Draft_RFP-ATLAS-3-7-2013.pdf

DRAFT REQUEST FOR PROPOSAL NUMBER: SOL-112-13-000003

Azerbaijan Trade Linkages and Agribusiness Strengthening (ATLAS) Project

PART I - SCHEDULE

SECTION B - SUPPLIES OR SERVICES/PRICES

B.1 PURPOSE

The purpose of the Azerbaijan Trade Linkages and Agribusiness Strengthening Activity

(ATLAS) Project is to support the development of agriculture in Azerbaijan and promote the diversification of the economy away from the oil sector by addressing the administrative barriers that hinder the development of micro, small and medium enterprises in the non-oil sector.

B.2 CONTRACT TYPE

This is a Cost-Plus-Fixed-Fee (CPFF) Completion Contract. For the consideration set forth below, the Contractor must provide the results, deliverables or outputs described in Sections C and F and in accordance with the performance standards specified in Section F.

B.3 ESTIMATED COST, FIXED-FEE, AND OBLIGATED AMOUNT

(a) The estimated cost for the performance of the work required hereunder, exclusive of

Fixed-Fee, if any, is $TBD. The Fixed-Fee, if any, is $TBD. The estimated Cost-Plus-

Fixed-Fee, if any, is $TBD.

(b) Within the estimated Cost-Plus-Fixed-Fee (if any) specified in paragraph (a) above, the amount currently obligated and available for reimbursement of allowable costs incurred by the Contractor (and payment of Fee, if any) for performance hereunder is $TBD. The

Contractor must not exceed the aforesaid obligated amount.

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

B.4 PRICE SCHEDULE

Cost Category Amount

Direct TBD

Indirect Costs TBD

Grants Not to Exceed $1,500,000

Fixed-Fee TBD

Total Cost-Plus-Fixed-Fee $TBD

- The Contractor must not reduce the amounts associated with the Cost Category entitled

Grants without the prior written approval of the Contracting Officer.

- The Contractor must not transfer funds between any Cost Categories without the prior written approval of the Contracting Officer.

- The Contractor agrees to furnish data, which the designated Contracting Officer's

Representative (COR) may request on costs expended or accrued under this Award in support of the budget information provided herein, as and when applicable.

- END OF SECTION B -

SECTION C - DESCRIPTION/SPECIFICATIONS/STATEMENT OF WORK

March 7, 2013

C.1 TITLE

C.2 SCOPE

The Contractor will provide non-personal services to provide technical assistance to achieve competitiveness in the non-oil sector. The Contractor will achieve this through interventions in the agricultural sector and in the trade regulatory environment.

Expected results of this activity are:

- the quantity and quality of agricultural goods produced will increase;

- there will be more education/knowledge-sharing on agricultural production and market options; and

- the trade regulatory environment for businesses will improve.

C.3 BACKGROUND

These activities support the Government of Azerbaijan’s (GOAJ) development goals, the U.S.

Government’s (USG) interests in the country, and USAID’s Country Development Cooperation

Strategy (CDCS). The overall goals of USAID assistance in Azerbaijan are to support

Azerbaijan’s reform process by promoting competition and pluralism in society to lay the foundations for a sustainable market-based democracy.

The USG views the development of the non-oil sector in Azerbaijan as necessary for the long-term development of the economy. It views two areas in particular as key in achieving this goal.

The first is the trade and regulatory environment. The second is the development of the agricultural sector. Over the past nine years, it has undertaken several activities that were designed to address these two areas.

In March 2000, USAID launched the three-year Participatory Agriculture Project in Azerbaijan

(PAPA) that was designed to work in livestock and hazelnuts to increase market responsiveness of client firms and developing private membership associations which would provide services and become financially self-supporting.

In January 2002, USAID launched the three-year Agri-Input Market Development (AMDA)

Project that was designed to build an inputs supplier network and association to promote and support agribusiness development (trade associations, policy reform, and technical advice) and assist individual agro-enterprises to start new ventures, expand and modernize existing facilities, and access credit.

In September 2003, it launched the five-year Rural Enterprise Competitiveness Project (RECP) that was designed to improve domestic product quality and expand focus on competitive products.

In August 2004, it launched the five-year Azerbaijan Business Assistance and Development

(ABAD) Project that was designed to build the productive capacity of targeted communities and establish rural information services and outreach campaigns for targeted communities.

In August 2007, USAID launched the three-year Trade and Investment Reform Support Project

(TIRSP) that was designed to improve the transparency, predictability, and market-friendliness of the trade and investment policy and institutional environment in Azerbaijan, to support further progress towards WTO accession and build the capacity of institutions to comprehensively implement the WTO Agreement. It also supported the Government’s efforts to develop a transparent and efficient trade and investment enabling environment and provided training on cost/benefit analysis in various public sectors, including water, energy and education.

