Encl_1_DM_SOW_for_Indonesia_Transportation_Infrastructure.docx

STATEMENT OF WORK

“DEFINITIONAL MISSION” FOR ADVISORY AND ASSISTANCE SERVICES BY NON-GOVERNMENTAL SOURCES FOR INDONESIA

PROJECT TITLE: INDONESIA: TRANSPORTATION INFRASTRUCTURE DEFINITIONAL MISSION (“DM”)

1.0 SCOPE OF WORK

The U.S. Trade and Development Agency (“USTDA”) requires services under this non-personal services Contract to support its decision-making relative to the funding of activities to support projects[footnoteRef:1] in Indonesia. [1: Activity is defined as the work that will be funded by USTDA. A USTDA Activity could include a Feasibility Study, Technical Assistance, or Training. Project is defined as the infrastructure development or goal, as defined by the Host Country that will require the importation of goods and services in order to be implemented. The USTDA Activity would help progress the Project to implementation. The USTDA Activity would help promote the use of U.S. goods and services for the implementation of the Project.

USTDA is seeking the expertise of a third-party, transportation sector specialist (“DM contractor”) to identify, evaluate and recommend projects in Indonesia’s transportation sector for USTDA funding consideration. The projects recommended by the DM Contractor should help to promote U.S. private sector objectives as well as the development of transportation infrastructure priorities in Indonesia.

The DM contractor would examine and assess projects to improve Indonesia’s domestic and intra-regional transportation infrastructure. The DM contractor shall evaluate projects which will enhance Indonesia’s air traffic management, airport infrastructure, airport and aviation safety, and air navigation systems and determine their eligibility for USTDA funding. Further, the DM contractor will assess potential projects in the rail sub-sectors, focusing on areas where U.S. companies have demonstrated a competitive advantage such as locomotives and signaling technologies. In addition, the DM contractor shall assess the strength of potential projects in port infrastructure, port management, and port security and would recommend any such projects for USTDA funding consideration if the proposed project meets USTDA funding criteria.

The DM contractor shall work with previous USTDA project sponsors such as the Directorate General of Civil Aviation (DGCA) and PT Kereta Api (PT KAI) to assess prospective projects in aviation and rail infrastructure. Additionally, PT KAI has requested additional funding from USTDA for technical assistance in increasing Jakarta’s commuter rail capacity from 600,000 to 1.2M passengers. The Contractor would be encouraged to also meet with the Ministry of Transport, Indonesia’s state aviation companies, city government officials, the ASEAN Secretariat, and U.S. government and private sector stakeholders, and shall identify at least four activities for USTDA funding consideration. The Contractor shall arrange for a team comprised of a minimum of two sector specialists to travel to Indonesia for at least ten business days. Emphasis should be placed on travel to Jakarta, but the Contractor shall also consider travel to other sites such as Bandung, Medan, and other transportation hubs where justified.

The DM Contractor should have direct experience in the transport sector, developing, implementing, and/or managing projects in the above-mentioned subsectors (aviation, rail, and ports). The Contractor should have a working knowledge of the sector in Indonesia. The Contractor will be expected to identify the most promising opportunities to be reviewed and considered for funding recommendations. The Contractor should also highlight any U.S. commercial hurdles in the transportation sector in Indonesia and also discuss foreign competition and other multilateral development projects in the transport sector in Indonesia.

USTDA requires a Contractor to provide a Final Report to USTDA, which shall:

1.1 assess and justify whether or not USTDA should provide funding for the proposed feasibility study, technical assistance, pilot project, or training, hereinafter referred to as “activity(ies)”;

1.2 assess any alternative activity(ies) which the Contractor sees as viable options for USTDA consideration;

1.3 develop terms of reference and budgets for at least four activity(ies) for USTDA funding consideration;

1.4 demonstrate meaningful discussions with current and previous host country Project Sponsors/Grantees to evaluate the status of implementation for USTDA-supported projects that are sector-relevant to the Definitional Mission; and

1.5 provide supporting analysis and recommendations on the above information and all the relevant issues.

2.0 DELIVERABLES

The Contractor shall submit all deliverables under this Contract to the Contracting Officer’s Representative (COR) on or about July 31, 2015.

3.0 PERIOD OF PERFORMANCE

The Period of Performance for this Contract shall be one year from the date of the Contracting Officer's signature on the Contract.

