SOL-117-16-000002_REVISED_RFP.pdf

REVISED RFP No. SOL-117-16-000002 DATED DECEMBER 28, 2016 Request for Proposals (RFP) No.: SOL-117-16-000002 Issue Date: December 13, 2016 Questions Due: December 19, 2016 at 5pm, Kyiv local time Closing Date: January 31, 2017 at 5pm, Kyiv local time

Subject: Request for Proposal (RFP) # No. SOL-117-16-000002 “Moldova Structural

Reform Program”

Dear Prospective Offerors:

The United States Agency Mission for International Development in Moldova (USAID/Moldova), through the Regional Contracts Office (RCO) in Kyiv is seeking proposals from qualified companies and organizations interested in implementing the “Moldova Structural Reform Program” as described in this solicitation.

Any questions regarding the RFP’s requirements must be submitted to Michael Capobianco and Olga Luchuk-Vysotska via e-mail at mcapobianco@usaid.gov and oluchukvysotska@usaid.gov no later than 17:00 hours Kyiv time, December 19, 2016.

Subject to availability of funds, USAID contemplates award of a Cost-Plus-Fixed-Fee (CPFF) Completion type contract for a period of four (4) years from the date of award. The total estimated value of the award is $10 million - $12 million.

Proposals must be received electronically on or before the closing date stipulated above to provide the services and deliverables specified in the below RFP. Proposals must be sent via e-mail attachments to mcapobianco@usaid.gov and oluchukvysotska@usaid.gov by the closing date and must conform to all requirements outlined in Section L.

Any amendments to this solicitation will be issued and posted on the FedBizOpps website (www.fbo.gov) along with the RFP. Offerors are encouraged to check the website periodically. It is the responsibility of the Offeror to ensure that solicitation or any amendments to it has been received from Internet in its entirety and USAID bears no responsibility for data errors resulting from transmission or conversion processes. Oral instructions, answers or guidance from any USAID source prior to the award of the contract shall not be binding. More details regarding proposal submission please see in Section L of this RFP.

This request in no way obligates the USAID to award a contract, nor does it commit USAID to pay any cost incurred in the preparation and submission of your proposal. We look forward to receiving and reviewing your proposals.

Sincerely, /S/

Michael Capobianco Contracting Officer USAID Regional Mission for Ukraine, Belarus, Moldova and Cyprus mailto:oluchukvysotska@usaid.gov mailto:oluchukvysotska@usaid.gov

SOL-117-16-000002

SOLICITATION, OFFER AND AWARD

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

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

ORDER UNDER DPAS (15 CFR 700)

6. REQUISITION/PURCHASE NUMBER

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

NEGOTIATED (RFP)

SEALED BID (IFB)

5. DATE ISSUED

1. THIS CONTRACT IS A RATED RATING PAGE OF PAGES

1 149

C. E-MAIL ADDRESS

EXT.NUMBERAREA CODE

B. TELEPHONE (NO COLLECT CALLS)A. NAME

10. FOR

INFORMATION

CALL:

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

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

SOLICITATION

9. Sealed offers in original and

PART IV - REPRESENTATIONS AND INSTRUCTIONS

OTHER STATEMENTS OF OFFERORS

EVALUATION FACTORS FOR AWARD

INSTRS., CONDS., AND NOTICES TO OFFERORS

REPRESENTATIONS, CERTIFICATIONS AND

LIST OF ATTACHMENTS

CONTRACT CLAUSES

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

I

J

K

L

M SPECIAL CONTRACT REQUIREMENTS

CONTRACT ADMINISTRATION DATA

DELIVERIES OR PERFORMANCE

INSPECTION AND ACCEPTANCE

PACKAGING AND MARKING

DESCRIPTION/SPECS./WORK STATEMENT

SUPPLIES OR SERVICES AND PRICES/COSTS

SOLICITATION/CONTRACT FORM

PART II - CONTRACT CLAUSESPART I - THE SCHEDULE

H

G

F

E

D

C

B

A

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

11. TABLE OF CONTENTS

18. OFFER DATE17. SIGNATURE

SUCH ADDRESS IN SCHEDULE.

IS DIFFERENT FROM ABOVE - ENTER

15C. CHECK IF REMITTANCE ADDRESS

EXT.NUMBERAREA CODE

15B. TELEPHONE NUMBER

(Type or print)AND

ADDRESS

OF

OFFEROR

CODE FACILITY

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

DATEAMENDMENT NO.DATEAMENDMENT NO.

and related documents numbered and dated):

amendments to the SOLICITATION for offerors

(The offeror acknowledges receipt of

14. ACKNOWLEDGEMENT OF AMENDMENTS

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

(See Section I, Clause No. 52.232.8)

13. DISCOUNT FOR PROMPT PAYMENT

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

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

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

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

OFFER (Must be fully completed by offeror)

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

28. AWARD DATE

(Signature of Contracting Officer)

27. UNITED STATES OF AMERICA

25. PAYMENT WILL BE MADE BY

26. NAME OF CONTRACTING OFFICER (Type or print)

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

ITEM

(4 copies unless otherwise specified)

23. SUBMIT INVOICES TO ADDRESS SHOWN IN

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

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

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

AWARD (To be completed by government)

