Amendment 3 - Attachment A.docx

SOL-492-11-000011

Investment Enabling Environment (INVEST) Project August 24, 2011

ATTACHMENT A

Amendment to the Solicitation

1. COVER LETTER

a. First page of the COVER LETTER, change the closing date and time to August 31, 2011 at 12:00 noon.

b. First page, paragraph five (5), amend the paragraph by including a definition of a Philippine organization. The paragraph now reads:

“Proposals will be accepted from Philippine organizations. A Philippine organization is defined as an entity that, at the time of award and performance of contracts:

(1) are organized and authorized to transact its operations under the laws of the Philippines;

(2) has its principal place of business in the Philippines;

(3) is not less than 51% legally and beneficially owned by one or more resident citizens of the Philippines, and;

(4) is not controlled by a foreign entity or by one or more individuals who are not resident citizens of the Philippines.

“Private, profit and non-profit organizations, non-governmental organizations (NGOs) including universities, research organizations, professional associations, relevant special interest associations, faith-based and community organizations are eligible for award. In support of USAID’s interest in expanding the number and sustainability of development partners, USAID encourages proposals from potential new local partners.”

c. Page two (2) of the COVER LETTER, paragraph 8, amend the paragraph by changing the closing time and date to 12 noon, Manila local time on August 31, 2011 and adding two email addresses for electronic submissions. The paragraph now reads:

“The required closing date and time for receipt of proposals is USAID/Philippines, 12 noon, Manila local time on August 31, 2011. Point of required receipt is USAID/Philippines, Manila, Republic of the Philippines and not USAID offices in Washington, D.C. or any other location. Electronic submissions are to be sent to both of the following email addresses: aidmnlorp@usaid.gov and orpmailbox@usaid.gov. Offerors should take account of the expected delivery time required by the proposal transmission and are responsible to ensure that proposals are received at USAID by the due date and time specified above.”

2. SECTION B

a. In B.3, ESTIMATED COST, FIXED FEE AND OBLIGATED AMOUNT, in letter (a), revise the paragraph to separate the estimated cost of the two years from the option year. The paragraph now reads:

“(a) For the two year contract period, the estimated cost for the performance of the work required hereunder, exclusive of fee, is TBD. The fixed fee, if any, for the contract period is TBD. The total estimated cost plus fixed fee is TBD.

For the option year, the estimated cost for the performance of the work required, exclusive of fee, is TBD. The fixed fee, if any, for the option period is TBD. The total estimated cost plus fixed fee for the option period is TBD.”

b. In B.5, BUDGET, in letter (a), delete the table and replace with the below:

3. SECTION C

a. Amend Sections C.3, C.4 and Section C.5, DETAILED WORK REQUIREMENTS, so that they now read:

“C.3 SCOPE OF WORK

INVEST is designed as a two years plus one option year bridge project pending the definition of Mission program activities of its new country strategy for FY2012-2016 within the PFG guidelines.

Flexibility and Creativity: USAID recognizes the need for flexibility and creativity in the Contractor’s approach in order to achieve meaningful and sustainable results. Use of innovation is highly encouraged.

Linkages and Synergies: INVEST will retain positive elements of both the LINC-EG and complement the work undertaken through the Economic Growth Hubs and TAG projects, while providing greater emphasis on synergies between national and local governments, on the one hand, and foreign investment growth with increased number of business start-ups, on the other. INVEST will promote the active participation and collaboration of the private sector and local business associations in LG initiatives.

Strategic Approach: INVEST will support initiatives aimed at reducing the cost of doing business in the Philippines, so as to improve the overall business and investment climate. Activities will be carried out through a demand-driven process, building on the results-oriented agenda to maximize the benefits of economic growth. The broad range of potential interventions – in contrast to the limited resources available – requires a strategic framework that identifies priority areas necessary to achieve objectives in the most cost-efficient manner.

Cross-cutting Issues: USAID recognizes that meaningful success towards the objectives of INVEST cannot occur in the absence of progress in other strategic areas of governance and rule of law. The critical importance of the interplay between these two areas warrants particularly strong teamwork and linkages with other activities in the USAID portfolio, especially in the areas of:

· transparency,

· public outreach,

· performance monitoring and evaluation, and

· private sector engagement in the reform process.

Donor Coordination: The contractor shall actively coordinate and, where appropriate, collaborate with other donors so that USAID resources can be efficiently used to leverage and achieve its objectives. INVEST will support agenda-setting and initiatives taken under the Philippine Development Forum (PDF) Local Investment Reform Sub-Working Group (LIR-SWG). INVEST should take account of lessons learned from previous USAID-funded projects and other donors. Coordination may entail participation in working group meetings as well as formal and informal information exchange with other bilateral and multilateral organizations. The project’s relatively short time-horizon heightens the importance of leveraging donor coordination to maximize results.