In September 2007, USAID launched the two-year (which was extended) Financial Sector

Support Project (FSSP) in Azerbaijan that was designed to strengthen the financial sector through work with the Central Bank of Azerbaijan (CBA) and some commercial banks. In particular, it provided support on bank supervision, anti-money laundering, human resources management, information management, macro and monetary policy, and financial services for Small and

Medium Enterprises (SMEs).

In September 2008, USAID launched the two-year Private Sector Competitiveness Enhancement

Project (PSCEP) that was designed to enhance the competitiveness of targeted non-oil sectors and sub-sectors in order to promote economic diversification and sustainable expansion of investment and employment in the Azerbaijani economy.

In October 2009, it launched the three-year Community-Based Support to Producers of Dairy

Products Project that was designed to expand dairy production of small/medium sized farmers and promote regional collection center linkages to commercial processors for the sustainable development of the existing private dairy farming households and small farmers.

In September 2010, it launched the three-year Azerbaijan Competitiveness and Trade (ACT)

Project that was designed to improve the domestic business enabling environment; develop a liberalized, more transparent trade environment; and improve targeted value chains (apples, hazelnuts, pomegranate, dairy, and aquaculture) in the agricultural sector in Azerbaijan.

In April 2012, it launched the Micro-Enterprise Support Project (MESP) whose goal is to contribute to a more conducive environment for the sustainable development of Micro and Small

Enterprises (MSEs) in Azerbaijan by improving the dialogue and interaction between the state and civil society on policy issues related to development of micro and small enterprises;

improving the legislative and institutional framework for MSEs; and providing assistance to women-led home businesses to improve their viability.

In September 2012, it launched the Youth Business Leadership (YBL) Project to provide internships and mentorships to third and fourth year university students.

In addition to these projects, USAID also initiated two loan guarantees with four commercial banks in order to increase the amount of credit available to micro, small, and medium sized enterprises especially in the agricultural sector.

C.4 OBJECTIVES

The objectives of the Azerbaijan Trade Linkages and Agribusiness Strengthening (ATLAS)

Project are to support the diversification of the economy through initiatives that assist small and medium sized agribusinesses and farmers to grow, and to improve the trade regulatory environment by assisting the Government of Azerbaijan to reduce the barriers to competition and trade that still exist.

For the purposes of this Contract, small and medium agribusinesses and farmers are defined as individuals and businesses that are engaged in commercial and/or market oriented farming practices as their main source of income

USAID envisions that the successful completion of the ATLAS Project will support its

Development Objective (DO) 1 - Improved investment climate in Azerbaijan by targeting two

Intermediate Results (IRs) that support this DO:

- IR 1.1 - Improved economic governance in legislative and regulatory areas; and

- IR 1.3 - Improved competitiveness in target sectors

It is believed that by making improvements to the economic governance in legislative and regulatory areas and improving the competitiveness of private sector businesses, the investment climate will improve. This, in turn, will encourage local businessmen and foreign businesses to invest in Azerbaijan leading to more employment opportunities and development outside of the oil-sector. By improving the competitiveness of agribusinesses and small and medium sized farmers sectors through improvements in quality, quantity, and other efficiencies, this sector will be able to compete in local, regional, and world markets and contribute to the diversification of the economy.

This DO will complement two other DOs which will support USAID’s overall development goal of supporting Azerbaijan’s reform process, promoting competition and pluralism in society to lay the foundations for a sustainable market-based democracy.

- DO 1 - Improved investment climate in Azerbaijan;

- DO 2 - Effective participation of diverse actors and institutions in the democratic development of Azerbaijan increased; and

- DO 3 - Increased access to quality health care and targeted social assistance through strengthened practices and systems.

C.5 RESULTS EXPECTED FOR THIS CONTRACT

1. Result 1. Improved quality and quantity of goods produced.

Azerbaijan imports some of the food which it once produced. The agricultural sector is dominated by small landholders who produce and sell goods in the local markets as a means to earn extra income and are not commercially-oriented farmers. Therefore, many farmers do not or cannot make significant investments in land, equipment, and training in order to improve the quality of their products and increase their production. In addition, processors often do not comply with international standards in food safety which limits their ability to compete with imported products. The Contractor must:

- work with some large farms (for example Garabagh farm and other big farms established in Aghjabedi and Beylagan districts) and medium-sized farmers that show a willingness and ability to invest in their operations and become commercially viable farmers that produce products in a sufficient quantity and quality to compete in local or export markets;

- work with processors, traders, cold storage operators on improving their adherence to international standards;

- work with agribusinesses in accessing foreign markets, promoting exports, and exploring foreign direct investment opportunities;

- work with commercial banks to assist them in increasing the size of their loan portfolios targeting the agricultural sector.

Illustrative Indicators

- Increased quantity of targeted farm products exported;

- International food quality standards in line with EU requirements are in place;

and

- Number and amount of loans for agribusinesses increased.

2. Result 2. Good agricultural practices implemented.

In order for farmers to improve their agricultural production, they will need to be exposed to newer production techniques, marketing opportunities, plant and animal varieties, and equipment. The Contractor must enhance farmers’ awareness and knowledge about these improved means of operation through on-the-ground training and demonstrations in cooperation with Government extension agents, other agricultural projects, and existing education systems.

