SOL-111-12-000007.pdf

SOL-111-12-000007

SOLICITATION, OFFER AND AWARD

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

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

ORDER UNDER DPAS (15 CFR 700)

6. REQUISITION/PURCHASE NUMBER

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

NEGOTIATED (RFP)

SEALED BID (IFB)

5. DATE ISSUED

1. THIS CONTRACT IS A RATED RATING PAGE OF PAGES

1 106

C. E-MAIL ADDRESS

EXT.NUMBERAREA CODE

B. TELEPHONE (NO COLLECT CALLS)A. NAME

10. FOR

INFORMATION

CALL:

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

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

SOLICITATION

9. Sealed offers in original and

PART IV - REPRESENTATIONS AND INSTRUCTIONS

OTHER STATEMENTS OF OFFERORS

EVALUATION FACTORS FOR AWARD

INSTRS., CONDS., AND NOTICES TO OFFERORS

REPRESENTATIONS, CERTIFICATIONS AND

LIST OF ATTACHMENTS

CONTRACT CLAUSES

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

I

J

K

L

M SPECIAL CONTRACT REQUIREMENTS

CONTRACT ADMINISTRATION DATA

DELIVERIES OR PERFORMANCE

INSPECTION AND ACCEPTANCE

PACKAGING AND MARKING

DESCRIPTION/SPECS./WORK STATEMENT

SUPPLIES OR SERVICES AND PRICES/COSTS

SOLICITATION/CONTRACT FORM

PART II - CONTRACT CLAUSESPART I - THE SCHEDULE

H

G

F

E

D

C

B

A

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

11. TABLE OF CONTENTS

18. OFFER DATE17. SIGNATURE

SUCH ADDRESS IN SCHEDULE.

IS DIFFERENT FROM ABOVE - ENTER

15C. CHECK IF REMITTANCE ADDRESS

EXT.NUMBERAREA CODE

15B. TELEPHONE NUMBER

(Type or print)AND

ADDRESS

OF

OFFEROR

CODE FACILITY

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

DATEAMENDMENT NO.DATEAMENDMENT NO.

and related documents numbered and dated):

amendments to the SOLICITATION for offerors

(The offeror acknowledges receipt of

14. ACKNOWLEDGEMENT OF AMENDMENTS

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

(See Section I, Clause No. 52.232.8)

13. DISCOUNT FOR PROMPT PAYMENT

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

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

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

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

OFFER (Must be fully completed by offeror)

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

28. AWARD DATE

(Signature of Contracting Officer)

27. UNITED STATES OF AMERICA

25. PAYMENT WILL BE MADE BY

26. NAME OF CONTRACTING OFFICER (Type or print)

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

ITEM

(4 copies unless otherwise specified)

23. SUBMIT INVOICES TO ADDRESS SHOWN IN

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

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

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

AWARD (To be completed by government)

CODE

REQ-111-12-00002608/15/2012

X

1400 LT 10/08/2012

Armen Yeghiazarian +37 66 ayeghiazarian@usaid.gov

410-4944

PAGE(S)

Jonathan Chappell

AUTHORIZED FOR LOCAL REPRODUCTION

Previous edition is unusable

STANDARD FORM 33 (Rev. 9-97)

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

ITEM NO. SUPPLIES/SERVICES QUANTITY UNIT UNIT PRICE AMOUNT

NAME OF OFFEROR OR CONTRACTOR

2 106

CONTINUATION SHEET

REFERENCE NO. OF DOCUMENT BEING CONTINUED PAGE OF

SOL-111-12-000007

(A) (B) (C) (D) (E) (F)

Pension Reform Implementation Program (PRIP) per the Scope of Work as presented in Section C.

SB Plan: YES

OPTIONAL FORM 336 (4-86)

Sponsored by GSA

FAR (48 CFR) 53.110

NSN 7540-01-152-8067

ISSUANCE DATE: August 15, 2012 QUESTIONS DEADLINE: August 30, 2012

CLOSING TIME AND DATE: 14:00PM (Yerevan Time) October 8, 2012

REQUEST FOR PROPOSALS SOL-111-12-000007, USAID/ARMENIA PENSION REFORM

IMPLEMENTATION PROGRAM (PRIP)

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 $3.5-$4 million for the implementation of this activity. Cost proposals will be evaluated as a part of a Best Value determination for Contract award. 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 Yeghiazarian, 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.

