Amend 01.pdf

(x)

72065620R00008 x x copies of the amendment; (b) By acknowledging receipt of this amendment on each copy of the offer submitted ; or (c) By separate letter or electronic communication which includes a reference to the solicitation and amendment numbers. FAILURE OF YOUR ACKNOWLEDGEMENT TO BE

RECEIVED AT THE PLACE DESIGNATED FOR THE RECEIPT OF OFFERS PRIOR TO THE HOUR AND DATE SPECIFIED MAY RESULT IN REJECTION OF YOUR

OFFER. If by virtue of this amendment you desire to change an offer already submitted , such change may be made by letter or electronic communication, provided each letter or electronic communication makes reference to the solicitation and this amendment, and is received prior to the opening hour and date specified.

x

00000 Maputo, Mozambique

720656

Bairro Central JAT Complex, Rua 1231, No. 41 USAID/Mozambique USAID/Mozambique

05/15/20200001

13. THIS ITEM ONLY APPLIES TO MODIFICATION OF CONTRACTS/ORDERS. IT MODIFIES THE CONTRACT/ORDER NO. AS DESCRIBED IN ITEM 14.

12. ACCOUNTING AND APPROPRIATION DATA (If required) is not extended.is extended, Items 8 and 15, and returning

Offers must acknowledge receipt of this amendment prior to the hour and date specified in the solicitation or as amended , by one of the following methods: (a) By completing

The above numbered solicitation is amended as set forth in Item 14. The hour and date specified for receipt of Offers

11. THIS ITEM ONLY APPLIES TO AMENDMENTS OF SOLICITATIONS

FACILITY CODE CODE

10B. DATED (SEE ITEM 13)

10A. MODIFICATION OF CONTRACT/ORDER NO.

9B. DATED (SEE ITEM 11)

9A. AMENDMENT OF SOLICITATION NO.

CODE

8. NAME AND ADDRESS OF CONTRACTOR (No., street, county, State and ZIP Code)

7. ADMINISTERED BY (If other than Item 6)CODE 6. ISSUED BY

PAGE OF PAGES

4. REQUISITION/PURCHASE REQ. NO.3. EFFECTIVE DATE2. AMENDMENT/MODIFICATION NO. 5. PROJECT NO. (If applicable)

1. CONTRACT ID CODE

AMENDMENT OF SOLICITATION/MODIFICATION OF CONTRACT

04/08/2020

CHECK ONE A. THIS CHANGE ORDER IS ISSUED PURSUANT TO: (Specify authority) THE CHANGES SET FORTH IN ITEM 14 ARE MADE IN THE CONTRACT

B. THE ABOVE NUMBERED CONTRACT/ORDER IS MODIFIED TO REFLECT THE ADMINISTRATIVE CHANGES (such as changes in paying office, C. THIS SUPPLEMENTAL AGREEMENT IS ENTERED INTO PURSUANT TO AUTHORITY OF:

D. OTHER (Specify type of modification and authority) appropriation data, etc.) SET FORTH IN ITEM 14, PURSUANT TO THE AUTHORITY OF FAR 43.103(b).

E. IMPORTANT: Contractor is not is required to sign this document and return __________________ copies to the issuing office.

ORDER NO. IN ITEM 10A.

14. DESCRIPTION OF AMENDMENT/MODIFICATION (Organized by UCF section headings, including solicitation/contract subject matter where feasible.)

USAID Commodities for Health: Ensuring Guaranteed Access and Reliability (CHEGAR)

The purpose of Amendment 01 is to:

1. Provide the Answers to the Questions received in response to this solicitation;

2. Extend the closing date for receipt of proposals from May 21, 2020 to June 5, 2020 at

05:00 pm (Maputo time);

3. Update the Scope of Work (SOW), and revise the attachments and solicitation (updates are highlighted in yellow).

16A. NAME AND TITLE OF CONTRACTING OFFICER (Type or print)15A. NAME AND TITLE OF SIGNER (Type or print)

15C. DATE SIGNED 16B. UNITED STATES OF AMERICA 15B. CONTRACTOR/OFFEROR 16C. DATE SIGNED

(Signature of person authorized to sign) (Signature of Contracting Officer)

Eyole Luma

STANDARD FORM 30 (REV. 11/2016)

Prescribed by GSA FAR (48 CFR) 53.243

Previous edition unusable

Except as provided herein, all terms and conditions of the document referenced in Item 9 A or 10A, as heretofore changed, remains unchanged and in full force and effect .

ATTACHMENT 1 – QUESTIONS AND ANSWERS

Question 1 On page 14, USAID provides total volumes and kilometers for estimation purposes. Can USAID clarify what proportion of the volumes would require cold chain transportation and if the DPMs will provide appropriate cold chain packaging so that these items can be transported in ambient temperature trucks?

Answer 1: While volumes are variable, USAID estimates that less than 15% of the volume would require cold chain transportation. DPMs will provide cold chain packaging.

Question 2 On page 14, USAID provides total volumes and kilometers for estimation purposes. Can USAID define what the Expected Days/Shifts and Average shifts/days per DDM columns under the Monthly 2 Ton Truck and Monthly 10 Ton Truck represent?

Answer 2: These columns estimate the time required from staff to complete the deliveries.