4.0 DEFINITIONAL MISSION PROPOSAL TIPS

Prospective contractors are encouraged to review the Definitional Mission proposal tips on USTDA’s website via the following link to better understand USTDA’s expectations for this Definitional Mission: http://www.ustda.gov/businessopps/dmproposaltips.asp

5.0 DELIVERY & PERFORMANCE REQUIREMENTS

5.1. KICK-OFF MEETING WITH THE USTDA REGIONAL OFFICE AND PROGRAM EVALUATION OFFICE

Upon award, the Contractor shall be required to sign a Non-Disclosure Agreement to the extent that the work under this Contract requires that the Contractor be given access to confidential information or proprietary data from the Government or other companies. After signing the Non-Disclosure Agreement, the Contractor shall contact USTDA’s COR to schedule a meeting to discuss details of the Contract assignment. Unless otherwise advised by the COR, this meeting will be held at USTDA’s office in Arlington, Virginia. The COR shall provide the Contractor with names and addresses of the potential Project Sponsor(s), other pertinent entities to contact in the United States and overseas, and any other relevant details that may impact the design and/or evaluation of the proposed activity(ies).

The Contractor shall contact USTDA’s Program Evaluation Office to discuss the details of the Contract assignment, and specific requirements of sections 5.1 and 5.5, and 5.6, and the Definitional Mission Final Report Section 6.8, 6.9, 6.14.7, and 6.14.8 of this Contract. This discussion can be held in conjunction with the meeting with the COR or independently.

5.2. PRE-VISIT REPORT

No less than one week prior to departure to the host country, the Contractor shall provide the COR a pre-visit written report containing the proposed schedule or itinerary, preliminary strategies or findings on viability of the project(s), financing options, U.S. company interest in the project(s) and in the host country in general, summaries of proposed activity(ies) for USTDA’s funding consideration to support the project(s) identified, a list of contacts to be made during the visit and a pre-visit checklist of issues, information and questions to be utilized during the visit. The Contractor shall include in the pre-visit report a preliminary version of Annex VI (in Excel format), which will provide substantive comments on U.S. company interest in the project(s) and in the host country in general.

5.3. COMMUNICATION WITH U.S. EMBASSY/CONSULATE IN HOST COUNTRY

USTDA will advise the U.S. Embassy and/or Consulate(s) in the host country of the Contractor’s proposed travel itinerary no less than one week prior to departure and request that the Commercial and/or Economic Section(s) of the Embassy and/or Consulate(s) provide the Contractor with names and addresses of appropriate host country officials with whom to meet.

5.4. CONTRACTOR’S HOST COUNTRY TRAVEL

The Contractor shall travel to the host country to meet with relevant project officials and with the U.S. Embassy and/or Consulate(s). The Contractor shall contact the Commercial and/or Economic Section(s) upon arrival and prior to departure for briefing and debriefing meetings. The Contractor is responsible for arranging all meetings as well as logistics for the visit, e.g. the Contractor’s hotel accommodations, transportation, and interpretation services. In some instances, the Commercial or Economic Section staff may be able to assist the Contractor in arranging some initial meetings with host country officials. Also, in some instances, the USTDA Contractor may find it useful to purchase the Gold Key or Business Facilitation Services offered at the U.S. Embassy or Consulate. In some cases, the Contractor may need to contract with a local entity to assist with trip logistics and/or for interpretation services. However, substantive technical work may not be subcontracted to local entities.

Contractor’s travel shall commence within 30 days of contract award, unless otherwise agreed to in writing by the COR.

5.5. CONTRACTOR MEANINGFUL DISCUSSIONS

The Contractor shall hold meaningful discussions with appropriate contacts to determine how USTDA’s funding can be used most effectively to support the implementation of the project(s) identified in the host country. The Contractor shall gauge the interest of potential project financiers and potential U.S. suppliers and assess whether the proposed USTDA activity(ies) will help accomplish the project(s) goals. Further, the Contractor shall assess whether the proposed activity is justified and the project(s) is viable by:

· Identifying potential procurement of U.S. goods and services for project implementation, broken-down by categories and dollar values;

· Analyzing the project risks and assessing the project’s financial viability, the priority of the project and the political/social/organizational support it has, potential sources of financing, and the capability and experience of the Project Sponsor. The analysis shall also include an assessment of the social and economic development impacts of the proposed project;

· Conducting a Life Cycle Cost Analysis (LCCA) for the project to examine the initial capital costs to plan, design, develop, and build the project as well as provide a detailed analysis of all long-term operation costs associated with maintaining the facilities, equipment, and other assets to be financed as part of the project. These long-term costs may include, but are not limited to, warranties, operation, maintenance, acquisition, installation, refurbishment, and potential disposal costs.