CODE

12/28/2016REQ-117-16-000004

X

MOLDOVA

Moldova Program 00000

See Section L.5 of the RFP

1700 LT 01/31/2017

Olga Luchuk-Vysotska oluchukvysotska@usaid.gov

X

X

X

X

X

X

X

X

X

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PAGE(S)

Michael Capobianco

AUTHORIZED FOR LOCAL REPRODUCTION

Previous edition is unusable

STANDARD FORM 33 (Rev. 9-97)

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

SF33

B-1

C-1 D-1 E-1 F-1 G-1 H-1

I-1

J-1

K-1

L-1

M-1

ITEM NO. SUPPLIES/SERVICES QUANTITY UNIT UNIT PRICE AMOUNT

NAME OF OFFEROR OR CONTRACTOR

2 149

CONTINUATION SHEET

REFERENCE NO. OF DOCUMENT BEING CONTINUED PAGE OF

SOL-117-16-000002

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

Delivery Location Code: USAID/MOLDOVA

USAID/Moldova

57/1 Banulescu Bodoni St.

ASITO Bldg. 5th Fl.

Chisinau, Moldova 2005

0001 USAID Moldova has a long-term need for contractor-provided services aimed at advancing a series of structural reforms needed by the country and part of USAID/Moldova country strategy. The acquisition will be a multiple year effort. USAID/Moldova anticipates a need for these services for a period of four years.

Services to implement the Moldova Structural

Reform Program will be acquired through a full and open competition announced via a RFP and competitively awarded based on the TEC selection criteria.

0002 FY 2015 funds

OPTIONAL FORM 336 (4-86)

Sponsored by GSA

FAR (48 CFR) 53.110

NSN 7540-01-152-8067

TABLE OF CONTENT Page

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

SECTION B - SUPPLIES OR SERVICES AND PRICE/COSTS .... B-Error! Bookmark not defined.1 B.2 CONTRACT TYPE .......................................................................................................................... B-1 B.3 ESTIAMTED COST, FIXED FEE AND OBLIGATED AMOUNT ............................................... B-1 B.4 BUDGET LINE ITEMS .................................................................................................................... B-1 B.5 INDIRECT COSTS ........................................................................................................................... B-1 B.6 PAYMENT OF FIXED FEE ............................................................................................................. B-2 B.7 COSTS REIMBURSABLE ............................................................................................................... B-3 B.8 MULTI-YEAR CONTRACT AND CANCELLATION CEILING ................................................. B-3

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

C.2 RELATIONSHIP TO USG STRATEGY AND COUNTRY DEVELOPMENT

COOPERATION STRATEGY.......................................................................................................... C-4

C.3 RELATIONSHIP TO GOVERNMENT OF MOLDOVA STRATEGY AND OTHER DONOR

PROGRAMS OF ASSISTANCE ...................................................................................................... C-5 C.4 RELATIONSHIP TO PASTUSAID TECHNICAL ASSISTANCE ................................................ C-6 C.5 SCOPE OF WORK ........................................................................................................................... C-7 C.6 WORK REQUIREMENTS ............................................................................................................... C-7 C.7 EXPECTED RESULTS .................................................................................................................. C-11

SECTION D - PACKAGING AND MARKING ................................................................................ D-1 D.1 AIDAR 752.7009 MARKING (JAN 1993) ..................................................................................... D-1 D.2 MARKING AND BRANDING STRATEGY ................................................................................. D-1 D.3 BRANDING STRATEGY AND MARKING PLAN ...................................................................... D-1 D.4 BRANDING STRATEGY ............................................................................................................... D-2 D.5 BRANDING IMPLEMENTATION PLAN (BIP) AND MARKING PLAN .................................. D-2

SECTION E - INSPECTION AND ACCEPTANCE ......................................................................... E-1 E.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE ..................... E-1 E.2 INSPECTION AND ACCEPTANCE ............................................................................................... E-1 E.3 CONTRACTOR PERFORMANCE EVALUATION ....................................................................... E-1

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

SECTION G - CONTRACT ADMINISTRATION DATA ............................................................... G-1 G.1 AIDAR 752.7003 DOCUMENTATION FOR PAYMENT (NOV 1998) ....................................... G-1 G.2 ADMINISTRATIVE CONTRACTING OFFICE ........................................................................... G-2 G.3 CONTRACTING OFFICER’S AUTHORITY ................................................................................ G-2 G.4 CONTRACTING OFFICER’S REPRESENTATIVE (COR) ......................................................... G-2 G.5 TECHNICAL DIRECTIONS/RELATIONSHIP WITH USAID .................................................... G-3 G.6 PAYING OFFICE ............................................................................................................................ G-4

SECTION H - SPECIAL CONTRACT REQUIREMENTS ............................................................ H-1 H.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE ................... H-1 H.2 752.225-70 SOURCE AND NATIONALITY REQUIREMENTS (FEB 2012) ............................. H-1 H.3 752.7004 EMERGENCY LOCATOR INFORMATION (JUL 1997) ............................................. H-1

