RFP_BE_SECURE.pdf

Issuance Date: February 1, 2013

Deadline for Receipt of Questions: February 15, 2013 Closing Date: March 15, 2013

Closing Time: 3:00PM (Philippines time)

Subject: Request for Proposal (RFP) No. SOL-492-12-000038 Water Security for Resilient Economic Growth and Stability (BE SECURE)

Dear 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 technical services for the project entitled, “Water Security for Resilient Economic Growth (BE-SECURE) Project” described in the attached solicitation.

This procurement is being conducted through full and open competition, 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.

USAID/Philippines intends to award a cost-plus-fixed-fee (CPFF) completion type contract for a period of four

(4) years from the date of award with an estimated cost $19M-$20M. Offerors must propose costs that they believe are realistic and reasonable for the work described in Section C of this solicitation. The most effective approach for achieving the expected results is encouraged and award will be made to the Offeror whose proposal offers the best value to the Government considering technical and cost factors (see Section M).

Questions, comments and requests for clarifications must be sent to manilabesecure@usaid.gov and ecruz@usaid.gov no later than the date and time mentioned above. When submitting questions and requests for clarification, please make reference to the specific RFP as follows:

Subject: SOL-492-12-000038 BE SECURE Project Reference: SOL Section ___, paragraph ___, page ___

Oral explanations or instructions given before the award of the contract will not be binding. Furthermore, USAID/Philippines reserves the right to reject any and all offers, if such action is considered to be in the best interest of the US Government.

One (1) original and four (4) hard copies of the technical proposal and one (1) original and one (1) copy of the cost proposal constitutes a complete submission. Offerors must also submit an electronic copy of both their technical and cost proposals to the address provided below. Facsimile submissions will not be accepted.

USAID/Philippines Regional Office of Acquisition and Assistance 8/F PNB Financial Center Diosdado Macapagal Boulevard Pasay City, Philippines 1308 mailto:manilabesecure@usaid.gov mailto:ecruz@usaid.gov

Email addresses:

manilabesecure@usaid.gov ecruz@usaid.gov mbringula@usaid.gov

Offerors’ proposals must be submitted following the instructions prescribed in Section L of the RFP. Proposals must be signed by an official who is authorized to bind the organization and must be submitted to USAID/Philippines no later than the closing date and time stated in the cover letter. Proposals received after the closing date and time will be considered late and will be handled in accordance with FAR 15.208.

Offerors are also instructed to pay careful attention to Section K - Representations, Certifications and Other Statements of Offerors of the RFP. Offerors must comply with FAR 52.204-7, Central Contractor Registration, and complete the annual representations and certifications electronically via the Online Representations and Certifications Application website (http://orca.bpn.gov).

Issuance of this letter does not constitute an award commitment on the part of the Government, nor does it commit the Government to pay for costs incurred in the preparation and submission of the proposal. In addition, final award cannot be made until funds have been fully appropriated, allocated, and committed through internal USAID procedures.

Sincerely, /s/ Sallie McElrath Regional Contracting Officer mailto:manilabesecure@usaid.gov mailto:ecruz@usaid.gov mailto:mbringula@usaid.gov http://orca.bpn.gov/

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

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 ________ 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

SOL-492-12-000038 X

Office of Regional Procurement USAID/Philippines 8/F PNB Financial Center Pres. Diosdado Macapagal Boulevard

See Section L

Item 7 3:00PM Philippine

Elvira P. Dela Cruz +63 2 5529928 ecruz@usaid.gov

See Attached Table of Contents

N/A

Regional Financial Services Center USAID/Philippines 8/F PNB Financial Center Pres. Diosdado Macapagal Boulevard

X

X

X

X

X

X

X

X

Sallie McElrath, Supervisory Contracting Officer

SOL-492-12-000038

BE SECURE Project

TABLE OF CONTENTS

SECTION B – SUPPLIES OR SERVICES AND PRICE/COSTS

B.1 PURPOSE

B.2 CONTRACT TYPE AND SERVICES

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

B.4 CONTRACT BUDGET AND CEILINGS

B.5 BUDGET

B.6 INDIRECT COST

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

FOR INDIRECT COSTS

B.8 REIMBURSABLE COSTS

B.9 FIXED FEE

SECTION C – DESCRIPTION / SPECIFICATIONS/STATEMENT OF WORK

C.1 INTRODUCTION

C.2 BACKGROUND AND PROBLEM STATEMENT

C.3 PROGRAM TECHNICAL APPROACH

C.4 MANAGEMENT AND WORKING RELATIONSHIPS

C.5 GRANTS UNDER CONTRACTS

C.6 WORK PLANNING

C.7 MONITORING AND EVALUATION

C.8 GENDER CONSIDERATIONS

C.9 BACKGROUND READING

SECTION D – PACKAGING AND MARKING

D.1 AIDAR 752.7009 MARKING (JAN 1993)