· Determining whether the project is a priority for the host country and substantiating whether it has political/social/organizational support;

· Validating and justifying the capability and experience of the Project Sponsor to implement the project and oversee the USTDA funded work;

· Assessing the social and economic development impacts of the proposed project;

· Recommending how the USTDA activity will impact the project, and how USTDA’s impact can be measured and evaluated over five years. Specifically, determining how USTDA could measure and confirm whether USTDA’s funding goals were met.

5.6. CONTRACTOR SECTOR ANALYSIS AND PAST USTDA PROJECT ASSESSMENT

In accordance with Section 1.4 of the Scope of Work, the Contractor shall describe all meaningful discussions with current and previous host country Project Sponsors for projects that were profiled during the kick-off meeting with USTDA's program office. The Contractor shall report on the status of implementation for each project, any realized or anticipated U.S. exports and developmental impact, and any other measurable success or relevant information.

5.7. CONTACTS

The Contractor shall submit a list of individuals contacted during the DM, with their addresses, phone and fax numbers, e-mail addresses, and a substantive summary of key comments that support the Contractor's recommendations. The list shall be submitted in Excel format according to the specifications outlined in Annex VI.

5.8. CONTRACTOR INTERIM STATUS REPORTING AND DELIVERABLES

The Contractor shall provide updates to the COR on a regular basis. The deliverables may also take the form of information, advice, opinions, alternatives, analyses, evaluations, recommendations, interim and DM Final Reports, or other oral or written work products needed for successful performance. The Contractor shall respond in a timely manner to reasonable requests for updates and information from the COR.

5.9. CONTRACTOR -- DEFINITIONAL MISSION REPORTS

The Contractor shall prepare a report to USTDA that addresses all the issues in the Definitional Mission requirements as outlined in Section 6.1 through 6.15. Since this report will be available for public distribution, any sensitive or business proprietary information shall be included in a separate confidential attachment to the DM Final Report.

5.9

5.9.1 REPORT DRAFT -- COR APPROVAL

The Contractor shall provide the report in draft form electronically to USTDA for COR review within ten working days after completion of the overseas visit. The report should be clearly marked “Draft” on the cover. The COR will provide initial feedback and comments within ten working days after receipt of the draft report.

5.9.2 REVISED REPORT DRAFT – COR APPROVAL

Within five working days after receiving the COR’s comments on the draft report, the Contractor shall submit a revised copy for COR review. The COR will provide feedback and comments within ten working days after receipt of the draft report. The Contractor shall revise the report as necessary until securing final COR approval.

5.9.3 FINAL REPORT – COR APPROVAL

The DM Final Report shall incorporate all mutually agreed upon material and revisions. The report shall include any supporting documentation. It shall be grammatically and factually correct in all respects, internally consistent, and all statements and tables shall be clear and easily understood by a competent reader, and contain no typographical errors. Upon notification from the COR that the report is considered acceptable, the Contractor shall submit one bound hardcopy original to USTDA. All reports must be paginated, clearly labeled, and also submitted electronically in Microsoft Word and Adobe PDF format on a CD-ROM accompanying the original hardcopy. The CD-ROM must be clearly labeled with the title of the definitional mission, date of submission, and project number so that the CD-ROM is easily identifiable. The Contractor shall also submit to the COR via e-mail one electronic copy of the Microsoft Word version of the DM Final Report.

6.0 DEFINITIONAL MISSION (DM) FINAL REPORT

The Contractor shall submit a DM Final Report that includes a complete summary of the mission detailing the following: (1) summaries of all projects reviewed during the course of the mission; (2) summaries of all meetings held prior to and during the mission, including a list of all persons attending the meetings and their contact information; and, (3) a short explanation for any activity(ies) or project(s) that were reviewed and were not recommended for USTDA funding. The DM Final Report shall also provide a section containing background information on the relevant country and sector covered by the mission. Finally, the DM Final Report shall provide individual activity recommendations that contain the following information in the following format for each activity recommended for USTDA funding.

6.1. USTDA REPORT OBJECTIVES

6.1

6.1.1 The Contractor shall provide a Final Report to USTDA, which will:

· assess and justify whether or not USTDA should provide funding for an activity to support the proposed project(s);

· assess and justify any alternative or other activities which the Contractor sees as viable options for USTDA consideration; and

· provide recommendations for funding in a Final Report that analyzes all relevant issues.

