SOL-514-16-000024_(01)_-_Request_for_Proposals_Highlighted_Changes.pdf

Issuance Date: August 31, 2016 Questions Due Date: September 14, 2016 Questions Due Time: 3:00 PM, Bogota time Closing Date: October 18, 2016 Closing Time: 3:00 PM, Bogota time

Subject: Request for Proposals (RFP) No. SOL-514-16-000024, “USAID Páramos and Forests”

The United States Government, represented by the United States Agency for International Development (USAID)/Colombia, is seeking proposals from U.S. or non-U.S., non-profit or for-profit organizations, to provide services to support Colombian efforts towards achieving its sustainable landscape climate change mitigation goals in a post-conflict scenario, with particular emphasis on REDD+, results-based conservation and capacity development for measuring, reporting and verification (MRV).

Authorized Principal Geographic Code for this solicitation is 937 – Default. NAICS Code for this solicitation is 541990 – All Other Professional, Scientific and Technical Services.

USAID anticipates awarding a single Hybrid - Cost plus Fixed Fee (CPFF) Completion - Indefinite Delivery, Indefinite Quantity Contract (IDIQ) contract. The Total Estimated Cost (TEC) plus fixed fee for services under this contract (CLIN 0001) and (CLIN 0002), is estimated to fall within the range of $38 million and $40 million. This procurement will be conducted under Full and Open Competition procedures, pursuant to Part 15 of the Federal Acquisition Regulation (FAR) (48 CFR Chapter 1). Please refer to Section L for information regarding proposal requirements. Offerors should take into account the expected delivery time required by the proposal transmission method they choose and they are responsible for ensuring proposals are received at USAID by the due date and time as specified in Section L. Failure to comply with the submission date and time will deem any submission unacceptable and it will not be reviewed or evaluated. Faxed proposals are not acceptable, nor will they be reviewed or evaluated.

Section L of the RFP sets forth all instructions for the preparation and submission of required proposal contents, including critical dates/times for the submission of questions, and the proposal submission closing date and time. Section M states the criteria by which proposals will be evaluated. Oral explanations or instructions given before award of the contract will not be binding and will not constitute a formal amendment of the RFP.

This RFP in no way obligates USAID to award a contract or the task order portion nor does it commit USAID to pay any cost incurred in the preparation and submission of a proposal. Award of a Contract under this RFP is subject to availability of funds and other internal USAID approvals.

USAID expects that offerors will have equal access to all local organizations needed to implement this contract and strongly discourages exclusivity agreements with local organizations.

SOL-514-16-000024 – PARAMOS & FORESTS TABLE OF CONTENTS

TABLE OF CONTENTS

PART I – THE SCHEDULE

SECTION B - SUPPLIES OR SERVICES AND PRICES/COSTS

B.1. PURPOSE

B.2. CONTRACT TYPE AND SERVICES

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

B.4. CONTRACT BUDGET AND CEILINGS

B.5. INDIRECT COST

B.6. CEILINGS ON INDIRECT COST RATES

B.7. COST REIMBURSABLE

B.8. MULTI-YEAR CONTRACT

SECTION C – STATEMENT OF WORK

C.1. TITLE OF ACTIVITY

C.2. PURPOSE

C.3. BACKGROUND

C.4. STATEMENT OF WORK

C.5. GEOGRAPHIC FOCUS

C.6. SPECIAL CONSIDERATIONS

SECTION D– PACKAGING AND MARKING

D.1. AIDAR 752.7009 MARKING (JAN 1993)

D.2. BRANDING IMPLEMENTATION PLAN 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. KEY PERSONNEL AND NON-KEY PERSONNEL

F.6. REPORTS AND OTHER DELIVERABLES

F.7. KEY PERSONNEL AND SALARIES

F.8. AUTHORIZED WORK DAY/WEEK

F.9. IDIQ SUPPLEMENTAL TECHNICAL ASSISTANCE ORDERING PROCEDURES

(APPLICABLE TO CLIN 0002)

SECTION G– CONTRACT ADMINISTRATION DATA

G.1. NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE

G.2. CONTRACTING OFFICER AND CONTRACTING OFFICER’S REPRESENTATIVE

G.3. CONTRACTOR’S PRIMARY POINT-OF CONTACT

G.4. PAYING OFFICE

G.5. ACCOUNTING AND APPROPRIATION DATA

G.6. CONTRACTOR’S PAYMENT ADDRESS

G.7. ACCEPTANCE AND APPROVAL

G.8. CONTRACTING OFFICER'S AUTHORITY

G.9. TECHNICAL DIRECTIONS / RELATIONSHIP WITH USAID

SECTION H - SPECIAL CONTRACT REQUIREMENTS

H.1. USAID-FINANCED THIRD-PARTY WEB SITES (AUGUST 2013)

H.2. SUBMISSION OF DATASETS TO THE DEVELOPMENT DATA LIBRARY (DDL)

(OCTOBER 2014)

H.3. GRANTS UNDER CONTRACTS (GUCS)

H.4. USAID DISABILITY POLICY - ACQUISITION (DEC 2004)

H.5. ADDITIONAL REQUIREMENTS FOR PERSONNEL COMPENSATION

H.6. AUTHORIZED GEOGRAPHIC CODE

H.7. DEFENSE BASE ACT INSURANCE

H.8. LOGISTIC SUPPORT

H.9. LANGUAGE REQUIREMENTS

H.10. EXECUTIVE ORDER -- CLIMATE-RESILIENT INTERNATIONAL DEVELOPMENT

H.11. EXECUTIVE ORDER ON TERRORISM FINANCING

H.12. FOREIGN GOVERNMENT DELEGATIONS TO INTERNATIONAL CONFERENCES

H.13. PROHIBITION OF ASSISTANCE TO DRUG TRAFFICKERS

H.14. NONEXPENDABLE PROPERTY PURCHASES AND INFORMATION TECHNOLOGY

RESOURCES

H.15. CLOUD COMPUTING (MAY 2016)