The expected days/shifts column is the estimated number of days for the distribution using that vehicle type by province. The average shifts/days column per DDM is the estimated time required per district.

Question 3 Could USAID provide a comprehensive list of documents required to be included (by the Prime and subcontractors) in the Cost Proposal and include that list under Section L.8.i.2, Cost Proposal, (page 98-99) in addition to the budget narrative and budget excel sheet? For example, is Section K required to be submitted by the Prime and Subcontractors?

Answer 3: No, Section K is only required to be submitted by the Prime. Section L.8 on Cost Proposal has been updated in the solicitation.

Question 4 On page 21, C.4.4, USAID requires that the contractor address climate change risks noted in our proposal in response to the Climate Risk Matrix. Should those risks be included in our proposal? If so, please provide a copy of the Climate Risk Matrix.

Answer 4: Yes, climate change risk should be included in proposals. Copy of the Climate Risk Matrix is attached to this Amendment 01 as Attachment J.10.

Question 5 The “USAID CHEGAR Incentive and Monitoring Framework” indicates that the incentive fee will be based on the value of deliveries. However, Section B of the RFP and the budget format seem to indicate that the fee will be based on total project costs. In addition, there is no estimated value of deliveries presented in the RFP. Could USAID clarify the basis for the fee to be proposed by offerors? If the basis is the value of deliveries, could USAID provide an estimated value of deliveries over the life of the project?

Answer 5: The minimum fee proposed by the Offeror should be a percentage of the proposed project cost.

Question 6 The included budget template (Attachment J2) does not include a line dedicated to costs for routine deliveries and emergency deliveries; should these costs be included in the “Subcontracts” line item?

Answer 6: The budget template provided may be modified as needed. Offerors are permitted to include additional lines for other cost elements that are not delineated in attachment J2.

Question 7 USAID has provided information on the routine transportation activities to be included in the proposal. Does USAID have any information on the distance and frequency of emergency deliveries that should be included in the budget?

Answer 7: At this time USAID does not have any information on the distance and frequency of emergency deliveries. USAID anticipate emergencies to be a very small proportion (approximately 5%) of routine deliveries.

Question 8 Does USAID have a cost estimate or estimated percentage of the total budget that they would assume for the routine and emergency deliveries, versus the non-delivery costs in the budget?

Answer 8: The estimated percentages of the total budget that should be assumed for delivery vs non-delivery costs will be based on each Offeror’s individual technical approach.

Question 9 May we assume that up to 2 project staff could be based at the DPM offices in each province to facilitate planning, coordination, and reporting?

Answer 9: Offerors must propose staffing plans that support their technical approach.

Question 10 On page 13, C.3.2 Geographic Focus, USAID states that the contractor shall collect commodities from provincial warehouses and deliver them to sites but that the requirements may change to collect commodities from 30 distribution centers and deliver them to sites.

Can USAID say more about how this change will be managed, what the process for transitioning from provincial to distribution center delivery will look like, what the timeline would be, and who will have what roles in the new distribution arrangement? Also, what volume, kilometer, and delivery day assumptions should we make for this change and how should we reflect it in our budget?

Answer 10:If this change happens, it will likely happen gradually as infrastructure for the 30 distribution centers (called intermediary warehouses) come online. The change would effectively change the management of the warehouses from the DPS to CMAM, but the processes and role for CHEGAR would be the same.

Question 11 On page 13, C.3.2 Geographic Focus, USAID states this is work in addition to the site deliveries, what parameters should we use to include this in our budget?

Answer 11: Offerors should not account for this in their proposals, but it will be worked out during the annual work planning if it becomes necessary that the contractor may be required to pick up commodities at the port or central warehouse.

Question 12 On page 16, C.3.3 Results, Activities, and Milestones, there is a target of 100% of sites receiving orders in full. This metric is further defined on pg. 23, C.6.1 Monitoring as ‘...how many delivery notes match when comparing the quantity sent to those received at both the DDM and health facility. Delivery notes are those carried by the transporter listing the type and quantity of medical products to be delivered or having been delivered.’ The transporter will typically compare the cartons that he or she receives with the delivery note and not count the individual quantities in each carton as that would entail breaking the cartons open.

Therefore, the transporter will be responsible for delivery of the cartons but if they are mispacked or short-packed, it will not be his or her fault. Please confirm that the metric will be based on packages or cartons shipped and delivered and not on the individual units within those cartons. If the transporter has to witness the packing of the cartons, that will increase the cost, time required and level of coordination by both the transporter and the DPM or distribution center and will require that transporters be allowed into warehouses for this purpose. This is not standard commercial practice.

Answer 12: Due to the sensitive nature of public health system commodities in Mozambique, the process that has been established for outsourced distribution of medicines involves the warehouse picking and packing the commodities and counting them together with the transporter prior to loading and upon reception. Many cartons must be broken down to provide the commodities and require individual counting, while some cartons can be packed whole and do not need to be open to count the contents.

Question 13 On page 18, the RFP requires that the contractor provide packaging material. Our assumption is that the DPM will provide all necessary packaging material for preparation of outbound shipments and that the transporters will collect the shipments in sealed boxes for delivery to health facilities. Can USAID explain further what the required packaging material would be used for and by whom?

