SOL-111-14-000001.pdf

SOLICITATION/CON TRACT 1. THIS CONTRACT IS A RATED RATING PAGE

OF

PAGES

& 2713 15 21 22BIDDER /OFFEROR TO COMPLETE BLOCK S 11

ORDER UNDER DPAS (15 CFR 700), , . ,.

1 3

2. CONTRACT NO. 3. AWARD/ b. SOLICITATION NUMBER 5 SOLICITATION TYPE 6. SOLICITATION

EFFECTIVE DATE SOL-111-14-000001 SEALED BIDS

x NEGOTIATED ISSUE DATE

(IFB)

(RFP) 10/23,2013

7. ISSUED BY

CODE ARMENIA

8. THIS ACQUISITION IS

UNRESTRICTED OR

SET ASIDE:

% FOR

USAID Armenia

1 American Ave

Yerevan 0082, Armenia

IN WO SBSS )E (SMALL BUSINESS

WOMEN-OWNED SMALL BUS

HUBZONE SMALL

ELIGIBLE UNDER THE WOSB PROGRA

BUSINESS

EDWOSB

SERVICE-DISABLED VETERAN-

OWNED SMALL BUSINESS

NAICS:

5 4 1 618

NO COLLECT CALLS

8(A)

SIZE STANDARD $14.0

9. (AGENCY USE)

10. ITEMS TO BE PURCHASED (BRIEF DESCRIPTION)

SUPPLIES

SERVICES

12. ADMINISTERED BY

CODE

11, IF OFFER IS ACCEPTED BY THE GOVERNMENT WITHIN

CALENDAR DAYS (60 CALENDAR DAYS UNLESS OFFEROR INSERTS A DIFFERENT

PERIOD) FROM THE DATE SET FORTH IN BLOCK 9 ABOVE, THE CONTRACTOR

AGREES TO HOLD ITS OFFERED PRICES FIRM FOR THE ITEMS SOLICITED

HEREIN AND TO ACCEPT ANY RESULTING CONTRACT SUBJECT TO THE TERMS

AND CONDITIONS STATED HEREIN.

13. CONTRACTOR

FACILITY 14 PAYMENT WILL BE MADE BY

OFFEROR

TELEPHONE NO.

DUNS NO.

CHECK IF REMITTANCE IS DIFFERENT AND PUT SUCH ADDRESS IN OFFER SUBMIT INVOICES TO ADDRESS SHOWN IN BLOCK:

15. PROMPT PAYMENT DISCOUNT 16. AUTHORITY FOR USING OTHER

10 U.S.C. 2304

41 U.SC 253

THAN FULL AND OPEN COMPETITION

17. 18. 19. 20. 21. 22.

ITEM NO. SCHEDULE OF SUPPLIES /SERVICES QUANTITY UNIT UNIT PRICE AMOUNT

PFMRAF Stage

II Assessment of RA Gov Ministries:

conduct Risk Assessment of five RA Minis tries in accordance with PFMRAF guidance and the SOW under this

RFP.

Competition is limited to local firms.

Delivery Location Code:

USAID/ARMENIA

USAID/Yerevan

Continued

23. ACCOUNTING AND APPROPRIATION DATA

24. TOTAL AWARD AMOUNT

(FOR GOVERNMENT USE ONLY)

25. CONTRACTOR IS REQUIRED TO SIGN THIS DOCUMENT AND RETURN

COPIES TO 26. AWARD OF CONTRACT YOUR OFFER ON SOLICITATION

ISSUING OFFICE. CONTRACTOR AGREES TO FURNISH AND DELIVER ALL ITEMS SET NUMBER SHOWN IN BLOCK 4 INCLUDING ANY ADDITIONS x FORTH OR OTHERWISE IDENTIFIED ABOVE AND ON ANY CONTINUATION SHEETS OR CHANGES WHICH ARE SET FORTH HEREIN, IS

SUBJECT TO THE TERMS AND CONDITIONS SPECIFIED HEREIN ACCEPTED AS TO ITEMS:

27. SIGNATURE OF OFFEROR /CONTACTOR 28. U

STATE-& )F- MERI

T R

ACTING OFFICER)

NAME AND TITLE OF SIGNER (TYPE OR PRINT) DATE SIGNED NA E

ON RA

ING

FFICER DATE SIGNED

Elizabeth Colarik

AUTHORIZED FOR LOCAL REPRODUCTION

STANDARD FORM 1447 REV 212012)

PREVIOUS EDITION NOT USABLE

Prescribed by GSA - FAR (48 CFR) 53 214(d)

PAGE 2 OF

NO RESPONSE FOR REASONS CHECKED

CANNOT COMPLY WITH SPECIFICATIONS CANNOT MEET DELIVERY REQUIREMENT

UNABLE TO IDENTIFY THE ITEM(S) DO NOT REGULARLY MANUFACTURE OR SELL THE TYPE OF ITEMS INVOLVED

OTHER (Specify)

WE DO WE DO NOT, DESIRE TO BE RETAINED ON THE MAILING LIST FOR FUTURE PROCUREMENT OF THE TYPE OF ITEMS INVOLVED

NAME AND ADDRESS OF FIRM (Include ZIP Code) SIGNATURE

TYPE OR PRINT NAME AND TITLE OF SIGNER

FROM AFFIX

STAMP

HERE

TO

ARMENIA

USAID Armenia

1 American Ave

SOL-111-14-000001

SOLICITATION NO

DATE AND LOCAL TIME

STANDARD FORM 1447 (REV 2/2012) BACK

CONTINUATION SHEET

REFERENCE NO. OF DOCUMENT BEING CONTINUED

SOL-111-14-000001

PAGE

OF

I

NAME OF OFFEROR OR CONTRACTOR

(A)

ITEM NO.

