USAID_Loan_Mgmt_SF-33_Solicitation.pdf

SOL-OAA-15-000018

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

1 93

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

M/OAA/RM

Mgmt. Office Acquisition & Assist.

301 4th. Street S.W.

Washington DC 20564

1200 ED 01/22/2015

Sebastain Cor-Dova scor-dova@usaid.gov

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PAGE(S)

Gwendolyn Ruffin

AUTHORIZED FOR LOCAL REPRODUCTION

Previous edition is unusable

STANDARD FORM 33 (Rev. 9-97)

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

7-10

11-25 28-30 31-33 34-38

39-58

60-68

69-82

83-90

TABLE OF CONTENTS

PART I – THE SCHEDULE

SECTION B - SUPPLIES OR SERVICES AND PRICE/COSTS

B.1 PURPOSE

B.2 CONTRACT TYPE

B.3 CONTRACT LINE ITEMS

B.4 NEGOTIATED LABOR CATEGORIES & RATE AGREEMENT FOR BASE AND

OPTION YEARS LABOR

SECTION C - DESCRIPTION/SPECIFICATIONS/STATEMENT OF WORK

SECTION D – PACKAGING AND MARKING

D.1 BRANDING AND MARKING POLICY

SECTION E - INSPECTION AND ACCEPTANCE

E.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE

E.2 INSPECTION AND ACCEPTANCE

E.3 MONITORING AND EVALUATION

SECTION F - DELIVERIES OR PERFORMANCE

F.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE

F.2 PERIOD OF PERFORAMANCE

F.3 PLACE OF PERFORMANCE

F.4 PERFORMANCE STANDARDS

F.5 KEY PERSONNEL

F.6 AAPD 04-06 SUBMISSION REQUIREMENTS FOR DEVELOPMENT

EXPERIENCE DOCUMENTS (JAN 2004)

SECTION G - CONTRACT ADMINISTRATION DATA

G.1 ADMINISTRATIVE CONTRACTING OFFICE

G.2 COGNIZANT TECHNICAL OFFICER

G.3 PAYING OFFICE AND PROCEDURES

G.4 CONTRACTOR’S PRIMARY POINT OF CONTACT

G.5 ACCOUNTING AND APPROPRIATION DATA

G.6 TECHNICAL DIRECTIONS/RELATIONSHIP WITH USAID

SECTION H – SPECIAL CONTRACT REQUIREMENTS

H.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE

H.2 AUTHORIZED GEOGRAPHIC CODE

H.3 PERSONNEL COMPENSATION

H.4 ADDITIONAL REQUIREMENTS FOR PERSONNEL COMPENSATION

H.5 EXECUTIVE ORDER ON TERRORISM FINANCING

H.6 AAPD 04-17 USAID DISABILITY POLICY – ACQUISITION (DEC 2004)

H.7 USAID IMPLEMENTATION OF SECTION 508 OF THE REHABILITATION

ACT OF 1973 AND FEDERAL ACQUISITION CIRCULAR (FAC) 97-27

“ELECTRONIC AND INFORMATION TECHNOLOGY ACCESSIBILITY

H.8 ORGANIZATIONAL CONFLICT OF INTEREST

H.9 CONFLICTS OF INTEREST

PART II – CONTRACT CLAUSES

SECTION I - CONTRACT CLAUSES

I.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE

I.2 52.204-7 CENTRAL CONTRACTOR REGISTRATION (JULY 2006)

I.3 52.215-19 NOTIFICATION OF OWNERSHIP CHANGES (OCT 1997)

I.4 52.217-8 OPTION TO EXTEND SERVICES (NOV 1999)

I.5 52.217-9 OPTION TO EXTEND THE TERM OF THE CONTRACT (MAR 2000) . 44

I.6 52.222-39 NOTIFICATION OF EMPLOYEE RIGHTS CONCERNING PAYMENT

OF UNION DUES OR FEES (DEC 2004)

I.7 52.227-14 -- Rights in Data – General………………………………………………. 47

I.8 AIDAR 752.202-1 DEFINITIONS (JAN1990)………………………………………47

I.9 AIDAR 752-209-71 ORGANIZATIONAL CONFLICTS OF INTEREST

DISCOVERED AFTER AWARD (JUN 1993)

I.11 AIDAR 752-211-70 LANGUAGE AND MEASUREMENT (JUN 1992)

I.12 AIDAR 752.7034 ACKNOWLEDGMENT AND DISCLAIMER (DEC 1991)

I.11 AIDAR 752.7001 BIOGRAPHICAL DATA (JULY 1997)

I.13 AIDAR 752.7006 NOTICES (APR 1984)

I.14 AIDAR 752.7008 USE OF GOVERNMENT FACILITIES OR PERSONNEL (APR

1984)………………………………………………………………………………………57

I.15 AIDAR 752.7025 APPROVALS (APR 1984)

ART III – LIST OF DOCUMENTS, EXHIBITS AND OTHER ATTACHMENTS

SECTION J – LIST OF DOCUMENTS, EXHIBITS AND OTHER ATTACHMENTS

PART IV – REPRSENTATIONS AND INSTRUCTIONS

SECTION K – REPRSENTATIONS, CERTIFICATIONS, AND OTHER STATEMENTS OF

BIDDERS

K.1 NOTICE LISTING SOLICITATION PROVISIONS INCORPORATED BY

REFERENCE

K.2 AGREEMENT ON, OR EXCEPTIONS TO, TERMS AND CONDITIONS

K.3 COMPLIANCE WITH VETERANS EMPLOYMENT REPORTING

REQUIREMENTS

K.4 SIGNATURE

K.5 ANNUAL REPRESENTATONS AND CERTIFICATIONS (JAN 2006)