· If the Contractor recommends that USTDA fund the activity(ies) in a phased approach, and/or if any outstanding issues should be resolved or conditions met before funding is approved, those phases, issues and/or conditions should be clearly explained in the recommendation.

6.1

6.1.2 Contractor recommendations shall be based upon USTDA funding criteria, which are that the project must:

· represent an opportunity for the sale of U.S. goods and services that is many times greater than the proposed amount of USTDA funding;

· represent an opportunity to positively impact the development of the host country in a measurable and definable way;

· be likely to receive implementation financing;

· have a procurement process that provides “equal access” to U.S. firms; and,

· be a priority of the host country Project Sponsor and country where the project is located.

6.2. EXECUTIVE SUMMARY

The Contractor shall submit an executive summary of the report’s findings and recommendations.

6.3. PROJECT DESCRIPTION

The Contractor shall submit a description and history of the project, including, among other things, host country Project Sponsor, sector, project location, source of raw materials, infrastructure requirements, proposed technological approach, legal and regulatory framework (licenses, permits, etc.), implementation schedule, economic fundamentals (estimated capital cost, life cycle costs, expected revenues, etc.), and any other key variables or issues that the Contractor deems critical as part of a thorough activity/project evaluation. The Contractor shall also provide a step-by-step detailed explanation of how the project will be implemented following the recommended USTDA-funded activity, and explain how the recommended USTDA activity supports the project implementation process.

6.4. PROJECT SPONSOR’S CAPABILITIES AND COMMITMENT

The Contractor shall submit a description of the host country Project Sponsor’s authority to receive and manage a USTDA grant. The Contractor also shall assess and describe the Project Sponsor’s business/government operations, and commitment and ability to implement the project. This should include a description of the Project Sponsor’s previous commitments, work with U.S. companies, overall responsiveness, business activities, and government mandate.

6.5. IMPLEMENTATION FINANCING

The Contractor shall submit a review of the financing options for project implementation, including an assessment of the overall cost estimate of the project including the LCCA and, for projects involving potential U.S. equity investment, the project’s proposed debt-equity structure to ensure that it corresponds to the requirements of the prospective lenders (this aspect is critical to USTDA’s decision making). The Contractor shall analyze the proposed financing options and delineate which option represents the best value to the Project Sponsor and will take into account quality and overall value when implementing the project. As part of this review, the Contractor is required to contact officials from the potential financing institutions, including, where appropriate, multilateral lending institutions, the U.S. Export-Import Bank (Ex-Im), the Overseas Private Investment Corporation (OPIC), and private/commercial sources, to ensure that the Project Sponsors have adequately explored their financing options. The Contractor shall provide names and contact information for contacts at the potential lending institutions and summarize their comments. The Contractor must determine the most likely source(s) of implementation financing and ensure that the terms of reference for any proposed activity fulfill the requirements of the most likely source(s), or suggest appropriate revisions to ensure that they do.

6.6. U.S. EXPORT POTENTIAL

The Contractor shall describe how procurements are typically conducted in the sector, by the project sponsor, in the country. The Contractor shall confirm whether there are local content requirements or procurement restrictions in this sector or for the project and whether a local provider/distributor will be involved in project implementation. The Contractor shall also list any import licensing requirements or permits needed by U.S. companies to participate and supply goods for the project. The Contractor shall also identify any U.S. companies already working with the Project Sponsor or working in the respective sector in the host country.

The Contractor shall submit a best estimate of the potential procurement of U.S. goods and services for project implementation. This estimate should be broken down by category and dollar value of goods and services likely to be imported for the project and a list of potential U.S. suppliers of the goods and services listed that are likely to be sourced from the United States.

A report of discussions with a reasonable number of U.S. companies that could be exporters, and their level of interest in the project, must also be included. In characterizing a given company’s interest, care should be taken to note not only the general interest in a sector or country, but also interest in the specific project and the candid opinion as to how competitive the company’s offerings would be were the project to reach the implementation stage. The Contractor should be sensitive to disclosing information about the proposed USTDA activity, to ensure no one is given unfair advantage to compete for USTDA’s funding or the end project implementation. The Contractor shall submit a complete list of U.S. companies contacted, with the name and contact information of individuals interviewed and their responses for each Project recommended for USTDA funding. If any U.S. company wishes to keep its contact information or the details of the interview confidential, the Contractor shall submit the required list of contacts with the interviewee’s comments in a confidential attachment at the end of the DM Final Report clearly marked “Confidential”. Please reference Annex VI for an example of the list required for submission.