D.2 BRANDING STRATEGY AND MARKING PLAN

SECTION E - INSPECTION AND ACCEPTANCE

E.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE

E.2 INSPECTION AND ACCEPTANCE

SECTION F – DELIVERIES OR PERFORMANCE

F.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATING BY REFERENCE

F.2 PERIOD OF PERFORMANCE

F.3 PERFORMANCE STANDARDS

F.4 REPORTS

F.5 PERIODIC PROGRESS REPORT

F.6 PERFORMANCE MONITORING PLAN

F.7 LANGUAGE OF REPORTS AND OTHER OUTPUTS

F.8 PROJECT EVALUATION

F.9 SUBMISSION REQUIREMENTS FOR DEVELOPMENT EXPERIENCE DOCUMENTS

SECTION G – CONTRACT ADMINISTRATION DATA

G.1 ADMINISTRATIVE CONTRACTING OFFICER

G.2 CONTRACTING OFFICER'S REPRESENTATIVE

G.3 TECHNICAL DIRECTIONS/RELATIONSHIP WITH USAID

G.4 PAYMENT BY ELECTRONIC FUNDS TRANSFER-CENTRAL CONTRACTOR REGISTRATION

G.5 DOCUMENTATION FOR PAYMENT

G.6 PAYING OFFICE

G.7 ELECTRONIC PAYMENT

SECTION H – CONTRACT REQUIREMENTS

H.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE

H.2 KEY PERSONNEL

H.3 AUTHORIZED GEOGRAPHIC CODE

H.4 SOURCE AND NATIONALITY REQUIREMENTS

H.5 SOURCE/ORIGIN REQUIREMENTS FOR MOTOR VEHICLES

H.6 APPROVALS FOR NONEXPENDABLE PROPERTY PURCHASES

H.7 NONEXPENDABLE PROPERTY PURCHASES AND INFORMATION TECHNOLOGY RESOURCES

H.8 AUTOMATION EQUIPMENT

H.9 VALUE ADDED TAX (VAT) AND CUSTOMS DUTIES

H.10 LOGISTICAL SUPPORT

H.11 GOVERNMENT FURNISHED FACILITIES OR PROPERTY

H.12 AUTHORIZED WORK DAY/WEEK

H.13 GRANTS UNDER CONTRACTS

H.14 TITLE TO PROPERTY

H.15 REQUESTS FOR CONTRACTING OFFICER’S CONSENT TO SUBCONTRACT

H.16 PRESS RELATIONS

H.17 DISCLOSURE OF INFORMATION

H.18 SECURITY

H.19 ENVIRONMENT COMPLIANCE

H.20 INTERNATIONAL TRAVEL APPROVAL AND NOTIFICATION REQUIREMENTS

H.21 CONFIDENTIALITY AND OWNERSHIP OF INTELLECTUAL PROPERTY

PART II - CONTRACT CLAUSES

SECTION I – CONTRACT CLAUSES

I.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE

I.2 CONTRACTOR CODE OF BUSINESS ETHICS AND CONDUCT (DEC 2008)

I.3 RIGHTS TO PROPOSAL DATA (JUN 1987)

I.4 INFORMATION REGARDING RESPONSIBILITY MATTERS (APR 2010)

I.5 OPTION TO EXTEND SERVICES (NOV 1999)

I.6 RIGHTS IN DATA – GENERAL (OCT 2007)

I.7 PERSONNEL COMPENSATION (JUL 2007)

I.8 ADDITIONAL REQUIREMENT FOR PERSONNEL COMPENSATION

I.9 EMPLOYMENT OF THIRD COUNTRY NATIONALS AND COOPERATING COUNTRY NATIONALS

I.10 REPORTING OF FOREIGN TAXES (MAR 2006)

I.11 INSURANCE AND SERVICES

I.12 MEDICAL EVACUATION (MEDEVAC) SERVICES (JULY 2007)

I.13 EMERGENCY LOCATOR INFORMATION (JUL 1997)

I.14 SALARY SUPPLEMENTS FOR HOST GOVERNMENT (HG) EMPLOYEES (OCT 1998)

I.15 APPROVALS (APR 1984)

I.16 COMPETITION AND SUBCONTRACTING

I.17 LANGUAGE AND MEASUREMENT (JUN 1992)

I.18 COMBATING TRAFFICKING IN PERSON (FEB 2009) ALTERNATE I (AUG 2007)

I.19 SUBCONTRACTS (JUN 2007)

I.20 ORGANIZATIONAL CONFLICTS OF INTERES DISCOVERED AFTER AWARD (JUN 1993)

I.21 CONTRACTOR’S USE OF PROJECT VEHICLES AND LIABILITY INSURANCE REQUIREMENTS

FOR PRIVATELY OWNED VEHICLES

I.22 PROVIDING ACCELERATED PAYMENT TO SMALL BUSINESS SUBCONTRACTORS (AUG 2012)

I.23 BUSINESS CLASS TRAVEL

I.24 FOREIGN GOVERNMENT DELEGATIONS TO INTERNATIONAL CONFERENCES (JAN 2002)

I.25 EXECUTIVE ORDER ON TERRORISM FINANCING (FEB 2002)

I.26 USAID DISABILITY POLICY - ACQUISITION (DECEMBER 2004)

I.27 HOMELAND SECURITY PRESIDENTIAL DIRECTIVE-12 (HSPD-12) (SEPT. 2006)

I.28 VOLUNTARY POPULATION PLANNING ACTIVITIES (JUN 2008)