- Increase in number of extension workers trained; and

- Number of farmers using new agronomy practices.

3. Result 3. Trade and regulatory environment for micro, small, and medium businesses improved.

The GOAJ wishes to further integrate into the global economy and see Azerbaijan’s businesses compete in world markets. To enable businesses to compete with international businesses, the environment must be conducive for businesses to seek opportunities and grow without unnecessary administrative barriers that would limit trade, competition, and investment. The goal of ATLAS is to help increase the benefits of economic growth and simultaneously support development of more transparent regulatory regimes by removing administrative barriers that inhibit competition, distort investment, constrain trade, and limit progress in Azerbaijan’s integration into the global economy.

The Contractor must contribute to the harmonization of Azerbaijan’s trade and investment regimes (legislative and institutional) with international standards and recognized best practices, such as CODEX Alimentarius Commission, International Plant

Protection Convention, and International Organization for Animal Health (OIE). The

Contractor must support trade-related institutional capacity building in the GOAJ so that it can conclude its trade negotiations and craft beneficial trade and economic policies that promote vibrant trade and business activity. The policy changes that GOAJ will make while preparing for World Trade Organization (WTO) accession and that are prerequisites for entry will be beneficial in-and-of themselves. Removing trade barriers and opening up new opportunities will give businesses and farmers increased opportunities to sell products and earn income.

- The country is WTO accession ready;

- Implementing regulations to Competition Code are drafted; and

- The GOAJ is holding public outreach events and hearings on legislation to increase the public’s awareness and involve them in the reform process.

C.6 COORDINATION WITH GOAJ COUNTERPARTS, USAID ACTIVITIES AND OTHER

DONORS

The Contractor must coordinate with a variety of stakeholders as described below in order to keep others informed of activities (progress made, new initiatives, obstacles hindering implementation, etc.); ensure that efforts are not duplicative of what others are doing; identify areas of cooperation and joint-financing; and, ensure that communication channels are open.

1. Specific Roles and Expectations

The Contractor must regularly attend and actively participate in all donor coordination events in Azerbaijan, and, if necessary, organize and lead such coordination events. In addition, along with USAID Mission personnel, the Contractor must regularly meet with

Government of Azerbaijan counterparts in order to keep them informed of the activities.

Finally, the Contractor must regularly meet with the USAID Contracting Officer’s

Representative (COR) as described in the Contract.

2. GOAJ Counterparts

The Contractor must work closely with Government counterparts, not least because the

Government of Azerbaijan is co-financing the activity. In addition, Government of

Azerbaijan buy-in is needed to achieve the desired goals particularly with any initiative involving legal and regulatory reform. This will also ensure that the outcomes are sustainable. The main Government of Azerbaijan counterpart is the Ministry of

Economic Development (MOED). Other key Government bodies include the Ministry of

Foreign Affairs (MFA), the Central Bank of Azerbaijan (CBA), the Ministry of Finance

(MOF), and the Ministry of Agriculture (MOA).

3. USAID Activities

The Contractor must coordinate with other USAID activities in Azerbaijan, particularly the following two activities:

a. Building Local Capacity for Development (BLCD) Project

The Building Local Capacity for Development (BLCD) Project supports increases in the organizational and technical capacity of selected civil society organizations (CSO) active in engaging citizens in democracy, governance, health and economic reform efforts. The project aims to assist up to 20 USAID-selected Azerbaijan CSOs to develop into mature organizations operating at high professional levels, enabling them to effectively engage with their constituents, successfully support national initiatives for fostering strengthened democracy and good governance and fostering informed citizen engagement in public interest policy dialogue with the Government of Azerbaijan (GOAJ). Three objectives help guide implementation: 1) strengthen the organizational and technical capacities of key CSOs engaged in national, regional and community public interest agendas; 2) develop highly professional local CSO Resource Center(s), accessible to smaller and less capable CSOs working on public interest agendas;

and 3) improve legal and regulatory frameworks to safeguard CSO enabling environments, sustainability and independent CSO public interest agenda roles.

b. Socio-Economic Development Activity (SEDA)

The purpose of Socio Economic Development Activity (SEDA) is to increase citizen participation in governance to address regional socio-economic development needs. SEDA addresses the dual challenge of development in regions outside of Baku and lack of opportunity for citizens to engage with their

Government on issues that affect their lives. The project works to establish participatory mechanisms through which key stakeholders can identify and prioritize their social and economic needs at the regional and community levels.

It also addresses those needs through grants for small infrastructure and citizen participation projects.

4. Other Donors

- Asian Development Bank (ADB) - primarily provides loans to the Government for infrastructure projects, such as secondary roads, industrial plants, water, and sanitation.

- Austrian Embassy - is partnering up with tourism schools and companies which plan to build big resorts in the Shakhdag region.

