PACIFIC_AM_FUND_Final.pdf

Pacific-American Climate Fund SOL-492-13-000009

RFP Issuance Date: 18th June 2013 RFP Closing Date: 29th July 2013 RFP Closing Time: 9am, Manila Time

Questions closing date: 27th June, 2013 Questions closing time: 3pm, Manila Time

SUBJECT: Request for Proposal (RFP) No. SOL-492-13-000009

Pacific- American Climate Fund

Dear Prospective Offerors:

The United States Government, represented by the U.S. Agency for International Development (USAID) Mission to the Philippines, is soliciting proposals from eligible Section 8(a) firms interested in providing the services detailed in the attached RFP for a project that will be administered by USAID Philippines’ Office of Environment, Energy, and Climate Change

(OEECC).

This procurement is set aside for eligible Section 8(a) firms, as described in Part 19 of the Federal Acquisition Regulation (FAR). Proposals will only be accepted from eligible Section 8(a) firms in support of USAID’s interest in expanding the number and sustainability of development partners, including potential new small business partners.

USAID/Philippines plans to award a Cost-Plus-Fixed-Fee (CPFF) completion type contract. The maximum estimated amount of the contract (costs and fee) is US$20 to 24million for a performance period of five years. Offerors must propose costs that are appropriate, realistic and reasonable for the work. Cost proposals will be evaluated as part of the Best Value determination for the contract award, including cost effectiveness of approaches to achieve the desired performance and deliverables.

This solicitation consists of this cover letter and the attached RFP. Offerors must carefully review this cover letter and the contents of the RFP.

It is the responsibility of those interested in this procurement to ensure that they received the solicitation document in its entirety, including subsequent solicitation amendments, if any.

USAID bears no responsibility for data errors resulting from transmission or conversion processes.

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 duly authorized to bind the Offeror’s organization.

U.S. Agency for International Development

Annex 2 Building

U.S. Embassy

1201 Roxas Boulevard

1000 Ermita, Manilla, Philippines

Tel: (632) 301-6000

Fax (632) 301-6213 http://philippines.usaid.gov

Proposals are to be submitted electronically to the Acquisition Specialist, Ms. Abegail Castillo at manila-roaa-rfp@usaid.gov no later than the closing date and time indicated above.

Offerors are required to submit electronic copies of both their technical and cost proposals.

Facsimile submissions will not be accepted.

Proposals received after the closing time and date, or are incomplete, will not be accepted nor considered unless authorized by the Contracting Officer pursuant to FAR 15.208. Offerors are responsible to ensure that proposals are received at USAID/Philippines by the specified due date and time.

Questions, comments, requests for clarifications must be sent to manila-roaa-rfp@usaid.gov no later than 27th June 2013, 3pm, Manila time.

USAID/Philippines reserves the right to reject any and/or all offers if such action is considered to be in the best interest of the US Government. Issuance of this solicitation and receipt of proposals from interested Offerors do not constitute a commitment on the part of the U.S Government or USAID to make an award. Neither does it constitute an obligation to reimburse interested Offerors for any costs they incurred in the preparation and submission of their proposal. Award of a contract will be subject to availability of funds and proper completion of required USAID internal processes.

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

Sincerely, /s/ Erik Singer Contracting Officer mailto:manila-roaa-rfp@usaid.gov mailto:manila-roaa-rfp@usaid.gov

U.S. Agency for International Development

Annex 2 Building

U.S. Embassy

1201 Roxas Boulevard

1000 Ermita, Manilla, Philippines

Tel: (632) 301-6000

Fax (632) 301-6213 http://philippines.usaid.gov

SECTION B – SUPPLIES OR SERVICES AND PRICES/COSTS ___________________________________ 7

B.1 PURPOSE __________________________________________________________________________ 7

B.2 CONTRACT TYPE ____________________________________________________________________ 7

B.3 ESTIMATED COST, FIXED FEE AND OBLIGATED AMOUNT ____________________________________ 7

B.4 CONTRACT BUDGET AND CEILINGS _____________________________________________________ 7

B.5 COST REIMBURSABLE ________________________________________________________________ 7

B.6 INDIRECT COST _____________________________________________________________________ 8

SECTION C – DESCRIPTION/SPECIFICATIONS/STATEMENT OF WORK _________________________ 9

C.1 INTRODUCTION _____________________________________________________________________ 9

C.4 STATEMENT OF WORK ______________________________________________________________ 15

C.5 COUNTERPARTS AND PARTNER AGENCIES ______________________________________________ 20

C.6 CRITICAL ISSUES AND CONSIDERATIONS IN DEVELOPING THE PROPOSAL _____________________ 20

C.7 MONITORING AND EVALUATION PLAN ________________________________________________ 23

C.8 COST SHARING ____________________________________________________________________ 24

C.9 USAID OVERSIGHT OF GRANT-MAKING _________________________________________________ 24

C.10 KEY PERSONNEL ___________________________________________________________________ 24

C.11 BRANDING STRATEGY _______________________________________________________________ 26

C.12 REFERENCES ______________________________________________________________________ 27

SECTION D – PACKAGING AND MARKING ______________________________________________ 29

D.1 AIDAR 752.7009 MARKING (JAN 1993) _________________________________________________ 29

D.2 BRANDING POLICY AND STRATEGY ____________________________________________________ 30

D.3 APPROVAL OF CONTRACTOR BRANDING IMPLEMENTATION AND MARKING PLAN ______________ 31

SECTION E – INSPECTION AND ACCEPTANCE ___________________________________________ 32

E.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE ________________________ 32

