SOL-111-15-000003.pdf

ISSUANCE DATE: March 20, 2015 QUESTIONS DEADLINE: April 4, 2015 CLOSING TIME AND DATE: 14:00PM (Yerevan Time) April 30, 2015

Subject: Request for Proposals (RFP) No. SOL-111-15-000003, Armenia Policies for Growth (APG)

IDIQ

The United States Government, represented by the U.S. Agency for International Development (USAID), is seeking proposals from qualified Armenian organizations interested in providing the services described in the attached Request for Proposals (RFP). USAID anticipates one award as a result of this solicitation for a two-year Indefinite Delivery, Indefinite Quantity Contract (IDIQ). Also, this solicitation includes the requirement for Task Order #1 for Armenia agricultural policy strategy and action plan (APSAP). Task orders will be placed in accordance with Section F Ordering procedures.

USAID anticipates that the maximum aggregate ordering limitation for contracts resulting from this RFP will be $1,000,000 over the 2-year ordering period. The maximum aggregate dollar value of task orders awarded cannot exceed this contract ceiling. There is no guarantee on the number of task orders that the successful contractor will receive or the amount of money beyond the minimum order guarantee set forth in the RFP.

Please refer to Section L for information regarding proposal requirements. Offerors should take into account the expected delivery time required by the proposal transmission method they choose, and they are responsible for ensuring proposals are received at USAID by the due date and time as specified in Section L. Failure to comply with the submission date will deem any submission unacceptable and it will not be reviewed or evaluated. Faxed proposals are not acceptable, nor will they be reviewed or evaluated.

Section L of the RFP sets forth all instructions for the preparation and submission of required proposal contents, including critical dates/times for the submission of questions, and the proposal submission closing date and time. Section M states the criteria by which proposals will be evaluated. Oral explanations or instructions given before award of the contract will not be binding.

This RFP 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 a proposal. Award of a Contract under this RFP is subject to availability of funds and other internal USAID approvals.

This RFP can be viewed and downloaded from www.fedbizopps.gov. USAID bears no responsibility for data errors resulting from transmission or conversion processes. Further, be aware that amendments to solicitations are occasionally issued and will be posted on the same website from which you downloaded the solicitation. USAID advises to regularly check the above website for amendments.

Potential offerors must submit questions concerning this RFP in writing or via email to Mr.

Armen Yeghiazarian, Senior Acquisition and Assistance Specialist, USAID/Armenia ayeghiazarian@usaid.gov or to Mr. Armen Karapetyan, Acquisition and Assistance Specialist, USAID/Armenia akarapetyan@usaid.gov . 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.

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 mailto:ayeghiazarian@usaid.gov mailto:akarapetyan@usaid.gov

SOL-111-15-000003 SECTION B

PART I - THE SCHEDULE

SECTION B - SUPPLIES OR SERVICES AND PRICE/COSTS

B.1 PURPOSE

The purpose of this contract is to provide services that fall within the Scope of Work (SOW) specified in Section C for Armenia Policies for Growth (APG). USAID Task Order Contracting Officers (TO COs) will request the work through the issuance of task orders during the ordering period as specified in Section F of the contract.

B.2 CONTRACT TYPE AND SERVICES

This is an Indefinite Delivery/Indefinite Quantity (IDIQ) type contract. The Government will issue task orders that are either Cost-Plus-Fixed-Fee (CPFF) (term or completion), or any Fixed-Priced type.

The Contractor must perform the services set forth in task orders at prices consistent with Section B of this contract.

B.3 MINIMUM OBLIGATED AMOUNT

The basic contract includes an initial obligation of funds in the amount of $[Insert amount] to cover the minimum order guarantee USAID is required to order and the Contractor is required to furnish the minimum order amount of services.

Following this initial obligation, individual task orders will obligate funds to cover the work required under that task order.

B.4 MAXIMUM CONTRACT CEILING

This is a multiple award Indefinite Quantity Contract (IDIQ) with an overall ceiling price of $1,000,000 for Armenia Policies for Growth (APG). The maximum aggregate dollar value of task orders awarded must not exceed the contract ceiling.

B.5 FIXED FEE CEILING (COST-PLUS-FIXED-FEE TASK ORDERS ONLY)

NOTE: The ceiling on fixed fee does not apply to Fixed-Priced Task Orders.

(a) For each cost-reimbursement task order issued under this IDIQ, the TOCO and Contractor agree to negotiate a set dollar amount for fixed fee. In negotiating the fixed dollar amount for fee, the TOCO must consider the policies and factors for establishing fee in FAR 15.404-4 as well as any applicable USAID policy on establishing a fixed fee amount. In no event, however, may the amount of fixed fee in any individual task order exceed _% of the task order’s estimated cost, excluding fee).

The fixed fee ceiling applies to the prime contract and all cost reimbursement subcontracts.

(b) The Total Estimated Cost -Plus- Fixed- Fee for each Task Order must be negotiated in accordance

B-1 with the terms of this contract.