- Cooperative Biological Engagement Program (CBEP) - this program with the

Azerbaijan State Veterinary Service (SVS) focuses on the development of infrastructure, knowledge and skills to improve bio surveillance for especially dangerous pathogens in Azerbaijan.

- European Bank for Reconstruction and Development (EBRD) - will continue making equity investments and loans. In addition, it is planning to start a new project to support women in business and training for consultants, funded in cooperation with EU and covering the years 2013-2015. It will also work with the World Bank on the development of capital markets and maybe provide some training for Baku Stock Exchange specialists. The European Union (EU) has pledged additional funds of €5 million to support the EBRD’s Turnaround

Management (TAM) and Business Advisory Service (BAS) Programs for use in the Eastern Partnership countries, including Azerbaijan. TAM/BAS provide micro, small and medium-sized enterprises with direct assistance from experienced business advisers and consultants, helping them to adapt to the demands of a market economy.

- European Union (EU) - has a budget support program focused on food safety and which will end in 2012; a twinning project with the State Veterinary Service on preparing for a system for the identification and traceability of animals and which ends in 2013; a project to develop a Farm Data Monitoring System and collect and analyze statistics to support food security policies and which ends in

2013; and, to enhance the institutional capacity of the vocational and technical bodies of the Ministry of Education and the other beneficiary institutions to extend the on-going VET strategy reform to the VET sector of agriculture which ends in 2013. It is preparing a new Rural Development Project. It is anticipated to start the first pilot project in 2013 with a budget of €3 million. Another program €3 million will start towards the end of 2014 to provide grants for

NGOs. EU is waiting for approval of its institutional reform plan related to trade and investment. With a €6 million budget, the program will cover customs, taxes, and agriculture. It is currently at the Cabinet of Ministers for comments.

Specific actions, projects and instruments will be identified at a later stage, but the key objective will be to expedite WTO accession.

- Food and Agriculture Organization (FAO) - focuses primarily on animal health and disease surveillance and control. It currently has eight projects including forestry, animal disease buffer zone project (regional), statistics in food balance, developing a seed policy and livestock strategy, establishing a bio-tech lab, and capacity building for the Ministry of Agriculture on marketing.

- Deutsche Gesellschaft fur Internationale Zusammenarbeit (GIZ) - works on local economic development initiatives, some of which are related to agriculture such as promoting quality in agricultural products. It focuses on private sector development, specifically, trade (export of agricultural products, developing the skills of SME exporters), local Government capacity building, and sustainable development.

- Government of Japan (JICA) - has a small grant project focused on irrigation in eight villages of Barda and Agjabedi. JICA also provides trainings to

Government officials in various sectors. The agency regularly sends 20-25

Government officials for trainings to Japan but otherwise does not have a large program in place.

- International Finance Corporation (IFC) - Advisory services will continue focusing on business regulations - licenses, permits and inspections – and financial infrastructure development. The organization is interested in governance issues, appeals mechanisms, monitoring of implementation of forthcoming permit laws, secured transactions registry, and e-registry of inspections and permits. It is considering some tax initiatives but does not yet have Government commitment for this.

- International Monetary Fund (IMF) - The most recent IMF staff mission visited Baku in November 2012 to discuss Government policies and prospects for the Azerbaijani economy, in preparation for the next Article IV Consultation mission, tentatively planned for late February 2013. Among other priorities, the mission attempted to avoid further delays with launching the joint IMF/World

Bank Financial Sector Assessment Program (FSAP). Per the current agreement with the authorities, the FSAP will take place in early 2014. The IMF is ready to provide technical assistance on oil revenue management and pension reforms. Its priorities in Azerbaijan remain deep structural reforms while developing a competitive, private sector led, non-oil economy able to foster exports, create jobs, and sustain diversification. Implementation of the new customs code, finalization of the WTO accession, and easing of barriers for competition will remain cornerstones in the IMF’s growth strategy.

- Organization for Security and Cooperation in Europe (OSCE) - OSCE is improving the monitoring and evaluation methodology of e-governance in

Azerbaijan. In 2013, it will have some qualitative and quantitative indicators.

- Oxfam UK - focuses on increasing the capacity of poor and smallholder farmers to access markets.

- Swiss State Secretariat for Economic Affairs (SECO) - No new projects planned so far. In partnership with the World Bank, SECO will continue its financial sector modernization project, focusing on access to finance and capital modernization. With IFC, it will work on business enabling environment and financial market infrastructure. After 2013, it might focus on access to finance issues with farmers from a bottom up approach, entrepreneurial skills, and NGO capacity building.

- Swiss Development Cooperation (SDC) - works with small cattle farmers and input and service providers. It has one project in Agjabedi on animal health, artificial insemination, dairy quality, and feed for small farmers. It also works with four private veterinary service points.

- Turkish International Cooperation and Development Agency (TICDA) -provides some ad hoc assistance to the agriculture sector such as organizing international conferences and seminars on the improvement of organic agriculture or providing extension services from Turkey and implementing pilot projects. In the past, it has also supplied equipment to agro-research centers, provided seeds and fertilizers, and trained Azeri specialists in different topics.