E.2 INSPECTION AND ACCEPTANCE _______________________________________________________ 32

SECTION F – DELIVERIES OR PERFORMANCE ____________________________________________ 33

F.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE ________________________ 33

F.2 PERIOD OF PERFORMANCE __________________________________________________________ 33

F.3 PLACE OF PERFORMANCE____________________________________________________________ 33

F.4 PERFORMANCE STANDARDS _________________________________________________________ 33

F.6 MANAGEMENT OF CONTRACT ________________________________________________________ 34

F.7 REPORTS AND OTHER DELIVERABLES __________________________________________________ 36

F.8 REPORTING FORMAT _______________________________________________________________ 42

F.9 LANGUAGE OF REPORTS AND OTHER OUTPUTS __________________________________________ 42

F.10 TECHNICAL DIRECTION AND DESIGNATION OF RESPONSIBLE USAID OFFICIALS _________________ 42

F.11 AIDAR 752.7005 SUBMISSION REQUIREMENTS FOR DEVELOPMENT EXPERIENCE DOCUMENTS (JAN

2004) 42

F.12 EVALUATIONS _____________________________________________________________________ 44

SECTION G – CONTRACT ADMINISTRATION DATA _______________________________________ 45

G.1 ADMINISTRATIVE CONTRACTING OFFICE _______________________________________________ 45

G.2 CONTRACTING OFFICER _____________________________________________________________ 45

G.3 CONTRACTING OFFICER’S REPRESENTATIVE _____________________________________________ 45

G.4 TECHNICAL DIRECTIONS/RELATIONSHIP WITH USAID _____________________________________ 45

G.5 ACCEPTANCE AND APPROVAL ________________________________________________________ 47

G.6 PAYING OFFICE ____________________________________________________________________ 47

G.7 AIDAR 752.7003 DOCUMENTATION FOR PAYMENT (NOV 1998) _____________________________ 47

G.8 ACCOUNTING AND APPROPRIATION DATA ______________________________________________ 49

G.9 FAR 52.232-25 PROMPT PAYMENT (OCT 2008) ___________________________________________ 49

SECTION H – SPECIAL CONTRACT REQUIREMENTS _______________________________________ 55

H.1 52.219-18 NOTIFICATION OF COMPETITION LIMITED TO ELIGIBLE 8(a) CONCERNS (JUN 2003) ____ 55

H.2 52.219-17 SECTION 8(a) AWARD (DEC 1996) ____________________________________________ 55

H.3 52.219-14 LIMITATIONS ON SUBCONTRACTING (NOV 2011) ________________________________ 56

H.4 KEY PERSONNEL ___________________________________________________________________ 57

H.5 REQUESTS FOR CONSENT TO SUBCONTRACT ____________________________________________ 57

H.6 AUTHORIZED GEOGRAPHIC CODE _____________________________________________________ 57

H.7 752.225-70 SOURCE AND NATIONALITY REQUIREMENTS (FEB 2012) _________________________ 57

H.8 GRANTS UNDER CONTRACTS _________________________________________________________ 58

H.9 SPECIAL ACTIVITIES FUND ____________________________________________________________ 58

H.10 REPORTING ON TAXATION OF U.S. FOREIGN ASSISTANCE (JULY 2007) ________________________ 58

H.11 TITLE TO PROPERTY ________________________________________________________________ 59

H.12 752.227-14 RIGHTS IN DATA – GENERAL (OCT 2007) ______________________________________ 60

H.13 PRESS RELATIONS __________________________________________________________________ 60

H.14 ENVIRONMENTAL COMPLIANCE ______________________________________________________ 60

H.15 WORKER’S COMPENSATION INSURANCE (DEFENSE BASE ACT) ______________________________ 62

H.16 AIDAR 752.228-70 MEDICAL EVACUATION (MEDEVAC) SERVICES (JULY 2007) __________________ 63

H.17 AIDAR 752.7004 EMERGENCY LOCATOR INFORMATION (JUL 1997) __________________________ 63

H.18 HOMELAND SECURITY PRESIDENTIAL DIRECTIVE-12 (HSPD-12) (SEPT 2006) ___________________ 63

H.19 PROVIDING ACCELERATED PAYMENT TO SMALL BUSINESS SUBCONTRACTORS _________________ 64

(DEVIATION) (AUG 2012) ___________________________________________________________________ 64

SECTION I – CONTRACT CLAUSES _____________________________________________________ 65

I.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE ________________________ 65

