RFP_Amendment_5.pdf

RFP Issuance Date : October 8, 2014 RFP Amendment 5 Date : December 19, 2014 RFP Closing Date : January 13, 2015 RFP Closing Time : 9:00am, Manila Time

REFERENCE: Request for Proposal (RFP) No. SOL‐492‐14‐000003 Strengthening Urban Resilience for Growth with Equity (SURGE)

SUBJECT: Amendment No. 5

The purpose of this amendment is to change the closing date of the RFP (highlighted in yellow).

Sincerely, (Sgd) Andrew Holland Supervisory Contracting Officer

SOLICITATION, OFFER AND AWARD 1. THIS CONTRACT IS A RATED ORDER

UNDER DPAS (15 CFR 7900)

RATING PAGE OF PAGES

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

CODE7. ISSUED BY 8. ADDRESS OFFER TO (If other than item 7)

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

SOLICITATION

9. Sealed offers in original and copies for furnishings the supplies or services in the Schedule will be received at the place specified in item 8, or if hand carried, in the depository located in until local time

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.

10. FOR

INFORMATION

CALL:

A. NAME B. TELEPHONE (NO COLLECT CALLS)

AREA CODE NUMBER EXT.

C. E-MAIL ADDRESS

11. TABLE OF CONTENTS

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

A B C D E F G H

I

J

K

L

M EVALUATION FACTORS FOR AWARD

INSTRS., CONDS., AND NOTICES TO OFFERORS

REPRESENTATIONS, CERTIFICATIONS AND OTHER

STATEMENTS OF OFFERORS

PART IV - REPRESENTATIONS AND INSTRUCTIONS

LIST OF ATTACHMENTS

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

CONTRACT CLAUSESSOLICITATION/CONTRACT FORM

SUPPLIES OR SERVICES AND PRICES/COSTS

DESCRIPTION/SPECS./WORK STATEMENT

PACKAGING AND MARKING

INSPECTION AND ACCEPTANCE

DELIVERIES OR PERFORMANCE

CONTRACT ADMINISTRATION DATA

SPECIAL CONTRACT REQUIREMENTS

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

OFFER (Must be fully completed by offeror)

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 set opposite each item, delivered at the designated point(s), within the time specified in the schedule.

13. DISCOUNT FOR PROMPT PAYMENT

(See Section I, Clause No. 52.232-8)

14. ACKNOWLEDGMENT OF AMENDMENTS

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

10 CALENDAR DAYS (%) 20 CALENDAR DAYS (%) 30 CALENDAR DAYS (%) CALENDAR DAYS(%)

DATEAMENDMENT NO.AMENDMENT NO. DATE

15A. NAME AND

ADDRESS

OF OFFER-

OR

CODE FACILITY 16. NAME AND THE TITLE OF PERSON AUTHORIZED TO SIGN OFFER

(Type or print)

15B. TELEPHONE NUMBER

AREA CODE NUMBER EXT.

15C. CHECK IF REMITTANCE ADDRESS IS

DIFFERENT FROM ABOVE - ENTER SUCH

ADDRESS IN SCHEDULE.

17. SIGNATURE 18. OFFER DATE

AWARD (To be completed by Government)

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

22. AUTHORITY FOR USING OTHER THAN FULL OPEN COMPETITION:

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

24. ADMINISTERED BY (If other than Item 7)

26. NAME OF CONTRACTING OFFICER (Type or print)

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

AUTHORIZED FOR LOCAL REPRODUCTION

Previous edition is unusable

23. SUBMIT INVOICES TO ADDRESS SHOWN IN

(4 copies unless otherwise specified)

25. PAYMENT WILL BE MADE BY

27. UNITED STATES OF AMERICA

(Signature of Contracting Officer)

28. AWARD DATE

CODE

ITEM

STANDARD FORM 33 (REV,. 9-97)

Prescribed by GSA - Far (48 CFR) 53.214 (c)

SEALED BID (IFB)

NEGOTIATED (RFP)

(Hour) (Date)

PART I - THE SCHEDULE PART II - CONTRACT CLAUSES

2 172

USAID/Philippines, U.S. Embassy Compound, 1201 Roxas Blvd., 1000 Ermita, Manila, Philippines

SOL-492-13-000003

See Section L 9AM Phil

50 140

10/08/2014

Regional Financial Services Center, USAID Philippines 3/F Annex 2 Bldg., U.S. Embassy Compound, 1201 Roxas Blvd., 1000 Ermita, Manila, Philippines

Andrew Holland, Supervisory Contracting Officer

1 (11/07/14) / 2 (11/14/14) 3 (11/26/14) / 4 (12/11/14)

5 12/19/2014

Strengthening Urban Resilience for Growth with Equity (SURGE) SOL‐492‐14‐000003 (Amendment No. 4)

LIST OF ACRONYMS

ADB Asian Development Bank

B‐LEADERS Building Low Emissions Alternatives to Develop Economic Resilience and Sustainability

Project

Be‐SECURE Water Security Resilient Economic Growth and Stability Project

CDCS Country Development Cooperation Strategy

CDI Cities Development Initiative

COMPETE Advancing Philippine Competitiveness Project

COR Contractor’s Official Representative

CSO Civil Society Organizations

DILG Department of Interior and Local Government

DPWH Department of Public Works and Highways

DOE Department of Energy

DOST Department of Science and Technology

DOT Department of Tourism

DOTC Department of Transport and Communications

DTI Department of Trade and Industry

EMMP Environmental Mitigation and Monitoring Plan

E‐PESO Electronic Payment Ecosystem Strengthened and Optimized for Growth

GDA Global Development Alliance

GDP Gross Development Product

GIS Geographical Information Systems

GIZ Deutsche Gesellschaft für Internationale Zusammenarbeit GmbH

GPH Government of the Philippines

HLURB Housing and Land Use Regulatory Board

IEE Initial Environmental Examination

IFC International Finance Corporation

INVEST Investment Enabling Environment Project

JCAP Joint Country Action Plan

LCP League of Cities of the Philippines

LGA Local Government Academy

LGC Local Government Code

LGU Local Government Unit

LRA Land Registration Authority

MCA Millennium Challenge Account

MCC Millennium Challenge Corporation

NCC National Competitiveness Commission

NEDA National Economic and Development Authority

NGO Non‐government Organizations

PFG Partnership for Growth

Strengthening Urban Resilience for Growth with Equity (SURGE) SOL‐492‐14‐000003 (Amendment No. 4)