K.6 CERTIFICATION REGARDING DEBARMENT, SUSPENSION, PROPOSED

DEBARMENT, AND OTHER RESPONSIBLITY MATTERS (DEC 2001)

K.7 PLACE OF PERFORMANCE (OCT 1997)

K.8 AFFIRMATIVE ACTION COMPLIANCE (APR 1984)

K.9 CERTIFICATION OF TOXIC CHEMICAL RELEASE REPORTING (AUG 2003)

K.10 COST ACCOUNTING STANDARDS NOTICES AND CERTIFICATION (JUN

2000)

K.11 PROPOSAL DISCLOSURE – COST ACCOUNTING PRACTICE CHANGES

(APR 2005)

SECTION L – INSTRUCTIONS, CONDITIONS, AND NOTICES TO BIDDERS

L.1 NOTICE LISTING CONTRACT CLASUES INCORPORATED BY REFERENCE

L.2 INSTRUCTIONS TO OFFERORS – COMPETITIVE ACQUISTION (JAN 2004).. 69

L.3 TYPE OF CONTRACT (APR 1984)

L.4 SERVICE OF PROTEST (SEPT 2006)

L.5 SOLICITATION PROVISION INCORPORATED BY REFERENCE (FEB 1998).. 74

L.6 GENERAL INSTRUCTIONS TO OFFERORS

L.7 INSTRUCTIONS FOR THE PREPARTION OF THE TECHNICAL PROPOSAL .. 77

L.8 INSTRUCTONS FOR THE PREPARTION OF THE COST/BUSINESS PROPOSAL

L.9 INSTRUCTIONS FOR THE PREPARATION OF BRANDING AND MARKING

PLANS

SECTION M - EVALUATION CRITERIA

M.1 BASIS FOR AWARD

M.2 EVALUATION FACTORS & RATING METHODOLOGY

M.3 EXCHANGE WITH OFFERORS AFTER RECEIPT OF ROPOSALS…………….86

M.4 DETERMINATON OF THE COMPETITIVE RANGE AND CONTRACT AWARD

................................................................................................................................. ………86

M.5 ADJECTIVAL RATING

ATTACHEMENT 1 USAID LOAN SERVICING SYSTEM REPORTS (94)

ATTACHMENT 2 PAST PERFORMANCE INFORMATION

ATTACHEMENT 3 DISCLOSURE OF LOBBYING ACTIVITIES

PART I – THE SCHEDULE

SECTION B – SUPPLIES OR SERVICES AND PRICE/COSTS

B.1 PURPOSE

The purpose of this contract is to effectively handle the administration of loans and foreign currency transactions. The contractor will perform a number of services related to the USAID financial portfolio.

The services include administration of foreign currency transactions, receipt and disbursement of funds, loan accounting, collections, maintenance of documents, and financial reporting, process large foreign and domestic money transfers, and appropriately provide maintenance of deposit and escrow accounts inclusive of other domestic and foreign financial task and determined/specified by USAID and/or the Contracting Officer.

B.2 CONTRACT TYPE: FIRM-FIXED-PRICE (FFP) LEVEL OF EFFORT (LOE)

B.3 CONTRACT LINE ITEMS:

Base Year February 6, 2015 – February 5, 2016

B 3.1 LINE ITEM DESCRIPTION: In accordance with this contract, the contractor, independently and not as an agent of the Government, shall provide all necessary materials, labor, equipment, and facilities, except as specified herein to be furnished by the Government, and shall do all that which is necessary or incident to the satisfactory and timely performance of the following Contract Line Item Number (CLIN):

CLIN SUPPLIES OR SERVICES QUANTITY UNIT AMOUNT

0001 LOAN SERVICE MANAGEMENT Hours Direct

Description: The Contractor shall provide all Productive the necessary service and support, material, Person Hours labor, and equipment for maintenance and management of Loan Servicing and Assist Management support for (USAID) portfolio of loan and loan guarantees as specified in the Statement of Work (SOW) as set forth in

SECTION C.

FFP

0002 DATA REPORTS 1 Lot NSP

Description: Data and reports to be delivered shall be in accordance with Attachment 1 as set forth herein and made a part of the contract. CLIN 0002 shall be by 1 Lot Not Separately Priced (NSP).

0003 TRAVEL 1 Lot TBD Description: All travel shall be approved by the

COR with prior authorization from the Contracting Officer. Travel shall be at Cost non-fee bearing.

Cost

0004 PHASE IN/OUT TRANSITION 1 Lot Description: In accordance with paragraphs 7.1 and 7.2 of the Statement of Work. One month prior to the Contract end date, the Contractor shall initiate the Phase-in Phase-out process.

