RFP- INVEST.docx

Subject: Request for Proposals No. SOL-492-11-000011 – Investment Enabling Environment (INVEST) Project

To All Prospective Offerors:

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

This procurement is being conducted through full and open competition among Philippine organizations only, for which the procedures for "contracting by negotiation, trade-off process” method of procurement, as described in Part 15 of the Federal Acquisition Regulation (FAR), will apply. Offerors who submit proposals in response to this RFP may be required to give an oral presentation.

Proposals will be accepted from Philippine private, for-profit and non-profit organizations, non-governmental organizations (NGOs) including universities, research organizations, professional associations, and relevant special interest associations. Faith-based and community organizations are also 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.

USAID plans to award a cost-plus-fixed-fee completion type contract. The maximum amount of the contract (costs and fee) is $3.5 million, covering an estimated period of performance of two years with a one year option. However, offerors should not necessarily strive to equal this amount. Cost-effective approaches to achieving the results are encouraged, and lower-cost offers will be rewarded under Section M of this solicitation. Offerors must propose costs that they believe are realistic and reasonable for the work. Cost proposals will be evaluated as part of the best value procedure in determining the contract award.

Receipt of this solicitation through the internet must be confirmed by written notification to Procurement Secretary Irene Narag at email address aidmnlorp@usaid.gov. It is the responsibility of the recipient of this solicitation document to ensure that it has been received in its entirety, including subsequent solicitation amendments, if any. USAID bears no responsibility for data errors resulting from transmission or conversion processes.

Issuance of this solicitation and the submittal of a proposal do not constitute a commitment on the part of the U.S. Government nor USAID to make an award; neither does it constitute an obligation for any costs incurred in the preparation and submission of a proposal. Award will be subject to funds availability following the proper completion of required USAID internal processes.

Further, the U.S. Government reserves the right to reject any or all proposals received. To this end, this RFP is being issued and consists of this cover letter and the text of the attached request for proposals (RFP). All offerors are cautioned to carefully review this cover letter and the contents of the RFP.

The details associated with the submission requirements for offerors’ proposals are outlined in Section L of this solicitation. Proposals must be signed by an official who is authorized to bind the organization and are to be submitted to USAID no later than the closing date stated above. Late proposals will be handled in accordance with FAR 15.208. Facsimile submissions are not authorized and will not be accepted as valid.

The preferred method of proposal submission will be electronic. See Section L. of the solicitation for instructions.

Offerors are instructed to 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.

An interested vendors list is not included in this solicitation. Offerors can register and use the interested vendors list found at the Federal Business Opportunities (FBO.gov) webpage created for this solicitation so that interested firms and individuals can contact one another for consideration of teaming arrangements and/or small business subcontracting opportunities arising from this solicitation.

You are strongly encouraged to submit any comments or questions concerning this RFP by no later than 4:00pm, August 3, 2011 Manila time. These should be directed by email to Ma. Belinda de la Torre, Senior Acquisition & Assistance Specialist at email address mdela@usaid.gov with copy to Irene Narag at aidmnlorp@usaid.gov.

The required closing date and time for receipt of proposals is USAID/Philippines 12midnight, Manila local time on August 28, 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. 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.

Oral explanations or instructions given before the award of the contract will not be binding. Furthermore, the U.S. Government reserves the right to reject any and all offers, if such action is considered to be in the best interest of the U.S. Government. Award of a contract under this RFP is subject to availability of funds and other internal USAID approvals.

Thank you for your interest in working with USAID/Philippines.

Sincerely, /s/

Michael P. Rossman Regional Contracting Officer

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 (RFP)

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

X X X

X X

X

X X

X

X X

X X

I

CONTRACT CLAUSES

B

SUPPLIES OR SERVICES AND PRICES/COSTS

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

C

DESCRIPTION/SPECS./WORK STATEMENT

J

LIST OF ATTACHMENTS

D

PACKAGING AND MARKING

PART IV - REPRESENTATIONS AND INSTRUCTIONS

E

INSPECTION AND ACCEPTANCE

F

DELIVERIES OR PERFORMANCE

G

CONTRACT ADMINISTRATION DATA

L

INSTR., CONDS., AND NOTICES TO OFFERORS

H

SPECIAL CONTRACT REQUIREMENTS

M

EVALUATION FACTORS FOR AWARD

K

REPRESENTATIONS, CERTIFICATIONS AND OTHER

STATEMENTS OF OFFERORS

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 _120_______ 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 OFFER