PPP Public‐Private Partnership

PWS Performance Work Statement

SOO Statement of Objectives

STRIDE Science, Technology, Research and Innovation for Development Project

SURGE Strengthening Urban Resilience for Growth with Equity

UN United Nations

USAID United States Agency for International Development

USG United States Government

WB World Bank

Strengthening Urban Resilience for Growth with Equity (SURGE) SOL‐492‐14‐000003 (Amendment No. 4)

TABLE OF CONTENTS

SECTION B – SUPPLIES OR SERVICES AND PRICES/COSTS

B.1 PURPOSE

B.2 CONTRACT TYPE

B.3 ESTIMATED COST, FIXED FEE AND OBLIGATED AMOUNT

B.4 CONTRACT BUDGET AND CEILINGS

B.5 OTHER DIRECT COST LIMITATIONS UNDER CLIN 0002

B.6 LEVEL OF EFFORT

B.7 COST REIMBURSABLE

B.8 INDIRECT COST

B.9 CANCELLATION UNDER MULTI‐YEAR CONTRACTS (1997)

SECTION C – DESCRIPTION/STATEMENT OF OBJECTIVES

C.1 PURPOSE

C.2 CROSS‐CUTTING ISSUES

C.3 EXPECTED OUTCOMES

C.4 BACKGROUND

C.5 SCOPE

SECTION D – PACKAGING AND MARKING

D.1 AIDAR 752.7009 MARKING (JAN 1993)

D.2 BRANDING POLICY AND STRATEGY

D.3 APPROVAL OF CONTRACTOR BRANDING IMPLEMENTATION 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 INCORPORATED BY REFERENCE

F.2 PERIOD OF PERFORMANCE

F.3 PLACE OF PERFORMANCE

F.4 PERFORMANCE STANDARDS

F.5 MANAGEMENT OF CONTRACT

F.6 REPORTS AND OTHER DELIVERABLES

F.7 LANGUAGE OF REPORTS AND OTHER OUTPUTS

F.8 TECHNICAL DIRECTION AND DESIGNATION OF RESPONSIBLE USAID OFFICIALS

F.9 AIDAR 752.7005 SUBMISSION REQUIREMENTS FOR DEVELOPMENT EXPERIENCE DOCUMENTS

(JAN 2004)

F.10 EVALUATIONS

SECTION G – CONTRACT ADMINISTRATION DATA

G.1 ADMINISTRATIVE CONTRACTING OFFICE

G.2 CONTRACTING OFFICER

G.3 CONTRACTING OFFICER’S REPRESENTATIVE

G.4 CONTRACTOR’S POINT OF CONTACT

G.5 TECHNICAL DIRECTIONS/RELATIONSHIP WITH USAID

Strengthening Urban Resilience for Growth with Equity (SURGE) SOL‐492‐14‐000003 (Amendment No. 4)

G.6 ACCEPTANCE AND APPROVAL

G.7 PAYING OFFICE

G.8 AIDAR 752.7003 DOCUMENTATION FOR PAYMENT (NOV 1998)

G.9 ACCOUNTING AND APPROPRIATION DATA

G.10 FAR 52.232‐25 PROMPT PAYMENT (OCT 2008)

SECTION H – SPECIAL CONTRACT REQUIREMENTS

H.1 AUTHORIZED GEOGRAPHIC CODE

H.2 TITLE TO PROPERTY

H.3 REQUESTS FOR CONSENT TO SUBCONTRACT

H.4 KEY PERSONNEL

H.5 PRESS RELATIONS

H.6 ENVIRONMENTAL COMPLIANCE

H.7 REPORTING OF FOREIGN TAXES (JULY 2007)

H.8 CONTRACTOR’S STAFF SUPPORT AND ADMINISTRATIVE AND LOGISTICAL ARRANGEMENTS ... 53

H.9 AUTHORIZED WORK DAY/WEEK

H.10 ADDITIONAL REQUIREMENTS FOR PERSONNEL COMPENSATION

H.11 LANGUAGE REQUIREMENTS

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

PRIVATELY OWNED VEHICLES

H.13 GOVERNMENT FURNISHED FACILITIES OR PROPERTY

H.14 NONDISCRIMINATION (JUNE 2012)

H.15 USAID DISABILITY POLICY – ACQUISITION (DECEMBER 2004)

H.16 STANDARDS FOR ACCESSIBILITY FOR THE DISABLED IN USAID CONSTRUCTION CONTRACTS

(JULY 2007) (APPLICABLE TO CLIN 002)

H.17 LIMITATION ON SUBCONTRACTING TO NON‐LOCAL ENTITIES (MAY 2012)

H.18 USAID‐FINANCED THIRD‐PARTY WEBSITES (AUGUST 2013)

H.19 CONFERENCE PLANNING AND REQUIRED APPROVALS (AUGUST 2013)

H.20 VALUE ADDED TAX (VAT) AND CUSTOM DUTIES

H.21 CONFLICTS OF INTEREST

H.22 FOREIGN GOVERNMENT DELEGATIONS TO INTERNATIONAL CONFERENCES (JAN 2002)