H.4 752.7050 SUBMISSION REQUIREMENTS FOR DEVELOPMETN EXPERIENCE

DOCUMENTS (SEP 2013) ............................................................................................................. H-2 H.5 INSURANCE AND SERVICES ..................................................................................................... H-3 H.6 752.228-70 MEDICAL EVACUATION (MEDEVAC) SERVICES (JULY 2007) ....................... H-4 H.7 AUTHORIZED GEOGRAPHIC CODE ........................................................................................ H-5 H.8 LANGUAGE OF REPORTS AND OTHER OUTPUTS ................................................................ H-5 H.9 752.228-9 CARGO INSURANCE................................................................................................... H-5 H.10 752.7034 ACKNOLWEDGEMENT AND DISCLAIMER (DEC 1991) ...................................... H-5 H.11 EXECUTIVE ORDER ON TERRORISM FINANCING (FEB 2002) ......................................... H-6

H.12 FOREIGN GOVERNMENT DELEGATIONS TO INTERNATIONAL CONFERENCES

(JUNE 2012) .................................................................................................................................. H-6 H.13 REPORTING OF FOREIGN TAXES (JULY 2007) ..................................................................... H-6 H.14 USAID DISABILITY POLICY - ACQUISITION (DECEMBER 2004) ..................................... H-7

H.15 HOMELAND SECURITY PRESIDENTIAL DIRECTIVE - (HSPD-12) (SEPTEMBER 2006) H-7

H.16 ORGANIZATIONAL CONFLICTS OF INTEREST ................................................................... H-8 H.17 CONFLICTS OF INTEREST ........................................................................................................ H-8

H.18 752.7032 INTERNATIONAL TRAVEL APPROVAL AND NOTIFICATION

REQUIREMENTS (APR 2014) .................................................................................................. H-10 H.19 ENVIRONMENTAL COMPLIANCE ........................................................................................ H-10 H.20 DISCLOSURE OF INFORMATION .......................................................................................... H-11 H.21 BUSINESS CLASS TRAVEL ..................................................................................................... H-12 H.22 NEWS RELEASE ........................................................................................................................ H-12 H.23 TITLE TO PROPERTY ............................................................................................................... H-12 H.24 PRESS RELATIONS ................................................................................................................... H-12 H.25 NONDISCRIMINATION (JUNE 2012) ..................................................................................... H-12 H.26 USAID-FINANCED THIRD-PARTY WEB SITES (AUGUST 2013) ...................................... H-13 H.27 CONFERENCE PLANNING AND REQUIRED APPROVALS (AUGUST 2013) .................. H-14

H.28 USAID IMPLEMENTING PARTNER NOTICES (IPN) PORTAL FOR ACQUISITION

(JULY 2014) ................................................................................................................................ H-15

H.29 SUBMISSION DATASETS TO THE DEVELOPMENT DATA LIBRARAY (DDL)

(OCTOBER 2014) ........................................................................................................................ H-16 H.30 PROHIBITION AGAINST DISCRIMINATION (OCT 2011) ................................................... H-17

H.31 PROHIBITION OF THE USE OF FEDERAL FUNDS TO PROMOTE, SUPPORT, OR

ADVOCATE THE LEGALIZATION OR PRACTICE OF PROSTITUTION-TIP

ACQUISITION (MAY 2007) ...................................................................................................... H-17

H.32 USAID IMPLEMENTATION OF SECTION 508 OF THE REHABILITATION ACT OF

1973 AND FEDERAL ACQUISITION CIRCULAR (FAC) 97-27 "ELECTRONIC AND

INFORMATION TECHNOLOGY ACCESSIBILITY ............................................................... H-18 H.33 CONTRACTOR'S PERSONNEL INTEGRITY IN FOREIGN ASSISTANCE ......................... H-18 H.34 THIRD PARTY TRAINING ....................................................................................................... H-18

H.35 52.203-99 PROHIBITION ON CONTRACTING WITH ENTITIES THAT REQUIRE

CERTAIN INTERNAL CONFIDENTIALITY AGREEMENTS (DEVIATION 2015-02) ....... H-18

H.36 LOGISTIC SUPPORT ................................................................................................................. H-19 H.37 CONSENT TO SUBCONTRACTS ............................................................................................ H-19 H.38 CONFIDENTIALITY AND OWNERSHIP OF INTELLECTUAL PROPERTY ...................... H-19

H.39 CONTRACTOR"S USE OF PROJECT VEHICLES AND LIABILITY INSURANCE

REQUIREMENTS FOR PRIVETLY OWNED VEHICLES ...................................................... H-19

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

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

I.2 52.209-9 UPDATES OF PUBLICLY AVAILABLE INFORMATION REGARDING

RESPONSIBILITY MATTERS (JUL 2013) ..................................................................................... I-3 I.3 52.216-24LIMITATION OF GOVERNMENT LIABILITY (APR 1984) ......................................... I-4 I.4 52.222-2 PAYMENT FOR OVERTIME PREMIUMS (JUL 1990) ................................................... I-4 I.5 52.222-35 EQUAL OPPORTUNITY FOR VETERANS (OCT 2015)............................................... I-5 I.6 52.222-36 EQUAL OPPORTUNITY FOR WORKERS WITH DISABLILITIES (JUL 2014) ......... I-5 I.7 52.229-8 TAXES-FOREIGN COST-REIMBURSEMENT CONTRACTS (MAR 1990) ................. I-5 I.8 52.243-7 NOTIFICATION OF CHANGES (APR 1984) ................................................................... I-6 I.9 52.247-67 SUBMISSION OF TRANSPORTATION DOCUMENTS FOR AUDIT (FEB 2006) ..... I-7 I-10 752.219-70 USAID MENTOR-PROTÉGÉ PROGRAM (JULY 2007) ........................................... I-8 I-11 752.7101 VOLUNTARY POPULATION PLANNING ACTIVITIES (JUNE 2008) ..................... I-8