H.16. ELECTRONIC AND INFORMATION TECHNOLOGY ACCESSIBILITY (MAY 2016)

H.17. SECTION 508 OF THE REHAB. ACT OF 1978 AND FAC 97-27 “ELECTRONIC IT

ACCOUNTABILITY”

H.18. CONFIDENTIALITY AND OWNERSHIP OF INTELLECTUAL PROPERTY

H.19. CONTRACTOR’S STAFF SUPPORT AND ADMINISTRATIVE AND LOGISTICAL

ARRANGEMENTS

H.20. ELECTRONIC PAYMENTS SYSTEM

H.21. EMPLOYEE COMPENSATION LIMITATIONS UNDER THE CONTRACT AND

SUBCONTRACTS

H.22. ENVIRONMENTAL COMPLIANCE

H.23. EXCHANGE VISITORS AND TRAINING

H.24. GOVERNMENT FURNISHED FACILITIES OR PROPERTY

H.25. HOMELAND SECURITY PRESIDENTIAL DIRECTIVE-12 (HSPD-12) (SEPTEMBER 2006)

H.26. INHERENTLY GOVERNMENTAL AND CLOSELY ASSOCIATED FUNCTIONS

H.27. PERFORMANCE MANAGEMENT INFORMATION SYSTEM

H.28. PRESS RELATIONS

H.29. REQUESTS FOR CONSENT TO SUBCONTRACT

H.30. SUBCONTRACTING PLAN

H.31. SECURITY CONDITIONS

H.32. SECURITY SERVICES AND LIFE SUPPORT

H.33. SECURITY REPORTING

H.34. TITLE TO AND CARE OF PROPERTY

H.35. USAID LEGAL AND POLICY CONSIDERATIONS

H.36. ORGANIZATIONAL CONFLICT OF INTEREST

H.37. USAID/COLOMBIA COMMUNICATIONS AND OUTREACH REQUIREMENTS

PART II – CONTRACT CLAUSES

SECTION I – CONTRACT CLAUSES

I.1. NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE

I.2. FAR 52.203-99, PROHIBITION ON CONTRACTING WITH ENTITIES THAT REQUIRE

CERTAIN INTERNAL CONFIDENTIALITY AGREEMENTS (APR 2015) (DEVIATION 2015-02) ... 85

I.3. 52.204-1 APPROVAL OF CONTRACT (DEC 1989)

I.4. FAR 52.216-18 ORDERING (OCT 1995) (APPLICABLE TO CLIN 002 ONLY)

I.5. FAR 52.216-22 INDEFINITE QUANTITY (OCT 1995) (APPLICABLE TO CLIN 0002

ONLY)

I.6. FAR 52.216-24 LIMITATION OF GOVERNMENT LIABILITY (APR 1984)

I.7. FAR 52.229-8 TAXES – FOREIGN COST-REIMBURSEMENT CONTRACTS (MAR 1990) ... 87

I.8. FAR 52.244-2 SUBCONTRACTS (OCT 2010)

I.9. FAR 52.244-2 SUBCONTRACTS (OCT 2010) - ALTERNATE I (JUN 2007)

I.10. FAR 52.247-1 COMMERCIAL BILL OF LADING NOTATIONS. (FEB 2006)

I.11. FAR 52.247-67 SUBMISSION OF TRANSPORTATION DOCUMENTS FOR AUDIT. (FEB

2006) 91

I.12. 52.252-2 CLAUSES INCORPORATED BY REFERENCE (FEB 1998)

I.13. 52.252-4 ALTERATIONS IN CONTRACT (APR 1984)

I.14. 752.245-70 GOVERNMENT PROPERTY - USAID REPORTING REQUIREMENTS. (JUL

1997) 92

I.15. 752.252-2 AIDAR CLAUSES INCORPORATED BY REFERENCE (MAR 2015)

I.16. CHILD SAFEGUARDING STANDARDS (AUG. 2016)

PART III – DOCUMENTS AND OTHER ATTACHMENTS

SECTION J – LIST OF DOCUMENTS, EXHIBITS AND OTHER ATTACHMENTS

USEFUL LINKS

PART IV – REPRESENTATION AND INSTRUCTIONS

SECTION K– REPRESENTATIONS, CERTIFICATIONS AND OTHER STATEMENTS OF

OFFERORS

K.1. NOTICE LISTING SOLICITATION PROVISIONS INCORPORATED BY REFERENCE 96

K.2. 52.203-98 PROHIBITION ON CONTRACTING WITH ENTITIES THAT REQUIRE

CERTAIN INTERNAL CONFIDENTIALITY AGREEMENTS - REPRESENTATION (APR 2015)

(DEVIATION 2015-02)

K.3. 52.204-8 ANNUAL REPRESENTATIONS AND CERTIFICATIONS. (APR 2016)

K.4. 52.209-5 CERTIFICATION REGARDING RESPONSIBILITY MATTERS. (OCT 2015) .. 100

K.5. KEY INDIVIDUAL CERTIFICATION NARCOTICS OFFENSES AND DRUG

TRAFFICKING

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

K.7. 52.209-11 REPRESENTATION BY CORPORATIONS REGARDING DELINQUENT TAX

LIABILITY OR A FELONY CONVICTION UNDER ANY FEDERAL LAW (Feb 2016)

K.8. SIGNATURE

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

RESPONDENTS

L.1. NOTICE LISTING SOLICITATION PROVISIONS INCORPORATED BY REFERENCE

L.2. 52.216-1 TYPE OF CONTRACT. (APR 1984)

L.3. 52.233-2 SERVICE OF PROTEST. (SEP 2006)

L.4. 52.252-1 SOLICITATION PROVISIONS INCORPORATED BY REFERENCE (FEB 1998)

L.5. 52.252-3 ALTERATIONS IN SOLICITATION (APR 1984)

L.6. 752.252-1 AIDAR SOLICITATION PROVISIONS INCORPORATED BY REFERENCE

(MAR 2015)

L.7. GENERAL INSTRUCTIONS

L.8. DELIVERY INSTRUCTIONS

L.9. INSTRUCTIONS FOR THE PREPARATION OF THE TECHNICAL PROPOSAL

L.10. INSTRUCTIONS FOR THE PREPARATION OF THE COST/BUSINESS PROPOSAL (SEE

SECTION M.3.)

