SWIFT 6 DRAFT Sections B-C-L-M (Phase One).pdf

SECTION B

PART I - THE SCHEDULE

SECTION B - SUPPLIES OR SERVICES AND PRICE/COSTS

B.1 PURPOSE

The purpose of this contract is to provide services that fall within the Scope of Work (SOW) specified in Section C for the Support Which Implements Fast Transition (SWIFT) 6 IDIQ. USAID Task Order Contracting Officers (TOCOs) will request the work through the issuance of Task Orders during the ordering period as specified in Section F of the contract.

B.2 CONTRACT TYPE AND SERVICES

This is an Indefinite Delivery/Indefinite Quantity (IDIQ) type contract. The Government will issue Task Orders that are Cost-Plus-Fixed-Fee (CPFF) (completion) type. The Contractor must perform the services set forth in Task Orders at prices consistent with Section B of this contract.

B.3 MINIMUM ORDER GUARANTEE

The basic contract includes an initial obligation of funds in the amount of $50,000 (for each of the SWIFT-Programs and SWIFT-Support holders) to cover the minimum order guarantee USAID is required to order, and the Contractor is required to furnish the minimum order amount of services. The initial obligation is expected to be applied towards the fist Task Order (TO) that is issued.

Following this initial obligation, individual Task Orders will obligate funds to cover the work required under those Task Orders.

B.4 MAXIMUM CONTRACT CEILING

This is a multiple award Indefinite Quantity Contract (IDIQ) with an overall ceiling price of $5,000,000,000 for both SWIFT-Programs and SWIFT-Support. The maximum aggregate dollar value of task orders awarded to all contractors must not exceed the contract ceiling. This ceiling is not being subdivided among the number of awardees nor is it being multiplied by the number of awardees.

B.5 FIXED FEE CEILING

(a) For each CPFF Task Order issued under this IDIQ, the TOCO and Contractor agree to negotiate a fixed dollar amount for fee. In negotiating the fixed dollar amount for fee, the TOCO must consider the policies and factors for establishing fee in FAR 15.404-4 as well as any applicable USAID policy on establishing a fixed fee amount. In no event, however, may the amount of fixed fee in any individual Task Order exceed the following:

For All SWIFT Task Orders (SWIFT-Programs and SWIFT-Support):

● _____ percent (to be determined at time of award) for the total estimated cost for Program

Costs and Operations costs (excluding components of the Transition Activities Pool as discussed in Section C.4.1.2, and fee) for the Task Order.

For SWIFT-Programs Task Orders Only:

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● _____ percent (to be determined at time of award) for the total estimated cost for non-Grants Under Contract components of the Transition Activities Pool (as discussed in Section C.4.1.2) for the Task Order.

● The fee on Grants under Contracts (GUCs), if any, will be negotiated at the Task Order level by the TOCO.

The fixed fee ceilings apply to the prime contract and all cost reimbursement subcontracts.

(b) The Total Estimated Cost-Plus-Fixed- Fee for each Task Order (TO) must be negotiated in accordance with the terms of this contract and FAR 16.306. Work under Program and Operations, CLINs 1 and 2, will be described in the TO Statement of Work (SOW) by stating a definite goal or target and stating an end product deliverable. Work under Grants Under Contract (GUC) and non-GUC, CLINS 3 and 4, will be considered complete when 85% of the TO CLIN ceiling has been expended under USAID-approved activities. The 85% completion point applies only if unable to achieve 100% of the CLIN 3 and 4 ceiling expenditure, respectively, within the authorized period of performance. In the event less than 100% of the work is completed under CLINs 1, 2, 3 and 4, the respective fee will be earned per the approved fee schedules included in the TO or by equitable adjustment per FAR 52.243-2.

(c) Fixed Fee Payment. In the absence of an approved fixed fee payment schedule for any Task Order issued under this Contract, at the time of each payment of allowable costs to the contractor, the USAID paying office ordinarily pays the contractor a percentage of fixed fees that directly corresponds to the percentage of allowable costs being paid. Two exceptions to paying fixed fee in this manner apply:

(1) If the TOCO determines that this method results in paying a disproportionately higher ratio of fixed fee than the percentage of work that the contractor has completed, then the TOCO may suspend further payment of any fixed fee until the contractor has made sufficient progress to justify further payment, up to the percentage of fixed fee that corresponds to the percentage of allowable costs approved by the TOCO.

(2) Because the clauses entitled "Allowable Cost and Payment" (FAR 52.216-7) and "Fixed Fee" (FAR 52.216-8) are incorporated into this Contract, the terms and conditions of these clauses apply after total payments of fixed fee reach eighty-five percent (85%) of the total fixed fee.

