SOL-611-17-000001_FINAL.pdf

U.S. AGENCY FOR INTERNATIONAL DEVELOPMENT

Embassy of the United States of America

Subdivision 694/Stand 100 Ibex Hill Road

P.O. Box 320373

Lusaka, Zambia

Date Issued: November 26, 2016

Closing Date: January 6, 2017 14:00 p.m. Eastern Time

Questions due date: December 9, 2016 14:00 p.m. Eastern Time

SUBJECT: Request for Proposals (RFP) NO.: SOL-611-17-000001

REF: USAID AGIS: Accountable Governance for Improved Service Delivery

Dear Prospective Offeror:

The U.S. Agency for International Development (USAID)/ Zambia is seeking proposals from qualified organizations interested in providing the services described in the attached solicitation.

The U.S. Government represented by the U.S. Agency for International Development (USAID) anticipates a single Cost Plus Fixed Fee Completion contract. This procurement will be conducted under full and open competition procedures pursuant to Part 15 of the Federal Acquisition Regulation (FAR), under which any type of organization is eligible to compete. The authorized geographic code for procurement of goods and services under the award will be 935. The period of performance for this contract will be five years from the effective date of the award. All requirements are subject to availability of funds.

USAID encourages participation to the maximum extent possible of small business concerns, small disadvantaged business concerns and women-owned small business concerns in this activity as the prime contractor or as subcontractors in accordance with Part 19 of the FAR.

This solicitation in no way obligates USAID to award a contract, nor does it commit USAID to pay any costs incurred in the preparation and submission of a proposal. Furthermore, the Government reserves the right to reject any and all offers, if such action is considered to be in the best interest of the Government.

The RFP and any amendments to this solicitation will be issued and posted on the Federal Business

Opportunities (FBO) website at https://www.fbo.gov. It is the Offeror’s responsibility to check the website periodically for official updates and amendments to the solicitation. It is the responsibility of the recipient of this solicitation document to ensure that it has been received from the internet in its entirety and USAID bears no responsibility for data errors resulting from transmission or conversion processes.

Offerors are encouraged to read the entire solicitation, which includes all pertinent technical sections and the terms, conditions and instructions required for submitting a proposal. Any empty fill-in spaces in

Sections B through J will be completed by the Contracting Officer before award.

https://www.fbo.gov/

Questions and proposals to this solicitation must be submitted no later than the deadline indicated above by email only to oaa-solicit-lusaka@usaid.gov . Oral instructions, answers or guidance from any USAID source prior to the award of the contract shall not be binding. The Agency points of contact for this solicitation are Alan Garceau at agarceau@usaid.gov and Charles Nyanoka at cnyanoka@usaid.gov.

Best Regards, Ali Nader

Contracting Officer

USAID/Zambia mailto:oaa-solicit-lusaka@usaid.gov mailto:agarceau@usaid.gov mailto:cnyanoka@usaid.gov

Table of Contents

Solicitation/Contract Form

SECTION B – SUPPLIES OR SERVICES/PRICES

SECTION C – DESCRIPTION/SPECIFICATIONS

SECTION D – PACKAGING AND MARKING

SECTION E – INSPECTION AND ACCEPTANCE

SECTION F – DELIVERIES OR PERFORMANCE

SECTION G – CONTRACT ADMINISTRATION DATA

SECTION H – SPECIAL CONTRACT REQUIREMENTS

SECTION I – CONTRACT CLAUSES

SECTION J – LIST OF DOCUMENTS, EXHIBITS AND OTHER ATTACHMENTS

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

SECTION L – INSTRUCTIONS, CONDITIONS, AND NOTICES TO BIDDERS

SECTION M – EVALUATION FACTORS FOR AWARD

SOL-611-17-000001

SOLICITATION, OFFER AND AWARD

4. TYPE OF SOLICITATION2. CONTRACT NUMBER 3. SOLICITATION NUMBER

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

ORDER UNDER DPAS (15 CFR 700)

6. REQUISITION/PURCHASE NUMBER

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

NEGOTIATED (RFP)

SEALED BID (IFB)

5. DATE ISSUED

1. THIS CONTRACT IS A RATED RATING PAGE OF PAGES

C. E-MAIL ADDRESS

EXT.NUMBERAREA CODE

B. TELEPHONE (NO COLLECT CALLS)A. NAME

10. FOR

INFORMATION

CALL:

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.

(Date)(Hour) local timeuntildepository located in copies for furnishing the supplies or services in the Schedule will be received at the place specified in Item 8, or if hand carried, in the

SOLICITATION

9. Sealed offers in original and

PART IV - REPRESENTATIONS AND INSTRUCTIONS

OTHER STATEMENTS OF OFFERORS

EVALUATION FACTORS FOR AWARD

INSTRS., CONDS., AND NOTICES TO OFFERORS

REPRESENTATIONS, CERTIFICATIONS AND

LIST OF ATTACHMENTS

CONTRACT CLAUSES

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

I

J

K

L

M SPECIAL CONTRACT REQUIREMENTS

CONTRACT ADMINISTRATION DATA

DELIVERIES OR PERFORMANCE

INSPECTION AND ACCEPTANCE

PACKAGING AND MARKING

DESCRIPTION/SPECS./WORK STATEMENT

SUPPLIES OR SERVICES AND PRICES/COSTS

SOLICITATION/CONTRACT FORM

PART II - CONTRACT CLAUSESPART I - THE SCHEDULE

H

G

F

E

D

C

B

A

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

11. TABLE OF CONTENTS

18. OFFER DATE17. SIGNATURE

SUCH ADDRESS IN SCHEDULE.