SECTION J – LIST OF DOCUMENTS EXHIBITS AND OTHER ATTACHMENTS

ATTACHMENT J.1 LOCAL COMPENSATION POSITION DESCRIPTION GUIDELINES

ATTACHMENT J.2 BRANDING STRATEGY AND MARKING PLAN FORMAT

ATTACHMENT J.3 CONTRACTOR EMPLOYEE BIOGRAPHICAL DATA SHEET

ATTACHMENT J.4 SF-294 SUBCONTRACTING REPORT FOR INDV CONTRACT

ATTACHMENT J.5 SF-295 SUMMARY SUBCONTRACT REPORT

ATTACHMENT J.6 IDENTIFICATION OF PRINCIPAL GEOGRAPHIC CODE NUMBERS

PART IV – REPRESENTATIONS AND INSTRUCTIONS

SECTION K – REPRESENTATIONS, CERTIFICATIONS

AND OTHER STATEMENTS OF OFFERORS OR RESPONDENTS

K.1 NOTICE LISTING SOLICITATION PROVISIONS INCORPORATED BY REFERENCE

K.2 TAXPAYER IDENTIFICATION (OCT 1998)

K.3 DATA UNIVERSAL NUMBERING SYSTEM (DUNS) NUMBER (APR 2008)

K.4 ANNUAL REPRESENTATIONS AND CERTIFICATIONS (MAY 2011)

K.5 INSURANCE- IMMUNITY FROM TORT LIABILITY

K.6 AGREEMENT ON, OR EXCEPTIONS TO, TERMS AND CONDITIONS

K.7 AUTHORIZED NEGOTIATIORS

K.8 SIGNATURE

SECTION L - INSTRUCTIONS, CONDITIONS, AND NOTICES TO OFFERORS

L.1 NOTICE LISTING SOLICITATION PROVISIONS INCD BY REFERENCE

L.2 INSTRUCTIONS TO OFFERORS-COMPETITIVE ACQUISITION (JAN 2004)

L.3 SOLICITATION PROVISIONS INCORPORATED BY REFERENCE (FEB 1998)

L.4 SERVICE OF PROTEST (SEP 2006)

L.5 QUESTIONS AND CLARIFICATIONS

L.6 GENERAL INSTRUCTIONS TO OFFERORS

L.7 DELIVERY INSTRUCTIONS

L.8 PROPOSAL FORMAT AND PRESENTATION

L.9 RESPONSIVENESS TO RFP

L.10 OFFEROR'S RESPONSIBILITIES

L.11 SUBMISSION OF ALTERNATE PROPOSAL

L.12 INSTRUCTIONS FOR THE PREPARATION OF THE TECHNICAL PROPOSAL

L.13 INSTRUCTION REGARDING KEY PERSONNEL

L.14 INSTRUCTIONS FOR THE PREPARATION OF BRANDING IMPLEMENTATION AND MARKING PLANS

L.15 INSTRUCTIONS FOR THE PREPARATION OF THE COST PROPOSAL

L.16 ELECTRONIC PAYMENT

SECTION M – EVALUATION FACTORS FOR AWARD

M.1 GENERAL INFORMATION

M.2 TECHNICAL PROPOSAL EVALUATION CRITERIA

M.3 COST PROPOSAL EVALUATION

M.4 COST EVALUATION CRITERIA

M.5 DETERMINATION OF THE COMPETITIVE RANGE

M.6 CONTRACTING WITH SMALL BUSINESS CONCERNS

M.7 CONTRACTING WITH U.S. SMALL BUSINESS CONCERN IN THE MENTOR-PROTÉGÉ PROGRAM

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 – Description/Specifications/Statement of Work for the implementation of USAID/Philippines’ “Water Security for Resilient Economic Growth and Stability (BE SECURE) Project”

B.2 CONTRACT TYPE AND 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 provide the deliverables or outputs described in Section C in accordance with the performance standards specified herein.

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

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

(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).

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

B.4 CONTRACT BUDGET

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.

c) The Contractor shall not transfer costs between the budget line items without prior written approval of the Contracting Officer.

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). (to be filled in at contract award).

B.6 INDIRECT COSTS

(To be filled in at contract award)

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/ 2/ 2/ 2/ 1/ Base of Application:

Type of Rate:

Period:

2/ Base of Application:

Type of Rate:

Period:

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

REIMBURSEMENT FOR INDIRECT COSTS

a. The Contractor shall not make any changes in its established method of classifying or allocating indirect costs without the prior written consent of the Contracting Officer.

b. Reimbursement for indirect costs shall be in accordance with Section B.5 above, but not in excess of the ceiling rates below during the base period, and option period if any, of this contract.

Type Base Ceiling Rate :

Type of Rate:

Period :

c. The Government shall not be obligated to pay any additional amount on account of indirect costs above the ceiling rates established herein. If the final indirect cost rates are less than the negotiated ceiling rates, the negotiated rates will be reduced to conform with the lower rates.

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

e. Ceiling indirect cost rates for subcontractors shall be in accordance with the Contractor’s original proposal and/or final proposal revision which was accepted by USAID through award of this contract.

f. 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.

