" in Section I of this contract. See FAR 52.252-2 for an internet address (if specified) for electronic access to the full text of a clause.

NUMBER

52.242-15

STOP-WORK ORDER

AUG 1989

ALTERNATE I

(APR 1984)

F.2.

PERIOD OF PERFORMANCE

The period of performance for this contract is four years from the effective date of the Contract.

F.3

PLACE OF PERFORMANCE

Armenia.

F.4

PERFORMANCE STANDARDS

Evaluation of the Contractor's overall performance will be conducted annually and jointly by the COTR and the Contracting Officer, and shall form the basis of the Contractor's permanent performance record with regard to this contract as required by FAR 42.15 and AIDAR 742.15. The following general assessment areas will be included in the basis of the evaluation:

a. Quality of Product or Service

b. Schedule

c. Cost Control

d. Business Relations

e. Management

f. Small Business Utilization

g. Other areas (If applicable. For example: security)

F.5

DELIVERABLES

In addition to other required reports and deliverables in this Contract, the Contractor shall deliver the following:

Performance Monitoring Plan (PMP)

The Contractor shall submit a draft Performance Monitoring Plan (PMP) to the COTR within 60 days of the effective date of this Contract. The PMP will cover the entire period of the contract and shall include, but not necessarily be limited to, the following: (1) the results to be achieved by the project; (2) the indicators to be used to measure achievement of the results; (3) the method of data collection to be used to obtain the indicator data and the frequency at which each will be collected (monthly, quarterly, semi-annually); and (4) targets for each indicator year. USAID will review the draft PMP and provide comments/suggestions within 30 days of receipt. The Contractor shall then submit a final PMP to the USAID COTR for approval not later than 15 days from receipt of USAID’s comments/suggestions.

Annual Work Plan (AWP)

The Contractor will prepare for the COTR’s review and approval an Annual Work Plan (AWP) setting forth in reasonable detail the Contractor’s plans for pursuing activities set forth in this RFP and detailing additional proposed activities that may substantially contribute toward the project goal, as required. The draft AWP covering the first year of the project will be provided in the context of the RFP proposal process, with a final version provided to the COTR no later than four weeks after the start of the project. Draft work plans for subsequent years shall be submitted to the COTR at least 45 days prior to the start of each corresponding project year. As may be necessary due to circumstances beyond the Contractor’s control, and subject to the COTR’s approval, the AWP may be amended and benchmarks added, deleted, or revised from time to time.

The AWP shall include a schedule of activities and tasks planned to be conducted, and the inputs planned to be provided by the Contractor, including a description of planned activities and tasks and an estimated budget – organized by component and, as appropriate, by sub-component. The AWP must be linked to the performance indicators set forth in the PMP.

The Contractor will incorporate any required revisions into a final AWP no later than 15 days after receipt of such comments. The USAID COTR will provide a written approval of the final work plan to the Contractor. Should revised activities, performance indicators or performance targets become necessary, the Contractor shall submit a revised work plan to USAID for approval.

F.6

REPORTS AND DELIVERABLES

All reports and deliverables shall be submitted electronically to the USAID COTR. As feasible, the Contractor shall also develop a web-based information system for public access to information, as well as for internal information management. As necessary, the COTR may direct the Contractor to provide hard copies of reports and any of the deliverables described below.

The three components described in Section C above must work in an integrated fashion to bring about lasting changes in tax policy and administration area aimed at improving enabling environment to enhance the private enterprises’ competitiveness and diversification. The set of deliverables associated with each of the components is presented in the table below.

Action plan for the establishment of a call center in Armenia

Weekly Status Report

Weekly reports (“weeklies”) are intended to be brief highlights of achievements across components. Such reports are meant to be shared with the USG community, as well as other donors, including WB and Armenia counterparts, to highlight progress and milestones achieved.