B.6 UNIFORM USE OF LINE ITEMS

SWIFT 5 (SWIFT-Programs) CLINs

CLIN 1 Program Costs (excludes TAP)

CLIN 2 Operations Costs (excludes fees)

CLIN 3 Grants Under Contract (GUC) TAP

CLIN 4 Non-GUC TAP

CLIN 5 Fixed Fee on CLINs 1 and 2 - Program and Operations Costs

CLIN 6 Fixed Fee on CLIN 3 GUC TAP*

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CLIN 7 Fixed Fee on CLIN 4 Non-GUC Tap

*As described in Section B.5(a), the inclusion of Fixed Fee on GUC costs, if any, will be negotiated at the Task Order level by the TOCO.

SWIFT 5 (SWIFT-Support) CLINs

CLIN 8 Program Costs

CLIN 9 Operations Costs (excludes fee)

CLIN 10 Fixed Fee on CLINs 8 and 9 - Program and Operations Costs

B.7 LABOR

(a) Central management costs will be handled through the following method:

The Contracting Officer has determined that a key (full-time) technical manager is not necessary or required to administer the basic IDIQ. Contractors will not be authorized to bill USAID directly for IDIQ management costs under this IDIQ or under task orders. Contractors must propose a centralized management structure that allows for recovery of IDIQ management costs as part of its indirect costs. However, per Section F.8, the IDIQ Manager may be included as labor under SWIFT 6 Task Orders to the extent that the IDIQ Manager provides direct services required under individual Task Order scopes of work, and as long as it would not impact their ability to serve as the IDIQ Manager.

(b) The workday and workweek policies and method of accounting for paid absences including holidays for the contractor and major subcontractors is set forth in Attachment J.X. (to be inserted at time of1 award)

Compensation of personnel under this contract or any resulting subcontract must be in accordance with AIDAR 752.7007 Personnel Compensation (July 2007) (See Section H.).

B.7.1 Unburdened Ceiling Daily Rates (CDR)

(1) The Task Order rates for the labor categories below must not exceed the ceiling daily rates set forth in the table below.

Each CDR for personnel listed below is “unburdened” and must only include salary costs or consulting rates of the individual providing the services.

The CDR for employees must not include the following:

● Payroll costs (fringe benefits, FICA, allowances, differentials, etc.);

● Indirect Costs applicable to labor; and

● Profit or fee, if any.

1 Major subcontractors are those expected to perform at least 20 percent or a prominent part of the technical effort.

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The CDRs set forth below are fixed for the contract period and are for a productive eight (8) hour day, and apply to all subcontracts set forth in clause 52.244-2 in Section I of this contract. If a new subcontractor is proposed for a specific Task Order on other than a fixed-price basis, the CDRs set forth below will apply.

Actual salaries for all personnel will be negotiated under Task Orders in accordance with the Contractor’s established policies, procedures, and practices, and in accordance with Section H.3 and the cost principles applicable to this contract. The ceiling rates presented below do not constitute approval of final salary rates above the Contractor Salary Threshold (CST) (see ADS 302).

(2) The single unburdened ceiling daily rate for each labor category/group below represents the senior-level, mid-level, and junior-level (with the exception of the IDIQ Manager and COP) rate in each category/grouping. Two or three levels of unburdened ceiling daily rate for each labor category/grouping is included in the contract to provide more flexibility under Task Orders. If junior-level personnel are required under Task Orders for labor categories listed below for which no junior-level rates are established, a new CDR level and corresponding unburdened CDR must be proposed and incorporated into the respective Task Order.

Labor Categories and Unburdened Ceiling Daily Rates

All IDIQ Holders

Labor Category and Level

Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10 Y11* Y12*

01 IDIQ Manager

Senior

Mid

SWIFT-Programs (Unrestricted)

02 Chief of Party

Senior

Mid

03 Deputy Chief of Party

Senior

Mid

Junior

04 Operations Manager

Senior

Mid

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Junior

05 Regional Program Manager

Senior

Mid

Junior

06 STTA Subject Matter Expert

Senior

Mid

Junior

SWIFT-Support (Small Business Set-Aside)

07 Transition Advisor

Senior

Mid

Junior

08 Task Order Manager

Senior

Mid

Junior

09 STTA Subject Matter Expert

Senior

Mid

Junior

*Additional years may require approvals in accordance with ADS 300 and ADS 302.

[Note 1: The Unburdened Ceiling Daily Rates apply to any Task Order(s) that is/are awarded under this contract.]

[Note 2: The Unburdened Ceiling Daily Rates apply to all LTTA labor (the prime contractor, subcontractor, and consultant salaries). CCN and TCN labor are also governed by the local compensation plan limitations as further provided in note 3 below. ]

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[Note 3: CCN and TCN Personnel or Other Non-U.S. Expatriate Rates

All CCN and TCN personnel and other non-U.S. expatriates must be paid in accordance with AIDAR 722.170.

Salaries for individual locally-hired personnel and other non-U.S. expatriates under this contract and any resulting subcontract must be in accordance with AIDAR 752.7007, Personnel Compensation (July 2007), and should be based upon a combination of factors including the prevailing compensation paid to personnel performing comparable work in the cooperating country as determined by USAID and consideration of the individual's education, and work experience.