I.2 FAR 52.252-2 CLAUSES INCORPORATED BY REFERENCE (FEB 1998) __________________________ 69

I.3 FAR 52.227-23 RIGHTS TO PROPOSAL DATA (TECHNICAL) (JUN 1987) ________________________ 69

I.4 AIDAR 752.7007 PERSONNEL COMPENSATION (JUL 2007) __________________________________ 69

I.5 AIDAR 722.170 EMPLOYMENT OF THIRD COUNTRY NATIONALS (TCNs) AND COOPERATING COUNTRY

NATIONALS (CCNs) ________________________________________________________________________ 69

I.6 CONTRACTOR’S STAFF SUPPORT AND ADMINISTRATIVE AND LOGISTICAL ARRANGEMENTS ______ 70

I.7 AUTHORIZED WORK DAY/WEEK _______________________________________________________ 70

I.8 LANGUAGE REQUIREMENTS__________________________________________________________ 71

I.9 AIDAR 752.7025 APPROVALS (APR 1984) _______________________________________________ 71

I.10 AIDAR 752.7032 INTERNATIONAL TRAVEL APPROVAL AND NOTIFICATION REQUIREMENTS _______ 71

(JAN 1990) ______________________________________________________________________________ 71

I.11 BUSINESS CLASS AND PREMIUM CLASS TRAVEL __________________________________________ 71

I.12 CONTRACTOR’S USE OF PROJECT VEHICLES AND LIABILITY INSURANCE REQUIREMENTS FOR

PRIVATELY OWNED VEHICLES _______________________________________________________________ 71

I.13 GOVERNMENT FURNISHED FACILITIES OR PROPERTY _____________________________________ 72

I.14 AIDAR 752.245-71 TITLE TO AND CARE OF PROPERTY (APR 1984) ____________________________ 72

I.15 AIDAR 752.227-14 RIGHTS IN DATA – GENERAL (OCT 2007) ________________________________ 73

I.16 AIDAR 752.231-71 SALARY SUPPLEMENTS FOR HG EMPLOYEES (OCT 1998) ___________________ 73

I.17 FOREIGN GOVERNMENT DELEGATIONS TO INTERNATIONAL CONFERENCES (JAN 2002) __________ 73

I.18 VALUE ADDED TAX (VAT) AND CUSTOM DUTIES __________________________________________ 74

I.19 CONFLICTS OF INTEREST _____________________________________________________________ 74

I.20 FAR 52.203-13 CONTRACTOR CODE OF BUSINESS ETHICS AND CONDUCT (APR 2010) ___________ 75

I.21 302.3.5.9 NON-DISCRIMINATION (JUN 2012) ____________________________________________ 79

I.22 USAID DISABILITY POLICY - ACQUISITION (DEC 2004) ______________________________________ 79

I.23 EXECUTIVE ORDER ON TERRORISM FINANCING __________________________________________ 79

I.24 FAR 52.222-50 COMBATING TRAFFICKING IN PERSONS (FEB 2009) Alt. I (AUG 2007) ____________ 79

I.25 302.3.5.13 PERSONAL IDENTITY VERIFICATION OF CONTRACTOR PERSONNEL (JULY 2007) _______ 81

I.26 AIDAR 752.7101 VOLUNTARY POPULATION PLANNING ACTIVITIES (JUNE 2008) ________________ 82

I.27 FAR 52.209-9 UPDATES OF PUBLICLY AVAILABLE INFORMATION REGARDING RESPONSIBILITY

MATTERS (FEB 2012) ______________________________________________________________________ 83

I.28 DISCLOSURE OF INFORMATION ______________________________________________________ 84

SECTION J – LIST OF ATTACHMENTS __________________________________________________ 85

SECTION K – REPRESENTATIONS, CERTIFICATIONS AND OTHER STATEMENTS OF OFFERORS OR

RESPONDENTS ___________________________________________________________________ 86

K.1 NOTICE LISTING SOLICITATION PROVISIONS INCORPORATED BY REFERENCE ___________________ 86

K.2 FAR 52.204-8 ANNUAL REPRESENTATIONS AND CERTIFICATIONS (FEB 2012) __________________ 86

K.3 INSURANCE - IMMUNITY FROM TORT LIABILITY __________________________________________ 90

K.4 FAR 52.209-7 INFORMATION REGARDING RESPONSIBILITY MATTERS (FEB 2012) ______________ 90

K.5 AGREEMENT ON, OR EXCEPTIONS TO, TERMS AND CONDITIONS ____________________________ 91

K.6 SIGNATURE _______________________________________________________________________ 92

SECTION L – INSTRUCTIONS, CONDITIONS, AND NOTICES TO OFFERORS OR RESPONDENTS _____ 93

L.1 NOTICE LISTING SOLICITATION PROVISIONS INCORPORATED BY REFERENCE ___________________ 93

L.2 52.252-1 SOLICITATION PROVISIONS INCORPORATED BY REFERENCE (FEB 1998) _______________ 93

L.3 ACQUISITION SCHEDULE_____________________________________________________________ 93

L.4 FAR 52.215-1 INSTRUCTIONS TO OFFERORS-COMPETITIVE ACQUISITION (JAN 2004) ____________ 94

L.5 ADDITIONAL INSTRUCTIONS TO OFFERORS ______________________________________________ 98

L.6 OFFER EXPIRATION DATE ___________________________________________________________ 100

L.7 GOVERNMENT OBLIGATION _________________________________________________________ 100

L.8 INSTRUCTIONS FOR THE PREPARATION OF THE TECHNICAL PROPOSAL ______________________ 100

L.9 COST PROPOSALS _________________________________________________________________ 105

L.10 INSTRUCTIONS FOR THE PREPARATION OF BRANDING IMPLEMENTATION AND MARKING PLANS _ 111

SECTION M – EVALUATION FACTORS FOR AWARD _____________________________________ 113

M.1 GENERAL INFORMATION ___________________________________________________________ 113

M.2 TECHNICAL EVALUATION CRITERIA ___________________________________________________ 114

ATTACHMENTS __________________________________________________________________ 118

ATTACHMENT J.1 LOCAL COMPENSATION POSITION DESCRIPTION GUIDELINES ____________________ 118

ATTACHMENT J.2 BRANDING IMPLEMENTATION PLAN AND MARKING PLAN FORMAT ______________ 132

ATTACHMENT J.3 USAID FORM 1420-17 CONTRACTOR EMPLOYEE BIOGRAPHICAL DATA SHEET _______ 138

PART I

SECTION B – SUPPLIES OR SERVICES AND PRICES/COSTS

B.1 PURPOSE

The purpose of this contract is to provide the services to support USAID’s “Pacific -American Climate Fund” as described in Section C of this RFP.