- US Department of Agriculture (USDA) - worked with USAID on supporting improvements in the food safety curricula at the Azerbaijan State Agricultural

University (ADAU) to provide veterinary, agronomy, and food science students with up to date knowledge of food safety; providing veterinary technical assistance to develop an animal feed and nutrition curriculum at ADAU; and running the Cochran Fellowship and Borlaug Fellowship Programs. In 2013, it plans to hold risk assessment training for the fruit and vegetable value chain in collaboration with GIZ; train on export requirements for low acid and acidified products to the US; and, provide train-the trainer on food handling at Azerbaijan

Tourism Institute in partnership with GIZ.

- US Embassy - provides training to the Central Bank of Azerbaijan on the enforcement aspect of anti-money laundering and countering the financing of terrorism (AML/CFT). While USAID does not work on enforcement, this work does complement USAID’s work with the CBA. It also collaborates with

USAID to support policy and regulatory reforms related to trade, investment, financial sector improvements, business environment, agriculture, and other economic topics. All concerned USG agencies will facilitate additional policy dialog as the need arises.

- World Bank (WB) - has the largest agricultural program among the donors. The focus of the new Agricultural Development and Credit Program (ADCP), which is a multi-phase program and which will start soon, will be to support the development of commercial activities in the rural areas by facilitating the development of selected high-value chains through a series of activities and interventions targeted at the key constraints in the efficient functioning of marketing chains of agricultural commodities. The project aims to promote agribusiness/food processing through a line of credit through commercial banks;

strengthen agricultural support services; and, upgrade and modernize the plant protection and veterinary services. It will have a mix of advisory services, grant financing, and credit line. The project will contribute to improving a regulatory and institutional basis for food quality and safety system (this will likely just involve providing comments and recommendations on legislation).

World Bank is also designing a new phase of its Azerbaijan Rural Investment

Project (AZRIP) to focus on: (i) community rural infrastructure, which will support demand-driven micro-projects in rural infrastructure; (ii) technical assistance for rural infrastructure, which will fund support services for micro project implementation and pilot support services for strengthening livelihoods;

and (iii) project management and results monitoring. Finally, WB’s Water

Users’ Association Development Support Project (WUAP) aims to improve the effectiveness and financial viability of on-farm irrigation water distribution and management in the project area. It will also work with the State Veterinary

Service on privatizing this service and working on animal disease and control. It is currently waiting for GOAJ approval (expected by June 2013) before it begins its new projects.

C.7 CROSS-CUTTING THEMES

1. Gender

Gender considerations must be incorporated in all aspects of project implementation.

The Contractor shall find innovative ways to ensure equal representation in its activities and disaggregate results by gender where appropriate. The Contractor shall look into establishing meaningful metrics, which must measure: (i) disaggregate results by gender, including, but not limited to, the share of women-business owners for micro, small, and medium enterprises, as well as the large concerns, and (ii) impact of temporary quotas, if relevant, including number of women-ExComs, community organizers, industry association leads, agricultural loan officers, etc. on the evidence-driven gender policies and regulations.

2. Information and Communications Technology

The Contractor shall use innovative methods and ICT tools as appropriate to implement the project, ensure that results are sustainable, reach targeted beneficiaries effectively and cost efficiently, and demonstrate new ways to operate.

3. Environment

The Contractor will adhere to 22 CFR 216 requirements. With the agricultural activities, a Pesticide Evaluation Report and Safer Use Action Plan (PERSUAP) will be required.

The Contractor must identify a consultant with a strong background in entomology, plant pathology, weed science, integrated pest management (IPM) and pesticide toxicology who has experience in preparing such a plan.

- END OF SECTION C -

SECTION D- SUPPLIES OR SERVICES/PRICES

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 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 STRATEGY

The Branding Strategy for this Contract as specified in USAID ADS 320.3.2.1 is as follows:

Program Name: Azerbaijan Trade Linkages and Agribusiness Strengthening (ATLAS)

Project

Branding: The branding shall incorporate the message: The assistance is “from the

American People”

Desired Level of

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

Organizations to be

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

D.3 BRANDING AND MARKING POLICY

In accordance with provision D.2 above, and where applicable, the Contractor must comply with the requirements of the policy directives and required procedures outlined in USAID Automated

Directive System (ADS) Chapter 320.3.2 “Branding and Marking in USAID Direct Contracting” available at: http://www.usaid.gov/policy/ads/300/320.pdf; and USAID “Graphic Standards

Manual” available at: www.usaid.gov/branding, or any successor marking and branding policy.

- END OF SECTION D -

http://www.usaid.gov/policy/ads/300/320.pdf http://www.usaid.gov/branding

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 "52.232-2 CLAUSES

INCORPORATED BY REFERENCE" in Section I of this Contract. See FAR 52.252-2 for an internet address (if specified) for electronic access to the full text of a clause.