Unless otherwise authorized by USAID, the compensation for CCN and TCN labor must not exceed the prevailing compensation paid to personnel performing comparable work in the cooperating country as determined by USAID and must be paid in the currency of the cooperating country.

B.7.2 Definition of Labor Categories

Provided below is a list of the types of labor categories that may be required under Task Orders.

However, other labor categories that are not listed below may also be required under Task Orders.

Labor categories are defined below to clarify general duties (and consequently, type of experience required).

Labor Categories: ALL IDIQ Holders

01 IDIQ Manager: The home office-based IDIQ Manager will serve as the Contractor’s primary point of contact with the IDIQ COR and CO for SWIFT 6 IDIQ matters. The IDIQ Manager is responsible for the administration and management of the SWIFT 6 IDIQ, including submitting IDIQ-level reporting requirements listed in Section F; coordinating across the Contractor’s SWIFT 6 Task Orders; and working with USAID and the Contractor to resolve issues (across Task Orders or at individual Task Order levels) and sharing lessons learned and best practices.

Labor Categories: SWIFT - Programs (Unrestricted)

02 Chief of Party: The Chief of Party (COP) serves as the Contractor’s designated person for overall management of the in-country relationship with OTI and providing Contractor leadership for field management of the Task Order. The COP is responsible for financial and program management, oversight, and reporting of Contractor progress and quality of performance in meeting the activity undertakings of the program. Under the guidance and overall technical direction of OTI, the COP provides oversight of activities, including supervision of the program field staff, ensuring appropriate activity design, implementation, management, monitoring and evaluation, and compliance with USAID rules and regulations.

03 Deputy Chief of Party: The Deputy Chief of Party (DCOP) plays a key role in supporting the Chief of Party to effectively manage and implement the Task Order. The DCOP’s responsibilities may include:

oversight of Transition Activities Pool (TAP) programming; financial, procurement, and budgeting management; human resources, personnel recruitment and management; subcontractor management;

and Task Order start-up and close-out. The DCOP is responsible for ensuring compliance with USAID rules and regulations and coordinating with the Contractor Home Office on all compliance issues, seeking legal and policy guidance on any applicable restrictions. The DCOP will be expected to have a good grasp of the programmatic aspects of the program and be prepared to step in as needed to

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04 Operations Manager: The Operations Manager plays a key role in supporting the Chief of Party (and Deputy Chief of Party, if applicable) in managing the Contractor’s day-to-day field presence in the areas of operations, including the project's facilities (such as office space, equipment and project vehicles), administration, logistics, procurement, budgeting and financial accounting (which may include cash flow management, time sheet recording and daily monitoring of obligations, budgets, and expenditures). The Operations Manager’s responsibilities may include ensuring that program implementation is in accordance with USAID regulations and procedures and the specifications determined in the SOW, which may include: monitoring grantee worthiness; assuring fair and transparent procurement processes; reviewing financial management; and monitoring activity implementation.

05 Regional Program Manager: The Regional Program Manager (RPM), in conjunction with the Chief of Party and with oversight from OTI, will manage a field office and/or geographic or issue-based portfolio in terms of financial and administrative management, program development and implementation, as well as activity development and implementation. In close coordination with the COP, the RPM may be responsible for: supervising activity implementation and support staff in their respective office(s); managing the development of overall regional program strategy and the development and implementation of TAP activities (which may include identifying potential grantees, reviewing grantee proposals, and overseeing the implementation and monitoring of each activity). The RPM will also supervise enforcement of proper financial, procurement, and general operational protocols and reporting in the field office, in compliance with USAID rules and regulations.

06 STTA Subject Matter Expert: A Subject Matter Expert (SME) is an individual with exceptional qualifications and expertise in a particular technical, operational, or administrative subject matter. For any given Task Order, an SME may provide strategic advice, analysis, technical/operational/administrative guidance and expertise to USAID/OTI, program staff, host country governments, and/or other stakeholders and beneficiaries.

Labor Categories: SWIFT - Support (Small Business Set-Aside)

07 Transition Advisor: In close consultation with the OTI Country Representative and OTI TOCOR, the Transition Advisor supports the management and monitoring of OTI country and regional programs.

Depending on the complexity of the program, and level of the Transition Advisor, responsibilities may include: advising in the development, implementation, review and monitoring and evaluation of program TAP activities; assisting OTI with reporting on the activities of SWIFT-Programs Contractors (and/or other implementing partners) in the implementation of OTI-financed activities designed to achieve OTI strategic objectives; maintaining relationships with key partners and promoting program linkages between OTI activities and host country government stakeholders or others; preparing information materials for use by OTI; and providing reporting on contextual and political analysis or other pertinent information required to achieve OTI’s program objectives.

08 Task Order Manager: The home office-based Task Order Manager serves as the Contractor’s designated person for overall and day-to-day management of contract performance of the Task Order and coordination and communications with the OTI TOCOR. The Task Order Manager is responsible for managing the overall operations on the Task Order, which may include: communications, administration, logistics, procurement, staffing/recruitment, budgeting, finances, reporting and property.

