Issuance Date: March 7, 2007

Closing Date: April 27, 2007

Closing Time: 3:00 PM, Manila Time

To : Potential Offerors

Subject : Request for Proposal (RFP) No. 492-07-002

Growth with Equity in Mindanao 3 Project (GEM 3)

The United States Government, represented by the U.S. Agency for
International Development (USAID) Mission in the Philippines requests
proposals from organizations qualified to provide/perform engineering,
construction management, administrative, and professional services as
necessary to accomplish the work described in Section C. of this
solicitation. []{.mark}

[]{.mark}

In general the, the Prime Contractor will be responsible for the
construction in Mindanao of Barangay (village-level) Infrastructure
Projects (BIPS) with construction costs between \$5,000 and \$50,000 and
Regional Impact Projects (RIPS) with construction costs exceeding
\$50,000 up to \$4,000,000. Local sources that are physically located in
the Philippines and authorized (i.e. registered and licensed) to do
construction work in the Philippines will be contracted by the prime
contractor to perform the construction work specified in this
solicitation. Project design work for BIPS is expected to be carried out
internally by the Prime's staff. Except in rate circumstances, project
design work for RIPS is expected to be subcontracted to local
architect-engineering (A&E) firms. The prime contractor will assure the
design and construction of the infrastructure projects. To successfully
carry out the requirements of the Scope of Work besides construction
management services, the Prime Contractor shall be responsible for
business development, workforce preparation, governance and support
activities.

It is anticipated a five-year, Cost-Plus-Fixed Fee (CPFF)
completion-type prime contract will be awarded as a result of this
solicitation. The magnitude of the basic contract is between
\$125,000,000 and \$145,000,000 and between \$12,000,000 and
\$16,000,000 for the optional component. Revealing the budgetary
magnitudes for the contract and option does not mean that offerors
should necessarily strive to meet the maximum amounts. The most cost
effective approach for achieving the results is encouraged and award
will be made to the offeror whose proposal offers the best value to the
Government considering technical and cost factors (see Section M of this
solicitation).

This Solicitation is being issued for full and open competition, under
which any type organization, large or small commercial (for profit)
firms, educational institutions, non-profit organizations, are eligible
to compete. All participating organizations involved in
providing/performing the required services as a prime contractor, must
be of USAID Geographic Code 000 (United States) nationality. For
subcontractors, the authorized geographic code is the Host Country and
Geographic Code 000 pursuant to the requirements of 22 CFR 228.

USAID encourages participation to the maximum extent possible of small
business concerns, including small disadvantaged and women-owned
concerns in this project as the prime contractor or in the role of a
subcontractor in accordance with FAR Part 19. Also if the offeror (Prime
Contractor) is not a small business, small disadvantaged or women-owned
small business, a subcontracting plan must be submitted as part of the
offeror's cost proposal.

The competitive proposal method of solicitation, as set forth in FAR
Part 15 will be used for this procurement. The RFP contains clauses
incorporated by reference. The full text of the FAR clauses is available
on the internet at <http://www.arnet.gov/far/>. The full text of the
Agency for International Development Regulation (AIDAR) clauses is
available at [http://www.usaid.gov](http://www.usaid.gov/). Pursuant to
Federal Acquisition Regulation (FAR) 15.204-1), Uniform Contract Format,
Sections B through J of the attached RFP represent the draft contract
and will be the basis for the contractual relationship between USAID and
the selected Prime Contractor.

A pre-proposal conference will be held on March 23, 2007 at 10:00 AM to
12:00 Noon in the Main Conference Room, USAID/Philippines, 8^th^ Flr.,
PNB Financial Center, Pres. Diosdado Macapagal Boulevard, Pasay City,
Manila, Philippines. You must have picture ID to enter the building. The
purpose of the conference is to offer potential offerors an opportunity
to ask questions and to request clarifications relating to the RFP. Each
organization that plans to attend is requested to limit participation to
two representatives and is requested to submit the names and titles of
representatives who plan to attend by 3:00 PM Manila Time March 21, 2007
via e-mail to <492_RFP_GEM-3@usaid.gov>.

If you decide to submit a proposal, it must be submitted in accordance
with FAR 52.215-1 and this RFP and received no later than the date and
time indicated above and in Block 9 of the cover page (Standard Form 33)
of the solicitation to the following address:

[If hand delivered]{.underline}:

USAID/Philippines

Office of Regional Procurement

8/F PNB Financial Center

Pres. Diosdado Macapagal Blvd.

Pasay City 1308

Philippines

Tel. Nos. (632) 552-9923 or (632) 552-9924

[By U.S. Mail]{.underline}

Office of Regional Procurement

USAID/Manila

PSC 502, Box 1

FPO AP 96515-1200

[Internet via e-mail for electronic submission:]{.underline}
<492_RFP_GEM-3@usaid.gov>[.]{.underline}

ATTN: Ma.Belinda De la Torre, Acquisition Specialist

Offerors should take into account the expected delivery time required by
the proposal transmission method they choose and are responsible for
ensuring that proposals are received at the designated place and time,
subject to the Late Proposal clause of this solicitation.

The primary point of contract for this RFP is Acquisition Specialist,
Ma. Belinda De la Torre. Any Questions related to this solicitation must
be submitted electronically by close-of-business (4:30 PM, Manila Time)
on March 30, 2007, in order to provide for a timely response to such
questions prior to the closing date. Any information given to a
prospective offeror concerning this solicitation will be furnished to
all such offerors as an amendment of the solicitation, if such
information is necessary to an offeror in submitting proposals or if the
lack of such information would be prejudicial to an uninformed offeror.

Since the RFP will be posted at FedBizOpps, there will be no printed
copies of the solicitation prepared or available for distribution by
USAID. Because this Office does not automatically maintain a listing of
parties who download documents from FedBizOpps, organizations interested
in this solicitation are encouraged to provide their names and points of
contract no later than March 15, 2007 via e-mail to
<492_RFP_GEM-3@usaid.gov>. This information will be posted on
FedBizOpps. Offerors are advised to periodically check FedBizOpps at
[http://www.fedbizopps.gov]{.underline} for all amendments to this RFP.

The Government reserves the right to award a contract without
discussions or the submittal of final proposed revisions, based upon
evaluation of the offeror's submitted technical and cost information.
Accordingly the offeror's initial offer should contain its best terms
from both a cost/price and technical standpoint.

Offerors are advised that funds are not yet available for a contract
award and final approval of the Mission's Operational Plan by the Head
of the Agency is required prior to an obligation of funds under any
contract resulting from this solicitation.

This solicitation in no way obligates USAID to award a contract nor does
it commit USAID to pay any costs incurred in the preparation and
submission of the proposal.