B.2 CONTRACT TYPE

This is a Cost-Plus-Fixed-Fee Completion type contract.

For the consideration set forth below, the Contractor will achieve the performance objectives and deliverables or outputs described in Sections, C, D and F and otherwise comply with all contract requirements.

B.3 ESTIMATED COST, FIXED FEE AND OBLIGATED AMOUNT

The Total Estimated Cost plus fixed-fee for this acquisition is approximately $20,000,000 - $24,000,000.

The Contractor will not be paid any sum in excess of the ceiling price.

B.4 CONTRACT BUDGET AND CEILINGS

(a) The contract budget is based on the Contractor’s original proposal and/or final proposal revision.

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

Program Costs Subcontracts Sub-awards Special Activities Fund Fixed-Fee Total Contract Price

B.5 COST REIMBURSABLE

The U.S. dollar costs allowable shall be limited to necessary reasonable, allowable and allocable costs determined in accordance with FAR 31 (Contract Cost Principles), OMB A-21 (Cost Principles for Educational Institutions), 2 CFR 230 (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.6 INDIRECT COST

The Contractor is allowed to recover applicable indirect costs (i.e., overhead, G&A, etc.) on other direct costs (ODCs), if it is part of the Contractor’s usual accounting procedures, consistent with FAR Part 31, and Negotiated Indirect Cost Rate Agreement (NICRA).

[END OF SECTION B]

SECTION C – DESCRIPTION/SPECIFICATIONS/STATEMENT OF WORK

C.1 INTRODUCTION

C.1.a Title

The activity will be entitled “Pacific-American Climate Fund.”

C.1.b Summary

Through this contract, the United States Agency for International Development, Pacific Islands (USAID/Pacific Islands) establishes the Pacific-American Climate Fund, a grant-making facility that will provide and monitor grants, on behalf of USAID/Pacific Islands, for climate change adaptation measures to qualifying recipients (here, referred to as sub-grantees).At the highest level, the goal of the activity is to reduce long-term vulnerabilities associated with climate change and achieve sustainable climate-resilient development at the community-level. The Pacific-American Climate Fund will provide USAID a platform to fund adaptation measures in communities to reach this goal.

The Contractor must establish, manage, and administer this grant facility on behalf of USAID. Grant administration entails preparing and issuing solicitations, reviewing proposals, awarding grants, monitoring and evaluating grant performance, monitoring and auditing financial reports, ensuring due diligence and compliance with USAID rules and regulations, closing out grants, and reporting to USAID.

The Pacific-American Climate Fund also provides organizational capacity-building to local sub-grantees to ensure proper stewardship of USG funding and improved organizational and financial management of local partners.

Sub-grants awarded by USAID through the Pacific-American Climate Fund is aimed toward civil society organizations, including local, national, and internationally-operating organizations. By creating a grant-making facility that provides grants to qualifying recipients (here, referred to as sub-grantees), through an open and competitive process, USAID will support Civil Society Organizations (CSOs) to implement adaptation measures that strengthen climate resilience in Pacific Island communities. Subject to USAID approval, grants made and administered by the facility will fund non-sovereign civil society entities, including private enterprises, non-governmental organizations and institutions, universities, faith based organizations, and local civil society organizations.

Sub-grants will support USG development objectives and will complement other support being given by the United States Government (USG) to the Pacific Islands.

C.1.c Goals and Objectives

The Pacific Island region is one of the world’s most vulnerable regions to the negative impacts of climate change. The goal of the Pacific-American Climate Fund is to provide USAID a platform to build the resiliency of vulnerable communities to adapt to the negative impacts of climate change. By creating a grant-making facility that provides grants to qualified recipients, through an open and competitive process, the activity will support implementation of adaptation measures (such as best practices or new technologies) that reduce climate change-related vulnerabilities at the community-level. The Pacific- American Climate Fund will be a flexible and adaptable resource to respond to the many diverse conditions, challenges and circumstances encountered in the Pacific Island Region. Ultimately, the Pacific-American Climate Fund endeavors to ensure sustainability of funded activities through community-wide adoption and scale-up of proven adaptation measures.

In addition to building climate resiliency, this activity will provide sub-grants that strengthen the managerial and financial capacity of civil society entities that are technically capable, but require additional financial, managerial, and organizational training. Although sub-grants under the Pacific- American Climate Fund will be open to civil society entities operating nationally or internationally, building local managerial and financial capacity will be encouraged, so that local recipients develop a stronger capability for contributing to and sustaining the country’s development in the long-term.

C.2. PROBLEM ANALYSIS AND OVERVIEW

Although many Pacific Island nations are engaged in policy development and planning for climate change impacts at national and regional levels, community-level action is limited. At present, donor funding for climate change adaptation is focused on policy coordination, climate modeling, and infrastructure, while implementation of innovative climate change adaptation action at the community-level is also needed in many countries. In the Pacific, civil society groups play a critical role in social and economic development, yet are often hindered by a lack of resources and managerial capacity. USAID through the Pacific-American Climate Fund will support non-sovereign organizations in civil society to implement sustainable and readily-available adaptation measures that strengthen the climate resilience of communities. The Contractor must manage, administer, monitor, and oversee the grant-making process that seeks to achieve these results.