(c) Fixed Fee Payment. For any Task Order issued under this Contract, at the time of each payment of allowable costs to the contractor, the USAID paying office ordinarily pays the contractor a percentage of fixed fees that directly corresponds to the percentage of allowable costs being paid. Two exceptions to paying fixed fee in this manner apply:

(1) If the TOCO determines that this method results in paying a disproportionately higher ratio of fixed fee than the percentage of work that the contractor has completed, then the TOCO may suspend further payment of any fixed fee until the contractor has made sufficient progress to justify further payment, up to the agreed percentage.

(2) Because the clauses entitled "Allowable Cost and Payment" (FAR 52.216-7) and "Fixed Fee" (FAR 52.216-8) are incorporated into this Contract, the terms and conditions of these clauses apply after total payments of fixed fee reach eighty-five percent (85%) of the total fixed fee.

B.6 CONTRACT LINE ITEMS (CLINs) FOR IDIQ

B.6.1 LABOR

(a) Central management costs will be handled through the following method:

The Contracting Officer has determined that a key (full-time) technical manager is not necessary or required to administer the basic IDIQ. Contractors will not be authorized to bill USAID directly for IDIQ management costs under this IDIQ or under task orders. Contractors must propose a centralized management structure that allows for recovery of IDIQ management costs as part of its indirect costs.

(b) The work day and work week policies and method of accounting for paid absences including holidays for the contractor and major subcontractors is set forth in Attachment J. [THE

CONTRACTING OFFICER WILL FILL IN THE ATTACHMENT NUMBER AT THE TIME OF

AWARD AND INCORPORATE THE INFORMATION FROM THE CONTRACTOR’S PROPOSAL

INTO SECTION J OF THE CONTRACT].

Compensation of personnel under this contract or any resulting subcontract must be in accordance with AIDAR 752.7007 Personnel Compensation (July 2007) (See Section H.).

(a) Unburdened Ceiling Daily Rates (CDR)

(1) The task order rates must not exceed the ceiling daily rates set forth in the table below.

Each CDR for personnel listed below is “unburdened” and must include only salary costs or consulting rates of the individual providing the services.

The CDR for employees must not include the following:

• Payroll costs (fringe benefits, FICA, allowances, differentials, etc.);

• Indirect Costs applicable to labor; and

• Profit or fee, if any.

The CDRs set forth below are fixed for the contract period and is for a productive eight (8) hour day, and apply to all subcontractors set forth in clause 52.244-2 in Section I. If a new subcontractor is

B-2 proposed for a specific task order on other than a fixed-price basis, the CDRs set forth below will apply, and the subcontract is subject to consent by the TOCO in accordance with FAR Part 44.

Actual salaries for all personnel will be negotiated under task orders and final approval is provided by the TOCO. The ceiling rates presented below do not constitute approval of final salary rates above the Contractor Salary Threshold (CST) (see ADS 302).

(2) The single unburdened ceiling daily rate for each labor category/group below represents the mid-level and senior level rate in each category/grouping. One unburdened ceiling daily rate for each labor category/grouping is included in the contract to provide more flexibility under task orders. If junior-level personnel are required under task orders, they must be proposed at rates below the unburdened ceiling daily rate.

# Labor Category Year 1 Unburdened Daily Rate

USD

Year 2 Unburdened Daily Rate

USD

001 Project Manager 001A Senior Level 001B Mid Level

002 Subject Matter Expert 002A Senior Level 002B Mid Level

003 Economist 003A Senior Level 003B Mid Level

004 Subject Matter Specialist/Researcher 004A Senior Level 004B Mid Level

005 IT/Information Management Specialist 005A Senior Level 005B Mid Level

006 Monitoring and Evaluation Specialist 006A Senior Level 006B Mid Level

007 Training/Facilitation Specialist 007A Senior Level 007B Mid Level

008 Lawyer Senior Level 008A Senior Level 008B Mid Level

009 Project Administrator Mid Level

Note 1: The Unburdened Ceiling Daily Rates apply to any task order(s) that are awarded under this contract.

Note 2: The Unburdened Ceiling Daily Rates apply to all locally hired national labor (the prime contractor, subcontractor, and consultant salaries). The labor rates are also governed by the local compensation plan limitations as further provided in note 3 below.

Note 3: Locally Hired National Personnel or Other Non-U.S. Expatriate Rates

B-3

All locally hired national personnel and other non-U.S. expatriates must be paid in accordance with

AIDAR 722.170.

Salaries for individual locally-hired personnel and other non-U.S. expatriates under this contract and any resulting subcontract must be in accordance with AIDAR 752.7007, Personnel Compensation (July 2007), and should be based upon a combination of factors including the prevailing compensation paid to personnel performing comparable work in the cooperating country as determined by USAID and consideration of the individual's education, work experience and recent relevant salary history.

Unless otherwise authorized by USAID, the compensation for CCN and TCN labor must not exceed the prevailing compensation paid to personnel performing comparable work in the cooperating country as determined by USAID and must be paid in the currency of the cooperating country.