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

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

SECTION K - CONTRACT CLAUSES ............................................................................................. K-1 K.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE ................... K-1

K.2 52.209-9 UPDATES OF PUBLICLY AVAILABLE INFORMATION REGARDING

RESPONSIBILITY MATTERS (JUL 2013) .................................................................................. K-3 K.3 INSURANCE-IMMUNITY FROM TORT LIABILITY ................................................................ K-5 K.4 AGREEMENT ON, OR EXCEPTION TO, TERMS AND CONDITIONS ................................... K-5 K.5 CERTIFICATION REGARDING RESPONSIBILITY MATTERS(OCT 2015) ........................... K-5 K.6 52.209-7 INFORMATION REGARDING RESPONSIBILITY MATTERS (JUL 2013) .............. K-7 K.7 52.215-6 PLACE OF EPRFORMANCE (OCT 1997) ..................................................................... K-8

K.8 52.219-22 SMALL DISADVANTAGED BUSINESS STATUS (OCT 1999) ALTERNATE I

(OCT 1998) ...................................................................................................................................... K-9 K.9 52.222-22 PREVIIOUS CONTRACTS AND COMPLIANCE REPORTS (FEB 1999) .............. K-10 K.10 52.222-25 AFFIRMATIVE ACTION COMPLIANCE (APR 1984) .......................................... K-10

K.11 52.225-20 PROHIBITION ON CONDUCTING RESTRICTED BUSINESS OPERATIONS

IN SUDAN-CERTIFICATION (AUG 2009) ............................................................................... K-10

K.12 52.227-15 REPRESENTATION OF LIMITED RIGHTS DATA AND RESTRICTED

COMPUTER SOFTWARE (DEC 2007) ..................................................................................... K-11

K-13 52.230-1 COST ACCOUNTING STANDARDS NOTICES AND CERTIFICATION

(OCT 2015) ................................................................................................................................... K-12

K-14 52.230-7 PROPOSAL DISCLOSURE-COST ACCOUNTING PRACTICE CHANGES

(APR 2005) .................................................................................................................................. K-14 K-15 SIGNATURE ............................................................................................................................... K-14

SECTION L - CONTRACT CLAUSES .............................................................................................. L-1 L.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE ..................... L-1 L.2 52.216-1 TYPE OF CONTRACT (APR 1984) ................................................................................ L-1 L.3 52.233-2 SERVICE OF PROTEST (SEP 20016) ............................................................................. L-1 L.4 GENERAL INSTRUCTIONS TO OFFERORS ............................................................................... L-1 L.5 SUBMISSION/DELIVERY INSTRUCTIONS ................................................................................ L-2 L.6 INSTRUCTIONS FOR PREPARATION OF TECHNCIAL PROPOSAL ...................................... L-3

L.7 INSTRUCTIONS FOR PREPARATION AND SUBMISSION OF THE COST/BUSINESS

PROOSAL ......................................................................................................................................... L-6

SECTION M - CONTRACT CLAUSES ........................................................................................... M-1 M.1 GENERAL INFORMATION.......................................................................................................... M-1 M.2 TECHNICAL EVALUATION CRITERIA .................................................................................... M-1 M.3 EVALUATION OF PAST PERFORMANCE ................................................................................ M-2 M.4 COST/BUSINESS EVALUATION ................................................................................................ M-3 M.5 DETERMINATION OF COMPETITIVE RANGE ........................................................................ M-4 M.6 SOURCE SELECTION .................................................................................................................. M-4

SOL-117-16-000002 SECTION B

B-1

B - SUPPLIES OR SERVICES/PRICES

B.1 PURPOSE

The purpose of the Moldova Structural Reform Program is to improve the business and trade enabling environment in Moldova by helping Government of Moldova institutions and private sector accelerate the implementation of trade liberalization mechanisms, adopt structural and business enabling reforms, and improve strategic communications between private and public actors.

B.2 CONTRACT TYPE

This is a Cost-Plus-Fixed-Fee (CPFF) Completion type contract. For the consideration set forth below, the Contractor shall achieve the performance objectives and deliverables or outputs described in Section C, Statement of Work, and in accordance with the performance standards specified herein.

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

(a) For the four-year contract period, the estimated cost for the performance of the work required hereunder, exclusive of fixed fee, is _______ [ TBD ] . The fixed fee, is _______ [ TBD ] . The estimated cost plus fixed fee, if any, is _______ [ TBD ] .

(b) Within the estimated cost plus fixed fee specified in paragraph (a) above, the amount currently obligated and available for reimbursement of allowable costs incurred by the Contractor (and payment of fee) for performance hereunder is _______ [ TBD ] . The Contractor shall not exceed the aforesaid obligated amount, unless authorized by the contracting officer pursuant to the clause of this contract entitled “Limitation of Funds (APR

1984)” FAR 52.232-22.

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

B.4 BUDGET

a. The following itemized budget sets forth the estimates for reimbursement of dollar costs for line-items of cost and the fixed fee.