Part 1 - Standard Form (SF) 33

Part 2 – Proposed Costs/Prices

A. CLIN 0001

Part 3 - Representations, Certifications, and Other Statements of Offerors

Part 4 - Policies and Procedures

Part 5 - Information Concerning Work-Day, Work-Week, and Paid Absences

Part 6 - Subcontracting Plan and Small Business Concerns

Part 7 - Joint Venture Information

Part 8 - Evidence of Responsibility

Part 9 - Information to support Consent to Subcontractors

Part 10 - Letters of Commitment (Major Subcontractors)

Part 11 - Legislative Reporting Information

B. CLIN 0002

SECTION M - EVALUATION FACTORS FOR AWARD

M.1. GENERAL INFORMATION

M.2. TECHNICAL EVALUATION

M.3. COST EVALUATION (See Section L.10.)

M.4. DETERMINATION OF THE COMPETITIVE RANGE

M.5. SOURCE SELECTION

ATTACHMENTS AND OTHER DOCUMENTS

ATTACHMENT 1 - PAST PERFORMANCE INFORMATION

ATTACHMENT 2 - BRANDING STRATEGY

ATTACHMENT 3 - BRANDING IMPLEMENTATION PLAN AND MARKING

ATTACHMENT 4 – BUDGET TEMPLATE

ATTACHMENT 5 -CERTIFICATION REGARDING TRAFFICKING IN PERSONS COMPLIANCE

PLAN

ATTACHMENT 6 - SMALL BUSINESS SUBCONTRACTING PLAN

ATTACHMENT 7 - USAID FORM 1420-17-CONTRACTOR BIOGRAPHICAL DATA SHEET

ATTACHMENT 8 – SF-LLL - DISCLOSURE OF LOBBYING ACTIVITIES

ATTACHMENT 9 – ACRONYM LIST

ATTACHMENT 10 - U.S. MISSION COLOMBIA LOCAL COMPENSATION PLAN SALARY

RANGES

SOL-514-16-000024 – PARAMOS & FORESTS SECTION B

PART I – THE SCHEDULE

SECTION B - SUPPLIES OR SERVICES AND PRICES/COSTS

B.1. PURPOSE

The purpose of this contract is to provide the services described in the Statement of Work (SOW) to implement the “USAID Páramos & Forests” Activity (henceforth ‘the Activity’), as described in Section C.

B.2. CONTRACT TYPE AND SERVICES

This is a FAR 16.102(b) combination award consisting of a Cost Plus Fixed Fee Completion (CLIN 0001) and a single-award Indefinite Delivery/Indefinite Quantity (IDIQ) type contract (CLIN 0002) for the purpose of providing supplemental technical assistance.

Under the Cost Plus Fixed Fee Completion portion of the contract (CLIN 0001) (90% of the total estimated cost), the contractor must furnish all personnel, materials, equipment, supplies, facilities, services (except as 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 and other sections of the contract not specifically identified under CLIN 0002 as the IDIQ Supplemental Technical Assistance.

Under the IDIQ portion of the contract (CLIN 0002) (10% of the total estimated cost), 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 must be ordered in accordance with Section F.9 entitled, “IDIQ Supplemental Technical Assistance Ordering Procedures (Applicable to 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 FAR 16.504(a)(1).

The other CLIN (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 order under CLIN 0002.

For the consideration set forth below, the Contractor must achieve the performance objectives and deliverables or outputs described in Section C and F and the performance standards specified in Section F, and comply with all contract requirements.

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

The total estimated cost (TEC) for CLIN 0001 and CLIN 0002 is [TBD].

B.3.1 Estimated Cost and Fixed Fee for CLIN 0001

The Total Estimated Cost for this CLIN is $_____, exclusive of fixed fee, if any. The fixed fee, if any is $_____. The estimated cost plus fixed fee, if any is $_____.

B.3.2 Estimated Cost and Fixed Fee for CLIN 0002

The total estimated ceiling cost of this CLIN is $_____, exclusive of the associated maximum fee of $_____. The total estimated ceiling cost and maximum fee is $_____.

a. 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 ordered Other Direct Costs will not exceed $1,000,000.00.

b. Level-of-Effort Under CLIN 0002

A. In performing Government orders for Technical Assistance under this CLIN, the Contractor is obligated to provide up to a maximum of 4,000 person-days.

B. The fee set forth in B.3.2 is based upon furnishing the level-of-effort specified in paragraph A. The total estimated cost and fixed fee will be established in the individual Government-issued Task Orders and shall not exceed the amounts set forth in Section B.3.2., IDIQ CLIN 0002.

B.3.3 Payment of Fixed Fee

CLIN 1: Payment of fixed fee will be made upon receipt of a proper invoice and must directly correspond to the percentage of allowable costs being paid. In accordance with FAR 52-216-8, Fixed Fee, the CO will withhold 15% of the total fee or $100,000, whichever is less until the required award conditions under the reference clause have been met.

CLIN 2: Payment of the corresponding fixed fee for each Task Order will be negotiated at the Task Order level; made upon receipt of a proper invoice, and must directly correspond to the percentage of allowable costs being paid and the level of effort being furnished. In no event, the fixed fee of the Task Orders under CLIN 0002 can exceed the negotiated fee under CLIN 0001.