Note 4: The Unburdened Ceiling Daily Rates above do not apply to Fixed-priced Task Orders.

Note 5: U.S. Expatriate Rates will be negotiated under task orders and final approval is provided by the

TOCO.

(3) Definition of labor categories:

IDIQ Manager (Project Manager)

The IDIQ Manager provides overall guidance and management of the project; is the point of contact and interaction with USAID; is the lead person in dealing with government, private sector, and academia; and is responsible for the overall performance of the project and shall be responsible for preparing and responding to task order proposals.

Subject Matter Expert

Senior expert with extensive knowledge and experience in subject matter as necessary to suit sector focus of APG Task Orders. Subject matters may include the following areas: Agriculture, Business Environment, Business consultations, Competition, Public Finance, Taxes and Customs, International Trade, Financial Sector, Energy Economics, Water Resource Management, Information Technology, Tourism, Competitiveness, Program Budgeting, Institutional Building, Training. Provides insight and policy advice based on assessments, research and evaluation of the subject matter, as well as provides implementation support. Works with Senior Subject Matter Expert or Economist.

Economist

Provides specialist advice based on the application of economic theory and knowledge, studies data and statistics, and carries out research, analyze data to assess feasibility, produce forecasts of economic trends, determine the implications of findings and make recommendations of ways to improve efficiency. May use specialist software and advanced methods in statistical analysis to assemble, sift and present this information, which is then used to identify the policy choice and recommendations.

Areas of research can cover any aspect of economic and social policy, ranging from interest rates, taxation and trade, levels to energy, transport and international development, agriculture, etc. Work in tandem with Mid or Senior Subject Matter Expert or Economist.

HICD/Facilitation Expert

B-4

Provides expert technical guidance on all aspects of capacity building to the implementing partner, Mission and other stakeholders including, performance assessments, performance solutions design and performance monitoring and management system design. Performs consulting activities to assist clients in activities such as building leadership, performing strategic planning, conducting information analysis, developing process improvements, performing facilitation services, conducting surveys and improving an organization s results. Provides analysis, advice and or implementation assistance on training strategies, delivery and facilitation of training, organizational training capacity, and management of training activities. Also advises on evaluation of training. Provides facilitation support and /or implementation assistance on wrokshops, discussions, focus groups, etc. Works closely with Mid or Senior Subject Matter Expert or Economist.

Subject Matter Specialist/Researcher

Possesses knowledge, some experience, and capabilities in the development of solutions, recommendations, or outcomes across multiple tasks and/or organizations. Supports the development of solutions to address organization’s challenges. Supports project objectives and helps assess the impact of industry/market trends, policy, or standard methodologies. Conducts activities in support of project team’s objectives. Works closely with either Mid or Senior Subject Matter Expert or Economist.

Information Technology/Information Management Specialist

Provides analysis, advice and/or implementation assistance on design, implementation and evaluation of information systems, with an emphasis on computerized systems of information management.

Advises on hardware and software configurations, purchases, maintenance and personnel training requirements.

Lawyer

Reviews and examines national, international and local laws, summarizes the best international practice in commercial laws and business regulations, provides critiques of the exiting legal and regulatory framework in the subject area, assesses the quality of business consultations that pertains to public discussion of laws and regulations. Based on the analysis and assessments provides recommendations on the legal/regulatory framework needed to be pursue respective policy changes.

Reviews draft legislations, drafts new laws and regulations. Works closely with Senior Subject Matter Expert or depending on the TO performs the latter’s role.

Project Administrator

Provides administrative support to task order manager and other personnel. Provides program management support including but not limited to producing and distributing all project related correspondence; maintaining web sites and databases; scheduling meetings and travel reservations;

coordinating study tours, training and other events; coordinating workshop/conference events;

assisting in facilitation of workshop/ conferences; and maintaining document libraries. Ensures that budget analysis and financial reporting requirements are met for the programs. Assists in project management functions of financial planning, program auditing, budgeting, and reporting.

(b) Minimum Qualifications

In order to perform the statement of work set forth in Section C, the Contractor must provide personnel that meet the minimum education and experience requirements set forth below. These minimum

B-5 qualifications for mid-level and senior personnel correspond to the Unburdened Ceiling Daily Rates above.

Level Academic Degree*

Plus Approxim ate Years of Relevant*

* Work Experience

Experience Requirements (Substitution of Relevant Work Experience in Lieu of a Degree)***

Including Years of Experien ce in Int'l Develop ment

Relevant Regional Experien ce

Relevant Language Fluency

Mid MS/MA/MB

A BS/BA

Less than Bachelor's

Senior Ph.D.

8 20

As specified in TO

As specified in TO

As specified in TO JD/ABD 10

MS/MA/MB 12

A BS/BA 15

Less than 20

Bachelor's

Language fluency, relevant regional experience, and international development experience requirements will be specified in individual task orders.

*Highest degree obtained should be related to work being performed.

** Experience should be related to the work being performed.

***Relevant Work Experience is required for the levels indicated.

(c) Subcontractor Rates.