15A. 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)

25. PAYMENT WILL BE MADE BY

CODE

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) cb 1 100 SOL-492-11-000011 July 28, 2011 X Office of Regional Procurement USAID/Philippines 8/F PNB Financial Center, Macapagal Boulevard Pasay City, Philippines 1308

See Section L Item 7 12 midnight August 28, 2011 Michael Rossman 63 2 552-9921 mrossman@usaid.gov See Attached Table of Contents

Regional Financial Services Center USAID/Philippines 8/F PNB Financial Center, Macapagal Blvd.

Pasay City, Philippines 1308

TABLE OF CONTENTS

SF33 – SOLICITATION, OFFER AND AWARD…………………………………………….………………………………………………………………………………………………………………. 1

C.3 SCOPE OF WORK…………………………………………………………………………………………………………………………………………11

C.4 EXPECTED RESULTS………………………

PART I - THE SCHEDULE

SECTION B - SERVICES AND PRICE/COSTS

B.1 PURPOSE

The purpose of this contract is to provide technical assistance and services as described in detail in Section C, Statement of Work for the implementation of USAID/Philippines’ “Investment Enabling Environment (INVEST)” Project.

B.2 CONTRACT TYPE AND CONTRACT SERVICES

This is a cost-plus-fixed-fee (CPFF) completion-type contract. For the consideration set forth below, the Contractor shall achieve the performance objectives and deliverables or outputs described in Section in accordance with the performance standards specified herein.

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

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

(b) Within the estimated cost plus fixed fee (if any) specified in paragraph (a) above, the amount currently obligated and available for reimbursement of allowable costs incurred by the Contractor (and payment of fee, if any) for performance of the contract period hereunder is TBD. The Contractor shall not exceed the aforesaid obligated amount unless authorized by the Contracting Officer pursuant to the clause of this contract entitled “Limitation of Funds” (FAR 52.232-22). See Section I of this contract.

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

B.4 CONTRACT BUDGET AND CEILINGS

(a) The contract budget found in Section B.5, Budget, is based on the contractor’s original proposal and/or final proposal revision, which was accepted by USAID through award of this contract.

(b) Without the prior written approval of the contracting officer, the contractor may not exceed the total estimated cost set forth in the budget hereunder or the obligated amount, whichever is less.

B.5 BUDGET

(a) The following itemized budget sets forth the estimates for reimbursement of dollar costs for individual line items of cost, and the fixed fee (if any).

USAID/Philippines SOL-492-11-000011 Page 6 of 8 pages

I. Estimated Cost

1. Salaries and Wages

2. Fringe Benefits

3. Overhead

4. Allowances

5. Travel and Transportation

6. Equipment and Supplies

7. Subcontract(s)

8. Other Direct Costs

9. General and Administrative Costs

Subtotal Contract Estimated Cost

II. Fixed Fee

III. Total Estimated Contract Cost Plus Fixed Fee

Note 1- Individual subcontractors proposed as part of the offer should include the same cost element break-downs in their budget as applicable.

B.6 INDIRECT COSTS

The contract clause entitled “Allowable Cost and Payment (DEC 2002)”, FAR 52.216-7, specifies that the indirect cost rates shall be established for each of the Contractor’s accounting periods that apply to this contract. Pending establishment of revised provisional or final indirect cost rates, allowable indirect costs shall be reimbursed on the basis of the following negotiated provisional or predetermined rates and the appropriate bases:

Description Rate Base Type Period

1/ 1/ 1/

[To be determined]

B.7 ADVANCE UNDERSTANDING ON CEILING INDIRECT COST RATES AND FINAL REIMBURSEMENT FOR INDIRECT COSTS

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

[To be determined]

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

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

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

B.8 REIMBURSABLE COSTS

The US dollar costs allowable shall be limited to reasonable, allocable and necessary costs determined in accordance with FAR 31 (Contract Cost Principles), A-21 (Cost Principles for Educational Institutions), A-122 (Cost Principles for Non-Profit Organizations), FAR 52.216-7 (Allowable Cost and Payment), FAR

52.216-8 (Fixed Fee), if applicable, and AIDAR 752.7003 (Documentation for Payment), in order to be reimbursable under this contract.