B.9 FIXED FEE

USAID paying office ordinarily pays the Contractor a percentage of fixed fee that directly corresponds to the percentage of allowable costs being paid. Two exceptions to paying fixed fee in this manner apply: 1) If the CO determines that this method results in paying a disproportionately higher ratio of fixed fee than the percentage of work that the Contractor has completed, then the CO may suspend further payment of any fixed fee until the Contractor has made sufficient progress to justify further payment, up to the agreed percentage. 2) The clauses entitled "Allowable Cost and Payment" (FAR 52.216-7) and "Fixed Fee" (FAR 52.216-8) are incorporated into this contract. The terms and conditions of these clauses apply after total payments of fixed fee reach eighty-five percent (85%) of the total fixed fee.

[END OF SECTION B]

SECTION C – DESCRIPTION/SPECIFICATIONS/STATEMENT OF WORK

C.1 INTRODUCTION

This Request for Proposals Statement of Work (SOW) pertains to a new Project supported by USAID/Philippines entitled “Water Security for Resilient Economic Growth and Stability” Project (Be Secure Project). The project approach is based on water security in the Philippines through strengthened resiliency to water-related climate change impacts and increased coverage and operational sustainability of domestic water supply services in communities of need. USAID/Philippines seeks the application of innovative, cost-effective approaches to implement Government of Philippines (GPH) policy initiatives in climate change adaptation and water sector reform in targeted regions. Be Secure will take an integrated sector and geographic approach, including technical assistance at multiple scales (national, provincial, river basin, municipality, community).

C.2 BACKGROUND AND PROBLEM STATEMENT

C.2.1 Challenges

Water security in its broadest sense is critical to enabling broad-based sustainable development 1.Water of sufficient quantity and quality is an essential input to economic growth, human health, food security, and the maintenance of critical ecosystem services. While water is essential for life, it also present risks to public safety and economic development, e.g. extreme hydrological events. Achieving water security is a balancing act – between supply and demand, among diverse economic sectors, ecosystems, and communities (Box 1).

In the Philippines, national abundance of water resources masks local scarcity. At the provincial level populations and economies grow, heightening demand and competition for limited supplies of clean water. Water quality is an increasingly serious problem as well with expanding productive activities in agriculture and industry leading to significant water pollution problems, as the great majority of waste does not undergo treatment before discharge into the environment. Domestic wastewater is the main source of bacterial contamination and nutrient loading, while industrial and agricultural point and non-point source pollution add a range of other chemical and toxic contaminants. Salinity is a growing problem in areas dependent on coastal groundwater as well, primarily caused by over-abstraction of aquifers, with some water utilities and private companies already closing wells over water quality concerns. Degraded water quality presents serious direct problems for both human and ecosystem health, rendering scarce remaining freshwater resources unsafe for use by humans. The annual economic losses caused by water pollution in the Philippines have been estimated at

1 The definition of water security has increasingly embraced a holistic view within the international water sector in the last decade. While there is no single accepted definition of the term, most of the current discourse focuses on a few commonly shared principles: (a)access to an appropriate quantity and quality of water to ensure human security in all its dimensions (physical, economic, social, political) and for multiple sectors (domestic, agricultural, industrial); (b) ecological sustainability of the resource over time at the appropriate geographic scale, i.e., watershed/river basin/aquifer; and (c) management of water-related risks under current and future socioeconomic and climate scenarios.

Box 1 The Three Dimensions of Water Security (adapted from the Final Report of the University of the Philippines National Institute of Geological Sciences under the MDG-F 1656: Joint Programme on Strengthening the Philippines’ Institutional Capacity to Adapt to Climate Change)

Water security depends on adequate management of three interrelated dimensions linking the supply of water resources in nature, access to and control of water through the human built environment, and the demand for water resources for communities and economies. Management of extreme hydrological events cuts across these aspects.

Physical water sources (supply) – the quality and quantity of available water resources provided by nature, including spatial and temporal availability;

Infrastructure/Services (access and control) – the human-built facilities required to extract, store, treat, and distribute water to where it is needed for all purposes, and to manage the impacts of water resources on humans, including the hardware and software to maintain and operate services; and

Water use (demand) – the total amount of water needed to meet human and ecosystem needs, and the level of productivity and efficiency for these end uses of water.

US$1.3 billion, including impacts associated with health costs, reduced fisheries production, and adverse impacts on tourism. 2

Beyond water resource, the Philippines faces challenges in delivering water supply services for domestic and productive uses. According to Joint Monitoring Program (WHO/UNICEF 2008) statistics, 92% of the population has access to safe drinking water, up from 85% in 2002, placing the Philippines among those countries declared to have met the water and sanitation MDGs. While this is high by international standards, 6.5 million Filipinos still lack access to improved drinking water supply even by these statistics, and other national analyses point to a higher number actually underserved (e.g., there are 18 million Filipinos without access to improved water supply according to the 2008 Annual Poverty Incidence Survey). Lack of access to improved water supply is actually only slightly better in urban areas compared with rural areas. Regional and income disparities play a much greater role in defining who has access, with poorer, remote, and conflict-prone parts of the country experiencing lower coverage levels, as well as rapidly growing informal peri-urban areas within cities. Water supply service providers struggle to keep pace with rapid population growth and growing industrial demand for water. Where coverage does exist, analyses from the World Bank, the WHO and GPH’s own benchmarking show that the quality of services is often low, with frequent shutoffs, intermittent supply, and water quality that does not meet national health standards. The financial and operational sustainability of utilities and independent service providers alike is generally in question, especially for smaller systems managed by communities or Local Government Units (LGUs).