FFP

B-3.2 FIRM-FIXED-PRICE, LEVEL OF EFFORT TERM CONTRACT:

a. In the performance of CLIN 0001 of this contract, the contractor shall provide the following level of effort within the time period as set forth in Section F-1 hereof:

DIRECT PRODUCTIVE PERSON HOURS

COMPOSITE RATE

LEVEL OF EFFORT PER HOUR TOTAL

Hours? $?? $??

b. DPPH is defined as prime contractor, subcontractor, and consultant actual direct labor hours exclusive of vacation, holiday, sick leave, and other absences.

c. In accordance with FAR 16.207-2, entitlement to full payment is based on the determination by the Government that the required level of effort and reports have been provided and are acceptable.

B.4 NEGOTIATED LABOR CATEGORIES & RATE AGREEMENT FOR BASE AND

OPTION YEARS:

In accordance with Table 1 below, the offeror shall provide the specific labor categories, labor rates, and hours proposed in the performance of this contract for both the base and option years. The hours should be proposed as Full-Time-Equivalent or in whichever standard accounting method the contractor uses to track employees hours spent will spend in the support and manage the effort identified in the SOW of this contract. If the rates are burdened (Overhead, G&A etc.) the offeror shall so state.

Table 1

Base Year - February 06, 2015 – February 5, 2016 Labor Category. Rate per Hour Hours Total Price Program Manager*

Total Hours Total Price

*Note. The Contractor will provide all additional staffing, rates, hours and burdened price for this requirement.

Option Year 1 – February 6, 2016 – February 5, 2017

Program Manager

Option Year 2 – February 6, 2017 – February 5, 2018

Option Year 3 – February 6, 2018 – February 5, 2019

Option Year 4 – February 6, 2019 – February 5, 2020 Labor Category. Rate per Hour Hours Price

Pursuant to FAR 52.232-22, Incremental Funds, funds are incrementally provided as indicated below. The following chart shows the total amount per CLIN and the total funded amount, and the remaining amount to be funded. . The total funded amount is presently obligated and available for payment. As funds become available they will be obligated by modification to the contract. Additional funds are expected to be placed on the contract as indicated below.

Contract Line Item Number

Total Price Total Obligated Amount

Additional Funding Required

Anticipated date(s) of future funding

0001 $ $ $ MM/DD/YYYY

0002 $ $ $ MM/DD/YYYY

The contracting officer will revise this table as funds are obligated to the contract. Additional funding will be subject to the FAR 52.232-18 “Availability of Funds.”

B.4.1 LABOR

Compensation of personnel under this contract or any resulting subcontract must be in accordance with AIDAR 752.7007 Personnel Compensation, the full text of which is in section H. The work day and work week policies and method of accounting for paid absences including holidays for the contractor and major subcontractors is set forth in attachment [The Contracting Officer will fill in the attachment number and incorporate the information from the contractor into Section J of the contract] of Section J.

[END OF SECTION B]

SECTION C – DESCRIPTION/SPECS./STATEMENT OF WORK

1.0 Introduction:

1.1 The United States Agency for International Development (USAID) currently administers a large portfolio of loans and loan guarantees extended to foreign governments and foreign nongovernmental entities. USAID requires the contractor to have extensive experience in the administration of loans and foreign currency transactions to perform a number of services related to the portfolio. The contract services shall include receipt and disbursement of funds, loan accounting, collections, maintenance of documents, and financial reporting, among other financial reports (see attachment J1). The characteristics of the loans and loan guarantees, activities to be performed by the contractor, and contractor requirements are summarized below. Under Section II- B.8, the paying and transfer agent (PTA) requirements are distinguished between guarantees where the contractor is the PTA from those where it is not.

1.2 Portfolio Characteristics: The portfolio administered by USAID consists of direct loans, loans fully guaranteed by USAID, and portfolios of loans having a partial guarantee.

1.3 Direct Loans: USAID manages a portfolio of approximately 330 loans with outstanding balances around $15.5 billion, which were made by the agency to borrowers in approximately 30 countries under various foreign assistance programs dating back to the 1960's. With a few exceptions, no direct loans have been made by the agency since the mid-1980.

The typical direct loan has a final maturity of 40 years, with a 30-year amortization period beginning after 10 years, and semi-annual interest payments. Some loans are denominated in US dollars others in local currency. Local currency loans may or may not provide for payments to be adjusted to reflect changes in the exchange rate between the local currency and US dollars. Interest rates are usually fixed for the life of the loan.

In many cases, the original loans have been restructured or rescheduled because of the inability of borrowers to meet debt service requirements. Typically, in such cases, a series of defaulted payments is rescheduled to reflect a later maturity date than the original loan. In addition, certain countries have had their loan balances reduced between 50% and 100% and any remaining balances restructured.

At present all loan servicing functions for direct loans are performed under contract with a commercial bank in Washington, D.C.

2.0 Program Loan Guarantees:

2.1 Urban and Environmental –Housing Guarantee (HG) Credit Program: USAID has had about 190 loan guarantees on HG loans, of which approximately 65 have been repaid, and some written off. Of the remaining, 95 current outstanding balances are around $ 750 million. These HG loans were made by U.S. lenders to foreign governments and non-governmental entities in approximately 22 countries.