[END OF SECTION B]

SECTION C – STATEMENT OF WORK

C.1 INTRODUCTION

The Investment Enabling Environment (INVEST) Project seeks to address the key constraints underlying the low level of private investment in the Philippines. Program activities aim to improve the investment and business climate by:

· 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.

These ambitions complement and support the economic reform agenda of the Government of the Philippines (GPH), which focuses on improving the business environment and generating productive employment. Project objectives are consistent with the new United States Government (USG) initiative entitled Partnerships for Growth (PFG), which focuses on addressing binding constraints to broad-based economic growth in priority countries like the Philippines.[footnoteRef:1] The PFG will seek to leverage USG resources (assistance and non-assistance) over the next five years. INVEST acts as a two-year bridge project pending the definition of program activities for USAID/Philippines (Mission) under the “Development Objectives” of its new country strategy for FY 2012-2016 within the PFG guidelines. [1: Specifically, the PFG focuses on the binding constraints to investment expansion and capital formation necessary to bring about sustained, broad-based, and inclusive growth for increased employment and higher incomes.]

The INVEST Project will promote its goals by building on existing Mission strategic objectives, as manifested in the Local Implementation of National Competitiveness for Economic Growth (LINC-EG) and the Economic Growth Hubs projects, which seek to promote local and national economic competitiveness to improve prospects for economic growth and fiscal sustainability. These existing programs support policy formulation and implementation related to business, investment, trade, and fiscal reforms, so long as these can be linked to improving the competitiveness of the Philippines in a measurable way either at a local or national level. One of their priority areas focuses on streamlining the Business Permit and License (BPL) process by reducing the time and cost required to start, operate, and renew a business.[footnoteRef:2] [2: Activities supported under this area would lead to simplified forms and procedures, decreases in the number of signatories, and decreased overall time required for processing or for final approval.]

As detailed in this document, INVEST’s clearly defined components will focus on achieving measurable results. However, it is also designed to have sufficient program flexibility to respond rapidly and effectively to windows of opportunity, such as new market or business opportunities, new economic reform opportunities or requirements, as well as unexpected domestic, regional or international economic and business developments. As such, the INVEST contractor must have a high level of managerial and technical competence in core program areas – while maintaining sufficient flexibility to respond to critical USAID, USG, GPH, and private sector program assistance needs on an on-time, demand-driven basis.

USAID encourages the contractor to take an innovative approach to implementation of the program activities, bringing to bear international best practices and integrating them with local context and priorities. The contractor is encouraged (i) to connect with leading innovators in the private sector and academia in the Philippines and beyond; (ii) to access the recently created Development Innovation Ventures Fund – where creative solutions can be funded, piloted, and brought to scale; and (iii) to seek appropriate opportunities to use the project as a catalyst to mobilize the resources of private corporations, foundations, universities, and other non-governmental organizations interested in working in the Philippines through the Global Development Alliance (GDA) Initiative.

C.2 BACKGROUND

One of the major constraints to economic growth in the Philippines is the country’s inability to generate significant levels of investment needed to provide productive employment opportunities to its growing labor force, raise incomes, and reduce poverty. The Philippines has consistently attracted far less investment, both foreign and domestic, than almost any other country in the Southeast Asian region. As a percentage of gross domestic product (GDP), total public and private sector investment has fallen from 25% in 1997 to 15% in 2009, compared to 25% for the rest of Southeast Asia. Higher and steady rate of investment inflow into the domestic economy is needed to sustain the country’s current pace of economic growth and propel it to a higher rate of growth.