B.3.4 Amount Obligated

Within the estimated cost plus fixed fee (if any) specified for CLIN 0001, the amount currently obligated and available for reimbursement of allowable costs incurred by the Contractor (and payment of fee, if any) for performance hereunder is TBD (only applies to CLIN 0001). The Contractor must not exceed the aforesaid obligated amount nor will the United States Government (USG) be responsible for costs incurred should the Contractor do so.

Funds obligated hereunder are anticipated to be sufficient through [TBD].

B.4. CONTRACT BUDGET AND CEILINGS

CLIN 0001

Activity Costs $TBD

Grants Under Contract $6,000,000 Total Costs $TBD Fixed Fee $TBD Total Estimated Cost Plus Fixed Fee $TBD

CLIN 0002

Activity Costs $TBD Maximum Fee $TBD Total Ceiling $TBD

Total Estimated Cost Plus Fixed Fee CLIN 1 and CLIN 2: $TBD

B.5. INDIRECT COST

The contract clause entitled “Allowable Cost and Payment (JUN 2013)”, FAR Subpart 52.216- 7, specifies that the indirect cost rates must be established for each of the Contractor’s accounting periods which apply to this contract. Pending establishment of revised provisional or final indirect cost rates, allowable indirect costs should be reimbursed on the basis of the following negotiated provisional or predetermined rates and the appropriate bases:

Description Rate Base Type Period

[TBD] [TBD] 1/ 1/ 1/

[TBD] [TBD] 2/ 2/ 2/

[TBD] [TBD] 3/ 3/ 3/

1/ Base of Application:

Type of Rate:

Period:

2/ Base of Application:

Type of Rate:

Period:

3/ Base of Application:

Type of Rate:

Period:

B.6. CEILINGS ON INDIRECT COST RATES

(a) For each of the Contractor’s accounting periods during the term of this contract, the parties agree as follows:

(1) The distribution base for establishment of final overhead rates is __________________.

(2) The distribution base for establishment of final G&A rates is _____________________.

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

(c) Reimbursement for indirect costs shall be at final negotiated rates, but not in excess of the following ceiling rates for each fiscal year:

Indirect Cost Type FY 17 FY 18 FY19 FY 20 FY 21 (Contractor’s FY)

1. [TBD] ________ _____ _____ _____ _____ _____

2. [TBD] ________ _____ _____ _____ _____ _____

3. [TBD] ________ _____ _____ _____ _____ _____

(d) The government is not obligated to pay any additional amount on account of indirect costs above the ceiling rates established in the contract. This advance understanding will not change any monetary ceiling, cost limitation, or obligation established in the contract.

B.7. COST REIMBURSABLE

Allowable costs are limited to reasonable, allocable and necessary costs determined in accordance with FAR 52.216-7, Allowable Cost and Payment, FAR 52.216-8, Fixed Fee, if applicable, and AIDAR 752.7003, Documentation for Payment.

B.8. MULTI-YEAR CONTRACT

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.

Cancellation Dates:

Contract Year 2: Date______ Amount: $______ Contract Year 3: Date______ Amount: $______ Contract Year 4: Date______ Amount: $______ Contract Year 5: Date______ Amount: $______

Cancellation Ceiling: This is a CPFF Completion type contract plus an IDIQ portion 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 will not incur any costs which would have been amortized over the life of the contract should the contract be cancelled in accordance with FAR 52.217-2. The cancellation ceiling for each cancellation date is indicated above.

[END OF SECTION B]

SOL-514-16-000024 – PARAMOS & FORESTS SECTION C

SECTION C – STATEMENT OF WORK

C.1. TITLE OF ACTIVITY

USAID Páramos and Forests (hereafter also referred to as the “Activity”).

C.2. PURPOSE

The purpose of the USAID Páramos and Forests Activity is to support Colombia in the implementation of its Agriculture, Forestry and Other Land Uses (AFOLU) related climate change mitigation goals, while strengthening community-based sustainable development initiatives in the context of a post peace agreement scenario, henceforth referred to as the ‘post-conflict’. The Activity must i) support the sustainable implementation of the existing USAID BioREDD+ /REDD+1 portfolio (8 projects), ii) deliver tangible and sustainable results on the implementation of a results-based payment system for reduced carbon emissions in strategic high mountain ecosystems (i.e. Páramo, high Andean forest (bosque andino) and wetlands); and

iii) provide targeted institutional and policy support to the Government of Colombia (GOC) towards achieving its climate change goals in the AFOLU sector. Climate change synergies between mitigation and adaptation efforts are encouraged.

C.3. BACKGROUND

The planet’s average surface temperature has risen about 1.0 degree Celsius since the late-19th century, a change largely driven by increased carbon dioxide and other human-made emissions into the atmosphere. Most of the warming occurred in the past 35 years, with 15 of the 16 warmest years on record occurring since 2001. Last year was the first time the global average temperatures were 1 degree Celsius or more above the 1880-1899 average. This change has huge consequences for the global economy; and in a country like Colombia, with an economy highly dependent on natural resources, the consequences can be felt in the natural, social and economic systems. Climate change’s influence on Colombia’s development calls for early actions to reduce human, economic and ecosystem vulnerability by adopting a development approach that makes economic growth and environmental protection compatible objectives.

Climate change is widely recognized as the most fundamental and defining challenge of our generation. The average temperature of the earth's surface is projected to increase by up to 4° C by the year 2100 in absence of impactful actions for climate change mitigation and adaptation.