Yeghiazarian can be reached via e-mail at ayeghiazarian@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.

Yeghiazarian 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, Jonathan Chappell Regional Contracting Officer USAID/Armenia

Table of Contents

PART I - THE SCHEDULE ........................................................................................................................... B-1

SECTION B - SUPPLIES OR SERVICES AND PRICE/COSTS .............................................................. B-1

B.1 PURPOSE ........................................................................................................................................... B-1 B.2 CONTRACT TYPE ........................................................................................................................... B-1 B.3 ESTIMATED COST, FIXED FEE, AND OBLIGATED AMOUNT ............................................ B-1 B.4 LINE ITEMS ...................................................................................................................................... B-1 B.5 INDIRECT COSTS ............................................................................................................................ B-1 B.6 COSTS REIMBURSABLE ............................................................................................................... B-2 B.7 FIXED FEE – FAR 52.216-8 (JUN 2011) ......................................................................................... B-2

SECTION C - DESCRIPTION/SPECIFICATIONS/STATEMENT OF WORK .................................... C-1

C.1 EXECUTIVE SUMMARY ................................................................................................................ C-1 C.2 BACKGROUND ................................................................................................................................ C-1

C.3 RELATIONSHIP TO USG FOREIGN POLICY GOALS AND DEVELOPMENT

OBJECTIVES .................................................................................................................................... C-3 C.4 DETAILED WORK REQUIREMENTS ......................................................................................... C-4

SECTION D - PACKAGING AND MARKING .......................................................................................... D-1

D.1 AIDAR 752.7009 MARKING (JAN 1993) ....................................................................................... D-1 D.2 BRANDING STRATEGY ................................................................................................................. D-1 D.3 BRANDING AND MARKING POLICY ......................................................................................... D-1

SECTION E - INSPECTION AND ACCEPTANCE ................................................................................... E-1

E.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE ............... E-1 E.2 INSPECTION AND ACCEPTANCE ............................................................................................... E-1

SECTION F - DELIVERIES OR PERFORMANCE .................................................................................. F-1

F.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE ................F-1 F.2 PERIOD OF PERFORMANCE ........................................................................................................F-1 F.3 PLACE OF PERFORMANCE ..........................................................................................................F-1 F.4 PERFORMANCE STANDARDS ......................................................................................................F-1 F.5 DELIVERABLES ...............................................................................................................................F-1 F.6 REPORTS ............................................................................................................................................F-3 F.7 KEY PERSONNEL .............................................................................................................................F-5 F.8 AUTHORIZED WORK WEEK ........................................................................................................F-6 F.9 MONITORING AND EVALUATION ..............................................................................................F-6 F.10 AIDAR 752.242-70 PERIODIC PROGRESS REPORTS (OCT 2007) ..........................................F-6

F.11 SUBMISSION REQUIREMENTS FOR DEVELOPMENT EXPERIENCE DOCUMENTS

(JAN 2004) ..........................................................................................................................................F-7 F.12 ACCRUALS ........................................................................................................................................F-9

SECTION G - CONTRACT ADMINISTRATION DATA ......................................................................... G-1

G.1 AIDAR 752.7003 DOCUMENTATION FOR PAYMENT (NOV 1998) ....................................... G-1 G.2 ADMINISTRATIVE CONTRACTING OFFICE .......................................................................... G-2 G.3 CONTRACTING OFFICER’S REPRESENTATIVE (COR) ....................................................... G-2 G.4 TECHNICAL DIRECTIONS/RELATIONSHIP WITH USAID .................................................. G-2 G.5 PAYING OFFICE .............................................................................................................................. G-4

SECTION H - SPECIAL CONTRACT REQUIREMENTS ...................................................................... H-1

H.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE ............... H-1 H.2 AIDAR 752.7004 EMERGENCY LOCATOR INFORMATION (JUL 1997) ............................. H-1 H.3 AIDAR 752.7031 LEAVE AND HOLIDAYS (OCT 1989) ............................................................. H-1

H.4 AIDAR 752.209-71 ORGANIZATIONAL CONFLICTS OF INTEREST DISCOVERED

AFTER AWARD (JUN 1993) ........................................................................................................... H-3

