SOL- 527-12-000013 .pdf

Issuance Date: May 25, 2012 Deadline for Questions: June 15, 2012, 17:00, Eastern Standard Time Closing Date: July 12, 2012 Closing Time: 17:00, Eastern Standard Time

Subject: SOL-527-12-000013 USAID/PERU – New Alternatives program

To All Prospective Offerors:

The United States Government, represented by the U.S. Agency for International Development (USAID), is seeking proposals from qualified organizations to implement USAID/Peru’s New Alternatives program. A full description of the requirements can be found in Section C of the attached Request for Proposals (RFP). The purpose of this Alternative Development Program is to promote sustainable licit development in the communities and regions affected by illicit coca cultivation in Peru during the period of 2012-2016.

USAID/Peru anticipates awarding one cost reimbursement completion-type contract as a result of this solicitation covering an estimated period of four years (subject to availability of funds and demonstration of successful performance). Offerors must propose costs that they believe are realistic and reasonable for the work described herein. The estimated cost range for this procurement is between $10 Million and $25 million. Please note that the estimated cost range is a standardized USAID Business Forecast range and that for this procurement, the expectation is that it will be very near the lowest end of the range and that USAID will not be able to contemplate proposals which exceed the very lowest end of the range.

Pursuant to Part 15 of the Federal Acquisition Regulation (FAR) (48 CFR Chapter 1), this procurement shall be conducted under full and open competition procedures. Proposals in response to this solicitation must be submitted in accordance with Section L, “Instructions to Offerors”. Offerors must also carefully review Section M - Evaluation Factors for Award.

Sections B through I of the solicitation will become a substantive part of the anticipated contract with blanks to be completed by the Contracting Officer upon award. Section K - Representations, Certifications and Acknowledgements must be filled out in full.

Under this solicitation USAID encourages the participation to the maximum extent possible of small business concerns, veteran owned small business, service-disabled veteran small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns in this activity as the prime Contractor or as subcontractors. USAID also encourages the active capacity building of local entities as sub awardees so that they can eventually become prime contractors/grantees.

It is the responsibility of the recipient of this solicitation to ensure that the solicitation has been received from the FBO page in its entirety. USAID bears no responsibility for data errors resulting from download or conversion processes.

ABBREVIATIONS

AAPD Acquisition & Assistance Policy Directive AD Alternative Development ADS Automated Directives System AIDAR Agency for International Development Acquisition Regulation CCR Central Contractor Registration CDCS Country Development & Cooperation Strategy CFR Code of Federal Regulation CO Contracting Officer CN Counternarcotic Strategy COR Contracting Officer’s Representative D&B Dun and Bradstreet, Inc DBA Defense Base Act DEC Development Experience Clearinghouse DEVIDA National Commission for Life Without Drugs DUNS Data Universal Numbering System ETD Environmental Threshold Decision EFT Electronic Funds Transfer FAR Federal Acquisition Regulation GAO General Accounting Office GUCs Grants-Under-Contract GOP Government of Peru HV Huallaga Valley HSPD Homeland Security Presidential Directive MEDEVAC Medical Evacuation NAS US Embassy Narcotics Affairs Section OMB Office of Management and Budget ORCA Online Representations and Certifications Application PDF Portable Document Format PIV Personal Identity Verification PMP Performance Management Plan RFP Request for Proposal SOW Statement of Work TIN Taxpayer Identification Number UNODC United Nations Office on Drug and Crime US United States of America USAID United States Agency for International Development USAID/W USAID Washington USG United States Government VRAE Apurimac-Ene River Valley

1. THIS CONTRACT IS A RATED ORDER RATING PAGE OF PAGES

UNDER DPAS (15 CFR 700)

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

SEALED BID (IFB)

7. ISSUED BY CODE 8. ADDRESS OFFER TO (If other than Item 7)

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

9. Sealed offers in original and _____________________________ copies for furnishing the supplies or services in the Schedule will be received at the place specified in Item 8, or if handcarried, in the depository located in until local time _______________________ (Hour) (Date)

CAUTION - LATE Submissions, Modifications, and Withdrawals: See Section L, Provision No. 52.214-7 or 52.215-1. All Offers are subject to all terms and conditions contained in this solicitation.

A. NAME B. TELEPHONE (NO COLLECT CALLS) C. E-MAIL ADDRESS

AREA CODE NUMBER EXT.

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

PART I - THE SCHEDULE PART II - CONTRACT CLAUSES

A SOLICITATION/CONTRACT FORM I CONTRACT CLAUSES

B SUPPLIES OR SERVICES AND PRICES/COSTS PART III - LIST OF DOCUMENTS, EXHIBITS AND OTHER ATTACH.

C DESCRIPTION/SPECS./WORK STATEMENT J LIST OF ATTACHMENTS

D PACKAGING AND MARKING PART IV - REPRESENTATIONS AND INSTRUCTIONS

E INSPECTION AND ACCEPTANCE

F DELIVERIES OR PERFORMANCE

G CONTRACT ADMINISTRATION DATA L INSTR., CONDS., AND NOTICES TO OFFERORS

H SPECIAL CONTRACT REQUIREMENTS M EVALUATION FACTORS FOR AWARD

K

REPRESENTATIONS, CERTIFICATIONS AND OTHER

STATEMENTS OF OFFERORS

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

12. In compliance with the above, the undersigned agrees, if this offer is accepted within ________ calendar days (60 calendar days unless a different period is inserted by the Offeror) from the date for receipt of offers specified above, to furnish any or all items upon which prices are offered at the price set opposite each item, delivered at the designated point(s), within the time specified in the schedule.