H.23 EXECUTIVE ORDER ON TERRORISM FINANCING

H.24 REPRESENTATIONS AND CERTIFICATIONS

H.25 DISCLOSURE OF INFORMATION

H.26 DEFENSE BASE ACT (DBA) INSURANCE

H.27 COMPLIANCE WITH SECTION 508 OF THE REHABILITATION ACT OF 1973, AS AMENDED

H.28 AIDAR 752.204‐71 PARTNER VETTING (FEB 2012)

H.29 AIDAR 752.7032 INTERNATIONAL TRAVEL APPROVAL AND NOTIFICATION REQUIREMENTS

(APR 2014)

H.30 USAID IMPLEMENTING PARTNER NOTICES (IPN) PORTAL FOR ACQUISITION (JULY 2014)

H.31 ELECTRONIC PAYMENT SYSTEM

H.32 ORDERING SUPPLEMENTAL TECHNICAL ASSISTANCE (APPLICABLE TO CLIN 002)

SECTION I – CONTRACT CLAUSES

I.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE

I.2 FAR 52.252‐2 CLAUSES INCORPORATED BY REFERENCE (FEB 1998)

I.3 FAR 52.203‐13 CONTRACTOR CODE OF BUSINESS ETHICS AND CONDUCT (APR 2010)

Strengthening Urban Resilience for Growth with Equity (SURGE) SOL‐492‐14‐000003 (Amendment No. 4)

I.4 FAR 52.209‐9 UPDATES OF PUBLICLY AVAILABLE INFORMATION REGARDING RESPONSIBILITY

MATTERS (FEB 2012)

I.5 FAR 52.216‐7 ALLOWABLE COST AND PAYMENT (JUN 2013)

I.6 FAR 52.216‐18 ORDERING (OCT 1995) (applicable to CLIN 002 ONLY) I.7 FAR 52.216‐19 ORDER LIMITATIONS (OCT 1995) (applicable to CLIN 0002 ONLY) I.8 FAR 52.216‐20 REQUIREMENTS (OCT 1995) (applicable to CLIN 0002 ONLY) I.9 FAR 52.216‐22 INDEFINITE QUANTITY (OCT 1995) (applicable to CLIN 0002 only)

I.10 FAR 52.216‐24 LIMITATION OF GOVERNMENT LIABILITY (APR 1984)

I.11 FAR 52.217‐2 CANCELLATION UNDER MULTIYEAR CONTRACTS (OCT 1997)

I.12 FAR 52.222‐50 COMBATING TRAFFICKING IN PERSONS (FEB 2009) ALT. I (AUG 2007)

I.13 FAR 52.227‐23 RIGHTS TO PROPOSAL DATA (TECHNICAL) (JUN 1987)

I.14 FAR 52.229‐8 TAXES – FOREIGN COST‐REIMBURSEMENT CONTRACTS (MAR 1990)

I.15 FAR 52.232‐34 PAYMENT BY ELECTRONIC FUNDS TRANSFER – OTHER THAN SYSTEM FOR

AWARD MANAGEMENT (JUL 2013)

I.16 AIDAR 722.170 EMPLOYMENT OF THIRD COUNTRY NATIONALS (TCNs) AND COOPERATING

COUNTRY NATIONALS (CCNs)

I.17 AIDAR 752.225‐70 SOURCE AND NATIONALITY REQUIREMENTS (FEB 2012)

I.18 AIDAR 752.227‐14 RIGHTS IN DATA – GENERAL (OCT 2007)

I.19 AIDAR 752.231‐71 SALARY SUPPLEMENTS FOR HG EMPLOYEES (OCT 1998)

I.20 AIDAR 752.245‐71 TITLE TO AND CARE OF PROPERTY (APR 1984)

I.21 AIDAR 752.7003 DOCUMENTATION FOR PAYMENT (NOV 1998)

I.22 AIDAR 752.7007 PERSONNEL COMPENSATION (JUL 2007)

I.23 AIDAR 752.7025 APPROVALS (APR 1984)

I.24 AIDAR 752.7034 ACKNOWLEDGMENT AND DISCLAIMER (DEC 1991)

I.25 AIDAR 752.7013 CONTRACTOR‐MISSION RELATIONSHIPS (OCT 1989)

I.26 AIDAR 752.7018 HEALTH AND ACCIDENT COVERAGE FOR USAID PARTICIPANT TRAINEES (JAN

1999)

I.27 AIDAR 752.7019 PARTICIPANT TRAINING (JAN 1999)

I.28 AIDAR 752.7101 VOLUNTARY POPULATION PLANNING ACTIVITIES (JUNE 2008)

SECTION J – LIST OF ATTACHMENTS

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

RESPONDENTS

K.1 NOTICE LISTING SOLICITATION PROVISIONS INCORPORATED BY REFERENCE

K.2 FAR 52.204‐3 TAXPAYER IDENTIFICATION (JAN 2014)

K.3 FAR 52.204‐8 ANNUAL REPRESENTATIONS AND CERTIFICATIONS (JAN 2014)

K. 4 REPRESENTATION BY CORPORATION REGARDING A DELINQUENT TAX LIABILITY OR A FELONY

CRIMINAL CONVICTION (Deviation OAA‐DEV‐14‐02c)(August 2014)

K.5 INSURANCE ‐ IMMUNITY FROM TORT LIABILITY

K.6 FAR 52.209‐7 INFORMATION REGARDING RESPONSIBILITY MATTERS (JUL 2013)

K.7 AIDAR 752.226‐1 DETERMINATION OF STATUS AS DISADVANTAGED ENTERPRISE (APR 1991)

K.8 AGREEMENT ON, OR EXCEPTIONS TO, TERMS AND CONDITIONS

K.9 SIGNATURE

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

L.1 NOTICE LISTING SOLICITATION PROVISIONS INCORPORATED BY REFERENCE

Strengthening Urban Resilience for Growth with Equity (SURGE) SOL‐492‐14‐000003 (Amendment No. 4)

