SOL-486-13-000005_RFP_ACTI_Final.pdf

Issuance Date: November 29, 2012

Closing Date: January 15, 2013 Closing Time: 4:00 P.M., Bangkok, local time

Subject: SOL-486-13-000005 ASEAN Connectivity through Trade and Investment (ACTI)

To All Prospective Offerors:

The United States Government, represented by the U.S. Agency for International Development (USAID), is seeking proposals from qualified organizations interested in providing the services as described in the attached solicitation.

USAID plans to award a Cost plus Fixed Fee (CPFF) term type, cost reimbursement contract.

You have received this document through the USAID Internet site. Some of the Attachment/Forms/Appendices/Exhibits in Section J have been supplied to you electronically. Other Attachments/Forms/Appendices/Exhibits, which may not be included electronically in this solicitation, may be found at http://www.USAID.GOV/procurement_bus_opp/procurement/forms/ or by contacting the person in block 10 on page 1 of the SF 33.

If you have received this RFP electronically, then you must notify the contact person listed in block 10 of the original SF33 of the original RFP by fax or e-mail. As the recipient of this solicitation document, you are responsible for ensuring that you have received it from the Internet in its entirety. USAID bears no responsibility for data errors resulting from transmission or conversion processes. Further, please be aware that amendments to solicitations are occasionally issued and will be posted on the same Internet site from which you downloaded the solicitation. Generally, the Contracting Officer will send copies of amendments to all those who have sent in the written confirmation of solicitation receipt.

However, USAID does not guarantee that an amendment will be issued to you directly based upon written confirmation that you have downloaded the solicitation from the Internet. You are therefore advised to regularly check the FedBizOps website (http://www.fedbizops.gov/) for amendments.

Please pay careful attention to Section K - Representations, Certifications and Acknowledgements of the accompanying Request for Proposals. Offerors are now expected to comply with FAR clause 52.204-7, Central Contractor Registration, and complete the annual representations and certifications electronically via the Online Representations and Certifications Application website at http://orca.bpn.gov.

Offerors must carefully adhere to Section L - Instructions to Offerors and Section M - Evaluation Factors for Award.

Sections B through J of the solicitation will become the basis for the contract. Any blanks in Sections B through J will be completed by the Contracting Officer before award.

You are strongly encouraged to submit any comments or questions concerning this RFP by no later than December 18, 2012. These should be directed to Mr. Craig Riegler, Regional Contracting Officer and attention to Ms. Maria Rosario M.

Arenas, Senior Acquisition Specialist, USAID/RDMA, Bangkok, Thailand. Mr. Riegler and Ms. Arenas may be reached at the following e-mail addresses, respectively: criegler@usaid.gov and marenas@usaid.gov.

The Proposal must be prepared in two separate parts: the Technical Proposal must address technical aspects only while the Business (Cost) Proposal must present the costs and address related issues such as responsibility. Offerors must submit one (1) original and five (5) copies of their Technical Proposal in a sealed envelope which is clearly marked as being in response to this RFP. Offerors must submit one (1) original and one (1) copy of their Business Proposal separately in a sealed envelope indicating that it is in response to this RFP and contains cost information. One copy each

1. THIS CONTRACT IS A RATED ORDER RATING PAGE OF PAGES

UNDER DPAS (15 CFR 700)

2. CONTRACT NUMBER 3. SOLICITATION NUMBER 4. TYPE OF SOLICITATION 5. DATE ISSUED 6. REQUISITION/PURCHASE NUMBER

SEALED BID (IFB)

NEGOTIATED

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

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

9. Sealed offers in original and _____________________________ copies for furnishing the supplies or services in the Schedule will be received at the place specified in Item 8, or if handcarried, in the depository located in until local time _______________________ (Hour) (Date)

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.

A. NAME B. TELEPHONE (NO COLLECT CALLS) C. E-MAIL ADDRESS

AREA CODE NUMBER EXT.

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

PART I - THE SCHEDULE PART II - CONTRACT CLAUSES

A SOLICITATION/CONTRACT FORM 3

I CONTRACT CLAUSES 48 - 63

B SUPPLIES OR SERVICES AND PRICES/COSTS 4 - 5 PART III - LIST OF DOCUMENTS, EXHIBITS AND OTHER ATTACH.

C DESCRIPTION/SPECS./WORK STATEMENT 6- 31 J LIST OF ATTACHMENTS 64

D PACKAGING AND MARKING 32 PART IV - REPRESENTATIONS AND INSTRUCTIONS

E INSPECTION AND ACCEPTANCE 33

F DELIVERIES OR PERFORMANCE 34 - 36

G CONTRACT ADMINISTRATION DATA 37 - 39 L INSTR., CONDS., AND NOTICES TO OFFERORS 71 - 87

H SPECIAL CONTRACT REQUIREMENTS 40 - 47 M EVALUATION FACTORS FOR AWARD 88 - 91

K

REPRESENTATIONS, CERTIFICATIONS AND OTHER

STATEMENTS OF OFFERORS 65 - 70

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

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

13. DISCOUNT FOR PROMPT PAYMENT 10 CALENDAR DAYS (%) 20 CALENDAR DAYS (%) 30 CALENDAR DAYS (%) CALENDAR DAYS (%)

(See Section I, Clause No. 52-232-8)

14. ACKNOWLEDGEMENT OF AMENDMENTS AMENDMENT NO. DATE AMENDMENT NO. DATE

(The offeror acknowledges receipt of amendments to the SOLICITATION for offerors and related documents numbered and dated:

CODE FACILITY

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

ADDRESS

OF OFFEROR

(Type or print)

15B. TELEPHONE NUMBER 17. SIGNATURE 18. OFFER DATE

AREA CODE NUMBER EXT.