13. DISCOUNT FOR PROMPT PAYMENT 10 CALENDAR DAYS (%) 20 CALENDAR DAYS (%) 30 CALENDAR DAYS (%) CALENDAR DAYS (%)

(See Section I, Clause No. 52-232-8)

14. ACKNOWLEDGEMENT OF AMENDMENTS AMENDMENT NO. DATE AMENDMENT NO. DATE

(The Offeror acknowledges receipt of amendments to the SOLICITATION for Offerors and related documents numbered and dated:

CODE FACILITY

16. NAME AND TITLE OF PERSON AUTHORIZED TO SIGN OFFER15A. NAME AND

ADDRESS

OF OFFEROR

(Type or print)

15B. TELEPHONE NUMBER 17. SIGNATURE 18. OFFER DATE

AREA CODE NUMBER EXT.

15C. CHECK IF REMITTANCE ADDRESS IS DIFFERENT FROM

ABOVE - ENTER SUCH ADDRESS IN SCHEDULE

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

22. AUTHORITY FOR USING OTHER THAN FULL AND OPEN COMPETITION: 23. SUBMIT INVOICES TO ADDRESS SHOWN IN ITEM (4 copies unless otherwise specified)

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

24. ADMINISTERED BY (If other than Item 7) 25. PAYMENT WILL BE MADE BYCODE CODE

26. NAME OF CONTRACTING OFFICER (Type or print) 27. UNITED STATES OF AMERICA 28. AWARD DATE

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

(Signature of Contracting Officer)

(REV. 9-97)

10. FOR INFORMATION CALL:

11. TABLE OF CONTENTS

STANDARD FORM 33

SOLICITATION, OFFER AND AWARD

SOLICITATION

OFFER (Must be fully completed by Offeror)

AWARD (To be completed by Government)

4 101

SOL-527-12-000013

REGIONAL OFFICE OF ACQUISITION AND ASSISTANCE (OAA)

USAID/PERU

DOS/USAID

3230 Lima Place Washington, DC 20521-3230

See Section L

Electronic Submissions Only – see Block 10.C and Section L

Rosario O. de Saldaña 511-618-1434 LimaSolicitation@usaid.gov See Attached Table of Contents

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X

X

X

X

X

X

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TBD TBD

_ _ See Section G.5

FINANCIAL MANAGEMENT OFFICE

DOS/USAID

3230 LIMA PLACE

Washington, DC 20521-3230

TABLE OF CONTENTS

SECTION B – SUPPLIES OR SERVICES AND PRICE/COSTS

B.1. PURPOSE

B.2 CONTRACT TYPE

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

B.4 AWARD BUDGET

B.5 FEE SCHEDULE

B.6 INDIRECT COSTS (DEC 1997)

B.7 CEILING INDIRECT COST RATES AND FINAL REIMBURSEMENT FOR INDIRECT

COSTS

B.8 COST REIMBURSABLE

SECTION C - DESCRIPTION/SPECIFICATIONS/STATEMENT OF WORK

C.1 INTRODUCTION & PURPOSE

C.2 BACKGROUND

C.3 OBJECTIVES

C.4 PROGRAM COMPONENTS AND REQUIRED RESULTS

C.5 GRANTS UNDER CONTRACT

C.6 GEOGRAPHIC FOCUS

C.7 GUIDING PRINCIPLES

C.8 EVALUATION

SECTION D - PACKAGING AND MARKING

D.1 AIDAR 752.7009 MARKING (JAN 1993)

D.2 BRANDING AND MARKING POLICY

D.3 BRANDING STRATEGY

SECTION E - INSPECTION AND ACCEPTANCE

E.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE

E.2 INSPECTION AND ACCEPTANCE

E.3 PERFORMANCE STANDARDS

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 TECHNICAL DIRECTION AND DESIGNATION OF RESPONSIBLE USAID

OFFICIALS

F.5 AUTHORIZED WORK DAY / WEEK

F.6 REPORTS AND DELIVERABLES

F.7 752.242-70 PERIODIC PROGRESS REPORTS (OCT 2007)

F.8 AIDAR 752.7005 SUBMISSION REQUIREMENTS FOR DEVELOPMENT

EXPERIENCE DOCUMENTS (JAN 2004)

F.9 KEY PERSONNEL

SECTION G - CONTRACT ADMINISTRATION DATA

G.1 CONTRACTING OFFICER'S AUTHORITY

G.2 TECHNICAL DIRECTION AND RELATIONSHIP WITH USAID

G.3 ACCEPTANCE AND APPROVAL

G.4 INVOICES

G.5 AIDAR 752.7003 DOCUMENTATION FOR PAYMENT (NOV 1998)

G.6 ACCOUNTING AND APPROPRIATION DATA

SECTION H - SPECIAL CONTRACT REQUIREMENTS

H.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE

H.2 AIDAR 752.225-70 SOURCE AND NATIONALITY REQUIREMENTS (FEB 2012)

H.3 AIDAR 752.7004 EMERGENCY LOCATOR INFORMATION (JUL 1997)

H.4 AIDAR 752.228-3 WORKER’S COMPENSATION INSURANCE

H.5 INSURANCE AND SERVICES

H.6 AIDAR 752.7007 PERSONNEL COMPENSATION (JULY 2007)

H.7 ADDITIONAL REQUIREMENTS FOR PERSONNEL COMPENSATION

H.8 AIDAR 752.231-71 SALARY SUPPLEMENTS FOR HOST GOVERNMENT (HG)

EMPLOYEES (OCT 1998)

H.9 AIDAR 752.7031 LEAVE AND HOLIDAYS (OCT 1989)

H.10 AIDAR 752.228-70 MEDICAL EVACUATION (MEDEVAC) SERVICES (JULY 2007) . 42

H.11 USAID DISABILITY POLICY – ACQUISITION (DECEMBER 2004)