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The Task Order Manager will ensure that activities implemented under the Task Order are managed and implemented in accordance with the approved budget, USAID regulations and procedures, and the specifications determined in the SOW.

09 STTA Subject Matter Expert: A Subject Matter Expert (SME) is an individual with exceptional qualifications and expertise in a particular technical, operational, or administrative subject matter. For any given Task Order, an SME may provide strategic advice, analysis, technical/operational/administrative guidance and expertise to USAID/OTI, program staff, host country governments, and/or other stakeholders and beneficiaries.

B.7.3 Minimum Qualifications

In order to perform the statement of work set forth in Section C, the Contractor must provide personnel that meet the minimum education and experience requirements set forth below. These minimum qualifications for junior-level (if applicable), mid-level, and senior-level personnel correspond to the Unburdened Ceiling Daily Rates above.

IDIQ Manager

Labor Category 01 Education + Experience Requirements OR Experience Requirements (Substitution of Relevant Work Experience in Lieu of a Degree)

Level Academic Degree*

AND Years of Relevant Work Experience**

Years of Relevant Work Experience***

Senior Bachelor’s 7 12

Mid Bachelor’s 5 10

Chief of Party

Labor Category 02 Education + Experience Requirements OR Experience Requirements (Substitution of Relevant Work Experience in Lieu of a Degree)

Level Academic Degree*

AND Years of Relevant Work Experience**

Years of Relevant Work Experience***

Senior Bachelor’s 8 12 Mid Bachelor’s 6 10

Deputy Chief of Party

Labor Category 03 Education + Experience Requirements OR Experience Requirements (Substitution of Relevant Work Experience in Lieu of a Degree)

Level Academic Degree* AND Years of Relevant

Years of Relevant Work Experience***

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Work Experience**

Senior Bachelor’s 8 12 Mid Bachelor’s 6 10 Junior Bachelor’s 4 8

Operations Manager, Regional Program Manager, STTA Subject Matter Expert

Labor Category 04, 05, 06 Education + Experience Requirements

OR Experience Requirements (Substitution of Relevant Work Experience in Lieu of a Degree)

Level Academic Degree*

AND Years of Relevant Work Experience**

Years of Relevant Work Experience***

Senior Bachelor’s 7 11 Mid Bachelor’s 5 9 Junior Bachelor’s 3 7

Transition Advisor, Task Order Manager, , STTA Subject Matter Expert

Labor Category 07, 08, 09 Education + Experience Requirements

OR Experience Requirements (Substitution of Relevant Work Experience in Lieu of a Degree)

Level Academic Degree*

AND Years of Relevant Work Experience**

Years of Relevant Work Experience***

Senior Bachelor’s 7 11 Mid Bachelor’s 5 9 Junior Bachelor’s 3 7

Language fluency, relevant regional experience, and international development experience requirements will be specified in individual task orders.

*Highest degree obtained should be related to work being performed.

** Experience should be related to the work being performed.

***Relevant Work Experience is required for the levels indicated.

B.7.4 Subcontractor Rates.

The following provides guidance for various subcontracting arrangements:

(i) The Prime subcontracts with an approved subcontractor from the original IDIQ competition

The unburdened CDR’s for the prime contract apply to the subcontractor.

(ii) The Prime contracts with a new subcontractor not yet approved

The unburdened CDR’s for the prime contract apply to the new subcontractor.

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(iii) Prime subcontracts with a new subcontractor not yet approved and may or may not have a different cost accounting system that only processes fully burdened rates. Further, subcontractor proposes rates that are “above” the prime IDIQ rates.

The Prime may then include in its TO proposal, (i) the fully burdened rate proposed to the Prime by the Subcontractor,(ii) allocation of the Prime’s indirect costs in accordance with established accounting practices, and (iii) a reasonable profit. If the rates proposed to USAID, inclusive of the Prime’s allocable indirect costs and a reasonable profit are above the Prime’s unburdened CDRs, the Prime must disclose the amount of the indirect costs, and the amount of the proposed profit that were added to the Subcontractor’s proposed rates. A reasonable fixed fee will be negotiated by the TOCO for the specific TO. The CDRs of the subcontractor must not exceed the prime’s CDRs in the IDIQ contract.

B.8 INDIRECT RATES

Pending establishment of revised provisional or final indirect cost rates, allowable indirect costs must be reimbursed on the basis of the following negotiated provisional, final, or predetermined rates and the appropriate bases of the current executed Negotiated Indirect Cost Rate Agreement (“NICRA”) for the prime contractor.

Offeror Fringe Rate %

Overhead Rate %

G&A Rate %

PRIME (Insert Name) Base of Application Source: (insert) Period: (insert)

NOTE: Insert additional indirect rates as needed for all primes. Subcontractor(s) rates will be on file with the Government and available for internal use only.

*Special Note: The indirect cost table above is the current approved indirect cost rates for the prime and major subcontractor(s), if any.

The Contractor must not make any change in its established method of classifying or allocating indirect costs that impacts this contract without the prior written approval of the IDIQ Contracting Officer.