TBD

B.5 INDIRECT COSTS

The contract clause entitled “Allowable Cost and Payment (JUN 2013)”, FAR 52.216-7, specifies that the indirect cost rates shall be established for each of the contractor’s accounting periods that apply to this contract. Pending establishment of revised provisional or final indirect cost rates, allowable indirect costs shall be reimbursed on the basis of the following negotiated provisional or predetermined rates and the appropriate bases:

B-2

Description Rate Base Type Period

TBD TBD% 1/ 1/ 1/

TBD TBD% 2/ 2/ 2/

1/ Base of Application: TBD Type of Rate: TBD Period: TBD

2/ Base of Application: TBD Type of Rate: TBD Period: TBD

B.6 PAYMENT OF FIXED FEE

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

(b) In accordance with FAR 52.216-8 “Fixed Fee (JUN 2011),” USAID reserves the right to withhold a reserve not to exceed $100,000. The Contracting Officer shall release 75 percent of all fee withholds under this contract after receipt of an adequate certified final indirect cost rate proposal covering the year of physical completion of this contract, provided the Contractor has satisfied all other contract terms and conditions, including the submission of the final patent and royalty reports, and is not delinquent in submitting final vouchers on prior years’ settlements. The Contracting Officer may release up to 90 percent of the fee withholds under this contract based on the Contractor’s past performance related to the submission and settlement of final indirect cost rate proposals.

B.7 COST REIMBURSABLE

The U.S. dollar costs allowable shall be limited to reasonable, allocable and necessary costs determined in accordance with FAR 52.216-7, Allowable Cost and Payment (JUN 2013), FAR 52.216-8, Fixed Fee (JUN 2011) and AIDAR 752.7003, Documentation for Payment (NOV 1998), which are incorporated into this contract.

B.8 MULTI-YEAR CONTRACT AND CANCELLATION CEILING

This contract is considered non-severable, and is therefore a multi-year contract as defined in FAR 17.103. Therefore, this contract is subject to the requirements of FAR 17.106.

A. Performance under this contract during the second and subsequent program years is contingent upon the appropriation of funds. All program years except the first are subject to cancellation. Cancellation shall occur by the dates specified below if the Contracting Officer:

1. notifies the Contractor that funds are not available for contract performance for any subsequent program year; or

2. fails to notify the Contractor that funds are available for performance of the succeeding program year.

B. Cancellation Ceiling:

B-3

This is a CPFF type contract where the Contractor is authorized to be reimbursed for all costs which are allowable in accordance with FAR 52.216-7, “Allowable Costs and Payment.”

Therefore, the Contractor will not incur any costs which would have been amortized over the life of the contract should the contract be cancelled in accordance with FAR 52.217-2.

The Government's liability for cancellation charges shall not exceed $0.00 This amount will be reduced in accordance with FAR 17.106-1(c)(1) at the conclusion of each program year, as follows:

Program Year Cancellation Date Cancellation Ceiling Year 1: 2017/2018 N/A N/A Year 2: 2018/2019 March 31, 2018 $0.00 Year 3: 2019/2020 March 31, 2019 $0.00 Year 4: 2020/2021 March 31, 2020 $0.00

END OF SECTION B

SOL-117-16-000002 SECTION C

C-1

SECTION C - DESCRIPTION/SPECIFICATIONS/STATEMENT OF WORK

Moldova Structural Reform Program

C.1 BACKGROUND

Moldova is a mid-sized, landlocked country with significant economic, geographic and political challenges. Per capita GDP (PPP) in 2015 was estimated at $5,091, the lowest in Europe. Inflation, currently at 8.6 percent, is rising. Moldova's economy remains vulnerable to political uncertainty, weak administrative capacity, vested oligarchic interests, corruption, higher fuel prices, Russian pressure, and the separatist regime in Moldova's Transnistria region. The influence of entrenched elites and oligarchs is seen as a major obstacle to implementation of economic reforms.

C.1.1 Economy

Having a moderate climate and good farmland, Moldova's economy relies heavily on its agriculture sector, featuring fruits, vegetables, wine, and tobacco. In addition, there are emerging non-food industries that show great potential. Moldova also depends on annual remittances of approximately $1.6 billion from the roughly one million Moldovans working in Europe, Russia, and other former Soviet Bloc countries.

Traditional trade patterns are changing; exports of manufactured goods to the EU have eclipsed exports of agricultural products to the former Soviet republics. Civil unrest in Ukraine is disrupting established trading patterns, compelling Moldovans to search for new markets in the EU, the Middle East, and South Asia for agricultural products and away from CIS countries. A total business model change is deemed necessary to compete in these new, non-CIS markets.

While exports have grown over the last decade, imports have soared even faster. As a result, Moldova’s trade deficit is swelling reaching $3 billion in 2014. With few natural energy resources, Moldova imports almost all of its energy supplies from Russia and Ukraine.

Moldova's dependence on Russian energy is underscored by a growing $5 billion debt to Russian natural gas supplier Gazprom, largely the result of unreimbursed natural gas consumption in the separatist Transnistria region. In August 2013, work began on a new pipeline between Moldova and Romania that may eventually break Russia's monopoly on Moldova's gas supplies.