USAID Gender Requirements: USAID has a special interest in the participation of women and is working to improve women’s equality and empowerment in developing countries. The Agency is increasingly integrating gender into its program planning process. A gender assessment is mandatory for the design of strategic plans and development objectives. USAID completed a gender analysis in 2005. The contractor shall update this gender analysis as an initial task under this project. The contractor shall develop a strategy for building gender into the work plan in accordance with USAID requirements. Progress of all related activities will be measured and verified using indicators that are disaggregated by gender and will be part of the project performance plan (PMP). A Gender Action Plan will be prepared to ensure gender integration.

Monitoring and Evaluation. The contractor will be responsible for monitoring, evaluating, and reporting performance against agreed upon framework of goals, objectives, and results with indicators in line with the USAID Evaluation Policy. An M&E Plan that contains the key evaluation questions will be prepared by the Contractor at project start, to be approved by USAID. A result framework with indicators and life of project targets and baselines will also be developed as the basis for determining results. The objective indicators presented in this document are presented as illustrative and are not to be viewed as fixed.

C4. EXPECTED RESULTS

INVEST advances two broad objectives. For the first two years of the project, USAID expects project activities will contribute to:

· eliminating, minimizing or lowering the transaction costs and reducing the cost of doing business involving both national and local level regulations and processes; and

· increasing the flow of private investment and number of business start-ups in the Philippines.

Higher level results expected at project completion include:

· domestic and foreign investment increased (as a % share of GDP);

· foreign direct investment flows into the Philippines increased;

Additional intermediate results fall under the following technical assistance areas:

· new business registrations increased; and

· employment generation in the formal sector increased.

The project is also expected to meet secondary objectives that will contribute to the accomplishment and sustainability of the main objectives. These include:

· synergies improved between national and local governments; between national offices and provincial/district offices of the national government; and between government and the local chambers of commerce;

· government processes and regulations automated and standardized;

· local government revenue increased and local government and provincial/district offices services improved; and

· public-private partnerships, including GDA initiatives promoted.

Standard indicators under this project and end of project results include:

· business enabling environment improve – number of changes made to business enabling environment, e.g., reduced number of steps, time and cost to start, register and renew a business at local and national levels;

· number of municipalities receiving USG assistance with regulatory/administrative simplification; and

· number of USG supported training events on topics related to investment capacity building and improving trade.

For the Option Year, USAID envisions scaling up activities in other business-related regulations outside of business registration and renewals that will include business inspection processes and standards; elimination of pass-thru fees; obtaining construction permits, environmental clearances, and land titles; and other special permits required for priority growth sectors including tourism, agribusiness and mining.

C5. DETAILED WORK REQUIREMENTS

The INVEST Project will provide funding over two years plus one year option to address the constraints that impede the overall business climate of the Philippines and, consequently, improve levels of investments in the country. Activities will be developed to make regulations less cumbersome for business, lowering cost of compliance and limiting the scope for bureaucratic discretion and opportunities for corruption. For the first two years, the Project will focus its technical assistance on streamlining government regulations faced by the private sector and foreign investors. Attention will also be given to support services that will make the environment more conducive to private sector activity. Project activities will focus on three to five cities outside of Metro Manila to be determined by USAID. These 3-5 cities are all first class cities, located in highly urbanized areas with large populations. Two may be located in Mindanao, two in the Visayas, and one in Luzon. Activities will be scaled up in the option year.

The project proposes two key reform-oriented components:

C5a. Streamlining Business Registration Process and Lowering Business Transaction Costs of Compliance with Rules and Regulations

This component will provide technical assistance and limited commodities leading to a registration system that is centralized, streamlined, more transparent and less cumbersome for new businesses. The overall objective is to reduce the steps, time and costs (both official and non-official) that business operators in the targeted cities spend interfacing with national government agencies (NGAs) and local governments (LGs) to obtain business permits or renew them. Illustrative deliverables in this area can include the following:

· Deliverable # 1: Expand Business One-Stop-Shops in selected cities outside the National Capital Region. Set up one-stop-shops for local registration, permits, and licensing for businesses to selected cities, as determined by USAID. Establish an independent third-party mechanism for monitoring and evaluation.