USAID will reimburse the Contractor for indirect costs at the provisional, predetermined, or final negotiated rates.

Contractors are allowed to recoup indirect costs (e.g., overhead, G&A, etc.) as other direct costs if it is part of the contractor’s usual accounting procedures, consistent with FAR Part 31 and the contractor's

NICRA.

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SECTION C - DESCRIPTION/SPECIFICATIONS/STATEMENT OF WORK

C.1 PURPOSE AND OBJECTIVE

The purpose and objective of this Indefinite Delivery Indefinite Quantity (IDIQ) contract is to provide USAID’s Office of Transition Initiatives (OTI) with the means to support U.S. foreign policy objectives by catalyzing local initiatives to promote stability, peace, and democracy in response to complex political crises. OTI’s program team, comprised of OTI and Contractor personnel, will work on the ground to seize emerging windows of opportunity in the political landscape to provide adaptive and agile programming in countries or regions. To accomplish this, the SWIFT 6 IDIQ will be structured around two service areas/components: 1) SWIFT-Implementation of Transition Programs (herein after referred to as SWIFT-Programs); and, 2) SWIFT-Program Operations Technical Assistance Support (herein after referred to as SWIFT-Support) - restricted to Small Business Set-Aside.

1) Under the SWIFT-Programs component (Section C.4), through specific Task Orders, the Contractor will: a) establish, staff, manage, operate, and support a flexible, quick-response mechanism capable of administering and implementing targeted activities under OTI Country or Regional Programs; b) undertake programmatic research initiatives; and, c) provide support to program-funded USAID personnel.

2) Under the SWIFT-Support component (Section C.5), through specific Task Orders, the Contractor will: a) recruit and deploy technical assistance to support OTI program operations, and, b) provide support to program-funded USAID personnel.

C.2 BACKGROUND

This background section provides an overview of OTI, describes working in complex environments and OTI’s criteria for engagement. It also presents information pertinent to an OTI program including information on SWIFT 6 Contractors’ roles, local partners, OTI’s “One Team” partnership model, funding, program duration, and exit strategy.

C.2.1 Office of Transition Initiatives (CPS/OTI)

The Office of Transition Initiatives (OTI) is a critical part of USAID’s civilian rapid response capacity.

Located in USAID's Bureau for Conflict Prevention and Stabilization (CPS), OTI provides political transition assistance addressing complex problems in dynamic and unpredictable environments. In countries or regions experiencing emergent political crises and/or transitions, OTI works with local partners to target key political issues such as conflict, democratic backsliding, violent extremism, and stabilization, contributing to positive political and social changes in dynamic contexts. Since 1994 OTI has helped to lay the foundation for long-term development through over 75 programs in approximately 55 countries.

As a contingency office, OTI’s engagement is context-dependent and time-limited. When and where OTI establishes a program is governed by OTI’s engagement criteria. OTI accomplishes its mission – the purpose for which the Office was established - through strategic engagement and timely disengagement, not through its existence or ongoing presence. Intentional, explicit acknowledgement of OTI’s disengagement from the beginning enables the experimentation – calculated risk-taking and field-based innovation – that is critical to working in complex environments. The focus on complexity means that OTI’s mission in any country or region is predicated on a better understanding of the complex problem sets, the power dynamics and “space for change” in a context, rather than

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OTI programs are designed to meet the unique needs of each country or regional context and to remain responsive to rapidly evolving political and operational environments. In order to fulfill its mandate, OTI has developed the ability to continually change, reorient or refocus its programs in order to rapidly respond to evolving opportunities in the country or region. Previous OTI programs have, for example:

Worked with non-traditional actors

● engaged with politically marginalized citizens to give them a voice in the transition process

● addressed gender-specific constraints to successful transitions and seized windows of opportunity to promote women’s participation in the process

● bolstered host government actors and improved the perception of the government in a joint campaign against insurgent groups

● drawn people together across ethnic, political, gender, and religious lines to work productively together towards common community-defined goals

● encouraged measures to bring military and security forces under civilian democratic control

Provided critical in-kind contributions

● provided materials for small infrastructure repair projects as a means of enabling government officials to respond to local priorities

● supported community initiatives to rehabilitate critical infrastructure in war torn areas as a means of building confidence and supporting local, democratic decision-making processes

● facilitated sustained communication and cooperation between newly elected officials and their constituents, and encouraged more responsiveness to citizen needs

● provided basic furniture, equipment, and short-term technical assistance to key government ministries to help rapidly restore critical services and public confidence Supported local civic, media, reconciliation, and human rights initiatives

● backed local human rights groups and war crimes investigations

● supported production and development of get-out-the vote ads, local anti-corruption campaigns, and public service announcements as a means of supporting transparency and democracy

● promoted independent media and increased access to balanced information to influence public perceptions

● supported or advanced media infrastructure, systems, networks, regulatory regimes, and professionalism to expand access to and freedom of information