(B)

SUPPLIES /SERVICES

(C)

QUANTITY

(D)

UNIT

(E)

UNIT PRICE

(F)

AMOUNT

1 American Avenue

0001 PFMRAF Stage 2 Assessment

NSN 7540-01-218-4386

STANDARD FORM 1447 (REV 2/2012)

Prescribed by GSA - FAR (48 CFR) 53 214(0)

RFP No.: SOL-111-14-000001

Issuance: Date: October 23, 2013 Questions Due Date: October 28, 2013, 12:00 PM Yerevan local time Closing Date &Time: November 12, 2013, 12:00 PM Yerevan local time

SUBJECT: Request For Proposals (RFP) No.: SOL-111-14-000001, USAID/Armenia Stage 2 Public Financial Management Risk Assessment Framework PFMRAF II

The United States Government, represented by the U.S. Agency for International Development (USA1D), is seeking proposals from qualified local organizations interested in providing services as described in the attached solicitation. The competition under this solicitation is limited to local organizations in accordance with Section 7077 (a) "Local Competition Authority of Consolidated Appropriations Act, 2012 (P.L. 112-74)."

To be considered eligible to apply under this RFP, the local organization must satisfy all conditions below:

Be organized under Armenian laws;

Have its principal place of business in the Armenia;

Be majority owned by individuals who are Armenian citizens or lawful permanent residents of the Armenia or be managed by a governing body, the majority of whom are Armenian citizens or lawful permanent residents of the Armenia and;

Not be controlled by a foreign entity or by an individual or individuals who are not citizens or permanent residents of the Armenia.

The term “controlled by” means a majority ownership or beneficiary interest as defined above , or the power, either directly or indirectly, whether exercised or exercisable, to control the election, appointment, or tenure of the organization’s managers or a majority of the organization’s governing body by any means, e.g., ownership, contract, or operation of law.

“Foreign entity” means an organization that fails to meet any part of the “local organization” definition. Government controlled and government owned organizations in which the recipient government owns a majority interest or in which the majority of a governing body are government employees, are included in the above definition of local organization.

USAID will not accept applications from individuals.

The Government expects to award Firm-Fixed Price Purchase Order o/a December 2013. The Government reserves the right to award a single contract or more than one contract as a result of this Solicitation. The estimated period of performance is eight (8) months from the effective award date.

The estimated value of the contract(s) to be issued under the RFP shall not exceed $100,000.

The authorized geographic code for procurement of goods and services under this contract is 937.

Proposals must be received by the Government on or before the closing date stated above to be considered. They must be sent electronically to nsarkisian@usaid.gov and ayeghiazarian@usaid.gov. Submission of hard copies is not required.

Any questions regarding the RFP requirements must be submitted to Ms. Narine Sarkisian, Acquisition Specialist via e-mail at nsarkisian@usaid.gov and Armen Yeghiazarian, Senior Acquisition Specialist at ayeghiazarian@usaid.gov no later than October 28, 2013, 12:00 PM Yerevan local time.

This Request for Proposals in no way obligates the U.S Agency for International Development to award a contract, nor does it commit USAID to pay any cost incurred in the preparation and submission of a proposal in response hereto. Furthermore the Government reserves the right to reject any and all offers, if such act ion is considered to be in the best interest of the Government.

The award is subject to availability of funds.

PART I – THE SCHEDULE

SECTION B – SUPPLIES OR SERVICES AND PRICE/COSTS

B.1 PURPOSE

The purpose of this contract is to provide the specifications for a risk assessment of the Republic of Armenia’s Public Financial Management (PFM) Systems in accordance with requirements outlined in ADS 220 – Use of Reliable Partner Country Systems for Direct Management and Implementation of Assistance (March 26, 2012).

B.2 CONTRACT TYPE AND SERVICES

This is a Fixed-Price Purchase Order. The Contractor must perform the services set forth in Section C. For the consideration set forth in the contract, the Contractor shall provide the deliverables or outputs described in Section C. and F. and comply with all contract requirements.

B.3 CONTRACT PRICE

The total Firm-Fixed Price of this contract is $_____________

The Contractor will not be paid any sum in excess of this amount or in excess of the prices.

B.4 PAYMENT SCHEDULE

Payment will be made in US Dollars. USAID will make payments upon completion and USAID’s acceptance of Final Risk Assessment report, as outlined in Section C.6 Deliverables.

Separate payments will be made for each assessment report of each Government of Armenia Ministry.