Climate change is already exacerbating these water security challenges, with evidence of longer dry El Niño summer conditions, more extreme rainfall events, increasing temperatures, salinity in coastal groundwater, and shifting cyclone paths (Box 2). When the availability of water resources for productive and domestic use no longer follows historically expected patterns, the economic and social consequences can be enormous, with risks to food security, industry, tourism, and other engines of economic growth. Indeed, disasters of all types in the

Philippines cost an average of P15bn per year (~$350M) in direct damages, or more than 0.5% of the national GDP – a significant portion of which is associated with climate-related hazards.3 The World Bank has identified a disproportionate emphasis on post-disaster relief and short-term preparedness, such as forecasting and evacuation, rather than land use planning, facility siting and design, and other pre-event measures that can ameliorate vulnerable conditions over the long term as part of the problem. 4 Climate change projections are providing new information about the future in which anticipatory risk reduction, preparedness and awareness are even more urgent than before.

In all cases, water security related to either the resource itself or the provision of water-related services remains elusive in the Philippines because of a series of underlying issues related to the enabling environment, institutional framework, governance processes, and technical capacity of public and private actors. Challenges include fragmented governance and an unclear institutional framework, inadequate regulatory controls and enforcement, weak capacity at the decentralized level for water management or service delivery, inadequate processes for stakeholder engagement in water

2 Ibid.

3A detailed breakdown of costs by hazard type is not available, but XXXX will seek out disaggregated data from EMDAT database, from WB study on Tropical Storm Ondoy, and/or from http://www.preventionweb.net/english/countries/statistics/?cid=135] 4 Natural Disaster Risk Management in the Philippines: Enhancing Poverty Alleviation through Disaster Reduction:

http://siteresources.worldbank.org/INTEAPREGTOPENVIRONMENT/Resources/PH_Disaster_Risk_Mgmt.pdf

Box 2 A Climate Wake Up Call in Mindanao

Tropical storm Sendong (International name “Washi”) was not a particularly strong storm, but in December 2011, it brought a record-breaking 184mm of rainfall in just 24 hours to Cagayan de Oro in Mindanao, washing out settlement areas, destroying the city’s main piped water source, and resulting in more than 1,200 deaths. Flood warnings were issued but they were not heeded by local residents who believed they were safe because cyclone tracks in this area historically had changed course and headed north. The disaster in Cagayan de Oro is emblematic of the risks associated with climate change, wherein populations are ill prepared for more intense, frequent, or shifted hazards, like Sendong’s intense rains, associated flooding, and shifted course.

Though tragic, this experience presents a good opportunity to leverage the attention on issues of short-term disaster preparedness to improve overall resiliency to longer term climate change impacts throughout the Philippines.

sector planning and investment decision-making, lack of access to financing for investments in water supply development and distribution systems, and poorly collected, analyzed and shared water data. In all these, the predicted impacts of climate variability remains poorly understood making the first step to adaptation more challenging.

C.2.2 Current Efforts to Address Water Security

C.2.2.1 Government of the Philippines

Faced with this set of intersecting challenges, the Government of the Philippines (GPH) has undertaken a broad range of initiatives in the water sector (water resources management and water services delivery), climate change adaptation, and disaster risk reduction (DRR), the details of which are summarized in Attachment 2. In general, these efforts demonstrate that there has been considerable progress in developing overarching national policies and strategic frameworks in all three sectors. Work remains to translate these general documents into actionable plans leading to reforms in laws or institutional roles and responsibilities, and on the ground implementation.

C.2.2.2 US Government

For many years, USAID/Philippines and other agencies within the US government have been actively engaged in numerous development activities relevant to the Be Secure Project. The new Project will build on the important groundwork laid by these efforts. Some of the major ongoing activities in water supply and sanitation and disaster response and risk mitigation are described in Attachment 3, and summarized in Table 1 below:5

Table 1 Sectors of USG Investment in WASH, Water Resources, and Climate Change Adaptation

Program

WASH WRM GCC-A

Urban Water

Rural Water

Supply

Urban Sanitation/ Wastewater

Rural Sanitation/ Wastewater

Water Resources

Management

Climate Change

Adaptation

Disaster Risk

Reduction

USAID

Philippines Water Revolving Fund

(PWRF)

X X

Philippine Sanitation Alliance X

Alliance for Mindanao Off-Grid Renewable Energy (AMORE)

X X

Growth With Equity in Mindanao (GEM 3) X X

Development Grants Program (DGP) X X X X

C.2.2.3 Other Donors

Other donors are active in the water sector (WASH and water resources management) and, increasingly, in the arena of climate change adaptation. The Be Secure Project will actively engage donors during Project implementation to maximize donor coordination. Table 2 summarizes the general areas of intervention of other major donors in each of the Be Secure Project’s focus programming sectors. More detailed information on recent and ongoing efforts is provided in Attachment 2.