H.12 AUTHORIZED GEOGRAPHIC CODE

H.13 EXECUTIVE ORDER ON TERRORISM FINANCING

H.14 NONEXPENDABLE PROPERTY PURCHASES AND INFORMATION TECHNOLOGY

RESOURCES

H.15 GOVERNMENT FURNISHED FACILITIES OR PROPERTY

H.16 USAID IMPLEMENTATION OF SECTION 508 OF THE REHABILITATION ACT OF

1973 AND FEDERAL ACQUISITION CIRCULAR (FAC) 97-27 "ELECTRONIC AND

INFORMATION TECHNOLOGY ACCESSIBILITY

H.17 SUBCONTRACTING PLAN AND THE SF 294 – SUBCONTRACTING REPORT FOR

INDIVIDUAL CONTRACTS AND SF 295 – SUMMARY CONTRACTING REPORT ... 44

H.18 CONSENT TO SUBCONTRACT

H.19 REPORTING OF FOREIGN TAXES (JULY 2007)

H.20 CONFLICT OF INTEREST

H.21 LOGISTIC SUPPORT

H.22 LANGUAGE REQUIREMENTS AND REPORTING

H.23 GENDER CONSIDERATION

H.24 ENVIRONMENTAL PROCEDURES AND GUIDELINES

H.25 AIDAR 752.7005 SUBMISSION REQUIREMENTS FOR DEVELOPMENT

EXPERIENCE DOCUMENTS (JAN 2004)

H.26 TRANSITION OF KNOWLEDGE, SKILLS AND ABILITIES

H.27 AIDAR 752.7032 INTERNATIONAL TRAVEL APPROVAL AND NOTIFICATION

REQUIREMENTS AND AIDAR 752.7027 PERSONNEL

H.28 AIDAR 752.245.71 TITLE TO AND CARE OF PROPERTY

H.29 PROHIBITION ON THE USE OF FEDERAL FUNDS TO PROMOTE, SUPPORT, OR

ADVOCATE THE LEGALIZATION OR PRACTICE OF PROSTITUTION– TIP

ACQUISITION (MAY 2007)

H.30 PERSONAL IDENTITY VERIFICATION OF CONTRACTOR PERSONNEL (July 2007)

H.31 HOMELAND SECURITY PRESIDENTIAL DIRECTIVE-12 (HSPD-12) (SEPTEMBER

2006)

H.32 STANDARDS OF CONDUCT -- IMPROPER BUSINESS PRACTICES

H.33 FOREIGN GOVERNMENT DELEGATIONS TO INTERNATIONAL CONFERENCES 53

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 52.209–9 UPDATES OF PUBLICLY AVAILABLE INFORMATION REGARDING

RESPONSIBILITY MATTERS. (JAN 2011)

I.4 FAR 52.216-24 LIMITATION OF GOVERNMENT LIABILITY (APR 1984)

I.5 AIDAR 752.4101 VOLUNTARY POPULATION PLANNING ACTIVITIES (JUN 2008) 58

SECTION J - LIST OF ATTACHMENTS

SECTION K - REPRESENTATIONS, CERTIFICATIONS AND OTHER STATEMENTS OF

OFFERORS

K.1 NOTICE LISTING SOLICITATION PROVISIONS INCORPORATED BY REFERENCE

K.2 52.204-8 ANNUAL REPRESENTATIONS AND CERTIFICATIONS (FEB 2009)

K.3 52.230-1 COST ACCOUNTING STANDARDS NOTICES AND CERTIFICATION

(OCTOBER 2008)

K.4 52.230-7 PROPOSAL DISCLOSURE--COST ACCOUNTING PRACTICE CHANGES

(APR 2005)

K.5 52.222-21 PROHIBITION OF SEGREGATED FACILITIES (FEB 1999)

K.6 INSURANCE - IMMUNITY FROM TORT LIABILITY

K.7 SIGNATURE

SECTION L - INSTRUCTIONS, CONDITIONS, AND NOTICES TO OFFERORS

L.1 GENERAL INSTRUCTIONS TO OFFERORS

L.2 PROPOSAL SUBMISSION

L.3 INSTRUCTIONS FOR THE PREPARATION OF THE TECHNICAL PROPOSAL

L.4 INSTRUCTIONS FOR THE PREPARATION OF THE COST/BUSINESS PROPOSAL

L.5 52.252-1 SOLICITATION PROVISIONS INCORPORATED BY REFERENCE (FEB

1998)

L.6 FAR 52.216-1 TYPE OF CONTRACT (APR 1984)

L.7 FAR 52.233-2 SERVICE OF PROTEST (SEPT 2006)

SECTION M - EVALUATION FACTORS FOR AWARD

M.1 GENERAL INFORMATION

M.2 TECHNICAL EVALUATION CRITERIA

M.3 COST PROPOSAL EVALUATION

M.4 SOURCE SELECTION

M.5 DETERMINATION OF COMPETITIVE RANGE

M.6 CONTRACTING WITH SMALL OR LOCAL BUSINESS CONCERNS

M.7 52.252-1 SOLICITATION PROVISIONS INCORPORATED BY REFERENCE (FEB

1998)

ATTACHMENT J.1 - BUDGET FORMAT (TEMPLATE)

ATTACHMENT J.2 - PAST PERFORMANCE QUESTIONNAIRE

ATTACHMENT J.3 - USAID FORM 1420-17

ATTACHMENT J.4 - MODEL SUBCONTRACTING PLAN OUTLINE

ATTACHMENT J.5 – MATRIX OF BRANDING AND MARKING PLAN FOR CONTRACTS ... 11

ATTACHMENT J. 6 – OTHERS – LESSONS FOR FUTURE PROGRAMMING

PART I - THE SCHEDULE

SECTION B – SUPPLIES OR SERVICES AND PRICE/COSTS

B.1. PURPOSE

The United States Government (USG) through the US Agency for International Development (USAID), Alternative Development Office (AD) intends to support the sustainable development of Peruvian institutions and communities whose members have made a commitment to licit lifestyles.