· Deliverable # 2: Connect the Philippine Business Registry (PBR) to all government agencies requiring business information and link more LGs to the system. Support IT solutions that aim to provide a seamless environment for business registration across and systems integration across the relevant application systems of all national level agencies with business registration-related transactions. Set up an effective a web-based registry system that is connected to the existing systems and databases of the different agencies requiring business information.

· Deliverable # 3: Improve system of joint business inspections aimed at lowering overall regulatory burden on business. Standardize and document rules and procedures for business inspections to become more effective and efficient and train members of local joint inspection coordination teams. Develop a toolkit for local business inspections. Develop a system of risk analysis and selection for business inspections. Facilitate movement towards unified and scheduled inspections.

· Deliverable # 4: Implementation of the Anti-Red Tape Law. Foster local adoption of the Citizen Charters. Strengthen the monitoring and oversight role of chambers of commerce and civil society organizations of the LGU charters. Assist the Civil Service Commission Compliance to come up with the Report Card Survey as required by the law.

Illustrative intermediate results for which project-level performance management plans will be developed include:

· 5-10% increase in new businesses registered

· Three to five cities with One-Stop-Shops and connected to PBR

· Decrease in steps, time, and cost required to start, register and renew a business

· Improved service orientation and client satisfaction

· Improved transparency and publication of business procedures and requirements

· Increased capacity of local business inspectors.

C5b. Improving Investment Planning and Promotion in Targeted Cities

This component will provide technical assistance that will identify and facilitate new investments and business activities in targeted areas. This is to assist local governments in the preparation, coordination and execution of local economic and investment promotion policies, projects and activities that will provide an enabling environment for investment. The overall objective of this component is to facilitate the entry of new business ventures that will generate employment and increase revenues for local governments. Assistance activities can support the provision of expert knowledge, constraints diagnostics, and training on various investment-related topics and areas, including agribusiness, tourism, IT-enabled services, and manufacturing. Activities can support the provision of market information, value-chain analysis and feasibility studies, credit enhancement, and other business-support services. The project can also provide assistance in the preparation and implementation of the Local Development Investment Plan (LDIP) and the Annual Investment Plan (AIP) of the local government. Illustrative deliverables in this component can include the following:

· Deliverable # 1: Support and expand a performance-based incentive program for targeted cities. Leverage USG assistance with DILG and LG resources for targeted cities under the government’s Performance Challenge Fund. Provide counterpart funds in support of LG investments in the areas of enhancing economic services and promoting good governance. Leverage private sector funds with LG resources in the context of private-public partnerships. Provide monitoring mechanism to ensure fund support relate to expected outcomes.

· Deliverable # 2: Build the capacity of local investment officers. Conduct specialized training for designated local investment officers in targeted cities. Provide technical assistance to enable local investment officers to: (a) develop and implement investment promotion and business development plans that market LGs as primary investment destinations; (b) enhance the participation of the private sector in investment promotion activities, and; (c) improve coordination between DTI and DILG national and regional officers.

· Deliverable # 3: Improve the operations of the National Economic Research and Business Assistance Centers (NERBACs) and their its coordination with LGs. Strengthen the capacity of the NERBACs and improve its services delivery to SMEs, including market access information, product development, business support services, and regulatory and standards compliance. Establish a local economic database that provides basic market information to prospective investors. Capacitate a national coordinating body, strengthen the network of NERBACs across the country.

Illustrative intermediate results for which project-level performance management plans will be developed:

· 5-10% increase in new investment generated in targeted cities

· Three to five cities awarded under the Performance Fund

· Number of local investment officers trained and capacitated

· Improved service delivery to SMEs

· Improved capacity of local investment officers

· Establishment of national coordinating body for NERBACs and network of DILG regional investment officers.

Offerors will provide a detailed plan outlining the approach and interventions to accomplish these deliverables and project objectives and outcomes. Such as the following:

· Special studies and technical assistance for assessments and diagnostic and investment-related policy studies to determine needs, areas of intervention and requirements as well as establish baseline information for activities under each component;

· Procurement of organizations or individuals needed to carry out specialized technical tasks pertinent to the achievement of the program objectives, including support for policy analyses, IT solutions and systems integration of business application systems, public-private policy dialogue, and TA by local think tanks, university policy analysis units, NGOs, and business associations;

· Management of an investment development fund to facilitate the implementation of selected activities critical in the achievement of task order objectives.

· Organization and implementation of capacity-building seminars, workshops, and short-term training;

· Organization and implementation of study tours to observe relevant cases within or outside of the Philippines;

· Commodity procurement (other than for the contractor);

b. In Section C.6, PERSONNEL REQUIREMENTS,

1) First paragraph, delete the third sentence and replace with: “The core team may be composed of long term Philippine and/or US professionals with strong local governance and enterprise development experience and supplemented by local and/or international short-term consultants.”