6.7. FOREIGN COMPETITION AND MARKET ENTRY ISSUES

The Contractor shall discuss the foreign competition for goods and services likely to be procured for project implementation by category, including a discussion of U.S. industry competitiveness in each category, taking into account geographic factors, local industry capabilities, technology and licensing issues, past procurement tendencies of the Project Sponsor, and how the procurement is likely to be conducted. The Contractor shall discuss the extent to which market entry issues impede trade and how the project will help overcome these obstacles.

6.8. EVALUATION STRATEGY

The Contractor shall recommend how USTDA should evaluate the effectiveness of its funding for this activity. Specifically, the Contractor shall recommend benchmarks to measure whether the activity helped the proposed project move towards implementation and helped the Project Sponsor achieve its goals, timelines, and expected accomplishments based upon industry standards. The Contractor shall recommend where this information could be gathered. The Contractor shall address the following questions, at a minimum, within the Evaluation Strategy: (1) what is the proposed project implementation timeline; (2) how will the project likely be developed (Engineering, Procurement and Construction, Turnkey, Build-Own-Transfer, Build-Own-Operate, etc.); (3) what potential difficulties may the Project Sponsor encounter during project implementation and how can these challenges be mitigated; (4) what regulations, if any, should be in place before the project can be implemented; and (5) what other entities must authorize or approve the project for implementation.

6.9. DEVELOPMENTAL IMPACT

The Contractor shall identify which development impact measures – listed below – may result from the USTDA funded activity, and/or project. The Contractor shall identify how the proposed USTDA activity and project will result in the development impact, and explain how the impact can be measured when the USTDA activity is completed and project is implemented.

The definitions and guidance for each of these will be provided by the COR and/or Program Evaluation Office.

6.10. IMPACT ON THE ENVIRONMENT

The Contractor shall submit a statement regarding the likely consequences that the proposed project(s) may have on the environment and ensure that the terms of reference for the activity include, at a minimum, a preliminary review of the project’s impact on the environment, with reference to local environmental requirements and those of potential lending agencies. The activity should identify potential negative impacts and discuss the extent to which they can be minimized.

6.11. IMPACT ON U.S. LABOR

The Contractor shall submit an assessment of the impact of the project(s) on U.S. labor, addressing the legislative prohibitions on the use of Foreign Assistance Funds described in Annex I.

6.12. QUALIFICATIONS

The Contractor shall submit the activity team qualifications required to conduct the activity(ies) and the evaluation criteria to be used by the Project Sponsor in cases of competed activity(ies).

6.13. JUSTIFICATION AND RECOMMENDATION

The Contractor shall provide an explanation of why USTDA’s grant funding is needed, including a description of how the activity would support U.S. Government priorities and promote U.S. commercial goals, how USTDA's participation would add value to the project's development, and how the success of each project would be measured in terms of U.S. trade promotion and development impact.

Detailed recommendations as to:

1. Whether or not the project meets USTDA’s basic funding criteria;

2. The appropriate TOR for the proposed activity; and

3. The appropriate budget for the TOR recommended for the proposed activity.

If the recommendation is that USTDA should fund the activity, but in a phased approach or only if certain outstanding issues are resolved or conditions met, those phases, issues or conditions should be clearly delineated in the recommendation.

6.14. TERMS OF REFERENCE

The DM Contractor shall provide Terms of Reference (TOR) for the activity(ies). The TOR, which must be endorsed by the Project Sponsor, shall include, at a minimum, the following:

6.14.1. Purpose and objective of the activity. This should explain how the activity relates to the proposed project.

6.14.2. Project Development Analysis. This section should summarize all work required to develop and implement the project, such as data collection, technology selection, project site preparation, regulatory reviews, bidding document preparation, training, cost benefit analysis, and project implementation plan. The work should be tailored to fit the needs of the project and meet USTDA’s funding requirements.

6.14.3. Economic analysis of the project. The TOR shall describe all analyses that are needed to determine the economic viability and sustainability of the project. This includes a cash flow analysis, life cycle costing, attention to market conditions, raw material availability, supply agreements, off-take agreements, and competing alternative methods of achieving the same or similar project objectives. The TOR shall include all requirements and information needed by financiers, project developers and stakeholders.