The overall goal of this contract is to: Promote and sustain licit local development in communities and regions affected by illicit coca cultivation in Peru.

B.2 CONTRACT TYPE

This is a Cost-Plus-Fixed-Fee (CPFF) completion type contract. For the consideration set forth below, the Contractor shall provide the performance requirements described in Section C and the deliverables or outputs described in Section F.

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

(a) The estimated cost for the performance of the work required hereunder, exclusive of fixed fee, if any, is: $ ___________. The fixed fee, if any, is $____________. The estimated cost plus fixed fee, if any, is $________________.

(b) Within the estimated cost plus fixed fee (if any) specified in paragraph (a) above, the amount currently obligated and available for reimbursement of allowable and allocable costs incurred by the Contractor (and payment of fee, if any) and in accordance with Section B.5 below for performance hereunder is $ ____________. The Contractor shall not exceed the aforesaid obligated amount.

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

[THIS SPACE LEFT INTENTIONALLY BLANK]

B.4 AWARD BUDGET

CLIN

NO.

CLIN

DESCRIPTION

Year 1 Year 2 Year 3 Year 4 Total

Transitioning Communities w/fixed fee schedule

Communicatio ns for Results w/fixed fee schedule

Grants Under Contract

TOTAL CPFF

B.5 FEE SCHEDULE

Pursuant to FAR 16.306(d), the fixed fee payable under this contract will be tied to the completion of deliverables specified in the fixed fee schedule as agreed between the contractor and USAID based on yearly PMP indicators.

B.6 INDIRECT COSTS (DEC 1997)

The contract clause entitled “Allowable Cost and Payment (JUN 2011)”, FAR 52.216-7, specifies that the indirect cost rates shall 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 shall be reimbursed on the basis of the following negotiated provisional or predetermined rates and the appropriate bases:

Description Rate Base Type Period 1/ 1/ 1/ 2/ 2/ 2/ 3/ 3/ 3/

1/Base of Application:

Type of Rate: Provisional Period:

2/Base of Application:

Type of Rate: Provisional Period:

3/Base of Application:

Type of Rate: Provisional Period:

B.7 CEILING INDIRECT COST RATES AND FINAL REIMBURSEMENT FOR INDIRECT

COSTS

(1) Reimbursement for indirect costs shall be at the lower of the negotiated final (or predetermined rates) or the following ceiling rates:

Description Rate Base Type Period 1/ 2/ 3/

1/ 2/ 3/

(2) The Government will not be obligated to pay any additional amount should the final indirect cost rates exceed the negotiated ceiling rates. If the final indirect costs are less than the negotiated ceiling rates, the negotiated rates will be reduced to conform with the lower rates.

(3) This understanding shall not change any monetary ceiling, obligation, or specific cost allowance or disallowance. Any changes in classifying or allocating indirect costs required the prior written approval of the Contracting Officer.

B.8 COST REIMBURSABLE

Allowable costs shall be limited to reasonable, allocable and necessary costs determined in accordance with FAR 52.216-7, Allowable Cost and Payment (JUN 2011), FAR 52.216-8, Fixed Fee (JUN2011), if applicable, and AIDAR 752.7003, Documentation for Payment (NOV 1998).

In addition, the requirement and conditions concerning estimated cost and funding apply as detailed in FAR 52.232-22, Limitation of Funds (APR 1984).

[END OF SECTION B]

SECTION C - DESCRIPTION/SPECIFICATIONS/STATEMENT OF WORK

C.1 INTRODUCTION & PURPOSE

The New Alternatives program1 (“the Program” or “the Project”) is a principal mechanism of USAID/Peru to support Peruvian communities and institutions participating in USAID/Peru’s alternative development efforts. These efforts are focused on promoting sustainable licit development in the communities and regions affected by illicit coca cultivation in Peru during the period 2012-2016

In explicit recognition of the fact that growing illicit coca is an impediment to economic, social and democratic development, the primary objective of this Program is to support the sustainable development of Peruvian institutions and communities whose members have made a commitment to licit lifestyles. It must encourage families, community leaders, and institutions to make and sustain this commitment by delivering economic and social benefits that help to create the basic conditions needed for successful licit development.

The expected outcomes of the Program are to:

I. Introduce licit lifestyles to newly-eradicated communities, convince these communities of the benefits of becoming (and remaining) coca-free, and connect participants to strong, functioning government and non-government organizations that will help them meet their social and economic needs (Transitioning Communities – Component One); and

II. Sustain the licit development gains made to date and ensure commitment to licit lifestyles through a comprehensive communications program (Communications for Results – Component Two).

Close planning and coordinated implementation with the Government of Peru (GOP) and other USAID projects in the focus areas is mandatory and will ensure that additional economic and social public investments are made in the targeted communities. Partnering with the private sector will encourage civil society and private enterprises – institutions historically reluctant to participate in counternarcotics efforts – that developing alternative livelihoods is good for society and good for business, while continued coca production threatens Peru’s national political and economic stability. A communications program will promote the benefits of a licit life style to both increase acceptance of the program and produce a sustainable change in behavior.

This project will build on the achievements attained during the period 2002-2012 by USAID’s Alternative Development Program (ADP) in areas where growing coca is a central component of the local economy. The ADP and preceding alternative development interventions have supported the transition of over 1,103 communities and 85,148 families from coca growing areas to producers of 92,841 hectares (ha) of licit crops, primarily cacao, coffee, and oil palm. A major influence in the transformation of communities with coca-based economies is the GOP’s new and still-developing plan to escalate the volume and scale of programmed (i.e., forced) eradication in the Huallaga Valley (HV) and the Pullcalpa-Tingo Maria corridor.