2) Second paragraph, delete the first sentence and replace with: “The project team may be composed of long and short-term professionals and support staff.”

Section C.6 now reads:

“The contractor has the ultimate responsibility for managing the contract, achieving the performance results in the activity areas, and for determining the appropriate staffing pattern in support of its technical approach. Offerors must assemble a project team with the required knowledge and experience in the components mentioned above. The core team may be composed of long term Philippine and/or US professionals with strong local governance and enterprise development experience and supplemented by local and/or international short-term consultants.

The project team may be composed of long and short-term professionals and support staff. The long-term staff should include a Chief of Party, a Deputy Chief-of-Party, and a Monitoring and Evaluations Specialist. The contractor can propose other long-term local technical experts as necessary. Short-term expatriate technical assistance may be proposed as appropriate.”

4. SECTION F

a. In F.3, PLACE OF PERFORMANCE, clarify the second sentence so that it now reads: “The contractor is expected to establish a central project office in Metro Manila.

b. In F.5, delete FAR 52.217-8, OPTION TO EXTEND SERVICES (NOV 1999) and replace with:

“F.5 FAR 52.217-9, OPTION TO EXTEND THE TERM OF THE CONTRACT (MAR 2000)

(a) The Government may extend the term of this contract by written notice to the Contractor within two years from contract award; provided that the Government gives the Contractor a preliminary written notice of its intent to extend at least sixty (60) days before the contract expires. The preliminary notice does not commit the Government to an extension.

(b) If the government exercises this option, the extended contract shall be considered to include this option clause.

(c) The total duration of this contract, including the exercise of any options under this clause, shall not exceed three (3) years.”

c. In F.7, REPORTS,

1) In F.7a, START-UP AND PRELIMINARY WORK PLAN, change the fourth bullet’s “performance monitoring plan” to “monitoring and evaluation plan”. The bullet now reads: “Developing a monitoring and evaluation plan;”.

2) In F.7b, WORK PLAN, in the first paragraph, add the following as letter (g): “(g) Gender Action Plan alongside the Work Plan that identifies entry points for the integration of gender considerations in project planning, implementation, monitoring and evaluation.”

3) In F.7c, delete in its entirety and replace with:

“F.7c MONITORING AND EVALUATION PLAN

Within ninety (90) days from project start, the contractor shall submit a Monitoring and Evaluation Plan that contains the project’s results framework, performance monitoring plans (PMP) with indicators, baselines and life-of-project targets, and key evaluation questions. The M&E Plan will be developed and submitted for COTR approval with the first annual work plan. The contractor and the COTR will agree upon the final choice of performance indicators useful for timely management decisions. The contractor will collect data for performance indicators, monitor progress, and report status at least annually to the COTR. PMP data must meet reasonable quality criteria of validity, reliability, timeliness, precision and integrity, and be disaggregated by gender as appropriate and feasible. The contractor shall report on the PMP on a quarterly basis as part of the periodic progress reports.”

5. SECTION H

a. In H.2, AUTHORIZED GEOGRAPHIC CODE, clarify the sentence so that it now reads: “The authorized geographic code for procurement of goods and services under this award is “000”, the United States.”

b. In H.7, ADDITIONAL REQUIREMENTS FOR PERSONNEL COMPENSATION,

1) In letter (d), Initial Salaries, insert the word “base” to the first and second sentences so that they now read: “ (d) Initial Salaries. The initial starting base salaries of all cooperating country (CCN), US national, and third country national (TCN) consultants or employees whose salaries are charged as a direct cost to this contract must be approved, in advance and in writing, by the contracting officer. Any initial starting salaries included in the final proposal revision and accepted during negotiations, are deemed approved upon contract execution.”

2) In letter (f), Replacement Staff, clarify the first paragraph by adding the word “base” and replacing “BPI” with “INVEST”. The first paragraph now reads: “With the exception of key personnel, initial base salaries of new staff replacing those previously approved in the contractor’s final proposal revision do not require prior approval by the contracting officer, provided that the following conditions are met:

· The position has been authorized in the contract; and

· The initial base salary shall not exceed either the individual’s recent long-term salary by 5%, as evidenced in USAID Form “Contractor Employee Biographical Data Sheet” (AID 1420-17), or the approved salary for the particular position in the final proposal revision, whichever is less.

· The contractor has obtained COTR approval of the individual’s technical appropriateness to work on INVEST activities.”