Answer 13: Generally DPM provides packaging material; however, there are instances when DPM may not be able to provide packaging. Medicines packaged for an individual facility can sometimes be small quantities and the district level may not have packaging material for smaller quantities. More importantly, the packaging must provide security to ensure that medicines are not subject to diversion or spilling in transport.

Question 14 On page 16 and in other sections of the RFP, USAID requires that “transport is suitable in terms of availability, quality, reliability, and expediency in alignment with international standards for medicine delivery protocols.” In our experience, sub-national transporters cannot always immediately meet international standards although they can improve over time. Can this be a goal rather than a requirement?

Answer 14: The experience of implementing similar activities thus far has shown that sub-national transporters are able to meet the standards in attachment J.9. Transport should be of suitable quality and condition to maintain the safety, security, and quality of the medicines being transported. A professional 4 PL is expected to have documented standards and apply them to the USAID CHEGAR medicine distribution activities. Refrigerated vehicles are not expected.

Question 15 On page 40, the RFP notes that “USAID reserves the right to determine relevance of education and experience” of Key Personnel. Could USAID clarify whether directly relevant experience coupled with documented professional training may qualify a candidate for their role in lieu of the specified formal education?

Answer 15: The Key Personnel section has been revised.

Question 16

Section L (pg 102, para 2 Cost Proposal) & Att J2 - Budget Template: Please clarify the instructions in Section L - "Offerors should propose a budget based on the estimated amounts to be distributed over 3 years of the award using a rate/km and in accordance with your normal cost structure." Attachment J2 - Budget template does not have a place for a per km rate. Where should this be annotated in the cost proposal?

Answer 16: No specific line item for rate/km. Budget template may be revised as needed.

Offeror to provide total cost estimate based on volumes and distances.

Question 17 Attachment J2 Budget Template: There are two lines for "Allowances" in the summary budget template. Please clarify the reason for two "allowances" and what costs USAID expects to see for each.

Answer 17: The budget template has been revised so there is one line item for allowances.

Question 18 Section C.3.3 (pages 16-19) speaks about specific delivery targets that the offeror must accomplish within a certain period. In particular, it specifies reaching 90 percent of sites receiving delivery within the first 33 days of the contract. Would USAID kindly share their timeline on the submission of orders generated to the 4PL?

Answer 18: The target of 90% of sites receiving a delivery within 33 days is intended for routine monitoring over the life of CHEGAR and to monitor CHEGAR’s contributions to USAID’s health development objectives. Contractors are not expected to deliver within the first 33 days of the contract, but this indicator applies once routine deliveries have started. After the signing of the contract, time for contract mobilization should be considered. The transition of activities will also have to be coordinated in each province, which may deviate some from the initial plan based on external factors. That being said, note that this indicator is not an indicator of only the contractor’s performance and is intended to provide USAID with an overall picture of how the CHEGAR activities are contributing to a well-functioning supply chain. As such, USAID will not make judgements on the contractor’s performance based solely or even largely on this indicator. Rather, this indicator will prompt USAID to discuss with the contractor (and LMSC as appropriate) what is and is not working in the process with the public sector. Historically, this indicator has been a bigger indicator of the public sector’s performance than the transporter’s and has been used to improve the public sector processes. The timeline for submission of orders to the 4PL varies by province.

Question 19 Section C.3.3 (page 18) states, “... the contractor must provide packaging material as necessary and appropriate and clearly communicate to stakeholders the extent of packing material provided.” Would USAID kindly specify the type of packaging materials the offeror is expected to provide during implementation of CHEGAR?

Answer 19: Generally DPM provides packaging material; however, there are instances when DPM may not be able to provide packaging material. Medicines packaged for an individual facility can sometimes be small quantities and the district level may not have packaging materials for smaller quantities. More importantly, the packaging must provide security to ensure that medicines are not subject to diversion or spilling in transport.

Question 20 Section C.6.1 (page 23) states that in-full delivery will be measured by how many delivery notes match when comparing the quantity sent to the quantity received: “The recipient signs the note confirming or not confirming the quantity of medical commodities received from the transporter. Delivery notes with items rejected or arriving in poor conditions caused by problems in transit are considered misaligned.” Would USAID kindly specify how the requirement for recipients to confirm quantity received on arrival at health facilities that are not prepared to count items at the time of receipt will be accounted for?

Answer 20: As the deliveries must be coordinated with the provincial/district authorities, it is the responsibility of the DPS and district to ensure that health facilities are prepared to count items at the time of receipt. This coordination must include an acceptable time range for the receipt of deliveries and processes for what to do when a facility is not prepared to receive commodities. In current policy and practice, regardless of who transports commodities, in order to receive the commodities, it is the responsibility of the health facility to count the commodities received with the transporter.

Question 21 Section C.6.3 (page 23) states, “USAID intends for LMSC to conduct baseline activities and USAID may plan for and commission an external evaluation.” Page 37, Section 10, also states, “As set forth in Section C, technical proposals must include a draft monitoring and evaluation plan that clearly articulates activity goals, notional baselines, specific targets and anticipated outcomes and impacts over the life of the project.” Would USAID kindly specify whether the offeror is expected to propose notional baseline figures alongside life of project targets for proposed illustrative indicators for the MEL Plan?

Answer 21: Yes. However, the MEL Plan will be updated with actual baseline information and if project learnings, context, and activities change.