IS DIFFERENT FROM ABOVE - ENTER

15C. CHECK IF REMITTANCE ADDRESS

EXT.NUMBERAREA CODE

15B. TELEPHONE NUMBER

(Type or print)AND

ADDRESS

OF

OFFEROR

CODE FACILITY

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

DATEAMENDMENT NO.DATEAMENDMENT NO.

and related documents numbered and dated):

amendments to the SOLICITATION for offerors

(The offeror acknowledges receipt of

14. ACKNOWLEDGEMENT OF AMENDMENTS

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

(See Section I, Clause No. 52.232.8)

13. DISCOUNT FOR PROMPT PAYMENT

designated point(s), within the time specified in the schedule.

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

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

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

OFFER (Must be fully completed by offeror)

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

28. AWARD DATE

(Signature of Contracting Officer)

27. UNITED STATES OF AMERICA

25. PAYMENT WILL BE MADE BY

26. NAME OF CONTRACTING OFFICER (Type or print)

CODE 24. ADMINISTERED BY (If other than Item 7)

ITEM

(4 copies unless otherwise specified)

23. SUBMIT INVOICES TO ADDRESS SHOWN IN

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

22. AUTHORITY FOR USING OTHER THAN FULL AND OPEN COMPETITION:

21. ACCOUNTING AND APPROPRIATION20. AMOUNT19. ACCEPTED AS TO ITEMS NUMBERED

AWARD (To be completed by government)

CODE

REQ-611-17-00000211/26/2016

X

ZAMBIA

USAID Zambia 00000

Mr. Alan Garceau Contracting Officer USAID/Zambia oaa-solicit-lusaka@usaid.gov

1400 ET 01/06/2017

Charles Nyanoka cnyanoka@usaid.gov

X

X

X

X

X

X

X

X

X

X

X

X

X

PAGE(S)

Ali Nader

AUTHORIZED FOR LOCAL REPRODUCTION

Previous edition is unusable

STANDARD FORM 33 (Rev. 9-97)

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

4-8

9-24 25-28 30-36 37-41 42-59

60-81

82-83

84-99

100-120

121-126

2 127

ITEM NO. SUPPLIES/SERVICES QUANTITY UNIT UNIT PRICE AMOUNT

NAME OF OFFEROR OR CONTRACTOR

CONTINUATION SHEET

REFERENCE NO. OF DOCUMENT BEING CONTINUED PAGE OF

SOL-611-17-000001

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

Delivery Location Code: ZAMBIA/LOCAL

USAID/Zambia

U.S. Embassy

Subdivision 694/Stand 100

Kabulonga District, Ibex Hill Road

Lusaka, District

0001 DRG contribution to AGIS Activities

0002 Health contribution to DRG AGIS activities

0003 Education contribution to DRG AGIS activities

OPTIONAL FORM 336 (4-86)

Sponsored by GSA

FAR (48 CFR) 53.110

NSN 7540-01-152-8067

SECTION B – SUPPLIES OR SERVICES/PRICES

B.1 PURPOSE

The purpose of the Accountable Governance for Improved Service Delivery (AGIS) is to strengthen targeted accountability and transparency functions within two ministries of the

Government of the Republic of Zambia (GRZ), to improve health and education outcomes as detailed in Section C.

B.2 CONTRACT TYPE

The U.S. Government represented by the United States Agency for International

Development in Zambia intends to award a five-year Cost-Plus-Fixed-Fee Completion type of contract. For the consideration set forth in this contract, the contractor shall provide the deliverables or outputs described in Section C and comply with all contract requirements.

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

(a) The total estimated cost plus fixed fee for the performance of this award is between

$6,500,000 and $7,500,000. The final negotiated amounts will be entered in the table below at the time of award:

Cost Category Amount

Total Estimated Cost $

Fixed Fee $

Total Estimated Cost Plus Fixed-Fee $

(b) The total estimated cost for the performance of the work required hereunder, exclusive of fixed fee, if any, is TBD. The fixed fee, if any, is TBD. The total estimated cost plus fixed fee, if any, is TBD. The contractor will not be paid any sum in excess of this ceiling price. Any amount exceeding the ceiling will be at the risk of the contractor.

(c) 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) in accordance with

Section B.8 for performance hereunder is TBD. The Contractor shall not exceed the aforesaid obligated amount.

(d) Funds obligated are anticipated to be sufficient through TBD.

(e) This contract will be incrementally funded. The contractor shall not exceed the obligated amount in accordance with the Limitation of Funds clause, FAR 52.232.22.

B.4 LINE ITEMS

The Budget for the award is as follows:

Cost Category Amount

Salaries and Wages $

Fringe Benefits $

Consultants $

Travel, Transportation and Per Diem $

Equipment $

Supplies $

Sub-contracts $

Other Direct Cost (ODC) $

Indirect Costs $

Total Estimated Costs $

Fixed Fee $

Total Estimated Cost Plus Fixed-Fee $

B.5 PAYMENT OF FIXED FEE

Pursuant to FAR 16.306(d), the fixed fee payable under this contract will be tied to the execution of tasks outlined in Section C and the completion and approval of the required deliverables listed in Section F.6 B. and in accordance with the approved Fee Schedule below:

Deliverables

Quantity

Estimated

Completion

Date

Percent

Fixed

Fee

Amount

Situational Analysis Report– consolidation of existing data on public financial management