C.2.a Climate Change Impacts on Livelihoods in the Pacific Islands

The Pacific region’s diverse island nations and territories are considered the most vulnerable in the world to climate change. Pacific island economies depend primarily on tourism, fisheries, forestry and agriculture, all of which are highly exposed and sensitive to sea level rise, changing ocean temperatures and acidity, increasing air temperatures, and shifting rainfall and storm patterns as a result of climate change. Nowhere in the world is adapting to climate change as urgent and central to safeguarding economies and cultures as it is in the Pacific. The Pacific Islands’ Framework for Action on Climate Change states that: “Reducing the risks associated with the impacts of extreme weather and climate variability…must be urgently addressed in order to contribute to improving livelihoods, economic well-being and health as well as maintaining biodiversity and culture”1.

Climate change is predicted to significantly affect communities of Pacific island nations, with impacts including sea level rise, bleaching of corals, loss of wetlands, flooding, erosion and endangerment of mangroves, among others2. Likely marine impacts include rising ocean temperatures, changes in the El Nino Southern Oscillation, ocean acidification, and damage to corals, which are expected to affect fish migration and abundance patterns and lead to a decline in fisheries production in tropical oceans and a

1 SPREP 2005

2 SIMCTA 2004, SMNREM 2005, UNFCCC 2011.

decline in coastal protective capacity of island nations3. Additionally, freshwater supplies in many Pacific Island countries are likely to be seriously compromised under most climate scenarios.

Because tourism is a leading economic activity for many Pacific islands, the adverse effects of climate change pose serious threats to economic development and the livelihoods of citizens4. Climate change impacts will likely affect tourism in the Pacific, such that community development and future economic growth will be highly undermined by beach erosion, damage to coastal infrastructure, bleaching of coral reefs, and reduced access to freshwater sources. Because environmental conditions and natural ecosystems are such key tourism resources in the Pacific, sea level rise, warming water temperatures, increased incidence of vector borne disease and increasing storm intensities all pose risks to tourism activities that are often based on coral reef exploration, boating, and fishing. Alternatively, improving natural resource management and fisheries within coastal zones have been shown to be effective ways to enhance adaptation and build resilience5.

Many Pacific islands depend on fisheries and agriculture as the main source of their income, foreign exchange, and economic livelihood. Changes in climate are likely to hurt agriculture and fisheries. In particular, sea level rise is likely to lead to saltwater inundation and soil salinization, on most islands, leading to soil fertility loss and declining yields. In terms of food security, many Pacific island communities derive the majority of their animal protein – often 80-90 percent – from fish, with a significant percentage coming from coral reefs6. Changes in ocean temperatures could cause damage to fish habitats and migratory shifts for certain fish species, leading to subsequent decreases in productivity. Consequently, socio-economic implications of climate change impacts are likely to exacerbate existing stresses on the fisheries, such as pollution and overfishing, ultimately leading to a decline in the abundance and health of fishery populations7. Alternatively, coastal zone management practices such as reef protection measures, marine breeding and restocking measures, and mangrove reforestation may reduce vulnerabilities of coastal zones and upland areas, resulting in positive spillover effects in the agriculture and fisheries sector and improved food security8.

While climate change exposure and sensitivity are generally high and adaptive capacity is generally low, there is significant variation across the island nations. The high volcanic islands (PNG, Solomon Islands, Vanuatu, Fiji), benefit from more fertile soil and freshwater resources, making agriculture and water more resilient than in low lying atolls only a few meters above sea level (RMI, Tuvalu, Kiribati). Atoll islands’ poor soils and limited surface and ground water resources are exceptionally exposed and sensitive to tidal flooding and sea level rise, and it is estimated that some of these islands will no longer be habitable at the end of this century.

3 Mimura 2007, FAO 2008, 4 OXFAM 2009, Hiller-Garvey, 2010, ESCAP 2010.

5 UNEP 2008.

6 FAO 2008, UNFCCC 2011

7 FAO 2008, IPCC 2007

8 FMFNP 2005, KMELAD 2007, PNGMEC 2000, SIMCTA 2004, SMNREM 2005.

C.2.b Gender Considerations of Climate Change In the Pacific

Neither the impact pathways nor the responses to climate change are gender-neutral and a gender-responsive approach will be required from the outset. Climate change will leave women especially vulnerable in many Pacific Island nations. Indeed, the vulnerability of women to the effects of climate change is largely due to their dependence on natural resources, their responsibility for water and food procurement, and their increased risk exposure during times of disasters and severe weather crises.

Women’s activities, such as collecting food, firewood, and drinking water will likely become more difficult as climate change continues to alter the natural environment9.

In 2008 the Pacific Islands Forum recognized that adaptation efforts “should address the gender specific impacts of climate change in the areas of energy, water, food security, agriculture and fisheries, biodiversity and eco-system services, health, industry, human settlements, disaster management and conflict and security” and supports the inclusion of gender in developing mitigation activities such as through improved access to resources including financial services, information and technology. 10 According to the Asia Development Bank, climate change will leave women at the greatest risk in many nations11.

In the Pacific, climate change has been shown to compound economic problems, especially in agriculture, the backbone of most Pacific Islands economies. Although women play a prominent role in agricultural production throughout the Pacific Island region, they have far less access to credit, agricultural inputs and training than their male counterparts, who frequently control more lucrative cash crop production1213 . While agricultural practices vary amongst communities and across islands, men tend to have greater access to agricultural land, training, credit and services than women, while the agricultural production that women and girls perform tends to be considered part of women’s household responsibilities14.

