SOL-306-14-000005.pdf

Table of Contents Solicitation/Contract Form

PART I – THE SCHEDULE

SECTION B - SUPPLIES OR SERVICES AND PRICE/COSTS

B.1 PURPOSE

B.2 ESTIMATED COST, FIXED FEE, AND OBLIGATED AMOUNT

B.3 BUDGET

B.4 INDIRECT COSTS

B.5 ADVANCE UNDERSTANDING ON CEILING ON INDIRECT COST RATES AND FINAL

PERFORMANCE FOR INDIRECT COSTS

B.6 COST REIMBURSABLE

B.7 FEE SCHEDULE

B.8 CANCELLATION CEILING

SECTION C: DESCRIPTION/SPECIFICATIONS/STATEMENT OF WORK

C.1 LIST OF ACRONYMS

C.2 PURPOSE AND SCOPE

C.3 PROJECT COMPONENTS

C.4 MONITORING, EVALUATION, AND REPORTING

C.5 PROJECT MANAGEMENT APPROACH

C.6 GRANTS UNDER CONTRACT

SECTION D: PACKAGING AND MARKING

D.1 BRANDING STRATEGY

D.2 AIDAR 752.7009 – MARKING (JAN 1993)

SECTION E: INSPECTION AND ACCEPTANCE

E.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE

E.2 INSPECTION AND ACCEPTANCE

E.3 MONITORING AND EVALUATION PLAN

E.4 PERFORMANCE STANDARDS

SECTION F: DELIVERIES OR PERFORMANCE

F.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE

F.2 CONTRACT TYPE

F.3 PERIOD OF PERFORMANCE

F.4 PLACE OF PERFORMANCE

F.5 AUTHORIZED WORK DAY/WEEK

F.6 REPORT AND DELIVERABLES

F.7 KEY PERSONNEL

SECTION G: CONTRACT ADMINISTRATION DATA

G.1 AIDAR 752.7003 DOCUMENTATION FOR PAYMENT (NOV 1998)

G.2 CONTRACTING OFFICER’S AUTHORITY

G.3 CONTRACTING OFFICER’S REPRESENTATIVE (COR)

G.4 TECHNICAL DIRECTIONS/RELATIONSHIP WITH USAID

G.5 ACCEPTANCE AND APPROVAL

G.6 PAYING OFFICE

G.7 CONTRACTOR’S PRIMARY POINT OF CONTACT

G.8 CONTRACTOR’S PAYMENT ADDRESS

PART II – CLAUSES

SECTION H: SPECIAL CONTRACT REQUIREMENTS

H.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE

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

H.3 AIDAR 752.7004 EMERGENCY LOCATOR INFORMATION (JUL 1997)

H.4 AIDAR 752.228-3 WORKER’S COMPENSATION INSURANCE

H.5 INSURANCE AND SERVICES

H.6 AIDAR 752.7007 PERSONNEL COMPENSATION (JUL 2007)

H.7 ADDITIONAL REQUIREMENTS FOR PERSONNEL COMPENSATION

H.8 752.231-71 SALARY SUPPLEMENTS FOR HOST GOVERNMENT (HG) EMPLOYEES (OCT 1998)

H.9 AIDAR 752.7031 LEAVE AND HOLIDAYS (OCT 1989)

H.10 AIDAR 752.228-70 MEDICAL EVACUATION (MEDEVAC) SERVICES (JULY 2007)

H.11 USAID DISABILITY POLICY (DEC 2004)

H.12 AUTHORIZED GEOGRAPHIC CODE

H.13 EXECUTIVE ORDERS ON TERRORISM FINANCING

H.14 NONEXPENDABLE PROPERTY PURCHASES AND INFORMATION TECHNOLOGY

RESOURCES

H.15 LOGISTIC SUPPORT GOVERNMENT FURNISHED FACILITIES OR PROPERTY

H.16 COMPLIANCE WITH SECTION 508 OF THE REHABILITATION ACT OF 1973, AS AMENDED . 82

H.17 CONSENT TO SUBCONTRACTS

H.18 SUBCONTRACTING REQUIREMENTS

H. 19 SUB-AWARD REQUIREMENTS (MARCH 2012)

H.20 LIMITATION ON SUBCONTRACTING TO NON-LOCAL ENTITIES (MAY 2012)

H.21 REPORTING OF FOREIGN TAXES (JULY 2007)

H.22 FOREIGN GOVERNMENT DELEGATIONS TO INTERNATIONAL CONFERENCES

H.23 LOGISTIC SUPPORT

H.24 LANGUAGE REQUIREMENTS

H.25 GENDER REPORTING

H.26 PERSONAL IDENTITY VERIFICATION OF CONTRACTOR PERSONNEL (JAN 2011)

H.27 HOMELAND SECURITY PRESIDENTIAL DIRECTIVE-12 (HSPD-12) (SEP 2006)

H.28 STANDARDS OF CONDUCT -- IMPROPER BUSINESS PRACTICES

H.29 ACCESS TO USAID FACILITIES AND USAID’S INFORMATION SYSTEMS (AUGUST 2013)

H.30 PROHIBITION OF ASSISTANCE TO DRUG TRAFFICKERS

H.31 DISCLOSURE OF INFORMATION (AIDAR)

H.32 DATABASE REPORTING REQUIREMENTS

H.33 USE OF SYNCHRONIZED PRE-DEPLOYMENT AND OPERATIONAL TRACKER (SPOT) FOR

CONTRACTORS SUPPORTING A DIPLOMATIC OR CONSULAR MISSION OUTSIDE THE UNITED

STATES (SUPPLEMENT TO FAR 52.225-19)

H.34 FACILITIES USED FOR RELIGIOUS ACTIVITIES

H.35 SECURITY CLEARANCE

H.36 GRANTS UNDER CONTRACT

H.37 RIGHT TO PROCURE FROM OTHER SOURCES

H.38 NONDISCRIMINATION (JUNE 2012)

H.39 SERIOUS INCIDENT REPORTING IN AFGHANISTAN (DECEMBER 2010)

H.40 STANDARDS FOR ACCESSIBILITY FOR THE DISABLED IN USAID CONSTRUCTION

CONTRACTS (JULY 2007)