Table 2 Sectors of Donor Investment in WASH, Water Resources, and Climate Change Adaptation* (Grants and Loans)

Donor WASH WRM GCC-A

5 To date, USAID/Philippines has not had a specific programmatic focus on either climate change resiliency or water resources management, although several programs have included selected elements that contribute to building water security through enhanced resilience and ecosystem sustainability.

Urban Water

Rural Water Supply

Urban Sanitation/ Wastewater

Rural Sanitation/ Wastewater

Water Resources Management

Climate Change Adaptation

Disaster Risk Reduction

Multilateral Donors

World Bank X X X

WSP X

ADB X X X X

IAEA X

UN Agencies

UNDP X X X X X X X

UNICEF X X X

Bilateral Donors

JICA X X X X X

KOIKA X X X

GIZ X X X X X

KfW X X

Spanish Cooperation

AusAID X X X X

* Information is based on a combination of donor self-reporting as of February 2012, and may not be complete.

C.2.3 Linkages to USAID Strategic Context

The U.S. Government’s overall goal is to see the Philippines become a more stable, prosperous, and well-governed nation. Be Secure contributes directly to this goal by ensuring water security in the country’s growth centers to sustain economic progress. In particular, this Project will complement USAID/Philippines Cities Development Initiatives that aims to promote the growth of cities that have the potential to take off and enable the Philippines achieve the goal of moving from a low growth path to a higher, sustained and more inclusive growth trajectory. Likewise, improving access to basic services in conflict affected areas supports stability and economic prosperity

Efforts to reduce impacts of climate-related disasters will also sustain economic gains to the extent that local investment planning takes into consideration climate variability and long-term water security. Similarly, disaster risk reduction and increased climate resiliency of the Philippine economy and communities has a significant payoff in avoided health care costs over time.

Further, the Be Secure Project aligns with broader Agency priorities in both the climate change and water sectors:

Climate Change Adaptation

The objective of USAID’s climate change adaptation programming is to assist developing countries in reducing the vulnerability of human and natural systems to the impacts of climate change to ensure a more secure and sustainable future. The three types of priority activities identified for USAID adaptation Projects relate to:

Strengthened information and analysis to inform decision-making in areas sensitive to weather and climate;

Improved governance and planning to address climate-related risks to development; and

Piloting, implementation and evaluation of adaptation strategies.

The Be Secure Project is fully consistent with the USAID Climate Change Strategy, and will include some activities in each of these categories.

USAID is developing an official Water Strategy that should be released in 2012 which highlights important priorities in the sector, including support to and alignment with the three Presidential Initiatives of Global Health, Food Security, and Climate Change. The Be Secure Project’s integrated approach to water security is fully consistent with the Agency‘s emerging strategic direction in the sector. Within water resources management, for example, strategy typically emphasizes water services financial and operational sustainability, and an increasing focus on climate resiliency in the management of water resources for all human and ecosystem needs.

C.3 PROGRAM TECHNICAL APPROACH

C.3.1 Rationale

The Philippines faces significant challenges in all dimensions of water security as well as in their interaction. In order for the Philippines to achieve resilient and sustainable water security, however, all three of these elements must be managed and a balance among them maintained while taking climate change into account. The level of human demand for water cannot exceed the amount of renewable water available in nature over the long term, and allocations across sectors and over time must begin to reflect this. The investment in infrastructure and services in response to water variability of physical water resources must be appropriate to effectively manage supply risks to human communities and economies associated with hydrologic variability (both too much or too little). Infrastructure planning likewise needs to be in balance with expected demands for water for different purposes, and end users of water need to adjust behaviors and technical approaches to reflect the level of water access that is feasible and economic.

Behind each of these challenges in the Philippines context are numerous factors – including some larger exogenous forces as well as several more direct drivers. The Project will strategically focus on a select number of target drivers that are in the more direct control of governments, communities, civil society, and the private sector. These drivers present real opportunities for USAID investment and collaborative action (including poor access to sustainable services as well as exposure to climate-related hazards, sensitivity to impacts, and limited capacity to adapt). Figure 1 graphically summarizes these relationships and presents the Theory of Change or development hypothesis underlying the Be Secure Project, including the specific entry points for USAID investment and action.

Contextual (External) Drivers (outside manageable interest of the Water Secure Project)

Components of Water

Security

Human Water

Use (Demand)

Physical Water

Resource

(Supply)

Infrastructure and Services

(Access and

Control)

Desired Ends

Security

Sustainability

Resiliency

Direct Drivers (focus of the Water Secure

Project)

Enabling environment

(including policy framework, regulatory regime, governance processes, financing)

Institutional framework and capacity

Management, operations and maintenance capacity

Data and information for decision-making

Physical Water Resource

(Supply)

Figure 1

The Be Secure Project Theory of Change or = influence of contextual drivers on components of water security

= focus areas of the Be Secure Project

Population Growth and

Demographic Shifts

Natural Geophysical and Meteorological

Conditions

Growing Climate Change Stress

Economic Growth

C.3.2 Program Objectives

The overall objective of the Be Secure Project is to improve water security for resilient economic growth and stability in the Philippines. This will be achieved through two interrelated components – one focusing on sustainable water supply and wastewater treatment service delivery, and the other focusing on increased resilience to climate-related water stress and hydrologic extremes. As mentioned above, the sub-Intermediate Results for each IR are focused on enabling environment, technical and institutional capacity, good governance, and local risk reduction.