The following provides guidance for various subcontracting arrangements:

(i) The Prime subcontracts with an approved subcontractor from the original IDIQ competition

The unburdened CDR’s for the prime contract apply to the subcontractor.

(ii) The Prime contracts with a new subcontractor not yet approved

The unburdened CDR’s for the prime contract apply to the new subcontractor.

(iii) Prime subcontracts with a new subcontractor not yet approved and may or may not have a different cost accounting system that only processes fully burdened rates. Further, subcontractor proposes rates that are “above” the prime IDIQ rates.

The Prime may then include in its TO proposal, (i) the fully burdened rate proposed to the Prime by the Subcontractor,(ii) allocation of the Prime’s indirect costs in accordance with established accounting

B-6 practices, and (iii) a reasonable profit. If the rates proposed to USAID, inclusive of the Prime’s allocable indirect costs and a reasonable profit are above the Prime’s unburdened CDRs , the Prime must disclose the amount of the indirect costs, and the amount of the proposed profit that were added to the Subcontractor’s proposed rates. A reasonable profit will be negotiated by the TOCO for the specific TO. The CDRs of the subcontractor must not exceed the prime’s CDRs in the IDIQ contract.

B.7 PRICE SCHEDULE FOR TASK ORDER #1

Task Order #1 will be Fixed-Priced type.

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.8 LABOR (UNBURDENED CDR) RATE CHANGES

The labor rates are fixed for all contract years; however, the Contractor may submit a proposal reducing the labor rates and/or indirect rates at any time during the life of this contract. The Government will review these proposals and determine if the revised rates are realistic and in the best interests of the Government. If the rates are accepted, the Government will modify the contract by incorporating the new rates into the contract.

B.9 INDIRECT COSTS

Indirect rates are only applicable to cost reimbursement task orders.

Pending establishment of revised provisional or final indirect cost rates, allowable indirect costs must be reimbursed on the basis of the following negotiated provisional or predetermined rates and the appropriate bases for prime contractors and their major subcontractors.

Offeror Fringe Rate %

Overhead Rate % G&A Rate %

PRIME (Insert Name) Base of Application Source: (insert) Period: (insert) SUBCONTRACTOR(S) (Insert Name (s)) Base of Application Source: (insert) Period: (insert)

NOTE: Insert additional indirect rates as needed for all primes and major subcontractors in the above table.

*Special Note: The un-shaded columns in the indirect cost table are the current approved indirect cost rates for the prime and major subcontractor(s).

B-7

The Contractor will make no change in its established method of classifying or allocating indirect costs that impacts this contract without the prior written approval of the Contracting Officer.

Reimbursement for indirect costs must be at final negotiated rates, but not in excess of ceiling rates specified above.

The Government must not be obligated to pay any additional amount associated with indirect costs above the ceiling rates established in the contract. This advance understanding must not change any monetary ceiling, cost limitation, or obligation established in the contract.

NOTE: For Fixed-priced Task Orders, the overhead ceilings serve as a basis for negotiation only.

Note: Contractors are allowed to recoup indirect costs (OH, G&A, etc.) as other direct costs if it is part of the contractor’s usual accounting procedures, consistent with FAR Part 31 and the contactor’s

NICRA.

B-8

SOL-111-15-000003 SECTION C

SECTION C - DESCRIPTION/SPECIFICATIONS/STATEMENT OF WORK

IDIQ SOW FOR ARMENIA POLICIES FOR GROWTH (APG)

C.1 OVERVIEW

The purpose of this two year activity is to improve and liberalize economic policies in Armenia through provision of analytical research and expertise, building constructive policy dialog and capacity of policy makers.

The Activity will contribute to the economic growth development objective. The project has clearly defined components and will be focused on reducing policy gaps in the areas of competitiveness, business environment, macroeconomic environment, as well as provision of sectorial analysis in the areas such as agriculture, tourism, water, and energy. However, it is also designed to have sufficient program flexibility to respond rapidly and effectively to “windows of opportunity” such as new economic reform opportunities or requirements, as well as unexpected domestic, regional or international economic and business developments policy changes. As such, the contractor for APG must have a high level of managerial and technical competence in core program component areas, while maintaining sufficient flexibility to respond to critical USAID, Government of Armenia (GoAM), private sector and NGO program assistance needs on a “demand-driven” basis.

The Mission expects the implementer of this activity will be local institution or institutions partnered with an international institution(s). Armenian institution(s) and individual experts shall partner with an international institution to get an access to the best international expertise in specialized areas for which the IDIQ and task orders will call. As local capacity building efforts bear fruit, the involvement of the international partners is expected to go down. Assistance to develop Armenian institutions is not to be limited to the implementing partner institutions. There will be no resident advisor stationed long-term in Armenia. International experts will be recruited based on specific tasks or needs in the project management, technical assistance, and training, although the bulk of experts for short term assignments are expected to be Armenians.

This Single Award IDIQ activity will serve as a framework under which task orders will be issued by the Mission. The task orders can be for a specific action over some time period which can extend for the life of this activity or for a range of actions over a given time period, e.g., a quarter or year.