1 Within four months of award

TBD TBD

Dissemination Meeting Report (to represent and ground-truth the Situational Analysis

Within five months of award

TBD TBD

Transformation Plan (Ministry of Health)

Within six months of award

TBD TBD

Transformation Plan (Ministry of General

Education)

Within six months of award

TBD TBD

New or revised templates and protocols for improving PFM functions in health and education

TBD

Within sixteen months of award

TBD TBD

Two district-level capacity development plans

Within eighteen months of award

TBD TBD

Two district-level capacity development plans

Within twenty months of award

TBD TBD

Two district-level capacity development plans

Within twenty-four months of award

TBD TBD

New or revised templates and protocols for stream-lining and improving identified transparency and accountability functions of district level health and education service delivery entities

TBD

Within twenty-four months of award

TBD TBD

First situational analysis update including a fiduciary risk level assessment

Within thirty months of award

TBD TBD

Second situational analysis update including a fiduciary risk level assessment

Beginning of project year five

TBD TBD

Sustainability Plan – describing how the activity will be transitioned and sustained post

AGIS

Beginning of project year five

Total Fixed Fee 100% TBD

B.6 INDIRECT COSTS

Description Rate Base Type Period

TBD TBD 1/ 1/ 1/

TBD TBD 2/ 2/ 2/

1/Base of Application:

Type of Rate: TBD

Period: TBD

2/Base of Application:

Type of Rate: TBD

Period: TBD

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

Indirect costs shall not be allowed for organizations that do not have a NICRA. All costs for organizations without a NICRA shall be budgeted and billed as direct costs.

B.7 CEILING ON INDIRECT COSTS

(a) Reimbursements for allowable indirect costs shall be at final negotiated rates but not in excess of the following ceiling rates:

Contractor Overhead

Rate %

Overhead

Ceiling Rate

G&A Rate

G&A Ceiling

Rate %

PRIME

MAJOR

SUBCONTRACTOR(S)

NOTE 1: Insert additional indirect rates as needed for prime and major subcontractors (i.e., subcontractors proposed at costs equivalent to 15% of the budget or more) in the above table.

NOTE 2: If the Contractor does not have a NICRA, all costs must be budgeted and billed as direct costs, and this provision is inapplicable.

(b) The Government will not be obligated to pay any additional amount should the final indirect cost exceeds the negotiated ceiling rates. If the final indirect cost rates are less than the negotiated ceiling rates, the negotiated rates will be reduced to reflect the lower rates.

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

B.8 COST REIMBURSEMENT

Allowable costs will 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,” FAR 52.232-20, “Limitation of Cost,” and FAR 52-232-22, “Limitation of Funds,” if applicable, and AIDAR 752.7003, “Documentation for Payment.”

B.9 CANCELLATION CEILING

This contract is considered non-severable, and is therefore a multi-year contract as defined in FAR 17.103. Therefore, this contract is subject to the requirements of FAR 17.106. In the event that the Government cancels requirements for services in subsequent program years under this contract, the following conditions will apply:

Cancellation Ceiling & Cancellation Charge

The cancelation ceiling shall be the amount allotted to this contract under the Limitation of

Funds clause (FAR 52.232-22(b)) at the time the cancellation notice is issued by the

Contracting Officer.

In accordance with clause 52.217-2(d), “Cancellation under Multiyear Contracts” (October

1997), the cancellation charge covers only:

(1) Costs –

(i) Incurred by the contractor and/or subcontractor;

(ii) Reasonably necessary for performance of the contract; and

(iii)That would have been equitably amortized over the entire multi-year contract period but, because of the cancellation, are not so amortized; and

(2) A reasonable profit or fee on the costs.

However, since this is a CPFF type contract where the contractor is authorized to be reimbursed for all costs which are allowable in accordance with FAR 52.216-7, “Allowable

Costs and Payment”, 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 charge, if any, will not cover the costs referred to in FAR 52.217-2(d)(1)(iii)

[End of Section B]

SECTION C – DESCRIPTION/SPECIFICATIONS

C.1 BACKGROUND

a. USAID/Zambia’s Approach to Improving the Governance Enabling Environment

USAID/Zambia’s democracy and governance program is premised on the hypothesis that sustainable improvement in the governance enabling environment requires simultaneous and complementary investments in two areas, the supply side (government) and the demand side (civil society). This approach is consistent with literature affirming the importance of a systems-wide approach to improve accountability, where a wide range of actors and institutions contribute jointly to ensure the exchange of information, shifts in incentives and influence. In keeping with this hypothesis, Accountable Governance for

Improved Service Delivery (AGIS) is one of two pillar activities in USAID’s democracy and governance portfolio. AGIS will address the supply side of Zambia’s governance enabling environment, building government capacity to deliver services in an accountable and transparent way. The Fostering Accountability and Transparency activity (FACT), currently in implementation, addresses the demand side in health and education, helping to generate the political will to ensure that government applies new capacity.

b. Government Effectiveness in Zambia

Government entities in Zambia are the main providers of public service delivery, yet they face deep-rooted capacity challenges. The country has made positive strides in governance efficacy, and formal public-management policies and regulations meet international standards. These policies, however, are irregularly applied due to capacity challenges and opportunities to manipulate the system. The resultant lack of transparency and accountability is a well-documented constraint to development and to the Government of the Republic of Zambia (GRZ)’s ability to finance service delivery. It limits government effectiveness, impedes progress by facilitating waste and corruption, and erodes citizen confidence in peaceful democratic processes as the best means to advance collective well-being. These effects are felt most extremely at the point of public service delivery, precisely where Zambian citizens interact with government institutions to receive the most essential of services, like healthcare and education. Zambia’s own revised Sixth National

Development Plan (SNDP) links governance to development outcomes: “Good governance remains the cornerstone for prudent management of public affairs and ensuring that development outcomes benefit the people of Zambia.” The revised SNDP strives for enhanced integrity, accountability, and transparency in public and private bodies.