H.5 AIDAR 752.7032 INTERNATIONAL TRAVEL APPROVAL AND NOTIFICATION

REQUIREMENTS (JAN 1990) ........................................................................................................ H-3

H.6 AIDAR 752.225-70 SOURCE AND NATIONALITY REQUIREMENTS (FEB 2012) .............. H-4 H.7 AIDAR 752.228-70 MEDICAL EVACUATION (MEDEVAC) SERVICES (July 2007) ............ H-4 H.8 INSURANCE AND SERVICES ....................................................................................................... H-5 H.9 AUTHORIZED GEOGRAPHIC CODE ......................................................................................... H-5

H.10 NONEXPENDABLE PROPERTY PURCHASES AND INFORMATION TECHNOLOGY

RESOURCES ..................................................................................................................................... H-5 H.11 LOGISTIC SUPPORT ...................................................................................................................... H-6 H.12 LANGUAGE REQUIREMENTS ..................................................................................................... H-6

H.13 SUBCONTRACTING PLAN AND THE SF 294 – SUBCONTRACTING REPORT FOR

INDIVIDUAL CONTRACTS AND SF 295 – SUMMARY CONTRACTING REPORT ........... H-6

H.14 EXECUTIVE ORDER ON TERRORISM FINANCING (FEB 2002) .......................................... H-6 H.15 REPORTING OF FOREIGN TAXES ............................................................................................. H-6 H.16 USAID DISABILITY POLICY - ACQUISITION (DECEMBER 2004) ...................................... H-7 H.17 CONSENT TO SUBCONTRACTS .................................................................................................. H-8 H.18 ENVIRONMENTAL COMPLIANCE ............................................................................................. H-8 H.19 PROHIBITION AGAINST DISCRIMINATION (OCT 2011) ...................................................... H-9 H.20 CONFIDENTIALITY AND OWNERSHIP OF INTELLECTUAL PROPERTY ...................... H-9 H.21 GOVERNMENT FURNISHED FACILITIES OR PROPERTY .................................................. H-9

PART II - CONTRACT CLAUSES ............................................................................................................... I-1

SECTION I - CONTRACT CLAUSES .......................................................................................................... I-1

I.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE ................ I-1

I.2 FAR 52.203-8 CANCEL, RESCIND, RECOVER FUNDS ILLEGAL/IMPROPER

ACTIVITY (JAN 1997) ...................................................................................................................... I-4

I.3 FAR 52.209-9 UPDATES OF PUBLICLY AVAILABLE INFORMATION REGARDING

RESPONSIBILITY MATTERS (JAN 2011) .................................................................................... I-4 I.4 FAR 52.217-8 OPTION TO EXTEND SERVICES (Nov 1999) ...................................................... I-5

I.5 FAR 52.229-8 TAXES--FOREIGN COST-REIMBURSEMENT CONTRACTS (MAR 1990) .. I-5

I.6 FAR 52.243-7 NOTIFICATION OF CHANGES (APR 1984) ........................................................ I-5 I.7 FAR 52.244-2 SUBCONTRACTS. (OCT 2010) ............................................................................... I-7 I.8 FAR 52.252-2 CLAUSES INCORPORATED BY REFERENCE (FEB 1998) .............................. I-9 I.9 AIDAR 752.219-70 USAID MENTOR-PROTÉGÉ PROGRAM (JULY 2007) .......................... I-10 I.10 AIDAR 752.219-71 MENTOR REQUIREMENTS AND EVALUATION (JULY 2007) ........... I-10 I.11 AIDAR 752.7101 VOLUNTARY POPULATION PLANNING ACTIVITIES (JUNE 2008) .... I-10 I.12 COMMUNICATIONS PRODUCTS (OCT 1994).......................................................................... I-11 I.13 INTERNATIONAL TRAVEL APPROVAL .................................................................................. I-11

PART III - LIST OF DOCUMENTS, EXHIBITS AND OTHER ATTACHMENTS ............................... J-1

SECTION J - LIST OF ATTACHMENTS .................................................................................................... J-1

PART IV - REPRESENTATIONS AND INSTRUCTIONS ..................................................................... K-1

SECTION K - REPRESENTATIONS, CERTIFICATIONS, AND OTHER STATEMENTS OF

BIDDERS ............................................................................................................................................... K-1