15C. CHECK IF REMITTANCE ADDRESS IS DIFFERENT FROM

ABOVE - ENTER SUCH ADDRESS IN SCHEDULE

19. ACCEPTED AS TO ITEMS NUMBERED 20. AMOUNT 21. ACCOUNTING AND APPROPRIATION

22. AUTHORITY FOR USING OTHER THAN FULL AND OPEN COMPETITION: 23. SUBMIT INVOICES TO ADDRESS SHOWN IN ITEM (4 copies unless otherwise specified)

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

24. ADMINISTERED BY (If other than Item 7)

USAID Regional Development Mission Asia (RDMA) Bangkok, Thailand

25. PAYMENT WILL BE MADE BYCODE CODE

26. NAME OF CONTRACTING OFFICER (Type or print) 27. UNITED STATES OF AMERICA 28. AWARD DATE

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

(Signature of Contracting Officer)

(REV. 9-97)

10. FOR INFORMATION CALL:

11. TABLE OF CONTENTS

STANDARD FORM 33

SOLICITATION, OFFER AND AWARD

SOLICITATION

OFFER (Must be fully completed by offeror)

AWARD (To be completed by Government)

1 N/A

SOL-486-13-000005 November 29, 2012 X

Regional Office of Procurement USAID Regional Development Mission Asia (RDMA) USAID Box 47, Bangkok

APO AP 96546

5 (for Tech) / 1 (for Cost)

Item 7 4:00pm January 15, 2013

Maria Rosario Arenas 662-263-7453 marenas@usaid.gov

See Attached Table of Contents

$.00

Office of Financial Management

USAID/RDMA

25th Floor Athenee Tower 63 Wireless Road Bangkok, Thailand 10330

Craig Riegler , Regional Contracting Officer

PART I - THE SCHEDULE

SECTION B - SUPPLIES OR SERVICES AND PRICE/COSTS

B.1 PURPOSE (CPFF)

The purpose of this contract is to provide services as described in detail in Section C, Statement of Work.

B.2 CONTRACT TYPE AND SERVICES (CPFF)

This is a cost-plus-fixed fee (CPFF) term-type, cost reimbursement contract. For the consideration set forth in the contract, the Contractor must provide the deliverables or outputs described in Section C and comply with all contract requirements.

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

(a) The estimated cost for the performance of the work required hereunder, exclusive of fixed fee, if any, is to be determined (TBD). The fixed fee is to be determined (TBD). The estimated cost plus fixed fee is to be determined (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, if any) for performance hereunder is to be determined (TBD). The Contractor must not exceed the aforesaid obligated amount unless authorized by the Contracting Officer pursuant to the clause of this contract entitled “Limitation of Funds” (FAR 52.232-22). See Section I of this contract.

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

B.4 BUDGET SCHEDULE

(a) Format: to be determined (TBD)

B.5 INDIRECT COSTS (DEC 1997)

The contract clause entitled “Allowable Cost and Payment (MAR 2000)”, FAR 52.216-7, specifies that the indirect cost rates must 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 must be reimbursed on the basis of the following negotiated provisional or predetermined rates and the appropriate bases:

Description Rate Base Type Period

1/ 1/ 1/

[To be determined]

B.6 ADVANCE UNDERSTANDING ON CEILING INDIRECT COST RATES AND FINAL REIMBURSEMENT FOR

INDIRECT COSTS

(1) Reimbursement for allowable indirect costs must be at final negotiated rates but not in excess of the following ceiling rates:

Description Rate Base Type Period 1/ 1/ 1/

[To be determined]

(2) 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.

(3) The Government must not be obligated to pay any additional amount on account of indirect costs above the ceiling rates established in the contract.

(4) This understanding must not change any monetary ceiling, obligation, cost limitation, or obligation established in the contract.

B.7 COST REIMBURSABLE

The costs allowable must 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.

- End of Section B -

SECTION C - STATEMENT OF WORK

C.1 TITLE OF ACTIVITY1

The title of this activity is “ASEAN Connectivity through Trade and Investment (ACTI)”

C.2 PURPOSE

The United States Agency for International Development (USAID), Regional Development Mission for Asia (USAID/RDMA) General Development Office (USAID/RDMA/GDO) seeks quality support to establish and manage a flexible mechanism that will provide technical assistance, training, materials, and other resources as needed to accelerate the implementation of select components of the Association of Southeast Asian Nations (ASEAN) Economic Community (AEC) Blueprint and the ASEAN-U.S. Enhanced Partnership Plan of Action 2011-2015 (PoA)2. The ASEAN Connectivity through Trade and Investment (ACTI) technical support mechanism is part of a bundle of U.S. Government (USG) interventions under the umbrella of the ASEAN-U.S. Partnership Project, which also includes a separate activity focused on promoting good governance3. The ASEAN-U.S. Partnership Project aims to help strengthen regional and ASEAN Member State institutions to improve their capacity to implement the ASEAN Community Blueprints. USG assistance to ASEAN is also provided through bilateral projects which help individual ASEAN Member States4 achieve their AEC commitments, through complementary regional projects such as support to the Asia-Pacific Economic Cooperation (APEC) forum, and assistance funded by other USG agencies.