C.2 BACKGROUND

C.2.A. Economic Policy Strategic Setting and Challenge

Armenia’s main challenge is that the country is not yet on a trajectory of sustainable growth capable of creating substantial employment opportunities and materially reducing the incidence of poverty.

Armenia must become more competitive in global markets, increase exports, and, hence, increase employment, reduce poverty, and achieve a faster economic growth that, furthered by some specific interventions, is more inclusive and sustainable. Armenia’s joining to Eurasian Customs Union adds a layer of complexity to these objectives.

USAID/Mission is employing two basic approaches to promote faster growth in the Armenian economy: 1) improve conditions under which the economy operates to encourage private

C-1 sector-led growth and 2) assist particular sectors to grow faster.

The USAID/EG strategy aims at Armenia being on a faster growth path for inclusive and sustainable economic growth.

C.2.B. Priorities of Armenia and Local Stakeholders

The GOAM’s priorities and long-term development vision are defined in the Armenian Development Strategy 2013-2025 (ADS). This activity is fully aligned with the ADS’s goal of achieving strong annual GDP growth which will generate employment to improve living standards. The ADS clearly demonstrates GOAM’s priorities for economic reform. This activity is highly responsive to GOAM priorities and requests, particularly in civil aviation, business and investment climate, sectors of tourism, IT, and agriculture, and SME support. In implementation this activity will build on the momentum of the last few years and work closer with the GOAM. This activity will also assist as needed other USAID activities aimed at financial, tax, custom, water, and energy reforms and, as other activities end, assume a greater role in taxes, customs, and finance sector.

C.2.C. Other Donors

USAID/Armenia plays an important and pivotal role within the donor landscape. Having been the largest bilateral donor over the past twenty years, USAID leads assistance efforts, especially in economic reform. USAID/Armenia is a key provider of technical assistance that complements the direct budget support and government loans provided by other donors. The donors involved in policy work are: International Monetary Fund’s (IMF), the World Bank’s (WB), the European Bank of Reconstruction and Development (EBRD), the Asian Development Bank (ADB), and KFW (the German bilateral assistance agency)

C.2.D. Other Economic Growth Activities

This activity shall work closely with the USAID Economic Growth Office projects to provide policy/regulatory support as will be needed. The most relevant current activities are: Partnerships for Rural Prosperity (PRP), Advanced Rural Development Initiative (ARDI), Development of Private Extension Service System in Armenia (DPESSA), Finance for Economic Development (FED), and the Tax Reform Project (TRP), Pension Reform Implementation Project (PRIP) and Support to the Ministry of Economy for Aviation and Tourism Sector Reforms Project.

C.3 OBJECTIVE

This activity’s overall objective is to liberalize the economic policy framework by addressing relevant policy gaps through analytical research, embedded support and limited capacity building of relevant stakeholders.

C.4 SCOPE OF WORK

Contractor duties include provision of technical and advisory services, training, research, and other services to GOA, universities and research institutions, NGOs, business associations, USAID/Armenia and its economic growth activities through the execution of task orders.

C-2

C.4.A. CORE TASKS

The Contractor shall perform or manage performance of two core tasks:

• Implementation of Task Orders

• Local capacity building, knowledge management and institutionalization

C.4.A.1. IMPLEMENTATION OF TASK ORDER SERVICES:

The Contractor shall undertake the preparation of proposals in response to task orders that include:

• TECHNICAL ASSISTANCE PROVISION. This includes both advice and implementation support to GOAM, universities and research institutions, NGOs, business associations, USAID/Armenia and its economic growth activities. It also includes problem diagnostics and analysis, program/project/task design, research, assessment, evaluation, program/task recommendations, and strategic planning at the level of the: public or private institution, local authorities, regional organization, and Government body (ministry, agency).

• CAPACITY BUILDING. This includes training, institution building, hands on assistance, proposal writing, funding rising, building databases and libraries, etc. for both implementing partners and others. The contractor will be tasked with facilitating dialogue amongst different groups and stakeholders regarding capacity building vital to achieving development objective.

• TRAINING. This includes on the job training; workshops and training courses; training materials, and in house programs;

• APPLIED RESEARCH. This is aimed at conducting analysis and data gathering to meet specific priority needs for understanding and solving technical, policy, or strategic issues.

The Contractor shall respond to government request for priority policy, legal, or regulatory analysis.

• TASK ORDER IMPLEMENTATION. This includes: a) provision of logistical support for task implementation teams, supervision of task implementation team. Also, implementation in: a) program management, b) transactions facilitation, c) commodity procurement, d) work with international institutions to attract international experts, and d) monitoring and evaluation and assessment.

• SUBCONTRACTING: This activity in implementing task orders is likely to do subcontracting with international and Armenian entities.