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

K.2 FAR 52.204-3 TAXPAYER IDENTIFICATION (OCT 1998) ....................................................... K-1 K.3 FAR 52.204-8 ANNUAL REPRESENTATIONS AND CERTIFICATIONS (MAY 2012) ........ K-2

K.4 FAR 52.209-5 CERTIFICATION REGARDING RESPONSIBILITY MATTERS

(APR 2010) .......................................................................................................................................... K-5

K.5 FAR 52.209-7 INFORMATION REGARDING RESPONSIBILITY MATTERS (FEB 2012) .. K-7

K.6 FAR 52.209-9 UPDATES OF PUBLICLY AVAILABLE INFORMATION REGARDING

RESPONSIBILITY MATTERS (FEB 2012) ................................................................................... K-8

K.7 FAR 52.225-2 Buy American Act - Certificate. (FEB 2009) ........................................................... K-9 K.8 FAR 52.230-1 Cost Accounting Standards Notices and Certification. (MAY 2012) .................... K-9

K.9 FAR 52.230-7 PROPOSAL DISCLOSURE--COST ACCOUNTING PRACTICE CHANGES

(APR 2005) ....................................................................................................................................... K-12 K.10 INSURANCE - IMMUNITY FROM TORT LIABILITY ........................................................... K-12 K.11 SIGNATURE ........................................................................................................................................ K-12

SECTION L - INSTRUCTIONS, CONDITIONS, AND NOTICES TO OFFERORS ............................. L-1

L.1 NOTICE LISTING SOLICITATION PROVISIONS INCORPORATED BY REFERENCE .. L-1

L.2 FAR 52.215-1 INSTRUCTIONS TO OFFERORS-COMPETITIVE ACQUISITION

(JAN 2004) .......................................................................................................................................... L-1 L.3 FAR 52.216-1 TYPE OF CONTRACT (APR 1984) ....................................................................... L-5 L.4 FAR 52.233-2 SERVICE OF PROTEST (SEP 2006) ..................................................................... L-5

L.5 FAR 52.252-1 SOLICITATION PROVISIONS INCORPORATED BY REFERENCE (FEB

1998) .................................................................................................................................................... L-5 L.6 GENERAL INSTRUCTIONS TO OFFERORS ............................................................................. L-5 L.7 DELIVERY INSTRUCTIONS ......................................................................................................... L-6 L.8 RESPONSIVENESS TO RFP ........................................................................................................... L-8 L.9 OFFEROR’S RESPONSIBILITIES ................................................................................................ L-8 L.10 SUBMISSION OF ALTERNATE PROPOSALS ........................................................................... L-9 L.11 UNNECESSARILY ELABORATE PROPOSALS ......................................................................... L-9 L.12 INSTRUCTIONS FOR THE PREPARATION OF THE TECHNICAL PROPOSAL .............. L-9

L.13 INSTRUCTIONS FOR THE PREPARATION OF THE BRANDING IMPLEMENTATION

AND MARKING PLANS ................................................................................................................ L-15

L.14 INSTRUCTIONS FOR THE PREPARATION OF THE COST/BUSINESS PROPOSAL

(CPFF) ............................................................................................................................................... L-16

SECTION M - EVALUATION FACTORS FOR AWARD ....................................................................... M-1

M.1 OVERVIEW ...................................................................................................................................... M-1 M.2 CONTRACT AWARD – BEST VALUE ........................................................................................ M-1 M.3 TECHNICAL EVALUATION CRITERIA .................................................................................... M-1 M.4 COST EVALUATION CRITERIA ................................................................................................. M-3 M.5 SOURCE SELECTION .................................................................................................................... M-4 M.6 CONTRACTING WITH SMALL BUSINESS CONCERNS ....................................................... M-4

M.7 CONTRACTING WITH U.S SMALL BUSINESS CONCERNS IN THE MENTOR-

PROTÉGÉ PROGRAM ................................................................................................................... M-4

M.8 DETERMINATION OF THE COMPETITIVE RANGE AND CONTRACT AWARD ........... M-4

SOL-111-12-000007 SECTION B

B-1

PART I - THE SCHEDULE

SECTION B - SUPPLIES OR SERVICES AND PRICE/COSTS

B.1 PURPOSE

The purpose of the Pension Reform Implementation Program (PRIP) is to provide technical assistance to the Government of Armenia (GOAM) to implement the new pension system to make it fiscally sound and sustainable. It will also provide targeted support to the GOAM as it designs and develops an Integrated Social Services system (ISS), where there are clear links to the implementation of pension reform.