ASEAN is advancing economic integration among its Member States through a harmonized system of protocols and implementation regimes governing intra- and extra-regional investment flows, trade, and the production and movement of goods and services within ASEAN member states and beyond. The support being acquired will focus on assisting ASEAN’s regional economic-related working bodies as well as national level assistance in several ASEAN member states to implement their commitments under the ASEAN Economic Community so that the whole of ASEAN will derive the benefits of an integrated and harmonized customs, trading, and investment regime by 2015. The Activity will also support overall USG economic cooperation with ASEAN, which occurs through various economic agencies in support of the ASEAN-U.S. Trade and Investment Framework Arrangement (TIFA)5 and other relevant agreements.

The overall development goal of this Activity is to strengthen selected regional and Member States’ institutions to support Trade and Investment targets outlined in the Blueprint for integrated ASEAN Economic Community.

C.3 BACKGROUND

C.3.1 Introduction

Southeast Asia is a diverse region, encompassing some of the world’s wealthiest countries and some of its poorest.

ASEAN was established in 1967 by Indonesia, Malaysia, Philippines, Singapore and Thailand. Between 1984 and 1999, Brunei Darussalam, Vietnam, Laos, Burma (Myanmar), and Cambodia joined the association. The original founding document, the ASEAN Declaration, states that the aims and purposes of ASEAN are to: 1) accelerate economic growth, social progress and cultural development in the region, and 2) promote regional peace and stability through abiding respect for justice and the rule of law in the relationship among countries in the region and adherence to the principles of the United Nations Charter. The United States has been an official Dialogue Partner with ASEAN since 19776.

1 An “activity” is defined in the USAID ADS Glossary as: “Previous definition of activity no longer valid. An activity is a sub-component of a project that contributes to a project purpose. It typically refers to an award (such as a contract or cooperative agreement), or a component of a project such as policy dialogue that may be undertaken directly by Mission staff.”; http://transition.usaid.gov/policy/ads/glossary.pdf 2 The AEC Blueprint is a sub-section of the Roadmap for an ASEAN Community 2009-2015. See Footnote 14 for link.

3 The ASEAN-U.S. Partnership for Good Governance, Equitable and Sustainable Development and Security (ASEAN-U.S. PROGRESS) project will provide technical assistance, training, materials, and other resources as needed to support and enhance ASEAN’s capacity to advance good governance and regional security, and to promote equitable and sustainable human development in Southeast Asia in line with ASEAN Political-Security and Socio-Cultural Blueprints, as well as the ASEAN-U.S. Enhanced Partnership Plan of Action 2011-2015 (PoA).

4 http://www.asean.org/asean/asean-member-states (Brunei, Burma (Myanmar), Cambodia, Indonesia, Laos, Malaysia, Philippines, Singapore, Thailand, and Vietnam) 5 The United States and ASEAN members concluded a TIFA in August 2006 and since then have been working to build upon already strong trade and investment ties to further enhance their economic relationship as well as promote ASEAN regional economic integration. The United States intensified its work under the TIFA in 2009, presenting ASEAN senior officials a number of ambitious proposals to be pursued under the TIFA work plan. The text of the ASEAN-U.S. Trade and Investment Framework is available at http://www.ustr.gov/sites/default/files/uploads/agreements/tifa/asset_upload_file932_9760.pdf 6 Dialogue Partner is a formal status designation by ASEAN. Other ASEAN Dialogue Partners are China, Japan, South Korea, Australia, New Zealand, EU, India, Canada, and Russia.

ASEAN’s vision and demonstrated commitment to achieving an economic community that adheres to and embraces the principle of rules-based systems for compliance and implementation of economic Agreements has been accompanied by rapid economic growth. A major factor favoring the region’s rapid growth is that ASEAN’s leadership enthusiastically embraces globalization and global competitiveness. Economic integration accelerates growth and poverty reduction in absolute terms while also bringing benefits to countries outside the region and to trading partners. Because of significant U.S. trade with Southeast Asia, there is a strong interest in ensuring that regional economic integration continues and that ASEAN Member States work together to institutionalize inclusive economic development in the region, reduce poverty, and resolve shared problems. The deepening and broadening of the ASEAN-U.S. partnership over the last decade is evidence of this interest.

In the last 15 years in particular, ASEAN has made steady progress towards the creation of a viable structure for, and the attainment of economic integration. Achievements in broad terms, include:

1997 Adoption of the ASEAN Vision 2020 to create “a block of Southeast Asian nations, outward looking, living in peace, stability and prosperity, bonded together in partnership in dynamic development and in a community of caring societies.”

2003 ASEAN leaders resolved that an ASEAN Community would be established according to three pillars; 1) ASEAN Political Security Community; 2) ASEAN Economic Community; and 3) ASEAN Socio-Cultural Community.

2007 ASEAN leaders issued a Declaration on the ASEAN Economic Community Blueprint, which called for advancing the target date for establishing an economically integrated ASEAN Community from 2020 to 2015.

2008 The ASEAN Charter was signed. It provided ASEAN with a legal personality and framework respectively, created the Commitee of Permanent Representatives for its ten Member states, called for the establishment of a human rights body, and strengthened the role of the annual rotating Chairmanship of ASEAN.

2009 ASEAN leaders adopted the Roadmap for an ASEAN Community 2009-2015 which included Blueprints for integration of all three ASEAN Communities.