Question 22 Section D.4 (pages 26-27) requires the anticipated contract’s branding to be co-branded with PEPFAR name and logo. Would USAID kindly clarify whether this contract will be PEPFAR-only funded or by other initiatives supporting non-HIV/AIDs commodities??

Answer 22: This award is expected to be funded by multiple funding streams, and not limited to PEPFAR.

Question 23 Section F.5 (pages 31-38) includes a Monitoring and Evaluation (M&E) Plan and a Monitoring, Evaluation, and Learning (MEL) Plan, each with slightly differing descriptions and due dates. Would USAID kindly clarify whether both reports must be submitted, which dates, and/or further clarify the differences between the two?

Answer 23: Only one Monitoring, Evaluation, and Learning Plan is required. See revised

SOW.

Question 24 Section F.5 (page 32) includes in the deliverables table a Subcontractor Plan to be submitted with the proposal and provides a brief description. Would USAID kindly provide further details or a template for what should be included in this plan?

Answer 24: This plan should address the approach and strategy the contractor uses to select, contract, and monitor subcontractors. There is no established template.

Question 25 Is the current prime contractor LMSC? If not, who is the current prime contractor?

Answer 25: Village Reach (LMSC) is the current incumbent prime contractor and one of LMSC’s key activities currently is to carry out medical commodity distributions using a 4PL.

Question 26 Who are the sub-contractors (including the current 4PL provider) and what are their roles?

Answer 26: The current 4PL sub-contractors are Bollore Transportation and Logistics and Agility.

Question 27 What is the current headcount and cost schedule on this project?

Answer 27: LMSC has a staff of 32 for FY20 and is a mix of full-time and part-time staff. Staff numbers are dependent on the number of provinces covered by their suite of activities. The cost schedule varies based on coverage and activities.

Question 28 On the subject of data, which is such an important part of this project, does USAID currently have access to all of the data collected by the current prime and sub-contractor/s?

Answer 28: USAID has access to prime and sub-contractor data. USAID is unable to share data that is considered proprietary.

Question 29 Is such data considered to be the property of USAID? We ask in order to make sure that this data would be made available to any newly appointed contractor/s, in order to facilitate handover and continuation of services during any transition period.

Answer 29: USAID can make non-proprietary data available to the awardee when requested.

Question 30 There is reference in the tender document to a 4PL being able to make use of its own assets or contracted in assets. This can lead to a conflict of interests i.e. quotes received from sub-contractors are used to benchmark and the 4PL carries out the bulk of the transportation using its own assets. How is this potential conflict of interests currently managed?

Answer 30: The contractor will be reimbursed for actual costs incurred. Incentives will be paid based on performance.

Question 31 Providing this data is available to USAID, can we see a further breakdown of the table on page 14 i.e. a monthly/quarterly/annual summary of:

a. Deliveries using 4PL owned assets by truck type

b. Deliveries using sub contracted assets by truck type

c. Number of sub contracted transporters

Answer 31: USAID does not currently have a further breakdown of this table.

Question 32 What are the current vehicle standards that the existing 4PL and sub-contractors must adhere to? Can we see the relevant policy document or SOP?

Answer 32: Please see attachment J.9 for vehicle standards based on international standards from the WHO.

Question 33 How many pre-qualified transport sub-contractors are there under the current programme?

Answer 33: USAID does not pre-qualify sub-contractors. Sub-contractors proposed by the prime contractor are reviewed and approved by USAID.

Question 34 Does USAID consider the details of these pre-qualified transporters to be part of the data set owned by USAID i.e. would it be made available to the new prime contractor to ensure seamless handover?

Answer 34: Please see response to Question 33.

Question 35 Please can USAID advise the current payment arrangements for the transport i.e.:

a. How much was spent on transport in previous financial year/s?

b. How much of this spend was directed to the current 4PL and how much to subcontractors?

c. How does the current 4PL receive funds to cover invoices for transport using its own fleet and to pay subcontractors e.g. is the money paid in tranches? If so what is the process for request and release of funds by tranche?

Answer 35: This information is based on the number of provinces covered and activities.

Question 36 Is any external party responsible for benchmarking the current 4PL transport rates? If so how is the benchmarking process undertaken, how often, and by whom?

Answer 36: USAID completes internal cost benchmarking exercises.

Question 37 We would like to get an idea of how losses during transportation are managed under the current programme.

a. Is there an established procedure to determine the cause of losses (incorrect handling, insufficient packaging, theft, short loading etc.)

b. Is there a policy document or SOP for this process?

c. Are the commodities insured in any way?

d. What is the history of transport losses by commodity and value in previous financial year/s, including losses deducted from payments made to the 4PL and the transport sub-contractors…

Answer 37: USAID has not experienced losses during transportation in the time that USAID has been supporting outsourced transportation.

Question 38 Is USAID able to provide a further breakdown of commodities by way of a stock keeping unit (“SKU”) list and any temperature requirements or any special handling requirements per

SKU?

Answer 38: Please see response to Question 1. USAID does not currently have a further breakdown of commodities.

Question 39 Can USAID provide an overview of how temperature controlled deliveries currently managed under this program i.e. how is temperature monitoring carried out?

Answer 39: Under the current program, temperature monitoring is not carried out currently beyond ensuring that commodities are not transported with direct access to sunlight. See attachment J.9 for standards and Question 1 for expectations on cold chain.