NUMBER TITLE DATE

FEDERAL ACQUISITION REGULATION (48 CFR Chapter 1)

52.246-3 INSPECTION OF SUPPLIES—

COST-REIMBURSEMENT MAY 2001

52.246-5 INSPECTION OF INSPECTION OF

SERVICES--COST-REIMBURSEMENT APR 1984

E.2 INSPECTION AND ACCEPTANCE

USAID inspection and acceptance of services, reports and other required deliverables or outputs shall take place at principal place of performance or at any other location where the services are performed and reports and deliverables or outputs are produced or submitted. The designated

Contracting Officer's Representative (COR) 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

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.

52.242-17 STOP-WORK ORDER AUG 1989

ALTERNATE I APR 1984

F.2 PERIOD OF PERFORMANCE

The period of performance is three years from the effective date of the Contract.

F.3 PLACE OF PERFORMANCE

The place of performance is Azerbaijan.

F.4 PERFORMANCE STANDARDS

The Contractor’s overall performance will be evaluated annually in accordance with the performance requirements set forth in Sections C, which will be conducted jointly by the designated Contracting Officer's Representative (COR) and the Contracting Officer, and shall form the basis of the Contractor's permanent performance record with regard to this Contract as required by FAR 42.15.

The following general assessment areas will be included in the basis of the evaluation:

a. Quality of Product

b. Schedule

c. Cost Control

d. Business Relations

e. Management of Key Personnel

f. Utilization of Small Business

g. Other Areas (If applicable)

F.5 DELIVERABLES

The Contractor must submit all deliverables as listed below.

Note: All timeframes are “calendar days”, unless noted differently.

1. Work Plan

The Contractor must submit the Final Work Plan for year one to USAID within 60 days after commencement of the Contract. Subsequent Annual Work Plans must be submitted to USAID for approval within 30 days prior to commencement of the next Contract year.

USAID will review the Work Plan and provide comments. The Contractor must revise and submit the Final Work Plan within 10 days for USAID approval from receipt of

USAID’s comments.

The Contractor may propose to USAID updates or revisions to the Annual Work Plan based on changing priorities and conditions.

2. Monitoring and Evaluation (M&E) Plan

The Contractor must submit a Draft Monitoring and Evaluation (M&E) Plan within 30 days after the approval of the Work Plan. USAID will review the Draft M&E Plan and provide comments. The Contractor will share this USAID-cleared Draft M&E Plan with relevant stakeholders, in consultation with USAID. The Final M&E Plan is due within seven (7) days from receipt of USAID’s comments. The Contractor is responsible for establishing baseline data to support the M&E Plan. The USAID and Contractor must conduct periodic performance reviews to monitor the progress of work and the achievement of results. The M&E Plan shall be updated and revised as appropriate in collaboration with USAID.

3. Performance Management Plan

The Contractor must develop and update Performance Management Plans (PMPs) within

60 days after commencement of the Contract (together with the Draft Year 1 - Work

Plan) and subsequent PMP within 30 days prior to commencement of the next Contract

Year (for subsequent years - no later than August 31). These must be coordinated with the USAID/Azerbaijan Program Office and the designated COR in fulfillment of their performance monitoring roles, as well as with implementing partners. The coalition teams must coordinate with the Contractor M&E team as needed, i.e., for PMP review, evaluation advice, provision of secondary source data, etc. The M&E activity is meant to inform, complement and enhance decisions related to the progress and development of the ATLAS Project.

In addition, each quarter the Contractor must: (1) provide higher-level Development

Objective (DO) results information to the USAID Clearinghouse to be developed by the

USAID M&E Program; (2) facilitate the collection of impact (quantitative and qualitative) information by the USAID M&E Program; (3) provide data and information to other USAID centralized reporting and tracking systems; and (4) collect disaggregated data on project indicators for gender, ethnic group, region, and other categories to be identified by USAID.

All performance data must be reported ensuring data quality standards (see ADS Chapter

578: Information Quality Guidelines) on a United States Government (USG) Fiscal Year basis (October 1-September 30), in addition to any other reporting deadlines outlined in the Contract.

In addition to indicators proposed by the Contractor, USAID also requires the below

United States Government (USG) standard indicators be collected as part of this project.

4. Weekly Updates

The Weekly Updates must be submitted to the designated COR by close of business every Monday as an e-mail rather than an attachment. Weekly reporting must be written in the form of brief paragraphs summarizing and analyzing key points that can be communicated directly to the Ambassador and to the Mission Director (for upcoming activities), and to the Washington Europe & Eurasia (E&E) Bureau (for the prior week’s activities). These weekly reports may include important political or other events that relate to projects, or have an impact on project activities.