Poor business climate conditions and declining competitiveness hamper the flow of investment to the country. The Philippines continues to lag behind its regional neighbors in international measures of business climate. The Philippines ranked 148th among 183 countries in the 2011 Doing Business Report – behind regional neighbors Thailand (19th) and Indonesia (121st).[footnoteRef:3] In the World Economic Forum’s 2011 Global Competitiveness Report, the Philippines ranked 85th out of 133 countries, behind Thailand (38th), Indonesia (44th) and Vietnam (59th). These different global competitiveness indices identify the key constrains to investment in the Philippines to be inadequate infrastructure, barriers to market entry, high energy costs, weak property rights, and high transaction costs. [3: World Bank, International Finance Corporation, 2010. ]

Cumbersome business procedures and inefficient regulations are some of the main reasons for lack of private sector investment in the Philippine economy. For instance, starting a business in the country is lengthy and cumbersome. It takes 15 steps, more than twice as many steps as Thailand’s, and as long as 38 days to register a business. It takes 8 steps and 33 days to register a property in the Philippines while businesses in Thailand can accomplish this in only two steps and two days. The Philippines ranked 124th in ease of paying taxes and 61st in the costs and procedures involved in importing and exporting, compared to 91st and 12th for Thailand, respectively. High transaction costs make the country less competitive and less attractive for investment than it otherwise might be.

According to the Doing Business in the Philippines (2011) report, starting a business in a city takes an average of 18 procedures and 33 days. There exist wide differences in business procedures across the country with no one standard in local requirements and procedures. While some cities have taken the initiative to significantly streamline their business regulations, there is still much room to eliminate unnecessary forms, permits and clearances as well as address other issues such as those surrounding the business inspection process. Further reform is also needed in integrating the local business permits with national procedures.

C2a. USAID Program Past and current USAID assistance has been directed at addressing constraints to trade and investment and promoting greater competition as part of its overall goal of “accelerating growth through improved competitiveness” in the Philippines. USAID has supported direct activities and indirect advocacy efforts to improve the governance of the investment climate at both the national and sub-national levels. USAID resources focused on improving the business environment, removing barriers to public and private investment, and reducing cost and policy constraints to trade.

The Accelerating Growth, Investment and Liberalization with Equity (AGILE)/ Economic Governance Technical Assistance (EGTA) Project (1998-2004) Project helped to liberalize and increase competition in telecommunications, air transport, banking, and distribution services. The Targeted Interventions in Economic Reform and Governance (TIERG) Program (2004-2008) that implemented the Economic Modernization through Efficient Reforms and Governance Enhancement (EMERGE), Economic Policy Reform and Advocacy (EPRA), and Partnership and Advocacy for Competitiveness and Trade (PACT) projects advanced economic reform in domestic and international trade, investment and private sector development, competitive structure; and sustainable fiscal management. The Policy Reform Project (2006-2008) helped address the lack of competition and poor infrastructure as in maritime and air transport as well as interventions on land titling and property rights.

The Transparent Accountable Governance (TAG) project promoted transparency and accountability and improve public service delivery at the local level particularly in conflict-affected areas. TAG extends technical assistance to local governments in participatory development, planning and budgeting, public service excellence, improvement real property tax administration, business permits registration process and management of economic enterprises and city services. Its primary aim is to promote transparency, accountability and good governance in local governments, particularly in the conflict-affected municipalities in Southern Mindanao. TAG 4 (2009-2012) is providing technical assistance to build local capacity and improve fiscal responsibility, service delivery improvements, and local governance in around 40 municipalities in Mindanao.

More recently, USAID has supported efforts to improve the business and investment climate under the Local Implementation of National Competitiveness for Economic Growth (LINC-EG) project (2008-2011). LINC-EG’s overall objective has been “to promote local and national economic competitiveness to improve prospects for economic growth and fiscal sustainability.” The LINC-EG project focused on building competitiveness by improving local and national government economic governance and revenue collection; the local field office effectiveness of national government agencies; and the operations, policy, and program implementation linkages between local government offices, local field offices of national government agencies, and national government agencies in such areas as tax administration, customs, land administration, and business permit and licensing.

The Economic Growth Hubs (2009-2012) project also provides assistance to improve competitiveness. The project is working to streamline the process of obtaining urban land titles so as to improve access to credit through the provision of bankable titles as collateral. It also focuses on promoting infrastructure development through transparent and competitive Public-Private Partnerships and a more transparent and accountable public budget process, particularly in Iloilo, Angeles City, and Davao.