Gender equality and female empowerment are essential for achieving USAID’s development goals. The new USAID Gender Policy advances equality between females and males, and empowers women and girls to participate fully in and benefit from development, through the integration of gender in the entire project cycle -- from project planning and implementation to monitoring and evaluation. This integrated approach focuses on achieving three overarching outcomes: 1) Reducing gender disparities in access to, control over and benefit from resources, wealth, opportunities, and services – economic, social, political, and cultural; 2) Reducing gender based violence and mitigate its harmful effects on individuals and communities, so that all people can live healthy and productive lives; and 3) Increasing the capability of women and girls to realize their rights, determine their life outcomes, and influence decision making in households, communities, and societies.

FAO. (2010). Pacific Food Security Toolkit: Building Resilience to Climate Change: Root Crop and Fishery Production. Rome:

10 Hon. Amberoti Nikora (2008)

11Asia Development Bank 2010

12 Allen, B., 2009

13 Bourke, R., McGregor, A., Allen, M., Evans, B., Mullen, B., Pollard, A., Wairiu, M. and Zotalis, S. 2006

14 Ironmonger, D. and Hill, H. 1999

C.2.c Sustainability Considerations

Climate change is a fundamental challenge that threatens the sustainability and physical existence of many Pacific Island nations. Vulnerabilities are compounded by limited adaptive capacity, limited size, remoteness, proneness to natural disasters, and vulnerability to international shocks. However, while climate change is important in the long run, it is crucial to understand that there are a number of other development issues that affect human welfare more immediately in the Pacific Islands including hunger and malnutrition, poor health and disease, high rates of gender-based violence, and pressing local environmental issues such as the lack of access to sanitation services and freshwater. These immediate needs, in addition to widespread poverty, threaten the sustainability of any activity looking to address a long-term objective, such as reducing climate change vulnerability.

Many Pacific countries rely on subsistence agriculture for food security and fisheries for export income, both of which are vulnerable to external shocks such as natural disasters or fluctuating international food and fuel prices. Additionally, most Pacific Island countries are small and remote, with a high cost of doing business, weak private sectors, low economic growth and rapidly increasing populations.

When working on adaptation at the community-level in the Pacific, it is necessary to consider the wide array of social contexts and social protection systems, both informal and traditional, that exists in each country. Considering country-specific social protection systems in the Pacific is important for identifying groups most vulnerable to the long-term impacts of climate change and natural disasters. Additionally, preserving cultural diversity, cultural capital, and existing networks of relationships in the Pacific are key elements to the social sustainability of the activity and ultimately, community –wide adoption and scale-up of USAID- funded sub-grants.

Although the activity is open to nongovernmental entities operating nationally or internationally, building local capacity is crucial to achieving the permanent and transformational development results that the USG seeks to advance in the Pacific. The Pacific American Climate Fund will make available funds that help build the financial and managerial aspects of local partners.

Sustainability considerations will be important in sub-grant selection. Grant proposals under the Fund will be required to explain how funded activities will be sustainable beyond the life of the grant. The review process for sub-grants will prioritize funding for activities that have a strong potential for sustainability.

C.3 LINKS TO USAID’S REGIONAL STRATEGY AND RESULTS FRAMEWORK

The overall, long-term goal of U.S. development assistance in the Pacific region is to support more climate resilient and healthy populations. For purposes of this Activity the Pacific Island region refers to 12 Pacific Island nations: Federated States of Micronesia (FSM); Fiji; Kiribati; Nauru; Palau; Papua New Guinea (PNG); Republic of Marshall Islands (RMI); Samoa; Solomon Islands; Tonga; Tuvalu; and Vanuatu.

The activity will contribute to the Development Objective under the USAID/Pacific Islands draft Regional Development Cooperation Strategy: Negative Impacts of Climate Change Addressed. Specifically, this activity seeks to achieve Intermediate Result (IR) 1.1: Resilience in Communities Strengthened, by focusing on implementation of adaptation measures that benefit Pacific communities.

Figure 1: Draft USAID/ Pacific Islands Results Framework for the Regional Development Cooperation Strategy

The Pacific-American Climate Fund will make grants available, through which USAID will fund adaptation interventions that directly support USAID’s objective of strengthening the resilience of Pacific Island communities (IR 1.1). In the draft Regional Development Cooperation Strategy (RDCS), USAID Pacific

Islands aims to improve local adaptive capacity for climate change and reduce clime-related vulnerability in order to strengthen community resilience. The results framework for the activity is shown graphically in Figure 2.

Figure 2: Results Framework for the Pacific-American Climate Fund Activity

Additionally, the Pacific-American Climate Fund activity seeks to support the Adaptation Pillar and Strategic Objective 2 of USAID’s Global Climate Strategy. Strategic Objective 2 is to increase the resilience of people, places, and livelihoods through investments in climate change adaptation. In line with USAID’s Global Climate Strategy, this activity endeavors to strengthen climate resilience of Pacific Island communities, whom are dependent on natural resources for their livelihoods, food security, and economic development.