Climate change is inextricably linked to poverty and food security in a number of ways. Long-term changes in temperature and precipitation are likely to manifest themselves in changes to ecosystems and related environmental services. The high Andean-páramo ecosystems contain important wetland systems, which have high ecological, social and cultural value. Their sponge-like soils, uniquely adapted vegetation, wet grasslands, lagoons and lakes capture and retain water, acting as a flood buffer in the rainy season, and a steady source of water in the dry season. Decline in quality and quantity of these ecosystems affects the output of several sectors in the economy, like agriculture, industry and energy, the Economic growth rate, and

1 REDD+: Reduced Emissions from Deforestation and forest Degradation, the (+) signals the role of conservation, sustainable management of forests, and enhancement of forest carbon stocks in developing countries.

livelihoods linked to these systems, leading to negative economic and long-term human development impacts. The National Planning Department (DNP) has estimated that the Colombian Gross Domestic Product (GDP) could be diminished by 0.49% every year due to climate change2.

The recent Paris agreement coming out of the United Nations Framework Convention on Climate Change’s (UNFCCC) twenty-first Conference of the Parties (COP 21) aims to curb global warming to less than 2C (3.6F) by the end of the century. Although the agreement will not enter into force until 2020, parties are strongly encouraged to take action to implement and support the decisions already agreed to under the agreement, including: policy approaches and positive incentives for activities relating to reducing emissions from deforestation and forest degradation (i.e. results-based payments), and the role of conservation, sustainable management of forests and enhancement of forest carbon stocks in developing countries. It also recognizes the importance of adequate and predictable financial resources, while reaffirming the importance of non-carbon benefits associated with such approaches; encouraging the coordination of support from, inter-alia, public and private, bilateral and multilateral sources3.

Colombia is a country of contrasts and contradictions. With its 1,141,748 km2 and its estimated

48.4 million inhabitants, Colombia has a per capita GDP of $8,8584 and is prepared to join the Organization for Economic Co-operation and Development (OECD) in the near future. Despite this, in 2014 Colombia for the third year in a row reported a Gini coefficient of 0.53. With this, according the United Nations Development Program (UNDP) (2015), Colombia ranked 14th on the list of countries with the worst inequality.

Under the recently concluded UNFCCC Paris Agreement, Colombia has pledged to reduce 20% of its projected GHG (Greenhouse Gas) emissions by 2030. Colombia stated in its INDC (Intended Nationally Determined Contribution) that this target could be increased to up to 30% with adequate international financial support. Even 20% is a very ambitious figure, requiring changes in the country's development model without harming economic growth or deflecting efforts from national priorities such as the peace process and overcoming poverty.

Colombia has been a strong advocate calling for international action on climate change and is committed to take action nationally despite the fact that only 0.4% of the global carbon emissions come from Colombia. The National Development Plan (NDP) 2014-2018, Chapter 10, lays out the main elements of the Colombian green growth strategy and calls on different ministries to prepare sectoral climate change mitigation and adaptation plans, develop the national plan on payment for environmental services (Objective 2, article 184) and on the Ministry of Environment and Sustainable Development (MADS), to prepare and implement the national REDD+ strategy (ENREDD). The NDP also calls for the protection and conservation of territories and ecosystems for climate change mitigation and adaptation and includes the establishment of REDD+ mechanisms in indigenous territories.

Colombia is in the final phase of the peace talks with the FARC EP, (Fuerzas Armadas Revolucionarias de Colombia -Ejército del Pueblo/ Revolutionary Armed Forces of Colombia-

2 DNP-BID (2014). Impactos Económicos del Cambio Climático en Colombia – Síntesis. Bogotá, Colombia.

3 http://unfccc.int/resource/docs/2015/cop21/eng/l09r01.pdf 4 "World Economic Outlook Database: Colombia". International Monetary Fund. October 2014.

People's Army) a guerrilla organization who has been fighting the Colombian military forces for over 50 years, and is also beginning negotiations with the ELN (Ejército de Liberación Nacional/ National Liberation Army), a similar armed group. While a successful peace agreement will be a historic accomplishment, the end of this long-standing conflict may also bring environmental deterioration, which in turn could become a driver of social conflict in the mid-to-long term. The fact that more than 90% of the municipalities affected by the conflict have strategic ecosystems for biodiversity conservation, and the provision of environmental services under some kind of environmental protection category indicates the high degree of correlation between the “peace geography” and environmentally sustainable development challenges. Careful land use planning and effective implementation of environmental regulations is needed to avoid creating or amplifying already existing environmental conflicts, caused by poor water supply management, illegal mining, illegal logging, soil erosion and expansion of the agricultural frontier.5

C.4. STATEMENT OF WORK

C.4.1. CLIN 0001 (90% of the Requirement)

a) Goals and objectives

Through the Activity, USAID aims to support Colombian efforts towards achieving its sustainable landscape climate change mitigation goals in a post-conflict scenario, with particular emphasis on REDD+, results-based conservation and capacity development for measuring, reporting and verification (MRV), as described below.

The following are the objectives of the Activity:

1. Reduced carbon emissions from deforestation and forest degradation in the Pacific region, generating sustainable income revenue streams for Afro-Colombian and indigenous communities that are part of the USAID/BioREDD+ portfolio.

2. Reduced greenhouse gas (GHG) emissions from high Andean ecosystems (páramo, high altitude wetlands and high Andean forest (bosque andino), while improving water management of these ecosystems and reducing related land use conflicts.

USAID/Colombia’s theory of change linking the Activity objectives with the intended outcome is that if verified conservation is an economic Activity that generates income and services for the forest communities in the Pacific and high Andean ecosystems, and if their low emissions productive activities also generate income by being part of a value chain with private sector participation and financing, then GHG emissions from their forest and agricultural activities will be reduced over time and contribute towards global climate change mitigation.