Sincerely,

Raymond L. Edler

Supervisory Regional Contracting Officer

<table style="width:100%;">
<colgroup>
<col style="width: 3%" />
<col style="width: 3%" />
<col style="width: 3%" />
<col style="width: 7%" />
<col style="width: 1%" />
<col style="width: 2%" />
<col style="width: 1%" />
<col style="width: 1%" />
<col style="width: 1%" />
<col style="width: 3%" />
<col style="width: 1%" />
<col style="width: 0%" />
<col style="width: 3%" />
<col style="width: 3%" />
<col style="width: 0%" />
<col style="width: 3%" />
<col style="width: 2%" />
<col style="width: 1%" />
<col style="width: 1%" />
<col style="width: 3%" />
<col style="width: 1%" />
<col style="width: 2%" />
<col style="width: 6%" />
<col style="width: 0%" />
<col style="width: 0%" />
<col style="width: 4%" />
<col style="width: 2%" />
<col style="width: 2%" />
<col style="width: 2%" />
<col style="width: 1%" />
<col style="width: 2%" />
<col style="width: 1%" />
<col style="width: 2%" />
<col style="width: 2%" />
<col style="width: 1%" />
<col style="width: 0%" />
<col style="width: 1%" />
<col style="width: 6%" />
</colgroup>
<tbody>
<tr class="odd">
<td colspan="16" rowspan="2">SOLICITATION, OFFER AND AWARD</td>
<td colspan="10" rowspan="2"><ol type="1">
<li><p>THIS CONTRACT IS A RATED ORDER</p></li>
</ol>
<blockquote>
<p>UNDER DPAS (15 CFR 700)</p>
</blockquote></td>
<td colspan="6">RATING</td>
<td colspan="2">PAGE</td>
<td colspan="3">OF</td>
<td>PAGE(S)</td>
</tr>
<tr class="even">
<td colspan="6"><blockquote>
<p><strong>N/A</strong></p>
</blockquote></td>
<td colspan="4"><strong>1</strong></td>
<td colspan="2"><strong>120</strong></td>
</tr>
<tr class="odd">
<td colspan="5">2. CONTRACT NO.</td>
<td colspan="11">3. SOLICITATION NO.</td>
<td colspan="7">4. TYPE OF SOLICITATION</td>
<td colspan="6">5. DATE ISSUED</td>
<td colspan="9">6. REQUISITION/PURCHASE NO.</td>
</tr>
<tr class="even">
<td colspan="5"><blockquote>
&#10;</blockquote></td>
<td colspan="11"><blockquote>
<p><strong>RFP 492-07-002</strong></p>
</blockquote></td>
<td colspan="7"><blockquote>
<p> SEALED BID (IFB)</p>
<p> NEGOTIATED (RFP)</p>
</blockquote></td>
<td colspan="6"><blockquote>
<p><strong>03/07/2007</strong></p>
</blockquote></td>
<td colspan="9"></td>
</tr>
<tr class="odd">
<td colspan="6">7. ISSUED BY</td>
<td colspan="7">CODE</td>
<td colspan="6"></td>
<td colspan="19">8. ADDRESS OFFER TO <em>(If other than Item
7)</em></td>
</tr>
<tr class="even">
<td colspan="19"><blockquote>
<p>Office of Regional Procurement</p>
<p>USAID/Philippines, 8/F, PNB Financial Center, Roxas Blvd.</p>
<p>1308 Pasay City, Philippines</p>
</blockquote></td>
<td colspan="19"></td>
</tr>
<tr class="odd">
<td colspan="38">NOTE: In sealed bid solicitations “offer” and “offeror”
mean “bid” and “bidder”</td>
</tr>
<tr class="even">
<td colspan="38">SOLICITATION</td>
</tr>
<tr class="odd">
<td colspan="38"><p>9. Sealed offers in original and <u>_<strong>See
Section L</strong>______</u> copies for furnishing the supplies or
services in the Schedule will be received at the place specified in Item
8, or if handcarried, in the depository located in __<strong><u>See Item
7___</u></strong>until <strong><u>3:00 PM</u></strong> <strong><u>Manila
time, April 16,</u></strong>_ <u><strong>2007.</strong></u></p>
<p>CAUTION - LATE Submissions, Modifications, and Withdrawals: See
Section L, Provision No. 52.214-7 or 52.215-1. All offers are subject to
all terms and conditions contained in this solicitation.</p></td>
</tr>
<tr class="even">
<td colspan="3">10.</td>
<td colspan="14">A. NAME</td>
<td colspan="10">B. TELEPHONE NO. <em><strong>(NO COLLECT
CALLS)</strong></em></td>
<td colspan="11">C. E-MAIL ADDRESS</td>
</tr>
<tr class="odd">
<td colspan="3" rowspan="2"><p>FOR INFORMATION</p>
<p>CALL:</p></td>
<td colspan="14" rowspan="2"><blockquote>
<p><strong>Ma. Belinda De La Torre</strong></p>
</blockquote></td>
<td colspan="4">Intl CODE</td>
<td colspan="3">NUMBER</td>
<td colspan="3">EXT.</td>
<td colspan="11" rowspan="2"><blockquote>
<p>mdela@usaid.gov</p>
</blockquote></td>
</tr>
<tr class="even">
<td colspan="4"><strong>632</strong></td>
<td colspan="3"><strong>5529800</strong></td>
<td colspan="3"><strong>9927</strong></td>
</tr>
<tr class="odd">
<td colspan="38">11. TABLE OF CONTENTS</td>
</tr>
<tr class="even">
<td>(x)</td>
<td>SEC.</td>
<td colspan="12">DESCRIPTION</td>
<td colspan="5">PAGE(S)</td>
<td>(x)</td>
<td colspan="2">SEC.</td>
<td colspan="13">DESCRIPTION</td>
<td colspan="3">PAGE(S)</td>
</tr>
<tr class="odd">
<td colspan="19"><strong>PART I - THE SCHEDULE</strong></td>
<td colspan="19"><strong>PART II - CONTRACT CLAUSES</strong></td>
</tr>
<tr class="even">
<td>X</td>
<td>A</td>
<td colspan="12">SOLICITATION/CONTRACT FORM</td>
<td colspan="5">4</td>
<td>X</td>
<td colspan="2">I</td>
<td colspan="13">CONTRACT CLAUSES</td>
<td colspan="3">69</td>
</tr>
<tr class="odd">
<td>X</td>
<td>B</td>
<td colspan="12">SUPPLIES OR SERVICES AND PRICE/COST</td>
<td colspan="5">10</td>
<td colspan="19"><strong>PART III - LIST OF DOCUMENTS, EXHIBITS AND
OTHER ATTACH.</strong></td>
</tr>
<tr class="even">
<td>X</td>
<td>C</td>
<td colspan="12">DESCRIPTION/SPECS./WORK STATEMENT</td>
<td colspan="5">14</td>
<td>X</td>
<td colspan="2">J</td>
<td colspan="13">LIST OF ATTACHMENTS</td>
<td colspan="3">81</td>
</tr>
<tr class="odd">
<td>X</td>
<td>D</td>
<td colspan="12">PACKAGING AND MARKING</td>
<td colspan="5">39</td>
<td colspan="19"><strong>PART IV – REPRESENTATIONS AND
INSTRUCTIONS</strong></td>
</tr>
<tr class="even">
<td>X</td>
<td>E</td>
<td colspan="12">INSPECTION AND ACCEPTANCE</td>
<td colspan="5">41</td>
<td rowspan="2">X</td>
<td colspan="2" rowspan="2">K</td>
<td colspan="13" rowspan="2">REPRESENTATIONS, CERTIFICATIONS AND OTHER
STATEMENTS OF OFFERORS</td>
<td colspan="3" rowspan="2">82</td>
</tr>
<tr class="odd">
<td>X</td>
<td>F</td>
<td colspan="12">DELIVERIES OR PERFORMANCE</td>
<td colspan="5">42</td>
</tr>
<tr class="even">
<td>X</td>
<td>G</td>
<td colspan="12">CONTRACT ADMINISTRATION DATA</td>
<td colspan="5">48</td>
<td>X</td>
<td colspan="2">L</td>
<td colspan="13">INSTRS., CONDS., AND NOTICES TO OFFERORS</td>
<td colspan="3">87</td>
</tr>
<tr class="odd">
<td>X</td>
<td>H</td>
<td colspan="12">SPECIAL CONTRACT REQUIREMENTS</td>
<td colspan="5">53</td>
<td>X</td>
<td colspan="2">M</td>
<td colspan="13">EVALUATION FACTORS FOR AWARD</td>
<td colspan="3">104</td>
</tr>
<tr class="even">
<td colspan="38">OFFER <em>(Must be fully completed by
offeror)</em></td>
</tr>
<tr class="odd">
<td colspan="38">NOTE: Item 12 does not apply if the solicitation
includes the provisions at 52.214-16, Minimum Bid Acceptance
Period.</td>
</tr>
<tr class="even">
<td colspan="38">12. In compliance with the above, the undersigned
agrees, if this offer is accepted within <strong><u>_____</u></strong>
calendar days <em>(60 calendar days unless a different period is
inserted by the offeror)</em> from the date for receipt of offers
specified above, to furnish any or all items upon which prices are
offered at the price set opposite each item, delivered at the designated
point(s), within the time specified in the schedule.</td>
</tr>
<tr class="odd">
<td colspan="10" rowspan="2"><p>13. DISCOUNT FOR PROMPT PAYMENT</p>
<blockquote>
<p><em>(See Section I, Clause No. 52.232-8)</em></p>
</blockquote></td>
<td colspan="8">10 CALENDAR DAYS (%)</td>
<td colspan="6">20 CALENDAR DAYS (%)</td>
<td colspan="7">30 CALENDAR DAYS (%)</td>
<td colspan="7">CALENDAR DAYS (%)</td>
</tr>
<tr class="even">
<td colspan="8">%</td>
<td colspan="6">%</td>
<td colspan="7">%</td>
<td colspan="7">%</td>
</tr>
<tr class="odd">
<td colspan="10" rowspan="3"><p>14. ACKNOWLEDGMENT OF AMENDMENTS
<em>(The offeror</em></p>
<p><em>acknowledges receipt of amendments to the SOLICITATION</em></p>
<p><em>for offerors and related documents numbered and
dated:</em></p></td>
<td colspan="8">AMENDMENT NO.</td>
<td colspan="6">DATE</td>
<td colspan="7">AMENDMENT NO.</td>
<td colspan="7">DATE</td>
</tr>
<tr class="even">
<td colspan="8"></td>
<td colspan="6"></td>
<td colspan="7"><blockquote>
<p>     </p>
</blockquote></td>
<td colspan="7"><blockquote>
<p>     </p>
</blockquote></td>
</tr>
<tr class="odd">
<td colspan="8"><blockquote>
<p>     </p>
</blockquote></td>
<td colspan="6"><blockquote>
<p>     </p>
</blockquote></td>
<td colspan="7"><blockquote>
<p>     </p>
</blockquote></td>
<td colspan="7"><blockquote>
<p>     </p>
</blockquote></td>
</tr>
<tr class="even">
<td colspan="3" rowspan="2"><p>15A. NAME AND</p>
<blockquote>
<p>ADDRESS</p>
<p>OF OFFEROR</p>
</blockquote></td>
<td>CODE</td>
<td colspan="7"></td>
<td colspan="4">FACILITY</td>
<td colspan="5"></td>
<td colspan="18">16. NAME AND TITLE OF PERSON AUTHORIZED TO SIGN OFFER
<em>(Type or print)</em></td>
</tr>
<tr class="odd">
<td colspan="17"></td>
<td colspan="18"></td>
</tr>
<tr class="even">
<td colspan="9">15B. TELEPHONE NUMBER</td>
<td colspan="11" rowspan="3"><p> 15C. CHECK IF REMITTANCE ADDRESS</p>
<p>IS DIFFERENT FROM ABOVE – ENTER</p>
<p>SUCH ADDRESS IN SCHEDULE.</p></td>
<td colspan="10">17. SIGNATURE</td>
<td colspan="8">18. OFFER DATE</td>
</tr>
<tr class="odd">
<td colspan="2">AREA CODE</td>
<td colspan="2">NUMBER</td>
<td colspan="5">EXT.</td>
<td colspan="10" rowspan="2"></td>
<td colspan="8" rowspan="2"></td>
</tr>
<tr class="even">
<td colspan="2">     </td>
<td colspan="2">     </td>
<td colspan="5">     </td>
</tr>
<tr class="odd">
<td colspan="38">AWARD <em>(To be completed by Government)</em></td>
</tr>
<tr class="even">
<td colspan="10">19. ACCEPTED AS TO ITEMS NUMBERED</td>
<td colspan="9">20. AMOUNT</td>
<td colspan="19">21. ACCOUNTING AND APPROPRIATION</td>
</tr>
<tr class="odd">
<td colspan="10"></td>
<td colspan="9"></td>
<td colspan="19"></td>
</tr>
<tr class="even">
<td colspan="19">22. AUTHORITY FOR USING OTHER THAN FULL AND OPEN
COMPETITION:</td>
<td colspan="12">23. SUBMIT INVOICES TO ADDRESS SHOWN IN</td>
<td colspan="7">ITEM</td>
</tr>
<tr class="odd">
<td colspan="7"><blockquote>
<p> 10 U.S.C. 2304(c) ( )</p>
</blockquote></td>
<td colspan="12"><blockquote>
<p> 41 U.S.C. 253(c) ( )</p>
</blockquote></td>
<td colspan="12"><blockquote>
<p>(4 copies unless otherwise specified)</p>
</blockquote></td>
<td colspan="7"></td>
</tr>
<tr class="even">
<td colspan="8">24. ADMINISTERED BY (If other than Item 7)</td>
<td colspan="5">CODE</td>
<td colspan="6"></td>
<td colspan="9">25. PAYMENT WILL BE MADE BY</td>
<td colspan="5">CODE</td>
<td colspan="5"></td>
</tr>
<tr class="odd">
<td colspan="19"><blockquote>
<p>     </p>
</blockquote></td>
<td colspan="19"><p>Office of the Controller, USAID/Philippines</p>
<p>8/F, PNB Financial Center, Roxas Blvd.</p>
<p>Pasay City 1308, Philippines</p></td>
</tr>
<tr class="even">
<td colspan="19">26. NAME OF Contracting Officer (Type or print)</td>
<td colspan="14">27. UNITED STATES OF AMERICA</td>
<td colspan="5">28. AWARD DATE</td>
</tr>
<tr class="odd">
<td colspan="19"><blockquote>
<p>RAYMOND L. EDLER, Contracting Officer</p>
</blockquote></td>
<td colspan="14"></td>
<td colspan="5"></td>
</tr>
<tr class="even">
<td colspan="19"></td>
<td colspan="14"><em>(Signature of Contracting Officer)</em></td>
<td colspan="5"></td>
</tr>
<tr class="odd">
<td colspan="38">IMPORTANT: Award will be made on this Form, or on
Standard Form 26, or by other authorized official written notice.</td>
</tr>
<tr class="even">
<td colspan="12"><p>AUTHORIZED FOR LOCAL REPRODUCTION</p>
<p>Previous edition not usable.</p></td>
<td colspan="13">33-133</td>
<td colspan="13"><p>STANDARD FORM 33 (Rev. 9-97)   </p>
<p>Prescribed by GSA FAR (48 CFR) 53.214(c)</p></td>
</tr>
</tbody>
</table>

**TABLE OF CONTENTS**

Letter to Potential Offerors 1

SF33 -- Solicitation, Offer and Award 4

PART I -- THE SCHEDULE

Section B -- Supplies or Services and Price/Costs 10

B.1 Purpose 10

B.2 Contract Type 10

B.3 Estimated Cost, Fixed Fee and Obligated Amount 10

B.4 Price Schedule 11

B.5 Establishment of Indirect Cost Rate 12

B.6 Advance Understanding on Ceiling Indirect Cost Rates and Final
Reimbursement

For Indirect Costs 12

B.7 Costs Reimbursable, Fixed Fee, Payment and Logistic Support to the
Contractor 13

a\. Costs Reimbursable 13

b\. Fixed Fee 13

c\. Payment 13

B.8 Former Combatants Reintegration Option 13

Section C -- Description/Specifications/Statement of Work 14

C.1 Background 14

C.2 USAID's Role 15

C.3 The Growth with Equity in Mindanao (GEM) Program 15

C.4 Statement of Work 16

a\. Program Components 16

1\. Infrastructure Development 17

\(a\) BIPs and RIPs 17

\(b\) BIP-Specific Approaches 19

\(c\) RIP-Specific Approaches 19

2\. Business Development Activities 21

\(a\) Business Support Organization (BSO) Development 21

\(b\) Targeted Commodity Expansion Program (TCEP) 22

\(c\) Attracting Initial/Exploratory Investments in Key Industries 23

\(1\) Tourism 24

\(2\) Business Process Outsourcing (BPO) 24

\(3\) Mining 24

3\. Workforce Preparation Activities 25

\(a\) Computer and Internet Education 25

\(b\) Assisting Parents Groups (PTAs) to Improve Education 26

\(c\) Employment-Qualifying English Language Skills 26

\(d\) Scholarships 26

\(e\) Business Internships 27

4\. Governance Improvement Activities 27

\(a\) Revenue Availability of ARMM LGUs 27

\(b\) Additional Governance Improvement Activities 28

\(c\) Congressional Internship Program 28

5\. Other Activities 29

6\. Former Combatant Reintegration Option 29

b\. Support Activities 31

1\. Communications and Information 31

2\. Facilitation Services 32

3\. Special Activities Fund 33

C.5 Summary of Performance Targets and Expected Results 34

C.6 Implementation Arrangements 37

C.7 Mobilization 38

C.8 Transition 38

Section D -- Packaging and Marking 39

D.1 Packaging 39

D.2 Branding and Marking of Deliverables 39

Section E -- Inspection and Acceptance 41

E.1 Notice Listing Contract Clauses Incorporated by Reference 41

E.2 Responsible Official 41

E.3 Inspection and Acceptance 41

E.4 Monitoring and Evaluation 41

Section F -- Deliveries or Performance 42

F.1 Notice Listing Contract Clauses Incorporated by Reference 42

F.2 Period of Performance 42

F.3 Principal Place of Performance 42

F.4 Performance Standards 42

F.5 Technical Directions 42

F.6 Reports and Deliverables or Outputs 43

F.7 Address for Reports 45

F.8 Key Personnel 45

F.9 Submission Requirements for Development Experience Documents (JAN
2004) 46

Section G -- Contract Administration Data 48

G.1 Accounting and Appropriation Data 48

G.2 Administrative Contracting Office 48

G.3 Cognizant Technical Officer (CTO) 48

G.4 Paying Office 49

G.5 Invoicing and Payment 50

G.6 AIDAR 752.7003 Documentation for Payment (NOV 1998) 50

G.7 Defective or Improper Invoices 51

G.8 Submission of Completion Voucher 51

G.9 Small Business and Small Disadvantaged Business Subcontracting 51

G.10 Representations and Certifications 52

G.11 Modification Authority 52

Section H - Special Contract Requirements 53

H.1 Notice Listing Contract Clauses Incorporated by Reference 53

H.2 International Travel Approval and Notification Requirements 53

H.3 Personnel Compensation 53

H.4 AIDAR 752.7004 Emergency Locator Information (JUL 1997) 55

H.5 Physical Fitness/Medical Clearance 56

H.6 Medical Evacuation (MEDEVAC) Services (APR 2006) 56

H.7 Defense Base Act Insurance 56

H.8 Travel Expenses Related to Misconduct or Inexcusable Nonperformance
57

H.9 Authorized Geographic Code 57

H.10 Logistic Support 57

H.11 Language Requirements 57

H.12 Procurement and Subcontracting 57

H.13 Nonexpendable Property Purchases and Information Technology
Resources 58

H.14 Automation Equipment 58

H.15 Subcontracting Plan and the SF 294 -- Subcontracting Report for
Individual

Contracts and SF 295 -- Summary Contracting Report 58

H.16 Key Subcontractor Clause 58

H.17 Government-Owned Organizations 59

H.18 Approvals 59

H.19 Competition and Subcontracting 59

H.20 Government Property 59

H.21 Security 59

H.22 Philippine Visas for Contractor Staff and Dependents 60

H.23 Government Property 60

H.24 Use of Project Vehicles 60

H.25 Ordinary Course of Business 60

H.26 Contractor's Proposal and/or Final Proposal Revision 61

H.27 Conflicts of Interest 61

H.28 Executive Order on Terrorism Financing (FEB 2002) 61

H.29 Reporting of Foreign Taxes 61

H.30 USAID Disability Policy -- Acquisition (DEC 2004) 62

H.31 AIDAR 752.225-70 Source, Origin and Nationality Requirements (FEB
1997) 63

H.32 AIDAR 752.225-71 Local Procurement (FEB 1997) 63

H.33 Host Country Taxes 63

H.34 AIDAR 726.7102 Relocation of U.S. Businesses, Assistance to Export
Processing