The 2003 declaration of the ASEAN structure aligned with three pillars, or “Communities”, was critical to defining the contemporary mandate of the organization as follows: 7

The goal of the Political-Security Community is to ensure that the peoples and Member states of ASEAN live in peace with one another and with the world at large, in a just, democratic and harmonious environment.

The Economic Community seeks to deepen and broaden economic integration through existing and new initiatives with clear timelines and in accordance with the principles of an open, outward-looking, inclusive and market-driven economy.

The primary goal of Socio-Cultural Community is to promote a people-centered and socially responsible ASEAN by forging a common identity and building a caring and sharing society, which is inclusive and harmonious, and where the wellbeing, livelihood, and welfare of the peoples are enhanced.

Concomitant with establishing the ASEAN Economic Community (AEC), ASEAN Member States pledged to act in accordance with the principles of an open, outward-looking, inclusive, and market-driven economy consistent with multilateral rules as well as adhere to rules-based systems for compliance and implementation of economic commitments.

For example, the Blueprint specified that the AEC would establish an ASEAN Single Window (ASW) for customs clearance and a single production base making ASEAN more dynamic and competitive with new mechanisms and measures to strengthen the implementation of its existing economic initiatives. Other AEC priorities include human resources development and capacity building; recognition of professional qualifications; closer consultation on macroeconomic and financial policies; trade financing measures; enhanced infrastructure and communications connectivity; development of electronic transactions through e-ASEAN; integrating industries across the region to promote regional sourcing; and enhancing private sector involvement for developing the AEC.

7 Roadmap for an ASEAN Community 2009-2015.

The AEC’s mandate also includes actions to narrow the development divide among ASEAN Member States and accelerate integration of Cambodia, Laos, Burma (Myanmar) and Vietnam (CLMV) through the Initiative for ASEAN Integration (IAI) and other regional initiatives.

U.S. engagement with ASEAN has deepened significantly over the last six years. Since 2004, USAID has supported a portfolio of technical assistance programs, which provides training and policy advice at the regional and national levels to promote good economic governance towards regional economic integration. Throughout the duration of these programs, USAID- and the U.S. State Department-funded programs have worked alongside other U.S. Government (USG) agencies, principally the U.S. Trade Representative, the U.S. Department of Commerce and the U.S. Department of Energy, to support AEC implementation and cooperation under the ASEAN-U.S. Trade and Investment Framework Arrangement (TIFA). Continued deepening and widening of this engagement is a logical next step in seeking to further consolidate and build upon ASEAN-U.S. partnership.

Cooperation activities under the evolving ASEAN-U.S. partnership were first formalized in 2006 and again in 2011 through two Plans of Action (PoAs) to implement the ASEAN-U.S. Enhanced Partnership for Enduring Peace and Prosperity.

Together, they extend over the uninterrupted period of 2006-2015 and mirror agreements reached at the ASEAN-U.S.

Leaders Meetings in 2009, 2010 and 2011 to strengthen ASEAN-U.S. cooperation and the continued implementation of the Joint Vision Statement of ASEAN-U.S. Enhanced Partnership. Specifically for economic-related matters, the ASEAN- U.S. TIFA focuses on trade and investment cooperation and is implemented through an annual work plan agreed through the dialogue process between ASEAN Economic Ministers and the U.S. Trade Representative. Collectively these documents provide strategic programming guidance that underpins U.S. Government support to ASEAN-led initiatives for addressing issues and challenges to achieving ASEAN’s Vision of a peaceful, stable, integrated, prosperous, and caring ASEAN Community by 2015. 8

C.3.2 Progress towards ASEAN Economic Integration

ASEAN’s economic integration efforts have contributed to growth in the region and hold promise for further spurring regional and global trade. Important nascent achievements include:

Launched in 1992, the ASEAN Free Trade Area (AFTA) is functional, including the January 2010 launch of the Common Effective Preferential Tariff for the ASEAN Free Trade Agreement. (CEPT AFTA);

Because of AFTA, tariffs are now 5% or lower on more than 99% of all goods traded among six of the 10 Member States -- Brunei, Indonesia, Malaysia, the Philippines, Singapore, and Thailand. The target among these countries is an average tariff rate of 0.05%; and

Burma (Myanmar), Cambodia, Laos, and Vietnam continue to work towards a 2015 target year for lowering their tariffs.

Past and current USG-supported technical assistance (TA) in support of the Plans of Action (PoAs) and the ASEAN-U.S.

TIFA has contributed to the above achievements in numerous ways by working principally on three key priorities for achieving a single market without barriers:

Trade facilitation;

Customs reform; and Standards harmonization.

The goal of these efforts is to spur economic growth through cohesive and sustained integration among ASEAN Member states. To illustrate the complex, dynamic, multi-dimensional, and intensive nature of the TA required for supporting the AEC-related objectives, examples of USG-support in 2011-2012, which include joint ASEAN-APEC collaboration in areas of shared interests, are as follows:

A workshop to promote the ASEAN Trade Repository and National Trade Repository concept to the ASEAN Senior Economic Officials.

8 Plan of Action to Implement the ASEAN-U.S. Enhanced Partnership for Enduring Peace and Prosperity, 2011-2015, July 2011.

http://www.asean.org/images/documents/plan%20of%20action%20to%20implement%20the%20asean-us%20enhanced%20partnership%202011-2015%20- %20final%20-%20endorsed%20at%20the%20pmc1%20session%20with%20the%20us%20-%2022%20july%202011.pdf

Finalization of the text and tables for the ASEAN Harmonized Tariff Nomenclature (AHTN) during the sixth AHTN Task Force Meetings; two ASEAN Harmonized Tariff Nomenclature 2012 Training for Trainers Workshops.

