Contract_No._72052718C00001_-_Best_Management_Practices_fully_signed.pdf

ITEM NO. SUPPLIES/SERVICES QUANTITY UNIT UNIT PRICE AMOUNT

NAME OF OFFEROR OR CONTRACTOR

2 125

CONTINUATION SHEET

REFERENCE NO. OF DOCUMENT BEING CONTINUED PAGE OF

AECOM INTERNATIONAL DEVELOPMENT

72052718C00001

(A) (B) (C) (D) (E) (F)

0001 7,518,752.39BMPs first sub-obligation for contract:

Accounting Info:

BBFY: 2016 EBFY: 2017 Fund: DV OP: S_AMER_REG

Prog Area: A21 Dist Code: 530-M Prog Elem: A085

BGA: 530 SOC: 4100301

Funded: $4,413,126.00

Accounting Info:

BBFY: 2015 EBFY: 2016 Fund: DV OP: S_AMER_REG

Prog Area: A21 Dist Code: 530-M Prog Elem: A085

BGA: 530 SOC: 4100301

Funded: $2,325,580.39

Accounting Info:

4100301 BBFY: 2014 EBFY: 2015 Fund: DV OP:

S_AMER_REG Prog Area: A21 Dist Code: 530-M Prog

Elem: A085 BGA: 527 SOC: 4100301

Funded: $280,046.00

Accounting Info:

4100301 BBFY: 2016 EBFY: 2017 Fund: DV OP:

S_AMER_REG Prog Area: A21 Dist Code: 530-M Prog

Elem: A085 BGA: 527 SOC: 4100301

Funded: $500,000.00

AUTHORIZED FOR LOCAL REPRODUCTION OPTIONAL FORM 336 (4-86)

Sponsored by GSA

FAR (48 CFR) 53.110

Contract No. 72052718C00001 Best Management Practices

LIST OF ACRONYMS

A&A Acquisition and Assistance ADA Americans with Disabilities Act ADS Automated Directives System AIDAR Agency for International Development Acquisition Regulation AREP Amazon Regional Environmental Project AWP Annual Work Plan BDS Bio Data Sheet BMP Best Management Practices CCN Country Cooperating National CDCS Country Development Cooperation Strategy CFR Code of Federal Regulations CLIN Contract Line Item Number CIB Contract Information Bulletin CO Contracting Officer COR Contracting Officer’s Representative COP Chief of Party CPARS Contractor’s Performance Review Report System CPFF Cost Plus Fixed Fee CST Contractor Salary Threshold CV Curriculum Vitae DBA Defense Base Act DCA Development Credit Authority DDL Development Data Library DEC Development Experience Clearinghouse EMMP Environmental Mitigation and Monitoring Plan FAC Federal Acquisition Circular FAPIIS Federal Awardee Performance Integrity Information System FAR Federal Acquisition Regulation FY Fiscal Year G&A General and Administrative GAO Government Accountability Office GUC Grants under Contracts HAC Health and Accident Coverage IDIQ Indefinite Delivery, Indefinite Quantity Contract IEE Initial Environmental Examination IPN Implementing Partner Notices IIRSA Regional Infrastructure of South America LAC Latin American and the Caribbean LED Low Emissions Development LGBTI Lesbians, gays, bisexual, transgender and intersex people MEL Monitoring, Evaluation and Learning

NGO Non-governmental organization NICRA Negotiated Indirect Cost Rate Agreement OAA Office of Acquisition and Assistance OSDBU Office of Small and Disadvantaged Business Utilization OU Operating Unit PIRS Performance Indicator Reference Sheet PWS Performance Work Statement QASP Quality Assurance Surveillance Plan REDD Reducing Emissions from Deforestation and forest Degradation REO Regional Environment Officer RFMO Regional Financial Management Office RSD Regional Sustainable Development SAR South American Region SOO Statement of Objectives SOW Statement of Work RC Results Chain RFP Request for Proposals RFTOP Request for Task Order Proposal SF Standard Form TBD To be Determined TCN Third Country National TO Task Order TOC Theory of Change TRAINET Training Results and Information Network UNPFII United Nation Permanent Forum of Indigenous Issues USAID United States Agency for International Development USG United States Government