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

COST CATEGORY USD

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

SOL-111-12-000007 SECTION B

B-2

TBD 1/ 1/ 1/

1/Base of Application:

Type of Rate:

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.

SOL-111-12-000007 SECTION C

C-1

SECTION C - DESCRIPTION/SPECIFICATIONS/STATEMENT OF WORK

C.1 EXECUTIVE SUMMARY

The Government of Armenia (GOAM) with USAID’s technical support has been consistent at working to make the country’s social protection system more efficient and financially stable. Its poverty reduction program embraces a new multi-pillar pension system and an integrated social services delivery system. However, limited coverage, weak compliance, and weak institutional and human capacity remain major impediments to implementing the new pension system, which was overhauled with a package of pension laws adopted in December 2010, improving the social protection landscape. Ultimately, the implementation of the new pension system and introduction of a more efficient and effective social services delivery system are necessary elements for achieving economic growth, social stability, and broad-based social inclusiveness in Armenia.

The objective of the USAID Pension Reform Implementation Project (PRIP) is to help the GOAM build its human and institutional competence-based capacity to ensure the implementation of a new pension system. This project supports the larger goal of assisting the GOAM provide old-age income security in an environment that is fiscally sound and sustainable according to international standards and best practices. It also supports the country’s strategic plan to reduce poverty, strengthen social services institutions, and empower Armenian citizens to exercise their social protection rights and responsibilities.

To achieve this, the PRIP will provide technical assistance and support for human and institutional capacity building to ensure that the pension system as a part of Armenia’s integrated social services system is well-managed, regulated, and supervised according to international standards and best practices. The activity will also promote increased civic engagement to ensure that users and beneficiaries of the social services system receive the care and services needed in a timely, efficient, and effective manner.

C.2 BACKGROUND

This project responds to a direct request from the Minister of Labor and Social Issues (MLSI) for support to implement social protection, labor markets and pension reforms. Statistics from 2010 show that approximately 35.8 percent of Armenia’s population live in poverty (up from 27 percent in 2008). Those age 65 or older comprise the largest percentage of the poor population, about 12 percent. As a result, the GOAM prioritized pension reform and social protection efficiency and strengthening for national development.1 It seeks to re-shape the country’s pension system to reduce old-age poverty and to enable the Armenian pension system to provide adequate retirement income for its elderly within an environment that is fiscally sound and fiscally sustainable.

A key provision of the pension reform is to replace the current income tax and social contribution tax with a new unified tax for increased contribution collections and administrative efficiency and transparency. Starting from 2013, income tax and social security payments will be unified with a combined personified record keeping system. To perform the services planned under the new pension system, pension participants must be registered, and thus, the need for a personified recordkeeping system. .

The Pillar II, funded mandatory private pensions, will be introduced in 2014. This addition to the pension system will require both recordkeeping and pension asset management systems. The Central

1Social Snapshot and Poverty in Armenia, 2011, National Statistical Service of Armenia

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Depository of Armenia, a subsidiary of NASDAQ OMX Armenia, will provide the central registry functions for the Pillar II. The pension assets will be managed by newly established pension fund asset management entities as well as experienced foreign asset managers.

Pension System Overview and Proposed Reform

The cornerstone of the GOAM’s old-age poverty reduction program is its new multi-pillar pension system. With USAID support, the GOAM finalized and adopted its Pension Reform Program that recommended a complete overhaul of Armenia’s inadequate and inefficient public pension system. In December 2010, the National Assembly of the Republic of Armenia approved a package of pension reform laws (individual recordkeeping, public pay-as-you-go pensions, and mandatory retirement savings accounts). The pension reform law provides for a funded pension pillar to be introduced in 2014. The unified tax system will be introduced in 2013 and is the primary tool for collecting the pension contributions under the new pensions system.