Recent government and partner assessments and reviews highlight systemic constraints to accountability and transparency in government service delivery. Zambia’s Office of the

Auditor General, through annual reports, has repeatedly flagged serious fiduciary risks in both the education and health sectors. These include weaknesses in internal controls, procurement and internal audit functions. Specifically, these gaps include missing payment vouchers, unsupported payments, unretired imprest, unaccounted-for funds and stock, failure to follow procurement procedures, and misapplication of public funds. Other audit reports and assessments have also highlighted weaknesses in the oversight and stewardship of public resources. According to the Global Corruption Barometer (2013), sixty-five percent of Zambian respondents perceive public officials and civil servants as corrupt or extremely corrupt. In spite of recent public financial reforms, procurement standards remain opaque and insufficiently enforced.

c. Accountability and Transparency in Zambia’s Health and Education Sectors

The lack of accountability and transparency in service delivery institutions is a significant threat to both United States Government (USG) and GRZ investments in health and education. It undermines the long-term sustainability of these investments and complicates the desired shift to domestic financing of service delivery. The USG invests $300 million annually in Zambia’s health sector and approximately $20 million in the education sector.

Over $70 million of the health investment is directed specifically to the procurement and distribution of medicines and medical supplies. The USG has also invested heavily in activities to strengthen Zambia’s public health supply chain. Media reports, anecdotal evidence, findings from the government-led anti–medicine-pilferage task force, and partner audits have demonstrated significant weaknesses in the accountability of health services and commodities within the supply chain. Similarly, assessments undertaken in the education sector found challenges in its procurement systems, especially in relation to procedure compliance, adherence to guidelines, and transparent contract negotiation and management. Further, the roll out and usage of the Integrated Financial Management

Information System (IFMIS) in the health and education sectors is yet to be fully optimized.

As noted by the African Development’s Bank Summary of Literature on Fraud and

Corruption in Public Procurement, public procurement lies at the crossroads of the public and private sector. This makes public procurement vulnerable to corruption. Zambian government ministries have progressively assumed greater responsibility in public procurements. In its role as a regulator, Zambia Public Procurement Authority (ZPPA) oversees policy, compliance, professional development and performance monitoring in public procurement. ZPPA, however, has limited human resource capacity to monitor the procurement activities of ministries and lower-level government departments. These challenges trickle down to lower-level government structures. Although the procurement function is decentralized, not all line ministries and local governments are trained on ZPPA regulations, follow regulations, or use standardized processes. As a result, there are well-publicized cases of civil servants who manipulate the tender process within the existing rules. This weak application of regulations and the lack of enforcement of existing procedures invite public criticism and raise the perception of corruption. This not only adversely affects the successful delivery of services to Zambian citizens at the lower levels, but also exposes weaknesses in the public financial management systems as the USG considers moving funds to local entities.

Government ministries, provinces, and spending agencies also suffer from a lack of diligently applied internal controls both at the central and local levels. Internal controls in this context are broadly defined as systematic measures, such as reviews, checks and balances, procedures, authority flows, and ethics guidelines that promote integrity of financial and accounting systems. The GRZ has attempted to roll-out systems and processes, including IFMIS, to improve oversight and control. Transparency

International’s 2014 profile of Zambia, however, identifies gaps in the promotion of ethical standards and integrity in the discharge of public duties. Ministries have little to no risk management policies to that minimize operational or fiscal risk. There is evidence of staff bypassing financial controls and the consequences for violations are generally minimal, if existent. Implementation of audit recommendations is weak and most ministries lack mechanisms to monitor internal controls.

The Zambia Office of the Auditor General (OAG) reports, including the recently released

2015 report, flag critical weaknesses in internal audit functions of a number of assessed ministries. Internal auditing in ministries and agencies is undermined by weak oversight, staff constraints, poorly–planned reporting, and unclear roles and responsibilities; for example, the same staff are often responsible for both pre-audits and regular audits.

Although policies and procedures outlining the internal audit function are in place and functioning on paper, these procedures are not implemented effectively or comprehensively. For external audits, while the OAG is generally strong and independent, implementation of audit recommendations by government entities is weak.

Recognizing these challenges, the GRZ is working to improve the management of public health and education resources. The Ministry of Health (MoH) is implementing the

Governance and Management Capacity Strengthening Plan, designed to increase transparency and accountability, reduce fiduciary risk, and respond to recommendations of financial, procurement, and systems audits conducted in 2009. The donor-supported, GRZ-led Financial Management Accountability Plans (FMAP) a capacity-building tool designed primarily to strengthen financial management and accountability within the education sector, also includes measures to address some of the recurring shortcomings in financial accountability that affect the full implementation of the respective sector plans. These forward efforts within the health and education sectors provide a useful opportunity to advance AGIS’s objectives.

d. Donor and GRZ Coordination to Support Transparency and Accountability

Development assistance to support transparent and accountable governance in Zambia is guided by the requirements of the Paris Declaration with coordination by a variety of

Cooperating Partner (CP) groups, including the Democracy and Governance Working

Group, the Public Financial Management Working Group, and related sector-specific groups for health and education. CPs aim to harmonize their development cooperation with the GRZ national development plans, Zambia’s Vision 2030, and health and education strategies. While a number of partners are active in the sector, major partners include the

African Development Bank, United Kingdom, Germany, United States of America, and the

World Bank. Proposed interventions in the education sector will harmonize with the

Mutual Accountability Framework between Cooperating Partners in the education sector and the GRZ.