TABLE OF CONTENTS

LIST OF ACRONYMS 3

PART I – THE SCHEDULE 7

SECTION B – SUPPLIES OR SERVICES AND PRICES/COSTS 7

B.1. PURPOSE 7

B.2. CONTRACT TYPE AND SERVICES 7

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

B.4. CONTRACT BUDGET AND CEILINGS 8

B.5. INDIRECT COST 9

B.6. MINIMUM/MAXIMUM ORDERING AMOUNT (CLIN 0002) 10

B.7. COST REIMBURSABLE 10

B.8. MULTI-YEAR CONTRACT 10

SECTION C – PERFORMANCE WORK STATEMENT 11

C.1. TITLE OF ACTIVITY 11

C.2. DESCRIPTION OF ACTIVITY 11

C.3. OTHER CONTRACT REQUIREMENTS 40

SECTION D– PACKAGING AND MARKING 43

D.1. AIDAR 752.7009 MARKING (JAN 1993) 43

D.2. BRANDING POLICY AND STRATEGY 43

SECTION E – INSPECTION AND ACCEPTANCE 44

E.1. NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE 44

E.2. INSPECTION AND ACCEPTANCE 44

E.3. QUALITY ASSURANCE SURVEILLANCE PLAN (QASP) 44

SECTION F – DELIVERIES OR PERFORMANCE 45

F.1. NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE 45

F.2. PERIOD OF PERFORMANCE 45

F.3. PLACE OF PERFORMANCE 45

F.4. PERFORMANCE STANDARDS 45

F.5. KEY PERSONNEL 46

F.6. REPORTS AND OTHER DELIVERABLES 47

F.7. FIXED FEE PAYMENT SCHEDULE 57

F.8. AUTHORIZED WORK DAY/WEEK 59

F.9. IDIQ SUPPLEMENTAL ORDERING PROCEDURES (APPLICABLE TO CLIN

0002) 59

SECTION G – CONTRACT ADMINISTRATION DATA 61

G.1. NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE 61

G.2. CONTRACTING OFFICER – CONTRACTING OFFICER’S REPRESENTATIVE 61

G.3. CONTRACTOR’S PRIMARY POINT OF CONTACT 61

G.4. PAYING OFFICE 62

G.5. ACCOUNTING AND APPROPRIATION DATA 62

G.6. CONTRACTOR’S PAYMENT ADDRESS 63

G.7. ACCEPTANCE AND APPROVAL 63

G.8. CONTRACTING OFFICER'S AUTHORITY 63

G.9. TECHNICAL DIRECTION/RELATIONSHIP WITH USAID 63

SECTION H – SPECIAL CONTRACT REQUIREMENTS 66

PART II - CONTRACT CLAUSES 78

SECTION I – CONTRACT CLAUSES 78

I.1. NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE 78

I.2. NOTICE LISTING CONTRACT CLAUSES INCORPORATED IN FULL TEXT 82

PART III – DOCUMENTS AND OTHER ATTACHMENTS 85

SECTION J - LIST OF DOCUMENTS, EXHIBITS AND OTHER ATTACHMENTS 85

ATTACHMENT 1 - GENDER ANALYSIS AND GENDER STATEMENT

ATTACHMENT 2 - AMAZON REGIONAL ENVIRONMENT PROGRAM -

ILLUSTRATIVE INDICATORS

ATTACHMENT 3 – RAPID MOBILIZATION PLAN

ATTACHMENT 4 – CHARTS AND GRAPHICS INCLUDED AS ATTACHMENTS

TO PWS

ATTACHMENT 5 – INITIAL ENVIRONMENTAL EXAMINATION

PART I – THE SCHEDULE

SECTION B – SUPPLIES OR SERVICES AND PRICES/COSTS

B.1. PURPOSE

The purpose of this contract is to provide services described in the Performance Work Statement (PWS) specified in Section C to implement the “Promotion of Best Social and Environmental Management Practices in the Amazon Region” Activity (henceforth ‘the Activity’).

B.2. CONTRACT TYPE AND SERVICES

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

Under CLIN 0001, (not-to-exceed $18,796,881 CPFF), the Contractor shall furnish all personnel, materials, equipment, supplies, facilities, services (except expressly set forth in this contract as furnished by the U.S. Government (USG)) 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.

Under CLIN 0002, (not-to-exceed $4,700,000 CPFF), the contractor must furnish additional country-specific activities that are consistent with the objectives and results outlined in the Statement of Objectives but will be implemented at a bilateral level. These services will be ordered in accordance with Section F.9 entitled, “IDIQ SUPPLEMENTAL ORDERING PROCEDURES” and the applicable IDIQ clauses in Section I.

Combined, CLIN 0001 is a not-to-exceed $18,796,881 (CPFF); and CLIN 0002 is a not-to-exceed $4,700,000 (CPFF) for a total not-to-exceed (CPFF) of $23,496,881.

For the consideration set forth below, the Contractor must achieve the performance objectives and deliverables or outputs described in Sections C and F, and otherwise 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 $23,496,881.

(a) Estimated Cost and Fixed Fee for CLIN 0001

The Total Estimated Cost for this CLIN is $17,859,270, exclusive of fixed fee, if any. The fixed fee, if any is $937,611. The estimated cost plus fixed fee is $18,796,881.

(b) Estimated Cost and Fixed Fee for CLIN 0002

The total estimated ceiling cost and maximum fee of this CLIN is $4,700,000.

(c) Payment of Fixed Fee

The Contractor’s fixed fee is tied to the accomplishment of the deliverables under each CLIN and all terms and conditions of the award.

CLIN 0001 and CLIN 0002: Payment of fixed fee will be made upon receipt of a proper invoice and must directly correspond to the percentage of work being developed. 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.

The payment of the fixed fee is based on completion, acceptance and approval of the deliverables specified in Section C – Performance Work Statement, and Section F.7 of this Contract “Fixed Fee Payment Schedule.” Upon successful completion of each deliverable, the Contractor must provide evidence of its achievement to the COR and the Contracting Officer. Upon the COR’s acceptance and approval of the deliverable, the Contractor must submit an invoice for the amount of the fee associated with the deliverable.

(d) Amount Obligated

CLIN 001: Within the estimated cost plus fixed fee specified in paragraph a) above, 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 $7,518,752.39. 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 August 31, 2020.

CLIN 002: Within the estimated cost plus fixed fee (if any) specified in paragraph a) above, 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 $0.00. 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.

B.4. CONTRACT BUDGET AND CEILINGS

CLIN 0001

Estimated Cost $17,859,270 Fixed Fee $ 937,611 Total Estimated Cost Plus Fixed Fee $18,796,881

CLIN 0002

Estimated Costs $TBD Fixed Fee $TBD Total Estimated Cost Plus Fixed Fee $4,700,000

Total Estimated Cost plus Fixed Fee CLIN 0001 and CLIN 0002: $23,496,881.