The Results Framework for the Project is presented in Figure 2, outlining the two Intermediate Results, a series of sub-Intermediate Results, and the principal level(s) of intervention for each (national, subnational, or community).

Figure 2

The Be Secure Project Results Framework

C.3.3 Target Geographic Regions

The Be Secure Project will carry out activities at multiple geographic scales. Some interventions will occur at the national level, including those relating to the enabling policy or legal environment for water resources management and/or climate change adaptation. These activities will have broad-ranging impacts, affecting all of the Philippines. Other components of the Project will be site-based, working at the regional and local scales to achieve results.

For regional- and community-based activities, the Be Secure Project will work with the appropriate local government unit (i.e, cities/municipalities and/or province) as lead implementing agencies and attempt to the greatest extent possible to work on issues at watershed scale. Five priority watersheds have been identified for the Be Secure Project and are part of larger river basins, all of which are priorities by the GPH. 6 The selection of key sites was based on an analysis of criteria including: access to and sustainability of water supply services;

6 The GPH has identified 18 priority river basins in which to focus initial Integrated Water Resources Management (IWRM)and river basin based planning and action.

Sub-IR 1.1.

Strengthened enabling environment for sustainable water supply and wastewater treatment service delivery (N, C)

Sub-IR 1.2.

Strengthened water supply and wastewater treatment service providers for sustainable service delivery (R, C)

Sub-IR 2.1.

Strengthened water and climate data collection, analysis, and communication

(N, R, C)

OBJECTIVE: Water security improved for resilient economic growth and stability

Sub-IR 2.2.

Reduced hydrological risks at sub-national level (R, C)

Intermediate Result 1: Increased sustainable access to water supply services

Intermediate Result 2: Increased resilience to climate-related water stress and hydrological extremes

Sub-IR 2.3.

Improved capacity for long-term water security at sub-national level

(R)

Level(s) of Intervention:

N = national (including central government or other country-wide efforts with broad reach) R = regional (sub-national) (including regional or provincial political jurisdictions, formal river basin/sub-basin/watershed institutions, and/or clusters of continuous municipalities or provinces in those watersheds) C = community (including city, municipality, small town, rural village or barangay levels) water resources stress; vulnerability to climate change impacts; and complementarity with USAID programs and GPH priorities, especially related to U.S. Partnership for Growth focus cities and ARMM peace and stability priority areas.

The mix of interventions in each watershed will vary depending on the relative importance of sustainable water services and long-term water security in each region. Table 3 summarizes the corresponding areas of programming emphasis expected for each site. Offerors shall bear in mind that within objectives the nature of activities shall reflect the different contexts of each location, e.g. water and wastewater treatment services efforts in sites 1 and 2 shall focus on larger scale financing and utility reform while water supply interventions in sites 4 and 5 shall focus on strengthening of generally smaller systems. Figure 3 illustrates, but is not an exhaustive list of the major river basin in which the key cities/municipalities of interest are situated. In their proposals, Offerors should further refine the boundaries of each area in which they propose to work, especially with respect to the watershed areas, and targets.

Figure 3

The Be Secure Project Geographic Priorities and Programming Focus

** Climate change considerations will be integrated into the planning and design of water supply infrastructure and services in Cotabato City.

F o cu s

S it e s

Region / Province

Focus River Basin

Key Cities/ Municipalit ies

Objective(s) Addressed

Objective 1: Increased sustainable access to water and wastewater services

Objective 2: Increased resilience to climate-related water stress and extremes

Region VI

Western Visayas

River Basins:

Jalaur River and Iloilo River

Iloilo City X X

Region X

Misamis Oriental

River Basin:

Cagayan de Oro

Cagayan de Oro

X X

3 Region II River Basin:

Cagayan Valley

Tuguegarao X

ARMM

Maguindanao*

River Basin:

Mindanao

Cotabato City

Region IX and

ARMM

Basilan* n/a

Isabela City, Maluso, Tipo-Tipo, Lamitan

Figure 3 The Be Secure Project Geographic Priorities (by river basin/watershed location)

(subwatershed boundaries are shown in inset boxes)

Abulog River Basin

20 MAJOR RIVER BASINS

IN THE PHILIPPINES

100 1000

Kilometers

Cagayan River Basin

Abra River Basin

Agno River Basin

Pampanga River Basin

Pasig-Laguna River Basin

Bicol River Basin

Amnay River Basin Panay River Basin

Jalaur River Basin

Tigum-Aganan River Basin

Ilog-Hilabangan River Basin

Agus River Basin

Cagayan de Oro River Basin

Tagaloan River Basin

Mindanao River Basin

Agusan River Basin

Tagum (Saug)-Libuganon River Basin

Davao River Basin

Buayan-Malungan River Basin

C.3.4 Program Funding Sources

To accomplish these objectives, the Be Secure Project brings together two sources of USAID funding, (a) Water Earmark, and (b) Climate Change Initiative Adaptation funds. Each funding source has specific requirements associated with it, which are described in detail in Attachment 5.