At the national level, USG’s transparency and accountability work supports the Ministry of

Finance’s Public Financial Management Improvement Plan, Zambia’s National Health

Strategic Plan 2011-2015 (NHSP), the National AIDS Strategic Framework, and the education’s sector’s National Implementation Framework III 2011-2015. The NHSP calls for strengthened leadership and governance systems and structures to ensure participation, transparency and accountability at all levels. Of specific interest to USAID is the Maternal, Neonatal, Child Health Road Map, which includes accountability and leadership among key principles necessary to accelerate the reduction in morbidity and mortality associated with maternal, newborn, and child health. Transparency and accountability in the education sector is particularly influenced by coordination with district-level authorities.

Although over 50 percent of public education expenditure is utilized at the central level, a significant portion of non-personal emolument spending occurs at the district level. With a push for decentralization of management and fiscal functions to provinces and districts, improving skills and strengthening oversight and accountability at these lower levels is critical.

e. Applicable Documents, Policies, and Initiatives

The Contractor shall review the design documents, assessments, and other relevant reports listed below. Some of the following applicable documents (as well as others) can be found online or at the USAID/Zambia mission website: http://www.usaid.gov/zm/

a) Foreign Assistance Framework http://www.state.gov/documents/organization/79748.pdf

b) Foreign Assistance Standardized Program Structures and Definitions http://www.state.gov/f/releases/other/255986.htm

c) Quadrennial Development and Diplomacy Review (QDDR) http://www.state.gov/documents/organization/153142.pdf

d) USAID Global Development Alliance Website https://www.usaid.gov/gda

e) ADS 204, Environmental Procedures https://www.usaid.gov/ads/policy/200/204

f) ADS 302, Acquisition and Assistance http://www.usaid.gov/policy/ads/300/

g) Zambia’s Revised Sixth National Development Plan (FNDP) http://www.ilo.org/addisababa/countries-covered/zambia/WCMS_465092/lang--en/index.htm

h) Zambia’s National Decentralization Implementation Plan (DIP) http://www.minaloc.gov.rw/fileadmin/documents/Minaloc_Documents/DIP_3rd_Ph ase_Draft_14.3.11_final_version.pdf

i) Zambia’s National Implementation Framework http://planipolis.iiep.unesco.org/upload/Zambia/Zambia_Education_Sector_NIF_III

_2011_2015_Final_Draft.pdf

j) African Development Bank Joint Assistance Strategy Review of the Harmonization

Process in Five Countries http://www.afdb.org/fileadmin/uploads/afdb/Documents/Evaluation-Reports-

_Shared-With-OPEV_/12326245-EN-ZAMBIA-JASZ-FINAL-FORMATED-

REPORT-MR-MANAI-02.10.2006.PDF

k) OECD The Paris Declaration on Aid Effectiveness and the Accra Agenda for Action http://www.oecd.org/dataoecd/11/41/34428351.pdf

l) Zambian Ministry of Education: Education Management Information Systems

(EMIS) and Related Activities External Program Review Report http://pdf.usaid.gov/pdf_docs/PNACY199.pdf http://www.usaid.gov/zm/ http://www.usaid.gov/zm/ http://www.state.gov/documents/organization/79748.pdf http://www.state.gov/documents/organization/79748.pdf http://www.state.gov/f/releases/other/255986.htm http://www.state.gov/documents/organization/153142.pdf http://www.state.gov/documents/organization/153142.pdf https://www.usaid.gov/ads/policy/200/204 http://www.usaid.gov/policy/ads/300/ http://www.usaid.gov/policy/ads/300/ http://www.ilo.org/addisababa/countries-covered/zambia/WCMS_465092/lang--en/index.htm http://www.ilo.org/addisababa/countries-covered/zambia/WCMS_465092/lang--en/index.htm http://www.minaloc.gov.rw/fileadmin/documents/Minaloc_Documents/DIP_3rd_Phase_Draft_14.3.11_final_version.pdf http://www.minaloc.gov.rw/fileadmin/documents/Minaloc_Documents/DIP_3rd_Phase_Draft_14.3.11_final_version.pdf http://planipolis.iiep.unesco.org/upload/Zambia/Zambia_Education_Sector_NIF_III_2011_2015_Final_Draft.pdf http://planipolis.iiep.unesco.org/upload/Zambia/Zambia_Education_Sector_NIF_III_2011_2015_Final_Draft.pdf http://www.afdb.org/fileadmin/uploads/afdb/Documents/Evaluation-Reports-_Shared-With-OPEV_/12326245-EN-ZAMBIA-JASZ-FINAL-FORMATED-REPORT-MR-MANAI-02.10.2006.PDF http://www.afdb.org/fileadmin/uploads/afdb/Documents/Evaluation-Reports-_Shared-With-OPEV_/12326245-EN-ZAMBIA-JASZ-FINAL-FORMATED-REPORT-MR-MANAI-02.10.2006.PDF http://www.afdb.org/fileadmin/uploads/afdb/Documents/Evaluation-Reports-_Shared-With-OPEV_/12326245-EN-ZAMBIA-JASZ-FINAL-FORMATED-REPORT-MR-MANAI-02.10.2006.PDF http://www.oecd.org/dataoecd/11/41/34428351.pdf http://www.oecd.org/dataoecd/11/41/34428351.pdf http://pdf.usaid.gov/pdf_docs/PNACY199.pdf http://pdf.usaid.gov/pdf_docs/PNACY199.pdf