Zones, Internationally Recognized Workers' Rights (JAN 1994) 64

H.35 AIDAR 752.7028 Differentials and Allowances (JUL 1996) 64

a\. Post Differential 64

b\. Living Quarters Allowance 64

c\. Temporary Quarters Subsistence Allowance 65

d\. Post Allowance 65

e\. Supplemental Post Allowance 65

f\. Educational Allowance 65

g\. Educational Travel 65 h. Separate Maintenance Allowance 65

i\. Payments during Evacuations 65

j\. Danger Pay Allowance 66

H.36 Required Insurance 66

H.37 Permits and Responsibilities 66

H.38 Independent Inquiries 66

H.39 FAR 52.204-9 Personal Identity Verification of Contractor Personnel
(NOV 2006) 66

H.40 Homeland Security Presidential Directive -- 12 (HSPD-12) 67

H.41 Airfare Travel Restriction 67

H.42 Long-Term Overseas Assignments 67

H.43 Allowances for Third Country Nationals (TCNs) and Cooperating
Country

Nationals (CCNs) 68

PART II -- CONTRACT CLAUSES

Section I -- Contract Clauses 69

I.1 Notice Listing Contract Clauses Incorporated by Reference 69

I.2 52.204-7 Central Contractor Registration (JUL 2006) 73

I.3 52.217-8 Option to Extend Services (NOV 1999) 74

I.4 52.222-39 Notification of Employee Rights Concerning Payment of
Union Dues or

Fees (DEC 2004) 75

I.5 52.232-25 Prompt Payment (OCT 2003) 76

I.6 52.252-2 Clauses Incorporated by Reference (FEB 1998) 80

I.7 52.227-23 Rights to Proposal Data (Technical)(JUN 1987) 80

PART III -- LIST OF DOCUMENTS, EXHIBITS AND OTHER ATTACHMENTS

Section J -- List of Attachments 81

Attachment 1 USAID Principal Geographic Codes 108

Attachment 2 USAID Form 1420-17 Contractor Employee Biographical Data
Sheet 109

Attachment 3 SF LLL Disclosure of Lobbying Activities 112

Attachment 4 Sample Small Business Subcontracting Plan 116

Attachment 5 Background Reading for GEM-2 (Current Contract) and General
Information

about USAID/Philippines Development Assistance 120

PART IV -- REPRESENTATIONS AND INSTRUCTIONS

Section K -- Representations, Certifications and Other Statements of
Offerors 82

K.1 Notice Listing Solicitation Provisions Incorporated by Reference 82

K.2 52.204-8 Annual Representations and Certifications (JAN 2006) 82

K.3 52.203-1 Cost Accounting Standards Notices and Certification (JUN
2000) 83

K.4 52.230-7 Proposal Disclosure -- Cost Accounting Practice Changes
(APR 2005) 85

K.5 Insurance -- Immunity from Tort Liability 86

K.6 Agreement on, or Exceptions to, Terms and Conditions 86

K.7 Signature 86

Section L --Instructions, Conditions and Notices to Offerors 87

L.1 Notice Listing Solicitation Provisions Incorporated by Reference 87

L.2 52.215-1 Instructions to Offerors -- Competitive Acquisition (JAN
2004) 87

L.3 52.233-2 Service of Protest (SEP 2006) 91

L.4 52.215-20 Requirements for Cost or Pricing Data or Information Other
than Cost

Or Pricing Data (OCT 1997) 91

L.5 52.216-1 Type of Contract (APR 1984) 92

L.6 52.252-1 Solicitation Provisions Incorporated by Reference (FEB
1998) 92

L.7 General Instruction to Offerors 92

L.8 Unnecessarily Elaborate Proposals 94

L.9 False Statements 94

L.10 Instructions for the Preparation of the Technical Proposal 95

L.11 Instructions Regarding Key Personnel 98

L.12 Instructions for the Preparation of the Cost Proposal 98

L.13 Authority to Bind the Government 103

Section M -- Evaluation Factors for Award 104

M.1 52.217-5 Evaluation of Options (JUL 1990) 104

M.2 General -- Proposal Evaluation 104

M.3 Basis for Contract Award 104

M.4 Technical Evaluation Criteria 105

a\. Technical approach (30 points) 105

b\. Management Plan (20 points) 105

c\. Qualifications and Availability of Proposed Personnel (20 points)
105

d\. Capabilities and Experience of the Organization (10 points) 105

e\. Past Performance (20 points) 106

M.5 Cost Evaluation 106

a\. Cost Reasonableness 106

b\. Cost Realism 106

c\. Completeness 106

M.6 Determination of the Competitive Range and Contract Award 106

M.7 Selection 107

M.8 Contracting with Small Business Concerns and Disadvantaged
Enterprises 107

**PART I - THE SCHEDULE**

# SECTION B - SUPPLIES OR SERVICES AND PRICE/COSTS

## 

## B.1 PURPOSE

The purpose of this contract is to provide/perform engineering,
construction management, administrative and professional services
necessary to implement the Growth with Equity in Mindanao 3 (GEM 3)
program aimed at contributing to peace and development in Mindanao,
Philippines. The full description of the services required is described
in Section C.

## B.2 CONTRACT TYPE

This is a performance-based Cost-Plus-Fixed-Fee (CPFF) completion type
contract. For the consideration set forth in B.3, the Contractor shall
provide the deliverables or outputs described in Sections C and F in
accordance with the performance standards specified in Section F.

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

a\. The total estimated cost for the performance of the work required
hereunder, exclusive of fixed fee (if any), is
\$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_. The fixed fee (if any)
is \$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_. The estimated cost plus fixed
fee (if any) is \$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.

b.  Within the estimated cost plus fixed fee (if any) specified in
    paragraph a. above, the amount currently obligated and available for
    reimbursement of allowable costs incurred by the Contractor, and
    payment of fee (if any), for performance under the contract is, as
    follows:

> COST PLUS
>
> [CLIN]{.underline} [DESCRIPTION]{.underline} [FIXED FEE]{.underline}
> [OBLIGATED AMOUNT]{.underline}
>
> 01 Infrastructure Development \$\_\_\_\_\_\_\_\_\_\_\_\_
> \$\_\_\_\_\_\_\_\_\_\_\_\_
>
> 02 Business Development \_\_\_\_\_\_\_\_\_\_\_\_\_
> \_\_\_\_\_\_\_\_\_\_\_\_\_
>
> 03 Workforce Preparation \_\_\_\_\_\_\_\_\_\_\_\_\_
> \_\_\_\_\_\_\_\_\_\_\_\_\_
>
> 04 Governance Improvement \_\_\_\_\_\_\_\_\_\_\_\_\_
> \_\_\_\_\_\_\_\_\_\_\_\_\_
>
> 05 Special Activities Fund \_\_\_\_\_\_\_\_\_\_\_\_\_
> \_\_\_\_\_\_\_\_\_\_\_\_\_
>
> TOTALS \$\_\_\_\_\_\_\_\_\_\_\_\_\_ \$\_\_\_\_\_\_\_\_\_\_\_\_
>
> The Contractor shall not exceed the obligated amount for each CLIN
> plus Fixed Fee.

c.  The obligated funds set forth in paragraph b. above are anticipated
    to be sufficient to fund the Contractor's performance for each CLIN
    through the following dates:

> [CLIN]{.underline} [DESCRIPTION]{.underline} [DATE]{.underline}
>
> 01 Infrastructure Development \_\_\_\_\_\_\_\_\_\_\_\_\_\_
>
> 02 Business Development \_\_\_\_\_\_\_\_\_\_\_\_\_\_
>
> 03 Workforce Preparation \_\_\_\_\_\_\_\_\_\_\_\_\_\_
>
> 04 Governance Improvement \_\_\_\_\_\_\_\_\_\_\_\_\_\_
>
> 05 Special Activities Fund \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.

d.  The Contractor shall comply with the notice requirements of the
    clauses of this contract entitled "Limitation of Funds" (FAR
    52.232-22) and "Limitation of Cost" (FAR 52.232-20). The "Limitation
    of Funds" clause applies to the cumulative obligated amount of each
    Cost Line Item Number (CLIN). The "Limitation of Cost" clause
    applies to the total estimated cost of each CLIN once that CLIN has
    been fully funded. The Contractor shall not exceed the obligated
    amount for each CLIN unless authorized by the Contracting Officer
    pursuant to said

> clause. The Contractor shall not exceed the total estimated cost for
> each CLIN unless authorized by the Contracting Officer pursuant to
> said clause.

**B.4** **PRICE SCHEDULE**

a.  The following itemized budget sets forth the estimates for
    reimbursement of dollar costs for individual line items of cost, and
    the fixed fee (if any), for each CLIN of the budget.

> **BASIC CONTRACT**:
>
> TOTAL EST. COST
>
> [CLIN]{.underline} [DESCRIPTION]{.underline} [TOTAL EST]{.underline}.
> COST [FIXED FEE]{.underline} [PLUS FIXED FEE]{.underline}
>
> 01 Infrastructure Development \$\_\_\_\_\_\_\_\_\_\_\_\_/1/
> \$\_\_\_\_\_\_\_\_\_\_\_\_ \_\_\_\_\_\_\_\_\_\_\_\_\_\_
>
> 02 Business Development \_\_\_\_\_\_\_\_\_\_\_\_
> \_\_\_\_\_\_\_\_\_\_\_\_\_ \_\_\_\_\_\_\_\_\_\_\_\_\_\_
>
> 03 Workforce Preparation \_\_\_\_\_\_\_\_\_\_\_\_
> \_\_\_\_\_\_\_\_\_\_\_\_\_ \_\_\_\_\_\_\_\_\_\_\_\_\_\_
>
> 04 Governance Improvement \_\_\_\_\_\_\_\_\_\_\_\_
> \_\_\_\_\_\_\_\_\_\_\_\_\_ \_\_\_\_\_\_\_\_\_\_\_\_\_\_
>
> 05 Special Activities Fund \_\_\_\_\_\_\_\_\_\_\_\_/2/
> \_\_\_\_\_\_\_\_\_\_\_\_\_ \_\_\_\_\_\_\_\_\_\_\_\_\_\_
>
> Total Estimated Cost -- Basic Contract \$\_\_\_\_\_\_\_\_\_\_\_\_
>
> Fixed Fee (if any) -- Basic Contract \$\_\_\_\_\_\_\_\_\_\_\_\_
>
> Total Cost Plus Fixed Fee -- Basic Contract \$\_\_\_\_\_\_\_\_\_\_\_\_
>
> **OPTIONAL COMPONENT**:
>
> 06 Former Combatants Reintegration \$\_\_\_\_\_\_\_\_\_\_\_\_\_
> \$\_\_\_\_\_\_\_\_\_\_\_\_ \$\_\_\_\_\_\_\_\_\_\_\_\_\_
>
> Total Estimated Cost -- Basic and Optional Components
> \$\_\_\_\_\_\_\_\_\_\_\_\_
>
> Fixed Fee (if any) -- Basic and Optional Components
> \$\_\_\_\_\_\_\_\_\_\_\_\_
>
> Total Estimated Cost - Basic and Optional Components
> \$\_\_\_\_\_\_\_\_\_\_\_\_
>
> NOTE: /1/ CLIN 01 shall include the plug figure of \$65,000,000 which
> is the maximum amount available for BIPs and RIPs construction
> subcontracts. This amount does not include the associated managerial
> and administrative costs of the prime, which the offeror will
> additionally need to propose for this CLIN.
>
> /2/ CLIN 05 shall include the plug figure of \$18,200,000 which is the
> maximum amount available for the Special Activities Fund. This amount
> does not include the associated managerial and administrative costs of
> the prime, which the offeror will additionally need to propose for
> this CLIN.

b.  The inclusion of a dollar amount for subcontract/s and/or
    consultants in the above budget does not obviate the requirements of
    this contract's clause entitled "Subcontracts (Aug 1998)" (FAR
    52.244-2) or "Personnel Compensation" (see Section H), for prior
    written consent by the Contracting Officer or prior written
    technical approval by the CTO. Nor does the inclusion of any costs
    in the above budget obviate the requirement for prior written
    approval by the Contracting Officer of cost items designated as
    requiring prior approval by any of the terms and conditions of this
    contract, including the applicable cost principles (see contract
    clause entitled "Allowable Cost and Payment" \[FAR 52.216-07\], as
    altered by the contract clause entitled "Alterations in Contract
    \[FAR 52.252-4\], nor does it constitute a determination of
    allowability by the Contracting Officer of any item of cost, unless
    specifically stated elsewhere in this contract.

c.  The Contractor agrees to furnish data which the Contracting Officer
    or the Cognizant Technical Officer (CTO) may request on funds
    expended or costs accrued under this contract in support of the
    budgetary information provided herein.

d.  The initial starting salaries of all long-term and home office
    employees whose salaries will be charged as a direct cost to this
    contract shall be approved in writing by the Contracting Officer in
    advance of being charged to this contract.