In order to provide the Project Sponsor with sufficient information to responsibly manage and maintain the project for the duration of the investment, the TOR should include a task or sub-task to include a Life Cycle Cost Analysis (LCCA) as part of the overall project cost estimate. The LCCA shall examine the total initial capital costs to plan, design, develop, and build the project, and also shall include a detailed analysis of the costs associated with the long-term operation of the project, which includes maintaining the facilities, equipment, and other assets financed as part of the project. Such costs include, but are not limited to, warranties, operation, maintenance, acquisition, installation, refurbishment, and disposal costs that could be encountered throughout the life of the project.

6.14.4. Financial Analysis. The TOR should help define the financial requirements to implement the project, which may include determining the availability of equity and debt financing, the views of potential financing entities and potential for U.S. Export-Import Bank and OPIC to play a role in project implementation. The TOR shall help progress the project to implementation.

6.14.5. Environmental Analysis. The TOR shall help to determine the project’s anticipated impact on the environment. The TOR shall ensure that the environmental analysis will conform to local requirements, the U.S. government, and multilateral lending agencies. This TOR should include language requiring the identification of potential negative impacts, discuss the extent to which they can be mitigated, and develop plans for a full environmental impact assessment if and when the project moves forward to the implementation stage. The TOR should also outline all work required, by the project sponsor, following the completion of the USTDA activity but prior to project implementation.

6.14.6. Regulatory Review. The TOR should detail all regulatory analysis that would be required to progress the project toward implementation. This TOR should also include language to identify potential regulatory barriers to project implementation, and whether/how they can be overcome.

6.14.7. Development Impact Measurements. The TOR shall detail the type of work that will be required to identify the development impact the project will have if it is implemented according to the USTDA activity’s recommendations. Specifically the work shall include detailed analysis of how the development impacts can be measured, and data can be collected to validate that development occurred, as well as benchmarks and timelines when development impacts will be realized.

USTDA’s Development Impact Measurements are:

(1) Infrastructure

(2) Market- Oriented Reform

(3) Human Capacity Building

(4) Technology Transfer and Productivity Enhancement

(5) Other

The definitions and guidance for each of these will be provided by the COR.

6.14.8. U.S. sources of supply. The TOR shall include the identification of U.S. sources of supply for all goods and services required to implement the project. It is anticipated that the TOR will also require detailed information about U.S. companies, potential products/service, and how they would need to engage to participate in the project.

6.14.9. Implementation Plan. All work required, after the conclusion of the activity work, to implement the project

6.14.10. Final Report detailing all the work that was performed under the TOR.

6.15. BUDGET

6.15.1. Budget Format. The DM Contractor shall provide a detailed budget for each recommended USTDA activity that is divided into three parts: a line item budget and task breakdown (Annex III), a Task Completion Schedule (Annex IV), and a budget narrative (Annex V). All costs in each budget should be reasonable and allocable to the work being performed, and should support the activity TOR. The budget should be supported with sufficient detail to enable USTDA staff or others reviewing the material to understand completely, not only the budgeted amounts, but also the methodology that justifies the budget amounts. The budget should be provided in accordance with the format in Annex III and should include:

· Labor, budgeted by position title and task for each of the positions on the activity team. Positions should be identifiable, with descriptions of the positions and proposed team members included in the proposal. Person-Days should reflect the proposed number of days of work effort proposed for each position for each task. The labor cost shall be derived as set forth in Annex III. The proposed budget may not include fee or profit.

· Itemization for per diem, transportation, communications, purchased services/contracts, translation of Final Report, and other direct costs. Per diem must be based on U.S. Government rates, which are available on the State Department web site (http://aoprals.state.gov/web920/per_diem.asp)

· The Task Completion Schedule should list each major task to be performed in support of the TOR. The duration of each task is to be graphically presented in a bar chart as illustrated in Annex IV.

· The budget narrative should provide a detailed budget explanation and justification presenting how all costs have been derived in accordance with the sample provided in Annex V. The narrative must include an explanation for every line item. In general, each narrative statement should describe, in as much detail as possible:

· What the specific item is

· How the specific item relates to the project

· How the amount shown in the budget was arithmetically determined

Annex I

IMPACT ON U.S. LABOR STATEMENT

THE DM CONTRACTOR SHALL CONSIDER THE VARIOUS IMPACTS ON U.S. LABOR FOR ALL RECOMMENDED PROJECTS FOR USTDA FUNDING.