● assisted local peacemakers, including women and members of marginalized groups, to prevent conflict and promote reconciliation

● provided community-focused reintegration assistance for ex-combatants and war-affected youth to help buy time for peace and longer-term economic and political reforms

● re-integrated displaced persons and others impacted by conflict and protected vulnerable populations, often internally displaced persons and persecuted minority groups

● provided timely and targeted support to civil society organizations as a means of engaging government officials in dialogue and promoting accountability

● supported local efforts to mitigate and manage ethnic and religious conflict through training, improved communication, and confidence-building measures

OTI is not constrained by traditional technical sectors such as health, education, or economic growth. In fact, most OTI programs must work across sectors to catalyze a transition and help create an environment conducive to longer term development. OTI programs often engage a wide range of stakeholders, including local, traditional, and religious leaders, civil society actors, women, youth, and members of marginalized groups.

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C.2.2 Working in Complex Environments

OTI programs are often initiated due to a critical event or destabilizing trend. Countries experiencing crises are considered complex environments because the causal relationships between the various elements of the political context are unknown, multifaceted, and in flux. Thus, solutions are neither simple nor straightforward. Over several decades of practice, OTI has worked on a diverse range of complex problems: post-conflict recovery, countering violent extremism, counterterrorism, stabilization, protracted complex conflicts, peace processes, democratic backsliding, closing civil and political space, transitions from authoritarianism to more democratic governance, among others. While the contexts are unique and the problems manifest differently in each context, each of these complex problems and contexts have required different ways of thinking and working and have informed OTI’s approaches to working in complexity.

C.2.2.1 What does complexity mean at OTI?

Informed by complexity and systems theory, OTI defines complexity through characteristics that often manifest in systems: people and their behavior, problems, and contexts. Complex problems and contexts exhibit the following characteristics:

● Interdependence: involving a large number of independent elements that interact and influence the others;

● Nonlinear: meaning the same input or intervention may produce different responses, depending upon context, timing, or circumstances;

● Disproportionate effects: minor changes in conditions may result in or enable significant changes;

● Emergence: results or outcomes are not apparent in isolation but “emerge” in combination with other interventions and results;

● Dynamic, fluid: complex contexts are not just marked by change, but exhibit the ability to change - to adapt - in response to interventions or changes in environment;

● Unpredictable or unstable: the nature and number of influencing factors make it hard to predict what will happen, the motivations of stakeholder interactions - human behavior - are unclear or changing.

C.2.2.2 Defining OTI’s Problem Sets

OTI is USAID’s tool to carry out rapid interventions relevant to the political/stabilization needs of communities and governments, in response to major political/conflict crises and opportunities as they emerge across the world. A transition is a time of high politicization and instability. It is a period of intense competition for power and a time that can set the foundation for new political arrangements and the trajectory for future development. During these periods, citizens are often preoccupied with personal security and meeting basic needs, and unsure what the political changes mean. While the conditions during a transition may not be favorable for long-term development approaches, these periods of flux often represent opportunities to shape prospects for improved democracy and peace.

Transitions offer windows of opportunity to:

(a) Shift the balance of power and the center of political gravity towards forces favoring peace and democratic governance; and

(b) Promote positive changes in people’s attitudes, behaviors and perceptions by:

● Addressing critical transition priorities in targeted, tangible ways;

● Quickly building confidence by mitigating conflicts and delivering expected “peace

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● Strengthening an independent media and civil society to ensure people can make more informed decisions and hold governments accountable; and

● Assisting governments to respond to community needs and develop their strategic communication capacities.

In the past, OTI has worked in a diverse range of transition settings that can be generally characterized in two broad ways:

● Political Transitions: Political transitions often occur when a seminal event — an election or revolution — ushers in a democratic-oriented government after a period of military or autocratic rule. In these situations, OTI responds to the desire of the newly elected leadership and the population to consolidate democratic principles and accelerate momentum for positive change.

In countries or regions where democratic institutions come under serious challenge, OTI may initiate activities that increase opportunities for dialogue and constructive citizen participation to bolster existing democratic processes.

● Security Transitions: In countries or regions where ethnic, religious, or political rivalries or other destabilizing elements such as criminality or violent extremism flare into widespread violence, OTI often initiates activities that increase opportunities for dialogue and constructive citizen participation in democratic processes. By strengthening local advocates for positive change, seeking opportunities to introduce reform, and helping communities mitigate conflict, OTI seeks to reverse the slide toward instability and help shift the country or region toward peace and democracy. In the aftermath of violent conflict, OTI generally seeks to create a foundation for a just and lasting peace, by supporting the negotiation and implementation of peace agreements that provide a framework for inclusive governance and national reconciliation. OTI also supports political and material recovery efforts to rebuild communities and increase local capacity to manage conflict and promote reconciliation.

These categories may evolve as country and regional situations change and are not inclusive of all transitions in which OTI could engage. In some instances, OTI engages in a country or region to test approaches to a complex problem so that USAID is able to learn and design new programs, where the actual transition taking place may be modest.