## B.5 ESTABLISHMENT OF INDIRECT COSTS RATE

The contract clause entitled "Allowable Cost and Payment" \[FAR
52.216-7\] specifies that the indirect cost rates shall be established
for each of the Contractor's accounting periods which apply to this
contract. Pending establishment of revised provisional, final or revised
predetermined indirect cost rates for each of the Contractor's
accounting periods which will apply to this contract, payment on account
of allowable indirect costs shall be made on the basis of the following
negotiated provisional or predetermined rates applied to the bases which
are set forth below:

Description Rate Base Type Period

> Fringe Benefits \_\_\_\_\_ 1/ 1/ 1/
>
> Overhead \_\_\_\_\_ 2/ 2/ 2/
>
> G & A \_\_\_\_\_ 3/ 3/ 3/
>
> 1/Base of Application:
>
> Type of Rate:
>
> Period :
>
> 2/Base of Application:

Type of Rate:

> Period :
>
> 3/Base of Application:
>
> Type of Rate:
>
> Period :

##  B.6 ADVANCE UNDERSTANDING ON CEILING INDIRECT COST RATES AND FINAL REIMBURSEMENT FOR INDIRECT COSTS

a\. Notwithstanding any other clause of this contract, for each of the
Contractor's accounting periods during the term of this contract, the
parties agree as follows:

1\. The base of allocation for establishment of final or predetermined
fringe benefit rates is \_\_\_\_\_\_\_\_\_\_\_\_\_\_.

2\. The base of allocation for establishment of final or predetermined
overhead rates is \_\_\_\_\_\_\_\_\_\_\_\_\_\_.

3\. The base of allocation for establishment of final or predetermined
G&A rates is \_\_\_\_\_\_\_\_\_\_\_\_\_\_.

b.  The Contractor shall not make any changes in its established method
    of classifying or allocating indirect costs without the prior
    written consent of the Contracting Officer.

c.  Reimbursement for indirect costs shall be in accordance with Section
    B.5 above, but not in excess of the ceiling rates below during the
    base period, and option period if any, of this contract.

> [For Accounting Period Ending]{.underline} [Fringe
> Benefits]{.underline} [Overhead]{.underline} [G&A]{.underline}

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ \_\_\_\_\_\_
\_\_\_\_\_\_ \_\_\_\_\_\_.

d.  The Government shall not be obligated to pay any additional amount
    on account of indirect costs above the ceiling rates established
    herein. If the final indirect cost rates are less than the
    negotiated ceiling rates, the negotiated rates will be reduced to
    conform with the lower rates.

e.  This advance understanding shall not change any monetary ceiling,
    cost limitation, or obligation established in the contract.

f.  Ceiling indirect cost rates for subcontractors shall be in
    accordance with the Contractor's original proposal and/or final
    proposal revision which was accepted by USAID through award of this
    contract.

**B.7 COSTS REIMBURSABLE, FIXED FEE, PAYMENT AND LOGISTIC SUPPORT TO THE
CONTRACTOR**

a.  COSTS REIMBURSABLE

> In accordance with contract clauses entitled "Allowable Cost and
> Payment" (FAR 52.216-7) and "Documentation for Payment" (AIDAR
> 752.7003), the Contractor shall, except to the extent specified in b.
> and c. below, be reimbursed in U.S. Dollars for reasonable, allowable,
> allocable and necessary costs incurred during performance of this
> contract, subject to contract clauses entitled "Limitation of Cost"
> (FAR 52.232-20) and "Limitation of Funds" (FAR 52.232-22), and other
> applicable terms and conditions of this contract.

b.  FIXED FEE

> 1\. In addition to reimbursement of costs pursuant to Section B.7.a.
> above, and if the clause entitled "Fixed Fee" (FAR 52.216-8) is
> applicable to this contract, the Contractor shall, subject to the
> contract clause entitled "Limitation of Funds" (FAR 52.232-22),
> Section B.5 above, and other applicable terms and conditions of this
> contract, be paid the fixed fee set forth in Section B.3.a. of this
> contract.

2.  Payment of the fixed fee, in accordance with the clause FAR 52.216-8
    entitled "Fixed Fee", will apply at the time of each payment to the
    Contractor for allowable dollar costs. The Contractor shall be paid
    a dollar amount for fixed fee which is the same ratio to the total
    fee as the related payment being made for allowable costs is to the
    total estimated cost; provided however that if the Contracting
    Officer determines such payment would result in a percentage of
    fixed fee in excess of the percentage of work the Contractor has
    completed, further payment of fixed fee may be suspended until the
    Contractor has made sufficient progress in the opinion of the
    Contracting Officer, to justify further payment of fixed fee up to
    the agreed ratio; provided further, that after total payments of
    fixed fee reach eighty-five percent (85%) of the total fixed fee,
    the provisions of the clause of this contract entitled "Fixed Fee"
    (FAR 52.216-8) as incorporated herein shall apply.

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c.  PAYMENT

> 1\. Payment shall be made in accordance with contract clauses entitled

a.  "Allowable Cost and Payment" (FAR 52.216-7)

b.  "Prompt Payment" (FAR 52.232-25)

c.  "Electronic Funds Transfer Payment Method" (FAR 52.232-28)

d.  "Documentation for Payment" (AIDAR 752.7003)

and if applicable,

e.  "Fixed Fee" (FAR 52.216-08)

2\. Payment shall be made by the Payment Office designated in Section G
of this contract.

**B.8 FORMER COMBATANTS REINTEGRATION OPTION**

The Statement of Work as identified in Section C of the Contract
includes the "Former Combatants Reintegration Option" which may be
awarded at the unilateral option of the USAID by written notice to the
Contractor no later than October 1, 2010. The option period of
performance will extend through September 30, 2012, if exercised on or
before October 1, 2010. If the Government exercises this option, the
estimated cost is [\$\_\_\_\_\_\_\_\_\_\_\_\_]{.underline} and fixed fee
is [\$\_\_\_\_\_\_\_\_\_\_\_\_]{.underline} for this optional work.

# SECTION C - DESCRIPTION/SPECIFICATIONS/STATEMENT OF WORK

**GROWTH WITH EQUITY IN MINDANAO 3**

**C.1 BACKGROUND**

The southern Philippines island of Mindanao, home to about 22 million
people, has been the site of extensive anti-Government armed conflict
for more than three decades now. The GRP's principal adversaries have
been the Muslim separatist groups -- principally the Moro National
Liberation Front (MNLF) and the Moro Islamic Liberation Front (MILF) -
fighting for independence (or at least substantial autonomy) for the
Muslim minority of Mindanao, and the "Marxist" New Peoples Army (NPA).
The intensity of the conflict with the different adversaries has
fluctuated over time -- sometimes reaching the level of positional
warfare with battalion-sized units engaging each other, and at other
times shrinking to occasional skirmishing with small bands. During the
1970s, the principal conflict was with the Muslim separatist groups;
during the 1980s, the NPA was the principal menace; during the 1990s,
there was a resurgence of the struggle with the Muslim separatist
groups.

In addition to the conflict with these adversaries, the late 1990s saw
the appearance of terrorist organizations like the Abu Sayyaf Group
(ABG) and Jemaah Islamiyah (both of which profess to be jihadist). Both
of these organizations have carried out multiple bombings and
kidnappings where civilians were the main targets.

In addition to the extensive death and destruction the conflicts have
caused, the violence has also effectively precluded the possibility of
substantial economic development progress in most of Mindanao. As a
result of this, Mindanao, by virtually all measures, remains the least
well off area of the Philippines, with lowest levels of per capita
income and education, and highest levels of endemic disease, illiteracy,
unemployment, etc.

The conflict situation in Mindanao may, however, be entering a new
phase, at least with respect to the larger, more organized, and more
"ideological" conflicts. At this point, while fighting still
occasionally flares up between the Armed Forces of the Philippines (AFP)
and elements of the Moro Islamic Liberation Front (MILF), peace talks
between the GRP and the MILF are going on, and both sides express
optimism that a meaningful peace agreement may soon be reached. While
there has been periodic fighting between the AFP and small breakaway
elements of the MNLF, that fighting has been limited to a few
municipalities in only two provinces. For the most part, the ten year
old peace agreement between the GRP and the MNLF has held. While
elements of the terrorist Abu Sayyaf Group (ASG) somehow continue to
elude the AFP forces continually hunting them, and do manage to bring
off occasional bombings, the ASG has suffered heavily from AFP attacks
(which have been supported by U.S. military forces) and does not have
the manpower or resources or freedom of action it had a few years ago.
Elements of the NPA remain active in some areas of eastern Mindanao, but
they remain a small group, with their activities largely confined to
extortion and banditry.

The normal "background noise" violence in Mindanao \-\-- clan warfare
(rido), land and resource disputes, election violence, warlordism,
etc. - continues, but does not appear to be as widespread as it has
sometimes been in the past.

Overall, the amount and intensity of violent conflict is substantially
less than it has been for the past few decades. While there are a number
of reasons for the decline, it is clear that one of the reasons for the
decline has been the substantial increase in government and donor
resources allocated to the conflict-affected areas of Mindanao. These
increased resources -- which have been used to meet needs in
infrastructure, education and health improvement, former combatant
reintegration, and other critical areas - have resulted in improvement
in the quality of life of many of the people in the region, and, perhaps
even more importantly, have led many people to believe that the future
can and will be better than the past. The greater hope for the future
makes people less likely to respond to calls to take up arms against the
government, or other perceived enemies.

There are grounds for optimism that the decline in levels of violent
conflict will continue, although clearly the two-pronged approach that
the Government has been following must continue. Using military and
other security resources, the Government must continue to contain and
eliminate terrorists and bandits. To help assure that the

violence does not again re-surface, the Government must also work to
assure the expansion of economic opportunity for all the people of
Mindanao.

If the resources are available, and if the correct approaches are
followed, it is possible that Mindanao may finally be able to emerge
from the vicious cycle that has ensnared much of it for decades.
Violence and fears of violence have been hindering economic growth and
the emergence of economic opportunity. This absence of opportunity, in
turn, has helped to maintain a situation where many individuals have
been ready to turn to violence and rebellion with the hope that, through
these routes, they would be able to improve their economic prospects.
The GEM-3 Program will be one of the means through which the USG will
assist the GRP and the people of Mindanao to break the vicious cycle.

**C.2 USAID'S ROLE**

USAID has been implementing a major assistance effort in Mindanao since
the early 1990's. Initially, USAID's efforts were concentrated on the
SOCSARGEN (South Cotabato Province, Sarangani Province, and General
Santos City) region. Beginning in 1995, USAID decided that Mindanao
would be the focus of its overall assistance efforts, and expanded its
activities to cover all of Mindanao and the Sulu Archipelago. After the
signing of the Peace Agreement between the GRP and the MNLF in 1996,
USAID intensified assistance efforts in the conflict affected areas of
Mindanao. With the appearance of jihadist terrorist organizations in
Mindanao in 2001-2003, and concerns about Mindanao becoming a recruiting
ground for international terrorist organizations, USAID further
intensified its activities in Mindanao.

While USAID's activities in Mindanao cover the entire island, as
mentioned above, there is a concentration of effort in the conflict
affected areas -- including the area affected by the Muslim separatist
conflict, and, to a lesser extent, the area affected by the NPA
conflict. USAID activities cover all sectors. Major efforts have been
(and continue to be) undertaken in: infrastructure development,
education improvement, health and family planning services improvement,
agribusiness and fisheries development, democracy promotion, former
combatant reintegration, environmental protection and management,
renewable energy development, public administration improvement, as well
as other sectors. All activities carried out by USAID in Mindanao have
the mutually-supportive objectives of consolidating and strengthening
peace in Mindanao, and expanding economic opportunity for the people of
Mindanao.

Various evaluations and assessments carried out over the past several
years confirm that USAID's programs have been effective both in laying
the groundwork for long term economic progress in Mindanao, and also in
helping to consolidate the peace in Mindanao. It has been noted that,
while armed clashes still occur from time to time, there has been almost
no movement of former MNLF combatants who have been the beneficiaries of
USAID programs into the MILF, or into the Abu Sayyaf Group. Even when
the "Misuari Breakaway Group" (MBG), a small splinter group of the MNLF
based in the province of Sulu, came under attack from the AFP in 2005,
and issued a call for support from the rest of the MNLF, they received
basically no response. The fact that this movement of the
battle-hardened and well-armed former MNLF combatants into the ranks of
the MILF, ASG, or MBG did not occur has been a crucial factor in
"keeping the lid on" those problems, and preventing them from becoming
much worse than they have been. The USAID programs are widely credited
with being important factors in preventing an expansion of violence over
the past several years.

**C.3 THE GROWTH WITH EQUITY IN MINDANAO (GEM) PROGRAM**

The GEM Program has been USAID's "flagship" activity in Mindanao since
1996. It is the largest and best known of all the various USAID programs
and activities in Mindanao. It is an "umbrella" program under which
USAID is able to support a wide range of different activities in
Mindanao, all intended to contribute to peace and development in
Mindanao.

Initially conceived as a five-year program which would run from 1996
through 2001, USAID subsequently decided that the GEM Program was such a
useful and effective effort that it would continue the program through
to the end of 2007. (The initial 5-year program has subsequently become
known as the GEM-1 Program, while the GEM Program currently being
implemented, and which runs from 2002 to 2007, is referred to as GEM-2).
At this point, because the GEM Program has continued to be useful and
effective, USAID/Philippines has decided to support a GEM-3 Program. The
proposed GEM-3 Program is described below.

The new GEM-3 Program will have many of the attributes and follow many
of the same practices that have contributed to the success of the GEM-1
and GEM-2 Programs. As was the case with the earlier Programs, it will
have a substantial "on the ground" presence throughout Mindanao, and
thus will be in position to learn about emerging opportunities and
emerging problems that may be addressed by GEM-3. It will continue to be
an "umbrella" program, charged with carrying out activities across a
range of technical fields -- thereby allowing it to learn about
different problems from a variety of perspectives, and to intervene in
addressing problems with a variety of tools. While maintaining very
close relationships with and receiving guidance and oversight from key
GRP and ARMM Government agencies, it will not be integrated into any
specific GRP agency. (Thus, it will have the flexibility of intervening
and providing assistance in a much wider arena than would be the case if
it was integrated into a specific GRP agency). Very importantly, it will
employ a "Special Activities Fund," a tool which will allow it quickly
to provide resources needed for a host of worthwhile organizations for a
host of worthwhile purposes. It will continue to operate a
"communications and information" program that will regularly put out
press releases and news articles providing "good news" about Mindanao
and USAID activities in Mindanao. It will continue to provide support
services (security advisories, trip planning, and media/press relations)
to other USAID programs and projects in Mindanao, and the U.S. Embassy.