H.41 USAID-FINANCED THIRD-PARTY WEBSITES (AUGUST 2013)

H.42 CONFERENCE PLANNING AND REQUIRED APPROVALS (AUGUST 2013)

H.43 FRAUD REPORTING

H.44 VETTING

H.46 ENVIRONMENTAL COMPLIANCE

PART II: CONTRACT CLAUSES

SECTION I – CONTRACT CLAUSES

I.1 52.252-2 CLAUSES INCORPORATED BY REFERENCE (FEB 1998)

I.2 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE

I.3 52.216-8 FIXED FEE (JUN 2011)

I.4 52.216-24 LIMITATION OF GOVERNMENT LIABILITY (APR 1984)

I.5 FAR 52.209–7 INFORMATION REGARDINGN RESPONSIBILITY MATTERS (JUL 2013)

I.6 CANCELLATION UNDER MULTI-YEAR CONTRACTS (0CT-1997)

I.7 AIDAR 752.209-71 ORGANIZATIONAL CONFLICTS OF INTEREST DISCOVERED AFTER

AWARD (JUN 1993)

I.8 COMMUNICATIONS PRODUCTS (OCT 1994)

I.9 INTERNATIONAL TRAVEL APPROVAL

I.10 AIDAR 752.242-70 PERIODIC PROGRESS REPORTS (OCT 2007)

I.11 AIDAR 752.7006 NOTICES (APR 1984)

I.12 AIDAR 752.7008 USE OF GOVERNMENT FACILITIES OR PERSONNEL (APR 1984)

I.13 AIDAR 752.7025 APPROVALS (APR 1984)

I.14 752.202-1 DEFINITIONS. (JAN 1990)

I.15 USAID DEFINITIONS CLAUSE - SUPPLEMENT FOR CONTRACTS WITH AN

EDUCATIONAL INSTITUTION FOR PARTICIPANT TRAINING (APR 1984)

I.16 USAID DEFINITIONS CLAUSE - SUPPLEMENT FOR USAID CONTRACTS INVOLVING

PERFORMANCE OVERSEAS (DEC 1986)

I.17 752.211-70 LANGUAGE AND MEASUREMENT(JUN 1992)

I.18 752.245-70 GOVERNMENT PROPERTY - USAID REPORTING REQUIREMENTS

I.19 ANNUAL REPORT OF GOVERNMENT PROPERTY IN CONTRACTOR'S CUSTODY

I.20 752.7001 BIOGRAPHICAL DATA. (JUL 1997)

I.21 752.228-7 INSURANCE - LIABILITY TO THIRD PERSONS

I.22 752.229-70 FEDERAL, STATE AND LOCAL TAXES

I.23 752.7002 TRAVEL AND TRANSPORTATION. (JAN 1990)

I.24 752.7010 CONVERSION OF U.S. DOLLARS TO LOCAL CURRENCY. (APR 1984)

I.25 752.7011 ORIENTATION AND LANGUAGE TRAINING. (APR 1984)

I.26 752.7013 CONTRACTOR-MISSION RELATIONSHIPS. (OCT 1989)

I.27 752.7014 NOTICE OF CHANGES IN TRAVEL REGULATIONS. (JAN 1990)

I.28 752.7027 PERSONNEL. (DEC 1990)

I.29 752.7028 DIFFERENTIAL AND ALLOWANCES (JUL 1996)

I.30 752.7029 POST PRIVILEGES. (JUL 1993)

I.31 752.7033 PHYSICAL FITNESS. (JUL 1997)

I.32 752.7035 PUBLIC NOTICES. (DEC 1991)

I.33 752.7018 HEALTH AND ACCIDENT COVERAGE FOR USAID PARTICIPANT TRAINEES. (JAN

1999) 132

I.34 752.7019 PARTICIPANT TRAINING. (JAN 1999)

I.35 752.7023 REQUIRED VISA FORM FOR USAID PARTICIPANTS. (APR 1984)

PART III- LIST OF DOCUMENTS, EXHIBITS, & OTHER ATTACHMENTS

SECTION J: LIST OF ATTACHMENTS

PART IV - REPRESENTATIONS AND INSTRUCTIONS

SECTION K: REPRESENTATIONS, CERTIFICATIONS AND OTHER STATEMENTS OF

OFFERORS

K.1 NOTICE LISTING SOLICITATION PROVISIONS INCORPORATED BY REFERENCE

K.2 52.203-11 CERTIFICATION AND DISCLOSURE REGARDING PAYMENTS TO INFLUENCE

CERTAIN FEDERAL TRANSACTIONS. (SEP 2007)

K.3 52.204-3 TAXPAYER IDENTIFICATION. (OCT 1998)

K.4 52.204-8 ANNUAL REPRESENTATIONS AND CERTIFICATIONS. (JUL 2013)

K.5 52.209-5 CERTIFICATION REGARDING RESPONSIBILITY MATTERS. (APR 2010)

K.6 52.209-7 INFORMATION REGARDING RESPONSIBILITY MATTERS. (JUL 2013)

K.7 52.215-6 PLACE OF PERFORMANCE. (OCT 1997)

K.8 52.222-22 PREVIOUS CONTRACTS AND COMPLIANCE REPORTS. (FEB 1999)

K.9 52.222-25 AFFIRMATIVE ACTION COMPLIANCE. (APR 1984)

K.10 52.222-38 COMPLIANCE WITH VETERANS' EMPLOYMENT REPORTING REQUIREMENTS.

(SEP 2010)

K.11 52.225-2 BUY AMERICAN ACT - CERTIFICATE. (FEB 2009)

K.12 52.225-25 PROHIBITION ON CONTRACTING WITH ENTITIES ENGAGING IN CERTAIN

ACTIVITIES OR TRANSACTIONS RELATING TO IRAN-REPRESENTATION AND CERTIFICATIONS.