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 shall be reimbursed on the basis of the following negotiated provisional or predetermined rates and the appropriate bases:

Description Rate Base Type Period Fringe Benefits 35.95% 1/ 1/ 1/ Occupancy 24.30% 2/ 2/ 2/ Overhead 1 57.70% 3/ 3/ 3/ Overhead 2 9.89% 4/ 4/ 4/ Overhead 3 1.77% 5/ 5/ 5/ G&A 4.94% 6/ 6/ 6/

1/ Base of Application: The fringe rate is applied to Direct and indirect labor (excluding holidays, PTO and other paid leave), including Overtime and Premiums, incurred by employees who are part of the applicable Fringe Pool and excludes CCN labor.

Type of Rate: Provisional Period: September 30, 2017 - until amended Source: DCMA FPR dated January 8, 2018

2/ Base of Application: This is applied total non-fringe labor associated with those employees residing at those facilities.

Type of Rate: Provisional Period: September 30, 2017 - until amended Source: DCMA FPR dated January 8, 2018

3/ Base of Application: This is applied to Direct Labor and B&P labor, incurred by employees who are assigned to the applicable Overhead 1 rate. The base includes CCN labor and excludes independent consultants.

Type of Rate: Provisional Period: September 30, 2017 - until amended Source: DCMA FPR dated January 8, 2018

4/ Base of Application: This is applied to direct labor, direct material, subcontracts, B&P Labor, ODC's, intercompany costs and the applicable Fringe Pool Cost, OH1 Pool Cost and

Occupancy indirect burdens applied to these direct costs which are incurred in the applicable OH 2 rate. The OH 2 base excludes grants.

Type of Rate: Provisional Period: September 30, 2017 - until amended Source: DCMA FPR dated January 8, 2018

5/ Base of Application: This is applied to direct labor, direct Material, subcontract cost, B&P labor, ODC's, intercompany costs and the applicable Fringe Pool Costs, OH1, OH2 and Occupancy indirect burdens applied to these direct costs which are incurred by the applicable OH3 rate. The OH 3 base excludes grants.

Type of Rate: Provisional Period: September 30, 2017 - until amended Source: DCMA FPR dated January 8, 2018

6/ Base of Application: This is applied to total cost input allocation base is comprised of direct labor, direct materials, intercompany costs, ODC's and associated indirect expense of Fringe, Occupancy and Overheads. The G&A base excludes grants.

Type of Rate: Provisional Period: September 30, 2017 - until amended Source: DCMA FPR dated October 2, 2017

B.6. MINIMUM/MAXIMUM ORDERING AMOUNT (CLIN 0002)

The minimum ordering amount for task orders issued under this award is $5,000. The maximum order amount of any single task order issued under this award may not exceed the total CPFF value of CLIN 0002.

B.7. 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, 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. Consequently, this contract is subject to the requirements of FAR 17.106. This is a CPFF Completion type contract where the Contractor is authorized to be reimbursed for all costs which are allowable in accordance with FAR 52.216-7, “Allowable Costs and Payment.” 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. Therefore, the cancellation ceiling established pursuant to FAR 17.106-1(c)(1) for each program year is $0.00.

[END OF SECTION B]

SECTION C – PERFORMANCE WORK STATEMENT

C.1. TITLE OF ACTIVITY

Promotion of Best Social and Environmental Management Practices in the Amazon Region Activity (hereafter also referred to as the “Activity”).

C.2. DESCRIPTION OF ACTIVITY

1.1 Technically Sound, Replicable and Sustainable Strategy

1.1.1 Context

Home to more than 33 million people, including 1.6 million indigenous people, the world’s greatest diversity of species, and one-fifth of the world’s forests, the Amazon’s social and ecological significance is difficult to overstate. With deforestation rates once again on the rise and climate change impacts disrupting ecosystem functions and threatening local livelihoods, government decision-makers are facing ever-greater challenges in setting priorities and designing interventions. Moreover, the impacts of investments in infrastructure and the extractives industries threaten irreversible harm to fragile ecosystems and indigenous peoples’ way of life.

Changing mindsets, changing practices in Amazon countries. Beginning in the 1980s, the research and facilitation efforts of global, regional and local non-profits, such as TNC, have been instrumental in changing the minds and mindsets of decision-makers in Amazon countries on the critical importance of ecosystem protection for the well-being of their citizens. This work, combined with the increased leadership of civil society, indigenous peoples, and communities, has created new platforms for promoting sustainable infrastructure. In addition, following the Rio Earth Summit in 1992, national governments undertook environmental legal, institutional and capacity reforms to improve frameworks for environmental regulation. Enforcing compliance with these new laws and regulations, however, remains an ongoing challenge due to capacity limitations, fragmented institutions and continuing opportunities for corruption.

Financial institutions adopt risk management tools. To manage risk in project finance, international financial institutions, such as the World Bank (WB), International Finance Corporation (IFC), and Inter-American Development Bank (IDB), have adopted new standards and procedures for financing infrastructure projects. The Equator Principles is a framework for managing environmental and social risk in project finance. Another important tool is the mitigation hierarchy tool to avoid, mitigate, rehabilitate/restore and offset. In this approach, interventions aim to avoid impact, and where this is not possible minimize duration, intensity and extent. Where impacts cannot be avoided or minimized, activities focus on rehabilitation or restoration of ecosystems, followed by offsets to compensate for residual adverse impacts.