GEM-3 will build upon and evolve from the positive impacts achieved by
the GEM-1 and GEM-2 Programs. Some of the activities carried out under
GEM-3 will be similar to activities carried out under GEM-2. GEM-3 will
also, however, include several activities not carried out to any
significant extent under GEM-2. GEM-3 will remain focused on the
conflict affected areas of Mindanao -- both the area affected by the
Muslim separatist conflict, and the area affected by the NPA conflict.
Activities to be carried out have been selected on the basis of: a)
strategic analyses carried out by USAID staff, GRP and ARMM Government
analysts, and various consultants who have attempted to identify sectors
where the need is great, and where limited donor inputs may produce
significant multiplier effects, both immediately and in the future; b)
the extent to which they can serve to demonstrate to the people of the
conflict affected areas that improvement in their lives is possible, and
is possible fairly rapidly; c) the extent to which they can demonstrate
to the people in the conflict affected areas that their widespread
perception that their concerns and needs are systematically ignored by
the GRP is no longer true; and d) confidence that the activities will be
successful.

**C.4 STATEMENT OF WORK**

As indicated above, as was the case with its predecessors, GEM-3 is an
umbrella program under which a range of different types of activities
will be carried out. Activities to be carried out by the Contractor
under this contract are broadly broken down between:

-   Program Components consisting of \--

1\. Infrastructure Development

2\. Business Development

3\. Workforce Preparation

4\. Governance Improvement

5\. Other Activities

6\. Option: Former Combatant Reintegration

-   Support Activities consisting of \--

1\. Communications and Information Service

2\. Facilitation Services

3\. Special Activities Fund.

**a. PROGRAM COMPONENTS**

The Contractor shall, in accordance with the terms and conditions of
this Contract, furnish the personnel with the requisite ability and
skills, facilities, equipment, materials and services (except as
furnished by the Government) and otherwise do all things necessary to
perform in an efficient and effective manner to accomplish the work
requirements, as follows:

1.  **Infrastructure Development**

> The hundreds of infrastructure projects constructed in the conflict
> affected areas during the GEM-2 Program have clearly been the most
> visible and perhaps the most widely appreciated efforts undertaken
> during GEM-2. The projects have well served their dual purposes of
> both contributing to consolidation of peace and making possible the
> expansion of economic opportunity and improved access to social
> services. The infrastructure has contributed to consolidation of peace
> by demonstrating to the people in the conflict affected areas that the
> widespread perception that the GRP and the donors were not concerned
> about their well-being was no longer accurate.
>
> Because of its obvious success in contributing toward both peace and
> development goals, infrastructure development was the largest single
> component of the multi-component GEM-2 Program. About 800 small-scale
> projects (referred to as Community Infrastructure Projects -- CIPs),
> and 40 larger-scale projects (referred to as Mid-Scale Infrastructure
> Projects -- MSIPs) were constructed under GEM-2 in the
> conflict-affected areas of Mindanao. As approximately half of the
> roughly 10,000 barangays (villages) in Mindanao are considered to be
> "conflict affected," this meant that USAID was able to construct an
> infrastructure projects in almost one-fifth of all conflict-affected
> barangays.
>
> Infrastructure development will also be the largest single component
> of the GEM-3 Program.
>
> **(a) BIPs and RIPs**
>
> As was the case during GEM-2, USAID will also construct both small and
> mid-scale infrastructure projects under GEM-3. However, to avoid some
> misunderstandings that ensued because of how those projects were
> designated under GEM-2, they will now be referred to as Barangay-level
> Infrastructure Projects (BIPs), and Regional Impact Projects (RIPs).
>
> Construction of BIPs and RIPs will continue to have the dual
> objectives of: 1. strengthening peace in Mindanao by demonstrating to
> people in the conflict affected areas that the GRP and the donors are
> prepared to make investments aimed at expanding opportunity and
> improving the quality of life in their areas; and 2. helping lay the
> groundwork for expansion of economic opportunity in the areas.
>
> The types of BIPs and RIPs constructed under GEM-3 will be the same as
> those constructed under GEM-2; e.g. farm-to-market roads, footbridges,
> river landings, boat landings, piers, warehouses, solar dryers,
> passenger waiting sheds, jeepney turn-arounds, marketing
> centers/facilities, box culverts, irrigation canals, causeways,
> community centers, water systems, ports, bridges, major roads, etc. As
> was the case under GEM-2, BIPs will generally have construction costs
> of between \$5,000 and \$50,000; while RIPs will have construction
> costs of \$50,000 and higher. (For the most part, construction cost of
> RIPs will be less than \$1 million each. Some, however, may cost up to
> \$4 million).
>
> The principal anticipated beneficiaries of BIPs will be the people of
> the barangays in which they are located. RIPs, however, will be
> intended to have a substantially larger number of beneficiaries. While
> both BIPs and RIPs are intended to serve the peace-consolidation
> objective of demonstrating that a better life is possible, given the
> substantially greater investment that will go into RIPs (vis a vis
> BIPs), the "visibility" criteria of RIPs will be substantially higher
> than will be the case for BIPs.
>
> Except in rare circumstances, project design work for BIPs will be
> carried out internally by GEM-3 contractor staff. Except in rare
> circumstances, project design work for RIPs will be sub-contracted to
> specialized firms. In all cases, construction supervision work for
> both BIPs and RIPs will be carried out by GEM-3 contractor staff.
>
> The Contractor shall be responsible for planning, managing, and
> executing the infrastructure activities, including technical oversight
> of the construction work, quality control, and measurement of
> completed work. The Contractor will be fully responsible for the
> quality of work carried out on all infrastructure
>
> projects, and for the timely and cost-effective accomplishment of the
> work, both subcontracted and self-performed.
>
> []{.mark}
>
> The Contractor shall submit monthly reports to USAID which will
> describe and summarize performance under each construction project.
> The monthly reports will integrate reports received from the
> subcontractors carrying out the construction projects. The monthly
> reports will report on technical performance, schedule, cost, and
> identify significant issues at a level agreed to by USAID. Monthly
> reports should be received in USAID no later than ten (10) working
> days after the end of the reporting month.
>
> In addition to infrastructure design and construction supervision
> tasks, the Contractor will also design and implement a
> post-construction monitoring program for all completed infrastructure
> projects which will be intended to identify those situations where
> facilities are not being properly maintained, or appropriately used --
> so that corrective actions can be taken.
>
> []{.mark}
>
> As was the case with GEM-2, virtually all construction work for BIPs
> and RIPs will be sub-contracted to authorized local firms, usually to
> Mindanao-based firms, but, when necessary, to firms based in Manila or
> elsewhere in the Philippines. To as great an extent as possible, in
> order to reduce administrative burdens, GEM-3 will attempt to
> "package" the construction work for several BIPs into one
> sub-contract. The Contractor shall prepare construction bid packages
> for fixed price competition and solicitations; evaluate, award and
> manage subcontracts; and inspect and accept subcontractor
> construction.
>
> []{.mark}
>
> All BIPs and RIPs will be carried out on a cost-sharing basis with the
> principal beneficiaries contributing 20-50% of the costs of the
> projects. In general, beneficiaries will be expected to provide a
> contribution equaling 25% of the costs of a new or upgraded
> infrastructure facility. With USAID concurrence, contributions greater
> than 25% may be required in the case of facility rehabilitation
> efforts, where the need for rehabilitation is substantially due to
> poor quality of maintenance provided for the facility. Contributions
> may be either in cash or in kind, but, in all cases, should offset
> expenditures which would otherwise have been made by USAID for the
> facility's construction. Contributions should reflect actual cost to
> the beneficiaries that they would not have incurred in the absence of
> the project being undertaken. (For example, the value of the
> right-of-way for a road project would not be acceptable in the case of
> an upgrade of an existing road -- as the LGU presumably already owns
> that right of way and does not have to procure it).
>
> In most cases, in order to avoid situations where, for various
> reasons, the beneficiary does not provide all agreed upon
> contributions on a timely basis, the contractor will attempt to assure
> that needed counterpart contributions are "in hand" before beginning
> substantial construction work on a project. Mutual obligations of the
> GEM-3 Program and the principal beneficiaries of the BIPs and RIPs
> with respect to cost-sharing, facility use and maintenance, etc., will
> be detailed in Memoranda of Understanding, or similar documents,
> signed by authorized representatives of GEM-3 and the principal
> beneficiaries prior to initiation of construction.
>
> Construction standards for both BIPs and RIPs will be in accordance
> with GRP or international standards.
>
> USAID will have the right to review and concur with all proposed BIPs
> and RIPs. However, neither USAID's review of the deliverables nor the
> decision or concurrence of USAID to proceed with construction or
> acceptance of the deliverables shall impose or result in any
> responsibility on USAID for the adequacy, quality or completeness of
> the deliverables. The Contractor shall remain solely responsible for
> the adequacy, quality and completeness of the work and construction of
> the BIPS and RIPS under this contract.
>
> Construction shall not begin under the contract until the Contractor
> receives approval or comment on the following deliverables: (1)
> Quality Assurance Plan; (2) Environmental Plan, and (3) Security Plan.
>
> The Contractor shall provide the above deliverables for infrastructure
> development to USAID for review and comment or approval. The
> Contractor shall certify to USAID when construction of a BIP or RIP
> has been completed.
>
> **(b) BIP-Specific Approaches**
>
> BIPs to be constructed shall be identified through processes involving
> extensive consultation with: LGU leaders (including LGUs at
> provincial, municipal, and barangay levels); GRP agencies (especially
> MEDCo); business support organizations like chambers of commerce and
> producer associations, etc.; MNLF leaders; leadership of the
> Bangsamoro Development Agency (BDA); community groups; other donors;
> etc. USAID must provide concurrence with all proposed BIPs.
>
> In the great majority of cases, LGUs (municipal, barangay or
> provincial governments) will be the beneficiaries of the BIPs, and
> will be responsible for counterpart contributions. In some cases,
> cooperatives or producer associations may be the beneficiaries.
>
> All BIPs will be constructed on a cost-sharing basis with
> beneficiaries of the projects. Normally, beneficiaries of the projects
> will be expected to contribute about 25% of the costs of the projects,
> although, on occasion, it may be appropriate or necessary to seek
> greater or lesser contributions. Contributions of the beneficiaries to
> construction of the projects can be either in cash (preferably) or
> in-kind. In the case of in-kind contributions, only those
> contributions that actually reflect cash outlays of the beneficiary,
> and/or which will offset or substitute for cash outlays from the GEM-3
> Program can be counted. In order to avoid situations where a
> counterpart LGU or cooperative initially agrees to provide a specified
> counterpart contribution, but later fails to deliver the contribution,
> the contractor will usually require the counterpart contribution to be
> provided in advance of any significant GEM expenditure on the project.
>
> In general, it is clear that, in the case of BIPs, the dual peace and
> development objectives of the GEM-3 Program will best be served by
> construction of as many projects as possible. As an ideal, USAID would
> like to attain a situation where most of the approximately 5000
> barangays in the conflict-affected areas of Mindanao become the site
> of a BIP or RIP which can contribute to a better life for the people
> of the barangay. (This, of course, is just a "rule of thumb." In fact,
> many barangays are so remote and have such limited populations as to
> make it impractical to make them sites for infrastructure projects;
> conversely, some barangays are so placed and have such sizable
> populations as to warrant construction of more than one project).
> Given that approximately 1000 barangays are already benefiting from
> USAID-financed infrastructure projects constructed under GEM-2, and
> given that approximately 1500 barangays are benefiting or will benefit
> from infrastructure projects constructed under World Bank and other
> donor-financed efforts, the GEM-3 contractor shall undertake the
> construction of an estimated 1000 BIPs during the life of the
> contract.
>
> **(c) RIP-Specific Approaches**
>
> Regional Impact Projects (RIPs) to be carried out under GEM-3 may
> sometimes be somewhat different than the RIPs carried out under GEM-2.
> The principal differences are that, under GEM-3:

1.  Additional efforts will be made to identify and undertake projects
    which will have a "transformational" effect on the provinces in
    which they are undertaken. To a greater extent than was the case
    under GEM-2, USAID will be seeking to support projects which could
    catalyze the expansion of existing business and industry or even
    make possible the emergence of new business and industry. This will
    mean that, in many cases, packages of mutually-supporting
    infrastructure projects will be undertaken. (Although the different
    projects in the packages may not necessarily be undertaken by the
    same construction firms under the same sub-contract).

2.  While a large majority of the RIPs to be undertaken during GEM-3
    will cost well less than \$1 million, several of the projects could
    cost more than that -- perhaps up to \$4 million.

> It is anticipated that the GEM-3 contractor shall undertake the
> construction of 15 to 20 RIPs during the life of the contract.
>
> Some examples of "transformational" RIPs that may be undertaken under
> GEM-3 include:

-   Central Mindanao/Liguasan Marsh Transport Network Project -- a
    multi-element effort involving construction of both a series of boat
    landings and several roads that serve the area abutting the Liguasan
    Marsh. This project would be important both for expanding economic
    opportunity and availability of social services for people living in
    the area, plus making possible the emergence of an eco-tourism
    industry for the area.

-   Sulu Circumferential Road - actually an effort to develop the three
    sections of the Sulu Circumferential Road (Jolo -- Bato bato
    section, Silangkan-Parang section, and Parang-Maimbung section) that
    are most critical to economic expansion.

-   Basilan Circumferential Road -- concreting of the approximately 20
    kilometers of the road which are not covered by the Saudi Fund.