(DEC 2012)

K.13 52.227-6 ROYALTY INFORMATION. (APR 1984)

K.14 52.227-7 PATENTS - NOTICE OF GOVERNMENT LICENSEE. (APR 1984)

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

SOFTWARE. (DEC 2007)

K.16 52.230-1 COST ACCOUNTING STANDARDS NOTICES AND CERTIFICATION. (MAY 2012) ... 149

K.17 52.230-7 PROPOSAL DISCLOSURE--COST ACCOUNTING PRACTICE CHANGES. (APR 2005)

SECTION L: INSTRUCTIONS, CONDITIONS, AND NOTICES TO OFFERORS

L.1 52.252-1 SOLICITATION PROVISIONS INCORPORATED BY REFERENCE (FEB 1998)

L.2 FAR 52.216-1 TYPE OF CONTRACT (APR 1984)

L.3 FAR 52.233-2 SERVICE OF PROTEST (SEPT 2006)

L.4 GENERAL INSTRUCTIONS TO OFFERORS

L.5 PROPOSAL SUBMISSION

L.6 INSTRUCTIONS FOR THE PREPARATION OF THE TECHNICAL PROPOSAL

L.7 INSTRUCTIONS FOR THE PREPARATION OF THE COST PROPOSAL

SECTION M: TECHNICAL EVALUATION CRITERIA

M.1 52.252-1 SOLICITATION PROVISIONS INCORPORATED BY REFERENCE (FEB 1998)

M.2 GENERAL INFORMATION

M.3 EVALUATION CRITERIA

M.4 COST PROPOSAL EVALUATION

M.5 SOURCE SELECTION

M.6 DETERMINATION OF COMPETITIVE RANGE

M.7 CONTRACTING WITH SMALL BUSINESS CONCERNS

Solicitation/Contract Form

Please see attached

PART I – THE SCHEDULE

SECTION B - SUPPLIES OR SERVICES AND PRICE/COSTS

B.1 PURPOSE

The objective of the Strong Hubs for Afghan Hope and Resilience (SHAHAR) Program is to create well-governed, fiscally sustainable Afghan municipalities capable of meeting the needs of a growing urban population. Targeted support to municipal governments, as well as the General Directorate of Municipal Affairs (GDMA) and Municipal Advisory Boards (MABs), will lead to improved municipal financial management, urban service delivery, and citizen consultation.

B.2 ESTIMATED COST, FIXED FEE, AND OBLIGATED AMOUNT

(a) The fixed fee is $ TBD and the estimated cost plus all fixed fee is $ TBD.

(b) Within the estimated cost plus all possible fee specified in paragraph (a) above, the amount currently obligated and available for reimbursement of allowable and allocable 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.3 BUDGET

As the period of performance for this contract is three (3) years, the budget is presented in to three, one-year increments.

[THIS SPACE LEFT INTENTIONALLY BLANK]

CONTRACT LINE ITEM NUMBERS (CLINs)

CLIN

No

Component Year 1 Year 2 Year 3 Total

A. Assistance to the General Directorate for Municipal Affairs

(GDMA)

002 B. Assistance to Municipal Governments

003 C. Support to Municipal Advisory Boards

004 Grants Under Contract $600,000

Total Cost without Fee

005 Fixed- Fee

Total Cost plus Fixed- Fee

B.4 INDIRECT COSTS

For the Prime Contractor:

Pending establishment of revised provisional or final indirect cost rates, allowable indirect costs shall be reimbursed on the basis of the following negotiated provisional or predetermined rates and the appropriate bases:

Description Rate Base Type Period

TBD 1/ 1/ 1/

1/Base of Application:

Type of Rate: Predetermined Period:

For Major Subcontractor(s):

Pending establishment of revised provisional or final indirect cost rates, allowable indirect costs shall be reimbursed on the basis of the following negotiated provisional or predetermined rates and the appropriate bases:

Description Rate Base Type Period

TBD 1/ 1/ 1/

1/Base of Application:

Type of Rate: Predetermined Period:

“Major subcontractor(s)” are those subcontractors whose proposed costs exceed 20 percent of the contract value or who are otherwise defined by the prime to be essential to successful project implementation. All primes MUST identify “major subcontractors” in the cover letter of their proposals.

B.5 ADVANCE UNDERSTANDING ON CEILING ON INDIRECT COST RATES AND

FINAL PERFORMANCE FOR INDIRECT COSTS

(a) For each of the Contractor's accounting periods during the term of this contract, the parties agree as follows:

(1) The distribution base for establishment of final [rate 1 description to be inserted] is [to be inserted at award].

(2) The distribution base for establishment of final [rate 2 description to be inserted] is [to be

(3)The distribution base for establishment of final [rate 3 description to be inserted] is [to be

(b) The Contractor will make no change in its established method of classifying or allocating indirect costs without the prior written approval of the contracting officer.

(c) Reimbursement for indirect costs shall be at the final negotiated rates, but not in excess of the following ceiling rates:

Description 2014 2015 2016 [Rate 1 description to be inserted] __% ___% ___% [Rate 2 description to be inserted] __% ___% ___% [Rate 3 description to be inserted] __% ___% ___%

(d) The government shall not be obligated to pay any additional amount on account of indirect costs above the ceiling rates established in the contract. This advance understanding shall not change any monetary ceiling, cost limitation, or obligation established in the contract.

B.6 COST REIMBURSABLE

This is a Cost Reimbursable contract. The costs allowable shall be limited to reasonable, allocable and necessary costs determined in accordance with FAR 52.216-7, Allowable Cost and Payment, FAR 52.216-8, Fixed Fee, if applicable, and AIDAR 752.7003, Documentation for Payment.

B.7 FEE SCHEDULE

Pursuant to FAR 16.306 (d), the fixed fee payable under this contract will be tied to the completion of the deliverables specified in Section C of this contract and in accordance with approved Fee Schedule below.

Numbering of Deliverables: The first letter of the numbering convention is the component of the program; the number that follows is the year; and the last number is the number of the deliverable for that component. E.g., A.1.2 is component A, Year 1, Deliverable number 2.