L.2 52.252‐1 SOLICITATION PROVISIONS INCORPORATED BY REFERENCE (FEB 1998)

L.3 FAR 52.215‐1 INSTRUCTIONS TO OFFERORS‐COMPETITIVE ACQUISITION (JAN 2004)

L.4 ADDITIONAL INSTRUCTIONS TO OFFERORS

L.5 OFFER EXPIRATION DATE

L.6 RFP QUESTIONS

L.7 NOTICE OF RFP CLOSING DATE AND TIME

L.8 GOVERNMENT OBLIGATION

L.9 INSTRUCTIONS FOR THE PREPARATION OF VOLUME I – TECHNICAL PROPOSAL/PERFORMANCE

WORK STATEMENT

L.10 INSTRUCTIONS FOR THE PREPARATION OF VOLUME II – COST PROPOSAL

L.11 INSTRUCTIONS FOR THE PREPARATION OF BRANDING IMPLEMENTATION AND MARKING

PLANS

L.12 AIDAR 752.204‐70 PARTNER VETTING PRE‐AWARD REQUIREMENTS (FEB 2012)

L.13 FAR 52.233‐2 SERVICE OF PROTEST (SEP 2006)

L.14 52.215‐22 LIMITATIONS ON PASS‐THROUGH CHARGES – IDENTIFICATION OF SUBCONTRACT

EFFORT

SECTION M – EVALUATION FACTORS FOR AWARD

M.1 GENERAL INFORMATION

M.2 TECHNICAL EVALUATION CRITERIA

M.3 COST OR PRICE EVALUATION

M.4 SOURCE SELECTION

ATTACHMENTS

ATTACHMENT J.1 LOCAL COMPENSATION POSITION DESCRIPTION GUIDELINES

Attachment J.1.1 – Local Compensation Plan USAID/Philippines

ATTACHMENT J.2 BRANDING IMPLEMENTATION PLAN AND MARKING PLAN FORMAT

ATTACHMENT J.3 USAID FORM 1420‐17 CONTRACTOR EMPLOYEE BIOGRAPHICAL DATA SHEET .. 160

ATTACHMENT J.4 PARTNER INFORMATION FORM

ATTACHMENT J.5 INITIAL ENVIRONMENTAL EXAMINATION

ATTACHMENT J.6 USAID PFG PROGRAMMING ACTIVITIES

ATTACHMENT J.7 RESULTS FRAMEWORK

Strengthening Urban Resilience for Growth with Equity (SURGE) SOL‐492‐14‐000003 (Amendment No. 4)

SECTION B – SUPPLIES OR SERVICES AND PRICES/COSTS

B.1 PURPOSE

The purpose of this contract is to provide services to support USAID’s “Strengthening Urban Resilience for Growth and Equity” as described in Section C of this RFP.

B.2 CONTRACT TYPE

This is a FAR 16.102(b) award consisting of a Cost reimbursement‐Completion (CLIN 0001) and an Indefinite Delivery/Indefinite Quantity (IDIQ) type contract (CLIN 0002) for supplemental technical assistance.

Under the Cost Reimbursement Completion portion of the contract (CLIN 0001), the contractor will furnish all personnel, materials, equipment, supplies, facilities, services (except expressly set forth in this contract as furnished by the Government) and perform all activities necessary for, or incidental to, the performance of work described in Section C.

Under the IDIQ portion of the contract (CLIN 0002), the contractor must furnish additional supplemental technical assistance arising out of or related to the completion portion of the contract as required by Government‐issued Task Orders. The services will be ordered in accordance with Section H.32 entitled, “Ordering Supplemental Technical Assistance (CLIN 0002) and the IDIQ clauses in Section I. As this CLIN is part of this contract and not a stand‐alone award, the government is not required to state or order any minimum number of person‐days as otherwise provided in the FAR 16.504(a)(1)). CLIN 0001 contained in this contract provides sufficient consideration to make this a legally binding contract, and the Government has no obligation to fund or place orders under CLIN 0002.

For the consideration set forth below, the Contractor will achieve the performance objectives and deliverables or outputs described in Section F and the Performance Management Plan, and otherwise comply with all contract requirements.

B.3 ESTIMATED COST, FIXED FEE AND OBLIGATED AMOUNT

The total estimated cost for CLIN0001 and CLIN0002 is approximately $42‐$50 million.

(a) Estimated Cost and Fixed Fee for CLIN 0001

The Total Estimated Cost plus fixed fee for this CLIN is (TBD). The Contractor will not be paid any sum in excess of the ceiling price (TBD) for this CLIN.

(b) Estimated Cost and Fixed Fee for CLIN 0002

The total estimated cost plus fixed fee of this CLIN is (TBD). The Contractor will not be paid any sum in excess of the ceiling price (TBD) for this CLIN.

Strengthening Urban Resilience for Growth with Equity (SURGE) SOL‐492‐14‐000003 (Amendment No. 4)

(c) Payment of Fixed Fee

The Contractor’s fixed fee is tied to the accomplishment of the deliverables: For CLIN 1, deliverables required in Section F of this contract and the Performance Management Plan; for CLIN 2, deliverables defined in each task order. Upon successful achievement of the deliverable, the Contractor must provide evidence of the achievement to the Contracting Officer’s Representative (COR) and the Contracting Officer (CO). Upon acceptance by USAID and receipt of approval from the Contracting Officer, the Contractor must submit an invoice for the amount of the fee associated with the deliverable.

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.