m) PEPFAR website for Zambia http://www.pepfar.gov/countries/c19434.htm

n) Zambia Ministry of Education Basic Education Sub-sector Investment Program

(BESSIP)

http://www1.worldbank.org/publicsector/decentralization/bankprojects/zambia.htm

o) UNDP Zambia Sustainable Development Goals http://www.zm.undp.org/content/zambia/en/home/post-2015/sdg-overview.html

p) Sustainable Development Goals http://www.un.org/sustainabledevelopment/peace-justice/

q) USAID FORWARD Reform Agenda https://www.usaid.gov/usaidforward

r) The Constitution of Zambia (Amendment), 2016-Act No.2 http://www.parliament.gov.zm/node/4834

s) USAID Strategy on Democracy, Human Rights, and Governance https://www.usaid.gov/democracy-human-rights-and-governance-strategy

t) USAID (2016) Working Document: USAID Applied Political Economy Analysis

(PEA) Field Guide https://www.usaid.gov/sites/default/files/documents/2496/Applied%20PEA%20Field%20G uide%20and%20Framework%20Working%20Document%20041516.pdf

u) Zambia Education Sector Support – ZESSTA (DFID) http://cidt.org.uk/portfolio/zambia-education-sector-support-zessta-dfid/

v) USAID’s Guide to Public Financial Management https://dec.usaid.gov/dec/content/Detail.aspx?ctID=ODVhZjk4NWQtM2YyMi00Yj

RmLTkxNjktZTcxMjM2NDBmY2Uy&rID=MzU0NTAw

w) Overview of corruption and anti-corruption in Zambia http://www.transparency.org/files/content/corruptionqas/Country_profile_Zambia_2

014.pdf

x) A Summary of Literature on Fraud and Corruption in Public Procurement http://www.afdb.org/fileadmin/uploads/afdb/Documents/Procurement/Project-related-

Procurement/Summary_of_Literature_on_Fraud_and_Corruption_in_Public_Procur ement.pdf

y) Zambia Office of the Auditor General Report (2015) http://www.ago.gov.zm/reports/Main/AGO%20Main%20Report%202015.pdf

C.2 PURPOSE

The purpose of the AGIS is to strengthen targeted accountability and transparency functions within the Ministries of Education and Health of the Government of the Republic of Zambia (GRZ), to improve health and education outcomes.

C.3 SCOPE

AGIS will work directly with the MoH, and the Ministry of General Education (MoGE).

This statement of work (SOW) defines technical services to support the USAID/Zambia

Democracy, Human Rights and Governance (DRG) Program to achieve the following results: Development Objective - Enabling Governance Environment Improved;

Intermediate Result – Transparency and Accountability in Government Service Delivery

Increased; and Sub Intermediate Results (SIR) - (SIR 1) increased procurement capacity in http://www.pepfar.gov/countries/c19434.htm http://www.pepfar.gov/countries/c19434.htm http://www1.worldbank.org/publicsector/decentralization/bankprojects/zambia.htm http://www1.worldbank.org/publicsector/decentralization/bankprojects/zambia.htm http://www.zm.undp.org/content/zambia/en/home/post-2015/sdg-overview.html http://www.un.org/sustainabledevelopment/peace-justice/ http://www.un.org/sustainabledevelopment/peace-justice/ https://www.usaid.gov/usaidforward http://www.parliament.gov.zm/node/4834 http://www.parliament.gov.zm/node/4834 https://www.usaid.gov/democracy-human-rights-and-governance-strategy https://www.usaid.gov/sites/default/files/documents/2496/Applied%20PEA%20Field%20Guide%20and%20Framework%20Working%20Document%20041516.pdf https://www.usaid.gov/sites/default/files/documents/2496/Applied%20PEA%20Field%20Guide%20and%20Framework%20Working%20Document%20041516.pdf http://cidt.org.uk/portfolio/zambia-education-sector-support-zessta-dfid/ https://dec.usaid.gov/dec/content/Detail.aspx?ctID=ODVhZjk4NWQtM2YyMi00YjRmLTkxNjktZTcxMjM2NDBmY2Uy&rID=MzU0NTAw https://dec.usaid.gov/dec/content/Detail.aspx?ctID=ODVhZjk4NWQtM2YyMi00YjRmLTkxNjktZTcxMjM2NDBmY2Uy&rID=MzU0NTAw http://www.transparency.org/files/content/corruptionqas/Country_profile_Zambia_2014.pdf http://www.transparency.org/files/content/corruptionqas/Country_profile_Zambia_2014.pdf http://www.afdb.org/fileadmin/uploads/afdb/Documents/Procurement/Project-related-Procurement/Summary_of_Literature_on_Fraud_and_Corruption_in_Public_Procurement.pdf http://www.afdb.org/fileadmin/uploads/afdb/Documents/Procurement/Project-related-Procurement/Summary_of_Literature_on_Fraud_and_Corruption_in_Public_Procurement.pdf http://www.afdb.org/fileadmin/uploads/afdb/Documents/Procurement/Project-related-Procurement/Summary_of_Literature_on_Fraud_and_Corruption_in_Public_Procurement.pdf http://www.afdb.org/fileadmin/uploads/afdb/Documents/Procurement/Project-related-Procurement/Summary_of_Literature_on_Fraud_and_Corruption_in_Public_Procurement.pdf http://www.parliament.gov.zm/node/4834 http://www.ago.gov.zm/reports/Main/AGO%20Main%20Report%202015.pdf targeted service delivery ministries, (SIR 2) increased internal control capacity in targeted government ministries, and (SIR 3) increased audit capacity in targeted government ministries.