C.4.A.2 LOCAL CAPACITY BUILDING, KNOWLEDGE MANAGEMENT AND

INSTITUTIONALIZATION

• DONOR AND KEY STAKEHOLDERS COORDINATION: Work closely with representatives of other development assistance institutions to coordinate programs and policies. Work closely with government, private sector, non-government, and private voluntary organizations, and use local expertise. Where appropriate, the contractor shall work to develop the collective capacity of multiple organizations in order to enhance their potential to work

C-3 together in areas of mutual interest.

• INFORMATION DISSEMINATION: Disseminate lessons learned, best-practices, and professional training in appropriate multimedia format. Conduct seminars, workshops, conferences, publications, blogs, chat rooms, web site, etc.

C.4.B. AREAS OF SERVICES

This activity shall provide the above services in such areas as below, as specified in each task order written under this activity.

1. COMPETITIVENESS. This includes all the policy areas relevant to global competitiveness.

2. BUSINESS ENVIRONMENT. This includes the laws, regulations, and practices that affect the ease of doing business, the operations, and/or profitableness of enterprises, both domestic and foreign.

3. MACROECONOMIC POLICY. This includes fiscal, tax, monetary, banking, central bank, trade, investment, and exchange rate policies.

4. SECTORAL ANALYSES AND POLICIES. Of particular interest are policies related to agriculture, tourism, information technology, energy, water, and financial sector.

5. DATA FOR POLICY ANALYSIS. This includes such areas as censuses, national income accounts, poverty measurements, inflation, sector statistics, tracking performance, and policy-oriented modeling.

C.4.D. IMPLEMENTATION AND PROGRAM MANAGEMENT The Contractor shall provide contract management necessary to fulfill the requirements of this Contract. This includes cost and quality control of all tasks orders.

The Contractor shall be guided in the implementation of this contract and task orders under it by the following operating principles and cross-cutting themes.

Gender - This activity is expected to adopt a gender sensitive approach in implementation, especially in considering the gender implications of policies and sector support actions.

Bio-Diversity – Armenia’s bio-diversity is under serious threat. The biggest threat is from the acceleration of mining, industrial/commercial construction, and unsustainable use of natural resources. Armenia’s policy framework governing biodiversity implementation has been limited and hence systems in place are not adequate for protecting ecosystems. This activity needs to be aware of and take into consideration these issues in implementing task orders.

C.5 COORDINATION WITH HOST COUNTRY COUNTERPARTS AND OTHER

IMPLEMENTERS

C-4

This activity will coordinate primarily with the Ministry of the Economy as its chief host country counterpart. As mentioned earlier, this activity will also coordinate as appropriate with other activities of USAID and those of the donors and multilateral institutions.

C-5

C.6 SOW FOR TASK ORDER #1

ARMENIA AGRICULTURAL POLICY STRATEGY AND ACTION PLAN (APSAP)

A. BACKGROUND

Agriculture accounts for 19 % of the GDP and employs 37% of the population. This is an important sector from the economic growth, rural development and food security perspective. The intent of this TO is to identify areas where there are policy gaps that prevent Armenia’s agricultural and rural areas for reaching its full potential.

This includes looking at: inputs, crop selection, production, plant protection-including pest control and weather, crop insurance, irrigation, extension, value addition, credit, tax and tariff structure, regulations, marketing, grade and quality standards, and domestic market/export promotion and creation of cooperatives, all with the objective of increasing rural incomes. Given the increasing importance of fish exports, this study will also explore the policy bottlenecks for sustainable fish farming and possibly livestock.

The primary client of this study will be the GoA Ministry of Agriculture, with other supporting GoA instructions, academic institutions and donors. USAID will use the information and recommendations contained in this study to plan and strategically provide TA as necessary.

The end product will recommend policy changes to incentivize the commercialization and value-add of domestic agricultural production, ensure food security, and foster export to maintain traditional markets and explore new potential markets. The contractor will also assess the potential impact of Armenia’s accession to Eurasian Customs Union (ECU) and devaluation of Russian Ruble effects on domestic agricultural production, commodity prices and agricultural product export to ECU and non-ECU markets.

The Contractor will work closely with the MOA to focus its analysis on the areas that are strategically important. It will provide relevant policy analysis and advice to MOA. This analysis will also inform USAID with its future programs. The plan will also reflect on strengthening the capacity of Armenian institutions to analyze, educate, and advocate for agricultural and agribusiness policy issues, and identify the best policy coordination and consultation mechanisms among the MoA, relevant Government of Armenia (GOAM) institutions and key stakeholders.

The agriculture policy strategy and action plan is expected to be based on careful analysis; extensive consultations with the GOAM (particularly the MoA), and key stakeholders. Mapping of institutions should be done to suggest organizations that could effectively run consultations with the government on a wide spectrum of issues related to enabling environment for agricultural policy development. Consultations should be undertaken with the MoA, GOAM, business community, policy research institutions, and civil society and steps to be taken to improve enabling environment for agriculture, market linkages.

Donor coordination also should be taken into consideration to shape the action plan. In 2015 European Union has launched the European Neighborhood Program for Rural Development Armenia (ENPARD Armenia).

C-6

ENPARD is aimed at supporting sustainable agricultural and rural development through development of farmers’ groups and value adding chains throughout Armenia.