5 http://www.co.undp.org/content/colombia/es/home/library/environment_energy/los-desa os-ambientales-de-la-paz-/

The results of the Activity implementation will be measured according to the specific guidance provided in the GCC Indicator Handbook6. At minimum, this Activity is expected to achieve the following:

(1) At least and after the second year 2.5 million/year of Greenhouse Gas (GHG) emissions, estimated in metric tons of CO2e, reduced, sequestered, and/or avoided as a result of USG assistance (#4.8.7);

(2) At least $40 million of investment mobilized (in USD) for climate change as supported by USG assistance (#4.8.2-10) by the end of the Activity;

(3) At least 500 farmers who have participated in multi-stakeholder decision making processes and have applied improved technologies or management practices for integrated water resources management as a result of USG assistance.

The Activity will build on USAID’s environment work and coordinate with other USG initiatives and donors. The Activity will work closely with Ministerio de Ambiente y Desarrollo Sostenible / Ministry of Environment and Sustainable Development (MADS), Ministerio de Agricultura y Desarrollo Rural/Ministry of Agriculture and Rural Development (MADR), the Humboldt Institute, Department of National Planning (DNP), IDEAM, IGAC, financial institutions, the private sector, other donors, local governments and rural communities to promote sustainable rural development in harmony with the natural environment while contributing to Colombia’s climate change goals.

Objective 1: Reduced carbon emissions from deforestation and forest degradation in the Pacific region, generating sustainable income revenue streams for Afro-Colombian and indigenous communities that are part of the USAID/BioREDD+ portfolio.

Between 2013 and 2014, the poverty level in the Chocó department increased by 2.8 %, to include a total of 65.9% of the population in 20147. According to IDEAM (Colombian Hydrology, Meteorology and Environmental Studies Institute), deforestation in this department increased from 5,028 hectares in 2013, to 10,3008 hectares in 2014 (or 7.38% of the total for Colombia). Those figures give an indication of how this biodiversity hotspot region, where 79% of the population has unsatisfied basic needs, struggles to find a development path for its population without negative social, economic and environmental impacts.

Successful implementation of actions to reduce emissions from deforestation and forest degradation (REDD+), sustainable management of forests, and increased forest carbon stocks will help mitigate climate change and can produce additional benefits, particularly for climate change adaptation and also aiding poverty alleviation, biodiversity conservation, and diversification of livelihoods.

The climate change mitigation component of the USAID/BioREDD+ (Biodiversity — Reduced Emissions from Deforestation and Forest Degradation) activity supported 19 communities in the preparation of 8 REDD+ projects. BioREDD+ used a participatory process for the preparation of the REDD+ projects, together with innovative approaches to measure carbon

6 See GCC Indicator Handbook for more details on the standard indicators: http://pdf.usaid.gov/pdf_docs/PA00K4VT.pdf 7 DANE. Pobreza Monetaria y Multidimensional- 2014 8 IDEAM. Tasa de Deforestación en Colombia para 2014.

biomass and forest degradation. These REDD+ projects were validated under VCS (Voluntary Carbon Standard) and CCB (Climate, Community & Biodiversity) standards at the Gold level in March 2015, using the VCS approved VM006 methodology, which was updated with a tool to track forest degradation. In addition to the carbon component, the projects include productive agricultural activities9/10.

USAID/Colombia has a cooperative agreement with Fondo Accion (http://www.fondoaccion.org/en)11, to serve as “bridge financing” to support the implementation of the 8 REDD+ projects in preparation for the first verification and continue working on productive activities as well as on capacity development at the community level.

This Cooperative Agreement will continue to support these specific value chains (acai, cacao, achiote (annatto) and coconut) and strengthen community organizations and their alliances with the private sector, aiming at leaving an established sustainable operation by the end of 2017.

Under objective number one, the Contractor is required to partner with a “REDD+ project developer” with proven prior experience and expertise in REDD+ project verification under VCS and CCB standards12 and a successful track record of selling VCUs in the voluntary carbon market at scale. As part of the sustainability strategy, it is expected that after year 5, the developer, –with the full agreement and sign off of the communities- take over the management of the projects for the remaining 20 years of REDD+ project life.

USAID/Colombia considers the achievement of the following specifications, at a minimum, as critical for attaining this Objective:

Required Result 1.1: Successful implementation, marketing and sales of the BioREDD+ portfolio (8 REDD+ projects) by a qualified and demonstrably experienced project developer. Successful verification of emission reductions on a yearly basis (or every two years-subject to market conditions)

Selling carbon credits (VCUs) at scale is usually a lengthy process, with different people and/or organizations involved. The Colombia BioREDD+ portfolio is estimated to generate around 2 million carbon credits every year. In order to have verified carbon credits to sell, the Contractor must implement the REDD+ Project Documents (PDs). The Contractor must build on the work done by BioREDD+ and Fondo Accion. The “REDD+ project developer” is required to use the VCS approved methodology VM006 and the degradation tool developed under BioREDD+ for verification of the BioREDD+ portfolio.

Selling carbon credits require legal structures for and benefit sharing mechanisms. This also requires communities on the ground with strong capacities; knowledge and skills to manage and

9 The “PDs” (Project Description documents) for the BioREDD+ projects can be found on the VCS website here:

http://www.vcsprojectdatabase.org/#/pipeline. The business plans prepared for the productive activities can be found at the USAID DEC Development experience Clearing house, https://dec.usaid.gov/).

10 The business plans prepared for the productive activities can be found at the USAID DEC Development Experience Clearing House, https://dec.usaid.gov/).

11 Fondo Accion is a Colombian private non-profit organization; created in the year 2000 within the framework of the Bilateral Agreement of the Initiative for the Americas. This agreement was signed between the governments of the United States of America and the Republic of Colombia which allowed the set-up of the Account of the Americas through a debt-for-nature swap.