Armenia’s current social insurance and social assistance system provides an old-age pension and a social pension. Generally, the old-age pension, which is available at age 63 for men and women and at least 25 years of service, provides a base pension of 8,000 drams per months, plus a formula-based bonus pension. The social pension, which is available to): men and women age 65 or older with less than 5 years of covered employment, provides a benefit of 8,000 drams a month. Both the old-age and social pension benefits are adjusted on an ad hoc basis according to available resources.

The dependency ratio, the ratio of contributors to pensioners, is almost 1:1. The average pension benefits is about $70 a month, which is less than the poverty level of about $100 a month and far below the average monthly wage of $300. Even with pension benefits below the poverty level, the pension system is financially strained. About 72 percent of all social program benefits are paid to pensioners, leaving very little for other programs such as unemployment and disability benefits.

Armenia collects about $276 million in social program payments (payroll taxes) and pays out $388 million in just pension benefits alone. The $110 million shortfall is an ongoing drain on the general budget and significantly crowds out many other needed social programs and services.2 The structure of the current pay-as-you-go (PAYG) pension scheme compounds its financial instability. Instead of linking pension benefits to contributions and years of service, benefits are based on years of service only. While payroll contributions vary according to one’s salary, benefits are basically the same for everyone, creating a strong incentive to under report salaries or evade contributions. Additionally, privilege pensions, which provide benefits to some as young as age 53, pay some pensioners more than those who have earned more over their lifetime and have paid more in contributions into the system for more years. The large shadow economy in Armenia, estimated as high as 40% of GDP, and payroll tax noncompliance further strains the pension system’s financial picture.

For a system of this magnitude, based on international pension reform experience (Hungary, Poland, and Kazakhstan, for example), the successful implementation of Armenia’s multi-pillar pension system demands modernizing several administrative and operational systems in a number of pension institutions and related entities, which, if it is to be done correctly, will require the assistance of donors such as USAID.

Social Services and Assistance Overview

The social services in Armenia are almost totally centralized leaving local governments with little authority to respond to those in their communities who are vulnerable and most in need. For great

2 Pension figures provided by the PALM team November 29, 2011

C-3 efficiency in the delivery of social services the GOAM has begun to invest in an integrated social services system, one that combines the myriad of social services operational units, departments and services that operate separately. An ISS is expected to increase efficiency, improve the fiscal and administrative burdens of the system, and develop a customer service aspect in the system. The PRIP will assist Armenia develop a strategic plan for an ISS system, of which the new pension system will be a part of.

C.3 RELATIONSHIP TO USG FOREIGN POLICY GOALS AND DEVELOPMENT

OBJECTIVES

A. Objective

This project will assist the Government of Armenia (GOAM) implement a new four-pillar pension system and, to a limited and targeted extent, assist the GOAM develop a strategic plan or an integrated social services system based on international standards and best practices. This project will provide technical assistance to the GOAM to help it implement a new pension system that promotes old-age income security in an environment that is fiscally sound and sustainable.

The project will assist the Government of Armenia improve the quality of pension benefits and social services for those most in need by providing a better overall social protection system, which includes pensions under the new pension reform system, one that is integrated, well-managed, fiscally sound, and delivers benefits and services according to international standards and best practices. USAID plans a 4-year cost plus fixed fee contract to implement this program.

The Offeror must take advantage of opportunities for collaboration, synergy and linkages among USAID’s and other donors’ projects and activities.

B. Linkages with the USAID Mission Operation Plan and Strategic Objectives and Host

Country’s Poverty Reduction Strategy

The project’s pension reform implementation and integrated social services technical assistance activities contribute to the USAID Objective Investing in People (IIP), Program Area “Social Services and Protection for Especially Vulnerable Populations” and are consistent with the USG Country Assistance Strategy for 2009-2013, Priority Goal 5: Enhancing Armenia's health and human services through innovative institution building to assist the Armenian people.

This project also contributes to:

HSRO Assistance Strategy Results Framework 2010-2013 Improved Effectiveness of Health and Social Protection Services

O Sub IR 1.2 Fiscally Sustainable and Equitable Pension System Implemented and o Sub IR 3.1 Citizens Better Informed of their Health and Social Protection Rights and Responsibilities

In October 2008, the GOAM approved the Sustainable Development Program (SDP), Armenia’s second Poverty Reduction Strategy Paper (PRSP-2). The SDP has three key goals covering the period 2009–2021 (with specific medium term targets for 2009–2015): reducing poverty to 10.1 percent by 2015, including the reduction of extreme poverty to 1.6 percent by 2015; ensuring human development; and deepening economic growth and accelerating development of lagging regions.