AGIS is premised on the hypothesis that if targeted government institutions adopt more transparent and accountable practices, service delivery will be more efficient and effective, leading to improved development outcomes. In this case, the activity focuses on Public

Financial Management (PFM) drivers affecting service delivery and does not necessarily seek to remedy challenges in service delivery. This governance activity will not duplicate but complement existing work in the fields of health, education, and public financial management. In the immediate term, the activity will build the service delivery capacity of targeted GRZ institutions at the central and local level and reduce fiduciary risks associated with USAID Government-to-Government support in the health and education sectors, enabling greater partnership between the USG and the GRZ. Over the long term, AGIS is expected to support the achievement of development results across USAID/Zambia’s health, DRG, and education sectors. The Contractor must propose feasible ways through which AGIS can demonstrate support to cross-sectoral outcomes, i.e. those associated with education (achievement in early grade reading among children) and health (specifically

HIV, Nutrition, Family Planning, maternal and child health). Underlying the AGIS approach is a focus on the effective use of existing initiatives being undertaken by the GRZ and other donors to further enhance ministry performance. The Contractor must coordinate and collaborate with PFM related activities driven by the Government and other partners.

This is not a one size fits all approach or model, but rather a need to resolve existing challenges through a very targeted, collaborative, adaptive, and learning approach.

AGIS will work simultaneously at the central and local levels and strengthen central to local linkages. At the central level, AGIS will support the two target ministries (MoH and

MoGE) and, as needed for specific activities, incorporate other national-level entities such as ZPPA, the Accountant General under the Ministry of Finance, Anti-corruption

Commission, and the OAG. It is not anticipated that AGIS will provide direct support to these entities, but rather, as appropriate, draw on these entities mandated outreach activities to support MoH and MoGE. At the local level, AGIS will work in three provinces, Lusaka, Central, and Eastern. Currently, USAID has significant development programs in these provinces in both education and health. Working through the provincial offices, local-level interventions will focus on two districts per province with the expectation that ultimately, the GRZ themselves may be able to roll out AGIS-type support nationally. Initial target districts will be determined in consultation with USAID/Zambia, MoH, and MoGE during the situational analysis and surveying process and will be based on:

● Districts with USAID-supported health and education programs with a focus on those high volume/yield sites identified under Zambia’s PEPFAR initiative;

● Districts with demonstrable government demand for and capacity to implement

AGIS support; and

● Preferably the same districts where USAID/Zambia is also implementing FACT activities.

C.4 OBJECTIVES AND APPROACH

The overall objective of the AGIS activity is to increase transparency and accountability in the GRZ’s delivery of public health and education services.

This activity will focus on targeted top PFM priorities that will improve internal control, internal audit, and procurement. The specific objectives for this activity are:

● Improve fiscal management and accountability processes in the delivery of public services.

● Support existing interventions that drive public financial management reforms within MoH and MoGE.

● Strengthen the PFM capacity of local government structures to implement central-level institutional reforms that ultimately support improved health and education outcomes.

● Strengthen capacity of MoH and MoGE personnel to adhere to established policies and procedures in audit, procurement, and internal controls.

To accomplish these objectives it is imperative that the Contractor support practical interventions that drive systemic reform through a problem-solving approach that builds upon and extends existing initiatives within the GRZ. The support is expected to change business practices and improve the capacity of staff to efficiently and effectively implement policies that already exist to increase transparency and accountability in service delivery. The contractor must leverage GRZ’s existing programs and resources to achieve sustainable improvements in service delivery management and avoid introducing parallel processes and technical assistance/skills that cannot be sustained by the government in the absence of the Contractor.

The Contractor must prioritize activities that address risks identified in various assessments and audit reports conducted by the government and other partners, where they are linked to health and education outcomes. AGIS activities must ultimately advance USAID/Zambia’s health (specifically HIV, Nutrition, Family Planning, maternal and child health results) and education (educational achievement in early grade reading among children) objectives.

These activities must contribute to increased transparency and accountability, with priority placed on those interventions that have a clear causal effect on either: a) health or education development indicators; or b) the ability of the GRZ to finance service delivery (emphasis will be on efficient use of existing resources rather than resource mobilization). Therefore, the Contractor will invest in interventions through which increased accountability and transparency will have a direct impact on development outcomes in these two sectors.

AGIS will build government capacity to deliver services in an accountable and transparent way and FACT will help to generate the political will to ensure that government applies this capacity. Currently, FACT is building the capacity of local civil society organizations to monitor government service deliver including bringing together institutions promoting social accountability. To bolster its transparency and accountability work, AGIS will explore opportunities for dialogue and entry points for complementary work with FACT and other relevant USAID funded activities.

C.5 Tasks and Deliverables

The contractor shall address the following tasks areas taking into consideration the expectations outlined in the overall approach section above.

Task 1: Analyze existing systems and interventions to identify transparency and accountability gaps in the service delivery processes.