Corporate stewardship and sustainable infrastructure. Driven in part by global environmental advances and bottom-line considerations, many firms have adopted new corporate policies that prioritize sustainability over regulatory compliance. In this “beyond compliance” paradigm, companies adhere to sustainability principles and exceed regulatory standards. The business case for this approach in relation to projects in the Amazon is clear. According to the IDB, for example, conflicts driven by environmental degradation, lack of community benefits, poor planning and inadequate consultation have led to project delays (81 percent of cases), cost overruns (58 percent of cases), project redesign (42 percent of cases) and project cancellations (18 percent of cases).

USAID Amazon BMP Activity: Leveraging private sector leadership. Despite the development of improved regulatory frameworks, action by civil society and communities, and private sector commitments, powerful economic forces continue to hasten the degradation of the Amazon. In articulating the new AREP, USAID has recognized that in addition to Agency efforts to strengthen the capacity of government and civil society, the private sector has an important role to play by championing the adoption of BMPs, especially in relation to megaprojects. By joining hands with key private sector partners, USAID will leverage the technology innovation and economic drivers that are implicit in private sector sustainability and corporate stewardship initiatives. Many leading companies recognize that stakeholder engagement is critical for the development of sustainable infrastructure projects.

1.1.2 Overall Strategy for Implementing the Theory of Change

AECOM and TNC propose a theory of change that addresses the threats to biodiversity identified in the AREP Situational Analysis. In section 1.1.3 we present individual theories of change for the sectors and geographies where we propose project interventions.

Theory of Change

Main drivers for the Activity. In considering the AREP Situational Analysis in Attachment 6 of the RFP, and based on our experience promoting sustainable infrastructure in the Amazon, AECOM and TNC have identified the principal threats to biodiversity, also referred to as “drivers” per USAID guidance, as follows: (1) seven drivers related to inadequate siting, design, construction and management of extractives and infrastructure projects; (2) weak enforcement of existing environmental and social regulations; (3) limited participation of indigenous peoples in decision-making about extractives and infrastructure projects; and

(4) inadequate land use planning. To implement the Activity, AECOM and TNC will promote the adoption of industry BMPs and environmental governance solutions that address these drivers.

Principal assumptions underlying the theory of change. Without strong regulatory incentives for adoption, raising industry and other stakeholder awareness of these BMPs and encouraging adoption can be a slow process. The usual mechanisms for introducing BMPs, such as technical assistance, industry guidance and market-driven technology diffusion can take many years. To accelerate BMP adoption in line with the timeframe of the Activity, therefore, AECOM and TNC propose a theory of change based on the following assumptions:

Leading private sector companies that operate in accordance with beyond-compliance principles have the credibility, experience and motivation to serve as champions in making the business and technical cases to other sector actors for adoption of BMPs;

Structuring engagement as stakeholder partnerships, which include indigenous groups, Principal Drivers for the Activity

Poor siting and design Poor road construction standards Preference for large hydro projects Poor waste management Poor mitigation and remediation standards Poor mining and drilling practices Poor labor standards and social safeguards Weak enforcement of existing environmental and social regulations

Limited participation by indigenous peoples in decision-making about extractives and infrastructure projects Inadequate land-use planning provides an effective framework for encouraging companies to make the commitments necessary to adopt BMPs and to follow through on those commitments;

Strengthening the capacity of government agencies to promote environmental compliance throughout the project cycle helps to create a level regulatory playing field and to reduce opportunities for corruption, which creates an improved enabling environment for companies to adopt BMPs; and, Efforts by business organizations and sector associations to disseminate information on best practices lead to a “tipping point” where BMPs and better governance solutions become standard practice across each sector and ultimately across the region.

Project cycle, industry BMPs and environmental enforcement. To address the main drivers in relation to the assumptions underlying the theory of change, the Activity will promote adoption of best practices throughout the entire project cycle, including the planning, siting, feasibility, design, construction, operations and closure phases per the mitigation hierarchy (see Figure 2). Interventions will promote the adoption and replication of both industry BMPs and environmental governance practices related to transparency, public participation and accountability. The Activity will also strengthen environmental enforcement and compliance through capacity building support for government agencies related to enforcement or voluntary initiatives such as industry self-reporting or community monitoring, which will engage indigenous groups, as appropriate. Illustrative activities may include industry-led workshops or technology demonstrations on innovative BMPs, toolkits and training on improved regional or sector planning strategies to enable better siting, or capacity support for governmental agencies on stakeholder participation in the licensing process.

Proposed theory of change. If leading companies serve as champions in promoting adoption of BMPs for megaprojects in the roads, hydropower, oil and gas, and mining sectors, and if private companies and other stakeholders, including indigenous organizations, form partnerships at the site level to engage counterparts through the collaborative sharing of experience and information, and if governments strengthen environmental compliance by promoting adoption of improved governance practices throughout the project cycle, then these companies will adopt BMPs and there will be a reduction in the negative social and environmental impacts of megaprojects. Further, if regional and country-based private sector associations promote adoption of BMPs, then there will be regional replication, resulting in reductions in forest loss, water system integrity and water contamination.