Fixed Fee Distribution Table:

Component/Statement of Work (SoW) Deliverable Portion of Fixed- Fee (%)

Component A

Deliverable A.1.1

Deliverable A.1.2

Deliverable A.1.3

Deliverable A.3.1

Deliverable A.1.4

Deliverable A.2.1

Deliverable A.1.5

Deliverable A.1.6

Deliverable A.1.7

Deliverable A.1.8

Deliverable A.1.9

Deliverable A.1.10

Deliverable A.1.11

Component B

Deliverable B.1.1

Deliverable B.1.2

Deliverable B.2.1

Deliverable B.1.3

Deliverable B.2.2

Deliverable B.1.4

Deliverable B.2.3

Deliverable B.1.5

Deliverable B.2.4

Deliverable B.1.6

Deliverable B.1.7

Deliverable B.1.8

Deliverable B.2.5

Deliverable B.1.9

Deliverable B.1.10

Deliverable B.1.11

Deliverable B.1.12

Deliverable B.1.13

Deliverable B.1.14

Deliverable B.1.15

Deliverable B.2.6

Deliverable B.1.16

Deliverable B.1.17

Deliverable B.1.18

Deliverable B.2.7

Deliverable B.2.8

Deliverable B.1.19

Deliverable B.1.20

Deliverable B.1.21

Deliverable B.1.22

Deliverable B.1.23

Deliverable B.2.9

Component C

Deliverable C.1.1

Deliverable C.1.2

Deliverable C.1.3

TOTAL 100%

TOTAL FEE $___________________

B.8 CANCELLATION CEILING

In the event that the Government cancels requirements for services in subsequent program years under this contract, the following conditions will apply.

(a) If cancellation under the clause at 52.217-2, “Cancellation Under Multi-year Contracts” occurs, the contractor will be paid a cancellation charge not over the cancellation ceiling defined as follows:

The cancellation ceiling shall be the amount allotted to this contract under the Limitation of Funds clause (FAR 52.232-22(b)) at the time the cancellation notice is issued by the Contracting Officer.

(b) In accordance with the Cancellation under Multi-year Contracts clause, the cancellation charge will cover only:

(1) Costs-

(i) Incurred by the contractor and/or subcontractor;

(ii) Reasonably necessary for performance of the contract; and

(iii) That would have been equitably amortized over the entire multi-year contract period but, because of the cancellation, are not so amortized; and

(2) A reasonable profit or fee on the costs.

[END OF SECTION B]

SECTION C: DESCRIPTION/SPECIFICATIONS/STATEMENT OF WORK

Title: Strong Hubs for Afghan Hope and Resilience (SHAHAR)

C.1 LIST OF ACRONYMS

ADC Area Development Council ASGP Afghanistan Sub-National Governance Program CCB City Coordination Body CDC Community Development Council CEDAW Convention on the Elimination of All Forms of Discrimination against Women CSC Citizen Service Center COR Contracting Officer’s Representative EDP Economic Development Plan FMS Financial Management System GDMA General Directorate for Municipal Affairs GIRoA Government of the Islamic Republic of Afghanistan GIS Geographic Information System IDLG Independent Directorate for Local Governance IFMS Integrated Financial Management System ISAF International Security Assistance Force ITU Information Technology Unit JICA Japanese International Cooperation Agency KCI Kabul City Initiative MAB Municipal Advisory Board MDF Municipal Development Fund MDG Millennium Development Goal MDLF Municipal Lending and Development Fund MoF Ministry of Finance MoWA Ministry of Women’s Affairs MTT Mobile Training Team MUDA Ministry of Urban Development Affairs NAPWA National Action Plan for the Women of Afghanistan NPP National Priority Programme OSM On-Site Monitor PDC Provincial Development Committee PDP Provincial Development Plan PPP Public-Private Partnership RAMP-UP Regional Afghan Municipalities Program for Urban Populations REZ Regional Economic Zone RGAP Revenue Generation Action Plan RMIDP Regional and Municipal Infrastructure Development Program SDAG Service Delivery Advisory Group SHAHAR Strong Hubs for Afghan Hope and Resilience SNG Sub-National Governance SOP Standard Operating Procedures SWM Solid Waste Management

TOR Terms of Reference UNDP United Nations Development Program

C.2 PURPOSE AND SCOPE

Municipalities play a unique and important role within Afghanistan’s sub-national governance (SNG) architecture. They are fiscally independent units of government, capable of raising revenue and investing in urban services and infrastructure. They are the face of Afghanistan’s urban local public sector, positioned to consult citizens, assess local needs, and respond to a growing Afghan urban populace. (According to the CIA World Factbook, 32% of the Afghan population lives in cities that are growing at a rate of 4.4% per year). By creating new public-private partnerships, investing in new infrastructure, and constructing modern markets for trading, municipalities are instrumental in shaping the economic conditions that will lead to more jobs.

With mayoral and municipal council elections anticipated to take place in 2015, municipalities will become laboratories for localized democracy. The election of mayors and municipal council members will demonstrate the concept of a “social contract” wherein citizens pay required taxes and, in turn, municipal governments invest in key urban services such as trash collection, roads and sidewalks, street lights, drainage, and parks. Citizens will require that service delivery is aligned with community priorities and implemented in a manner that ensures quality and transparency. If expectations are not met, citizens will hold their municipal officials accountable with their votes.

As Afghanistan enters the Transformation Decade (2015 – 2024) and the threat of insurgent activity remains a reality for many of its citizens, municipalities will also function as hubs of stability, resiliency, and prosperity. The relative geographic compactness of urban areas means that cities are often the first areas where security is established and maintained by the state.

Given Afghanistan’s roughly 161 recognized provincial and district capitals (the official number is regularly adjusted by central authorities) and a vastly improved network of connecting roads, municipalities can function like “inkblots” of stability, spreading the economic and social benefits of urban living outwards and pushing insurgent elements to the periphery.

A set of laws, regulations, and policies, albeit imperfect, provides municipalities with a significant degree of fiscal and political independence. The Constitution (Chapter 8, Article 6) states that mayors and members of municipal councils are elected through free, general, secret, and direct elections, and municipal affairs will be regulated by municipal law. While mayors and municipal council members have yet to be elected, Government of the Islamic Republic of Afghanistan (GIRoA) officials have verbally assured the international community that municipal elections will likely take place in 2015, following the 2014 presidential elections. The outdated Law on Municipalities, enacted under the Taliban in 2000, still serves as the legal basis for the purpose and powers of municipal governments. Subsequent laws, such as the Municipal Tax Law for City Services (2000), the Safay’i Tax Regulation (2000), and the Public Finance and Expenditure Law (2005), specify municipal revenue sources and municipalities’ fiscal independence from the central government.