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 (to be completed at award) for reimbursement of dollar costs for individual line items of cost, and the fixed fee (if any):

CLIN 0001:

Total Costs Fixed Fee Total Estimated Cost Plus Fixed Fee

CLIN 0002:

Total Costs Fixed Fee Total Cost Plus Fixed Fee

Total Cost Plus Fixed for CLIN 0001 and CLIN 0002:

Strengthening Urban Resilience for Growth with Equity (SURGE) SOL‐492‐14‐000003 (Amendment No. 4)

B.5 OTHER DIRECT COST LIMITATIONS UNDER CLIN 0002

The estimated cost of this CLIN includes estimates for material, equipment, subcontracts, travel, and training required for performance of the total amount of work that can be ordered by the government under this CLIN during the life of this contract. The amount of Other Direct costs will not exceed $2,000,000.00.

B.6 LEVEL OF EFFORT

(a) In performing Government orders for Technical Assistance under CLIN 0002, the contractor is obligated to provide up to a maximum of 548 professional/technical person days for each year of the five years.

(b) The fee set forth in B.3.c is based upon furnishing the level of effort specified in paragraph A above. The total estimated cost and fixed fee will be established in the individual Government issued task orders and must not exceed the amounts set forth in section B.4 IDIQ CLIN 0002.

B.7 COST REIMBURSABLE

The U.S. dollar costs allowable will 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.8 INDIRECT COST

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

Pending establishment of revised provisional or final indirect cost rates, allowable indirect costs will be reimbursed on the basis of the following negotiated provisional or predetermined rates and the appropriate bases:

Description Rate Base Type Period

(TBD) (TBD) (TBD) (TBD) (TBD)

1/ Base of Application:

Type of Rate:

Period:

Source:

2/ Base of Application:

Type of Rate:

Period:

Source:

[To be filled in at award]

Strengthening Urban Resilience for Growth with Equity (SURGE) SOL‐492‐14‐000003 (Amendment No. 4)

B.9 CANCELLATION UNDER MULTI‐YEAR CONTRACTS (1997)

This contract is considered non‐severable, and is therefore a multi‐year contract as defined in FAR

17.103. Therefore this contract is subject to the requirements of FAR 17.106.

This is a CPFF type contract where the contractor is authorized to be reimbursed for all costs which are allowable in accordance with FAR 52.216‐7, “Allowable Costs and Payment”. Therefore, the contractor must not incur any costs which would not have been amortized over the life of the contract should the contract be cancelled in accordance with FAR 52.217‐2. Therefore, the cancellation cost for each cancellation date is as follows:

Cancellation Dates Total Cost Fixed Fee Total CPF Cumulative CPFF Contract Year 1 (2015) Contract Year 2: (2016) Contract Year 3: (2017) Contract Year 4: (2018)

[END OF SECTION B]

Strengthening Urban Resilience for Growth with Equity (SURGE) SOL‐492‐14‐000003 (Amendment No. 4)

SECTION C – DESCRIPTION/STATEMENT OF OBJECTIVES

C.1 PURPOSE

The purpose of the Statement of Objectives (SOO) is for the Contractor to implement Strengthening Urban Resilience for Growth with Equity (SURGE) activity in support of USAID/Philippines’ Cities Development Initiative (CDI). The CDI project is a crucial component of the broader Partnership for Growth (PFG), a White House initiated “whole government” partnership between the U.S. Government (USG) and the Government of the Philippines (GPH) whose aim is to shift the Philippines to a sustained and more inclusive growth trajectory on par with other high‐ performing emerging economies.1 The CDI is a “whole‐of‐Mission” project that engages a strategic array of USAID activities (see Attachment J.6) with the primary goal of promoting broad‐based and inclusive growth outside of Metro Manila through second tier cities2 that can serve as engines of economic growth. 3 As a major component of CDI, the primary goal of SURGE is to foster the development of conditions for broad‐based, inclusive and resilient economic growth for a critical mass of cities and surrounding areas outside Metro Manila.4

SURGE’s development hypothesis is that second‐tier cities serve as engines of growth and contribute to improved welfare of both urban and rural populations. USAID aims to promote more balanced and resilient urban growth, reduce economic disparities, and improve socio‐economic conditions for highly urbanized second‐tier cities and their surrounding areas. This activity will assist cities and adjacent areas plan effectively, guarantee basic public services, reduce business transaction costs, promote competitiveness, support sustainable development, and reduce disaster risks while ensuring inclusive and sustainable growth. Interventions will:

1. Improve local capacity in inclusive and resilient urban development;

2. Promote low‐emission local economic development strategies; and,

3. Expand economic connectivity and access between urban and rural areas

4. Strengthen multi‐sectoral capacity to ensure inclusive growth

2 Second‐tier cities here refer to first‐class highly urbanized cities outside the metropolitan cities of Metro Manila and Cebu, as defined by the

Local Government Code (LGC) of 1991.

Strengthening Urban Resilience for Growth with Equity (SURGE) SOL‐492‐14‐000003 (Amendment No. 4)

C.2 CROSS‐CUTTING ISSUES

The SURGE activity must possess special attributes that figure in much of what it pursues and accomplishes. As such it is important to bear these attributes in mind as design and implementing principles. These are the cross‐cutting issues set out below.

Resilience. The Contractor must approach urban planning and development with long‐term resilience as a fundamental element. As cities grow and expand, their development will directly address the challenges of climate change and disaster risk reduction. The lessons of Haiyan/Yolanda and other typhoons that have affected the Philippines in the last four years necessitate reducing a locality’s physical exposure and vulnerability to such risks. With increasing frequency of typhoons, extreme weather events, and flooding, cities are more in need of urban planning that integrates risk assessment in the land‐use planning and infrastructure design processes.

In pursuit of resilience as an important theme, Contractor must promote low‐emission urban development and greener cities. More efficient traffic patterns, land uses and urban management and service systems, for example, can lead to energy and resource savings. More environmentally friendly businesses can be encouraged. Engaging with civic groups and NGOs can lead to better public understanding of how to create living environments that are more sound environmentally as well as more resilient.