Figure 2: Project cycle and mitigation hierarchy

Results chain for the Activity. Our proposed strategic approach for addressing principal drivers is:

promote adoption of industry BMPs and environmental governance practices. The two main results for achieving the threat reduction result are (1) industry BMPs and environmental governance practices identified and adopted; and (2) industry BMPs and environmental governance practices replicated across the region. Section 1.1.3 describes the geographies and megaprojects where AECOM will promote adoption of BMPs and environmental governance practices. Attachment 4-A3 includes the results chains for interventions in those critical landscapes.

Overall Strategy

AECOM and TNC: Leveraging shared principles and complementary skill sets. To support USAID in implementing the Activity, AECOM and TNC have created a strategic partnership grounded in our shared commitment to sustainable infrastructure and USAID programming, as well as our complementary skill sets in infrastructure, biodiversity conservation and water resources protection. In implementing the Activity, AECOM will undertake contract management, lead private sector engagement and provide technical leadership in infrastructure services and water resources protection. TNC will lead environmental governance, biodiversity and forest conservation, and indigenous peoples and social inclusion efforts (see Attachment 4- A2 for expertise) Together, AECOM and TNC represent a formidable platform for implementing the Activity in partnership with a consortium of regional, national and local organizations.

Overall strategy: Champions, partnerships and evidence-based decision-making. AECOM and TNC propose an overall strategy for implementing the theory of change that emphasizes private sector engagement, evidence-based decision-making, stakeholder partnerships and collaborative platforms. In implementing these activities, we will operate at the site, country and regional levels to achieve results specific to the four sectors related to reduced deforestation, reduced hydrologic fragmentation and reduced water pollution loading. Key elements of our strategy include:

Engage champions from within AECOM networks and form Global Development Alliance

(GDA)-type arrangements;

Deploy quantitative tools for predictive modeling, BMP effectiveness and impact analysis;

Employ AECOM partnership approach at the site level to accelerate adoption of BMPs;

Establish advisory groups to set action agendas and promote environmental compliance;

Create sector coordinating bodies to advance BMP adoption and replication;

Replicate best practices through proven AECOM approaches; and, Promote sustainability through a BMP Scorecard, BMP Innovation Fund and CSR inputs.

What follows is a description of each element of our proposed strategy and proposed activities.

Figure 3 on the next page provides a summary of the theory of change in terms of the identification, adoption and replication of industry BMPs and environmental governance practices, and proposed activities, outputs and results.

Engage champions from within AECOM networks and form GDA-type arrangements. As detailed in Section 1.3, AECOM will establish a group of private sector champions across all sectors to serve as principal change agents for the Activity and structure engagement as GDA-type arrangements that leverage contributions from companies in terms of labor and other inputs.

Drawing on our global and regional reputation and existing client relationships, including our Key Client program, we will engage champion companies to make the business case for adoption of BMPs and share technical expertise on BMP implementation (see table 4 on page 22 for illustrative key clients). As part of the proposal development process, AECOM has reached out to AECOM key clients and received positive feedback on cooperation. In engaging these companies, we will undertake the following:

Facilitate executive roundtables with champions to promote adoption of best practices;

Organize BMP workshops and training with technical specialists on BMP implementation;

Organize BMP marketplace events linking BMP technology vendors and practitioners in

“speed-dating” format to introduce solutions and encourage early adoption;

Build on our WBCSD membership to leverage global and country networks and attract member interest; and, Partner with CG/LA Infrastructure, a leading proponent of sustainable infrastructure in the region, to host events and leverage their company membership.

Figure 3: AECOM approach to achieving project outputs and results

Deploy quantitative tools for predictive modeling, BMP effectiveness and impact analysis. At the site level, the AECOM team will employ a combination of quantitative tools and consultations to predict deforestation, watershed fragmentation and water contamination impacts and to evaluate the effectiveness of BMPs (see Attachment 4-A1). We will deploy in-house modeling capabilities developed by TNC and Imazon for deforestation and by AECOM for water resources and water pollution. Through this approach, we will Identify major threats to critical landscapes at the site level and identify more effective BMPs;

Estimate cumulative impacts across multiple projects to understand loss in biodiversity and migration of indigenous populations over time;

Utilize quantitative analysis to support a BMP Scorecard that evaluates site and BMP performance;

Build capacity of local stakeholders through hands-on training in use of satellite data and modeling tools; and

Raise awareness of threats through visual tools and maps.

Employ AECOM partnership approach at the site level to accelerate adoption of BMPs. Based on our extensive experience implementing USAID regional partnership projects, AECOM will accelerate the uptake of BMPs through partnerships where companies and other stakeholders, including indigenous groups, undertake joint activities grounded in mutual commitment and shared resources. Activities will include:

Facilitate consultations where stakeholders, including indigenous groups, prepare memoranda of understanding (MOU)s and work plans that define activities, roles, expected outcomes, timeframes and resources, including leverage;

Support engagement by private sector champions in sharing experience and information to demonstrate BMP benefits and create incentives for sector-wide adoption;

Implement practitioner-led BMP workshops and training with support from champions;

Develop BMP toolkits and/or on-site demonstration projects to support implementation;

Deploy our tested methodology for twinning partnerships between industry, government or community counterparts where “mentor” partners share experiences and tools; and Empower communities, indigenous peoples and women to engage throughout project cycle.