The Foreign Operations, Export Financing and Related Programs Appropriations legislation restricts U.S. foreign assistance from being used to provide: (a) any financial incentive to a business enterprise currently located in the United States for the purpose of inducing such an enterprise to relocate outside the United States if such incentive or inducement is likely to reduce the number of employees of such business enterprise in the United States because United States production is being replaced by such enterprise outside the United States; (b) assistance for any project or activity that contributes to the violation of internationally recognized workers rights; and (c) direct assistance for establishing or expanding production of any commodity for export by any country other than the United States, if the commodity is likely to be in surplus on world markets at the time the resulting productive capacity is expected to become operative and if the assistance will cause substantial injury to United States producers of the same, similar, or competing commodity.

Annex I - 1 Annex II

USTDA Nationality Requirements for the DM Contractor

Award is limited to U.S. firms or U.S. individuals. The Contractor may use U.S. subcontractors. Employees of U.S. Contractor or U.S. subcontractor firms shall be U.S. citizens or non-U.S. citizens lawfully admitted for permanent residence in the United States, except that up to twenty percent (20%) of the DM contract amount may be used to pay for services performed by (i) Host Country subcontractors, and/or (ii) Host Country nationals who are employees of the Contractor. Subcontractors from countries other than the United States or Host Country may not be used. Goods purchased for performance of the DM services and associated delivery services (e.g., international transportation and insurance) must have their nationality, source and origin in the United States. Goods and services incidental to DM support (e.g., local lodging, food, and transportation) in Host Country are not subject to the above restrictions. Finally, Contractor’s cumulative use of all subcontractors is limited to less than fifty percent (50%) of the DM contract amount.

Nationality:

Definitions A “U.S. individual” is (a) a U.S. citizen, or (b) a non-U.S. citizen lawfully admitted for permanent residence in the United States (a green card holder).

A “U.S. firm” is a privately owned firm which is incorporated in the United States, with its principal place of business in the United States, and which is either (a) more than 50% owned by U.S. individuals, or (b) has been incorporated in the United States for the last three (3) year period; employs U.S. citizens in more than half of its permanent full-time positions in the United States; and has the existing capability in the United States to perform the work in question.

A partnership, organized in the United States with its principal place of business in the United States, may also qualify as a “U.S. firm,” as would a joint venture organized or incorporated in the United States consisting entirely of U.S. firms and/or U.S. individuals.

A nonprofit organization, such as an educational institution, foundation, or association may also qualify as a “U.S. firm” if it is incorporated in the United States and managed by a governing body, a majority of whose members are U.S. individuals.

Annex III – To Be Used by the DM Contractor for all Recommended Projects for USTDA Funding Consideration

Required Budget Format

DIRECT LABOR COSTS:

TOTALS: ________ ________ _____________

TOTALS: ________ ________ _____________

TOTAL DIRECT LABOR COSTS: _____________

OTHER DIRECT COSTS:

TOTAL OTHER DIRECT COSTS: _____________

TOTAL COSTS (DIRECT LABOR COSTS + OTHER DIRECT COSTS): _____________

PROPOSED USTDA GRANT: _____________* Primary Contractor (Employee) Labor Costs = Salary + Overhead + Benefits (no fee or profit).

** Non-Employee Labor Cost = Salary + Overhead + Benefits + Reasonable Fee or Profit.

*** Purchased Services/ Contracts may include engineering drawings, lab work, surveys, translation, etc., which would not be included in Non-Employee Labor Cost above.

Annex II - 1

Annex III - 1 Annex IV

Task Completion Schedule for all Recommended Projects for USTDA Funding Consideration

Weeks 1 2 3 4 5 6 7 8

Task I

Task II

Task III

Final Report

Instructions

List each major task to be performed. The duration of each task is to be graphically represented. For example, in the illustrative schedule, Task 1 is to begin in Week 1 and end in Week 4. Preparation of the Final Report begins in Week 6 and is completed in Week 8.

Annex IV - 1 Annex V

BUDGET NARRATIVE REQUIREMENTS FOR ALL RECOMMENDED PROJECTS FOR USTDA FUNDING CONSIDERATION

DIRECT COSTS

Direct Labor - Only salaries and wages for employees of the proposing organization should be identified here. Provide the job title; the names of the individuals, if known; the experience and training that describes the individual’s capabilities for the project and supports the proposed daily rate; and an explanation of how the individual will support the Terms of Reference. For each, provide the methodology for how the loaded rate was developed.