Within the total $20 million Be Secure Project budget, approximately $13 million is funded from the Global Climate Change Initiative’s Adaptation pillar, and approximately $7 million from water earmark funding (Program element 54 under Program sub-element 3.1.8). While all water earmark funds are more narrowly defined and must be directed to IR 1 activities, Climate Change Adaptation is a more cross-cutting dimension of water security, so that a small proportion of these funds may be devoted to specific climate change adaptation tasks in both sub-IRs of IR 1 if necessary, in addition to fully funding all activities under IR 2. Table 4 summarizes the approximate distribution of overall Project funding by IR and sub-IR, and across the two funding sources.

Table 4 Notional Funding Levels by Intermediate Result

Approximate Percentage of Total Budget

Intermediate Results

Climate Change Adaptation Pillar

Funding (under PE* 86)

Water Earmark Funding (in $M)

(under PE 54)

Total by Sub-IR (in $M)

IR 1

IR 1.1 Strengthened enabling environment for sustainable service delivery

A small amount of CCA funding may be used for climate related activities in this sub-IR if necessary

$2 $2

IR 1.2 Improved capacity of water service providers to expand coverage and improve services

A small amount of CCA funding may be used for climate related activities in this sub-IR if necessary

$5 $5

IR 2

IR 2.1. Strengthened analysis, communication and use of water and climate data

$3 --- $3

IR 2.2. Reduced hydrological risks at sub-national level (near term adaptation)

$6 --- $6

IR 2.3. Improved capacity for long-term water security (longer term adaptation)

$4 --- $4

Total $13million $7 million $20 million

C.3.5 Expected Outcomes

The successful implementation of the 4-year Be Secure Project will produce the following outcomes:

Increased access to improved water supply and wastewater services

Reduced hydrological risks and climate change vulnerability at the sub-national level

Strengthened enabling environment for sustainable water and wastewater service delivery

Strengthened analysis, communication and use of water resources and climate data

The above outcomes shall be measured by the following Agency standard indicators through these targets:

1.2 million people with access to improved drinking water supply as a result of USG assistance, at least 500,000 of whom will be from communities in conflict-affected areas in Mindanao

50 stakeholder groups with increased capacity to adapt to the negative impacts of climate change as a result of USG assistance

In addition to the USAID standard indicators, the above stated outcomes will also be measured by the following indicators:

• Number of people in target areas with access to improved drinking water supply as a result of USG assistance.

• Stakeholder satisfaction of information provided by PAG-ASA Regional Offices

Change from baseline in risk to hydrological disasters at the Local Government Unit level

Number of water reform policies adopted by GPH

The table below summarizes the intermediate and sub-intermediate results and the desired outcomes that will be measured by standard and customized indicators:

Table 5 Intermediate Results and Indicators Intermediate Results Targets and

Standard Indicators Other Indicators

IR 1

IR 1. Increased Sustainable access to water supply services

1.2 million people with access to improved drinking water supply as a result of USG assistance, 500,000 of which will be from communities in conflict-affected areas in Mindanao

Sub-IR 1.1 Strengthened enabling environment for sustainable water service delivery

Number of water reform policies adopted by GPH

Sub-IR 1.2 Strengthened water supply and wastewater service providers for sustainable service delivery

Number of people in target areas with access to improved drinking water supply as a result of USG assistance.

IR 2

IR 2. Increased resilience to climate-related water stress and hydrological extremes

50 stakeholders with increased capacity to adapt to the impacts of climate variability and change as a result of USG assistance

IR 2.1 Strengthened analysis, communication and use of water and climate data

Stakeholder satisfaction of information provided by PAG-ASA Regional Offices

IR 2.2 Increased resilience to climate-related water stress and hydrological extremes

Change from baseline in risk to hydrological disasters at the Local Government Unit level

IR 2.3 Improved capacity for long-term water security

C.3.6 Program Components As described above, the Be Secure Project will focus on two major Intermediate Results areas that together help support water security in selected sites in the Philippines. For each of these results, and series of results and tasks has been identified, described in more detail in Section C.3.7. The sub-IRs and Tasks for IR 1 and 2 are summarized as follows:

Intermediate Result 1: Increased sustainable access to water supply services

Sub-IR 1.1 Strengthened enabling environment for sustainable water service delivery

Task 1.1.1: Strengthen government accountability for sustainable water services and water security Task 1.1.2: Strengthen regulatory framework for sustainable water services and water security Task 1.1.3: Mobilize financing for sustainable water supply and wastewater service delivery Task 1.1.4: Strengthen data and information management on water supply sector performance

Sub-IR 1.2 Strengthened water supply and wastewater service providers for sustainable service delivery Task 1.2.1: Increase capacity of water service providers for sustainable water and wastewater services Task 1.2.2: Introduction of integrated water and wastewater service delivery models at the watershed scale Task 1.2.3: Increase water supply and wastewater service provider capacity in disaster risk reduction and climate change adaptation

Intermediate Result 2: Increased resilience to climate-related water stress and hydrological extremes

Sub-IR 2.1 Strengthened analysis, communication and use of water resources and climate data Task 2.1.1: Improve analysis and sharing of water resources and climate data Task 2.1.2:…