Establish advisory groups to set action agendas and promote environmental compliance. At the country level, AECOM will establish advisory groups with representatives from government, industry and civil society and indigenous groups, as well as USAID, with AECOM serving as the secretariat. The advisory groups will undertake the following:

Provide overall guidance, validate priority sector interventions and promote improved environmental enforcement and adoption of governance practices;

TNC: Using spatial analysis and predictive modeling to identify BMPs in Colombia

Worked with Colombia National Forest and Carbon Monitoring System since 2012 to collect spatial evidence and model impacts, including critical landscapes and risk maps

Compared scenarios of projected deforestation in the presence and absence of BMPs In Caquetá, mapped land use cover at local scales, conducted deforestation risk analysis, identified drivers of deforestation and devised an early warning system to predict critical areas at risk of deforestation

Imazon: Developing innovative monitoring technologies in the Amazon

Developed tools to monitor and measure forests via satellite mapping that at low cost monitored large swaths of the Amazon

Developed its signature Deforestation Alert System (SAD) to provide independent, trusted, monthly alerts of deforestation activity

Worked alongside the Brazil Programa Despoluição de Bacias Hidrográficas or Basin Restoration (PRODES) program monitoring system to identify deforestation and provided the data needed to stop it

Develop country action agendas that reflect priorities and interventions and review progress toward implementation; and

Host targeted capacity building initiatives on environmental compliance and governance practices, such as participatory planning, industry self-reporting and citizen monitoring, which will include participation by indigenous groups and indigenous communities.

Create sectoral coordinating bodies to advance BMP adoption and replication. To create platforms for sector innovation and to promote BMP replication, AECOM will partner with national industry associations, many of which are AECOM consortium members, to serve as sectoral coordinating bodies. Table 3 on page 18 lists these groups, which collectively will undertake the following:

Identify BMPs, consolidate sector viewpoints, make the case for adoption and promote widespread replication through their membership and networks;

Convene or host roundtables to assess BMP effectiveness and support adoption; and, Conduct BMP training activities and engage decision-makers on specific BMPs.

Replicate best practices through proven AECOM approaches. AECOM will apply replication methodologies developed through the implementation of USAID regional projects in water resources management, environment, energy and climate change, such as, PARA-Agua, ECO-Asia and Adapt Asia Pacific. As indicated in Figure 4, we will promote replication of industry BMPs both throughout each country and across the region, and will promote replication of environmental governance practices across sectors throughout each country and across the region. Where possible, we will engage partners from non-presence countries, including Guyana and Suriname, to participate in regional meetings, communities of practice and other information sharing activities. Principal activities will include:

Organize regional annual forums, trainings and other networking events;

Undertake media and social media activities to share outcomes;

Develop a website, virtual communities of practice and knowledge products; and Create awards recognizing leadership, BMP effectiveness and community engagement.

AECOM: Promoting environmental enforcement and compliance in Asia

Implemented 7 year, $30million USAID Environmental Cooperation (ECO)-Asia project focused on environmental governance

Established the Asian Environment Compliance and Enforcement Network (AECEN) with 16 member agencies across Asia

Facilitated adoption of 50 environmental policies, laws and regulations

Replicated 20 model actions across Asia Trained 4,000 practitioners in environmental enforcement

Figure 4. Replication across sectors and geographic scales

Promote sustainability through BMP Scorecard, BMP Innovation Fund and CSR inputs.

By structuring interventions as partnerships and emphasizing good governance, AECOM and TNC will engage a wide range of stakeholders, including indigenous peoples, which will result in more sustainable projects. Other strategies and tools that will advance sustainability include:

Developing a BMP Scorecard to measure BMP effectiveness and project performance per metrics for environmental impact, innovation and stakeholder collaboration;

Establishing a BMP Innovation Fund as a flexible mechanism for engaging local organizations, including indigenous groups, in implementation and for building their capacity to become project legacy organizations; and, Capturing CSR funding from AECOM and other leading companies through a GDA-type framework that will ultimately support legacy organizations.

1.1.3 Sectoral/Geographic Theories of Change

Identifying High Priority Landscapes and Target Megaprojects

Identifying high priority landscapes. To identify target geographies, AECOM and TNC applied the criteria for high priority landscapes provided in Attachment 1 to the RFP. We identified high priority landscapes that are rich in biodiversity and provide crucial ecosystem services, as well as cultural benefits. As a next step, we identified the nexus between these landscapes and imminent threats from planned or operational megaprojects. Recognizing the connectivity between terrestrial and aquatic ecosystems, we then selected target watersheds within the landscapes that are facing the cumulative impacts of multi-sectoral development.

Selecting target megaprojects. To identify megaprojects in the landscapes, AECOM and TNC evaluated planned and existing megaprojects for their potential for negative impacts. To enable a broad application of BMPs, we identified megaprojects at various stages of the project cycle.

Finally, to enable rapid and effective implementation, we prioritized projects in areas where AECOM or TNC have past or ongoing activities. Table 1 below and Figure 5 on page 9 present the proposed target landscapes and megaprojects. Upon award, AECOM will consult with USAID and other stakeholders to confirm priority target landscapes and megaprojects, including the La Granja mine, to ensure sustainable outcomes and promote regional adoption of BMPs.

Table 1: Proposed target high priority landscapes and megaprojects Critical Landscape Roads Hydropower Oil & Gas Mining

Tapajós – Brazil Br-163 (IIRSA) São Manoel Dam

Jatoba DAM Tocantinzinho

Caquetá – Colombia Roads connected to oil and gas sites Bloque Nogal Oil Exploration Area

Sur de Meta-Guaviare – Colombia

Marginal de la selva

(IIRSA)

Marañón – Perú Iquitos-Saramiriza Block 192 La Granja

Sectoral/Geographic Theories of Change and Results Chains

For each of the nine proposed interventions in the high priority landscapes shown in Table 1, AECOM and TNC have prepared results chains per the USAID Biodiversity Programming guidance, identifying the strategic approaches, actions, results, threat reduction results and biodiversity focal points. For each results chain, we have identified specific BMPs and environmental governance practices for which we will promote adoption and replication. We have also indicated some of the partners with whom we plan to cooperate. Attachment 4-A3 presents these results chains.