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C.4 DETAILED WORK REQUIREMENTS

The Project will assist the GOAM, the private sector, and civil society improve pensions and social services policy, benefits, and delivery systems, particularly for the most vulnerable populations, by promoting efficiency, timeliness, and fiscal sustainability in keeping with international standards and best practices. Particular emphasis to European Union rules, regulations, and standards must be incorporated into to this project, as appropriate. The project must build on USAID/Armenia’s PALM and SPSS activities in close collaboration with USAID’s past, current, and relevant tax reform projects as well as other donors’ related activities (the World Bank, European Union (EU), International Monetary Fund, United Nations (UNDP, UNICEF), Germany’s GTZ).

The project results are grouped under two result areas. The technical assistance will be provided primarily to the MLSA and Pension System Awareness Center Foundation and, where appropriate, other agencies, units, and entities responsible for implementing the pension reform must be assisted.

Result Area 1: Institutional and human capacity of MLSA and relevant institutions and organizations involved in the pension system reform increased.

Strengthening the institutional and human capacity of the public and private agencies, institutions, and organizations is essential for the development of a well-integrated (in keeping with the planned Integrated Social Services), financially sound, and efficient pension system consisting of several pension schemes – social assistance to the elderly poor, a mandatory publicly managed pension scheme, a mandatory privately managed pension scheme, and voluntary pension schemes.

The project will assist the MLSA and relevant agencies and entities, such as State Social Security Service (SSSS) and the Pension System Awareness Center Foundation (PSACF), attain the strategic and human resource management competency-based capacity to develop, implement and manage pension policy, regulation, and administration efficiently and effectively in accordance with international standards and best practices.

Major Outputs and Activities:

• Assist MLSA to develop a gap analysis of its staff’s current skills and abilities and the skills and abilities needed to manage a highly efficient and effective new four-pillar pension system according to international standards and best practices.

• Development and implementation of competency-based training programs to improve the skills of the MLSA’s and relevant entities’ personnel in, including but limited to:(a) pension management and oversight; (b) pension policy and regulation development; (c) pension financial projections and modeling; (d) pension enforcement, and (e) pension system integrity and soundness.

• Support GOAM to develop, adopt and utilize policies and procedures for pension administration management and oversight in conjunction with the model of the Integrated Social Services system and to identify and draft/amend the laws and regulations needed to establish the system of the Integrated Social Services (more than 60 regulations are needed to harmonize and clarify the package of pension reform laws passed in 2010.).

• Provide technical assistance to MLSA to enact laws and regulations to advance the implementation of the new pension system as a part of the Integrated Social Services.

• Improve the pension system for the cohort of participants that are 41 and 60 years of age.

• Assist PSACF by building their capacity to provide a large-scale broad-based public information campaign on the pension reform featuring town hall meetings, brochures, television and radio programs, interviews with local and leading international and regional pension experts, a pension reform telephone hotline, a website and the social media tools.

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Expected Results:

• The human and institutional capacity of MLSA to develop a legislative and regulatory pension reform policy strategic plan for a sustainable pension system in conjunction with the Integrated Social Services is strengthened and the legal framework to advance the new pension system is finalized.

• The Human and institutional capacity of MLSA to monitor and respond timely to the economic and fiscal implications of the reform, such as linking PAYG contributions to benefits for greater pension system financial stability built.

• The MLSA has the competency-based capacity to develop and implement a strategic plan for launching the new four-pillar pension system on or about 2014 in accordance with international standards and best practices.

• The human and institutional capacity of the GOAM to model the budgetary and fiscal implications of the new pension system is strengthened.

• RA Law on Social Assistance and other relevant laws on Integrated Social Services amended and regulations adopted to include the pension system as an essential component.

• The MLSA, PSACF and relevant entities are capable of ensuring public awareness and public knowledge, transparency, accuracy, integrity and reliability within the pension system.

• Employee and employer participation in the new pension system is increased.

Result Area 2: Information system integrity and safeguards for implementation of the pension reform as part of the new Integrated Social Services system advanced.