END OF SECTION B

SECTION C – DESCRIPTION/SPECIFICATIONS/STATEMENT OF WORK

USAID/Armenia Stage 2 Public Financial Management Risk Assessment Framework

PFMRAF II

C.1 PURPOSE

The purpose of this Statement of Work (SOW) is to provide the specifications for a risk assessment of the Republic of Armenia’s Public Financial Management (PFM) Systems in accordance with requirements outlined in ADS 220 – Use of Reliable Partner Country Systems for Direct Management and Implementation of Assistance (March 26, 2012). The assessment must evaluate the financial management, procurement, internal control and programmatic / technical management capacity of Government of Armenia (GOAM) institutions identified in C.2 Background.

In order to complete the assessment, the contractor must draw from: a) professional guidelines available to the firm, b) the PFM Risk Assessment Questionnaire, c) most recent Stage 1 Rapid Appraisal and other relevant guidance, d) other sources as appropriate.

C.2 BACKGROUND

USAID/Armenia is committed to integrating the principles of USAID Forward to its development implementation portfolio. The original Stage 1 PFM “Rapid Appraisal” was conducted in FY 2011 and was substantially updated in April 2013. Based on the Stage 1 appraisal USAID/Armenia will proceed to the Risk Assessment (Stage 2).

With the launch of new five year strategy in summer of 2013, USAID/Armenia is planning to use Partner Country Systems (PCS) for direct implementation of some of its envisioned programs. In particular, there are three programs that are identified as candidates for implementation using the PCS:

a. USAID support to Ministry of Territorial Administration (MTA)

The focus of USAID support to the Ministry of Territorial Administration (MTA) is to enhance the capabilities of the MTA to (i) generate and lead a national debate regarding the decentralization process, (ii) justify and explain the basis of decisions regarding decentralization, community enlargement, and local government empowerment, and (iii) meet its international and bilateral commitments, particularly with regard to and as described in the Development Objective Cooperative Agreement signed with USAID, as they relate to decentralization and local government reform. In addition, the direct assistance will strengthen the capacity of the MTA to provide assistance, guidance, and resources to local governments and engage them directly as they adapt to changes in the decentralization legal environment. The program will seek to achieve a number of results, including establishing a government Task Force comprised of policy makers and stakeholders that will provide recommendations regarding policy and track implementation; the formulation of a clear policy on community enlargement, intercommunity cooperation or other such approach to defining community rights, responsibilities, authorities and funding; the passage of a package of legislation to facilitate decentralization and local government empowerment; strengthened municipal councils that exercise oversight of their mayors and reach out to and represent the interests of their constituents; increased own-source revenues for municipalities; and improved municipal services.

This program will provide technical assistance to MTA in policy formulation and administration. Assistance will be simultaneously extended to the consolidated local governments to help them transit to the newly formed structure based on the cluster approach to be piloted in all 10 marzes.

USAID/Armenia intends to implement this project through MTA. The project will include costs such as technical assistance (training, consultancy), salaries for expert teams, procurement of equipment, materials and infrastructure.

b. USAID support to Ministry of Labor and Social Affairs (MLSA)

There are several areas in which USAID/Armenia plans to support the Ministry of Labor and Social Affairs through the Government-to-Government mechanism to advance the country’s social protection system:

Technical assistance to Government’s national child protection system reform to stop the flow of children into institutions and reduce the number of children in institutional care (deinstitutionalization). This may involve support to the Ministry of Labor and Social Affairs (MLSA) to develop further alternative social services and provide assistance for children and families. Specifically, support would target building the MLSA’s institutional and human resource capacity to ensure a smooth transition from residential care to community-based alternative services and sharing the transition costs for this reform.

Continued assistance to the Ministry of Labor and Social Affairs and the “Pension System Awareness Center” Foundation to carry out public awareness campaigns in 2013 and 2014.

Support to Government’s social service provision system reform to integrate social services in Armenia. Armenia’s social services are centralized and the local authorities have little power to plan and organize them; it is therefore essential that those services be decentralized and expanded. Since this is a large scale, fundamental and resource-demanding reform, USAID’s support in this regard will be very targeted and limited to the areas of child protection system reform (deinstitutionalization as well as prevention of institutionalization) and pension system reform.

c. USAID support to Ministry of Education and Science (MES)

USAID/Armenia plans to support the Ministry of Education and Science of Armenia through the Government-to-Government mechanisms to further advance inclusive education in Armenia and to reorganize the special education schools:

Technical assistance for the reorganization of special education schools (boarding schools) to shift their mandate from teaching only students with special needs to serving as resource centers to general mainstream schools, which may lead to an increase in inclusive education and more students with disabilities accessing mainstream schools in their communities.

Direct budgetary support to cover transitional costs related to the reorganization of special education schools.

Assist GOAM to boast local capacity for early identification and referral of children with disabilities, to overcome stigma and promote early identification of disabilities.

d. USAID support to Ministry of Health (MOH)

The focus of USAID support to the Ministry of Health (MOH) is to: (i) implement health financing reforms to reduce incentives for excessive hospitalization of TB cases; (ii) mitigate TB infection risks at various levels of TB care; (iii) improve TB, MCH, and FP policy formulation and implementation; and (iv) enhance MOH capabilities to effectively plan and allocate resources for evidence-based prevention and treatment programs in the areas of TB, MCH, FP, and selected NCD services. In addition, the direct assistance will strengthen public health leadership role of the host country to establish partnerships with civil society and the private sector to leverage resources and outsource activities to improve population health outcomes.