These loan guarantees, covering 100% of principal and interest, were provided under programs designed to finance housing and urban infrastructure improvements. The guaranteed loans have a variety of final maturities, ranging from 10 to 30 years, often with grace periods before amortization begins. Semi-annual interest payments are either fixed for the life of the loan or indexed to a market rate, such as one-year Treasury yields or London Interbank Offered Rate (LIBOR). Guaranteed loans are, with few exceptions, denominated and repayable in U.S. dollars. Appropriations for the UE (HG) Program were discontinued after FY 2000. The last HG loan under the Program was disbursed in 2002.

As with the direct loan portfolio, a significant number of guaranteed HG loans have been rescheduled under the International Paris Club terms, with total rescheduled loans balances currently outstanding of around $201.5million as of March 31, 2014. There are currently several large rescheduling pending.

When a guaranteed loan is rescheduled, USAID continues to pay the lender according to the original schedule of interest and principal payments and collects from the borrower according to the new schedule. The rescheduled loan, therefore, is administered as if it were a direct loan. In addition, certain countries have had their loan balances reduced between 50% and 100% and any remaining balances restructured.

At present all loan servicing functions for direct loans and rescheduled loans are performed under contract with a commercial bank subsidiary in Washington, D.C.

2.2 Sovereign Loan Guarantees – Sovereign guarantees are specifically authorized by Congress and administered by USAID. Once Congress has authorized the use of a sovereign guarantee, an interagency committee has met to structure the guarantee and agree on terms and conditions. That group has been coordinated by the State Department with active participation of USAID, Treasury, and OMB.

These loans are serviced by various financial institutions acting as the Fiscal Agent under separate agreements (see below under 2.2.1 to 2.2.6). The current Sovereign Loan Guarantee portfolio includes:

2.2.1 Israel: $10 billion (271-AG-001) Program (1992) – The U. S Government arranged a special loan guarantee program with Government of Israel (GOI) which is managed by Department of State, but administered by USAID. There were eleven (11) borrowings on the books totaling $9.2 billion under the 1992 Program. Currently $5.4 billion is outstanding as of March 31, 2014. The Fiscal Agent (FA) for loans under this Program is The Bank of New York Mellon, New York (as successor to the original FA, U.S. Trust Company).

2.2.2 Israel: $9.0 billion (271-BG-001) Program (2003) - In 2003, pursuant to the Emergency Supplemental Appropriations Act of 2003, the U.S. Government arranged another special loan guarantee program (to be disbursed over 3 years) with GOI, managed by State and administered by USAID. There have been 5 loan disbursements under this Program, totaling $4.1 billion, currently outstanding as of March 31, 2014. The Fiscal Agent (FA) for loans under this Program is Midland Loan Services (subsidiary of PNC Bank, Pittsburgh), as successor to Riggs Bank NA.

2.2.3 Egypt: $1.25 billion (263-EG-001) Program (2003) – In 2003, under the same legislation covering the 2003 Israel (271-BG-001) Program, the U.S Government arranged a special $2.0 billion loan guarantee program for Egypt. One 10-year loan of $1.25 billion was disbursed in 2005. $1.25 billion outstanding as of March 31, 2014. The Fiscal Agent for this loan is Midland Loan Services.

2.2.4 Jordan: $1.25 billion (278-JG-001-A01) program (2012) – In 2012, under the legislation stated below, the U.S. Government arranged another special loan guarantee program with Government of Jordan (GOJ), managed by State and administered by USAID. Funds were fully disbursed. USAID is authorized, pursuant to Title III of the Department of State, Foreign Operations, and Related Programs Appropriations Act, 2012 (Div. I, Pub. L. 112-74), as applied to fiscal year 2013 funding by Section 1706(j) of the Further Continuing Appropriations Act, 2013. The Fiscal Agent for this loan is Midland Loan Services.

2.2.5 Tunisia: $485 million (664-TG-001-A01) Bond guarantee program (2012) – In December 2011, the U.S. Congress authorized the Tunisia loan guarantee program in the Fiscal Year 2012 Consolidated Appropriations Act, managed by State and administered by USAID. Title III of the Department of State, Foreign Operations, and Related Programs, Appropriations Act 2012, Division I of Public Law 112-74. USAID disbursed $30 million in subsidy cost was authorized by congress to cover the face value of the bond guarantee. The Fiscal Agent for this loan is Citibank London.

2.2.6 Ukraine: $1 Billion (121-UG-001 AO1) 5-year bond guarantee program (2014) authorized by the Congress in the Support for the Sovereignty, Integrity, Democracy, and Economic Stability of Ukraine Act of 2014 (P.L. 113-95); full amount of guarantees was obligated in May 2014 to include $193,800 in subsidy cost. The fiscal agent for this guarantee is Citibank, NA (London).

Additional Sovereign Loan Guarantees may be authorized during the contract’s period of performance

2.3 Development Credit Authority (DCA): In FY 1999, USAID began to implement the new Development Credit Authority authorized by Congress in FY 1998. This Program provides annual transfer authority allowing USAID Missions to convert portions of their development funds to DCA funds to support DCA credit activities in their countries/areas. DCA helps to mobilize local private sector funds for financing activities related to Missions' strategic objectives. DCA provides partial guarantees (usually 50%) in the form of loan portfolio guarantees (LPG's), loan guarantees (LG's), portable guarantees (PG's) and bond guarantees (BG's). The DCA portfolio has been growing rapidly.