Appropriate information management, data exchange, oversight, examination, and monitoring of the social protection and other relevant databases are essential to ensure the reliability of the information systems to make the pension and ISS systems fully functional.

The project will assist the MLSA and relevant agencies and entities, such as Nork Information- Analytical Center and the SSSS attain the strategic and human resource management competency-based capacity to develop, improve and manage databases, information systems efficiently and effectively in accordance with international standards and best practices.

Major Outputs and Activities:

• Assist MLSA and Nork Information-Analytical Center to enhance the social protection corporate information and communication network.

• Provide technical assistance to MLSA, Nork Information-Analytical Center and other relevant entities to modernize the information systems to establish complete automation of business processes and data exchange between different databases needed for pension system efficient functioning in the framework of Integrated Social Services.

• Assist the GOAM to improve citizens’ and residents’ access to social services (including pensions) by advancing Management Information Systems to make it possible to use the social security cards (numbers) in a full range.

• Support MLSA and Nork Information-Analytical Center to develop e-application, e-notification, e-update, e-appeal and other similar electronic tools/systems for the pensions and other social services (an integrated approach).

• Conduct study tours and trainings to enhance MLSA’s and Nork Information-Analytical Centers and other relevant entities staff capacity in and knowledge about ICT as it relates to social protection systems.

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Expected Results:

• Information sharing among the organizations improved by creating systems for sharing databases to simplify application and verification processes.

• MLSA’s pensions and ISS systems information systems and database business operations efficiency gap analysis is developed.

• MLSA’s and Nork Information-Analytical Center’s social protection corporate information and communication network is advanced to reach a broader cross section of users.

• The new pension system is incorporated into the framework of Integrated Social Services.

• The administration of social benefits programs improved by streamlining administrative procedures.

• The need for pensioners and other social services users to visit multiple offices for access to pensions and other social programs eliminated.

• The access to the social services advanced, because of application of suitable, reliable, and efficient ICT and MI systems.

• MLSA’s, Nork Information-Analytical Centers and other relevant entities’ staff receive social protection systems ICT training, including study tours.

Gender

Gender integration is a particular focus of this project. Inadequacy of pensions has a gender dimension that mirrors the gender differences in the labor market. Both men and women will be included to the greatest extent possible in all aspects of this program’s implementation, including participation in policy dialogue, working groups, training and other activities. Throughout the implementation of the project the gender equity issues will be considered. The project will collect, analyze gender disaggregated data, and undertake actions that will address any gender-related issues identified. The project will carry out directed interventions to assure that the capacity of relevant state agencies and PSACF is enhanced and is sufficient to address this issue.

SOL-111-12-000007 SECTION D

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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 FINANCE FOR ECONOMIC DEVELOPMENT

PROGRAM

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

Program Name:

Finance for Economic Development (FED)

Branding:

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

Desired Level of Visibility:

USAID identity must be prominently displayed on: structures, commodities, and equipment; printed, audio, visual or electronic public communications; studies, reports, publications, web sites, and all promotional and informational products;

and events.

Organizations to be Acknowledged:

The branding may acknowledge other organizations deemed as partners of an event or 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.

SOL-111-12-000007 SECTION E

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SECTION E - INSPECTION AND ACCEPTANCE

E.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE

The following Contract clauses pertinent to this section are hereby incorporated by reference (by Citation Number, Title, and Date) in accordance with the clause at FAR "52.252-2 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)

52.246-5 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 COR listed in Section G has been delegated authority to inspect and accept all services, reports and required deliverables or outputs.

SOL-111-12-000007 SECTION F

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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.

FEDERAL ACQUISITION REGULATION (48 CFR Chapter 1)

NUMBER TITLE DATE

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 starting from the effective date on the cover of the Contract.

F.3 PLACE OF PERFORMANCE

Performance of this contract will be in Armenia.

F.4 PERFORMANCE STANDARDS

Evaluation of the Contractor's overall performance will be conducted annually and jointly by the COR 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) Although an illustrative Performance Monitoring Plan (PMP) will be submitted as part of the technical proposal, the Contractor must submit a fully developed draft PMP to the COR within 60

F-2 days of the effective date of this Contract. The PMP will cover the entire period of the contract and must include, but not…