The first ASEAN-U.S. Trade and Environment Forum.

An ASEAN-APEC workshop on green buildings and construction in collaboration with the U.S. Department of Commerce.

ASEAN Workshop on World Bank’s Ease of Doing Business Survey Methodology: Trading Across Borders.

Development of a multi-year training program to support the implementation of the ASEAN Medical Device Directive in 2014.

The ASEAN Medical Device Workshop including medical device regulators and industry representatives.

The ASEAN-U.S. Business Forum led by the United States Trade Representative.

A draft Lao PDR National Single Window (NSW) roadmap.

ASEAN Single Window (ASW) Gateway software installation, integration between National Single Window and ASEAN Single Window Gateway, and initial testing as part of ASW Pilot Project Component 2 (“Pilot”) implementation for four ASEAN Member States.

A workshop on energy efficiency standards and labeling programs for household appliances.

Private Sector Partnership: Involvement of the private sector is critical to ASEAN economic integration. In furtherance of this priority U.S. assistance in 2011 convened a forum of prominent business representatives from a variety of sectors to prioritize trade facilitation measures for improving trade flows among ASEAN Member States. This included improving regulatory transparency and establishing an effective e-border clearance process, harmonizing standards and conformity assessment procedures, and simplifying customs procedures and logistics. The forum afforded the private sector the opportunity to learn about ASEAN‘s work in pursuing the ASEAN Economic Community 2015, to provide input to ASEAN’s progress in developing the Single Window, and to identify areas for improving the efficiency of cross-border transactions.

These business priorities were discussed directly with ASEAN Economic Ministers at the close of the forum. The success of this first event focused on trade facilitation led to the convening of the first-ever ASEAN-U.S. Business Forum, led on the U.S. side by the U.S. Trade Representative, in August 2012.

Standards and conformance: ASEAN-U.S. cooperation on standards and conformance falls within the framework of the ASEAN-U.S. Enhanced Partnership (AEP) and the Trade and Investment Framework Agreement (TIFA). The standards technical assistance provided by USAID is originated via cooperation between the United States Department of Commerce (DOC), and the ASEAN Consultative Committee on Standards and Quality (ACCSQ) on standards-related trade measures. USG technical support has focused on helping to reduce the potentially negative effects that differing standards and conformance arrangements can have on trade and investment through dialogue and information exchange on both cross-cutting and sector specific standards-related measures. This work supports ASEAN’s economic integration efforts since standards and conformance fundamentally underpin the trade of goods in the global economy. This is critical since ASEAN and the United States are each other’s fourth largest trading partner.

Standards work has included work on medical devices, automotive biofuels, automotive standards, electrical safety, information and communications technologies (ICT), and green buildings.

C.3.3 Planned Future Support

Current USG-sponsored technical assistance, and other support and services to ASEAN have been channeled principally through the USAID-managed ADVANCE (ASEAN Development Vision to Advance National Cooperation and Economic Integration) project (2007-2012).9 ADVANCE supports all three ASEAN Communities (pillars) and aims to: 1) design and

9 ADVANCE works across key areas of U.S. national interests and foreign assistance priorities including economic prosperity, democratic institutions, and regional security, and provides access to other federal agencies with overlapping portfolios in those areas to implement and coordinate with their counterparts in Southeast Asia. ADVANCE is a five-year program (2007-2012) managed by USAID/RDMA with input by the Department of State as well as other U.S. Government Departments and Agencies.

implement regional activities that enhance ASEAN integration and cooperation; 2) complement regional programs with single country pilot programs in ASEAN Member States that are related to their commitments under the ASEAN Blueprints for integration; 3) strengthen the ASEAN Secretariat; and 4) leverage funding and expertise of development partners such as corporations, foundations, ASEAN Member States, other donors and NGOs to address jointly defined development challenges.

A mid-term performance evaluation of ADVANCE was conducted by an independent outside evaluation specialist in 2011.

The findings and recommendations were intended to inform management decisions during the ADVANCE Activity’s final period of implementation, as well as guide the strategic programming direction and scope of the ASEAN-U.S. Partnership Project to begin in FY 2013. Highlights of the review findings and recommendations that are of relevance to ASEAN’s economic integration and growth and a deepening of ASEAN-U.S. relations are summarized below:

ADVANCE has made a significant difference in United States-ASEAN relations through its visible presence in the ASEAN Secretariat.

ADVANCE has allowed for tremendous flexibility in responding meaningfully to diverse needs by ASEAN, and as well, formed the basis for development of a strong relationship with ASEAN, grounded in trust and quality U.S.

technical assistance and intellectual leadership. Also, the deepening U.S.-ASEAN engagement has been further reinforced by its activities across all three ASEAN Communities.

The economic pillar has been the nimblest of the three pillars in which to effect change: far less sensitive than the political-security pillar, and far more concrete (and of immediate interest) than the socio-cultural pillar. The ASEAN Single Window (ASW) is an integral part of ASEAN’s roadmap towards creating an Economic Community, as are the National Single Windows.

The trade barriers between countries can lead to enormously long delays in shipping goods within the economic community when compared with trans-oceanic freight destined to far-away Europe. Automating the process helps, so that there are fewer delays in obtaining signatures and necessary clearances. Automation without a fundamental review and modification of the underpinning legal structure, however, is insufficient.