There are currently 268 active DCA facilities obligated, totaling a maximum available amount of local lending of $2.5 billion The DCA portfolio can be expected to add approximately 30-40 new guarantee portfolios in each fiscal year with 200 new project deals during the life of the contract.

3.0 Contractor Requirements:

3.1 The activities to be performed for USAID by the contractor under this scope of work are widely varied and the degree of expertise and experienced personnel needed is very high. This is necessary to insure that the agency’s credit programs are effectively administered and that financial reporting on the activities involved meets the high standards required for audited financial statements. This section includes both overall requirements and specific loan-type requirements.

A. General Requirements: The task and deliverables below are required for all loan and loan guarantee types.

1. Fund Transfer Requirements: The contractor must possess the capability to process large foreign and domestic money transfers via SWIFT and the Federal Reserve, and perform receiving and disbursing activities related to its loan, loan guarantee and portfolio guarantee programs, including the maintenance of appropriate deposit and escrow accounts, the provision of required collateral, the investing of collected balances, and the maintenance of financial records related to these activities.

There are two methods of sending electronic funds – 1) Fedwire and 2) SWIFT (Society for Worldwide Interbank Financial Telecommunication). Contractor must confirm which method will be used in order to give the borrower proper instructions. Regardless of fund transfer method chosen, the contractor must ensure that any bank and/or transaction fees incurred are properly charged to the payee and not to

USAID.

There are two methods of sending electronic funds before sending funds electronically to USAID using either of the methods, please send an email to the Lead Analyst in M/CFO/CAR/Credit Program that tells us:

a. Amount

b. Approximate date that you will send funds to USAID

2. Loan Accounting and Collections: The contractor must manage a large portfolio of loans, and loan guarantees, involving a large number of foreign borrowers and guaranteed parties in developing countries. With respect to loans, the organization's loan administration resources must include the capacity to service approximately 821 loans, to establish and maintain computerized transactional-based accounting records for each loan on a current basis and related loan histories, and to issue accurate and timely notices of payment due to each borrower.

3. Registration and Transfer of Securities: The contractor must act as registrar, paying and transfer agent (functions as Paying and Transfer Agent, in connection with a Housing Guaranty borrowing, are performed by the corporate trust department of a commercial bank designated by USAID), and/or fiscal agent for issuers of securities. The contractor shall perform these services under contract to guaranteed loan borrowers. The services include providing potential purchasers of notes evidencing interests in the loans with copies of documents, canceling old notes of sellers, issuing new notes to buyers, and maintaining related records of ownership. It is the intent of USAID that the contractor shall also perform these functions for some loan guarantees through the Deposit Trust Corporation, and for any new issues, when possible.

4. Maintenance of Documents: The contractor shall handle the filing, storage, retrieval and protection of original documents and other records relating to its credit programs in accordance with ADS 502 and Contracting Officer/Contracting Officer Representative guidance. In connection with its loan and guarantee programs, USAID generates and receives a variety of documents and records necessary for the continuing management of the programs. These include but are not limited to loan agreements, rescheduling agreements, note holder lists, borrower lists, loan histories, and accounting records. The records shall be maintained as electronic documents to the greatest extent possible.

The contractor must maintain these records be filed so that they can be easily accessed when necessary and stored to include record imaging so as to be protected from damage or destruction. The quality of service required is equivalent to that required by regulated lending institutions with large commercial loan portfolios. The contractor must maintain loan servicing records in accordance with USAID established policies. Specific documentation retention requirements for each portfolio type are listed in Section B.

5. Financial Reporting: The contractor shall establish and maintain a computerized, loan-related and transactional-based accounting system to provide input from this data base to the agency's automated accounting system and to prepare timely and accurate reports (in excel file format or other agreed-to format) required by the agency from information derived from the data base. The Contractor shall also derive DCA, portfolio data, as appropriate, from the Agency's Credit Management System (CMS). Contractor will be provided "read only" access to CMS for this purpose.

As a government agency, USAID is required to provide various interested parties, including the Department of the Treasury, Office of Management and Budget and the Congress, with reports on the status and performance of its loan and guarantee programs which shall be provided by the contractor.

Also, in compliance with the Government Management and Reform Act of 1994, the agency is required to publish audited financial statements on all of its activities. Loan and guarantee programs constitute a major part of the agency's financial activities. See Attachment 1

6. Loan Accounting System: USAID does not possess a loan accounting system, therefore this requires that the loan accounting and transaction processing will be hosted and performed within the contractor’s existing loan accounting system. If the potential contractor anticipates a contract award, it must have a functioning loan accounting system in place prior to commencement of this contract. All system costs for the development, purchase, upgrade and/or modification of loan accounting system software will be the sole responsibility of the contractor. It must be in a position to demonstrate this new system and be ready to implement the system prior to incurring any costs on the Government contract.

During the transition period, the prospective contractor will be provided with detailed historical data, balances and transactions of USAID loan and loan guarantee program. Any conversion and data migration costs should be incorporated in the price proposal. The Contractor shall be responsible for any costs (to include pre-approved carryover from the Contract Officer) associated with providing, maintaining and developing software to implement an integrated international financial transaction loan accounting system and account for financial loan operations that impact the general ledger in compliance with sound business systems rules

7. Treasury Report on Receivables (TROR): The U.S. Treasury requires all federal agencies to make a report on receivables due from the public (TROR) on a quarterly basis, which is defined as outstanding debt excluding contingent liabilities. The contractor shall perform the following:

• Prepare the report in accordance to current standards issued by the Department of Treasury.