5. Quarterly Performance Reports

The Contractor must submit a concise Quarterly Performance Report, approximately 20 pages, not including annexes, to the designated COR within 15 days after completion of each of the four quarters of USAID’s Fiscal Year, i.e., quarters ending on December 31, March 31, June 30, and September 30, for the duration of the Contract. Annexes must contain the written work product of the ATLAS Project that is not protected as proprietary information. These reports must summarize progress against the results, benchmarks, and milestones defined in the Work Plan and must include a description and analysis of results achieved, problems encountered and proposed solutions, planned activities not completed, lessons learned, planned activities for the next quarter, and factors influencing (positively or negatively) the prospects for achievement of project benchmarks and results. Any failure in regard to progress towards achieving established results, benchmarks, milestones and indicators must be documented and clearly justified.

Any required or recommended changes or updates to the Work Plan must also be included in Quarterly Performance Reports. Quarterly Performance Reports must be submitted in electronic and a hard copy to the COR. Reporting on activities and deliverables in the Quarterly Performance Report must track the presentation of activities and deliverables in the Work Plan.

Finally, each Quarterly Performance Report must include information that demonstrates the impact that the project has had during the reporting period on its beneficiaries. This includes the preparation of fact sheets and success stories, including photos and quotations about the ATLAS Project work, especially at the CSO leader, coalition, Government official levels, and individual levels.

The Contractor is expected to develop the format of its Quarterly Performance Reports according to USAID direction and Mission standardized procedures.

6. Quarterly Financial Reports

The Contractor must submit Quarterly Financial Reports to the designated COR with a copy to the Office of Financial Management (email: tbilisiaccounting@usaid.gov) within

15 days after end of each quarter, containing a summary page that reflects cumulative spending by each month of the quarter. The Quarterly Financial Report must show the cumulative totals for the previous report, the total for the quarter being reported, the new cumulative total, and the amount remaining to be expended. The Contractor must provide additional breakdown if needed or requested by USAID.

mailto:tbilisiaccounting@usaid.gov

7. Annual Reports

The fourth Quarterly Performance Report must include an annual summary of no more than 30 pages. The Annual Report must be submitted in lieu of the fourth Quarterly

Performance Report within 20 days after end of each Contract year to the designated

COR. USAID will work with the Contractor during start-up to provide specific guidance on what should be included in the annual summary report.

8. Pipeline Analysis

The Contractor must submit budget information, realistic projected expenditures, and financial Pipeline Analysis before each Contract modification/incremental funding to the designated COR within 10 days prior to the end of each Quarter for USAID’s accrual exercise, and as required by USAID.

9. Submission of Development Experience Documentation

The Contractor must submit Submission of Development Experience Documentation.

The Contractor must submit one electronic and/or one hard copy of development experience documentation, in accordance with applicable regulations, to the

Development Experience Clearinghouse (DEC) within 30 days after the end of each

Contract year.

10. Demobilization Plan

The Contractor must submit a Demobilization Plan to the COR for approval within six months prior to the end of the Contract. The Demobilization Plan must include an illustrative Property Disposition Plan, a plan for the phase-out of in-country operations, a delivery schedule for all deliverables required under the Contract and a timetable for completing all required actions in the Demobilization Plan, including the submission date of the final Property Disposition Plan to the Contracting Officer. Both the illustrative and final Property Disposition Plan must include the inventory schedule required by FAR

52.245-5, a plan for the disposition of property to eligible parties and a timeline for the disposition of such property. In addition, the Contractor must describe how all required prime and subaward audits must be conducted after the demobilization of the Contractor.

11. Final Performance Report

The Contractor must submit a detailed Final Performance Report of no more than 40 pages, not including annexes, within 45 days prior to the end of the Contract. This report must include, but is not limited to: (1) a summary of project implementation, accomplishments and shortcomings in achieving project goals and results, referring to the intermediate results listed in the Contract; (2) reasons why expected results were not met, if applicable; (3) commentary upon the status of all Azerbaijani organizations and institutions with which the Contractor worked, with emphasis on institutional development, “Azerbaijanization”, their expected future activities, and their capacity to develop and sustain future projects/programs in similar programmatic areas; (4) a list of all host country, international donor, and financial institution contacts and collaboration;

and (5) recommendations for any future ATLAS-type projects or initiatives. USAID will provide comments within 15 days. From receipt of USAID comments, the Contractor must revise and submit a final version within 10 days for USAID approval. Once the

Final Performance Report is accepted by USAID, five hard copies and one electronic copy of the Final Performance Report must be submitted to the designated COR with a copy to the Contracting Officer.

12. Final Financial Report

The Final Financial Report must include a Financial Report as an annex, detailing how funds were expended, line by line. The Final Financial Report must be submitted in lieu of the last Quarterly Performance Report.

Unless otherwise noted above, the Contractor must suggest to USAID the format of the deliverables, outlined in the table below, as part of their submission of the deliverables.

The following table is an overview of all deliverables:

Reference

Numbers/Deliverables

Delivery Method Due (all days are calendar days)

I. Start-Up Reporting

Start-up benchmarks

Table

E-mail to COR and Alternate

COR

Within 20 days after the commencement of the Contract.

Assessment of

Azerbaijani trade-related laws and regulations and action plan

E-mail to COR and Alternate

COR

Within 30 days of commencement of the Contract; include progress updates in each Quarterly

Performance Report.