-   Bongao Port-Chinese Pier Bridge and Road (Tawi-tawi) -- this effort
    would link the key economic centers of Bongao.

-   Marawi City Roads/Ports -- this would include an upgrade to the
    principal port serving the Marawi City residents and fishermen in
    Lake Lanao; a boat landing along Datu Sadansalan Avenue; and
    concreting about 4 kilometers of road leading to the newly-built bus
    terminal.

-   Tawi-tawi Port Upgrades -- this would include upgrades to up to five
    feeder or tertiary ports which serve principal population centers
    other than Bongao (e.g., Kuala Baru Port, Bato-bato Port, Ubol Port,
    Tungbankkaw Port, etc.).

-   Sulu Secondary Port Upgrades -- this would involve upgrading Parang
    Port (on Jolo Island), Lugus Port (Lugus Island), and Pangutaran
    Port (Pangaturan Island), all of which serve sizable population
    centers.

-   Basilan Bridges -- this would involve construction of two new
    bridges, and reconstruction/upgrade of four existing bridges, all on
    the Basilan Circumferential Road.

-   Post-harvest and Cold Chain Infrastructure Development -- this would
    be done on a partnership basis with key LGUs, BSOs, and private
    firms. VhT facilities (for mango treatment), Cool/cold storage
    facilities, and other storage and warehousing facilities needed to
    allow major expansion of out-shipment of vegetables/fruit/marine
    products will be established in strategic areas.

-   Power Connector Projects -- this would be done on a partnership
    basis with LGUs and Rural Electric Co-ops (and other power
    distributors). Essentially, USAID will assist in extending the main
    electric power grid to reach 3-10 non-electrified communities, where
    such extension is viable and feasible given the size of the new
    markets which will be served versus the costs associated with
    extending the grid.

> Note that this listing of possible RIPs is provided partially for
> illustrative purposes. While the Contractor will no doubt be directed
> by USAID to undertake most of the projects mentioned, it is not
> certain that all will be undertaken. Also, additional RIPS, including
> additional "transformational infrastructure" projects and packages of
> projects may be identified by USAID or the Contractor during the
> course of implementation of GEM-3, and the Contractor may be directed
> to undertake their construction.
>
> In most cases, the beneficiary of the RIPs will be municipalities,
> provinces, or the ARMM Government itself.

2.  **Business Development Activities**

> While continued improvement of the peace and order situation in
> Mindanao is a sine qua non for significant and sustained expansion of
> job-creating private investment in Mindanao, USAID will continue to
> implement activities aimed at laying the groundwork that will make it
> more likely that the significant private investment will occur when
> and where the peace and order situation allows this. This "groundwork"
> includes the infrastructure development, workforce preparation, and
> governance improvement activities being implemented under the GEM
> Program, as well as the education, health, governance, and
> environmental management improvement activities implemented under
> several other USAID programs. In addition to these general business
> environment strengthening activities, the groundwork will also include
> several activities to be implemented by GEM-3 which are specifically
> intended to address some key deficiencies and to explore and take
> advantage of possible opportunities. Some of these activities are
> continuations or modifications of activities carried out under GEM-2,
> while others are innovations specific to GEM-3.
>
> Specific "Business Development" activities to be carried out under
> GEM-3 include:

-   further implementation of a (modified) Business Support Organization
    (BSO) Development Effort

-   further implementation of a (modified) Targeted Commodity Expansion
    Program (TCEP)

-   A concentrated effort to attract or facilitate initial/exploratory
    investments in especially promising sectors.

> **(a) Business Support Organization (BSO) Development** \-\-- Under
> GEM-1 and GEM-2, USAID supported a long-term effort to bring about the
> establishment and effective functioning of a network of BSOs,
> representing all key business sectors, which could provide needed
> services to their member firms and to consumers. This effort has been
> largely successful. At this point, chambers of commerce throughout
> Mindanao are regularly and effectively assuring that the views of the
> business sector are heard in their communities; producer associations
> representing and providing services to vegetable growers, fruit
> growers, seaweed producers, the tuna fishing industry, etc. are in
> place and functioning; island-wide or region-wide organizations (e.g.,
> the Mindanao Business Council, the ARMM Business Council, the Muslim
> Business Forum) likewise are providing valuable services. To a
> substantial extent, all these organizations are now "financially
> viable," that is they are attracting/generating/earning sufficient
> funds to allow for their continued functioning.
>
> Under GEM-3, the Contractor shall design and implement various
> activities aimed at increasing the effectiveness of selected BSOs,
> but, except in a few situations, the support will focus less on
> institutional development and capacity building for the BSOs, and more
> on supporting specific activities undertaken by the BSOs. In the case
> of producer associations, it will concentrate more on helping the BSOs
> in their market development efforts -- by increasing competitiveness
> through improvements in production practices, packaging, product
> transport, and sales procedures. (Some fifteen previously assisted
> producer associations will be selected and targeted for this
> assistance). In the case of chambers of commerce, the support will be
> focused on assisting selected chambers to become more effective
> advocates of improved LGU performance in key fields (e.g., revenue
> generation, corruption control, etc.), and to play more significant
> roles in support of important community improvement efforts, e.g.,
> assisting local schools to offer higher quality education; assisting
> in environment "clean-up" efforts; etc.. (Some six previously assisted
> chambers will be selected and targeted for this assistance).
>
> The Contractor shall design and implement activities under which
> twenty (20) BSOs which have received support from GEM over the past
> decade will continue to receive the limited activity or event-specific
> support discussed above. (The Mindanao-wide or area-wide BSOs
> (Mindanao Business Council, ARMM Business Council, Muslim Business
> Forum, etc. will be included among these 20 BSOs). Lists of supported
> BSOs will be provided upon contract award. Six additional chambers,
> e.g., those in the municipalities of Pikit, Upi, Parang, Carmen, etc.,
> which have not yet received USAID support shall also receive support
> under GEM-3.
>
> Following appropriate analyses and negotiations, the Contractor will
> provide institutional development support to one or more tourism
> development-related BSOs, to one or more aquaculture-related BSOs, and
>
> to business-outsourcing related BSOs. (Support for a total of five (5)
> BSOs servicing these sectors is anticipated). Support will be provided
> only to BSOs which show promise of being able to make a significant
> contribution to the development of their respective sector. Level of
> support provided will be dependent on the actual needs of the BSO and
> an assessment of its potential contribution to the development of the
> sector.
>
> **(b) Targeted Commodity Expansion Program (TCEP)**. The TCEP was
> initiated under GEM-1 and continued under GEM-2. Initially, the
> principal objective of the TCEP was to bring about the introduction
> and/or significant expansion of production and marketing of selected
> commodities not widely or traditionally grown in Mindanao, and which
> seemed to hold promise of producing better returns for large numbers
> of small farmers than the returns they were receiving from the crops
> and commodities they traditionally produced. That effort obtained
> considerable success, with major expansion of production of mangoes
> and other fruit, peanuts, seaweed, marine products, vegetables, and
> hybrid corn. Under GEM-2, the TCEP strategy shifted to encouraging and
> facilitating export and out-shipment of these products from Mindanao
> to other areas of the Philippines, with the expectation that the
> demands and requirements of these external markets would encourage
> sizable numbers of producers to adopt those changes necessary to
> compete in a global arena -- and therefore would move away from the
> low-yield, poor-quality, and marginally profitable approaches that
> have historically characterized agriculture and aquaculture production
> in Mindanao.
>
> Under GEM-2, there were four components of the TCEP Program -- a China
> Export Component, the High Value Horticulture (fruit and vegetables
> component), the Sustainable Aquaculture and Fisheries Effort (SAFE)
> Component, and a LEAP Graduate component (which focused on assisting
> selected former MNLF combatants who had previously "graduated" from
> the LEAP Program to move into production of higher value crops).
> Production for markets external to Mindanao characterized all the
> components.
>
> The GEM-2 Program achieved substantial success in the effort to help
> small farmers penetrate the targeted external markets (e.g., exports
> to China of products targeted by the TCEP program quadrupled;
> shipments of vegetables to non-Mindanao markets in the Philippines
> (e.g., Manila, Cebu, and Iloilo) have similarly expanded.
>
> Under GEM-3 TCEP, the Contractor shall focus on further and
> dramatically expanding exports to China and other export markets. A
> principal strategy will be to continue to take advantage of the
> expertise of existing exporters, including multi-national corporations
> who already have experience with these markets, and have plans for
> expanding their sales in these markets. These organizations have the
> resources to explore and capture foreign markets - including
> logistics, market knowledge, local agents, etc. After gaining a
> foothold in these markets with the high-quality products they produce
> on their own, they often seek to expand their shipments to those
> markets, initially by increasing their own production, and
> subsequently by entering into contract growing-type arrangements with
> small farmers. Because this system does produce substantial benefits
> to both the large and small producers, GEM-3 will continue to help
> large producers/exporters to obtain greater market share in the
> Philippines, and new export markets in China, Japan, Malaysia, Korea,
> the Middle East, etc., and will continue to help these firms establish
> mutually profitable working arrangements with large numbers of small
> farmers.
>
> In addition to the products which received focus under GEM-2 (fresh
> and processed fruit and vegetables, tuna, carageenan, etc.) the GEM-3
> contractor will pay substantial attention to export of high value
> marine products like grouper, abalone, and sea cucumber. As was the
> case under GEM-2, we anticipate and expect that production and
> out-shipment/export of targeted products under GEM-3 (measured both by
> volume and by value) will triple during the life of GEM-3
> substantially as a result of efforts made by the GEM-3 contractor.
>
> Specific activities to be carried out to bring about this sizable
> expansion of production and out-shipment/export of specific targeted
> commodities shall be identified and implemented by the Contractor
> during the course of implementation of GEM-3. These activities will
> likely include:
>
> \(1\) Providing cost-sharing for efforts of producers and exporters to
> learn about specific export markets and develop needed contacts in
> those markets. Conversely, GEM-3 may also share certain costs of
> potential buyers of Mindanao products to help them learn about
> Mindanao production and processing capabilities. (Under GEM-2, USAID
> supported several market-exploration visits to regional markets. In
> these cases, typically, the producers/exporters were responsible for
> the costs associated with their own participation, USAID assumed some
> of the "common costs" of the visits, e.g., cost of booth rentals at
> trade fairs, cost of interpreters, etc. We expect similar arrangements
> under GEM-3).
>
> \(2\) Helping to bring about a sizable expansion of needed
> warehousing, cold storage and VHT facilities. Depending on the
> commodity and the location, this could entail GEM's cost-sharing the
> cost of establishment of these facilities with LGUs, producer
> associations, etc.
>
> \(3\) Helping assure the availability of critically needed
> transportation infrastructure in critical areas. This may involve
> GEM-3's undertaking construction of the infrastructure on its own;
> possibly cost-sharing the construction with anticipated principal
> beneficiaries of the infrastructure; or simply making the need for the
> infrastructure plainly apparent to other donors, the GRP, and relevant
> LGUs. (Note that, while the need for infrastructure facilities
> identified in this context would be done by GEM-3 "business
> development" staff, USAID's assumption is that the infrastructure
> projects would be constructed under the BIP or RIP Infrastructure
> component).

(4) Providing or arranging for needed technical experts who can provide
    information and advice to major producers/exporters and producer
    associations on: market requirements, new technologies, marketing
    strategies, etc.

> **(c) Attracting Initial/Exploratory Investments in Key Industries
> \-\--** As indicated above, USAID is very much aware that an
> acceptable "peace and order" situation is a prerequisite to
> substantial job-creating private sector investment in Mindanao and the
> Sulu Archipelago. USAID is also aware that a significant expansion of
> employment opportunities is an important factor in assuring the
> emergence and the maintenance of an acceptable peace and order
> situation.
>
> While those areas of Mindanao that have been relatively conflict-free
> for the past several years (e.g., Davao City, Cagayan de Oro, etc.)
> have seen encouraging levels of private investment and concomitant
> employment growth over the past few years, there has been essentially
> no investment in new business creation or expansion of existing
> business in most areas of the island. This absence of investment
> reflects the widely understood reality that business people will not
> invest in areas where they may become victims of kidnapping and
> extortion, or where they or their employees or their property may be
> caught in the cross-fire when warring groups start fighting.
>
> It seems likely that, absent special incentives or special
> arrangements, there will not be a significant expansion of
> job-creating investment in the conflict affected areas until business
> people perceive that the danger has abated, and that it will be
> possible to operate safely and profitably in those areas. This
> probably means that there will not be any substantial investment until
> one or two years goes by without any kidnappings, bombings, political
> assassinations, or battles occurring in those areas.
>
> Given the "Catch-22" situation that the conflict affected areas of
> Mindanao and the Sulu Archipelago find themselves in -- i.e., a
> situation where substantial job creation is a prerequisite to
> improving the peace and order situation, but where the investment
> needed to create those jobs is not appearing because the peace and
> order situation is perceived as being too perilous -- the GEM-3
> Contractor will conceptualize and undertake several business promotion
> activities in the region which, under normal circumstances, USAID
> might hesitate to undertake because of concerns about the possible
> delay that might occur in obtaining payoffs from these activities, or
> possible distortion of the market. Perhaps a program under which GEM-3
> will provide some limited cost-sharing of initial investments may be
> attempted. The GEM-3 Contractor shall attempt to "jump-start"
> investment in the few sectors which seem to have particular promise
> for the area -- including tourism, business process out-sourcing, and
> agri-business processing. The Contractor will also attempt to
> facilitate the expansion of investment by responsible mining firms.
> (Although in the case of the mining industry, it is not anticipated
> that support in the nature of challenge grants, or the like,
>
> would be called for). Depending on events over the near term future,
> it is possible that other sectors may also be selected for special
> promotion.
>
> A brief discussion of the different promising sectors and approaches
> that may be followed to encourage initial or exploratory investments
> in those sectors follows.