The primary focus of the activity will be transitioning communities, with approximately 80 percent of the contract’s resources dedicated to this component. Twenty percent of resources

1 Nuevas Alternativas in Spanish will be invested in sustaining previous gains through an effective communications program.

Both program components will be supported by a small grants-under-contracts program, which will both help consolidate results and develop local capacity.

C.2 BACKGROUND

Increasing narcotics trafficking, conflict, and violence pose serious security and development problems in the Peruvian Jungle and are increasingly becoming a threat to Peru’s national stability and its remarkable economic and democratic gains. Peru remains the world’s second largest producer of coca leaf, the raw material for cocaine, with an estimated production of 129,500 metric tons per year, of which only 9,000 metric tons are necessary to meet the demand of all licit uses recognized by Peruvian law (traditional coca chewing by indigenous populations plus very limited industrial uses and exports). Over 90% of Peru’s coca leaf production goes to supplying the illegal narcotics industry, resulting in a potential cocaine production estimated at 120,500 MT annually. The two most important coca areas, the Huallaga Valley (HV) and the Apurimac-Ene River Valley (VRAE), account for 46,000 ha of coca, or 75% of the total cultivation. Almost all the production from the UH and the VRAE goes to the illicit narcotics industry. Detailed information on illicit coca production and trafficking in Peru is available from the United Nations Office on Drugs and Crime (www.unodc.org). 2

Trafficking of narcotics is one of the root causes for poverty in the Peruvian jungle; farmers do not emerge from poverty by growing coca. Illicit coca cultivation has continued or expanded in rural areas where state presence is limited, law enforcement is virtually absent, infrastructure is deficient, unemployment is high, educational opportunities are limited, and local and regional governments are not able to provide adequate social services to their populations. The common challenges of fostering sustainable development are compounded in coca-producing areas because: (a) private-sector-led economic growth is limited by: geographic isolation from lucrative markets, shortage of credit, insecurity, lack of government presence, and economic distortions caused by drug money; (b) narcotics traffickers and remnants of Sendero Luminoso use drug money and violence (including the threat of violence) to control and influence populations; (c) counternarcotics and alternative development programs face active, well-resourced, and sometimes violent opposition from pro-coca (cocalero) organizations; (d) high internal migration rates and weak social fabric create a climate of generalized distrust.

President Humala has committed to fighting narco-trafficking and reducing poverty. On February 16, 2012 the GOP announced its five-year national counternarcotics strategy.

Programmed eradiation of illicit coca is a component of the GOP’s counternacotics policy and is implemented through the Ministry of Interior as a law-enforcement function. The GOP eradicated 10,290 ha of illicit coca in 2011. In 2012, the GOP plans to eradicate up to 14,000 ha of illicit coca.3 The National Commission for Life Without Drugs (DEVIDA) is the GOP Agency mandated with coordinating counternarcotics activities. DEVIDA and the Regional Government of San Martin, Ucayali, and Huanuco are USAID’s primary counterparts for alternative development activities. Peru’s national counternarcotics strategy and other reference documents are available on DEVIDA’s website: www.devida.gob.pe.

USAID, in partnership with the GOP, have helped entire regions of Peru turn away from coca and emerge from poverty, as we have seen in San Martin Region. USAID’s alternative development portfolio currently works primarily with three value chains: cacao, coffee, and oil

2 All figures in this paragraph from UNODC, World Drugs Report 2011, New York 2011 3 UNODC, World Drugs Report 2011, New York 2011 palm. Since 2002, USAID has helped more than 60,000 families to plant licit crops on more than 87,000 ha of land. This includes more than 33,000 ha of cacao, which currently enjoys a market price exceeding $3,000 per metric ton—the highest since 1979. In 2010 total sales of these USAID-supported licit crops reached $34 million, generating 13,865 equivalent full-time jobs.4 Families participating in USAID programs raised their licit incomes by 24% between 2009 and 2010. Poverty levels of direct beneficiaries decreased by 25%, from 65.7% in 2008 to 49% in 2010. These remarkable results were achieved through a series of interventions now known as the San Martin Model.

C.3 OBJECTIVES

The principal objective of the activity will be to promote and sustain licit local development in communities formerly dependent on an illicit economy. USAID/Peru plans to fund the New Alternatives program over the next 4 years as a component of the Mission’s multi-instrument alternative development portfolio in order to deliver a program of economic and social benefits that will assist in sustaining the decision of the population to adopt licit lifestyles for the long term. The Country Development & Cooperation Strategy: 2012-2016 (CDCS) between the United States Government (USG) and the GOP will constitute the framework for the activity.

The CDCS establishes three development objectives for Peru: (1) Sustainable, coca-free economic and social model adopted by communities in targeted regions; (2) Governance improved in targeted regions; and (3) Natural resources sustainably managed in targeted regions. This program will contribute primarily to development objective one, but also will support development objective two.

C.4 PROGRAM COMPONENTS AND REQUIRED RESULTS

The Mission has identified the following project components and minimum associated results as measures of success towards the principal objectives. Minimum target levels are also defined.

Additional results may be incorporated upon contract award.

The primary objective of this program is to reduce illicit coca cultivation in Peru. While the overall thrust of the strategy in relation to counter narcotics and alternative development is not anticipated to change substantially, the contractor should be able to anticipate and respond to some shifts resulting from potential political, security, and market influences. Therefore all program components and required results should focus on achieving the following overarching result:

The cumulative retention rate of households who have signed coca-free agreements and have permanently stopped coca cultivation is maintained at a minimum of 80%.5

1. Transitioning Communities – 80% of program effort

USAID seeks that a significant number of newly-eradicated communities give up coca, sign coca-free agreements with the GOP, and enroll in programs that provide social and economic

4 USAID has ongoing programs to support oil-palm and coffee value chains. This program is expected to focus primarily on cacao, with coffee only when geographically appropriate. Oil palm will not be considered under this program.