Baseline Survey of

Agricultural Value

E-mail to COR and Alternate

COR

Within 60 days after commencement of

Chains the Contract.

Value Chain Specific

Action Plans

E-mail to COR and Alternate

COR

Within 60 days after

Conduct of Baseline

Survey.

F.5.1 Final Work Plan E-mail to COR and Alternate

COR

Year 1 Work Plan -

Within 60 days after the Contract.

Subsequent years

Work Plans - within

30 days prior to each Contract year.

Within 10 days after receipt of USAID comments.

F.5.2 Monitoring and

Evaluation (M&E) Plan

E-mail to COR and Alternate

COR

Within 30 days after the approval of the

Work Plan.

F.5.3 Performance

Management Plan

E-mail to COR and Alternate

COR

Within 60 days after commencement of the Contract (together with the draft Year 1

- Work Plan).

30 days prior to commencement of the next Contract year

(for subsequent years

- no later than August

31).

II. Progress Reporting

F.5.4 Weekly updates In person TBD with COR

Monthly Report (brief and to the point)

E-mail to COR and Alternate

COR

Within 7 days after end of each month.

F.5.5 Quarterly

Performance Reports

E-mail to COR and Alternate

COR

Within 15 days after end of each quarter.

Quarterly Presentation to the Mission

In person TBD with COR

Report on cooperation with other stakeholders

(Government agencies, donors, projects, etc.)

E-mail to COR and Alternate

COR

Include in Quarterly

Performance Reports.

F.5.6 Quarterly

Financial Reports

E-mail to COR and Alternate

COR with copy to the

Financial Management Office

(FMO)

Within 15 days after end of each quarter.

F.5.7 Annual Report

(also Q4 report)

E-mail to COR and Alternate

COR

Within 20 days after end of each Contract year.

F.5.8 Pipeline Analysis E-mail to COR and Alternate

COR

Within 15 days prior to the end of each quarter.

F.5.9 Development

Experience

Documentation (DEC)

E-mail to Development

Experience Clearinghouse

(DEC) with copy to COR and

Alternate COR

Within 30 days after the end of each

Contract year.

Special Reports or

Presentations

TBD When requested/needed.

Training to CSOs, Farmers, Businesses, Government Agencies

In person Throughout the duration of the

Contract.

Regional and National

Workshops, Seminars and Conferences

In person Throughout the duration of the

Contract.

Mid-point Performance

Evaluation

TBD End of Year 2.

III. Close-out Reporting

F.5.10 Demobilization

Plan

E-mail to Contracting Officer with copy to the COR

Within six months prior to the end of the

Contract.

F.5.11 Final

Performance Report

E-mail to COR and Alternate

COR with copy to the

Contracting Officer/five (5) copies

Within 45 days prior to the end of the

Contract.

F.5.12 Final Financial

Report

E-mail to COR and Alternate

COR with copy to the

Financial Management Office

(FMO)

Within 45 days prior to the end of the

Contract (as attachment to the

Final Performance

Report).

H.5 Grants Manual E-mail to COR and Alternate

COR

30 days after signing

Contract.

H.11 Foreign Tax

Report

E-mail to Financial

Management Office (FMO) with copy to the COR and

Alternate COR

Due by April 16 of each year.

F.6 KEY PERSONNEL

The Contractor must furnish Key Personnel for the performance of this Contract:

The Key Personnel specified above are considered to be essential to the work being performed hereunder. Prior to replacing any of the specified individuals, the Contractor must immediately notify the Contracting Officer and the designated Contracting Officer's Representative (COR) reasonably in advance and must submit written justification (including proposed substitutions) in sufficient detail to permit evaluation of the impact on the project.

Unless failure to provide the designated Key Personnel as specified above is beyond the control, and without the fault or negligence, of the Contractor (e.g., non-acceptance or termination of employment by the individual, illness or death of the individual), failure to provide such Key

Personnel as specified above will be considered non-performance by the Contractor.

If the Contractor, at any time, is unable to comply with these requirements, the Contractor must simultaneously notify, in writing, the Contracting Officer and the designated COR reasonably in advance of the individual's departure or non-acceptance of employment and shall submit written justification and explanation in sufficient detail (including implications for the CPFF Total

Contract) to permit evaluation of the impact on the project.

No replacement of Key Personnel must be made by the Contractor without the written consent of the Contracting Officer, provided, that the Contracting Officer may ratify in writing such replacement and such ratification shall constitute the consent of the Contracting Officer required by this clause.

Proposed substitutions must be submitted simultaneously to the Contracting Officer and the

USAID Contracting Officer's Representative (COR) not later than 30 days after the departure of, or non-acceptance of employment by, any of the approved individuals, and the proposed substitute personnel must have at least the same qualifications as the applicable Key Personnel specified above. Failure to do so will be considered non-performance by the Contractor.

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

F.7 MONITORING AND EVALUATION

The progress, success and impact of…