The work by ASW in conducting reviews of national rules, regulations, and laws impacting trade, and in linking the different government ministries to work together towards reform, are some of the most important accomplishments of the USG support under the ASEAN economic integration pillar.

Challenges remain in overall ASEAN absorption/capacity and in finding visible and relevant ways to link programs to national-level impacts and priorities.

The current levels of resources and capacity allocated to the Secretariat are not commensurate with ASEAN’s increasing sophistication and influence.

The ASW Project is expanding technical assistance at the national level to build local capacity, including in Laos, which is complementary to the USAID LUNA-Lao activity.10

Coordination and engagement with other donors should be strengthened to help shoulder ASW funding/development.

Private sector engagement has expanded through current-programs and must continue to build sustainability of interventions with ASEAN.

Future Planned Assistance

ADVANCE’s day-to-day operations are embedded within the ASEAN Secretariat. Efforts under ADVANCE have been critical to fostering the trust and respect that exists in U.S.-ASEAN relations.

10 A component of the ADVANCE mechanism, Laos-United States Support for BTA, WTO and AEC Project (LUNA-Lao) is supporting the Government of Laos to make the legal reforms and institutional upgrades needed for the country to join the WTO, implement the U.S.-Laos Bilateral Trade Agreement, and comply with its obligations under the ASEAN Economic Community.

Using the lessons learned from the ADVANCE mechanism, USAID/RDMA’s follow-on ASEAN support efforts will be more programmatically focused. One activity will strengthen ASEAN governance as it relates to political security and socio-cultural cooperation. The other activity, and the one addressed in this Statement of Work, will focus on ASEAN’s economic integration and competitiveness. This latter activity will include:

Completion of efforts on the ASEAN Single Window through tailored national level support;

Continued efforts aimed at promoting regional market integration through standards harmonization, with a particular focus on Cambodia, Laos, Burma (Myanmar), and Vietnam (CLMV); improve competitiveness of SMEs in selected supply chains in less developed economies so as to increase regional trade and narrow the development gap among Member States;

Increase the use of clean energy and enhance energy efficiency in the region; and Expand regional broadband capacity and addressing the rural digital divide.

C. 4 ACTIVITY OBJECTIVES, ILLUSTRATIVE TECHNICAL ASSISTANCE, AND EXPECTED RESULTS

C.4.1 ASEAN Connectivity through Trade and Investment (ACTI) Scope:

The goal of this Activity is to strengthen selected regional and Member States’ institutions to support Trade and Investment targets outlined in the Blueprints for an integrated ASEAN Economic Community. To this end, USAID and its implementing partners will continue to work with the ASEAN, non-profit institutions, the private sector, academic institutions, other donors, and all concerned U.S. stakeholders.

At the macro level, this Activity aims to improve the trade and investment-enabling environment, which will enhance private sector integration and competitiveness in Southeast Asia, and help move ASEAN towards realizing AEC. The interventions include trade facilitation technical assistance that will broadly support capacity building and customs modernization in the ASEAN region. In addition to trade facilitation, the Activity will respond to the opportunities and the challenges ASEAN SMEs face in establishing AEC. Cleaner, cheaper, and more accessible energy and energy efficient technology are essential drivers of economic growth; and this activity will advance ASEAN efficiency and competitiveness.

A final key component of this Activity is ICT and broadband support, as guided by the ASEAN ICT Masterplan11, to help ASEAN reduce the regional digital divide, improve livelihoods, and build greater AEC integration.

Implementation of this Activity will support ASEAN Member States’ (AMS) efforts to honor their commitments to AEC by working to remove remaining impediments to economic integration and supporting broader commitment to global openness and outward orientation. This Activity builds upon prior USG development efforts—mainly via ADVANCE—to strengthen ASEAN and promote regional integration. Specifically, ACTI will continue USAID’s technical support aimed at:

Providing quality analysis, research and policy advice on trade and investment issues;

Supporting regional institutions and building capacity at the national level for implementation of selected interventions that help ASEAN advance towards AEC; and Strengthening ASEAN’s institutional capacity to effectively implement its regional integration mandate.

This Activity is part of a bundle of USG programming designed to fit together to provide comprehensive support to ASEAN across all three ASEAN Community Pillars (ASEAN Political-Security Community, ASEAN Economic Community, and ASEAN Socio-Cultural Community). The logical framework below illustrates the overall ASEAN-U.S.

Partnership Project, of which this Activity is a component.

11 http://www.asean.org/resources/publications/asean-publications/item/asean-ict-masterplan-2015

Figure 1: Logical Framework for ASEAN Partnership Project

Source: USAID/RDMA (Note this figure can also be found in the appendix); the Political & Security, Human Development, and ASEAN Secretariat technical assistance will be covered by the PROGRESS Activity (see Footnote 4).

Collaborative opportunities between the activities (i.e. Good Governance, Trade and Investment, Human Development, and ASEAN Secretariat capacity building) may allow resources to be channeled for greater development depth and impact. Opportunities include, but are not limited to, bilateral USG assistance in ASEAN Member States, complementary USG regional programs, other donor assistance in ASEAN and Member States, multilateral development banks, and other international organizations. Identifiable collaboration/cross-sectoral opportunities are regarded as enhancements and highly encouraged to bolster the Activity and Project goals. The Contractor must maintain an element of flexibility to respond to opportunities that may become available in cooperation with other stakeholders or the needs of ASEAN, with guidance and direction from the Contracting Officer’s Representative (COR).