The project will seek to achieve a number of results, including optimization of TB hospital services; high-quality patient-friendly diagnostics and treatment at the PHC level; enhanced health managers’ skills and competencies; improved contraceptive security; improved program operations, policies, and systems and enforcement of legislation limiting/banning over-the-counter sales of antimicrobial medicines (including all anti-TB medicines) without prescription.

USAID/Armenia intends to implement this project through the MOH. The project will include costs such as technical assistance (training, consultancy), salaries for expert teams, procurement of equipment and materials, infrastructure and other.

C.3 PUBLIC FINANCIAL MANAGEMENT RISK ASSESSMENT FRAMEWORK

(PFMRAF)

The PFMRAF is the tool that USAID missions use to identify and mitigate the fiduciary risks associated with use of Partner Country Systems. The PFMRAF is based on modern risk management principles that allow beneficiaries to identify weaknesses; analyze risk associated with weaknesses; and determine ways to eliminate or control weaknesses. The PFMRAF, taking a new and developmentally sound approach, recognizes that the PFM system, along with both its weaknesses and strengths, belongs to the partner country. In partnership, not patronage, the partner country is involved in risk identification and together we mitigate risks through improvements to the PFM system. This framework is comprised of stages outlined below:

PFMRAF Steps:

RAPID APPRAISAL: The rapid appraisal covers issues affecting country-level fiduciary risk, such as country commitment to development, transparency, and accountability of public funds. The rapid appraisal report for Armenia will be provided to the contractor.

RISK, ASSESSMENT, ANALYSIS, MANAGEMENT, AND MITIGATION:

During this stage, USAID identifies and where appropriate proposes measures to mitigate fiduciary risks at the country, sector, or subnational government level. The risk identification process includes professional examination of the actual PFM systems, to include procurement and inventory management. Such investigation includes limited testing at the transaction level and other investigatory techniques such as tightly-focused interviews and documentary reviews to ensure that a comprehensive and detailed examination is completed.

Post - PFMRAF Steps:

PROJECT DESIGN: This stage entails joint design, between the in-country USAID Mission on behalf of the Agency and the partner country, where the parties mutually agree on the development objectives, the implementing mechanisms, the uses of country systems, additional financial controls that might be required, and capacity building for sustainability that may be required.

BILATERAL PROJECT AGREEMENT: In order to proceed to this stage, ADS 220 requires that the Mission Director or principal officer of the operating unit sign an Approval of Use of Partner Country Systems (AUPCS) that agrees to use Partner Country PFM systems and states that USAID’s development goals, including measurable results, are advanced by the use of the partner’s systems. At this stage, the project design and all other legal and regulatory provisions are documented in a formal agreement between the partner government and USAID.

IMPLEMENTATION, MONITORING, AND EVALUATION: The implementation process is driven by project design and the provisions in the bilateral project agreement that provide for strong monitoring processes subject to (1) periodic financial audit; (2) re-assessment using the PFMRAF; and (3) other reports as agreed. Projects implemented through partner country systems are covered by USAID’s new Evaluation Policy and the requirements for these will be included in the bilateral project agreement. Final completion reports for the project will address fiduciary risks and mitigating measures highlighting the strengths and weaknesses of government performance, recommendations for further PFM reform, and suggestions to improve the risk mitigation process.

C.4 RISK ASSESSMENT OF THE PFMRAF

USAID’s approach for evaluating the risk(s) identified in the Stage 2 – Risk Assessment of the

PFMRAF:

1. Relates impact and probability of an adverse event in accordance with sound risk management principles;

2. Permits creation of quantitative data to describe risk in addition to the qualitative data upon which we have relied to date; and

3. Permits comparisons between different units of government within a country and between/among countries.

Impact – The severity of an adverse event associated with a risk or combination of risks is described below. Risks should be scored with an integer.

Negligible: 1 PFM broadly reflects good international practice. The development objective, in the 95 to 100 percent range of expected project outcomes, can reasonably be assumed to be attained if conditions do not change. Strong political and management commitment to democratic values and sound PFM practice is evident. Routine compliance with internal controls is observed and expected. Both horizontal and vertical democratic accountability institutions are mature, function routinely, and are not under threat.

Marginal: 2 PFM broadly reflects good international practice with some gaps or inefficiencies present. Political or management commitment to closing the gaps and eliminating inefficiencies is present. Seventy to 95 percent of the development objective can be reasonably assumed to be attained. Expected effects could include minor delays in attainment, minor dissatisfaction by stakeholders, or a non-material financial impact. Non-compliance with the internal control framework is the exception, rather than the rule.

Weaknesses in the horizontal and vertical accountability institutions may be present or such institutions may be in an early and untested stage of development. Opposition to these institutions is not a “given” but may be detected.