C.2.2.3 What Approaches Are Best for Complexity?

Inherent to complexity is the reality that there are no formulas, recipes, or best practices. However, evidence from many disciplines and OTI’s experience supports some “better/best approaches” to navigating complexity:

● Systems-orientation: understanding the relationships and dynamics of a context and components of a program as interactive parts of the whole;

● Problem-driven: focus on locally-meaningful problems, how and why change has not yet occurred and what existing assets can support change;

● Action Research: acting, assessing, and adapting: and

● An enabling environment for learning and experimentation.

In practice, the requirements to use OTI’s model, manage for effectiveness, and apply OTI’s Programming Principles has implications for what program teams must do, ways of thinking and working. That includes key lessons learned from the broader complexity theory field and community of practice, including: apply action research principle; practice Theory of Change; conduct and apply context analysis; be problem-driven; seek a shared understanding based on available information

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C.2.2.4 OTI Programming Principles

A. Action Research

OTI programs employ action research, an essential principle of OTI programming, as a systematic way of working in a complex environment. It is woven throughout many of the core program elements, including the Activity Cycle and the Managing for Effectiveness (M4E) System discussed below (in Section C.4.5 and C.5.4). Action Research is a commitment to learning by doing and to apply learning to ongoing programming; it serves as the foundation for the OTI program model and approaches for managing for effectiveness. Cyclical rather than linear, OTI’s Act — Assess — Adapt program model is not based on sequential phases of action, but ongoing Acting, Assessing, and Adapting.

OTI programming cannot be pre-defined; instead it needs to evolve with changes in the environment.

Ongoing analysis of numerous data points across numerous variables helps to capture subtle contextual shifts in real time, and is used by OTI program teams to ground initial “actions” or program activities. They “assess” results of those initial actions, along with any new contextual information and use this information to “adapt” the theory, assumptions, strategy, methods and tactics to emergent issues and knowledge gained, and then apply it to subsequent “actions.”

Figure 1 - Act-Assess-Adapt

B. Theory of Change

Theory of change (ToC) is one of OTI’s most fundamental programming principles. OTI applies ToC as a principle, a practice, and a tool. As a principle, ToC is a way of conceptualizing the logic of change and the assumptions that must be true for change to happen as envisioned. As a practice this way of thinking demands that teams acknowledge what they do not know and requires teams to critically question and make sense of the program’s interaction with the context. Enabled by a learning culture cultivated in and across OTI programs, the practice is the process of developing the program’s theories of change, including assumptions about how and why change will occur. As a tool, OTI programs are expected to explicitly state the logic and assumptions underlying activities and clusters.

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C. Intentionality

OTI’s programs have tremendous flexibility to determine what results to pursue and how best to achieve them. Because OTI works across sectors and can do almost any kind of ‘what’, the ‘why’ (or rationale) is paramount. At the same time, the autonomy and freedom OTI has to program comes with a high standard of accountability: OTI programs must be intentional. They must explicitly articulate the rationale for programmatic approaches and management decisions. Intentionality brings coherence to what might otherwise appear to be a disconnected set of diverse activities, or at worst, activities that seem foolhardy or risky. Intentionality means ensuring thoughtful, context-driven, fit-for-purpose decision making at all levels.

D. Experimentation

OTI programs tackle complex problems, often with no proven solutions in dynamic operating environments marked by imperfect information and unpredictability. OTI programs must experiment with untested approaches and theories of change. OTI was created because the context at the time required new ways of working. This continues to be true, and OTI environments today require more creative solutions than ever before. By necessity and thus by design, OTI programs need to take risks and experiment. The OTI business model allows programs to implement activities with relatively small investments of time and money to pilot new approaches, test theories of change, and better understand the context. This principle of experimentation represents a ‘venture capitalist’ spirit, accepting and acknowledging the many unknowns in the contexts in which OTI works. For this reason, OTI embraces the 80/20 rule: that it is better to be 80% right at the right time than 100% right too late – a willingness to take calculated risks based on imperfect information.

E. Local Ownership

Sufficient local demand for change is essential to any social or political change effort. OTI programs seek to catalyze change by supporting a wide range of local actors who demonstrate political will, relevant capacity, and/or influence. This requires a nuanced and often highly localized understanding of the context, particularly the power dynamics. OTI programs rely on their local staff and partners to gain these insights. Experience has shown that OTI programs are most effective when there is a high degree of local ownership among the staff for the strategy and the vision of change, in addition to the activities and the processes. The principle of local ownership also requires that we have the humility to recognize that OTI programs are facilitating, not creating, positive political change.

F. One Team

OTI programs employ a collaborative “One Team” approach to program design, implementation, and management most obvious in the close, day-to-day relationships between OTI and its implementing partners (IPs). The “One Team” approach represents OTI’s commitment to co-creation of the program through a shared vision and strategy, respect for clearly defined roles and boundaries, and recognition of shared, but differentiated responsibility, accountability, and risk between OTI and its IPs. The “one team” approach relies on consistent open and direct communication and transparent decision-making.