Knowledge building and sharing. The Contractor must build and expand expert knowledge resources on urban and regional development, such as the League of Cities of the Philippines’ knowledge management and exchange system for city managers. The Contractor must further develop these programs and expert technical capacity in urban planning and management, land economics, and project financing. This may include the development of comparable statistical data sets and other city‐ level measures that can serve as useful benchmarks to assess gaps in urban development. This capacity to develop and monitor city level data and statistics will provide the foundations for sustained analytical work on local economic development. Where relevant and applicable, Contractor will introduce the use of information technology (IT) integrated systems that effectively and efficiently facilitate planning, implementation, and coordination among different agencies in support of the Smarter Cities Initiative of the Philippine government.

Governance. Good governance practices must enter into almost every aspect of SURGE, including land use planning, land administration, urban economic and infrastructure development, financial management and rural‐urban linkages and the cross‐cutting issues above. As such the Contractor will:

(1) improve the national policy environment that impinges on local economic governance; (2) improve operations, policy, and program implementation linkages between local government offices, local field offices of national government agencies, and central government agencies; and (3) engage civic organizations, NGOs and universities to help counter changes in key officials which often results from the electoral cycle. In addition, good governance engages the public and key stakeholders, is transparent in its dealings and seeks inclusiveness in its policies and programs.

● Participation. In planning and decision‐making that has public impact, the Contractor must ensure that relevant stakeholders are included through public fora that ensure participation of the public, private sector, local chambers of commerce, NGOs and CSOs. Contractor must adopt

Strengthening Urban Resilience for Growth with Equity (SURGE) SOL‐492‐14‐000003 (Amendment No. 4) and promote a systematic basis for gaining public and stakeholder input that is meaningful but not intrusive or burdensome.

● Transparency. In a similar vein, the Contractor must encourage openness and transparency in local planning, governance and implementation. Given the nature of the CDI and SURGE as a key part of it, there will be excellent opportunities to promote transparency as a good governance practice.

● Inclusiveness. The PFG, of which CDI and SURGE are integral parts, calls for helping to put the Philippines on a sustained and more inclusive growth trajectory. This means both stimulating regional second tier cities outside of Metro Manila but also ensuring that these centers themselves extend development and opportunity into their lower income and under serviced areas as well as their rural hinterlands. The Contractor will address this issue through all relevant objectives.

C.3 EXPECTED OUTCOMES

CDI envisions that second‐tier cities will become economically thriving and resilient growth centers outside the urban core of Manila. As engines of growth, these cities will provide a better quality of life for residents and people in surrounding areas. By the end of SURGE, activities are expected to have contributed to higher levels of investment and employment for both the second‐tier and adjacent rural areas. SURGE is also expected to improve urban resilience by enhancing disaster risk preparedness, thereby ensuring sustainable growth. The activities to be implemented under SURGE will contribute to the following results:

Improved overall ranking in sub‐national competitiveness indices;

Increased investment inflows in the targeted second‐tier cities;

Increased per capita income in city and adjacent peri‐urban areas;

Increased new businesses registered;

New jobs created and employment rates improved;

Increased percentage of locally sourced or municipal revenue;

More efficient delivery of public services;

Reduced health (or social) inequities among the urban population;

Reduced number of steps, time, and cost of obtaining local permits;

Improved quality and application of comprehensive land use plans;

Improved integration of disaster risk reduction measures and low‐emission growth strategies in urban planning and infrastructure;

Increased access to sustainable water supply and sanitation services;

Greater share of public and private land parcels registered;

Improved coordination and data sharing between land administration bodies;

Reduced land disputes;

Reduced time and cost of transporting goods between city and peri‐urban areas; and

Increased local knowledge base and research capacity in broad based urban economic development

Strengthening Urban Resilience for Growth with Equity (SURGE) SOL‐492‐14‐000003 (Amendment No. 4)

C.4 BACKGROUND

The rationale for USAID’s Cities Development Initiative and SURGE center on the notion that an urban‐ led development strategy5 can address problems associated with economic concentration, uneven income distribution, and unemployment that afflict developing countries like the Philippines. In other words, urban‐led growth can help achieve and ensure inclusive, broad‐based, and resilient growth.

Despite an impressive GDP growth of around 7 percent in the last few years, national poverty levels in the Philippines have remained largely flat. Income distribution has also remained virtually unchanged despite the rise in GDP. The Philippines experiences the strange phenomena of “jobless growth” and the heavy concentration of economic development in Metro Manila and weak economic growth outside the capital region partly explains this occurrence.

Much of growth and economic opportunity in the Philippines is concentrated in and around Metro Manila and the adjacent regions where more than a quarter of the national population resides. About 62 percent of Philippine’s growth has been concentrated in e Metro Manila and the areas surrounding it: CALABARZON (four provinces to the southeast of Manila)6 and Central Luzon (seven provinces in the plains north of Manila). This rural‐urban imbalance is also noticeable in the incidence of poverty across the nation. Only the National Capital Region and two of its immediate neighbors had household poverty rates less than the national average while the rest of the country had poverty rates above the national average. .

There is a need for a development strategy that disperses jobs and income more widely across the Philippines. An urban‐led strategy can be an effective way to address poverty and imbalances in income distribution.7 Cities offer higher average standards of living than rural areas. In the Philippines, for example, poverty incidence in the urban areas (12.8%) is about half that of the country as a whole (26.5%).8 USAID’s urban rationale begins with the understanding that growth trajectories of nations are closely linked to dense human settlements, where cities act as engines of economic growth. Benefitting from physical proximity and increased density, cities become magnets for entrepreneurial talent and innovation, typically producing more economic output (as measured in GDP) than their share of the population.