3) In letter (h), Annual Salary Increases, revise the two paragraphs so that they now read:

“CCN and TCN Staff: One annual salary increase of not more than 5% (includes promotional increase) may be granted after the employee’s completion of each twelve months of satisfactory services under the contract. Annual salary increases of any kind exceeding these limitation, or exceeding the maximum salary of the highest senior foreign service national (FSN) position authorized under the U.S. Embassy Compensation Plan require the advance written approval of the contracting officer.

“US National Contractor Employees: For contractor employees who are US nationals, annual salary increases in accordance with the contractor’s established policies, procedures and practices are allowable but must not exceed 5% and will require advance written approval of the contracting officer.”

c. In H.17, delete AIDAR 752.245-71 TITLE TO AND CARE OF PROPERTY (APR 1984) in its entirety and replace with FAR 52.245-1 GOVERNMENT PROPERTY (AUG 2010). Section H.17 now reads:

“H.17 GOVERNMENT PROPERTY (AUG 2010)

(a) Definitions. As used in this clause—

Acquisition cost means the cost to acquire a tangible capital asset including the purchase price of the asset and costs necessary to prepare the asset for use. Costs necessary to prepare the asset for use include the cost of placing the asset in location and bringing the asset to a condition necessary for normal or expected use.

Cannibalize means to remove parts from Government property for use or for installation on other Government property.

Contractor-acquired property means property acquired, fabricated, or otherwise provided by the Contractor for performing a contract, and to which the Government has title.

Contractor’s managerial personnel means the Contractor’s directors, officers, managers, superintendents, or equivalent representatives who have supervision or direction of—

Demilitarization means rendering a product unusable for, and not restorable to, the purpose for which it was designed or is customarily used.

Discrepancies incident to shipment means any differences (e.g., count or condition) between the items documented to have been shipped and items actually received.

Equipment means a tangible item that is functionally complete for its intended purpose, durable, nonexpendable, and needed for the performance of a contract. Equipment is not intended for sale, and does not ordinarily lose its identity or become a component part of another article when put into use. Equipment does not include material, real property, special test equipment or special tooling.

Government-furnished property means property in the possession of, or directly acquired by, the Government and subsequently furnished to the Contractor for performance of a contract. Government-furnished property includes, but is not limited to, spares and property furnished for repair, maintenance, overhaul, or modification. Government-furnished property also includes contractor-acquired property if the contractor-acquired property is a deliverable under a cost contract when accepted by the Government for continued use under the contract.

Government property means all property owned or leased by the Government. Government property includes both Government-furnished and Contractor-acquired property. Government property includes material, equipment, special tooling, special test equipment, and real property. Government property does not include intellectual property and software.

Material means property that may be consumed or expended during the performance of a contract, component parts of a higher assembly, or items that lose their individual identity through incorporation into an end item. Material does not include equipment, special tooling, special test equipment or real property.

Nonseverable means property that cannot be removed after construction or installation without substantial loss of value or damage to the installed property or to the premises where installed.

Precious metals means silver, gold, platinum, palladium, iridium, osmium, rhodium, and ruthenium.

Property means all tangible property, both real and personal.

Property Administrator means an authorized representative of the contracting Officer appointed in accordance with agency procedures, responsible for administering the contract requirements and obligations relating to government property in the possession of a Contractor.

Property records means the records created and maintained by the contractor in support of its stewardship responsibilities for the management of Government property.

Provide means to furnish, as in Government-furnished property, or to acquire, as in contractor-acquired property.

Real property. See Federal Management Regulation 102-71.20 (41 CFR 102-71.20).

Sensitive property means property potentially dangerous to the public safety or security if stolen, lost, or misplaced, or that shall be subject to exceptional physical security, protection, control, and accountability. Examples include weapons, ammunition, explosives, controlled substances, radioactive materials, hazardous materials or wastes, or precious metals.

Surplus property means excess personal property not required by any Federal agency as determined by the Administrator of the General Services Administration (GSA).

(b) Property management.

(c) Use of Government property.

(d) Government-furnished property.

(1) The government shall deliver to the Contractor the Government-furnished property described in this contract. The Government shall furnish related data and information needed for the intended use of the property. The warranties of suitability of use and timely delivery of government-furnished property do not apply to property acquired or fabricated by the Contractor as contractor-acquired property and subsequently transferred to another contract with this Contractor.

(2) The delivery and/or performance dates specified in this contract are based upon the expectation that the Government-furnished property will be suitable for contract performance and will be delivered to the contractor by the dates stated in the contract.

(viii)Utilizing Government property.