(1) **Tourism**. Two types of tourism seem to hold the most immediate
    promise for the conflict affected areas of Mindanao and the Sulu
    Archipelago -- beach tourism in the islands of the Sulu Archipelago;
    and "cultural-religious-ecological" tourism. Many people believe
    that the islands of the Sulu Archipelago are among the most
    beautiful spots on Earth. In the absence of peace and order
    problems, they would probably already be attracting investors eager
    to put up hotels, resorts, scuba-diving centers, etc. The contractor
    shall undertake several activities aimed at identifying particularly
    attractive tourism investment opportunities in the area, and making
    potential investors aware of the potential opportunities. The
    Contractor shall also work with the GRP and LGUs in the area to
    identify and help put in place some of the infrastructure needed to
    make the tourism investments feasible, and to make sure that
    adequate security is provided at and near the sites to be promoted.
    With respect to "cultural-religious-ecological" tourism, the
    Contractor shall work with the GRP and relevant LGUs, and with
    tourism promotion associations to make potential visitors aware of
    key sites in Mindanao and the Sulu Archipelago which might be of
    particular interest to Muslim visitors, e.g., "the Islamic City of
    Marawi," Simunul Island in Tawi-tawi (site of the first mosque ever
    to be constructed in the Philippines), etc. The Contractor shall
    also seek ways to promote tourism investments in various areas of
    special environmental interest, i.e., the Liguasan marsh.

(2) **Business Process Outsourcing (BPO).** The potential for this
    sector lies in the facts that demand for English-speaking Filipinos
    to work in this field continues to grow, while the supply of
    qualified English-speakers in the major cities of the Philippines
    seems to be running low, and BPO firms are finding it more and more
    difficult to find all the people they need. While English
    proficiency is not as strong in most of the conflict affected areas
    of Mindanao as it is in the major cities on Luzon and the Visayan
    islands, there are sufficient numbers of English speakers available
    to make possible the establishment and functioning of at least a few
    BPO firms in some areas, e.g., Zamboanga and Cotabato City. The key
    to persuading BPO firms to set up in those areas seems to lie in
    making them aware: 1) that there are enough English speakers around
    to make a successful operation possible; 2) that the
    telecommunications and other support services needed for operation
    are available; and 3) that their security can be guaranteed. The
    Contractor shall design and mount various efforts to make BPO firms
    aware of opportunities in Mindanao, and persuade them to make the
    necessary investments. Special efforts will be taken to ensure that
    both men and women have equal access to these business
    opportunities.

> []{.mark}

(3) **Mining.** The fact that Mindanao holds enormous deposits of a
    number of valuable minerals (copper, nickel, gold, silver, coal,
    etc.) is well known to the international mining industry and, with
    the recent ruling by the Supreme Court that foreign mining firms may
    operate in the country, a number of mining companies have started
    operating, while many others are already exploring possible
    investments. A large number of NGOs, significant elements of the
    Catholic Church, and other interested parties, however, remain
    opposed to the presence and the operations of the mining companies
    -- mostly because of concerns about environmental despoliation that
    they associate with mining - and would prefer that the mining
    companies not be permitted to operate. Given this situation, GEM-3's
    role will not be to attract investments in mining (they are coming
    anyway, with or without an investment promotion effort), but,
    rather, to help make sure that the mining firms operate in such a
    manner as to help assure that their presence and investments remain
    welcome and remain legal. This essentially means that, when
    appropriate, the Contractor shall work with the mining firms to help
    them identify opportunities to demonstrate that they are good
    "corporate citizens" of Mindanao, and, possibly, to carry out
    various community projects which will underline that fact.

    2.  **Workforce Preparation Activities**

> The success record of schools in the conflict affected areas in
> preparing children to be able to effectively and successfully compete
> in an increasingly globalized world is poor, and seems to be getting
> worse as time passes. The quality of education offered by the public
> school system in the Philippines as a whole has been declining by
> almost every measure for more than twenty years now. There are massive
> shortages of classrooms, qualified teachers, desks and chairs,
> textbooks, audio-visual materials, and virtually everything else that
> is needed for a quality education. Over-crowding of classrooms is
> standard -- with class sizes averaging about 80 students per class.
> The poor quality of the education provided is being reflected in the
> results achieved by Filipino students in Asia-wide tests of
> achievement in different areas (e.g., math and science), with Filipino
> children now scoring almost at the bottom, and with test scores
> continuing on a downward trajectory. The decline in English-language
> proficiency of younger Filipinos as compared to their parents and
> grandparents has been widely noted, and is an increasing source of
> concern.
>
> While the problems affect the entire Philippines education system, the
> problems clearly are worse in Mindanao than in the rest of the
> country, and, within Mindanao, are worse in the conflict affected
> areas.
>
> The decline in the quality of education offered is rooted in the fact
> that education has been grossly under-funded for almost thirty years
> now. As the newly appointed Secretary of Education noted in a recent
> speech, while the average GRP budget for education has grown by an
> average annual rate of 2% over past decades, the average number of
> school-age children has annually grown by 2.7%. Accordingly, per
> capita expenditure per child in the Philippines has been declining
> annually for decades, and, at present, per capita expenditure per
> child is among the lowest in Asia.
>
> USAID, through its Education programs and the GEM Program, is not
> going to be able to solve the problems of the education system in the
> Philippines. However, there are some interventions that have the
> possibility of substantially increasing the ability of students
> graduating from schools in Mindanao and the Sulu Archipelago to
> effectively compete with their peers in the rest of the country and in
> the Asia region. These include: continuing and expanding the program
> initiated under GEM-2 to introduce computer and internet education
> into schools in Mindanao; continuing and expanding the effort
> initiated under GEM-2 to encourage and assist parent groups to take
> steps to improve the quality of education offered in their children's
> schools; initiating a program aimed at helping assure that most
> students graduating from colleges (and, possibly, selected high
> schools) in Mindanao have English language skills sufficient to
> qualify them for employment in the tourism, business process
> outsourcing, maritime, health care, etc. industries; initiating a
> program which could place approximately 100 graduating college
> students per year into internships in leading Filipino and
> multinational firms (thereby significantly enhancing their knowledge
> of how business operates, and increasing prospects of their obtaining
> employment in the firms); initiating scholarship award programs aimed
> at encouraging and assisting students to stay in school and/or pursue
> particular courses of study; etc. The Contractor shall be responsible
> for designing and/or implementing these interventions, and ensure that
> there are equal opportunities for both men and women.
>
> Some of these possible interventions are as follows.
>
> **(a) Computer and Internet Education.** Through its "Computer
> Literacy and Internet Connection" **(CLIC)** Project, the GEM-2
> Program has introduced computer and internet education into more than
> 500 high schools in the ARMM and other conflict affected areas of
> Mindanao and the Sulu Archipelago. Under the CLIC, schools are
> provided with up to ten computers, the hardware needed to access the
> internet (either satellite or microwave), various peripherals and
> software programs, and the teacher training needed to assure good
> utilization and maintenance of the facilities**.** The Contractor
> shall continue the implementation of the CLIC effort -- with the
> balance of high schools in the ARMM and CAAM still needing CLIC
> facilities provided with them. (This would be about 200 high schools).
> Note that, under GEM-2, the cost per school for all computers,
> internet hardware, software, peripherals, teacher training, etc.
> needed came to about \$8,000.
>
> In those situations where high schools which are already beneficiaries
> of the CLIC Program need additional computers in order to allow
> students adequate access to computers, some additional
>
> computers may be provided. USAID estimates that about 200 already
> "CLIC'ed" high schools may require an additional 2-4 computers.
>
> In addition, under GEM-3, the contractor shall also undertake to
> provide internet connections to the approximately 200 high schools in
> the conflict-affected areas which have received or will be receiving
> computers (but no internet connections) from GRP-implemented programs.
>
> The Contractor shall also design and implement an effort under which
> computers and internet connection will be provided to approximately
> 300 elementary schools (selected primarily on the basis of size of
> student body, and location). Facilities provided under this effort (to
> be referred to as Teacher-CLIC) will be used primarily as a means of
> helping teachers to find and download resource materials and
> background material, etc. useful for teaching their subjects and
> upgrading their own skills. The Contractor shall also undertake
> efforts to assure that at least one or two teachers in each school
> develop enough expertise in the use of the internet for research and
> other purposes as to be able to provide guidance and assistance to
> other teachers at their schools.
>
> **(b) Assisting Parents Groups (PTAs) to Improve Education.** As a
> means of encouraging parents to make a greater financial contribution
> to the education of their children, and also as a means of enhancing
> the quality of education offered in schools in the ARMM and other
> conflict affected areas of Mindanao and the Sulu Archipelago, a
> project was initiated under GEM-2 under which USAID agreed to match --
> on a 50-50 basis -- all funds raised by the Parent-Teacher-Community
> Associations (PTCAs) which were to be used for improving the quality
> of education in their schools. The project was referred to as the
> Education Activity Support Effort (EASE). Through this project,
> several hundred schools established school libraries, science labs,
> audio-visual rooms, home economics rooms, etc. Some PTCAs also
> increased the number of computers available for the students through
> this effort. The average amount was quite modest -- usually less than
> \$1,000.00 per school. This effort shall be continued during GEM-3,
> with the contractor mounting a program to provide assistance to
> approximately 150 - 250 schools per year. A total of about 1,000
> schools is targeted.
>
> **(c)** **Employment Qualifying English Language Skills.** Under this
> effort, an attempt will be made to assure that most students
> graduating from colleges in Mindanao (particularly those graduating
> from the less prestigious and less well-off institutions) have
> adequate English language skills to qualify them for jobs in those
> industries which require English speakers, e.g. tourism, maritime,
> nursing, business process outsourcing, etc. The Contractor shall
> assess the English-language capability of students entering and
> graduating from colleges throughout Mindanao, and, following this
> assessment, work with at least 10 colleges throughout Mindanao to
> assist them to modify or augment existing English language instruction
> programs as needed to produce the desired results, i.e., graduates who
> have English language skills adequate to qualify them for employment
> in industries requiring English language ability. Equal opportunities
> will be provided to both men and women.
>
> **(d) Scholarships.** In an attempt to help increase the likelihood
> that young people in the conflict affected areas: a) have access to
> particularly promising fields of employment; and b) are able to take
> advantage of training opportunities made available to them, the
> Contractor shall identify suitable recipients and provide needed
> financial support to up to 150 children per year to help enable them
> to continue their education or pursue specialized training. This could
> be at either the secondary or tertiary level. Depending on the type of
> education/training being pursued, scholarship awards could be as small
> as \$100 per year (i.e., enough to pay costs of school uniforms,
> transportation expenses, etc.) to as high as several thousand dollars
> per year (i.e., enough to pay cost of specialized training needed for
> employment in BPO or maritime industries, etc.). Education/training
> opportunities supported will be in the Philippines, with the bulk of
> the opportunities being in Mindanao. The Contractor will propose the
> types of education and training that he believes should be supported;
> the reasons why he believes it should be supported. The Contractor
> should also provide estimates of the dollar amount of scholarship
> support required for each type of training/education opportunity he
> proposes.
>
> **(e) Business Internships.** Under GEM-2, USAID supported a
> successful congressional internship project which, annually, saw 40-50
> recent graduates from Mindanao colleges placed into four-month long
> internships in the Philippines House of Representatives, with the
> objective being to provide them with exposure to how public policy is
> made. Under GEM-3, in addition to the continuation of the
> congressional internship program (to be discussed in greater detail
> under "Governance Improvement Activities"), under GEM-3, USAID will
> support the implementation of a business internship project focused on
> assisting recent graduates from colleges in the ARMM and other
> conflict affected areas of Mindanao and the Sulu Archipelago to
> understand more about how business operates. Hopefully, the internship
> project will also result in increased employment opportunities for the
> interns, and their fellow graduates. The Contractor shall attempt to
> identify about twenty major Filipino or multinational firms, and
> negotiate arrangements under which those firms will annually provide
> rewarding temporary (three to five months) jobs for 1-4 interns each.
> The target is that some 25 recent graduates have internship
> opportunities each year. GEM-3 will under-write most of the costs of
> the internships, although the Contractor will attempt to have the host
> firms meet a reasonable share of the costs of maintaining their
> interns. Detailed descriptions of arrangements for the internships,
> and agreements made between GEM-3 and the participating firms, shall
> be spelled out in Memoranda of Understanding, or similar documents.
>
> The Contractor shall carry out detailed "feasibility studies" for the
> interventions discussed above, plus other possible interventions
> mentioned, immediately after initiation of the GEM-3 Program, and will
> present proposals to USAID for concurrence.