Question 40

Are there standard delivery notes currently being used on this program and, if so, can the format/s be made available to the bidders?

Answer 40: Yes, the delivery notes used are the standard used by the Mozambican public health system.

Question 41 The site locations document only mentions destination locations, however the tender document makes reference to 30 central warehouses as origin and 1 main one. Can USAID provide those origin addresses as well?

Answer 41: There is a provincial warehouse in the capital city of each province and a district warehouse in the capital city of each district. The 30 intermediary warehouses are a strategy being worked on for the future and do not all exist at the moment.

Question 42 Is it possible to give past volume information per health facility?

Answer 42: No, USAID does not currently have this data available in a user-friendly format.

Question 43 We would like to clarify. We heard from a few conversations that a transportation optimization survey was conducted prior to the release of this RFP. This report detailed best destination routes and types of vehicles to achieve last mile delivery from the provinces to the districts and healthcare centers.

Would this study be made publicly available? Does lack of knowledge of this study pose any undue disadvantage to other bidders?

Answer 43: The optimization study referenced in this question focused on optimized distribution routing using 30 intermediary warehouses that do not yet exist and therefore does not pose any undue unfair advantage to any bidder. Bidders should submit proposals based on the data provided in the solicitation.

Question 44 It seems that NAICS code 923120 is not available SAM.gov. Can NAICS code 488999 - All Other Support Activities for Transportation be considered as the NAICS code for this solicitation?

Answer 44: Yes.

Question 45 RFP Section C.2.2: To what extent, if any, will the contractor be expected to work with the provincial logistics technical working group?

Answer 45: USAID is not familiar with the provincial logistics technical working group. The contractor is expected to work with provincial coordination groups as specified on page 19 of the solicitation.

Question 46 What, if any, LMIS are currently in use centrally or provincially?

Answer 46: There is an electronic LMIS at the health facility, called SIGLUS, and the districts and province levels use another, interoperable system called SIMAM. At the central level, SIMAM is used as well as a warehouse management system (MACS) that all feed into the

Central Tool, which maintains standardized commodity lists and provides extensive data analysis features.

Question 47 What criteria establish an emergency commodity order? (p18) Answer 47: An emergency order is one that cannot be included in the routine monthly distribution because it is not available for delivery due to no fault of the warehouse. For example, if an emergency delivery is requested because the facility or district failed to submit a requisition by the deadline, then it would not be considered an emergency. However, if an emergency delivery is required because a delivery from the upstream level was unexpectedly delayed, then it could be classified as an emergency.

Question 48 What data tags are used today for commodity tracking (e.g., serial number, lot number, bar code, QR code)? (p 18) Answer 48: USAID does not have this information.

Question 49 What roles (in any organization) are expected to be the primary users of the web-based delivery note and tracking system? (p 19) Answer 49: The purpose of the vehicle tracking system is to track the status of a delivery. The tracking system and delivery note are not intended to track commodities or the contents of the delivery. Please see changes to section C.3.3 of the solicitation.

Question 50 What does the government consider the “optimum proportion of men and women employed by this contract”? (p. 20) Answer 50: USAID does not have the “optimum proportion of men and women to be employed by this contract”. Offerors should submit proposals in accordance with section C.4.1 of the solicitation.

Question 51 Attachment J.6: Medicine and Kit list was provided. It appears that none of the presented items require a temperature-controlled supply chain. Please confirm? If a cold chain is required, please indicate any associated volumes per health facility per district.

Answer 51: See answer to Question 1.

Question 52 Section F.5 reports and deliverables, page 32: Please clarify expectations and specifications?

Answer 52: The expectations and specifications are provided in the table and descriptions found in section F.5.

Question 53 Section C.3.3 page 19: It is expected for contractors to participate in meetings to maintain close coordination with all partners (DPS, MISAU, other third parties). Please clarify the precise role expected from the contractor?

Answer 53: The contractor should participate in meetings to plan and confirm delivery dates as well as provide a post-delivery review of the monthly distribution process to identify potential areas for improvement in execution.

Question 54 Section F: On the RFP it is mentioned that the submission of the proposed delivery dates and Fee schedule. Please provide a clearer explanation on this expectation.

Answer 54: The expectations are as outlined in sectio F.5 of the solicitation.

Question 55 Gender Action Plan - Section Cf. Page 20: The RFP mentions that “the selected contractor” must provide this plan. Please clarify this plan should be provided after the award (and not at proposal phase).

Answer 55: The Gender Action Plan will be submitted by the selected contractor after the award. Offerors are not required to submit a Gender and Action Plan as part of the proposal.

Question 56 The Cancellation Ceiling referenced in Section B of the previous RFP has been excluded from Section B in this RFP. However, Section M.3 does include a reference to a Cancellation Ceiling as part of the submission. Do offerors need to include a Cancellation Ceiling estimated amount?

Answer 56: The cancellation fee is not included in this RFP. Offerors are not required to include a Cancellation Ceiling.

Question 57 Can USAID clarify the page allocation and page counts as the total of 40 pages (as indicated on p. 100) is greater than the sum of the individual items which are described under the technical proposal (p. 100-102). Please confirm what specific sections and annexes are included in the 40-page limit.

Answer 57: Annexes are not included in the 40 page limit. Please see table in Question 82.