12 Useful background on VCS methodologies and REDD+ developers can be found in the “REDD+ developers guidebook” at http://www.conservation.org/publications/Documents/CI_REDD-Developers-Guidebook.pdf implement their REDD+ project. The Activity will support investment on social services and local governance, to strengthen long-term sustainability of the forest conservation initiatives (REDD+ projects).

Given the current weakness and future uncertainty regarding the global voluntary carbon credit market, the Contractor, in partnership with its selected “REDD+ project developer,” must creatively diversify the sources of income (carbon, agricultural products, non-timber forest products, and payment for environmental services) in a way that will finance project activities for the 8 REDD+ projects, even after the end of USAID support. Required result 1.2 focuses on the productive component of the REDD+ projects. These revenues will finance project activities (social impact, environmental services, sustainable products, etc.) and will be the source of funds upon which to further leverage additional creative financing arrangements (forward purchases, upfront payments, options, etc.)

Required Result 1.2: At least 4 value chains (annatto, cocoa, acai, and coconut) with their four stages –production and harvesting; packaging and transport; industrial processing;

and marketing and sales- financed by a combination of public and private finance.

As part of the REDD+ projects preparation, BioREDD+ prepared business plans for agricultural products with a positive impact on forest conservation, as a complementary strategy to generate both community income and employment. The Activity will provide support to the implementation of such business plans.

Value chains with a market-based approach were designed for açai, cacao, annatto (achiote), and coconut. In all cases, value chains have been designed in partnership with an agro industrial company, as an anchor private sector partner. The proposed approach in the business plans, states that the private sector partner will own at least 51% of the partnership, while the communities must not own more than 49%. This is to ensure that the party who best knows the industrial and commercialization business makes business decisions. Under the business plans, the REDD+ communities will be providers of raw material to the processing plants, but at the same time, they will own equity in the processing plants, via carbon credits, agricultural production, credit or other options. The Activity will support the development and strengthening of these and other such alliances between the REDD+ communities and the private sector. Although the above mentioned four value chains have received support and are currently more developed, the Contractor is required to remain open to new value chain opportunities with non-timber forest products or tourism that could be implemented at scale with positive impact on the 8 REDD+ project communities and beyond under this Activity.

USAID will approve the engagement in new value chains. The Contractor must implement the productive component of the REDD+ projects as “green businesses.”13 In all cases, productive activities must be in line with what is proposed in REDD+ projects (i.e. PDs).

Currently, USAID, the National Consolidation Unit (UACT) and Fondo Acción are working with investment funds (Acumen, Bamboo Finance, Root Capital, Terra Bella Colombia) to structure the financing for these projects with an approach that will benefit both communities

13 https://www.minambiente.gov.co/index.php/ambientes-y-desarrollos-sostenibles/negocios-verdes-y-sostenibles and generate profit for the private sector. The Contractor must follow up on these developments.

The ultimate aim of this component of the Activity is to improve livelihoods and increase carbon stocks of the REDD+ territories of participating communities and phase out USAID participation in the implementation of the 8 REDD+ projects, while leaving them as self-sustaining projects with private sector engagement and support.

Required Result 1.3: Support the design and implementation of the national REDD+ strategy and its Monitoring, Reporting and Verification (MRV) component.

Activities under this result area will provide targeted and results-based assistance to the GOC and in particular to the MADS in the preparation and implementation of the national REDD+ strategy, ENREDD+, and must be implemented in the framework of the SISCLIMA (Sistema Nacional de Cambio Climático/ National system for Climate Change). This will include support for improved governance as well as the development of informational tools that will allow the GOC to track trends in emissions; supporting REDD+ and other forest carbon work at the national and sub-national levels.

The Ministry of Environment has already prepared a draft REDD+ strategy that needs to be finalized and implemented. The Activity will strengthen IDEAM and MADS capacity to use forest and terrestrial carbon monitoring methodologies and technologies as part of the MRV system.

The Contractor must work closely with the GOC (MADS, IDEAM, IGAC, Humboldt institute, Regional Environmental Authorities -CARs-) and relevant civil society organizations to implement the national REDD+ strategy to reduce and sequester GHG emissions on the ground.

The Activity will place special emphasis on community-level REDD+ work in forest lands that are administered by ethnic groups (Indigenous, Afro-Colombian).

Objective 2: Reduced greenhouse gas (GHG) emissions from high Andean ecosystems:

Páramo, high altitude wetlands and high Andean forest (bosque andino), while improving water management and reducing land use-related conflicts.

The high Andean ecosystems are considered to be strategic ecosystems due to the environmental services they provide, mainly water provision and regulation and as carbon sinks, both in vegetation and soil (peatlands). They are also important for biodiversity conservation. According to IDEAM14, páramos cover 1.7% of the land surface of Colombia and provide fresh water for cities where 70% of the population lives. Generally speaking, the high Andean Forest (bosque andino) starts at around 2,800 meters above sea level. Notwithstanding all the environmental services these mountain ecosystems provide, land-use conflicts are common. Páramos have been threatened for many years by a large number of human and natural factors. Some of these factors are agricultural encroachment, uncontrolled fires, overgrazing, ill-planned regional development projects, global warming and mining. Reduced carbon emissions and increased carbon stocks in these ecosystems, can come from changes in

14 IDEAM, IAvH, Invemar, SINCHI e IIAP Tomo 2: Estado de la Biodiversidad, de los ecosistemas continentales, marinos, costeros y avances en el conocimiento. Informe del Estado del Medio Ambiente y los Recursos Naturales Renovables 2011.Bogot., D. C., 2013. 268 pag.

land use and management practices.