The contractor shall consolidate data of the actual financial and operational functions of the

MoH and MoGE from the various assessments, audits, and plans. This must be done by a) conducting an in-depth situational analysis of target ministry functions at the central and local levels b) identifying constraints and opportunities to achievement of activity objectives in the health and education sectors, and c) examining how incentives within the current system can be re-aligned to generate the desired practices. The intention of this task is not to replicate past assessments or audit reports but rather to consolidate existing analysis conducted by the GRZ and other partners and to enable adaptive programming.

To build local ownership, the contractor may consider using a mix of contractor-trained

GRZ employees and other stakeholders to undertake the analysis. The consolidated data will primarily focus on audit, procurement, and internal control, and identify leverage points at which specific interventions could produce significant systemic change, and examine GRZ’s role in improving accountability and transparency in the management of public resources. It will also provide a brief profile of the current public financial management environment, serving as a basis upon which to measure contextual change.

The profile will explore the relationships between the transparency and accountability functions of various public entities engaged in the delivery of health and education services, as outlined earlier. The profile should also carefully examine existing and complementary interventions by the GRZ, USAID, and other donors to identify geographic and/or functional overlaps. Close consultation with other implementers working on accountability and transparency within MoH and MoGE is vital for success.

USAID/Zambia has held discussions with key donors working in the DRG sector to encourage close consultation in implementation. The situational analysis must identify strategies to improve value for money through strategic partnerships with the private sector, regional capacity-building entities, or volunteer groups such as the Financial Services

Volunteer Corps.

Through Task 1, the contractor must:

1. Thoroughly assess the primary contextual constraints and opportunities to accountable and transparent delivery of health and education services.

2. Identify the functional relationships between transparency and accountability functions of public entities engaged in health and education service delivery.

3. Assess the specific gender and youth-related implications of transparency and accountability in health and education service delivery.

4. Identify the auxiliary management functions (internal controls, internal audit, procurement, within each Ministry that present the greatest opportunities for improving transparency and accountability. As appropriate, other functions, such as human resource management, cash forecasting, budget planning and execution, expense tracking, etc. may also be considered.

5. In line with the above functions, identify leverage points at which a specific intervention could produce systemic change/s.

6. Identify the specific levels (central, provincial, district) the interventions will be concentrated.

7. Include in the situational analysis team, individuals with strong knowledge or experience of GRZ policies and procedures in internal audit, procurement, and internal controls.

8. Identify contextual risks and other impediments to the achievement of activity results and explore possible mitigation strategies.

9. Explore innovative and/or technology-based opportunities for improving transparency and accountability in target ministries.

10. Identify strategic partnerships that will complement or extend AGIS interventions.

11. Prioritize interventions most likely to impact specific health and education outcomes.

12. Explore opportunities for informing citizens about transparency measures implemented via AGIS.

Findings from the analysis will allow for the contractor, following discussions with

USAID, to refocus the activity within the approved scope. The contractor must complete key elements of the analysis again at the mid-point of activity implementation and then again before activity completion. This will provide a basis on which to assess both contextual change and changes directly attributable to the activity.

The contractor must provide or complete the following deliverables

● A comprehensive situational analysis report detailing the above information in a user-friendly way, which will serve as the basis for implementation of Task 2.

● A report from a dissemination meeting to present and ground-truth the situational analysis to key government and non-government stakeholders.

● A situational analysis update at project years 2.5 and 5. This update must include a fiduciary risk level assessment.

Outcomes:

● Constraints and opportunities for improved transparency and accountability in the delivery of the specific health and educational services identified.

● MoH, MoGE, USAID, and other key stakeholders have a holistic understanding of the inter-governmental linkages associated with improved transparency and accountability in the delivery of health and educational services.

● Strategic partnerships, including private public sector opportunities that will complement or extend AGIS interventions identified.

Task 2: Develop capacity transformation plans of action to address issues agreed upon by USAID, the GRZ, and the Contractor.

Utilizing the consolidated data, the contractor must work in concert with MoH and MoGE to specify achievable goals to increase accountability and transparency and develop detailed plans of action (capacity transformation plan) to achieve these goals. The capacity transformation plans of action will realign incentives within the existing systems, focus interventions on activities that have a multiplier effect beyond the immediate outcomes, and those most likely to catalyze sustainable improvement of the ministries’ internal control, audit, and procurement functions (reforms). It is critical that target ministries are deeply involved in the development, and assume ownership of, the capacity transformation plan. It is recognized that the GRZ has numerous capacity limitations, which include staffing and technical gaps; however, insufficient involvement by the government poses greater risk of the activity not achieving its objectives. The transformation plans should be updated to respond to emerging contextual factors, policy shifts, or availability of new and relevant information. Furthermore, it is critical that the Contractor consult other units within the GRZ as well as other donors implementing related activities and include their input into the planning process. Resolving the complex weaknesses of targeted ministries requires solutions and significant financial and technical resources that extend beyond the scope of this activity. The capacity transformation plans will be created as tools for the target ministries; they will feed USAID/Zambia planning and reporting documents, including annual work-plans and the performance-monitoring plan. As a supplement to the transformation plans, the Contractor will work with the Ministries to develop sustainability plans detailing how the Ministries will leverage AGIS-supported interventions to expand outcomes to other geographic locations and beyond the life of the activity. The GRZ will design new, long-term, national, and sectoral plans for the next five years. The Contractor must use, as appropriate, this opportunity by working with units with the MoH and MoGE and partners to embed sustainable transparency and accountability approaches or interventions.