• Perform quality control reviews to ensure report balances reconcile to contractor-submitted general ledger and trial balances prior to submission.

• Prepare and submit lead sheets and analysis to adequately support report balances.

• Provide TROR reports to USAID at least two weeks prior to quarterly and year-end deadlines established by Treasury’s Financial Management Service (FMS).

• Assist as needed USAID staff in researching and resolving any discrepancies between the contractor-submitted TROR and other external reports.

8. U.S. Treasury Foreign Credit Reporting System (FCRS): The U.S. Treasury has developed its Foreign Credit Reporting System (FCRS) to facilitate automated reporting by federal agencies of their foreign debt obligations. Treasury requires agencies to submit their data electronically. The contractor shall provide Loan Management with the required files for their review and submission, and shall provide support and analysis to Loan Management and Treasury as required.

9. Annual Confirmation: To ensure the integrity of the financial procedure utilized by the contractor to supply services to USAID and to validate the accuracy of data and reports provided, the contractor shall be required to perform an annual internal audit of the contract activities conducted by a suitably qualified staff experienced in conducting financial audits. The staff must be organizationally independent from the persons responsible for providing other services under the contract.

The loan balance verification process shall begin in April of each year, using the loan balances as of March 31. Loan balances are not provided in the verification process, but rather the Agency debtors are given an inventory of their loans. The country representative, usually the Minister of Finance, is asked to provide USAID with loan balances per the country’s accounting records. The verification letters are prepared by the contractor and CFO staff, and sent to the debtor by the Agency OIG. When responses are received with differences indicated, or no responses are received, the contractor shall work with Agency staff, both CFO and mission FM, to reconcile the differences.

10. Paris Club: The State Department is responsible for negotiation debt relief through its representative in Paris. Each federal agency is required to report arrears, balances, and other relevant data to State in a format specified by the International Paris Club. The contractor shall be required to furnish Loan Management with periodic reports and data in the specified format for their review and submission to the State Department in response to arrears, balances and cash flow data.

11. Rescheduling: An individual loan subject to Paris Club negotiations typically has portions of its arrears rescheduled into a new loan or loans according to the agreed terms. The terms are expressed in multi-lateral, bi-lateral or implementing agreements. The Contractor working in conjunction with USAID is responsible for making all adjustments in the outstanding and new loans as a result of rescheduling.

The contractor shall perform all the calculations associated with rescheduling activities, and cooperate with Loan Management in reporting to the State Department by providing the required reports. The contractor shall provide Loan Management with an analysis of rescheduled loans based on the Paris Club minutes and recommendations for adjustments to the loan system. Loan Management shall review, and after making any required changes, the contractor shall post the loan system.

12. Subsidy Re-estimates: The contractor shall assist the agency in the development and preparation of the annual subsidy re-estimates for both Direct Loans and Loan Guarantees. The subsidy re-estimate process is an annual comparison of prior subsidy estimates for each previously disbursed loan/guarantee cohort; and actual loan/guarantee cash flows and updated assumptions about expected performance of the cohort. Cohorts are grouped by the fiscal year in which the subsidy funds were first obligated in USAID’s accounting.

The contractor shall assist in the following calculations (in excel file format):

a. Update for change in interest/discount rate between time of loan obligation (guarantee commitment) and disbursement (“interest rate re-estimate”);

b. Update for changes in technical/default assumptions (e.g., forecast technical assumptions) (“technical re-estimate”).

13. Delinquency and Past Due Amounts: The contractor shall not be required to undertake collection activities directly with borrowers except for notification of payments due, payments past due and methods of calculation of amounts due and past due. The contractor shall maintain a complete history of delinquency and default on each loan and efforts made to collect past due amounts. The contractor shall, with the assistance of USAID designated representatives, develop a system for notifying field personnel of past due amounts and receiving notification of collection efforts undertaken by USAID. USAID will provide the contractor with a monthly report of all collection activities undertaken by the regional controllers and USAID Washington DC, so that a complete record of collection activities can be maintained. The monthly report should include at a minimum, region, accounting station, USAID loan number, USAID collector name, name of person contacted, when, and a condensed version of the conversation.

a. The Contractor is required to provide a 45-day notice of potential default and the 620(q) and Brooke Amendment restrictions be provided to all appropriate USAID Officials.

b. The Contractor is required to provide a separate report which identifies the countries which should be considered as having 620(q) and Brooke Amendment restrictions should be produced and provided to all appropriate USAID officials

c. The Contractor is required to provide the USAID Loan Management Team this information for the monthly Section 620(q) and Brooke Amendment report (‘Interagency Report’).

d. The Contractor will provide an interactive reporting tool(website) to alert USAID officials of potential borrower loan defaults stated above (a,b,c).

The contractor shall not be responsible for contacting borrowers directly, except for the routine notification described above and will not be held accountable for the success of collection efforts.

The contractor shall be responsible for the accurate and timely production of notices of amounts due and past due and reports necessary for effective collection efforts.

The contractor shall be responsible for the Housing Guarantee payments due to the lender by the borrower if the loan repayment is delinquent by requesting an advance of funds from USAID to cover the delinquent amount due to the lender by the borrower. See paragraph 4.4 for details.