Figure 5. Target Landscapes

Roads

Roads are a leading driver of deforestation in the Amazon due to deforestation, erosion, land use changes and cumulative impacts. Despite these threats, governments continue to push roads to catalyze growth and shore up political support. The planned Iquitos-Saramiriza Road in Perú, for example, promises to connect remote Amazonian areas with the rest of the country. In Brazil, roads respond to demands from agribusinesses, while in Colombia, they are part of the peace agreement. Due to their potential to transform high priority landscapes, AECOM and TNC will prioritize road interventions. The following table summarizes proposed target megaprojects, illustrative BMPs, results and deliverables.

Summary of Proposed Roads Sector Megaprojects, BMPs, Results and Deliverables River Basin (Country) Megaproject Name Status Area of Impact Tapajós (Brazil) BR-163 (IIRSA) Construction 2,781 km Sur de Meta-Guaviare (Colombia) Marginal de la selva (IIRSA) Construction 305 km (area of interest only) Marañón (Perú) Iquitos-Saramiriza (non-IIRSA) Planned 700 km Illustrative Sector BMPs Planning: Analyze lower-impact alternative such as waterway or railways, provide a strong rationale (there are many “roads to nowhere” in the Amazon) and assess the road’s direct, indirect and cumulative impacts Siting/pre-design: Account for potential effects across the affected territory, particularly in protected and environmentally-sensitive areas and the lands of indigenous peoples, as well as areas where high-value biodiversity is not yet protected Pre-feasibility/Feasibility/Design: Engage communities early to reduce the risk of conflict, which can lead to cost overruns, delays and reputational damage. Incorporate considerations of potential impacts and environmental considerations into the project design Construction: Use tested BMPs to avoid (e.g., time activities to ecosystem functions) and minimize (e.g., technologies, monitoring) impacts Expected Results Reduced deforestation and forest fragmentation by (IIRA) roads in high priority landscapes Reduced indirect contribution to deforestation and forest fragmentation by IIRSA roads in high-priority landscapes as a result of immigration, invasion and other uses resulting from increased access Reduced deforestation and forest fragmentation in high priority landscapes from new, secondary roads built off of IIRSA roads.

Deliverables Site-level MOUs with work plans, including priority actions, roles, responsibilities, outcomes, indicators, resource commitments & timeframe Country-level work plans, which setting sector and BMP priorities

Tapajós (Brazil) – Roads

Facing funding shortfall and opposition from civil society, the Empresa de Planejamento e Logística (EPL) and Department of National Transport Infrastructure (DNIT) are working to make roads more sustainable. Today, transportation projects in the Tapajós Basin are driven by demands for efficient transport routes for agricultural commodities out of Mato Grosso. One such road is BR-163, and specifically the Sinop-Santarem stretch affecting 12 protected areas, the Jamanxin National Park and the lands of 24,000 indigenous peoples. The Brazilian Army Forces is paving the road without

TNC: A Guide for Good Practices in Environmentally Friendly Roads

TNC and Latin America Conservation Council (LACC) created this guide to provide science- based practices in road construction. It promotes a life cycle approach to addressing the impacts of roads and shares good practices from the planning to maintenance, including engineering solutions and compensation. As appropriate, we will draw on these proven practices in the roads sector.

Brazil Roads – Br-163

Key Threats

Direct deforestation, indirect due to land use changes Illegal occupation of protected areas Obstruction and fragmentation of rivers and wildlife Spikes in social conflicts over land

Potential Partners

Private sector: Investors (Cargill, Bunge, ADM, etc.)

ANEOR (roads association)

Government: Min. of Transport, Army, DNIT, EPL, consideration of river or wildlife passages or the BR-163 Sustainable Development Plan, approved by the government in 2006.

Brazil Roads – BR-163 Possible Industry BMPs Apply special techniques when crossing riparian areas, such as designing creek and river crossings with erosion protection to allow for the passage of fish and other wildlife, drawing on FGV’s work to develop a methodology for the construction of sustainable roads Support enactment and adherence to the BR-163 Sustainable Development Plan Clarify how BR-163 is connected to the railway EF-170 (Ferrogrão) Promote the Guidelines for Good Practices with Indigenous Peoples, developed by the Business & Indigenous Peoples Dialogue Initiative Possible Enforcement, Compliance and Governance Practices Develop filters for ranking and approving projects from the 1950s/60s plans Promote the use of strategic environmental assessments (SEAs) Assess licensing process (e.g., tranche licensing, lack of licensing for maintenance projects); refine the definition of “maintenance” Put in place technical criteria for assessing impacts and mitigation measures, taking the Br-319 as a case

Sur de Meta-Guaviare (Colombia) – Roads The Government of Colombia aims to deliver new roads per its National Development Plan 2014-2018 and peace agreement. We propose the Marginal de la Selva (MdS), a planned Initiative for the Integration of Regional Infrastructure in South America (IIRSA) road, with a focus on the 305 km portion between San Vicente del Caguán (Caquetá)-La Macarena (Meta)- San José del Guaviare (Guaviare) and Puerto Arturo (Guaviare) managed by the National Roads Institute (INVIAS) and the Departments of Meta and Guaviare.

