SOL-520-11-000011 - Amendment No. 1 - Attachment 2.docx

Request for Proposal (RFP) No. SOL-520-11-000011 Security and Justice Sector Reform Project (SJSRP) Amendment 1 Attachment 2

L.9 INSTRUCTIONS FOR THE PREPARATION OF THE COST/BUSINESS PROPOSAL

(a) Part 1 - Standard Form (SF) 33

The Offeror must submit the cover page (Section A) of this Solicitation [Standard Form (SF) 33, "Solicitation, Offer, and Award"], with blocks 12 through 18 completed, with an original signature of a person authorized on behalf of the Offeror to sign the offer.

(b) Part 2 - Proposed Costs/Prices

(1) A major subcontractor is considered one whose proposed cost exceeds one (1) million US Dollars.

The offeror must submit a summary budget for the contract period as well as the option period. The summary budget must reflect summary cost information for each of the major budget categories for each of the contract years separately and then offer the program total for the entire contract, item for item in the last column of the spread sheet.

The offeror must also submit a detailed version of its summary budget for the contract period. The detailed budget must reflect every estimated cost item, broken out. The detailed budget must reflect these individual cost items for each of the contract years and then offer the program total for the entire contract, item for item in the last column of the spread sheet.

The offeror must submit a detailed budget narrative that supports item for item the cost estimates proposed in its detailed budget. The budget narrative should describe the nature of individual cost items proposed and include a description of the source of that particular cost estimate (historical experience with the cost item, catalogue price, vendor price quotes, etc.). Narratives for the individual cost items must provide a discussion of any estimated escalation rates where applicable. Estimated costs proposed to exceed ceilings imposed by USAID or Federal procurement policy must be fully explained and justified.

The offeror must submit information concerning work-day, work-week, and paid absences. The Offeror and each proposed major subcontractor shall indicate the number of hours and days in its normal work-day and its normal work-week, both domestically and overseas, for employees and consultants. In addition, the offeror and each proposed major subcontractor shall indicate how paid absences (US holidays, local holidays, vacation and sick) shall be covered for this contract.

The offeror must be aware of value added tax conditions. Taxes are not allowable costs under the resulting contract.

(2) The following is the minimum information required in the budget and budget narrative:

(A) Salary and Wages – Provide labor costs for US, CCN and TCN personnel broken down by category. Include the level of effort per labor category. CCN Administrative personnel include the following: secretaries, receptionists, drivers, messengers, etc. Same cost breakdown is required for sub-contractors. Direct salaries and wages should be proposed in accordance with the offeror's personnel policies. Provide a description of the relationship between your organization and the proposed personnel, including a certification as to whether the individual is a full-time, intermittent employee, or a consultant. Biographical Data Sheets are required for all long term, short term expatriate personnel and all long term cooperating country personnel being proposed (forms may be obtained at http://www.usaid.gov/forms/ ). Narratives must provide a discussion of the estimated annual escalation of all salaries where applicable. Salaries proposed in excess of maximum annual salary rate described in ADS 302.3.6.10 must be explained thoroughly. http://www.usaid.gov/policy/ads/300/302.pdf Special attention must be given to the requirements in AIDAR 722.170 Employment of Third Country Nationals (TCN’s) and Cooperating Country Nationals (CCN’S) concerning USAID’s policy on benefits, salary levels, and currency. It is USAID policy that CCN’S and TCN’s, who are hired abroad for work in a cooperating country under USAID-direct contracts, generally be extended the same benefits, and be subject to the same restrictions as TCN’s and CCN’s employed as direct hires by the USAID Mission. Compensation, including merit or promotion increases paid to TCN’s and CCN’s may not, without the approval of the Mission Director or the Assistant Administrator having program responsibility for the project, exceed the prevailing compensation paid to personnel performing comparable work in the cooperating country as determined by the USAID Mission. The compensation of such TCN and CCN employees shall be paid in the currency of the cooperating country. Pursuant to the most recent local compensation plan, dated January 1, 2011, the following represent the minimum and maximum annual basic compensation paid (base salary) for different professional CCN and TCN levels:

(B) Fringe Benefits - If the offeror has a fringe benefit rate that has been approved by an agency of the Government, such rate should be used and evidence of its approval should be provided. If a fringe benefit rate has not been so approved, the application should propose a rate and explain how the rate was determined. If the latter is used, the narrative should include a detailed breakdown comprised of all items of fringe benefits (e.g., unemployment insurance, workers compensation, health and life insurance, retirement, FICA, etc.) and the costs of each, expressed in dollars and as a percentage of salaries.