5 This includes both households that sign agreements under this program, and the 81,500 families who have signed agreements since 2002, all of whom are within San Martin, Ucayali, and Huanuco.

assistance. Achieving this requires self-perpetuating growth in the private, for-profit agricultural sector; strong, transparent agricultural NGOs6; and responsive, capable government institutions.

The purpose of this component is to manage the transition of former coca-growing communities to the licit economy and to build the capacity of DEVIDA to lead this transition in the future.

USAID expects the program to build the capacity of DEVIDA to increasingly manage this process, so that by the conclusion of the program, DEVIDA is in the lead with the contract in a supporting role. USAID & DEVIDA’s strategy for supporting farmers through the transition process is summarized here:

1. First Contact - as quickly as possible following the eradication of illicit coca within a community, community organizers and social promoters enter the community to develop relationships, evaluate potential interventions, and identify community needs. This should occur within 1-4 weeks following eradication as conditions permit.

2. Community Organization - in collaboration with DEVIDA and other institutions (including partners from the national and sub-national GOP, other USAID programs, other donor programs, and the private sector) the contractor will bring communities together and explain opportunities to join the licit economic and social sector. This explanation will culminate in the drafting of a community-specific development plan.

Through on-the-ground organization and communication campaigns, communities learn about the economic and social benefits of giving up coca cultivation.

3. Negotiate Agreement - the program will facilitate the signing of individual and community-level coca-free agreements between households, communities, and the GOP (represented by DEVIDA.) At the time of signing, the contractor will formalize the development plan described in step two, ensuring all parties - households, communities, the GOP, and service providers - are committed to, and have the capacity to, follow-through on the agreement. The negotiation and signing of coca-free agreements with communities is part of Peru’s national counter-narcotics (CN) strategy, and is described by DEVIDA (as translated by USAID) as, “active participation of small farmers who have abandoned illicit crops in the design and selection of the legal crops they will plant.”7 The program will ensure that farmers actively participate in the negotiation of assistance packages, while building DEVIDA’s capacity to negotiate agreements independently.

While the negotiation and signing of agreements is a DEVIDA function, the national CN strategy identifies that a lack of resources and institutional weaknesses are the limiting factors for DEVIDA-led alternative development assistance. This program should build the capacity of DEVIDA’s field offices to deliver the GOP’s CN strategy.

4. Transfer Relationships – the program will transfer community relationships to other partners, including the for-profit agricultural sector, agricultural NGOs, and government institutions. At the same time, the contractor is expected to provide a limited number of low-cost, high-impact immediate assistance to communities to publicly demonstrate the positive effects of going coca-free. The contractor will continue to engage with communities to ensure that commitments made under the community development plan are being honored. The program must ensure that short-term commitments made to newly-coca free communities are fulfilled, even if this requires direct intervention and assistance delivery.

6 Agricultural NGOs include cooperatives, associations, industry groups, trade associations, etc.

7 Government of Peru, National Drug Control Strategy 2012 – 2016

5. Capacity Building - the contractor will build the capacity of relevant government and non-government organizations (including for-profit and not-for-profit) to provide long-term, sustainable assistance to former coca growers. The contractor is expected to support organizations to develop professional management, transparent practices, and strong financial controls. The contract will improve beneficiary’s organizational and financial stability. Furthermore, institutions should increase their capability to resolve their own legal, accounting, regulatory, and tax problems. The contractor is expected to maximize the efficiency of capacity-building assistance resources by targeting efforts on organizations that have the greatest potential but require smaller interventions. The contractor is expected to suggest which organizations are best suited to benefit from assistance using the following guidelines. Efforts should be appropriately divided between government and non-government organizations.

At the national level, the contractor is expected to focus on national agricultural associations and institutions that improve the value and sales volume of alternative development crops across Peru.

At the sub-national level, the contractor is expected to work with for-profit, not-for-profit, and government institutions. In addition to promoting the value and sales volume of alternative crops, these efforts should also focus on ensuring that targeted institutions are equipped to support the health, education, infrastructure, and other non-agricultural community needs. Potential partners include:

Non-Government Organizations Agricultural cooperatives and producer organizations Buyers, brokers, and manufactures of alternative crops CITE Cacao and other technical agricultural training centers Health, education, and other social services organizations that support communities

Government Institutions Regional Governments of San Martin, Huanuco, and Ucayali.

The sub-regional governments within San Martin, Huanuco, and Ucayali.

DEVIDA’s field offices in San Martin, Huanuco, and Ucayali Regions8

A variety of interventions and activities will be required to achieve the objectives of this component and those interventions will be incorporated in this contract award. However, at minimum, the following results must be attained:

● A minimum of 3,500 new households per year agree to sign coca no-replanting agreements with DEVIDA. (Households may only be counted towards this indicator if more than 50% of the households in their community have signed coca-free agreements)

● There is a minimum 5,500 annual increase in membership in agricultural NGOs.

● Farm-gate sales of licit crops for newly coca-free families reach $10,000,000 per year minimum, starting at the end of year three.)

8 DEVIDA’s field offices are sometimes referred to as “zonal” offices.

2. Communications for Results – 20% of program effort

USAID seeks a diverse, multi-media communication program that will: increase awareness of alternative economic opportunities and the risks of narco-trafficking; shape public opinion and political debate on counter-narcotics by debunking myths and promoting facts; and increase sales of licit crops. Achieving this will require a variety of interventions and achieve, at minimum, the following results:

● At a minimum, 50% of the population of San Martin, Ucayali, and Huanuco perceive coca as an impediment to development by end of year 1, increasing to a minimum of 60% by end of year 2 and 75% by end of years 3 and 4.