Serious: 3 Significant elements of the PFM system do not reflect good international practice. Political or management commitment to attaining a state of compliance with good international practice is inconsistent or questionable. Attainment of 40 to 70 percent of the expected outcomes associated with the development objective can reasonably be expected.

Expected effects could include a major delay, limited dissatisfaction by stakeholders, and a material financial impact. Non-compliance with the internal control framework is likely to occur. Weaknesses in the horizontal and vertical accountability institutions are evident or one or the other shows significant gaps. Opposition to accountability is evident by some elements within the society.

Catastrophic: 4 There are obvious and material divergences from good international PFM practice. Political and management commitment to achieve compliance with good international practice is the exception or entirely absent. Realization of an adverse event associated with this risk factor would permit attainment of less than 40 percent of expect project outcomes. Expected effects include failure of the project, widespread and severe dissatisfaction by stakeholders, major financial losses, and extensive loss of reputation. Non-compliance with the internal control framework is expected to occur widely. Vertical and horizontal accountability institutions have major gaps, or one or the other is severely under-developed. Opposition to accountability is organized or widespread and therefore expected.

Probability – The likelihood of occurrence of an adverse event associated with a risk or a combination of risks is defined below. The risk should be scored with an integer reflecting the probability of the adverse event.

Remote: 1 An adverse event associated with the risk is rare or would only occur in exceptional circumstances. There is little or no experience of a similar failure.

Occasional: 2 An adverse event associated with the risk might occur because the conditions for it exist, but controls exist and are effective.

Probable: 3 An adverse event associated with the risk likely will occur because the controls are inadequate or are applied inconsistently.

Frequent: 4 An adverse event associated with the risk is expected to occur. There near certainty of occurrence because the controls do not exist or are ineffective.

Identified risk(s) should be evaluated and assessed for impact and probability using the terms above to arrive at a score which will dictate the severity of the risk and appropriate treatment.

Chart 1 relates probability and impact in a matrix using the above factors. Combining the impact and probability factors creates Critical, High, Medium, or Low risk categories. This matrix is the basis for the Risk Mitigation Plan, the document evidencing risk exposure and treatment.

Chart 1

USAID’s PFM Risk Matrix

Impact

Catastrophic High Critical Critical Critical

Serious High High Critical Critical

Marginal Medium Medium High High

Negligible Low Low Medium Medium

Remote Occasional Probable Frequent Probability

C.5 SCOPE OF WORK

The contractor must perform a Stage 2 Risk Assessment of the following GOAM institutions:

a. Ministry of Finance (MOF) of the RA,

b. Ministry of Territorial Administration (MTA) of the RA,

c. Ministry of Labor and Social Affairs of the (MLSA) RA,

d. Ministry of Education and Science (MES)

e. Ministry of Health (MOH) of the RA.

The contractor must use USAID’s Questionnaire for the PFMRAF Stage 2 included in Attachment J.1 as a guide. For each of the identified institutions the following areas must be assessed:

(i) Ministry of Finance (MOF)

Because of its central role in the funds flow process, the MOF must be the starting point for the overall assessment. All appropriated funds go through the single treasury account administered by the MOF. Non-appropriated funds such as loans and grants are considered extra-budgetary funds and also flow through the single treasury account system.

The assessment must consider adequacy of management and financial controls implemented by the MOF to provide the MTA, MLSA, MES and MOH guidance and oversight related to budget allocation, transactions, accounting and reporting. This must include review of:

Budgeting and financial management systems including systems in place to control, allocate, expend, account, report and audit funds;

Capacity and experience of accounting and financial management personnel;

Qualifications and experience of MOF/internal Audit, MOF Monitoring and Evaluation Department staff to manage and supervise external financial audits at other Ministries;

(ii) Line Ministries – MTA, MLSA, MES and MOH

The assessment must examine the current capacity, control systems, and day-to-day practices used in the PFM systems in the ministries and its departments that may be responsible for making and carrying out decisions and actions related to the assistance USAID will provide. The following criteria must be addressed:

Budgetary Systems and Execution

Procurement

Ordering goods and services and payment of invoices

Salaries

Financial Management – Payments

Information Technology

External Audit

Control environment

Phase 1 – Assessment Scope and Design

The contractor must review all relevant documents and prepare a draft PFM Risk Assessment work plan, including timelines for completion of the field work and final assessment. Work plan must be submitted to USAID/Armenia for review. In addition, the work plan must be submitted to the MOF, MTA, MES and MLSA for review. The contractor must prepare a final work plan that addresses any comments received from USAID and from the respective ministries.

The work plan should not include all items from the PFM Risk Assessment Questionnaire but only those items which are relevant. The contractor must develop the appropriate methodology to accomplish assessment objectives. The USAID/Armenia mission and other USAID experts will provide assistance in developing the plan as appropriate.

Phase 2 – Implementation

The contractor must execute the final work plan which must address the capacity to manage funds, procure resources, disburse funds and focus on those areas of high risk described in the Rapid Appraisal Report.

The contractor must conduct an entrance conference with the appropriate GOAM and USAID officials to ensure that all the objectives and requirements of the assessment are met.