GIRoA’s Independent Directorate for Local Governance (IDLG), specifically IDLG’s General

Directorate for Municipal Affairs (GDMA), is mandated with overseeing municipal governance.

IDLG’s oversight functions involve establishing and enforcing standard policies and procedures, auditing and evaluating municipal performance, hiring mayors, coordinating donor activity, and serving as a conduit between municipalities and the Ministry of Finance (MoF). Although municipalities maintain a degree of fiscal independence, the MoF approves their annual budgets, staffing patterns, and fee schedules. IDLG’s SNG Policy and the National Priority Programmes (NPP) for Local Governance and Infrastructure Development provide a roadmap for domestic reforms and donor interventions in support of the “software” and “hardware” needed to develop Afghanistan’s nascent but fast-growing municipalities. This includes qualified staff, modern financial management systems, and infrastructure upgrades to roads, drainage systems, markets, and parks.

While Afghan municipalities have evolved in recent years because of targeted USAID and other donor programs, the challenges faced by Afghan municipalities are still immense. The capacity to perform core municipal functions is conspicuously low, particularly in smaller cities where incentives for attracting talent do not exist. A deficit of qualified municipal engineers, caused in part by low salaries and in part by low capacity, is a hindrance to project design and implementation, contributing to low budget execution rates. Furthermore, municipalities have limited autonomy when it comes to hiring new staff. Official tashkeels (staffing patterns) can only be adjusted once per year with approval from GDMA and MoF. A new merit-based pay and grade initiative led by Afghanistan’s Civil Service Commission (CSC) should give municipalities the flexibility to hire more qualified public servants at higher salaries but the initiative is taking hold at a gradual pace.

Municipalities still struggle to execute the majority of development budgets, a dilemma caused by a variety of factors including low human capacity, cumbersome procurement regulations, insufficient revenue forecasting methods, meddlesome politicians, and donor dependence. A legal framework for public-private partnerships does not exist, leading to missed opportunities for private sector participation in service delivery. An array of consultative citizen bodies, left over from years of donor interventions, often makes citizen consultation and participation inefficient. However, efforts by GDMA to consolidate citizen organizational bodies for each municipality into one Municipal Advisory Board (MAB) should streamline municipal government outreach efforts. Systems for budget formulation, financial transactions, and financial reporting vary widely from municipality to municipality, from paper ledgers to fully automated databases. Many of these challenges can be addressed with continued support with an eye towards the human capital needed to manage service delivery projects, municipal public finances, and citizen outreach initiatives.

As the transition towards Afghan-led development gains momentum, building effective and sustainable municipal systems for revenue generation and expenditure, project management, including women’s involvement in governance, and citizen consultation – with strategic support from GDMA – is the path to ensuring more effective urban service delivery.

C.2.1 Linkages to Other USG Projects

The design of SHAHAR is well grounded in the guiding operational principles of USAID’s 2011-2015 Policy Framework as well as USAID Forward. The approach will build on previous investments in technical assistance, assessments, and infrastructure provided by USAID and the donor community, particularly the Regional Afghan Municipalities Program for Urban Municipalities (RAMP-UP) and the Kabul City Initiative (KCI). By building on the successes of these previous programs, SHAHAR leverages existing municipal partnerships and relationships, USAID-funded innovations in technology (e.g., financial management software), continues to build the capacity of local institutions such as GDMA and mayoral offices, and hence promotes sustainability. By reviewing the contributions of RAMP-UP and KCI, and applying strategic analysis to the design of SHAHAR, the project is applying selectivity by focusing on up to 16 small-to-medium sized provincial capitals where USAID can have the greatest impact. The project also incorporates USAID’s own core principles by assisting municipalities to build their policy capacity, budget management systems, and increasing the role of women in government.

SHAHAR will work in many of the central municipalities of the provinces in which USAID’s new provincial SNG Project will operate, as increasing local input into Provincial Development Plans (PDPs) is an objective of both projects. SNG will work with Provincial Development Committees (PDCs) to improve and increase the contributions of PDPs to line directorates planning, while SHAHAR will help mayors improve their lobbying efforts aimed at PDC members so that PDPs reflect more accurately reflect municipal needs.

C.2.2 Linkages to the Work of Other Donors

During the life of this project, four international donors will also oversee municipal support projects:

United Nations Development Programme (UNDP): Capacity-building of municipal administrations in Afghanistan’s four regional centers (Herat, Kandahar, Jalalabad, Mazar-e-Sharif) and 15 other IDLG-proposed municipalities to be named later.

Japan International Cooperation Agency (JICA): Infrastructure projects in Afghanistan’s four regional centers aligned with needs identified at the city, gozar, and community levels.

World Bank: Infrastructure capacity building projects in Kabul and Afghanistan’s four regional centers plus Kunduz combined with targeted support to IDLG procurement unit and Ministry of Urban Development Affairs (MUDA) urban planning unit.

German Agency for International Cooperation (GIZ): Support to MUDA in the areas of water sector planning, water supply, and urban wastewater management.

JICA, GIZ and World Bank projects are expected to be considerably more infrastructure-oriented than SHAHAR while UNDP is expected to perform capacity-building interventions similar to SHAHAR. If the Contractor operates in the same municipality in which another donor operates, the Contractor will coordinate locally with that donor to maximize project results. This includes minimizing overlap on some activities and collaborating on other activities. The Contractor will also monitor and coordinate donor activities using its embedded advisor(s) in GDMA.

C.2.3 Project Strategy

SHAHAR is one component of USAID’s SNG program. The program’s results framework is shown below in Figure 1. The overall Assistance Objective (AO) of the SNG program is to improve performance and accountability of governance in Afghanistan. Contributing to the accomplishment of this AO is an Intermediate Result (IR) – and the primary purpose of SHAHAR: to strengthen Afghan municipalities’ abilities to meet citizen priorities and needs in service delivery. As shown in Figure 1, to achieve this IR SHAHAR will accomplish four Sub- IRs.