The contractor’s communication efforts are expected to focus primarily on the populations in the target areas, with the aim of encouraging alternative crop production; increasing membership in agricultural and community organizations; and ensuring commitment to licit lifestyles. The contractor is expected to use an assortment of strategies, methodologies, and communication approaches, including strategic alliances, community mobilization, education through entertainment, and advocacy. The contractor is expected to provide for USAID’s approval a communications portfolio which is best suited to achieve the objective and results described above. These may include but not be limited to:

Radio & Television: public service announcements, radio dramas, journalist training, radio networks, “education-entertainment”- type programs, television mini-series, outreach to regional media, media tours, etc.

Print media: technical training materials, community newspapers, journalist training, billboards, outreach to regional media, media tours, etc.

Regional and national Public events: trade shows, “education-entertainment”- type activities, business plan competitions, etc.

Social media: YouTube, Facebook, Twitter, etc.

C.5 GRANTS UNDER CONTRACT

This program will utilize Grants-Under-Contract (GUCs) to non-governmental organizations as a mechanism to support the achievement of the results expected under the program components detailed above and to install a limited amount of alternative crops (approximately 750 hectares per year), depending on USG priorities.

Large-scale installation of alternative crops is not envisioned in this program. USAID and the GOP have other programs that will install approximately 10,000 ha per year of alternative crops, including 7,000 ha of cacao. As described above, the contractor is expected to manage the transition of farmers to licit crops and build the capacity of Peruvian institutions to support this transition. However, in the case that other USAID and GOP partners are unable to follow-through on negotiated commitments to install alternative crops, the contractor will be expected to respond. The contractor is expected to install alternative crops (primarily cacao, but other high-value crops as appropriate) when, following consultations with USAID, Peruvian organizations have not been able to complete the installation of crops as negotiated at the time a coca-free agreement was signed. Alternative crops (cacao, coffee, or oil palm) will be installed according to the agricultural best practices and technical specifications defined and available from the Government of Peru.

USAID/Peru will be significantly involved in establishing selection criteria and must approve the actual selection of grant recipients, including any decisions to award grants based on exclusive or predominant capability. One of the key selection criteria must be the degree of cost sharing or leveraging with the benefitting entity. Grants should not cover the entire cost of an activity or project. It will be the responsibility of the contractor to make the best use of USAID grant contributions by seeking creative ways to leverage USAID funds in any activity being implemented.

In awarding grants under this contract, the Contractor must comply in all material respects with USAID’s Automated Directives System (ADS) Part 303 in awarding and administering grants, as well as 22 CFR 226 to the extent that it may be relevant to such grants. Additional conditions apply – please refer to Section H. Total grants awarded to non-governmental organizations under the contract shall not exceed the grant budget line. All grants must be closed-out by the Contractor prior to the estimated completion date of this contract. The Contractor must comply in all material respects with Contract Information Bulletin (CIB) 90-12 regarding grant close-out.

Grant management activities to be undertaken by the Contractor will include, but not be limited to, the following:

Develop and standardize a format for application submissions, which is consistent with

USAID guidelines. This will include establishing administrative management procedures to ensure the expeditious processing and review/recommendation of applications. This will be carried out by developing an USAID-approved Grants Management Manual that clearly outlines the types of grants being offered, eligibility requirements, proposal requirements, managements requirements, accounting and financial imperatives, reporting, close-out, Regulation 216 requirements, etc.;

When formally requested by the COR, the Contractor shall solicit applications from non-governmental organizations interested in the activities as provided;

Chair the technical review committee evaluating applications made under the grant program.

In this capacity, the Contractor shall include review, summarize and categorize the proposals for consideration by USAID in line with ‘’minimum’’ proposed evaluation criteria that will be proposed by the Contractor and approved by USAID.

The Contractor shall also coordinate with the COR on the scheduling of selection meetings during which USAID, and partners if appropriate, will meet to review applications;

Communicate with non-governmental parties interested in and/or submitting applications to assist in any modifications to the documentation needed to comply with USAID submission procedures; and notify applicants as to USAID actions and decision on whether or not to provide funding for proposed activities.

Carry out any necessary pre-award actions with respect to the proposed grantees, such as financial reviews, assessment of management capability, in accordance with criteria to be provided by USAID;

Negotiate and execute grants, with USAID-approved organizations, to implement their applications (with respect to grants, terms of each agreement shall include an agreed upon mechanism for making a grantee contribution in support of Grant objectives);

Ensure post-award management provided in accordance with the relevant regulations, including but not limited to reporting, audits, etc. in accordance with USAID directives and policies;

Monitor grantee contributions and adherence to Regulation 216 requirements as necessary;

and, Close out all grants in accordance with the Contractor’s requirements.

C.6 GEOGRAPHIC FOCUS

The contractor is expected to focus on the coca-producing areas of Ucayali, Huanuco, and San Martin Regions. This includes areas where programmed eradication has taken place and areas likely to be eradicated, currently the Huallaga Valley (HV) and the Pullcalpa-Tingo Maria corridor. Unfortunately, and for many reasons, it is difficult to predict with certainty which communities might present opportunities for the program even in calendar year 2012, much less in the out years of the program. For example, as the GOP expands programmed eradication in Huanuco Region, especially into the Monzon, the contractor is expected to aggressively follow and reach communities as quickly as possible following eradication. This lack of certainty presents a challenge, but highlights the requirement for the contractor to demonstrate its ability to implement with a high degree of flexibility, adaptability, and creativity.

The contractor is expected to design and implement program activities in different communities within the HV and Pullcalpa-Tingo Maria corridor as opportunities arise. It is not envisioned that the contractor will need to have a physical presence in the Apurimac and Ene river valley (VRAE), however the contractor is expected to deliver limited assistance to communities in the VRAE, through a GUCs (or another mechanism) if the security situation in VRAE improves to a level roughly equivalent to the security levels of the HV in early 2012.