While megacities (those with populations greater than 10 million, like Metro Manila) command much attention, smaller cities (with fewer than 1 million inhabitants) are the locus of much of the world’s urban growth and urban population concentration. Important contributors to national wealth and productivity, these so‐called second‐tier cities are an essential focus for development programming. Out of the Philippines’ 17 regions, for example, only five regional economies posted accelerated growth from 2010 to 2011 – none in Metro Manila.9 These emerging second‐tier cities outside the national

5 See USAID policy paper on “Sustainable Service Delivery in an Increasingly Urbanized World”, March 2013. Also see World Bank. 2010. “System of Cities: Harnessing Urbanization for Growth and Poverty Alleviation.”

6 CALABARZON includes the provinces of Calamba, Laguna, Batangas and Rizal just south of Metro Manila

7 Despite a continuous long‐term focus on rural‐led growth, rural poverty at 39.4% remains significantly higher than the national average

(26.5%), or more than three time that in urban areas. See World Bank. 2014. Country Partnership Strategy for the Republic of the Philippines FY2015‐2018. Washington, DC.

8 See Government of the Philippines, National Statistics Coordination Board at http://www.nscb.gov.ph.

Strengthening Urban Resilience for Growth with Equity (SURGE) SOL‐492‐14‐000003 (Amendment No. 4) capital region are potential growth hubs and can make substantial contributions to national economic development, given greater national policy support, tools, and investment.

At the early stages of their urbanization, second‐tier cities in the Philippines are small and have a much lower economic base, in comparison to Metro Manila. To ease the pressure on resources, infrastructure, and congestion of Metro Manila, developing the potential of second‐tier cities will be crucial to promote broad‐based and inclusive growth. Moreover, prioritizing urban development of second‐tier cities will help mitigate spatial and economic disparities in the Philippines.

The development of these second‐tier cities may create both positive and negative externalities, placing strains on the socio‐economic, fiscal, and urban infrastructure as well as directly impacting on both urban and rural populations. The socio‐economic requirements of human settlement, along with their associated government policies, become more complex as urbanization advances.10 The economic performance of cities depends on their institutional capacity to address the constraints to investment and maximize their city assets to be successful. Urbanization occurs at different rates in different regions, requiring tailored strategies, targeted priorities, and specific policies appropriate to their geographic scale. Various factors drive territorial performance, such as innovation, economic diversity, human capital, connectivity, quality of life, resilience to disasters, and governance capacity to manage urbanization. Because growth and its unintended consequences are complex and multi‐faceted, governance capacities and systems need to be strengthened to ensure social inclusion. Key stakeholders should collaborate to ensure healthy urbanization or at least mitigate health inequities that are especially pronounced in urban slums. If second‐tier cities are truly to become engines of growth and innovation, appropriate institutions have to be in place to mobilize resources and stakeholders in pursuit of urban growth. In addition, it is crucial to put in place policies that foster low‐emission economic development.

To ensure that these second‐tier cities are able to manage these challenges requires good development planning. Cities in the Philippines will have to contend with problems associated with growing urbanization, including congestion, overcrowding and increased demand for basic public services.

Urban planning requires city officials to properly assess not only the spatial requirements of their localities but also the long‐term economic development of their cities. City planners must assess the changing conditions of the areas and plan sustainable solutions that will address constrains to urban growth and, accordingly, take into account the most efficient use of land. Good plans harness not only the positive qualities of the city but also anticipate future demands, foster low‐emission growth strategies, take into account vulnerability to natural disasters, and establish appropriate institutional frameworks. Local governments also must have the ability to monitor and enforce plans subsequent to development, and any deviation from the plan must include public validation.

In particular, urbanization generates an increase in the demand for land and better land management.11 Land use has material impacts on housing and urban development, commercial and infrastructure development, and the management of the environment and utilization of its natural resources. Urban expansion and redevelopment demand clear regulations with respect to land‐use and zoning while at the same time protecting property rights. Unsustainable land use change and infrastructure planning

9 These regions include: Cagayan Valley, Caraga, SOCCSKSARGEN, Western Visayas, and MIMAROPA.

10 For a recent overview of trends in urbanization, see World Bank, World Development Report ‐ Reshaping Economic Geography, 2009.

11 World Bank. 2013. Planning, Connecting and Financing Cities Now: Priorities for City Leaders.

Strengthening Urban Resilience for Growth with Equity (SURGE) SOL‐492‐14‐000003 (Amendment No. 4) contribute to increased flood hazards and congestion. The lack of coordination and information sharing between land administration bodies also contributes to competing land claims and land uses. There is also need to strengthen property rights in cities to secure tenure, develop land markets, and strengthen the growth on‐farm and non‐farm enterprises. This can be supported through streamlined land registration processes, electronic land registries; increased cadastral surveys; improved capacity in land dispute resolution under local land management offices and councils; and greater integration of land information from the registry, cadaster, tax and planning offices.

The Local Government Code mandates the formulation of local development plans which vary widely in quality, usefulness, and public input. Moreover, local planning process remains chaotic, with numerous and often conflicting planning requirements of national line agencies.12 There are often disconnects between local and national plans that hamper implementation. The Philippines lacks a national planning system to allocate and regulate land‐use and address conflicts over land. The country also suffers from under‐developed spatial strategies for the optimal use of land.13 In many instances, physical plans have proven unrealistic and difficult to implement.14 There is a need to strengthen the national planning process that includes a national land use plan that effectively allocates, regulates, and manages the uses of land and address land conflicts. There also exists a need to improve the linkages and coordination between local government offices, local field offices of national government agencies and central government agencies on land matters.