Figure 1: USAID Subnational Governance Results Framework

Theories of Change

The sub-IRs of the SNG Results Framework are based on four complementary theories of change:

Long-term strategic planning will provide citizens with the best possible mix of services given limited resources.

An integrated performance and financial management system will enable municipal managers to deliver urban services more effectively.

Municipal systems for receiving and evaluating citizen priorities and concerns, including those of marginal populations, will lead to informed municipal decision-making better able to meet citizens’ needs.

Improved oversight of municipal affairs by central authorities and local representative bodies will lead to transparent and accountable service delivery.

In addition to supporting the SNG Results Framework, SHAHAR’s strategy will closely align with USAID’s draft policy on Sustainable Service Delivery in an Increasingly Urbanized World.

Recognizing unprecedented rates of urbanization throughout the developing world (urban areas are expected to gain 1.4 billion people by 2030 when 60% of the world’s population will reside in cities), the policy recognizes urban migration as a potentially positive force given that rural poverty rates tend to fall in countries with higher rates of urbanization.

Principles Guiding Urban Programming

In order to meet the needs of a growing urban population in a sustainable manner, the following four principles should guide urban programming in development settings, and are to be incorporated into SHAHAR:

Ensuring Political and Financial Sustainability: Interventions should only target local governments demonstrating both the political will to make institutional reforms and the ability to finance service provision on a sustained basis and without dependence on the central government or donors. SHAHAR will foster political will and financial sustainability by attaching strict conditions to capital improvement projects, including alignment with citizen priorities, cost sharing, monitoring plans, and a sustainability analysis clearly indicating how municipalities’ own-source revenues will be earmarked for operations and maintenance in future years.

Advancing Accountable, Pro-Poor Service Delivery Models: According to a USAID study, on average, Afghanistan’s informal settlement population doubles each year.

SHAHAR will encourage informal settlement dwellers – in addition to residents, business leaders, and civic organizations – to take advantage of citizen consultation mechanisms. MABs, and eventually Municipal Councils, will serve as the primary conduit for channeling service delivery concerns from the citizenry to municipal governments. The finalization and implementation of comprehensive five-year urban plans in target municipalities will improve the design and layout of cities, especially in unplanned areas.

Fostering Market Orientation and Public-Private Collaboration: Cities offer opportunities essential to achieving USAID’s goals in economic development and poverty alleviation. Cities have emerged as the engines of economic growth and job creation, accounting for approximately 70% of global economic production.1 SHAHAR will place a strong emphasis on strengthening public-private collaboration at the municipal level, laying the groundwork for new service delivery partnerships in line with GDMA’s new public-private partnership regulations. The project will deliver technical assistance that helps municipalities improve the investment climate, conduct business community outreach, and foster new and innovative urban service approaches.

Supporting Municipal Resilience: SHAHAR will help build institutions that incentivize municipalities to be more performance oriented and self-reliant. A pilot Municipal Development Fund, managed at the central level, will supplement development projects using municipal block grants but only for municipalities that have demonstrated the ability to execute 75% of their development budgets. The program will also entail

1 World Bank (2010), “Systems of Cities: Harnessing Urbanization for Growth and Poverty Alleviation.”

capacity-building efforts focused specifically on operations and maintenance skills such as human resources (e.g., mechanics) and asset management, without which capital improvements would quickly deteriorate.

C.2.4 Cross Cutting Principles

To be integrated into each of SHAHAR’s three components are the following themes:

a) Inclusion of Women in Government and Gender Equity in Governance Article 22 of the Afghan Constitution states: “Any kind of discrimination and privilege between the citizens of Afghanistan are prohibited. The citizens of Afghanistan – whether man or woman – have equal rights and duties before the law.” Further to this, and consistent with the Convention on the Elimination of All Forms of Discrimination against Women (CEDAW), in 2007 the Ministry of Women’s Affairs (MoWA) developed the National Action Plan for the Women of Afghanistan (NAPWA). NAPWA envisions that Afghanistan will be “a peaceful and progressive country where women and men enjoy security, equal rights and opportunities in all aspects of life.” It pursues the twin goals of gender equity and women’s empowerment.

Afghanistan signed the Millennium Declaration in 2004 and has targeted to reach the Millennium Development Goals (MDGs) by 2020. One of the objectives is to increase female participation in elected and appointed bodies and the civil service at all levels of government to 30% by 2020. Moreover, the 2010 SNG Policy aims that, “to support the achievement of gender equity all government entities will embrace and implement gender equity efforts, including gender sensitive policies, strategies, budgets and programs. Ensuring that gender equity is achieved is the shared responsibility among government entities and the national and sub-national levels.” The SNG Policy calls for an affirmative action policy that reserves at least 25% of the seats of Municipal Councils for women.

At present, gender needs and interests are still not given sufficient priority at the municipal level. Gender has not been fully addressed as a crosscutting theme within municipalities. There still exists the misconception that gender is only about women. As urbanization affects men and women in different ways, municipalities are in a strategic position to introduce gender-aware approaches to urban development; ensure equal access to – and control over – the resources and opportunities offered, and; ensure that the design, implementation, monitoring, and management of public services benefit both men and women. SHAHAR will support municipalities in helping women overcome barriers that prevent them from participating in local government and planning institutions and accessing opportunities and resources.

There are many activities that could be implemented to help achieve GIRoA’s gender-related development goals; the Contractor is expected to encourage gender mainstreaming by municipalities in all aspects of their administration and operations. Some illustrative examples of the things that the Contractor could encourage municipalities to do include:

institutionalization of gender mainstreaming by allocating a budget line in the annual municipal budget for gender-related activities; development of women-only infrastructure such as women’s parks and public latrines; recruiting more female employees; coordinating gender-related activities with other sub-national government entities and civil society organizations, and; developing and adopting policies that address the particular needs of businesswomen.

b) Youth Engagement

It is widely acknowledged that Afghanistan is in a period of demographic transition due to its large “youth bulge.” Estimates vary, but approximately 70 percent of the Afghan population is under 25 years of age, according to a recent United Nations report. 2 This is potentially concerning, for it is believed that a similar demographic trend (i.e. a large youth population facing a lack of jobs in an environment of sluggish socio-economic development) contributed to the Arab Spring in Egypt,3 where only 50% of the population is under 25 years of age.