C2b. Philippines’ Development Priorities The INVEST project is line with the Aquino administration’s economic reform agenda, which is focused on improving the business environment and generating productive employment. Over the past year, there has been notable progress in improving the investment climate and in improving Philippine competitiveness. Two of the major reform areas that President Aquino highlighted in his State of the Nation address in June 2010 were the need to streamline business procedures at the national and local levels “to make them predictable, reliable and efficient for those who want to invest”, and improving the overall business climate through reforms in governance. The new administration has signaled broad economic reforms that aim to lower the cost of doing business, level the playing the field, and improve the business climate for foreign investors.

Following the President’s call, the Department of the Interior and Local Government (DILG) and the Department of Trade and Industry (DTI) on 6 August 2010 jointly launched a project to streamline the processes of getting business permits and licenses from city and municipal governments. Dubbed as the Nationwide Streamlining of Business Permits and Licensing System (BPLS) Reform Project for local government (LG), the DTI and DILG signed a joint Memorandum Circular containing the implementing guidelines that set the standards in processing business permits and licensing in all cities and municipalities. Under the BPLS, all LG will use a single unified form in processing new applications for business permits and business renewals to reduce the steps and time for applying business permits. The government is likewise pursuing the full implementation of the Philippine Business Registry (PBR) system that establishes an on-line system for national business registration requirements and the Anti-Red Tape law.

The DILG recently established a Performance Challenge Fund (PC Fund) as an incentive fund for local governments that measure up to “good housekeeping” governance standards in the areas of planning, budgeting, revenue mobilization, financial management and budget execution, procurement, and resource mobilization. The PC Fund awards improvements in LG performance and stimulates LG and private sector investments in sectors prioritized by the national government. The DILG also recently issued a memorandum order that mandates all local government units to designate a local economic and investment promotion officer in their respective provinces and cities to promote growth of local economy. The designated local investment officer would be responsible for facilitating and coordinating economic programs in provinces and cities.

C3. SCOPE OF WORK

Flexibility and Creativity: 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 FY 2012-2016 within the PFG guidelines. USAID recognizes the need 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 achieve its objectives. 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).

Indicators and Targets: The contractor will be responsible for monitoring, evaluating, and reporting performance against agreed upon framework of goals, objectives, and results with indicators. 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. Project activities will contribute to:

· 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 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;

· 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;

· 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.

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. 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 five cities outside of Metro Manila to be determined by USAID. These 5 cities are all first class cities, located in highly urbanized areas with large populations. Two will be located in Mindanao, two in the Visayas, and one in Luzon.

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 equipment 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. Activities will support IT solutions that aim to provide a seamless environment for business registration across the application systems of all national level agencies with business registration-related transactions. 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 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. Provide a seamless environment for business registration across the 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 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 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 include:

· 5-10% increase in new businesses registered

· Five cities with One-Stop-Shops and connected to PBR

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

· Improved service orientation and client satisfaction

· Improved transparency and publication of business procedures and requirements.

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. Provide specialized training for designated local investment officers in targeted cities. Assist in the development of investment promotion and business development plans that market LGs as primary investment destinations. Enhance the participation of the private sector in investment promotion activities. 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:

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

· Five cities awarded under the Performance Fund

· Number of local investment officers trained and capacitated

· 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, 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 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);

C6. PERSONNEL REQUIREMENTS

The contractor has the ultimate responsibility for managing the contract, for 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 should be a composed of long-term Philippine professionals with strong local governance and enterprise development experience and supplemented by local and/or international short-term consultants. The proposed project team structure and an organizational chart must be included in the proposal with the names, positions and resumes of proposed personnel.

The project team should 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.

C6a. Qualifications of Key Personnel

The contractor shall identify, by name, it’s Key Personnel i.e., the key management and technical personnel who will work under this contract. Substitutions of key personnel shall be made only as directed by the Key Personnel clause in section F.

C6a(1) Chief of Party

The chief of party should possess the intellectual and leadership qualities necessary to develop, articulate and carry out a vision for the project.