(C) Travel and Transportation - The application should indicate the number of trips, domestic and international, and the estimated costs per trip. Specify the origin and destination for each proposed trip, duration of travel, and number of individuals traveling. Per diem should be based on the offeror's normal travel policies (offerors may choose to refer to the Federal Standardized Travel Regulations for cost estimates).

(D) Procurement - A list of proposed non-expendable property purchases. Specify all equipment to be purchased, including the type of equipment, the manufacturer, the unit cost, the number of units to be purchased and the expected geographic source. Goods and services provided by the Offerors under this USAID-financed award are expected to be subject to the 000 Geographic Code and Blanket Waiver for Local Procurement up to $5 million.

(E) Equipment and Supplies - Specify all materials and supplies expected to be purchased, including type, unit cost and units.

(F) Communications - Specific information regarding the type of communication cost at issue (i.e. mail, telephone, cellular phones, internet etc.) must be included in order to allow an assessment of the realism and reasonableness of these types of costs.

(G) Subcontracts/Consultants - Information sufficient to determine the reasonableness of the cost of each specific subcontract and consultant expected to be hired must be included. Labor costs for US, CCN and TCN personnel must be broken down by category, including the level of effort per labor category for the offeror and all sub-contractors.

Sub-contracts and consultants are subject to the 000 Geographic Code and local procurement, as authorized in CFR 228.40. The nationality requirements for personnel hired by contractors under USAID-financed contracts and grants are set forth in 22 CFR 228. Specifically, Section 228.37 provides that the nationality rules for persons providing services do not apply to employees of contractors or subcontractors; however, such employees must be citizens of countries in Geographic Code 935 (22 CFR 228.03). In the case where a contractor is using the consultant in a temporary employment relationship and the individual is classified by the contractor as an employee, then the Nationality of employees of service contractor rules in 22 CFR 228.37 apply, which would be Geographic Code 935. It is the responsibility of the contractor to ensure that the employment is consistent with its personnel policies and procedures. In cases where the short-term consultants are legitimately classified as employees, no waiver of nationality is required. In cases where the individual cannot be classified as an employee, then the contractor must obtain a waiver approved by the Mission Director prior to the utilization of the TCN consultant.

Additionally, under 22 CFR 228.40 "Local procurement", Professional Services Contracts with Locals up to $250,000 do not need a nationality waiver as long as the individual is from Geographic Code 935. [NOTE: The USAID Administrator approved a blanket waiver authorizing local procurement from the cooperating country in an amount of up to $5 million of commodities and services. This amount is a single aggregate total comprised of all purchases under the prime award, all subawards, and purchases under those subawards. The selected Contractor may choose to allocate portions of the waiver threshold authority to subawardees; however, it is the Contractor’s responsibility as the prime awardee to monitor and document the total local procurement expenditures made under the authority of the blanket waiver to ensure that the cumulative sum of those procurements under the award does not exceed the dollar threshold in the waiver.]

(H) Allowances - Allowances should be broken down by specific type and by person. Allowances should be in accordance with the offeror’s policies and the applicable regulations and policies. The Independent Government Cost Estimate for these services includes allowance limits established by the U.S. Department of State.

(I) Direct Facilities Costs - Specific information regarding the cost of any facilities needed to perform program activities. The information provided should include the unit cost (rent), the time period the facilities are needed and the number of facilities. Only facilities that directly benefit the program activities should be included in this category; all other facility costs should be included in the indirect cost category.

(J) Other Direct Costs - This includes report preparation costs, passports and visas fees, medical exams and inoculations, insurance (other than insurance included in the offeror's fringe benefits), as well as any other miscellaneous costs, which directly benefit the program proposed by the offeror. The narrative should provide a breakdown and support for all other direct costs. If seminars and conferences are included, the offeror should indicate the subject, venue and duration of proposed conferences and seminars, and their relationship to the objectives of the program, along with estimates of costs.