The government's goal of European Union (EU) integration has resulted in some market-oriented progress. Moldova experienced better than expected economic growth in 2014 due to increased agriculture production, to economic policies adopted by the Moldovan government since 2009, and to the receipt of EU trade preferences. Moldova signed an Association Agreement (AA) and a Deep and Comprehensive Free Trade Agreement (DCFTA) with the EU during fall 2014, connecting Moldovan products to the world’s largest market.

Small and Medium Enterprises (SMEs) predominate, with few if any large manufacturing enterprises that can reap economies of scale and compete on international markets. Economic growth has been hampered by high prices for Russian natural gas, a Russian import ban on Moldovan wine and fruits and vegetables, and by Moldova’s large external debt.

According to the World Bank, Moldova receives the largest amount of EU aid per capita among countries in the region, and ranks second in the world in terms of remittances. The latter are primarily spent on imported consumer goods and apartment construction, both of which are unsustainable. The World Bank figure for Foreign Direct Investment in 2014 was $353 million, roughly $100 per person. By comparison, Ireland received over $4000 per person.

C-2

The labor participation rate was 41 percent in 2014, a slight improvement over previous years, and the working age population has been steadily shrinking due to out-migration.

In Moldova, Transparency International’s assessment shows that all governance institutions assessed have a high vulnerability to corruption, and lack transparency and integrity. Among those institutions highlighted as most vulnerable were political parties, the Ombudsman and the private sector.

C.1.2 Economic and Political Instability

Moldova has experienced a number of crises since the 2010 Constitutional Referendum; this has led to increased political instability stemming from popular mistrust of the authorities.

• In 2013 then-Prime Minister Vlad Filat was dismissed by a motion of censure from the Parliament.

• In the 2014 parliamentary elections the three pro-European parties, the Democratic Party of Moldova, the Liberal Democratic Party of Moldova, and the Liberal Party, failed to form a coalition for a majority government, leading to a minority government led by the Communist Party. A political scandal over the falsification of now former Prime Minister Chiril Gaburici's diplomas led to his resignation on June 15, 2015, and the swearing in of a new pro-European majority government two weeks later.

• A major financial scandal rocked the country in November 2014; it continues to affect the banking sector, sinking the value of the local currency by more than 30% against the dollar, and resulting in a drop in GDP in 2015 by one percent. The scandal has had major international repercussions, weakening Western support for Moldova and its economy. The EU has put budgetary support for the country on hold for the time being.

• Mass demonstrations occurred in April 2015, when it was discovered that the three biggest banks of Moldova were involved in several financial transactions that led to the disappearance of about $1 billion, the equivalent of 15 percent of GDP. This is fraud of a massive scale, indicating corrupt actors operating with impunity on the national scene.

• Prime Minister Strelet’s government was dismissed by Parliament on October 29, 2015 after less than three months in office. Sixty-five of the chamber’s 101 lawmakers, including some members of the pro-European Union governing coalition, voted to dismiss Prime Minister Valeriu Strelet and his cabinet.

• The current Prime Minister Pavel Filip Government was voted by 57 members of the Parliament, majority formed out of Democrats, Liberals, former Communists and a group of Liberal-Democrats, on January 20th, 2016. The voting session didn’t include the Q&A part and lasted for around 32 minutes. The decision outraged the protest movement outside the Parliament, who tried to get in the building. The newly appointed Ministers along with the deputies secretly left protected by lines of policemen. The Government was sworn in that evening before the President Nicolae Timofti.

C.1.3 Territorial Integrity

The country’s geographic position, between Romania to the west and Ukraine to the east, can also be seen as symbolic of Moldova’s deeply seated political ambivalence. Part of Romania during the interwar period, Moldova was incorporated into the Soviet Union at the close of World War II. To this day, although it does have access to an international transshipment port on the lower Danube, the port of choice for international trade is Odessa, Ukraine.

The rise of violent separatism in the former Soviet bloc, particularly in eastern Ukraine but also seen in Georgia, demonstrates the difficulties that Moldova faces in turning either east or west in political and economic orientation. For Moldova, their hotspot is the breakaway region of Transnistria which is run by a separatist regime comprising a Slavic majority population (mostly Ukrainians and Russians) with a sizable ethnic Moldovan minority.

Russian forces have remained in Transnistria since the USSR’s breakup in 1991, propping up

C-3 the regime and simultaneously fueling a sense of political uncertainty over the remainder of the country.

Moldovans historic connection to Romania generates opposing centrifugal tendencies. Owing to a change in legislation expanding the basis for Romanian citizenship to having a grandparent or great-grandparent of Romanian ancestry, many Moldovans have received Romanian passports, allow for entry into the EU labor markets. In 2010, The World Bank estimated that between 800,000 to 1.5 million people were in the process of applying for Romanian citizenship. In April 2014, visa requirements preventing Moldova’s citizens travelling to Schengen states of the EU were abolished, leading to further opportunities for migration.

C.1.4 Trade and Regulatory Regime Issues

Moldova is a member of the World Trade Organization, having joined in 2001. The top Moldovan export destinations are Russia, Romania, Italy, Turkey and Ukraine. The top importing countries are Romania, Ukraine, China, Germany and Russia.