The TO is for six months, although the majority of the work is expected to be completed within the first four months.

In response to this TO the Contractor is expected to submit for review:

1) Proposed technical approach on how to achieve results specified in the TO

2) Proposed Implementation plan/work plan with timetable

3) Proposed staffing with CVs and level of effort, and

4) Proposed budget.

The Contractor will take into consideration USAID’s comments in preparing the final proposal. If acceptable, the Task Order Contracting Officer will approve the proposal for implementation.

B. PURPOSE AND OUTCOMES

The purpose of this TO is to: 1) carry out a comprehensive assessment of the agricultural sector and food security situation in the country; 2) identify the main policy issues needed to be addressed based on the outcomes of the sector comprehensive assessment; and 3) propose the agricultural policy strategy and action plan (APSAP). The APSAP, developed in close coordination with the GOAM and USAID, will guide actions over the next four years by Armenian institutions (particularly the MoA), donors, and other stakeholders.

The plan should contain the timetable, log frame, risk analysis, sustainability analysis and budget for the strategy implementation. The plan should also cover actions to strengthen the capacity of Armenian institutions to analyze agricultural policy issues and to educate policy makers as well as the general public.

This TO is expected to contribute through preparing APSAP to the following outcomes:

1. Improved Armenia’s prospects for more efficient, profitable, and sustainable agricultural sector through improved agricultural policies and enabling environment.

2. Strengthened MOA, capacity in analyzing, assessing, and implementing agriculture policies with an aim to improve the sector performance, enhance food security, improve competitiveness of agricultural sector, and facilitate inclusive economic growth.

3. Strengthened capacity of key stakeholders to: a) access relevant data for proper policy analysis;

b) analyze economic/agricultural policy issues; c) pass proper legislation; d) educate stakeholders about these policies; and e) advocate for sound and relevant agricultural policy action.

The strategic plan and subsequent action plan is expected to reflect careful analyzes, extensive consultations, and practical realism.

C. SPECIFIC TASKS

Specific tasks under this TO are categorized into the following main directions: a) agricultural production, 2) access to markets and commercialization, 3) policy, and 4) capacity building.

Direction on strategic areas should be obtained from the Ministry of Agriculture to ensure that

C-7 analysis are targeted and aligned with the strategic framework of the agricultural development. The analysis should contain a logical framework of major problems and obstacles, along with causes and symptoms, and provide recommendations.

1. Agricultural production

The Contractor will study crop, fish and livestock production and identify the promising sub-sectors that have the highest production and export potential, as well as relevance to food security. These analyses should include the following as relevant:

• Assessment of natural resource base, climate conditions for production;

• Appraisal of the state of agricultural inputs, including irrigation, fertilizers, credit, plant protection, energy and other resources needed for production;

• Economic analysis of production of crops, fish and livestock in terms of food security, self-sufficiency, profitability and export potential;

• SWOT and comparative advantage analysis of the main agricultural production sub-sectors.

2. Access to markets and commercialization

These analyses should outline the state of supporting infrastructure and services that facilitate value addition and access to value chain development, greater local and international markets. Indicative areas of assessments include:

• Appraisal of the sectors’ and value chains’ capacity to generate domestic and export agricultural trade;

• Assessment of commercially available storage and harvest capacity, availability of extension services;

• Access to market information, technology, and finance;

• Degree of small producers cooperation/integration to reach established markets;

• Appraisal of the product quality standards and grading system;

• Assessment of capital investments and financing to promote commercialization;

• Analysis of how accession to ECU will impact agricultural production and trade;

• Assessment the tariff and non-tariff barriers on production of the major Armenia commodities, how the ECU rules will affect the competitiveness of the Armenia commodities in EU and ECU markets;

• Assessment of the impact of Armenian Dram depreciation on agricultural inputs, production, and markets.

Thorough analysis should be also conducted of the sub-sectors which USAID currently supports through existing projects: Partnerships for Rural Prosperity (PRP), Advanced Rural Development Initiative (ARDI), Development of Private Extension Service System in Armenia (DPESSA), Finance for Economic Development (FED), and CARD. The analysis should contain a logical framework of major problems that these sub-sectors face, along with causes and symptoms.

3. Policy

Assessment of current agricultural policy agenda in Armenia: In Cooperation with the MoA review the Law on Agriculture and relevant legislation, such as draft Law on Cooperatives for adherence to the international best practice, fit to the local context and suggest necessary legislative adjustments as appropriate. Review the draft Land Market Report and analyze pros and cons of the suggested

C-8 approach for rural land market development and management. This will include review of the objectives of the agricultural policy (e.g. food security Vs commercial viability), how effective is the existing policy mix in trying to address some of the market failure and economic constraints. This review should involve MOA and other involved Armenian institutions. The Contractor will assess how it fits within a broader economic growth and poverty reduction frameworks for the upcoming five years. The focus should be on identifying issues for action in agricultural production, harvest, inputs, end product marketing, and trade areas that are deemed problematic by the mentioned above assessment indicated in Task 1and 2. It should include the political economy of the issues, e.g. who are the losers and winners, why is the situation the way it is (who is gaining or blocking change), etc.