14. Financial Data: The contractor shall provide USAID all financial information from records maintained by the contractor necessary to prepare financial statements and other reports on the status of the loans. The data shall be furnished to the agency on an agreed upon schedule and using an electronic format that allows the agency to maintain related general ledger accounts and subsidiary accounts on a current basis. Specifically, the contractor shall provide the financial data that is:

a. Maintained in accordance with current Federal Credit accounting statues, standards, regulations;

b. Detailed transactional based and identifiable to specific loans;

c. In a format to allow interfacing into the agency’s financial management system (Momentum Financials).

15. Reports: The contractor shall prepare the reports included in the attached Reports Listing relating to USAID loan portfolio using data from records maintained by the contractor or supplied by USAID. In addition, the contractor shall provide ad hoc reports to USAID from the data maintained in its records upon request (in excel file format). It is expected that most of the routine exchange of data between the contractor and the agency will take place electronically, through either direct system link or website.

16. Website: The contractor shall be required to provide account information to USAID Washington Office, USAID regional controllers and borrowers through an interactive modular drop down menu on-line web based system allowing the user to select the parameters. The Contractor shall provide web based reporting that allows access to deliverables required of the contractor by the USAID Washington Office and USAID regional controllers and provide a report database that allows access to deliverables required of the contractor by the USAID Washington Office and USAID regional controllers. The contractor shall provide adequate security to deny unauthorized users access to the website.

4.0 PORTFOLIO-SPECIFIC REQUIREMENTS:

4.1 Direct Loans, loan guarantees and loan portfolio guarantees, each have somewhat different requirements (below example) that the contractor shall meet while certain requirements are common to all programs.

Task Direct

Loans Loan Guarantee Programs

Sovereign Loans Guarantees

DCA

Payment Due Notification to Borrowers

X X

Receipt of Loan Payments X Receipt of Fee Payments X X X X Guarantee Claim Payments

X X X

Loan Accounting X X Fee Accounting X X Maintenance of Documents

X X X X

Paying and Transfer Agent

X

4.2 Payment Due Notification to Borrowers: The Contractor shall notify borrowers and participating lenders of amounts due. The notice of payment due (NPD) shall be in English and shall include instructions for wire transfer of funds. The notices shall be sent directly to borrowers, participating lenders, or as instructed by USAID designated representative using either facsimile transmission, telex, or e-mail. Copies of NPDs shall be sent to USAID designated representatives. For each loan type:

a. Direct Loans: (NPD) shall list the portion of the payment which represents principal, interest, past due amounts, penalties and fees. The notices shall be sent at least 60 days prior to the due date of payments.

b. DCA Loan Guarantees: The contractor shall notify participating lenders of the amount of fees due to USAID at least 30 days prior to the date such fees are due. USAID will provide information to the contractor necessary to prepare NPD’s within 35 days of the due date of payments. The contractor will not be responsible for the accuracy or timeliness of the information provided to it by USAID for this purpose.

4.3 Receipt of Loan Repayments: Payments on the loans in the USAID direct loan portfolio are normally made by wire transfer to the U.S. Treasury accounts at the Federal Reserve Bank of New York.

Occasionally, payment is made by other means. The contractor shall daily determine the payments received by wire, using the Treasury’s Collections Information Repository replacing Cash Link II system (backup) as the primary supporting documentation_, and compare these with the amounts due. If the amount received by wire or otherwise, is different from that appearing in the NPD, the Contractor shall ascertain the reason for the difference, if possible, notify the borrower and designated Contracting Officer’s Representative (COR) of the difference within 5 days after receipt of payment, and request payment of any amounts still owed. If no payment is received by the due date, the Contractor shall notify the borrower and USAID designated representatives within 5 days of after the due date.

4.4 Receipt of fee payments: The contractor shall daily determine the fee payments received by wire from participating lenders, using the Cash Link System, and compare these with the amounts due. If no payment is received by the due date or the amount received is different from that appearing in the NPD, the contractor shall notify the participating lender and USAID designated representatives within five days and request payment of any amounts still owing.

4.5 Guarantee Claim Payments: When a Housing Guarantee loan borrower fails to make a payment on time or a payment is less than the amount owed to noteholders, the contractor shall request funds from USAID sufficient enough to make the requested payments to the noteholders and make the necessary accounting entries to record the amounts due USAID. The contractor is not responsible for providing funds for claim payments; the funds will be transferred by the USAID office of Financial Management from funds set aside to pay guarantee claims. Normally, there will be sufficient time between the due dates for receipt of payments to the noteholders for necessary funds to be obtained from USAID. In order to maintain the marketability of guaranteed loans, it is important that noteholders be paid on time and in full. Therefore, the contractor shall use its commercially reasonable efforts to obtain sufficient funds from USAID in time to make required payments of principal and interest to noteholders when due, including notifying USAID designated representatives loans collections data and Prompt Payment reconciliations updated to reflect recoveries from borrowers for amounts paid by USAID on behalf of Borrowers, and at least 30 days prior to the end of each fiscal year shall provide data on projected annual collections and estimated potential USAID payments for the following fiscal year.

Under DCA agreements the contractor shall not be responsible for claim payments in any regard.