USAID Participation

A team including a minimum of two financial management staff along with respective Sector Specialists and an IT specialist from USAID/Armenia must be members of the contractor’s assessment team on a full-time basis. Additional USAID staff may participate in parts of the assessment on as needed basis.

USAID representatives will be present during entry and exit meetings with GOAM officials and in other key meetings.

Presentation of Assessment Findings

The contractor must present the assessment findings to USAID/Armenia in an “exit” meeting and submit a draft for comments, before presenting a final report. The report must be in English.

USAID must determine whether and how to communicate the assessment results to the GOAM prior the exit conference with the GOAM.

C.6 DELIVERABLES

All deliverables are subject to approval by USAID. For each assessed Ministry:

i. Draft work-plan/program steps based on the provided questionnaire or other agreed upon criteria: within ten (10) days after contract award date.

ii. Final work-plan: Within five (5) days of receiving USAID/Armenia comments on the draft. In addition to the work plan, a customized Risk Assessment Questionnaire addressing the issues raised by the Mission for each section of the assessment must be submitted together with the final work plan.

iii. Draft assessment report: Within two (2) months after approval of final work plan.

Together with the draft report, for each section of the assessment, a completed copy of the customized Risk Assessment Questionnaire with input from assessment team and copies of all reports and materials relied on must be submitted.

iv. Final assessment report including the completed PFMRAF questionnaire, risk ratings and mitigation plan. Within two (2) weeks of receiving USAID/Armenia comments on the final draft.

A narrative addressing each section from the final Assessment work plan, which includes:

a) Findings,

b) Specific areas of concern,

c) The level of systemic risk identified per USAID’s PFM Risk Matrix and the basis for the level of the risk assigned,

d) Recommendations for mitigating the identified risks.

Three hard copies and one electronic copy of the draft and final reports must be submitted in English.

C.7 REQUIRED QUALIFICATIONS/EXPERIENCE

USAID/Armenia requires the services of a local firm with the following qualifications/experience:

A) Organizational Experience: Professional experience in organizational risk assessment is required; previous experience in conducting risk assessment of government institutions is strongly preferred.

B) Personnel: The team lead requires a senior person with audit /risk assessment and project management experience holding a Chartered Accountant Certification (CPA, ACCA).

The contractor team must include expertise in:

Design/evaluation/audit of public financial management systems (local or international experience);

Organizational risk assessment;

Institutional Strengthening

The Republic of Armenia’s relevant laws, regulations, and GOAM policies (please see the PFM Risk Assessment Checklist / Questionnaire for the specific areas);

Accounting, Internal Controls, Cash Management

Procurement and Logistics Systems

C) Past Performance: Past experience in conducting similar activities and tasks.

C. 8 PERIOD OF PERFORMANCE

Period of services for the scope of work is estimated from o/a December, 2013 through o/a August, 2014. Offerors are required to confirm their availability to perform services as specified in the SOW during the above stated period.

SECTION D – PACKAGING AND MARKING

D.1 AIDAR 752.7009 MARKING (JAN 1993)

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

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

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

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

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

D.2 BRANDING AND MARKING POLICY

In accordance with provision D.1 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.

D.3 BRANDING STRATEGY

Per ADS 320.3.2.1, the Branding Strategy for this contract is as follows:

Program Name : USAID/Armenia Stage 2 Public Financial Management Risk Assessment Framework PFMRAF II

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, electronic commodities, and equipment; printed, audio, visual or 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.

END OF SECTION D

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) 52.246-4 Inspection of Services – Fixed-Price (AUG 1996)

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 identified 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 TITLE DATE

FEDERAL ACQUISITION REGULATION (48 CFR Chapter 1) AIDAR (48 CFR Chapter 7)

52.242-15 Stop-Work Order (AUG 1989) 752.242-70 Periodic Progress Reports (OCT 2007)

F.2 PERIOD OF PERFORMANCE

The period of performance for this contract is eight months from the effective date of the award.

F.3 PLACE OF PERFORMANCE

The Contractor shall perform the services described in Section C. in the Republic of Armenia.

F.4 PERFORMANCE STANDARDS

Evaluation of the Contractor’s overall performance shall be conducted in accordance with the performance standards set forth in FAR 42.15, Contractor Performance Information, and corresponding contract Sections C. and F. This report, conducted jointly by the Contracting Officer Representative (COR) and the Contracting Officer, shall form the basis of the Contractor's permanent performance record with regard to this contract.

F.5 KEY PERSONNEL

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

Name(s) Title(s)

(To be specified by the Offeror and incorporated into the contract at time of award)

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 Technical Representative 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.

F.6 REPORTS, DELIVERABLES OR OUTPUTS, PROGRESS REPORTING

REQUIREMENTS

In addition to the requirements set forth for submission of reports in Sections I and J, and in accordance with AIDAR clause 752.242-70, Periodic Progress Reports, the Contractor shall furnish reports and deliverables described in Section C and below to the USAID/Armenia COR.

F.7 AIDAR 752.7005 SUBMISSION REQUIREMENTS FOR

DEVELOPMENT EXPERIENCE DOCUMENTS (SEP 2013)

(a) Contract Reports and Information/Intellectual Products.