The Republic of Moldova has a liberal trade regime. So far Moldova has signed Free Trade Agreements with 43 countries, including the EU-28 member states (DCFTA), Commonwealth of Independent States (CIS) member-states, countries of Eastern Europe, including Romania, Croatia, Serbia, Macedonia, Bosnia-Herzegovina, Albania, Bulgaria, Montenegro and Kosovo, and Turkey. Since 2007, Moldova is a member of the Central European Free Trade Agreement (CEFTA). Moldova also has the benefit of several preferential trade agreements with Norway, Canada, Switzerland, Japan and the United States.

Moldova and Ukraine operate joint customs posts to monitor the transit of people and commodities through Moldova's break-away Transnistria region, which remains under the auspices of an Organization for Security and Cooperation in Europe-mandated peacekeeping mission comprised of Moldovan, Transnistrian, Russian, and Ukrainian troops.

C.1.5 Doing Business Indicator

The country has made impressive progress in improving its Doing Business indicator ranking in recent years, moving into position 52 among 181 economies. The Distance to Frontier score for 2016 is 70.97 percent, which is an increase from last year and indicates that the regulatory gaps are slowly being minimized. For example, the Distance to Frontier for the Trading Across Borders area is 92.39 percent, which means that it will be difficult to make other major improvements, as the raw data are so close to the best ranking countries in the TAB (distance to frontier) area.

According to the World Bank, Moldova made significant improvements in Starting a Business, and is doing less well construction permits (170) and getting electricity (104) due to relative inaction in the reforms process.

World Bank - Doing Business Indicators

TOPICS DB 2016 Rank DB 2015 Rank Change in Rank Starting a Business 26 35 + 9 Dealing with Construction Permits 170 169 -1 Getting Electricity 104 100 -4 Registering Property 21 20 -1 Getting Credit 28 24 -4 Protecting Minority Investors 36 33 -3 Paying Taxes 78 69 -9 Trading Across Borders 33 32 -1 Enforcing Contracts 67 66 -1 Resolving Insolvency 60 59 -1

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While these changes have had substantial effect, the rate of economic growth has not changed appreciably. It should be noted that economic growth is influenced by many factors other than the legal and regulatory environment including, for example: macroeconomic conditions, infrastructure, and the quality of the educational system. Macroeconomic conditions are subject to exogenous shocks, infrastructure is expensive, and investments in education may not yield economic returns for years. Other indicators of good governance have stagnated, however, and corruption remains pervasive.

As a country with geographic, political, and economic challenges, Moldova starts with a significant disadvantage in the competition for foreign investment. It is all the more important, therefore, for Moldova to make good on its international commitments and demonstrate commitment to meeting its obligations under the DCFTA, the AA, and the World Trade Organization Trade Facilitation Agreements (TFA). Doing so will create the conditions for business to grow and prosper.

C.2 RELATIONSHIP TO USG STRATEGY AND COUNTRY DEVELOPMENT

COOPERATION STRATEGY

The United States is working to support peaceful, sovereign, independent, democratic states across the Euro-Atlantic space. A key USAID/Moldova priority is to support overall U.S.

foreign policy objectives by advancing the economic integration through transformational development activities. The development challenges the region faces are also numerous, complex, and diverse. The Moldova Structural Reform Program will directly contribute to the Joint State Department EUR and USAID E&E Regional Strategy (JRS) Goals and Objectives by strengthening Moldova’s economy. The proposed activity supports overall USG objectives for the region and for Moldova itself.

Goal 1: Advance Euro-Atlantic Integration, Peace, and Stability

Objective 1.1: Accelerate the integration of Ukraine, Moldova, and Georgia into Europe through support for implementation of their EU Association Agreements […]

Goal 3: Expand and Sustain Democratic Societies in the Balkans, Europe’s East, and Eurasia

Objective 3.4: Build capacity to counter Russian propaganda

Goal 4: Strengthen the Foundations of the Transatlantic Economy

Objective 4.3: Engage with the EU to promote approaches to regulation of the digital economy that strengthen the open digital market and continue innovation and growth

The Moldova Structural Reform Program is to be implemented in accordance with USAID’s program objective of economic growth. The program definition in respect to alignment with the USAID/Moldova Country Development and Cooperation Strategy (https://www.usaid.gov/sites/default/files/documents/1863/moldova-CDCS-FY13- 17.pdf) is as follows:

Development Objective 2: Increased Investment and Trade in Targeted Sectors

Intermediate Result (IR 2.1): Improved Economic Foundation for Growth Sub-IR 2.1.1 Improved Business and Trade Enabling Environment

The United States is also supporting Ukraine along with Moldova and Georgia as they implement Association Agreements with the EU. Efforts in Ukraine and Moldova include fighting corruption; advancing reforms in the energy sector; strengthening border guard and military capacity; supporting an open and free press and the space for civil society; and, helping to ensure free and fair elections.

file://agg2k8fpstbil01.ee.usaid.gov/Users/mrossman/Moldova/Moldova%20Structural%20Reform/(https:/www.usaid.gov/sites/default/files/documents/1863/moldova-CDCS-FY13-17.pdf) file://agg2k8fpstbil01.ee.usaid.gov/Users/mrossman/Moldova/Moldova%20Structural%20Reform/(https:/www.usaid.gov/sites/default/files/documents/1863/moldova-CDCS-FY13-17.pdf)

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C.3 RELATIONSHIP TO GOVERNMENT OF MOLDOVA STRATEGY AND

OTHER DONOR PROGRAMS OF ASSISTANCE

The GOM has committed to improving its business environment through a number of documents approved over the last several years, among which are the Moldova National Development Strategy 2020, the Regulatory Reform Strategy (RRS) and Action Plan (2013- 2020), the Road Map for Removing Constraints to the Business Environment (2013-2014), and the Competitiveness Road Map (2013-2014). Unfortunately, many reforms discussed in these documents are stagnant and lack implementation leadership.