Examples:

Project Manager/Senior Engineer – This individual will provide necessary guidance and support to the project to ensure successful completion of the System Design and oversee the completion of the Terms of Reference. The proposed individual has 15 years experience managing telecommunications projects. It is estimated that 130 days will be required at a daily rate of $1455. The rate was calculated with a base salary of $776 a day and includes a fringe benefit rate of 25% and an overhead rate of 50%.

Junior Engineer – This individual will work with the Senior Engineer to develop the system design and provide documentation for the feasibility study. It is estimated that 75 days will be required at a daily rate of $728 a day. The rate was calculated with a base salary of $388 a day and includes a fringe benefit rate of 25% and an overhead rate of 50%.

Other Direct Labor – Consultants and other Non-Employee Labor should be identified here. Provide the job title; names of the individuals, if known; primary organization affiliation, if applicable; experience and training that describes the individual’s capabilities for the project and supports the proposed daily rate; and a justification of how the individual will support the Terms of Reference. For each, provide the mathematics for how the loaded rate was developed.

Example:

Independent Consultant – This individual will develop questionnaires and surveys to gather data from local participants and officials for the marketing plan. The individual will have experience developing and administering questionnaires and knowledge of the host country. It is estimated that 30 days will be required at a daily rate of $577 a day. The rate was calculated with a base salary of $300 a day and includes a fringe benefit rate of 30% and an overhead rate of 45%. A small profit/fee may be added, if justified.

OTHER DIRECT COSTS

Purchased Services/Contracts – For each purchased service or contract, include a clear description of the work to be performed as it relates to the Terms of Reference and a separate detailed budget for each. If the contractor or vendor is known, provide a basis for selection.

Examples:

Translation Services – A translation service provider will be hired to translate the final report. It is estimated that 1000 pages will be translated at $1.00 a page. The budget estimate is based on actual costs to translate similar documents in the past.

ABC Marketing, Inc. – This contractor was selected because they have 10 years experience developing marketing plans with significant experience in the host country. ABC Marketing will develop the marketing plan utilizing the data collected from questionnaires and surveys. Attached is ABC Marketing’s detailed budget of $15,324.

Domestic and Foreign Travel Include the destination and its relationship to the project and the Terms of Reference. Itemized costs must be included for each trip.

Examples:

The Project Manager/Senior Engineer and the Junior Engineer will travel to the host country for the Kick-Off Meeting and two subsequent trips for System Design Work. The Independent Consultant will travel to the host country for the Kick-Off Meeting and two subsequent trips for collection of data for the Marketing Plan.

One Kick-Off Meeting to be attended by the Project Manager/Senior Engineer, Junior Engineer, and Independent Consultant Roundtrip Airfare (Economy Class): $2,973/per Trip X 3 People = $8,919 Per Diem: $182 X 10 days X 3 People = $5,460 Local Transportation: $250/trip X 9 Trips = $2,250 Transportation to/from Airport: $100/Trip X 4 Trips = $400

Two System Design Trips (10 days each) for the Project Manager/Senior Engineer and Junior Engineer Roundtrip Airfare (Economy Class): $2,973 X 2 Trips X 2 People = $11,892 Per Diem: $182 X 2 Trips X 10 days X 2 people = $7,280 Local Transportation: $250/trip X 18 Trips = $4,500 Transportation to/from Airport: $100/trip X 4 trips = $400

Two Data Gathering Trips for the Marketing Plan (10 days each) for the Project Manager/Senior Engineer and Independent Consultant Roundtrip Airfare (Economy Class): $2,973 X 2 Trips X 2 People = $11,892 Per Diem: $182 X 2 Trips X 10 days X 2 people = $7,280 Local Transportation: $250/trip X 18 Trips = $4,500 Transportation to/from Airport: $100/trip X 4 trips = $400

Other Expenses Other expenses may include such items as reproduction, publishing costs, and telephone calls. Provide a detailed explanation for each as to how it relates to the Terms of Reference and include calculations on how the numbers have been derived.

Example:

Reproduction of the Final Report – Eight copies of the Final Report will be reproduced and bound in accordance with the Final Report specifications provided by USTDA.

Reproduction: 1000 Pages X $.10/per Copy X 8 Copies = $800 Binding and Final Report Specifications: $20/per Copy X 8 Copies = $160

Annex V - 3

Annex VI - U.S. Companies Contacted During the Course of the Definitional Mission

Annex VI - 1