C.4 STATEMENT OF WORK

C.4.a Grant-Making Facility

The Contractor must establish a grant-making facility that will establish, manage, and administer grants to civil society on behalf of USAID. The Contractor must fulfill a range of grant-making and administrative functions. The Pacific-American Climate Fund encompasses four outputs for the Contractor:

Inputs

1) Financial

2) Organizational, financial and managerial capacity training

3) Information

4) Other resources (people, in-kind leveraging)

Outputs

1) Grant Facility established to manage and administer grants

2) Fund-supported adaptation measures implemented

3) Financial and managerial capacity of civil society partners (including local partners) enhanced

4) Lessons learned at the community level disseminated to stakeholders (including USG and neighboring communities)

Purpose

Community Adoption of Proven Adaptation Measures

Increased/Realized

Activity Goal

Climate Resilience in Communities Strengthened

(Links to Development Objective, Intermediate Result 1.1 of the Draft

Results Framework for the Pacific Islands)

1. Establish a grant-making facility that will fund proposals for adaptation measures to qualifying recipients in civil society (i.e., sub-grantees) through an open and competitive process.

2. Manage and administer the grant facility on behalf of USAID. Grant administration and management entails preparing and issuing solicitations, reviewing proposals, awarding grants, monitoring and evaluating grant performance, monitoring and auditing financial reports, ensuring due diligence and compliance of USAID rules and regulations, closing out grants, and reporting to USAID, among other tasks.

3. Provide resources as a component of grants for managerial and financial capacity-building to sub-grantees to ensure proper stewardship of funds and improve organizational capacity of civil society partners. Illustrative examples of managerial and financial capacity building include strengthening financial management and internal controls, tracking pipelines, training in conducting financial checks and audits, processing reimbursements, human resource organization, and grant proposal writing.

4. Capture and disseminate best practices, and lessons learned at the community level to all stakeholders, including neighboring communities, other donors, host governments, and USAID.

Communication and outreach to companion communities can promote community buy-in, scale-up, and increased adoption of proven adaptation measures, including new technologies or best practices. Success stories will also be used for U.S. Government (USG) publications such as the USAID Impact Blog, The Pacific Islands Newsletter, US press releases, among other USG outlets.

Subsequent to establishment of the grant-making facility is the administration, monitoring and auditing of sub-grants that provide seed funding to qualifying recipients through an open, competitive process.

The Contractor is responsible for: 1) developing procurements and solicitations; 2) receiving and logging proposals; 3) vetting potential sub-grant recipients; 4) ensuring that proper administrative and financial controls are in place to administer funds and ensuring compliance with applicable regulations; 5) coordinating a review and approval process with USAID’s contracting officer’s representative (COR) for this Activity; 6) working with winning sub-grantees and with USAID’s COR for the organization and implementation of appropriate signing ceremonies and events to publicize sub-grants; 7) monitoring and reporting (both internally to USAID and for public outreach) on grant implementation; 8) monitoring and auditing of financial expenditures, reports and other related documents to ensure adherence to USAID requirements and that grant monies are used for intended purpose; 9) capturing and disseminating best practices and lessons learned at the community level to all stakeholders, including the U.S. Government, 10) closing out sub-grants; and 11) providing capacity building support to sub-grantees where necessary and appropriate. On-going support to sub-grantees is crucial to enhancing impact.

The Contractor must be familiar with and enforce the rules and regulations governing USAID grant-making mechanisms, particularly as they apply to the solicitation and administration of sub-grants. The Contractor is not limited to the procurement mechanisms used by USAID, but may take into consideration the types of solicitation and procurement processes the agency employs (e.g. Requests for Application, Annual Program Statements (APSs), Fixed Obligation Grants (FOGs).15 The Contractor is responsible for ensuring that sub-grants issued within the Pacific-American Climate Fund are implemented such that they contribute to achieving USAID’s desired objectives of the activity.

15 USAID’s internal guidance, policy directives, required procedures, and standards for the award and administration of USAID grants and cooperative agreements can be found in the Automated Directives System (ADS) Chapter 303: Grants and Cooperative Agreements to Non- Governmental Organizations.

Additionally, the Contractor is responsible for ensuring that all USG and USAID guidelines and regulations related to the issuances of grants are followed and strictly adhered to, e.g., FAR, AIDAR, CFR, and ADS. Grants Under Contracts (GUCs) are detailed in ADS302.3.4.8. This section allows the Contractor to execute grants with non-governmental organizations (non-profits or for-profits). However, Contractor is not authorized to execute or administer cooperative agreements on USAID’s behalf.

The Contractor must have a strong grants management team and system, capable of administering multiple sub-awards, and either possessing or partnering with professionals that have the experience and knowledge necessary for ensuring due stewardship of USG funding by the Activity and its sub-grantees.

The Pacific-American Climate Fund team will receive the sub-applications and will convene the Grants Review Board (GRB). The selection process for winning sub-grants will be guided by USAID. The GRB will be chaired by the Contracting Officer Representative (COR), and will consist of designated members of USAID and USG representatives, as well as the Pacific-American Climate Fund Coordinator. GRB membership may include US Embassy participation and U.S. Embassies will be consulted during the GRB’s technical review of sub-grant proposals. The GRB, led by the COR will make final selection of winning applicants for sub-grants in all categories. The location of the Grants Review Board meeting may alternate between Manila and various Pacific Island Countries where there is a U.S. Embassy presence in the Pacific.

The Contractor is required to retain documentation of all awards and communications with sub-awardees. Additionally, the Contractor must document the source selection rationale and recommendation for all awards. While the Contractor is authorized to make awards in compliance with the USG regulations, the authority to use and approve Justifications for Exception to Competition (JEC) is not delegated to the Contractor. All JECs must be authorized by the CO and COR in writing. The Contractor is also required to document all JEC requests and (dis)approvals.