Although a large youth population does not guarantee in itself unrest, it does represent a variable that should be considered for any development project. In the case of SHAHAR, youth inclusion is particularly essential because broad civic participation is a prerequisite to creating governmental bodies that are responsive to citizen needs and priorities. Incorporating Afghan youth into this project will be a challenge, due to low levels of education and varying notions of the role of government, but it is a requirement for sustainable success.

In addition to ensuring that youth are accounted for in each activity – such as media outreach targeting youth and budget formulation including youth priorities (e.g., playfields) – the Contractor will incorporate youth-specific activities into the project design, bringing youth in direct contact with their municipal government. Examples of such activities include: engaging local youth clubs in service projects, youth-in-government internships, youth liaison offices in municipal administrations, youth town halls, and working with municipal advisory boards to encourage the participation of youth in municipal affairs. Creative approaches must be used to ensure youth are engaged with their local government.

The Contractor may also work directly with MAB youth members, tailoring services provided to match their skills and objectives. According to GDMA’s Terms of Reference for MABs, one seat on each board is reserved for a member of the youth community. In addition, because the minimum age for board membership is 20 years, there exists the possibility that multiple representatives of the youth community could serve on the same MAB.

c) Alignment with NPP and SNG Policy

GIRoA’s NPP process and GDMA’s SNG Policy are the foundations on which any local governance project must rest. Alignment with these two initiatives supports GIRoA’s vision of governance and assists donor collaboration to maximize the impact of local governance initiatives.

Activities of the SHAHAR project will contribute significantly to goals GIRoA has set for municipal governance development as outlined in IDLG’s National Priority Program for Local

2 Afghan Youth and the United Nations, 2011, Issue #3, pg 1:

http://unama.unmissions.org/LinkClick.aspx?link=Publication%2FUN+Newspaper%2FNewspaper+Au gust-21-web.pdf&tabid=12321&mid=15816&language=en-US 3 Roudi-Fahimi, Farzaneh; Youth Revolt in Egypt, A Country at the Turning Point:

http://www.prb.org/Articles/2011/youth-egypt-revolt.aspx http://unama.unmissions.org/LinkClick.aspx?link=Publication%2FUN+Newspaper%2FNewspaper+August-21-web.pdf&tabid=12321&mid=15816&language=en-US http://unama.unmissions.org/LinkClick.aspx?link=Publication%2FUN+Newspaper%2FNewspaper+August-21-web.pdf&tabid=12321&mid=15816&language=en-US http://www.prb.org/Articles/2011/youth-egypt-revolt.aspx

Governance.4 The primary IDLG NPP goals that SHAHAR contributes to achieving are:

By the end of 2014, 14 provincial municipalities will have been assisted in developing Municipal Urban Strategic Development Plans and urban management of them in partnership with MUDA (see Deliverable 16.5 in the IDLG document).

By the end of 2014, 18 provincial municipalities will have specific action plans for revenue generation, extending their ability to be able to manage the revenues in an accountable and transparent manner, according to the standards of national law and international good practices (see Deliverable 17.2 in the IDLG document).

By end of 2014, 33 provincial municipalities will have instituted Integrated Financial and Budgeting Systems. This will enable them to manage properly revenues and expenditures in a transparent fashion (see Deliverable 17.3 in the IDLG document).

By the end of 2014, a Solid Waste Management System has been launched at community level in 33 provincial municipalities (see Deliverable 18.5 in the IDLG document).

By the end of 2014, new Municipal Councils will have been fully oriented on their duties, roles, and responsibilities (see Deliverable 23.2 in the IDLG document).

In 2010, IDLG released the SNG Policy, framing its vision of Afghan governance at the provincial, district, village, and municipal levels. Working at the municipal level, this project will support specific initiatives of the SNG Policy in the following ways:

Assist GDMA to build the capacity of MABs, municipal administrations and, once active, Municipal Councils.

Improve GDMA’s ability to guide and monitor the working of municipalities.

Advise GDMA on national standards for municipal management systems.

Ensure urban planning is founded on bottom-up processes.

Establish public-private partnerships to deliver essential public services.

Organize an association of mayors for a more coordinated and unified approach across municipalities.

Encourage community participation in municipal governance.

C.2.5 Project Locations

The program will focus on up to 16 small- and medium-sized provincial capitals located within USAID’s three designated Regional Economic Zones (REZ). The selection will be finalized at the work plan stage in close coordination between the contractor, USAID Mission, and IDLG.

The draft USAID urban policy on Sustainable Service Delivery in an Increasingly Urbanized World5 recognizes that interventions to strengthen service provision are most effective when

4 http://www.thekabulprocess.gov.af/images/npps/gov/gov-lg-final.pdf 5 DRAFT: Sustainable Service Delivery in an Increasingly Urbanized World http://www.usaid.gov/sites/default/files/documents/1870/USAIDSustainableUrbanServicesPolicy_D raftforReview_March2013.pdf http://www.thekabulprocess.gov.af/images/npps/gov/gov-lg-final.pdf http://www.usaid.gov/sites/default/files/documents/1870/USAIDSustainableUrbanServicesPolicy_DraftforReview_March2013.pdf http://www.usaid.gov/sites/default/files/documents/1870/USAIDSustainableUrbanServicesPolicy_DraftforReview_March2013.pdf urbanization is incipient or intermediate. In these settings, building of capacity and new infrastructure typically has greater impact and is more cost effective. Adequately planning the growth of nascent cities is cost-effective given the higher costs of corrective measures such as infrastructure retrofitting or slum upgrading.

IDLG/GDMA has suggested a preliminary list of 16 target municipalities including: Qala-e- Naw, Farah, Chaghcharan, Lashkar Gah, Qalat, Tirin Kot, Maimana, Sheberghan, Pul-e-Khumri, Asadabad, Ghazni, Pul-e-Alam, Maidan Shar, Mehterlam, Charikar, and Nili. USAID agrees with this recommendation and recognizes the challenges our implementing partners may face in ensuring adequate staff security and mobility for project implementation, monitoring, and evaluation in this transitioning environment. In the event that the Contractor assesses it would not be able to ensure a high-quality program because of staffing issues, transport logistics, or security in one or more of the target municipalities listed above, it may propose alternate provincial municipalities. The proposal should explain the reasons for making the alternate suggestion. In addition, bidders are encouraged to propose “trip-wires” to be monitored during the course of implementation that would signal the need to suspend or terminate assistance in any given provincial capital.