Question 58 The “USAID CHEGAR Incentive and Monitoring Framework” indicates that the incentive fee will be based on the value of deliveries. However, Section B of the RFP and the budget format seem to indicate that the fee will be based on total project costs. In addition, there is no estimated value of deliveries presented in the RFP. Could USAID clarify the basis for the fee to be proposed by offerors? If the basis is the value of deliveries, could USAID provide an estimated value of deliveries over the life of the project?

Answer 58: The fee will be based on the total project cost. See the revision to the Incentive and Monitoring Framework, attachment J.8.

Question 59 The “USAID CHEGAR Incentive and Monitoring Framework” indicates that the incentive calculations will be made on a quarterly basis but also that the incentive fees will be approved for reimbursement on a semi-annual basis. Can USAID confirm that this is correct?

Answer 59: Both the incentive calculation and the payout will be on a quarterly basis.

Question 60 The RFP references both incentive fees and a share ratio. Will the share ratio be calculated at the end of the project only? If that is the case, will the share ratio be applied to the contractor’s calculated fee after all incentive fee calculations have been made? What will be the impact of a cost overrun that exceeds the remaining amount of the fee incentive calculated for a contractor?

Answer 60:The share ratio will be calculated on a quarterly basis as the incentive fee is being calculated and will be factored in before the incentive payments are made.

Question 61 Is the target cost referred to in the share ratio clause the same as the total estimated cost in the cost schedule (Section B.4.)?

Answer 61: Yes, the estimated cost and the target cost are the same.

Question 62 On Page 102, the Past Performances Information (PPI) is listed as an Annex of the Technical proposal. However, on page 98 (L.6), there is reference of submission being done separately to an email address. How should the PPI be submitted?

Answer 62: Only one submission of Past Performance Information is required. Past Performance must be submitted as a separate document, but submitted at the same time as the technical proposal package.

Question 63 Attachment J8 Incentive and Monitoring Framework: Please confirm that an offeror's proposed incentive fee would be split 50/50 between the two KPIs listed in the attachment (On-time delivery and In-full delivery). For example - if an offeror proposes a 6% total fee - a maximum of 3% would be available for on-time delivery performance, and 3% available for In-full delivery performance (assuming a score on both between 91-100), is this understanding correct?

Answer 63: That is correct, the incentive fee will be split 50/50 between On-time delivery and In-full delivery.

Question 64 Attachment J8 Incentive and Monitoring Framework: Please clarify the meaning of the statement in the 2nd paragraph in Attachment J2 - "...propose a reasonable base fee not exceeding 2% in accordance with the quantity and risks." The term "base fee" is not clear. Is this intended to mean the minimum percentage incentive fee an offeror may propose?

Answer 64: The term base fee refers to the minimum fee an offeror may earn. All other fees earned will be based on meeting the two KPIs.

Question 65 Att J2 - Budget Template: Is Attachment J2 the required format to submit the cost proposal?

Are there any other spreadsheet files required?

Answer 65: The budget template provided is illustrative, and therefore Offerors are not obligated to use the same budget template. Offerors may revise the budget template as needed.

Question 66 Section C SOW Pg 13-14 Roll Out Schedule & Att J8 Incentive and Monitoring Framework:

The draft roll-out schedule provided on RFP page 14 projects gradual transition to host nation in some provinces which would conceivably lower an offeror's proposed costs in years 2 and 3 (to roughly half of the provinces being serviced by CHEGAR in year 3 vs what was provided in year 1). Given the share percentages described for cost over and under runs - how would the sharing of a significant cost over run be handled in the event the transition to host nation is delayed through no fault of the offeror?

Answer 66: If this happens, the percentages of cost over and under runs will be reviewed and adjusted.

Question 67 Clauses Incorporated by Reference, Pg 72: The RFP contains FAR 52.219-14, Limitations on Subcontracting. Our understanding is this clause and all other clauses prescribed by FAR Part 19 are only appropriate for small business set-asides. The RFP is listed as a full & open competition. Please confirm if FAR 52.219-14 is applicable to this solicitation.

Answer 67: FAR 52.219-14 is not applicable to this solicitation as competition is restricted to local and locally established organizations.

Question 68 Cost Accounting Standards, Section K.7, Pg 90: CAS rules normally don't require a disclosure statement for Modified CAS. Does USAID require a CAS Disclosure Statement even if the contractor is not subject to full CAS requirements?

Answer 68: No.

Question 69 Cost Accounting Standards, Section K.7, Pg 91: Will the government consider the possibility of a firm fixed price proposal pricing basis (versus cost plus incentive)?

Answer 69: This is a CPIF-PI contract and only CPIF-PI proposals will be accepted.

Question 70 The cover letter of this RFP states that USAID anticipates awarding one cost plus incentive fee–performance incentive (CPIF-PI) type contract. Section B.2 (page 6) of the RFP states that the anticipated contract is a Cost-Plus-Incentive Fee (CPIF) type contract. Considering the performance incentives discussed in Attachment J.8, would USAID please confirm the anticipated contract type is CPIF-PI?

Answer 70: USAID confirms that the anticipated contract type is CPIF-PI.