Claims will be submitted by USAID to the guaranteed party. The contractor plays no roll, claim payments for DCA will be made by the USAID/CFO office directly to pay Under DCA the contractor shall not be responsible for claim payment in any regard. Claims will be submitted by USAID to guaranteed party. The contractor plays no roll in claim payments for DCA. The USAID/CFO office directly pays the guaranteed claims.

4.6 Loan Accounting: The contractor shall maintain a permanent subsidiary accounting ledger for each loan for the purpose of calculating the loan balance, amortization of principal and interest, penalties and fees owed and for recording the receipt of payments. Each loan ledger shall also provide for the calculation of accrued interest and interest and fees due, but unpaid. Accounting entries to subsidiary ledgers shall be made promptly so an accurate trial balance and summary statement of activity can be produced at least weekly. The accounts shall also provide for the production of statements of past due amounts and the aging thereof. Data from ledgers maintained by the contractor shall be furnished to USAID designated representatives on an agreed upon schedule and using and electronic format that allows the agency to maintain related general ledger and subsidiary accounts on a current basis.

4.7 Fee Accounting: The contractor shall maintain records, by participating lender, giving the date and amount of fees due and payments received and the amounts remaining unpaid. The contractor shall also maintain records by participating lender, of the date and amount of balances outstanding (utilization) of credit facilities, as reflected from Qualifying Loan Schedule (QLS) data derived from the Agency’s Credit Management System (CMS). The contractor shall provide USAID a monthly report of fee payment activity, by participating lender, including a listing of payments past due and the aging thereof.

The contractor shall provide USAID all financial information from records maintained by the contractor necessary to prepare financial statements relating to loan portfolio guarantees. The data and reports shall be furnished to USAID on an agreed upon schedule and using an electronic format that allows the agency to maintain related accounts on a current basis.

In addition to standard reporting the offeror shall provide a website link to demonstrate their current capabilities for providing interactive modular loan reporting. The purpose of this link is to demonstrate interactive website capability for users to access their loan account. This link is for demonstration purposes only.

4.8 Maintenance of Documents: The contractor shall take custody of all documents which evidence loan agreements and rescheduling thereof, file these in a manner to make them readily identifiable, and available when needed. The contractor must receive, retain, file, and store accounting records necessary to substantiate accounting entries made to subsidiary loan ledgers and to produce reports(in excel file format) required under the contract. These documents shall be made available on request to persons designated by the COR for the purpose of auditing financial statements and other reports prepared by or for the agency.

In addition, for each loan type portfolio the following are required:

• Direct Loans: The contractor shall retain copies of all documents for payments, collections, notices and other evidential matter to support transactions for loan activities.

• Loan Guarantee Program and DCA: The contractor shall retain copies of all documents supplied to it by USAID, by participating lenders, and prepared by the contractor regarding notification of fees due and receipt and disbursements of funds in connection with loan portfolio guarantees. In addition, the contractor shall provide copies of loan documents to prospective buyers of notes upon request.

• Sovereign Direct Loans: The Contractor shall coordinate with the Fiscal Agent for loan data and maintain loan files and record of amounts due, amounts collected, and provide monthly financial reports of the portfolio to USAID designated representatives.

4.9 Paying and Transfer Agent Responsibilities: Loan Guarantees – Urban and Environmental (HG) Program: There are two categories of fully-generated loans: about 188 loans that are covered by Paying and Transfer Agent (PTA) agreements and other specific loans that are not subject to such agreements (separate fiscal agency agreements). The PTA agreements require substantial fees to be paid to the agent by the borrowers (i.e. paid by borrower to PTA), both at time of closing and annually thereafter.

The existing PTA contracts will be transferred to the contractor at the beginning of the contract period.

Also it is the intent of USAID that the contractor shall be the sole organization to perform paying and transfer agency duties for USAID and borrowers during the period of the contract, which would include any new loans closed. The PTA contracts currently generate around $200,000 per year in fees to the

PTA.

Because of the fees paid by borrowers to the PTA, the contractor shall not require additional compensation on covered loans from USAID for the PTA duties and responsibilities. However, since the other specific loans do not have such contracts and fees attached, the contractor will otherwise not be compensated for the PTA services rendered on this loan.

4.10 Paying and Transfer Agent: The contractor shall perform the duties of Paying and Transfer Agent (PTA) for both the covered and non-covered guaranteed loans. These duties shall consist of:

1. Maintaining a register of noteholders and issuing replacement notes.

2. Calculating payments due and notifying borrowers of same including breakdown of principal, interest fees and late charges, if any.

3. Receiving payment from borrowers and USAID

4. Disbursing funds to noteholders (by the contractor),

5. Contractor Notifies USAID of the failure of borrowers to make payments on loans when Due.

6. Providing specified reports to USAID.

4.11 Escrow Agent: The contractor shall perform the duties of Escrow Agent (EA) with respect to guaranteed loans in escrow at the beginning of the contract period of any HG loan refinanced requiring an escrow account made during period of the contract. These duties shall consist of:

1. Opening an escrow account and receiving deposit of funds,

2. Investing funds as directed in the escrow agreement, and

3. Disbursing funds from escrow upon authorization.

For performing these duties, the contractor shall receive the following fees (paid by borrower to Escrow Agent):

• Upon the signing of each Escrow Agent Agreement and the…