C.4.2 Activity Objectives

The Contractor must achieve the following objectives of ACTI, broken down by work-streams:

ASW Project for Logistics and Uninterrupted Supply-chains (ASW PLUS): Strengthened regional integration utilizing an operational ASEAN Single Window architecture, improved enabling environment for trade in the ASEAN region, greater ASEAN member country capacity to implement Single Window systems, continuation of trade facilitation reforms and standards harmonization in priority industry sectors in collaboration with the private sector, and implementation of ASEAN-U.S. TIFA commitments (Corresponding to the Logical Framework, Trade and Investment, Outputs 1-3 and 5, and Work-Stream 1);

Helping ASEAN Nurture SME Development (HAND): Improved capacity of ASEAN entrepreneurs, especially women, in creating or operating Small- and Medium-sized Enterprises (SMEs), particularly in the lesser developed Member States – Cambodia, Laos, Burma (Myanmar), and Vietnam (CLMV), to bridge the development gap, thus allowing for effective and leveled participation in the ASEAN Economic Community (Corresponding to the Logical Framework, Trade and Investment, Output 4, and Work-Stream 2);

ASEAN Modernized Power (AMP): Increased capacity of AMS to facilitate delivery of clean energy and energy efficient technologies to their citizens (Corresponding to the Logical Framework, Trade and Investment, Output 6, and Work-Stream 3); and

ICT for Development and Enhancement of ASEAN (IDEA): Help bridge the digital divide and strengthen ASEAN’s capacity to implement its ICT Master Plan (Corresponding to the Logical Framework, Trade and Investment, Output 7, and Work-Stream 4).

Innovative and inclusive approaches to engaging a broad range of stakeholders to deliver technical assistance and to build local capacity should be employed, e.g. partnerships with existing institutions, Grants Under Contract (GUCs), etc.

C.4.3 Work-Stream Requirements

Given the changing and evolving nature of institutional capacity building and technical support, the Contractor must embrace the principles of adaptive management and work to update programmatic management tools, such as the fully integrated work plans and Performance Management and Evaluation Plan (PMEP), at strategic intervals. The Contractor must closely coordinate all four work-streams across this entire Activity. Further, the Contractor must apply scientific-and evidence-based principles and practices, and proven cost-effective technical and management approaches to achieving the target activity outcomes and purposes.

The Contractor must approach work-stream work plans with an innovative and inclusive engagement of a broad range of stakeholders to deliver technical assistance and to build local capacity, e.g. partnerships with existing institutions based in the ASEAN region, Grants under Contract (GUCs), etc.

For the work-streams below, the Contractor must develop a consolidated annual work plan. Each of the activities in the consolidated work plan will require approval by the relevant ASEAN sectoral body through a Concept Note to be circulated to the members of the sectoral body by the relevant ASEAN Desk Officer or by presentation at a meeting of the sectoral body. Once the concept is endorsed by the sectoral body, the Contractor must work with the relevant ASEAN Desk Officer to develop a detailed terms of reference or other agreed documentation, including the expected need for short-term expertise (if any). The draft terms of reference may also be reviewed by the U.S. Mission to ASEAN and other relevant USG agencies as appropriate before final submission to the COR for approval. The final submission to COR will include the budget estimate for the activity and the specific expertise/LOE to be utilized. Full annual work plans will also be subject to endorsement by the ASEAN Committee of Permanent Representatives’ Project Steering Committee.

For potential national-level assistance, all foreign-assistance eligible ASEAN Member States may be included. It is likely that focus countries would include the less developed ASEAN Member States of Cambodia, Laos, Burma (Myanmar) and Vietnam, but activities may also provide assistance in Indonesia, Malaysia, Philippines and Thailand if agreed between the country, ASEAN and the USG.

WORK-STREAM REQUIREMENT 1:

ASW PLUS (ASW Project for Logistics and Uninterrupted Supply-chains)

The Contractor must continue USG support in such a manner as to maintain momentum in the development of the ASEAN Single Window. In addition, the Contractor must more broadly seek to build greater connectivity in the region to foster enhanced trade facilitation. Further, the Contractor must develop and implement work plans for trade facilitation interventions taking into consideration ASEAN goals and objectives, as noted in agreements below, and in consultation with ASEAN (keeping in mind ASEAN includes the Committee of Permanent Representatives, the Secretariat, ASEAN Member States, sectoral bodies, etc).

ASEAN Single Window

As defined by ASEAN, in the Agreement to Establish and Implement the ASEAN Single Window, Kuala Lumpur, on 9 December 2005, an ASEAN Single Window and National Single Window are:

“1. The ASEAN Single Window is the environment where National Single Windows of Member Countries operate and integrate.

2. The National Single Window is a system which enables:

a) a single submission of data and information;

b) a single and synchronous processing of data and information; and

c) a single decision-making for customs release and clearance. A single decision-making shall be uniformly interpreted as a single point of decision for the release of cargoes by the Customs on the basis of decisions, if required, taken by line ministries and agencies and communicated in a timely manner to the Customs.”12

Under this work-stream, the Contractor must focus on the goal, as stressed by ASEAN, of supporting the development of a unified regional trading block built upon the foundation of an ASW architecture that links ASEAN customs ministries via an electronic network that facilitates one-stop paperless submission of cargo clearance documentation, as illustrated in the graphic below.