(1) Within thirty (30) calendar days of obtaining the Contracting Officer

Representative’s approval, the contractor must submit to USAID’s Development Experience Clearinghouse (DEC) one copy each of reports and information products which describe, communicate or organize program/project development assistance activities, methods, technologies, management, research, results and experience. These reports include: assessments, evaluations, studies, technical and periodic reports, annual and final reports, and development experience documents (defined as documents that (1) describe the planning, design, implementation, evaluation, and results of development assistance; and (2) are generated during the life cycle of development assistance programs or activities.) The Contractor must also submit copies of information products including training materials, publications, databases, computer software programs, videos and other intellectual deliverable materials required under the Contract Schedule. The following information is not to be submitted:

(i) Time-sensitive materials such as newsletters, brochures or bulletins.

(ii) The contractor’s information that is incidental to award administration, such as financial, administrative, cost or pricing, or management information.

(2) Within thirty (30) calendar days after completion of the contract, the contractor must submit to the DEC any reports that have not been previously submitted and an index of all reports and information/intellectual products referenced in paragraph (a)(1) of this clause.

(b) Submission requirements. The contractor must review the DEC Web site for the most up-to-date submission instructions, including the DEC address for paper submissions, the document formatting and the types of documents to be submitted. The submission instructions can be found at: https://dec.usaid.gov.

(1) Standards.

(i) Material must not include financially sensitive information or personally identifiable information (PII) such as social security numbers, home addresses and dates of birth.

Such information must be removed prior to submission.

(ii) All submissions must conform to current USAID branding requirements.

(iii) Contract reports and information/intellectual products can be submitted in either electronic (preferred) or paper form. Electronic documentation must comply with Section 508 of the Rehabilitation Act of 1973.

(iv) The electronic submissions must consist of only one electronic file, which comprises the complete and final equivalent of the paper copy. In the case of databases and computer software the submissions must also include necessary descriptive information, e.g., special backup or data compression routines, software used for storing/retrieving submitted data, or program installation instructions.

(v) Electronic documents must be in one of the National Archives and Records

Administration (NARA)-approved formats as described in NARA guidelines related to the transfer of permanent E-records. (See http://www.archives.gov/records-mgmt/initiatives/transfer-to-nara.html).

(2) Essential bibliographic information. Descriptive information is required for all

Contractor products submitted. The title page of all reports and information products must include the contract number(s), contractor name(s), name of the USAID Contracting Officer’s Representative, the publication or issuance date of the document, document title, (if non-English, provide an English translation of the title), author name(s), and development objective or activity title (if non-English, provide a translation) and associated number, and language of the document (if non-English). In addition, all hard copy materials submitted in accordance with this clause must have, attached as a separate cover sheet, the name, organization, address, telephone number, fax number, and Internet address of the submitting party.

END OF SECTION F

SECTION G – CONTRACT ADMINISTRATION DATA

G.1 INVOICES AND PAYMENT

Claims for payment under this contract must be submitted to the USAID/Armenia Financial and Administrative Management Office. The Contractor must submit a signed SF-1034 Public Voucher for Purchases, Services Other Than Personal, and SF-1034A continuation, (if necessary). Each voucher shall be identified by:

(a) Name of the contractor;

(b) Date and invoice number;

(c) USAID contract number;

(d) Description, price, quantity, period of services rendered;

(e) Contact name, telephone and fax number;

(f) Other substantiating documentation or information required by the contract.

Invoice with required supporting documents may be submitted either through paper or electronic in a Portable Document File (PDF) format through an electronic mailbox. The mailbox address is armeniapayments@usaid.gov. Electronic submission (PDF format) are encouraged and do not require subsequent transmittal of original paper invoices.

One copy of the voucher and the invoice shall also be submitted to the COR.

G.2 ADMINISTRATIVE CONTRACTING OFFICE

The Administrative Contracting Office is:

Office of Acquisition and Assistance

USAID/Armenia

Yerevan 0082, Armenia

G.3 CONTRACTING OFFICER’S REPRESENTATIVE (COR)

The Contracting Officer’s Representative (COR) for the contract will be appointed by the Contracting Officer in a separate designation letter. The COR is responsible for providing technical directions to the Contractor, as defined herein, accepting deliverables, and providing administrative approval for payment.

G.4 PAYING OFFICE

The Paying Office:

Financial and Administrative Management Office (FAMO) USAID/Armenia

G.5 TECHNICAL DIRECTIONS/RELATIONSHIP WITH USAID

(a) Technical Directions is defined to include:

(1) Written directions to the Contractor which fill in details, suggest possible lines of inquiry, or otherwise facilitate completion of work;

(2) Provision of written information to the Contractor which assists in the interpretation of drawings, specifications, or technical portions of the work statement;

(3) Review and, where required, provide written approval of technical reports, drawings, specifications, or technical information to be delivered. Technical directions must be in writing, and must be within the scope of the work as detailed in Section C.

(b) The COR is authorized by designation to take any or all action with respect to the following which could lawfully be taken by the Contracting Officer, except any action specifically prohibited by the terms of this Contract:

(1) Assure that the Contractor performs the technical requirements of the contract in accordance with the contract terms, conditions, and specifications.