Parts of the road have been built without a license, posing threats like the illegal removal of land cover.

Colombia Roads – Marginal de la Selva

Incorporate design features to allow for multiple forest corridors that can maintain the connection between the Andes and Amazon Analyze the consequences of disconnecting the Andes and the Amazon, develop solutions for remediation and compensation.

Design and implement a compensation plan for loss of vegetation and the exclusion of areas from forest reserves Manage the MdS to control development of secondary and tertiary roads that could become deforestation corridors.

Enact community engagement guidelines; promote use of Guidelines for Good Corporate Practices with Indigenous Peoples Possible Enforcement, Compliance and Governance Practices Assess licensing procedures, especially for improvement projects, which are subject to less onerous environmental oversight Discuss planning best practices, including the use of SEAs Develop guidelines for a monitoring system, engaging environmental authorities, academic partners and local communities Develop a biodiversity offsets manual adapted to local conditions and train authorities, civil society and sectoral associations on its use Promote the use of geospatial technologies to monitor environmental change and guide environmental management

Marañón (Perú) – Roads

Poorly planned roads in the Perúvian Amazon threaten cumulative impacts to high-value biodiversity areas and indigenous groups. A recent law declares the construction of roads in the Amazon as a national priority, threatening national parks and reserves for indigenous peoples. While pushback against the law

Colombia Road – Marginal de la Selva Key Threats

Deforestation, incuding in the Forest Reserve Area and Chiribiquete (expanded area), Tinigua and La Macarena national parks

Forest fragmentation, including between the Amazon and Andes

Desertification due to land change use Economic and social changes in surrounding areas

Potential Partners

Private sector: Asociación Nacional de Industriales (ANDI) Government: INVIAS; National Agency on Infrastructure (ANI);

Ministry of Transport; Depts of Caquetá, Meta Guiviare; ANLA (licensing); Institute of Hydrology Meteorology, Environmental Studies (IDEAM) Corpoamazonia, Cormacarena, CDA

NGOs: Fundación Natura, Alisos, CAEM

Perú Roads – Iquitos-Saramiriza Key Threats

Deforestation and forest degradation Opening of access to the Loreto jungle, prompting illegal exploitation of wood, wildlife, other resources Land use changes in Pucacuro National Reserve

Santiago Comaina Reserved Zone, and Ramsar sites Threats to social structure of indigenous groups

Potential Partners

Private sector: Roads association (AFIN), environmental firms like Walsh, Knight, Piesold, Lavalin Government:

MTC, SENACE, MINAM, OEFA, PNCP

Regional Government of Loreto (GOREL)

NGOs: SPDA (existing relationship with GOREL) has been swift, the Iquitos-Saramiriza Road, a 700 km, non-IIRSA road in the pre-feasibility stage, fulfills a promise by the president to connect Iquitos to Saramiriza to boost economic development.

Perú Roads – Iquitos-Saramiriza

Undertake meaningful community engagement during the Environmental Impact Assessment (EIA) process Put mechanism in place for community monitoring of environmental impacts during roads construction Incorporate environmental and social concerns into roads design, e.g., design creek/river crossings to prevent erosion, allow fish passage Require a final erosion control plan, e.g., stabilize disturbed areas, work areas and temporary roads Possible Enforcement, Compliance and Governance Practices Support Servicio Nacional de Certificación Ambiental para las Inversiones Sostenibles (SENACE) in undertaking community consultation process, e.g., dissemination of information, preparation of technical comments on impacts, socialization and capacity building, and EIA process

Support SENACE with technical guidelines regarding environmental, biodiversity and mitigation hierarchy issues for improving the EIA process for the transportation sector

Improve the planning process (e.g. incorporating SEAs) developing predictive models to analyze changes in land use and land cover, analyzing lower-impact alternatives (e.g., waterways like Hidrovia Amazonica) and cooperating across agencies

Strengthen SENACE’s licensing procedures (support from TNC already has begun) Build the capacity of key stakeholders to use of the existing early warning and monitoring deforestation model (Geobosques)

Hydropower

The Amazon Basin is home to 191 dams; an additional 246 are inventoried, planned or underway, threatening to block the migratory routes of fish, change flow regimes, force resettlement and alter social structures and livelihoods. Poor planning, coupled with lack of community engagement, has made large dams contentious and costly. In Perú, energy overproduction resulted in the suspension of all large projects (the Veracruz dam was recently cancelled completely). In Brazil, public opposition led, in part, to the cancellation of the Sao Luis do Tapajós Dam, though large dams like Jatoba were still licensed. The result is a proliferation of small dams whose cumulative impact rivals large dams. In the table below, we summarize proposed megaprojects, illustrative BMPs, sectoral results and deliverables.

Summary of Hydropower Sector Megaprojects, BMPs, Results and Deliverables

Tapajós (Brazil) São Manoel Dam Operational (pending commercial license) 66 km2 (flooding alone) Jatoba Dam Planned (EIA underway) 467 km2 (flooding alone)

Illustrative Sector BMPs Planning: Address (a) national energy plans that spell out energy source preferences, (b) whole-basin plans that rank projects according to potential impact and (c) basin/watershed plans, which TNC currently supports in the Ucayali and Marañón in Perú and in the Tapajós.

Siting: Rank projects and assess proposed project locations for potential ecological and social harm.

Pre-feasibility/feasibility: Engage communities to…