Article 5 of the recent COP 21 “Paris declaration15” states that: “Parties are encouraged to take action to implement and support, including through results-based payments, the existing framework as set out in related guidance and decisions already agreed under the Convention for: policy approaches and positive incentives for activities relating to reducing emissions from deforestation and forest degradation, and the role of conservation, sustainable management of forests and enhancement of forest carbon stocks in developing countries; and alternative policy approaches, such as joint mitigation and adaptation approaches for the integral and sustainable management of forests, while reaffirming the importance of incentivizing, as appropriate, non-carbon benefits associated with such approaches.”

Along the same lines, the 2014-2018 Colombian NDP (National Development Plan) (Articles 172,173 and 174), calls for action on wetlands, páramos and strategic ecosystems for conservation or for the implementation of payments for environmental services (PES)16. This policy guidance strengthens the framework for PES. DNP, in coordination with MADS, is preparing a Consejo Nacional de Política Económica y Social (CONPES) document on PES, proposing institutional and financial arrangements for PES.

Under this component, USAID seeks to trigger sustainable change in land use and agricultural practices. To this end, “payment for results”17 mechanism can include a variety of instruments, like incentives and payment for environmental services. Payments for results are not necessarily needed indefinitely; therefore these mechanisms need to consider how payments can be used as transitional finance, and be integrated into broader low emissions development methodologies that include forest conservation and enhancement. It is expected at least a 20% emissions reduction by the end of the Activity life cycle in the targeted ecosystems, contributing towards the INDC made by Colombia at the Paris COP in 2015.

To address the current development challenges, creative ways to address development finance are now needed. A country like Colombia needs foreign aid less and less as incomes rise and the economy grows. Private investment and finance tools are key to support Colombia in reaching its development goals, while addressing climate change challenges. This means shifting from a donor-recipient aid relationship to win-win partnerships involving public and private actors.

Generating new or supporting existing results-based economic opportunities with a value chain approach in communities living in or around high Andean ecosystems (páramo buffer zone) is a key component of the Activity. These economic opportunities will also be approached within the framework of the program “green and sustainable business” led by MADS. Coordination and collaboration is also expected with the MADR and its Rural and Agricultural Planning Unit (UPRA). Synergies and leverage from other private/GOC sources are encouraged. The Activity must concentrate its efforts in geographical areas that i) make sense for efficiency and economy

15 https://unfccc.int/resource/docs/2015/cop21/eng/l09r01.pdf 16 PES is defined as a voluntary transaction for a well-defined ecological service, with at least one buyer, at least one provider, and based on the condition that the buyer(s) only pay if the provider(s) continue to deliver the defined ecosystem service over time. For additional information please go to http://www.unep.org/pdf/PaymentsForEcosystemServices_en.pdf 17 See this resource on US experience on Results Based Finance: http://www.fcmcglobal.org/documents/Results_Based_Finance.pdf of scale and ii) deliver results at scale, so it can actually show concrete impact on climate change mitigation and water management at the end of the Activity iii) reduce land-use related conflicts while having a positive impact in mitigating climate change (reduced deforestation and natural ecosystems transformation).

USAID/Colombia considers the achievement of the following specifications, at a minimum, as critical for attaining this Objective:

Required Result 2.1: A results-based mechanism for GHG emission reduction in high Andean ecosystems (high Andean forest (bosque andino), Páramo and high altitude wetlands) designed and implemented generating economic benefits for communities, through market-based opportunities.

Communities living in or around strategic ecosystems18 tend to respond positively when offered support to design and implement a viable alternative livelihood that protects the natural environment. Results-based mechanisms usually are tailor-made to address a specific set of conditions. Results can be measured in more than one complementary way but the ultimate interest is to track the GHG emission reductions or carbon sequestration resulting from these mechanisms. When feasible, these emission reductions could be reported as a contribution to the INDC made by the GOC at the Paris COP 21, but not necessarily transacted in voluntary or compliance carbon markets.

MADS is currently in the process of defining the boundaries of the páramo ecosystem which have been protected under Colombian law. This delimitation process has been a source of conflict, when existing economic activities essentially become illegal under the newly established protection category.

The contractor will design and implement a results-based mechanism for GHG emission reduction in high Andean ecosystems (high Andean forest (bosque andino), Páramo and high altitude wetlands) that generates economic benefits for communities, through market-based opportunities. The Activity will abide by the Colombian legislation when designing and implementing this results-based mechanism, thus actions on the ground to be supported will have to take into consideration allowable activities under the approved land-use planning documents. The Contractor must coordinate with the MADS on strategic ecosystems boundaries.

When designing results-based mechanisms for conservation, the contractor will take into account the various aspects of results-based finance under the UNFCCC guidance: i) types of mechanisms (market and non-market based approaches); ii) sources (public, private, innovative/alternative, etc.); iii) what results are financed/paid for; iv) conditions to receive finance (having a national plan, reference [emission] level, monitoring and reporting, safeguards, etc.); v) governance (who manages what aspects); and vi) enabling conditions (what is needed for it to work in practice). Actual payments with USAID funding can only be made for up to three (3) years and with a minimum leverage of 3:1 (3 private or public funds and 1 USAID).

18 Strategic ecosystems are understood as areas that directly support the improvement of environmental conditions and social well-being.

While economic opportunities could come directly from conservation activities or environmental services (like water flow regulation, biodiversity conservation, risk reduction, and soil protection and productivity), USAID also encourages the development of value chains with private sector participation, where some form of industrial processing is made to add value to the agricultural product and where communities get a fair share of that additional value.

Given that it is legally prohibited under Colombian law, the Activity will not promote or support any new agricultural development within the páramo ecosystem. Productive activities will only be supported in areas where it is currently legally authorized. Where relevant, results-based mechanisms will take into account the policy guidance provided by the CONPES on PES.

This component of the Activity aims also at improving water management in the target areas.

This includes a proper enabling environment that ensures the rights and assets of all stakeholders (individuals as well as public and private sector organizations and companies, women as well as men, the poor as well as the better off), and protects public assets such as intrinsic environmental values.