Monthly Performance Reports

The Contractor shall prepare and submit monthly reports. The monthly reports are intended to be concise reports that summarize progress toward accomplishment of the benchmarks set forth. The monthly reports should: (1) identify implementation issues; (2) give an update of progress made toward fulfillment of the project results, including a report on monthly PMP indicators; (3) contain a discussion of obstacles encountered and possible delays, if any, in fulfillment of activities included in the work plan; (4) set forth proposed changes, if any, to the work plan; and (5) contain a forecast of activities for the month period immediately following the period being reported.

Quarterly Performance Reports

The Contractor shall submit brief quarterly performance reports to the COTR within 30 days of the end of each calendar quarter reflecting results and activities of the preceding quarter. The report shall describe the plan for the reporting period (as set forth in the AWP) and report on progress to date for PMP indicators for that quarter. A description of the specific accomplishments of the Contractor and any STTA should also be provided, including information on all activities, both ongoing and completed, by component. The quarterly reports shall highlight any issues or problems that are affecting the delivery or timing of services provided by the Contractor. These reports should summarize project progress against tasks and benchmarks, including tasks assigned through technical directives and identify implementation issues that may inhibit or enhance contractor performance. In each quarterly report, the Contractor shall include success stories which provide information that demonstrates the impact that the activity/program has had during the reporting period through materials such as stories, quotes and photos. The reports will also discuss interaction with counterparts, and any necessary alterations to the work plan and initial timetable.

Monthly Financial Reporting

The Contractor shall submit to the COTR and to the USAID Financial Management Officer monthly expenditure reports in keeping with 22 CFR 226.52, which will contain a summary page which shows spending by category for the quarter, cumulative spending to date, available funding for the remainder of the activity and any variances from planned expenditures.

Foreign Assistance Framework (“F”) and other Reporting

The Contractor shall provide input to the Mission’s annual Operational Plan (OP), the Mission’s Performance Plan and Report (PPR). The purpose of the PPR, completed each spring, is to capture results achieved by USAID/Armenia during the prior fiscal year and report against targets that were outlined in the OP.

As part of its input for these reports, the Contractor is required to set targets for and report on “standard indicators” under the “F” framework, in addition to “custom” indicators that it develops under its PMP. The “F” indicators are subject to change as the “F” process evolves.

The TRP falls under Program Area 4.1, Macroeconomic Foundation for Growth, and Element 4.1.1 Fiscal Policy.

Short-Term Consultant Reports

Unless otherwise agreed in writing by the COTR, the Contractor will submit within 10 days following departure of a Consultant, a brief written report that describes the purpose of the consultancy, progress made, and any observations to be shared; identifies issues and/or problems encountered; and details expected follow-on activities by resident Contractor staff, as well as actions to be performed by participating counterparts.

Other Project Reports

The Contractor shall prepare and disseminate, as directed in the AWP and by the COTR, other reports and deliverables needed to accomplish the purpose of this contract, such as technical reports prepared by in-country staff and short-term consultants, studies of policy and other issues, products, sectors, markets, technologies, etc.

Closeout Plan

The Contractor shall submit a Demobilization Plan for COTR approval. The Demobilization Plan shall include an illustrative Property Disposition Plan, a plan for the phase-out of in-country operations, a delivery schedule for all reports or other deliverables required under the Contract and a timetable for completing all required actions in the Demobilization Plan, including the submission date of the final Property Disposition Plan to the Contracting Officer.

Final Report

The Contractor shall prepare and submit electronically to the COTR, no later than the estimated end-date of this contract date, a detailed final/completion report which summarizes the accomplishments and impact in relation to the expected results and PMP, and recommendations regarding future and unfinished work. The report will include, but not be limited to:

· A discussion of the results and impacts of the project as compared to baseline conditions and data and an analysis of Armenia’s tax administration and fiscal policy reform overall;

· A description of all institutions and organizations worked with in connection with project components and an evaluation of their strengths and weaknesses;

· A discussion of problems encountered, objectives not fully achieved and lessons learned, and suggest ways to resolve identified constraints;

· Incorporation of any additional/available evaluative data compared to project results and any explanatory background; and

· A final financial report.