Question 71 The cover letter of this RFP states that USAID anticipates awarding one cost plus incentive fee–performance incentive (CPIF-PI) type contract. It is our understanding that a CPIF-PI type contract includes cost incentives and performance incentives. Per 16.402-1 (Cost incentives), the cost incentive takes the form of a profit or fee adjustment formula, whereas per 16.402-2 (Performance incentives), the performance incentive should be designed to relate profit or fee to results achieved by the contractor, compared with specified targets. We understand cost incentives and performance incentives as being discrete types of fees, each serving a unique purpose in the awarded contract. The language in the first two introductory paragraphs of Attachment J.8 (Incentive and Monitoring framework) references the cost incentive and performance incentive components of this contract type and proposes a single-fee arrangement that would benefit from further clarification. Would USAID kindly consider separating the cost incentive fee (as described in Section B.3) from the performance incentive fee as described under Attachment J.8 by revising Attachment J.8 to discuss only the performance incentive fee?

Answer 71: Please find enclosed the revised Attachment J.8.

Question 72 Section B.2 (page 6) states, “The anticipated contract is a Cost-Plus-Incentive Fee (CPIF) type contract. The general structure and management of the incentive fee arrangements are described in Section B.3 and B.4.” It is our understanding of FAR 16.405-1 that a CPIF contract type specifies a target cost, a target fee, minimum and maximum fees, and a fee adjustment formula. While Section B.3 provides for minimum and maximum fees, and Section B.4 provides for a target fee, there is not a clear provision for a target cost, and B.3 states that the possible incentive fee and fee adjustment formula will be negotiated with the apparent successful offeror. To allow offerors to submit proposals in accordance with FAR 16.405-1, would USAID kindly revise Section B.3 or B.4 to reflect a target cost, a target fee, minimum and maximum fees, and state the fee adjustment formula?

Answer 72: The target cost will be the contractor’s proposed total estimated cost.

Question 73 Section B.6 (page 7) states that costs billed to this contract will be limited to allowable, reasonable, allocable, and necessary in accordance with FAR 52.216-7. By contrast, Section B.7 of the RFP states that “... for every dollar that the contractor exceeds the target cost, the government will pay 75% and the remaining 25% will be deducted from the contractor’s incentive fee payout.” This contradicts our understanding of a CPIF type contract, whereby the contractor will be paid for total allowable, reasonable, allocable, necessary costs, plus the minimum, target, or maximum fee. Would USAID kindly revise the language under Section B.7 (in all areas where applicable) to allow the selected contractor to bill its total allowable cost, plus a minimum, maximum, or target fee?

Answer 73: The contractor will be paid for all allowable, reasonable, and allowable expenses in addition to the minimum fee.

USAID defines incentive fee as all fees in excess of the minimum fee. In situations of overruns/underruns, the share ratio will be applied and will determine incentive fee (in addition to the minimum fee) that the contractor may or may not receive.

Question 74 Section F.2 (page 30) states the period of performance to commence effective on the date of signing the contract. Would USAID kindly provide an estimated start date for this contract?

Answer 74: The start date will depend on the duration of the evaluation process, and is estimated to be around August-November 2020.

Question 75 Section G.6 (page 45) states that “The payment method for this award is on a monthly reimbursement basis.” Would USAID consider providing advance financing to the contractor, if awarded to a locally established organization?

Answer 75: There will be no advance payments. Payment term is 30 days.

Question 76 Section H.8 (page 47) states that “... the contractor is hereby authorized to purchase the following equipment and/or resources: (TBD).” Would USAID kindly share with offerors the list of authorized equipment and resources?

Answer 76: USAID does not have a list to share. At this stage, Offerors should propose the list of all equipment and/or resources required to implement the activity for USAID approval.

Question 77 Section H.16 (page 54): We kindly request that USAID remove the requirement that “any individual salary or wage [may not], without approval of the Contracting Officer, exceed the employee’s current salary or wage, or the highest rate of annual salary or wage received during any full year of the immediately preceding three (3) years.” This restriction for compensation appears to be inconsistent with AIDAR 752.7007 Personnel Compensation, incorporated in the contract under Section I and H.15, which stipulates that personnel compensation be in accordance with the contractor’s established policies, procedures, and practices, with reimbursement subject only to the USAID Contractor Salary Threshold. The limitation on compensation may preclude contractors from following their established policies, procedures, and practices, as required by AIDAR 752.7007.

Answer 77: USAID will follow AIDAR 752.7007 and will evaluate the proposed rates based on the contractor’s established policies, procedures, and the cost principles applicable to this contract, and other factors as well.

Question 78 Section H.11 (page 48) references the contractor’s submitted subcontracting plan to be used for subcontract reporting requirements, but a subcontracting plan is not included in Section L.

Would USAID kindly clarify whether a Subcontracting Plan should be included with the cost proposal, or if this plan would be submitted upon award?

Answer 78: A subcontracting plan in accordance with FAR 52.219-9 is not required.

However, as part of the evaluation, Offerors are required to show how they will form partnerships with local companies.

Question 79 The clause in Section I.5 (page 76) of the RFP allows for the option to extend services not to exceed six months. The cover letter of the RFP states, however, that the period of performance of the anticipated contract to be three years, with no option years. Would USAID kindly confirm that the anticipated contract can be extended beyond the period of three years, up to no more than six months, with USAID approval?

Answer 79: The estimated period of performance is for 3 years, with no options years.

However, after the contract is awarded and only if the need arises, the contract may be extended for up to 6 months.