C.2.2.5 Other Lessons OTI Applies from Complexity Theory

A. Context Analysis

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Consistent with “better/best approaches” for working in complexity, OTI programs use ongoing, continuous context analysis to directly inform problem definition, learning where and with whom to focus approaches, and in assessing how the program is interacting with the context, the system.

Defined as “a systematic effort to understand and not just describe the environments in which the program operates,” context analysis within OTI’s practice is focused on seeking to understand, continually asking questions acknowledging all that we know and do not know.

B. Focus on Problem Sets and Assets

Consistent with the evidence base for working in complexity, OTI is problem-driven, focusing on problem sets, rather than technical areas or sectors. Grounded in an understanding that change is fundamentally political, OTI seeks to understand problems in political terms, more so than technical or sectoral terms. With this problem-focus, OTI program teams seek to understand problems as much more than a deficiency or “lack of” something, but rather to understand how and why change has occurred or not occurred. The problem-driven nature of OTI programs ensures they focus on solving specific, locally meaningful problems and facilitate local actors' initiatives to address these problems, rather than defaulting to a predetermined technical solution or best practice.

Attendant to OTI’s problem-driven approach is a focus on assets: the innate capacity for change that exists in every context. Grounded in a commitment to appreciative inquiry, another best practice for complexity, OTI asserts that even where institutions and systems are broken, there always exist aspirations and capacity for change that, if reinforced, can be catalyzed for greater change.

C. Sense-making

Sense-making is a collaborative process of creating shared awareness and understanding out of information and data, utilizing different individuals' perspectives and varied interests to make the data meaningful. Across practitioners and disciplines, sense-making plays a critical role in navigating complexity. The sensemaking approach is often used to provide insight into factors that surface as programs address complex – uncertain or ambiguous – situations. OTI’s approach to Managing for Effectiveness includes sense-making practices, Pause & Reflect practices, some of which are required, while others are determined by the team. Sense-making allows programs/teams to shift emphasis from the intricacies of rigid planning to the details of action: letting the interpretation of data describing the action taken to date inform the next steps, rather than a predetermined plan. Through sense-making, participants build a narrative account of the program’s engagement vis-a-vis the context, the system. It helps them understand what they think, organize their experiences, and improve their understanding of complex systems.

D. The Enabling Environment for Piloting and Learning

The ways of working and thinking required in complexity are dependent upon an environment that enables piloting and learning. OTI’s approach to Managing for Effectiveness explicitly identifies skills and behaviors that comprise a “learning culture” necessary for program effectiveness. In particular, OTI’s Senior Management Teams (SMTs) (see Section C.2.5 below) work to establish an environment where learning from mistakes is celebrated, where intellectual honesty is essential to effectiveness, rather than a liability. This is not simply a normative value, but rather integral to effective programming in complexity. Reflective of the skills needed in complexity, OTI programs frequently recruit smart, thoughtful, dynamic change agents with a vision for their country and communities in complement to technical or sectoral experts. As part of “One Team” (see Section C.2.5 below) or the co-creation principle, SMTs should carefully consider their leadership styles to engender the learning culture.

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E. Agile Practices: Adaptive Ways of Working

To better reflect the realities of working in complexity, one of only a very few changes to OTI’s mandate over nearly 30 years was to incorporate agility: “catalyzing local initiatives through adaptive and agile programming.” Agile programming (like agile organizations) is designed for both stability and dynamism -- leveraging both established and novel principles/practices enabling the organization and its programming to quickly adapt to rapidly changing conditions that define the complex contexts and problems of today’s world.

F. Defining Success and Desired Impact

In the transitions discussed above, OTI generally defines the success of its programming in relation to positive changes in the political context. Most activities, regardless of sector, are seen as a means to foster attitudes, norms, perceptions and behaviors that will support a broader transition process, rather than focusing on outcomes within a particular sector. For example, OTI might support an activity with the local government to repair a school. Rather than measuring its success by whether the refurbished school impacts educational outcomes, OTI would typically measure its success based on how that activity improved attitudes and perception toward the government in that community.

In transitions, the rapidly changing dynamics often make measuring the outcomes of specific interventions challenging. Because of this uncertainty, OTI encourages calculated risk-taking and learning from small activities. The outcomes and learning from these (relatively) small activities feed into an iterative process of analysis and decision-making. Individual activities don’t all contribute to achieving outcomes in the same way - some help OTI to refine future activities or eliminate types of programming that do not impact the transition, whereas others contribute directly to higher-level outcomes, or interact with clusters of related activities to do so.

OTI also views success in terms of how rapidly – and how well – its programs respond to and inform both U.S. foreign policy imperatives and local political developments. Success, therefore, depends on OTI’s ability to adapt program designs, plans, approaches and activities to keep pace with fluid environments. Core qualities of a successful OTI program are characterized by a team that is able to be fast, flexible, iterative, adaptive, and entrepreneurial.

C.2.3 Criteria for Engagement

OTI monitors for windows of…