In addition, the Contractor must ensure that sub-grantees have their own structured, auditable systems and procedures of accounting and activity management. The Contractor is required to conduct pre-award surveys similar to those performed by USAID on new local partners.16 Based on the results of the pre-award survey, the Contractor must ensure that any gaps or weaknesses identified are addressed. In some cases, this will entail recommendations for managerial or financial capacity-building. For this purpose, the Contractor is encouraged to attribute a portion of the overall budget towards capacity building assistance for sub-grantees.

C.4.b Sub-Grants

The Contractor must develop a grant-making facility that will provide USAID a platform to fund qualified civil society sub-grantees for activities that lead to the desired results. Sub-grants will support civil society efforts to adapt to climate change in the areas of coastal zone, upland, and water resources management and livelihood development. Additionally, adaptation measures will likely include funding the implementation of proven best practices or technologies in these technical categories.

16 Guidance for pre-award surveys to be conducted on awards under contract is found in provisions in Part 9 (Attachment 1) of the Federal Acquisition Regulations (FAR): Section 9.106.1 –Conditions for pre-award surveys; Section 9.106-2 – Requests for pre-award surveys; and Section 9.106-4 – Reports.

USAID requires a minimum of 30% of the budget to be allocated towards sub-grants for adaptation interventions in civil society. Monitoring and Evaluation should account for 5% of the total budget.

$200,000 on the first year, and $100,000 per year for the subsequent years should be budgeted toward a Special Activities Fund, which will include costs for activities necessary to achieve the results of the Pacific-American Climate Fund.

Sub-granting could occur in any of 12 Pacific nations covered by USAID’s Regional Pacific Islands Office including: Fiji, Kiribati, Palau, Federated States of Micronesia, Marshall Islands, Nauru, Papua New Guinea, Samoa, Solomon Islands, Tonga, Tuvalu and Vanuatu.

Sub-grant sizes will vary according to three categories: 1) Category One: Up to $150,000 2) Category 2:

$150,000 - $1 million and 3) Category three: $1,000,001 - $3 million. Grants in Category 1 support civil society activities with a focus on directly meeting the adaptation needs of local communities, and are targeted to local organizations, nongovernmental organizations and institutions operating locally, community-based organizations, faith based organizations operating locally or regionally, universities, and local private sector organizations. Adaptation technologies, practices, or strategies in the Pacific tend to be low cost and affect consumers who are cash-flow sensitive, such that interventions less than $150,000, can go a long way in such conditions. Assistance under Size Category 1 may support occasional, sole-source granting opportunities, as approved by USAID, that satisfy a justification for exception from a competitive selection process, for reasoning similar to that considered acceptable by

USAID.17

Category 2 sub-grants, up to $1 million, are aimed towards established civil society organizations, which may be operating locally, nationally, regionally, or internationally, yet are focused on building climate resilience at the community-level. Category 3 is aimed toward established, financially-sound nongovernmental organizations that are operating nationally, regionally, or internationally, and have a proven track record of managing funds, in addition to having technical experience, and experience implementing sustainable development projects in the area of climate change adaptation. No more than one or two Category 3 sub-grants are anticipated under this contract. Grants in any category must target civil society at the community-level. Grants in any category may include financial and managerial capacity building support.

The Contractor must ensure that the time to apply for and report on the sub-grant is commensurate with the grant size/period. The Contractor, together with the USAID representative, will prepare the timeline for accepting, approving and granting of sub-grants, which will likely be bi-annually, starting from five months after award until September 2017. For that reason, the last issuance of sub-grants will have to take place well before the conclusion of this Contract, i.e., one year prior to agreement end.

Sub-grants shall be a minimum of one year, and shall not exceed four years.

In line with USAID’s Regional Development Cooperation Strategy, and in order to facilitate consistency in the technical evaluation of proposals, the Offeror will plan to solicit and oversee sub-grants in the following two technical categories: 1: Improved Coastal Zone, Upland, and Water Resource Management; 2: Livelihood Development and Income Diversification. Solicitations for each technical

17 USAID Automated Directives System 303.3.6.6 “Exceptions to Competition” indicates that within assistance grants and cooperative agreements, USAID may award noncompetitively when potential grantees have predominant capability, or if they are small grants (herein considered by awards with an estimated value each of $150,000 or less) with a term of no more than one year.

category will be open to fund grants in any grant size category: 1) Up to $150,000 2) $150,001 - $1 million and 3) $1,000,001 - $3 million.

Technical Category #1: Improved Coastal Zone, Upland, and Water Resource Management Grants

Sub-grant funding will target Coastal Zone Management (CZM), Upland, and Water Resource adaptation measures, technologies, and best practices that improve community resilience in managing coastal, marine and water resources and freshwater access. The Pacific-American Climate Fund will provide USAID a platform to work with civil society to advance adaptation measures and address these issues in communities.

Illustrative areas for sub-grant activities under category one include, but are not limited to: coastal, mangrove, and reef protection, conservation, and management, setback efforts, upland and ridge activities that impact coastal communities, tourism and eco-tourism activities that benefit coastal zone management, communication of climate change coastal zone management, implementation of pilot or proven technologies or best practices related to coastal zone or water management, freshwater access, flood control, water catchment management, water conservation, rainwater harvesting, soil conservation to reduce erosion and sedimentation, research, and generation of public awareness related to climate change adaptation and coastal zone or water management.

Anticipated outcome: At the end of the project period, USAID expects to see implementation of adaptation measures that improve coastal zone and water management and increase adaptive capacity.

Required and Illustrative Indicators for Coastal Zone, Upland, and Water Sub-Grants

The Contractor is required to use the following standard indicator: “Number of stakeholders with increased capacity to adapt to the impacts of climate…