(2) Perform or cause to be performed, inspections necessary in connection with a) above and require the Contractor to correct all deficiencies; perform acceptance for the Government.

(3) Maintain all liaison and direct communications with the Contractor. Written communications with the Contractor and documents shall be signed as "Contracting Officer Technical Representative" with a copy furnished to the Contracting Officer.

(4) Issue written interpretations of technical requirements of Government drawings, designs, and specifications.

(5) Monitor the Contractor's production or performance progress and notify the Contractor in writing of deficiencies observed during surveillance, and direct appropriate action to effect correction. Record and report to the Contracting Officer incidents of faulty or nonconforming work, delays or problems.

(6) Obtain necessary security clearance and appropriate identification if access to Government facilities is required. If to be provided, ensure that Government furnished property is available when required.

LIMITATIONS: The COR is not empowered to award, agree to, or sign any contract (including delivery or purchase orders) or modifications thereto, or in any way to obligate the payment of money by the Government. The COR may not take any action which may impact on the contract schedule, funds, scope or rate of utilization of LOE. All contractual agreements, commitments, or modifications which involve prices, quantities, quality, schedules shall be made only by the Contracting Officer.

(c) The COR is required to meet quarterly/semi-annually/annually with the Contractor and the Contracting Officer concerning performance of items delivered under this contract and any other administration or technical issues. Telephonic reports may be made if no problems are being experienced. Problem areas should be brought to the immediate attention of the Contracting Officer.

(d) In the absence of the designated COR, the COR may designate the alternate COR to perform in his(her) place. However, such action to direct an individual to act in the COR's stead shall immediately be communicated to the Contractor and the Contracting Officer.

(e) Contractual Problems - Contractual problems, of any nature, that may arise during the life of the contract must be handled in conformance with specific public laws and regulations (i.e.

Federal Acquisition Regulation and Agency for International Development Acquisition Regulation). The Contractor and the COR shall bring all contracting problems to the immediate attention of the Contracting Officer. Only the Contracting Officer is authorized to formally resolve such problems. The Contracting Officer will be responsible for resolving legal issues, determining contract scope and interpreting contract terms and conditions. The Contracting Officer is the sole authority authorized to approve changes in any of the requirements under this contract. Notwithstanding any clause contained elsewhere in this contract, the said authority remains solely with the Contracting Officer. These changes include, but will not be limited to the following areas: scope of work, price, quantity, technical specifications, delivery schedules, and contract terms and conditions. In the event the Contractor effects any changes at the direction of any other person other than the Contracting Officer, the change will be considered to have been made without authority.

(f) Failure by the Contractor to report to the Administrative Contracting Office, any action by the Government considered to be a change, within the specified number of days contained in FAR 52.243-7 (Notification of Changes), waives the Contractor's right to any claims for equitable adjustments.

G.6 CONTRACTOR'S PAYMENT ADDRESS

END OF SECTION G

SECTION H – SPECIAL CONTARCT REQUIREEMNTS

H.1 AUTHORIZED GEOGRAPHIC CODE

The authorized geographic code for procurement of goods and services under this contract is 937 and 110.

H.2 752.225-70 SOURCE AND NATINALITY REQUIREMENTS (FEB 2012)

(a) Except as may be specifically approved by the Contracting Officer, the Contractor must procure all commodities (e.g., equipment, materials, vehicles, supplies) and services (including commodity transportation services) in accordance with the requirements at 22 CFR Part 228 “Rules on Procurement of Commodities and Services Financed by USAID Federal Program Funds.” The authorized source for procurement is Geographic Code 937 unless otherwise specified in the schedule of this contract. Guidance on eligibility of specific goods or services may be obtained from the Contracting Officer.

(b) Ineligible goods and services. The Contractor must not procure any of the following goods or services under this contract:

(1) Military equipment

(2) Surveillance equipment

(3) Commodities and services for support of police and other law enforcement activities

(4) Abortion equipment and services

(5) Luxury goods and gambling equipment, or

(6) Weather modification equipment.

(c) Restricted goods. The Contractor must obtain prior written approval of the

Contracting Officer or comply with required procedures under an applicable waiver as provided by the Contracting Officer when procuring any of the following goods or services:

(1) Agricultural commodities,

(2) Motor vehicles,

(3) Pharmaceuticals and contraceptive items

(4) Pesticides,

(5) Fertilizer,

(6) Used equipment, or

(7) U.S. government-owned excess property.

If USAID determines that the Contractor has procured any of these specific restricted goods under this contract without the prior written authorization of the Contracting Officer or fails to comply with required procedures under an applicable waiver as provided by the Contracting Officer, and has received payment for such purposes, the Contracting Officer may require the contractor to refund the entire amount of the purchase.

H.3 LOGISTIC SUPPORT

The Contractor shall be responsible for furnishing all logistic support in the United States and overseas.

H.4 EXECUTIVE ORDER ON TERRORISM FINANCING (FEB 2002)

The Contractor/Recipient is reminded that U.S. Executive Orders and U.S. law prohibits transactions with, and the provision of resources and support to, individuals and organizations associated…