(K) Security - Offerors should include vehicles, labor for guard forces, security equipments, communications as well as other miscellaneous costs which directly benefit the program.

(L) Grants Under Contracts – USAID expects to award sub-grants to local civil society organizations under the resulting contract under this solicitation. The resulting contractor shall comply in all material respects with USAID’s Automatic Directives Systems (ADS) Chapter 303 (including mandatory and supplemental references) in awarding and administrating sub-grants, as well as the Code of Federal Regulations 22 CFR 226 and 228. In addition, the resulting contractor shall comply with requirements provided in ADS 302.3.4.8 Grants Under Contracts (GUCs) and must ensure that foreign nonprofit sub recipients adhere to the USAID Standard Provisions for Non-U.S. Nongovernmental Grantees. The resulting contractor will be required to submit to the Contracting Officer all sub-grants above $100,000 prior to approval. A total of $1,000,000 will be used for sub-grants over the life of the resulting contract (base+option)

(M) Indirect Costs - The offeror should support the proposed indirect cost rate with a letter from a cognizant U.S. Government audit agency or with sufficient information for USAID to determine the reasonableness of the rates. (For example, a breakdown of labor bases and overhead pools, the method of determining the rate, a description of all costs in the pools, etc.)

(N) Indirect Cost Information

(i) The Offeror and each proposed major subcontractor shall include a complete copy of its most current Negotiated Indirect Cost Rate Agreement (NICRA) or other documentation from its cognizant Government Audit Agency, if any, stating the most recent final indirect cost rates.

(ii) If the Offeror or any major subcontractor(s) does not have a cognizant Government Audit Agency, audited balance sheets and profit and loss statements for the last two complete years, and the current year-to-date statements (or such lesser period of time if the Offeror is a newly-formed organization), must be included in the proposal. The profit and loss statements should include detail of the total cost of goods and services sold, including a listing of the various indirect administrative costs, and be supplemented by information on the prime contractor’s customary indirect cost allocation method, together with supporting computations of the basis for the indirect cost rate(s) proposed.

(O) Rapid Response Fund - The resulting contractor shall allocate adequate funds each year to respond to changing political environments, windows of opportunity and urgent requests by USAID and GOG counterparts that may appear during implementation of the contract and help advance SJSRP objectives. This shall be included in the Contractor’s budget and include a minimum of $400,000 per year for a total of $2,000,000 over the life of the resulting contract (base + option).

(P) Fixed Fee: The proposed fee must be justified based upon the following factors: technical, management, support for Federal socioeconomic programs, and cost control. Any additional factors may be discussed as a basis for fee. A written discussion justifying the proposed fixed fee is required.

(Q) The Offeror must provide a consolidated Person-Days table, including the prime and the subcontractors’ person days, as follows:

US Personnel

CCN Professionals

CCN Administrative

TCN professionals

Total Person Days

(3) The following standard cost elements shall be included in the submission as applicable. Individual subcontractors should include the same cost element breakdowns in their budgets as applicable.

NOTE: For any option period, similar budget information must be provided.

(c) Part 3 - Representations, Certifications, and Other Statements of Offerors

The Offeror and each proposed subcontractor shall complete all "Representations, Certifications, and Other Statements of Offeror" as required in Section K, and sign and date on the last page in the space provided.

(d) Part 4 - Policies and Procedures

If the offeror does not have prior USAID contracting experience, submit a copy of its personnel policies, especially regarding salary and wage scales, fringe benefits, merit increases, promotions, leave, differentials, travel and per diem regulations, etc. The CO may determine that a pre-award survey is necessary (see FAR 9.106).

(e) Part 5 - Subcontracting Plan

If the offeror is other than a small business, it must submit a Subcontracting Plan (see Attachment J.7. Submitted Plans must address subcontracting with small business (SB), veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns. This plan will be the equivalent of a master subcontracting plan for the overall contract. (The contractor is required to submit the approved contract subcontracting plan to OSDBU.) See Section H.

These plans must contain small business subcontracting goals of at least 1% of total planned subcontracting, including non-zero goals (greater than 1%) for each of the following: veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business, and women-owned small business.