Figure 2: ASEAN Single Window Conceptual Model

Source: USAID ASW Project 2008-2013.

A Single Window has multiple benefits for both governments and industry. National governments benefit because Single Windows facilitate trade, provide more efficient and accurate fiscal revenue yields, enhance supply chain security, reduce opportunities for corruption in customs agencies, and improve customs compliance on the part of industry and traders.

The private sector benefits because Single Windows reduce the transaction costs and time for regulatory compliance, reduces rent seeking opportunities by customs agents, ensures faster clearance and release of goods, and a predictable, accurate set of regulations that are administered equitably.

12 See Agreement to Establish an ASEAN Single Window (2005): http://www.asean.org/communities/asean-economic-community/item/agreement-to-establish-and-implement-the-asean-single-window-kuala-lumpur-9-december-2005-2 and ASEAN Single Window Protocol (2006):

http://www.jus.uio.no/english/services/library/treaties/09/9-04/asean_protocol_single_window.xml

Figure 3: Time for Export/Import

ASEAN MEMBER

STATES (ex Burma (Myanmar))

Time for ExportTime for Import

(in days) (in days)

2006 2009 2012 2006 2009 2012

Brunei na 28 19 na 19 15 Cambodia 43 22 22 55 30 26 Indonesia 25 21 17 30 27 27 Laos 66 50 44 78 50 46 Malaysia 18 18 17 14 14 14 Philippines 17 16 15 18 16 14 Singapore 5 5 5 3 3 4 Thailand 24 14 14 22 13 13 Vietnam 24 22 22 23 21 21

Average – ASEAN 27 22 20 30 22 21 Average – OECD 12 11 10 12 11 11

Source: World Bank and USAID ASW Project 2008-2013.

Figure 4: Time to Import Breakdown

Source: World Bank and USAID ASW Project 2008-2013.

As noted above, the ASEAN average time in days to import/export is nearly double the OECD average. More than half of that time is a result of documentation processing. By moving countries and the region to a Single Window system, the documentation time can be significantly reduced, with the added benefit of removing many opportunities in the system for corruption, improving governance, and building transparency for stakeholders in the system.

The development of the ASW meets not only ASEAN’s own goals for regional economic integration, but also is a key priority area for the USG in the ASEAN region. Development of the ASW is a core part of the ASEAN-U.S. Enhanced Partnership Plan of Action and is one of the initial three focus areas of work under the Trade and Investment Framework Agreement (TIFA). The U.S.-ASEAN Business Council, U.S. Chamber, ASEAN Business Club, and chambers of commerce throughout the region view the Single Window system as a critical element of AEC.

Broader Trade Facilitation

In addition to the ASW, the Contractor must also focus more broadly on trade facilitation and connectivity issues, such as the TIFA implementation and other USTR or State Department initiatives to expand economic engagement with ASEAN.

Investment, trade facilitation, and e-commerce are priority areas of the initiative that support technical assistance in this work-stream also cut across the entire ACTI activity. This work-stream will expand standards development and practices including technical barriers to trade and good regulatory practices. The Contractor must work with the COR to coordinate with USAID, the USTR, the Department of Commerce, and other USG agencies as necessary, to deliver technical assistance with an eye towards helping advance ASEAN integration and broaden and deepen their engagement with the United States, including areas of common interest such as the Trans-Pacific Partnership (TPP)13.

The Contractor must implement the work-stream to provide technical assistance to support ASEAN’s trade facilitation goals as articulated in the Roadmap for an ASEAN Community 2009-201514 in areas including:

Removal of tariffs and non-tariff barriers to support the ASEAN Free Trade Area (AFTA) and continuously enhancing the Common Effective Preferential Tariffs (CEPT);

Supporting Rules of Origin (ROO) which are responsive to the dynamic changes in global production processes so as to: facilitate trade and investment among ASEAN Member Countries; promote a regional production network; encourage development of SMEs and the narrowing of development gaps; and promote the increased usage of the AFTA CEPT Scheme15;

Harmonized and standardized trade and customs, processes, procedures and related information flows to reduce transaction costs in ASEAN which will enhance export competitiveness and facilitate the integration of ASEAN into a single market for goods, services and investments and a single production base;

Increased customs integration as articulated in the Strategic Plan of Customs Development 2011-201516 to integrate customs structures, tariffs, human resource development, international organization partnership, risk management techniques, and audit-based control for trade facilitation; and

Building systems of standards, quality assurance, accreditation, and measurement crucial to promoting greater efficiency and enhancing cost effectiveness of production of intra-regional imports/exports as noted in the ASEAN Policy Guideline on Standards and Conformance17.

Work-Stream Requirement 1 Operational Overview

The Contractor must provide 40-50 percent of the overall Activity Level of Effort to Work-Stream Requirement 1. The Contractor must provide targeted technical assistance and training at both the regional and national level in select Member States as identified in C.2 above, at the request of the AMS through the Secretariat, and in cooperation, coordination, and collaboration with relevant USG agencies engaging with ASEAN, and in close coordination with bilateral U.S. embassies and USAID Missions. The Contractor’s implementation of the work-stream will be under the direction of USAID/RDMA through Contractor submission and COR approval of annual work plans. The Contractor must also coordinate with ASEAN’s Secretariat, relevant sectoral bodies, steering committees, and working groups, and the U.S.

Mission to ASEAN. The Contractor must seek opportunities for…