USAID will issue one contract for SHAHAR and the program’s headquarters will be located in Kabul. At least one embedded advisor will be physically located in the offices of GDMA.

Activities in target municipalities, including support to MABs, will be managed by embedded advisors who are physically located in municipal government offices. Such an arrangement will allow for a capacity-building approach that uses on-the-job training, coaching, and mentoring as the preferred method for transfer of systems and skills.

Although the primary foci of the SHAHAR project are GDMA and the selected provincial municipalities, development of the municipalities is a national priority and involves coordination of provincial capital-level efforts across multiple municipalities, not just the targeted municipalities. Recognizing this, SHAHAR is designed to permit and support initiatives and activities that take place outside of the selected municipalities but which benefit them. For example, it is anticipated that national-level efforts for the municipalities may involve activities that take place in the largest provincial capital cities, such as Kabul and Kandahar. In fact, SHAHAR itself has deliverables – including the National Mayors’ Network (Deliverable A.1.8), Municipal Conferences (Deliverable A.1.9), and the network of MABs and advocacy groups (Deliverable C.1.3) – that require cross-municipality activities. The Offeror should plan and propose these kinds of plans activities and deliverables that will strengthen the overall SHAHAR project and include these in their propose budget.

C.3 PROJECT COMPONENTS

SHAHAR will encompass three components: (A) Assistance to the General Directorate of Municipal Affairs (GDMA), (B) Assistance to Mayors and Municipal Administrations, and (C) Assistance to Municipal Advisory Boards (MABs).

COMPONENT A: Interventions at the GDMA level will focus on systematic reviews of municipal performance, dissemination of rules and regulations, mechanisms for feedback, budget approval, management of a pilot municipal block grant fund, establishment of a national mayors’ network, and fulfillment of detailed land-use plans in coordination with the MUDA. In addition, a major focus of the contract will be to ensure that training capacity within GDMA is bolstered.

COMPONENT B: Interventions at the municipal government level will focus on implementation of customized capacity-building plans for improved performance, mechanisms for outreach and citizen consultation, revenue generation, improved forecasting, budget formulation and execution, project management including monitoring and evaluation, and mentoring of district municipalities.

COMPONENT C: Interventions targeting MABs will focus on systematic monitoring of municipal development projects and formal mechanisms for both citizen consultation and delivering feedback to municipal governments.

SHAHAR will address each component with a defined set of targeted deliverables, described in detail below. Each Component’s set of deliverables will affect the four intermediate results of SHAHAR’s results framework (See Attachment J.10) for a matrix illustrating the component and intermediate results to be achieved by deliverable). These deliverables and activities have been selected for a variety of interrelated reasons, including mutual agreement with GIRoA that these are needed developments of GDMA and the municipalities; they draw from the lessons learned from implementing municipality development programs previously in Afghanistan (e.g., from RAMP-UP); are a logical extension and appropriate next steps based on the progress GDMA and the municipalities have made thus far, and; incorporate the theories of change, principles for urban planning, and project themes outlined earlier in this RFP.

COMPONENT A – ASSISTANCE TO GDMA

One of the important lessons from the previous RAMP-UP program was that greater attention needed to be paid to strengthening GDMA, for it has coordinating, technical, training, and resourcing responsibilities that municipalities must depend on for their successful growth and effective functioning. Component A serves Sub-IR 1 and Sub-IR 2 by enhancing the capacity of the central level (GDMA) to perform its coordinating functions, and to help the municipalities strengthen their administrative and financial systems.

The objectives of SHAHAR under Component A are to assist GDMA to have the capacity – and to implement on a sustained basis – the following vis-à-vis the municipalities:

Regularly review and evaluate each municipality’s financial performance using the Integrated Financial Management System (IFMS).

Regularly review and evaluate overall municipal performance and capacity using IFMS.

Provision of periodic training on municipal competencies.

Disseminate guidance, rules, and regulations to municipalities in a timely and systematic manner.

Provide timely and constructive feedback to municipalities.

Solicit feedback from municipalities in a systematic manner.

Work with MUDA to measure, on an annual basis, municipalities’ performance against comprehensive five-year urban plans (including detailed land-use plans).

Manage the nationwide Municipal Development Fund (MDF) in coordination with the Ministry of Finance.

Administer a nationwide network of Afghan mayors that meets regularly and acts as a forum for mayors to discuss shared challenges and opportunities.

Approve annual municipal budgets in a maximum of three weeks.

Draft and disseminate municipal gender guidelines.

COMPONENT A: Deliverables

Numbering of Deliverables: The first letter of the numbering convention is the component of the program; the number that follows is the year; and the last number is the number of the deliverable for that component. E.g., A.1.2 is component A, Year 1, Deliverable number 2.

In order to achieve these objectives, the Contractor will produce a number of key deliverables.

They are as follows:

Development of the Integrated Financial Management System (IFMS) Hub and New Modules

The Contractor will develop two new IFMS modules to be integrated with the six current IFMS financial processes modules designed by RAMP-UP South and described in Annex B. These two new modules, a repository of GDMA policies and a performance measurement system, will enhance IFMS, upgrading it into a more holistic municipal management system:

Deliverable A.1.1 Legal and Policy Module: This module will serve as a clearinghouse of national laws with implications for municipal governments, municipal standard operating procedures (SOPs) (developed under COMPONENT B deliverable Develop Standard Operating Procedures), terms of reference, executive decrees, and other GDMA policies. This module will give municipalities instant access to the complete archive of pertinent laws and GDMA directives.

The module will allow GDMA to disseminate quickly new or modified information to municipalities. The Contractor will develop a systematized and intuitive system of cataloging these documents to ensure ease of document look-up. A search function may be developed if appropriate.

Deliverable A.1.2 Performance Measurement Databank Module: This module will serve as a municipal performance component wherein municipalities compile and input selected performance metrics (related to service delivery, customer service, citizen consultation, and other criteria…