(f) Part 6 - Joint Venture Information

If two or more parties have formed a partnership or joint venture (see FAR Subpart 9.6), for the purposes of submitting a proposal under this Solicitation and, if selected, would perform the contract as a single entity, they must submit, as an attachment to the Cost/Business Proposal, the Corporate Charter, By-Laws, or Joint Venture or Partnership Agreement. In addition, the teaming arrangements must be identified, company relationships must be fully disclosed, and respective responsibilities and method of work must be expressly stipulated. The joint venture or partnership agreement must include a full discussion of the relationship between the organizations, including identification of the organization, which will have responsibility for negotiation of Task Orders under the resultant contract, which organization will have accounting responsibility, how work will be allocated, and profit or fee, if any, shared. In addition, the principles to the joint venture or partnership agreement must agree to be jointly and severally liable for the acts or omissions of the other.

(g) Part 7 - Evidence of Responsibility

The offeror must submit sufficient evidence of responsibility for the contracting officer to make an affirmative determination of responsibility pursuant to the requirements of FAR Subsection 9.104-1. However, in the case of a small business offeror, the contracting officer will comply with FAR 19.6. Accordingly, prime offerors should seriously address each element of responsibility. To be determined responsible, a prospective contractor must:

(1) Have adequate financial resources to perform the contract, or the ability to obtain them (see FAR 9.104-3(a));

(2) Be able to comply with the required or proposed delivery or performance schedule, taking into consideration all existing commercial and governmental commitments;

(3) Have a satisfactory performance record (See FAR 9.104-3(b) and Subpart 42.15). A prospective contractor shall not be determined responsible or non-responsible solely on the basis of a lack of relevant performance history, except as provided in FAR 9.104-2;

(4) Have a satisfactory record of integrity and business ethics;

(5) Have the necessary organization, experience, accounting and operational controls, and technical skills, or the ability to obtain them (including, as appropriate, such elements as production control procedures, property control systems, quality assurance measures, and safety programs applicable to materials to be produced or services to be performed by the prospective contractor and subcontractors). (See FAR 9.104-3(a));

(6) Have the necessary production, construction, and technical equipment and facilities, or the ability to obtain them (See FAR 9.104- 3(a)); and

(7) Be otherwise qualified and eligible to receive an award under applicable laws and regulations (e.g., Equal Opportunity, Clean Air and Water, Small Business Subcontracting, etc.).

(h) Part 8 - Letters of Commitment (Subcontractors)

The Cost/Business Proposal must include a letter, on subcontractor letterhead, and signed by an authorized representative of each subcontractor, which specifically indicates the subcontractor's agreement to be included in the offeror’s proposed teaming arrangement.

(i) Part 9 - Information to Support Consent to Subcontractors

The offeror must address each of the elements in FAR 44.202-2 in order for proposed subcontractors to be considered by the contracting officer for consent of subcontractors to be granted with the initial award.

(j) Part 10 - Information Concerning Work-Day, Work-Week, and Paid Absences

(1) The Offeror and each proposed major subcontractor shall indicate the number of hours and days in its normal work-day and its normal work-week, both domestically and overseas, for employees and consultants. In addition, the offeror and each proposed major subcontractor shall indicate how paid absences (US holidays, local holidays, vacation and sick) shall be covered.

(2) A normal work-year, including paid absences (holidays, vacations, and sick leave) is 2,080 hours (260 days x 8 hours per day). However, some organizations do not have an 8-hour workday, and some accounting systems normally provide for direct recovery of paid absences by using a work-year of less than 2,080 hours to compute individuals' unburdened daily rates. The offeror and major subcontractors shall describe their core work day and work week policies.

(3) The work day and work week policies and the method of accounting for paid absences for the offeror and major subcontractors will be incorporated into the content in Section B.

(k) Part 11 – Grants under Contract

The Contractor is encouraged to maximize the use of Guatemalan organizations as the vehicles for policy analysis and dialogue, and to strengthen local NGOs and other civil society groups, using grants. The use of grants should be seen as one tool to achieve the results of the program, and the offeror should propose their use as such. USAID/Guatemala will be significantly involved in establishing selection criteria and must approve the actual selection of grant recipients with Guatemalan organizations, including any decisions to award grants based on exclusive or predominant capability. Specific instructions for issuing grants under contract are described in Section C.3.4 and Section H.17 of this RFP.

[END OF SECTION L]