The work should be a mix of literature review, original research and opinions of experts. In close cooperation with USAID, the analyses should proceed in steps where decisions are made to go deeper into selected policies or actions that will have maximum effect on suggested sub-sectors development. In analyzing the business environment, attention should be given to tax, customs, trade and investment, tariff and non-tariff barriers, access to financing and capital, and export promotion.

Appraisal of the government’s current subsidy and intervention systems: This will include analysis of positive and negative outcomes of the government subsidy policy and interventions on the identified sub-sector level in any of the following areas: inputs, agricultural production, harvest, storage, end product marketing, and trade, export Assess what are the social and economic cost-benefits of the policy response.

Assessment of Armenia’s integration into EU and ECU markets: This will outline what policy action should be taken to remove impediments to trade. What is the estimated diversion of imports, exports and trade balance and respective policy response needed to address the threats and adjust to changing geo-political and economic conditions?

Recommended policy mix: Provide a matrix of suggested policy actions based on outcomes of agricultural assessment, indicate the market failure or constraint to be addressed and identify the potential outcome to be seen at the end of the strategy period. Indicate the policy trend for specific categories of policy actions.

4. Assess the capacity of the MOA, policy research institutions and other key stakeholders.

Evaluate the policy analysis capacity of a) MOA, b) universities, and c) think-tanks. In analyzing capacity, attention should be given to core functions of the MOA with respect to addressing the agriculture policy, the human and institutional capacity of the latter to engage in research, policy making and legislative drafting. Examination of data needs for proper statistical analysis and policy research is important. Also, attention should be paid on how to ensure the MOA-university (as Agricultural Academy, ATC, etc.) and relevant think-tanks linkages aimed at ensuring the high quality and impartial policy research.

Evaluate legislative committees’ (National Assembly) capacity to understand the agricultural policy implications while passing laws in Parliament.

Finally, it is also important to assess the qualifications of individual researchers and to organizational capacity to engage in research, education, and advocacy. Included should be the objectivity, financial sustainability, and effectiveness of the organizations.

5. Develop an agricultural strategy and action plan.

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The agricultural policy strategy and action plan for the next four years should include specific steps, actors, timeline, milestones, etc. for implementation by involved Armenian institutions and USAID.

Within this context, the strategic plan will also address the issues of MOA capacity building and relevance and effectiveness of policy dialog with other government agencies, creation of support institutions and infrastructure, local research capacity building, and availability.

The plan should be implementable over the timeframe that strategically makes sense for seeing significant impacts in improving the situation and in encouraging more inclusive and sustainable economic growth. The plan is expected to be based on careful analyzes, extensive consultations, and be practical and based on the reality of the situation. The plan should be based on depth understanding of the underlying political economy of the issue and clear approach to bringing about change.

In addressing the steps to be taken for capacity building consideration should be given, among other possibilities, to developing or strengthening of local degree programs in, for example, agricultural policy with a heavy economics concentration, institutional support, and visiting scholars.

The APSAP should cover actions aimed at introducing the best policy coordination and consultation mechanisms among the MoA, relevant GOAM institutions and key stakeholders. The plan should ensure that the process is inclusive. The plan will generate appropriate information on the status, potential and constraints of the sector in order to facilitate decisions on the direction, methodology and scope of actions for the sector to contribute to the national priorities of food security and nutrition, productivity, investment, income and employment. Generate information for the formulation of an Agriculture and Food Security Strategy

D. STAFFING AND ACTIONS

Below are an illustrative suggestion on staffing and various actions that are needed to carry out this TO. The Contractor is encouraged to make its own counter suggestions. The team should include, at a minimum:

• Senior agricultural economist/economist,

• Economist/finance specialist,

• Political/trade economist,

• Institutional capacity building expert, and

• Facilitation expert.

The latter is needed since it is also anticipated that there will be focus group, workshops, consultations held to get a stakeholders’ buy-in and consensus on the issues to be reviewed at each stage of APSAP development.

E. DURATION, LOCATION, AND LEVEL OF EFFORT

The TO is for six months, although the great bulk of the work is expected to be completed within four months. The work on the TO will be done mainly in Armenia.

Some preparatory work and report preparation may be done outside Armenia (if relevant).

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SOL-111-15-000003 SECTION D

SECTION D - PACKAGING AND MARKING

D.1 BRANDING STRATEGY, IMPLEMENTATION PLAN AND MARKING PLAN

The cover page of all report deliverables required in Section F. must include the USAID Identity (or the name of the Agency written out) prominently displayed, the Contract number (see the cover page of this Contract), contractor name, name of the USAID project office, the publication or issuance date of the document, document title, author name(s), project number, and project title. Descriptive information is required whether contractor-furnished products are submitted in paper or electronic form. All materials must include the name, organization, address, and telephone/fax/internet number of the person submitting the materials.

D.2 752.7009 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 semifinished 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…