The final/completion report shall also contain an index of all reports and information products produced under this contract. The completion report may provide recommendations for follow-on work that might complement the work completed under the contract. The COTR will provide written comments, and the Contracting Officer may likewise add written comments, which the Contractor will address in revising the draft and submitting a final completion report.

F.7

KEY PERSONNEL

A. The key personnel which the Contractor shall furnish for the performance of this Contract are as follows:

1. Chief of Party

2. Component 1 Team Leader

3. Component 2 Team Leader

4. Component 3 Team Leader B. The personnel specified above are considered to be essential to the work being performed hereunder. Prior to replacing any of the specified individuals, the Contractor shall immediately notify both the Contracting Officer and USAID Contracting Officer’s Technical Representative (COTR) reasonably in advance and shall submit written justification (including proposed substitutions) in sufficient detail to permit evaluation of the impact on the program. No replacement of personnel shall be made by the Contractor without the written consent of the Contracting Officer.

C. Unless failure to provide the designated key personnel as specified above is beyond the control, and without the fault or negligence, of the Contractor (e.g., non-acceptance or termination of employment by the individual, illness or death of the individual), failure to provide such key personnel as specified above may be considered nonperformance by the Contractor.

D. If the Contractor, at any time, is unable to comply with these requirements, the Contractor shall simultaneously notify, in writing, the Contracting Officer and the COTR reasonably in advance of the individual's departure or non-acceptance of employment and shall submit written justification and explanation in sufficient detail (including implications for the CPFF total contract) to permit evaluation of the impact on the program.

E. No replacement of key personnel shall be made by the Contractor without the written consent of the Contracting Officer; provided, that the CO may ratify in writing such replacement and such ratification shall constitute the consent of the CO required by this clause.

F. Proposed substitutions must be submitted simultaneously to the CO and the COTR not later than 30 days after the departure of, or non-acceptance of employment by, any of the approved individuals, and the proposed substitute personnel must have at least the same qualifications as the applicable key personnel specified above. Failure to do so may be considered nonperformance by the Contractor.

G. The listing of key personnel may, with the consent of the contracting parties, be amended from time to time during the course of this contract to either add, change, or delete personnel and positions, as appropriate.

H. Availability of proposed key personnel. The contract proposed by this solicitation includes a key personnel clause, and the quality of key personnel proposed will be an evaluation factor. The offeror must include as part of its proposal a statement signed by all individuals proposed as key personnel, confirming their present intention to serve in the stated position and their present availability to serve for the term of the proposed contract.

F.8

AUTHORIZED WORK WEEK

No overtime or premium pay is authorized under the resulting contract. The contractor is authorized up to a 5-day workweek for long-term staff and up to a 6-day workweek for short term, in-country work, with the prior approval of the COTR.

F.9

MONITORING AND EVALUATION

The progress, success and impact of the Contractor’s performance under this contract will be monitored and evaluated as a part of the overall activity results. The USAID Contracting Officer’s Technical Representative (COTR) will conduct periodic performance reviews as required under FAR 42.15 and AIDAR 742-15 to monitor the progress of work and the achievement of results under this contract, based on the targets and the other contract terms and conditions, which shall form the basis of the Contractor’s permanent performance record with regard to this contract.

F.10

752.242-70 PERIODIC PROGRESS REPORTS (OCT 2007)

(a) The contractor shall prepare and submit progress reports as specified in the contract schedule. These reports are separate from the interim and final performance evaluation reports prepared by USAID in accordance with FAR 42.15 and internal Agency procedures, but they may be used by USAID personnel or their authorized representative when evaluating the contractor’s performance.

(b) During any delay in furnishing a progress report required under this contract, the Contracting Officer may withhold from payment an amount not to exceed US$25,000 (or local currency equivalent) or 5 percent of the amount of this contract, whichever is less, until such time as the contractor submits the report or the contracting officer determines that the delay no longer has a…