Question 80 Section L.6 (page 98) suggests that Past Performance information must be submitted separately from the technical proposal; however, past performance is included within the list of requirements for the Technical Proposal on page 101. Would USAID kindly clarify whether the Past Performance information should be submitted in advance of the technical proposal package, and if so, by what date; or whether this may be submitted as part of the technical proposal package?

Answer 80: Past Performance information is a separate document, but submitted with the technical proposal package. See answer to Question 62.

Question 81 Section L.8 (page 100) states the font and size as Times New Roman, 11 point. Would USAID consider a smaller font (9 point or 10 point) for tables, graphics, and text boxes?

Answer 81: Yes, a smaller but legible font is acceptable for tables, graphics, and text boxes.

Question 82

Section L.8.i (pages 100-102) states that technical proposals must not exceed 40 pages.

Please confirm that the cover sheet, table of contents, executive summary, technical approach, personnel and management structure, and past performance (up to 23 pages) will comprise the technical proposal, and that authorized annexes (up to 28 pages) are not included in the referenced page limit. If not, we kindly request that USAID increase the page number, based on estimates provided in the proposal (see next page).

Answer 82: The cover sheet, table of contents, executive summary, technical approach, personnel management structure, and past performance will comprise the technical proposal (the number of pages for each has been revised in the table below). The authorized annexes (up to 28 pages) are not included in the referenced 40-page limit.

Section Pages Table of Contents Not to Exceed 2 page Executive Summary Not to Exceed 3 pages Technical Approach Not to Exceed 20 pages Personnel & Management Structure No to Exceed 10 pages Past Performance No to Exceed 5 pages Subtotal Not to Exceed 40 pages Authorized Annexes 1)Draft MEL Plan Not to exceed 5 pages 2)Resumes of Key Personnel (3 key personnel)

No to Exceed 3 pages per resume (total 9 pages)

3)Key Personnel Letters of Commitment (3 key personnel)

3 pages

4) Organizational Chart 1 page

5) List of Past Performance Information (up to 10)

Not to exceed 1 page per award (up to 10 pages)

Subtotal Not exceed 28 pages Grand Total 68 pages

Question 83 Section M.3(b) (page 107) states that “Cost proposals should include loaded costs for kilometer (for 2 ton vehicles, 10 ton vehicles for both routine deliveries and emergency deliveries).” Would USAID kindly clarify what costs are expected to be included in a “loaded cost per kilometer” under the CPIF type of mechanism?

Answer 83: “The loaded cost per kilometer” language has been removed from the solicitation.

Question 84 It is our understanding that Attachment J.8 (Incentive and Monitoring framework) intends to outline the performance incentive fee structure of this CPIF-PI contract type. Performance incentive fees, when inserted alongside cost incentive fees, can serve to inspire the contractor to work harder while keeping costs to a minimum. We appreciate the intent of the two types of fees and their combined effect on the contractor’s performance, as well as the value that they bring to the client. We are, however, unable to understand the fee structure and fee application as described in the table on page 1 of Attachment J.8. Would USAID kindly explain the fee table, or preferably revise it to include performance incentive fees exclusively (in whole dollar, not percentages) as tied to discrete performance metrics? During implementation, this will allow both parties to clearly identify the portion of the contract budget that is allocated to performance incentive fees, identify the performance metrics that are tied to such fees, and calculate fee based on the metrics achieved.

Answer 84: The performance incentive fee cannot be provided in the whole dollar amount as this will be based on the total estimated contract value that the contractor provides. USAID expects both the minimum (base fee) and maximum (incentive fee) fees to be a percentage of the proposed cost.

Question 85 Can USAID confirm that this is a new requirement? If it is not, can USAID provide the incumbent contract name and number? What was the previous total Contract Value?

Answer 85: This is a new requirement.

Question 86 RFP Section L.6 and L.8.f and L.8.g: Please clarify the instruction that ‘past performance must not be re-submitted with the technical proposal.’ Is this a reference to Attachment J.3 past performance?

Answer 86: Past Performance information must be submitted once, as a separate attachment to the Technical submission. Attachment J.3 is the information required to meet the requirement for the Past Performance submissions.

Question 87 Is it acceptable for deliverables, such as, the communications plan, branding and marketing plan, and MEL Plan to be performed remotely from the United States? (p. 31-35) Answer 87: Plans can be submitted electronically. Full performance of the activity is expected to be in Mozambique.

Question 88 RFP Section L.6 and L.8.f and L.8.g: Is it correct to assume that in section L.8.g, the past performance list prepared by the contractor may be submitted as an annex to the Technical Proposal?

Answer 88: See answer to Question 86.

Question 89 RFP Section L.6 and L.8.f and L.8.g: Is it correct to assume that the ‘List of Past Performance Information’ (1 page per award up to 10 awards) referred to in section L.8.g.5 differs from L.8.f (not to exceed 3 pages)?

Answer 89: See answer to Question 86.

Question 90 The Budget Template includes “Overhead” and “Material Overhead”. What can be considered Material Overhead in this proposal?

Answer 90: Please see response to Question 6. Offerors may revise the budget template as needed.

Question 91 In Section L.9.3 it states that “The information requested must be clearly marked on the subject with the following information: RFP No.: SOL-72065620R00001, USAID…