A major change occurred when Moldova initialed in November 2013 and then signed in July 2015 an AA and DCFTA, with the European Union. The AA is considered a legally binding agreement, and its commitment to change provides ammunition to those seeking business environment reforms. See Annex 1 of the Assessment of Moldova’s Business Environment – Gaps and Opportunities for USAID in Year 4. (A detailed analysis, as of June 2015, of the Moldova Compliance and possible assistance gaps is presented in Annex 1 of the Assessment of Moldova’s Business Environment – Gaps and Opportunities for USAID BRITE in Year 4.

See https://dec.usaid.gov) this describes how some chapters of the DCFTA compel Moldova to introduce systemic changes.)

Major donor programs include:

• IFC Investment Climate Reform Moldova (2015-2018) - The project works with the government of Moldova to improve the Regulatory Environment for Business Regulations, enhance Market access with a focus on Agribusiness and facilitate Export;

and Increase the level of investment protection. Pls see Moldova_ICR_Project presentation for more information.

• The EU Border Assistance Mission for Ukraine and Moldova (EUBAM) has been working on issues such as joint border management between Ukraine and Moldova, EU approximation, trade facilitation, and human resource management reforms.

• An EU Support to DCFTA Implementation project is designed to support DCFTA implementation working groups, and lead donor coordination on DCFTA implementation.

• Another EU program provides ad hoc support including trainings and seminars on DCFTA and trade facilitation.

• Current EU Comprehensive Institution Building Programme (CIB) project pipeline includes, amongst others: 1) Support to Competition Council, phase II (€2 million); 2) Support to Intellectual Property Rights (IPR) enforcement in Moldova phase II (€2 million); 3) Support to Customs Service (€1.1 million); 4) Twinning on Customs single window (€1 million); 5) Support to food safety agency (€2 million) and 6) Twining project on Metrology and Standardization (€1.5 million)

Major new donor efforts are planned (An outlook on the donors assistance in the project areas, as of June 2015, is presented in Annexes 3,4,5 of the Assessment of Moldova’s Business Environment – Gaps and Opportunities for USAID BRITE in Year 4. See https://dec.usaid.gov):

• The EU Twinning Project, launched in late 2015,supports development and implementation of a national single window to link customs and other state agencies, and activation of the New Computerized Transit System (NCTS) that links Moldova to the EU information system. (EU support for NCTS implementation began in 2008.)

• Another EU program started in late 2015 provides capacity building and institutional strengthening in the areas of quality infrastructure, market surveillance, and developing and diversifying Moldova’s internal and external market conditions and opportunities, https://dec.usaid.gov/ http://www.amcham.md/userfiles/file/2016/IFC%20Moldova_ICR_Project%20Launch.pdf https://dec.usaid.gov/

C-6 and support execution of a competitiveness awareness program in the AA/DCFTA context.

• Another EU program focused on harmonizing food safety legislation and capacity building in the National Food Safety Agency (ANSA) began in September 2015.

C.4 RELATIONSHIP TO PAST USAID TECHNICAL ASSISTANCE

The Business Regulatory, Trade, and Investment Environment Project (BRITE) was a four-year effort ending in June 2016. The BRITE Program was designed to support Moldova’s economy by fostering the reforms necessary to attract investment, encourage entrepreneurship, increase competitiveness, and solidify the foundation of the country’s market economy. The project had had four primary pillars – tax administration, trade facilitation, high impact reforms, and strategic communication. This allowed the project to address the key constraints in the business environment but retain the flexibility to take advantage of opportunities as they arose. This had been a distinct advantage in what has proven to be an unstable political environment.

• Tax Administration: The focus of this contract component was to reduce the regulatory burden of tax compliance; to improve the effectiveness of the tax service;

and to increase transparency by improving internal processes for tax payments, collection, monitoring, and employee development at the State Tax Service (STS).

BRITE’s achievements had come primarily from the introduction of ICT solutions to improve transparency in interactions between taxpayers and tax inspectors, most notably the online Taxpayer Current Account. Efforts to streamline tax administration had been slower to take hold as they required consensus among the Ministry of Finance, the National Social Insurance House (CNAS), and the National Medical Insurance House (CNAM), which has yet to materialize.

• Trade Facilitation: Working closely with the Moldova Customs Service (MCS), BRITE focused its efforts on modernizing the current trade framework, increasing transparency in the application of trade and Customs regulations, and reducing the time and cost of moving goods across borders. This centered on implementation of the EU-Moldova DCFTA signed in July 2014 and the TFA adopted at the WTO Ministerial in December 2013. BRITE achieved its greatest success within this component. Indeed, gains in introduction of a risk-management platform and reduced documentary requirements, among other initiatives, position Moldova to reap the huge economic rewards that come from more efficient trade administration, as described below.

• High Impact Reforms: This component allowed BRITE to address any number of constraints to the business environment in cooperation with its partners in the public and private sector, and was initially defined by the results of a BizCLIR assessment in late 2012.