While the focus of this program remains in the HV and Pullcalpa-Tingo Maria corridor, maintaining national influence is necessary to achieve the required results. The contractor is expected to operate as necessary in Lima, other commercial centers, and nationally.

C.7 GUIDING PRINCIPLES

Below are guiding principles that apply to all activities under this contract. The contractor must ensure that they are reflected and fully incorporated in the Project’s activities.

1. Learn from Past Experiences: The San Martin Model is USAID’s strategy for alternative development in Peru. The contractor is expected to build on the work of previous programs to continue expanding the model in Ucayali and Huanuco to achieve broader impact while strengthening it in San Martin. The San Martin Model has been documented by the United Nations Office on Drugs and Crime (UNODC) in their study “El Modelo de Desarrollo Alternative de la Region San Martin” and by Macroconsult, a leading Peruvian consulting firm, in their book “Drug Trafficking: the Threat to Peru’s Sustainable Growth.”9

There is an excellent pool of local talent in Peru. Contractors should build upon existing knowledge and resources and should strive to continue expanding and strengthening such a

9 The UNODC study is available online.

Offerors should consult Macroconsult to obtain a copy of its study.

base. Nevertheless, new and innovative suggestions to further alternative development are highly encouraged.

2. Advance Aid Effectiveness and USAID Forward: The contractor is expected to address how the technical approach supports USAID Forward objectives, as appropriate. Consistent with the Paris Declaration on Aid Effectiveness and the Accra Agenda for Action, USAID Forward promotes innovation, working with new partners, and a focus on results. One component of USAID Forward is Implementation and Procurement Reform, which calls for streamlining USAID’s business processes, building the capacity of local organizations and institutions, and, where appropriate, using host country systems. Further information on USAID Forward is at USAID’s website. (http://forward.usaid.gov/)

USAID designed this program in collaboration with DEVIDA to ensure that the activities respond to Peru’s needs and have institutional support and participation. In accordance with USAID Forward, the Project must strengthen the capacity of targeted sub-national governments and organizations.

3. Ensure Sustainability from the Beginning: The contractor is expected to address the sustainability of proposed interventions. Proposed strategies for increasing sustainability may include a plan for graduating program beneficiaries from assistance, and/or increasing private-sector and GOP resources and capacity to deliver future alternative development assistance.

4. Coordinate with Host Country Counterparts: The contractor is expected to coordinate all of its work with DEVIDA and appropriate sub-national government authorities, under USAID’s leadership and direction. Transitioning communities is a large component of this program;

however, throughout implementation, the contractor is expected to build DEVIDA’s capacity to take over this responsibility. By the conclusion of this program, DEVIDA should be appropriately leading the engagement with newly eradicated communities to convince them to sign coca-free pledges.

5. Develop Local Capacity: The transference of knowledge, abilities, and skills as part of organizations’ capacity development will not be merely desirable under this project – it must be fully integrated and evident into the implementation approach. Whenever implementation efforts are sub-contracted, the contractor must first consider involving Peruvian organizations in a manner that is meaningful and that will help ensure their sustainable development.

Subcontracting awards must be made with the goal to build their capacity so that they have the capacity to compete in future funding opportunities.

6. Coordinate with Other USAID Projects: The contractor, under USAID’s leadership is expected to coordinate with other donors that have Alternative Development and/or value-chain-related projects. The contractor is expected to coordinate its implementation with other USAID and other Donor-funded activities in the same areas, as well as with programs funded by local, regional and national governments. The contractor is expected to take into account GOP programs and ensure that USAID-funded program activities reinforce rather than replace GOP efforts. Other USAID activities are listed below:

Program Name Partner Type Start Date

End Date

Plan Operativo Reforzamiento Institucional DEVIDA IL 01/01/12 12/31/12 AD in the Regions of San Martin and Huanuco UNODC

PIO

Grant 07/14/06 01/31/14

Economic Development Alliance for San Martin TechnoServe Co-AG 10/28/10 10/27/13 Strengthening the Coffee Value Chain in Peru ACDI/VOCA Co-AG 02/01/11 09/30/13 Strengthening Institutions and Policies Consultandes Contract 9/18/2008 06/30/13

4. Address Security Risks: The Peru 2012 Crime and Safety Report, produced by the U.S.

Embassy Lima Regional Security Office (RSO), available from (www.osac.gov,) provides a description of the security situation in the regions in which this program will operate. The contractor will operate almost exclusively within the Peruvian-government-declared emergency zone of the HV and Pullcalpa-Tingo Maria corridor. Furthermore, the U.S. Department of State rates Peru CRITICAL for crime due in part to the country having one of the highest reported crime rates in Latin America. U.S. Embassy Lima regularly publishes security reports and messages on its website (http://lima.usembassy.gov/) and through the Overseas Security Advisory Council (OSAC). The contractor will address program security risks and propose mitigation measures, including coordination of security matters with US Embassy security personnel (through OSAC), the GOP (at national and sub-national level,) and other USAID partners operating in the regions.

The contractor will provide support to GOP and other officials participating in program-related site visits and monitoring and evaluation activities.

5. Conflict Prevention Efforts: This project will be implemented in communities that may have experienced or are vulnerable to social conflict. Coca cultivation for illicit purposes, environmental conflict, and culturally-insensitive public service delivery all can be sources of tension and destabilizing factors. By promoting best practices such as participatory and responsive governance and increasing rural, isolated communities’ access to quality services and resources, the contractor is expected to contribute to conflict prevention and mitigation efforts writ large.

6. Equitable Participation of Marginalized Groups should be a Central Focus: The contractor must carefully consider how to promote equitable engagement in and benefit from the program.