Urbanization also requires massive financing, which highlights the importance of mobilizing local revenues and availing credit through municipal bonds to underwrite the massive capital requirements of urban development. Many cities continue to depend heavily on central transfers, through the Internal Revenue Allotment and other forms of inter‐government transfers. To finance their own development, local governments need to expand their own‐sourced revenue and exert greater effort in raising funds through more effective local revenue administration. As cities begin to spend more to finance urban development, there is also a need to instill greater transparency and accountability in the areas of budgeting, accounting and procurement. Inefficient and non‐transparent spending practices weaken a city’s ability to finance basic public services and other development programs. All too often, a disconnect separates developed plans from budgetary allocations. Poor medium‐term budget planning, non‐transparent procurement practices, weak internal controls and audit at local levels can undermine urban growth.

Decentralization in the Philippines has forced local governments to take more responsibility for designing their own economic development strategies, usually in partnership with the private sector.

Cities must be more actively engaged in development and promotional activities aimed at attracting more investment that will generate new business and jobs for their constituents. The local business environment must be more open, predictable, competitive, and inviting to regional and international investments. Unfortunately, cumbersome business procedures and inefficient regulations have dampened local private investment. Rules and regulations related to registering or renewing a business, dealing with business inspections, and obtaining construction permits increase the cost and time of doing business in the city. Difficulties in registering a property can also impede investment and hamper the ability to turn land into productive capital. Many cities rank poorly in the ease of registering a

12 See Government of the Philippines, Rationalizing the Local Planning System, 2008.

13 See GIZ, SIMPLE: Sustainable Integrated Management and Planning for LGU Ecosystems, 2012.

14 Government of the Philippines, National Framework for Physical Planning 2001‐2030.

Strengthening Urban Resilience for Growth with Equity (SURGE) SOL‐492‐14‐000003 (Amendment No. 4) property in the International Finance Corporation’s (IFC’s) Sub‐National Doing Business report. The time and cost of registering property in the Philippines is lengthy, inefficient, complicated, and not affordable.

A city’s investment potential partly depends on the local provision of basic infrastructure and services.

As part of resilient and risk‐based urban planning and local economic development, the provision of critical local infrastructure, such as municipal roads, water and sanitation, drainage and flood control systems, ports and transport facilities, public markets, consolidation centers, and other commercial facilities, can facilitate business networks and linkages to regional markets. The quality, reliability and stability of infrastructure directly impacts on regional competitiveness and the ability of cities to attract more investment. The Philippines’ economic growth has been concentrated largely in Metro Manila and surrounding areas partly due to its archipelagic geography and highly fragmented structure for spatial and infrastructure planning. Infrastructure is important in reinforcing rural‐urban linkages that connect cities with the rural‐farming sector and other regions in order to disperse geographically the benefits and sources of growth.

Urban resilience will be an important and critical component of USAID’s CDI strategy to ensure sustainable urban growth. The Philippines is inherently prone to natural disasters and other natural hazards such as earthquakes, volcanic eruptions, typhoons, and flooding. With nearly half of the country’s population living in dense urban areas, cities are particularly at risk. With increasing frequency of typhoons, extreme weather events, and flooding as a result of climate change, urban planning will consider more than ever integrating risk assessment in the land‐use planning and infrastructure design processes.

Local government units should work to identify and formalize government‐owned land, both to aid in planning for resettlement options in the event of natural disasters as well as to ensure the most efficient use of space. This approach enhances understanding of the planning environment by identifying and knowing the hydrologic and climate change hazards, vulnerabilities of exposed population including their ability to cope during times of disaster. A risk and climate change‐sensitive city plan accompanied by hazard maps using Geographic Information System (GIS) tools, for example, can provide realistic projections of land demand and supply for various land uses where development can be discouraged in hazard prone areas. It can also increase awareness of decision‐makers in setting up goals, objectives and targets on reduced loss of life and property. Aside from the risk‐ and climate change‐sensitive Comprehensive Land Use Plans, cities are also mandated to prepare zoning ordinances, development plans, investment programs and budgets that reduce disaster vulnerabilities caused by climate change.

Second‐tier cities could benefit from the integrated ecosystem management approach in the planning process and improve their ability to adapt to the impacts of climate variability and change. Increasing resilience in peri‐urban and rural areas should also ensure protection of livelihoods that provide sources of food, goods, and raw materials that spur shared economic growth in the urban as well as in rural areas. This may involve the increased use of climate data in decision‐making process, adoption of appropriate adaptation tools and technologies, increased access to weather index‐based insurance, and development of climate‐resilient small‐scale storage facilities.

The economic disparities between urban and rural areas are a significant development problem. This rural‐urban imbalance can be addressed by pursuing an urban development strategy that shares the benefits of growth with the rural population. The growth of second‐tier cities should stress the interdependence and the need for balanced and mutually supportive development between rural and urban areas. The promotion of cities as engines of growth can be a vehicle for inclusive growth by highlighting the reciprocal exchange between urban markets and rural producers. Strengthening urban‐

Strengthening Urban Resilience for Growth with Equity (SURGE) SOL‐492‐14‐000003 (Amendment No. 4) rural linkages involves reducing policy barriers and other transaction costs, expanding connectivity and increasing the accessibility of rural producers to urban markets and basic services, and encouraging the development of metropolitan agglomerations that improve center‐periphery planning and coordination.

Second‐tier cities can serve as economic growth hubs that link up and expand the economic exchanges between urban markets and rural producers. Improving access to infrastructure, transport services, and information and telecommunication services will allow rural populations to benefit from urban growth without necessarily encouraging in‐city migration, which in turn reduces the vulnerability of migrants that may live in high risk areas. Linkages that encourage the flow of goods, services, and information should improve access to markets, employment and other income earning opportunities for both urban and rural populations.

Finally, any successful urban development strategy needs to consider the particular political and governance conditions of each locality. Each city presents unique institutional and policy challenges and opportunities that reflect the particular norms, actors, vested interests, and incentives operating in that locality.