3.  **Governance Improvement Activities**

> Governance improvement activities carried out under GEM-2 were focused
> on assisting the Government of the ARMM to address some of the key
> administrative and management problems it has faced since the creation
> of the ARMM. These included: ARMM Government relations with the
> national government; ARMM Government relations with donor countries
> and donor agencies; ARMM Government staffing issues; ARMM Government
> procurement procedures; etc. As a result of technical and policy
> guidance assistance provided under GEM-2, and of recommendations made
> by technical consultants, progress was made toward ameliorating some
> of the recurring problems the ARMM faced in these areas.
>
> Notwithstanding the assistance provided under GEM-2 (and also
> notwithstanding the public administration assistance provided to the
> ARMM Government and ARMM LGUs under other USAID programs and by other
> donors), governance problems in the ARMM still remain severe. The ARMM
> Government remains overstaffed; there are perennial and recurring
> problems with accounting for funds; there are major and continuing
> problems with shortage of funds for critically important public
> services; etc.
>
> The major problems faced by the ARMM Government and its inability to
> effectively address and resolve the problems, have had and continue to
> have major repercussions. The ineffectiveness of the ARMM is often
> mentioned by the MILF as one of the reasons why it rejects mere
> "autonomy," and presses for independence from the Philippines, or some
> other relationship arrangement which will be short of full
> independence, but entail greater freedom of action than it perceives
> to be available under autonomy. The ineffectiveness is one of the
> reasons why many surveys indicate that large percentages of the people
> living in the ARMM would vote to have their provinces break away from
> the ARMM if separation was legally possible.
>
> The Contractor shall attempt to address (or at least begin to address)
> some of the basic underlying problems that contribute to the
> ineffectiveness of the ARMM Government, and its constituent LGUs.
>
> **(a) Revenue Availability of ARMM LGUs \-\--**The principal
> governance problem the contractor will attempt to address is the
> perennial major funding shortage of the ARMM Government and LGUs in
> the ARMM. There are two basic underlying reasons for the funding
> shortages - 1. Notwithstanding that LGUs in the ARMM have legal
> authority to impose and collect a range of local taxes (including
> property taxes and business taxes), virtually none of the LGUs in the
> ARMM collect any significant amounts of local taxes; and 2) the ARMM
> Government and LGUs in the ARMM are essentially 100% dependent on
>
> "block grants" from the national government for all their capital and
> recurrent revenue needs -- and the national government, given its own
> fiscal difficulties, is not in position to provide anywhere near the
> actual amounts needed by the LGUs for their annual revenue needs.
>
> Because of its own fiscal difficulties, it is unlikely that the
> national government will be able anytime in the near to medium future
> to significantly increase the amount of funds it annually provides to
> the ARMM Government and ARMM LGUs. Accordingly, if any progress is to
> be made in resolving the perennial funding shortage problems of the
> ARMM and ARMM LGUs, it is going to have to come from improved revenue
> collection performance of the regional and local governments.
>
> The GEM-3 contractor shall identify ten provinces or municipalities in
> the ARMM which (based on past experience, and on statements and
> assurances of the LGU leaders) appear most likely to be able and
> willing to successfully participate in the effort, and then work with
> those LGUs to assist them in taking steps which can result in sizable
> and continuing annual increases in locally collected revenues. While
> this is unlikely to happen during the period of implementation of
> GEM-3, a desirable end is that these LGUs ultimately reach a position
> wherein at least 50% of their annual recurrent expenditures are being
> met by locally collected revenues.
>
> The Contractor's approach shall be as follows: 1\] when so requested
> by an LGU, and when assistance appears to hold promise of an
> acceptable return in terms of increased LGU revenue collection,
> provide or arrange for limited technical assistance to be provided to
> the LGUs to assist them in establishing the legal basis for, and then
> planning and implementing revenue collection efforts, and; 2\] develop
> an "incentive package" under which the LGUs will receive material
> benefits (i.e. additional infrastructure projects) from GEM-3 as they
> reach and exceed annual revenue increase targets jointly agreed upon
> by the LGUs and GEM-3. (The GEM-3 technical assistance Contractor
> shall be charged with designing and obtaining USAID concurrence for
> the proposed "incentive package" shortly after GEM-3 commences. The
> incentive package could utilize a matching approach, or some other
> approach developed and proposed by the Contractor). After successful
> experience with some of the initial LGUs who participate in the
> effort, the program will be expanded to additional LGUs in the ARMM
> and other conflict affected areas. Note that, as, during the
> implementation of this effort, the Contractor will be focusing on only
> 10 of the hundreds of LGUs in the ARMM, the effort can and should be
> considered as a "pilot" effort, with lessons learned during the effort
> eventually replicable and replicated in scores of other LGUs.
>
> **(b) Additional Governance Improvement Activities** \-\-- Some
> additional activities that may be undertaken under GEM-3 include:
> efforts to clarify land ownership and land titling in both urban
> (primarily) and rural areas (as a means of trying to assure that real
> property can be used as collateral for bank loans); efforts to reduce
> and control public corruption; efforts to establish and implement
> rational systems for assigning addresses to houses and buildings (as a
> means of facilitating identification of individuals, facilitating
> postal deliveries, collecting taxes, etc.); and other activities that
> may be identified and approved by USAID during the course of
> implementation of GEM-3.
>
> **(c) Congressional Internship Program** \-\--The Contractor shall
> also manage the continuation of the "Congressional Internship Program"
> for recent graduates of colleges and universities in the ARMM and
> other conflict affected areas of Mindanao. As was the case under
> GEM-2, interns will be selected on the basis of their prospective
> ability to serve as private and public sector leaders in the future,
> and their ability effectively to articulate and represent the
> aspirations and thinking of people in historically under-served areas
> of Mindanao. Some two groups of individuals will be selected each year
> to serve in the Philippines House of Representatives for 4-5 month
> periods each, during which time they will have opportunities to learn
> about how public policy is made. Each group will be composed of about
> 35 men and women. The GEM-3 Contractor shall: establish criteria for
> participation in the program; advertise the availability of the
> internships; set up and participate in selection committees; arrange
> for appropriate assignments of the interns in the House of
> Representatives; establish systems for determining and paying
> necessary costs for the program (including allowances for the
> interns); etc.

4.  **Other Activities**

> The Contractor shall be alert to additional problems and opportunities
> that may emerge during the implementation period, and be prepared to
> allocate staff and other resources to assist Mindanao organizations
> and individuals to address those problems or take advantage of those
> opportunities. Among these "Other Activities" that may be addressed
> under GEM-3 are matters such as: resolution of various "feuds" among
> groups in the conflict-affected areas that have their origin in
> disputes over land or other resources; agrarian reform and ancestral
> domain issues; improved and more efficient shipping services and port
> operations; establishment/improvement of free trade zones/export
> processing zones/etc.; utilization of various "conflict management"
> techniques and processes as a means of attaining and consolidating
> peace in the region; establishment of "emergency employment" schemes
> and mechanisms; establishment of "centers of excellence" for research
> and other support services needed for production/export of key
> commodities produced in the conflict affected areas; establishing
> "e-Centers" in various communities which can be useful to people in
> the community in availing of public services, ascertaining market
> prices for various commodities, etc.; assisting LGUs and other
> organizations to take advantage of assistance resources potentially
> available through programs of other donors; expansion of internet
> availability in the conflict-affected areas; expansion of
> telecommunications services in the conflict affected areas; assistance
> in the modification of the ARMM Organic Act and similar key pieces of
> legislation; etc.
>
> Exploration as to possible GEM-3 involvement in these matters shall be
> undertaken by the contractor during the implementation of the GEM-3
> Program.

5.  **Former Combatant Reintegration Option**

> The principal USAID activity aimed at assisting former combatants
> reintegrate and become peaceful and productive members of society has
> been the Livelihood Enhancement and Peace (LEAP) effort. The LEAP
> activity was initiated shortly after the signing of the final peace
> agreement between the GRP and the MNLF in 1996. LEAP was a major
> component of both the GEM-1 and GEM-2 Programs. Under LEAP, some
> 28,000 former MNLF combatants (most of who had been fighting for some
> 20 years or more, were illiterate, and were largely without skills
> other than military skills) were provided the assistance they needed
> in order to be able to make a reasonable living for themselves and
> their families. For the most part, this meant that they were assisted
> to become small-scale commercial farmers of hybrid corn, rice, or
> seaweed. In the case of those former combatants who were to produce
> corn or rice, they were each provided access to two hectares of land
> (arranged by the MNLF), and then USAID provided all the production
> inputs (essentially, seeds and fertilizers) they needed to initiate
> production. In the case of former combatants who were to produce
> seaweed, they were each provided a lease (issued by their
> municipalities) to ¼ hectare of near-shore waters suitable for seaweed
> production, and then USAID provided them the needed production inputs
> (ropes, floats, planting material, etc.). The former combatants were
> also provided all the training and technical support, and marketing
> assistance they required. They were assisted through two production
> cycles, and then were "graduated" from the Program.
>
> Under another element of the LEAP Program, the communities where the
> former combatants lived were provided with pre/post harvest facilities
> (i.e., warehouses, solar dryers, corn shellers, power tillers, etc.)
> that would be helpful in making their efforts more productive and
> profitable.
>
> Several independent assessments of the LEAP Program concluded that the
> Program had been extraordinarily successful, and that its dual
> objective - of helping former MNLF combatants develop means to make a
> living on a continuing basis, and to therefore be less susceptible to
> appeals to again take up arms against the Government -- had been fully
> realized.
>
> As a means of helping assure that former MNLF combatants continue
> being able to make a reasonable living for themselves and their
> families, the Contractor shall make particular efforts under the
> Business Development Activities Component of GEM-3 to include former
> MNLF combatants in the various activities implemented under that
> Component. The GEM-3 Contractor shall also continue to provide
> cooperatives/communities of former MNLF combatants with pre/post
> harvest facilities needed to make their efforts more productive and
> profitable. (Approximately 50 cooperatives/communities will benefit).
>
> Both as an inducement to move toward signing a peace agreement, and as
> a potential reward for doing so, the USG has frequently publicly
> indicated its readiness to provide LEAP assistance to MILF combatants
> as soon as a genuine peace agreement is agreed to by the GRP and the
> MILF. The MILF, through its affiliated organization, the Bangsamoro
> Development Agency (BDA), has indicated its interest in having its
> combatants participate in and benefit from the LEAP activity.
>
> At this point, as indicated in previous sections of this document,
> while peace negotiations are ongoing, and while both sides issue
> periodic statements indicating that they are getting close to an
> Agreement, no final peace agreement has yet been reached between the
> GRP and the MILF. As such, the implementation of a LEAP activity
> focused on MILF combatants, as discussed and described herein, will
> await the signing of a peace agreement.
>
> MILF-LEAP. As and when an acceptable final peace agreement is reached
> between the MILF and the GRP, USAID will direct the contractor to
> implement a LEAP effort focused on the MILF. The MILF-LEAP effort will
> be similar to the LEAP effort which had been focused on the MNLF. The
> underlying objective of the MILF-LEAP effort will be to help assure
> that former MILF combatants have the means of making a reasonable
> living for themselves and their families on a continuing basis, and
> therefore will be less likely to again take up arms against the GRP,
> or to perpetrate criminal activities. The principal means of
> accomplishing this, again, will be through assisting the former
> combatants to become small-scale commercial farmers. It is anticipated
> that corn, rice, and seaweed will remain as the principal crops to be
> grown by the former combatants, but some additional commodities may
> also be selected, provided they make sense given the circumstances.
> (Note that production of corn, rice, and seaweed has significant
> advantages for the LEAP effort - 1. they are short gestation crops,
> and a harvest is obtainable after only a few months; 2. input
> suppliers are available throughout the region; 3. ready markets exist
> for the products; 4. they are relatively simple crops to grow, and
> even beginning farmers can quickly learn to successfully farm them.
> Any additional crop/commodity selected for production under LEAP must
> also have these characteristics).
>
> As was the case with the MNLF-LEAP effort, former combatants selected
> for participation in the program shall be provided all the production
> inputs, training, technical support, and marketing assistance they
> require in order to get started. In the case of land crops like corn
> and rice, production inputs and other assistance shall be provided for
> two production cycles. In the case of seaweed, production inputs shall
> be provided only once, while training and technical support will be
> provided for a period of about six months. After the period of LEAP
> assistance, participants will be expected to use proceeds from their
> harvests to purchase the next round of inputs.
>
> As was the case with the MNLF-LEAP effort, production inputs shall be
> provided directly by LEAP staff into the hands of the ultimate
> beneficiaries. Production training shall be provided either by LEAP
> staff themselves, or by technicians and experts identified by LEAP
> staff whose services are arranged by LEAP staff (e.g., Municipal
> Agricultural Officers, Provincial Agricultural Officers, etc.), or
> both. Opportunities will be provided to increase the participation of
> MILF women, as appropriate.
>
> In most cases, in order to facilitate input distribution and the
> efficient provision of training and needed technical support,
> beneficiaries shall be grouped into "clusters" of between 30 and 100
> individuals all of whom live near each other, and all of whose
> farm-lands are located in reasonable proximity to each other.
>
> Oversight of the MILF-LEAP effort will be provided by a Management
> Committee (ManCom), which will be chaired by the Bangsamoro
> Development Agency (BDA), and which will include representatives from
> MEDCo, the MILF, and USAID. The GEM-3 Contractor will serve as
> secretariat to the ManCom. Principal responsibilities of the ManCom
> will include: explaining the LEAP effort, its objectives, policies,
> rules, etc. to the MILF and its leaders with an eye to assuring full
> cooperation of the MILF in the implementation of the effort; making
> decisions and recommendations as to provincial/regional allocation of
> "beneficiary slots" for different LEAP training cycles; helping assure
> that all former combatants selected to participate in the LEAP effort
> are fully eligible and qualified for participation; as and when
> necessary, taking steps to assure that MILF leadership at regional,
> provincial, municipal, and lower levels fully adhere to LEAP policies
> and rules (particularly with respect to use of production inputs
> provided to former combatants under the LEAP effort)
>
> and assure that appropriate sanctions are levied against MILF leaders
> and members who misappropriate LEAP resources or otherwise violate
> LEAP rules and policies.
>
> Note that if, for some reason, the BDA is not in position to play an
> effective role with respect to the implementation of an MILF-LEAP
> Program, some other appropriate organization will be selected to carry
> out the task.
>
> Actual selection of former combatant beneficiaries of the MILF-LEAP
> effort will be the responsibility of Implementation Committees
> (ImpComs) established at regional or provincial levels. The ImpComs
> will be chaired by local MILF or BDA leaders, and include
> representatives from GEM-LEAP. Individuals selected for participation
> in the MILF-LEAP effort must meet the following criteria: (1) they
> must have been active combatants at the time the peace agreement is
> signed; (2) they must need the assistance offered through the
> MILF-LEAP effort. (Individuals who are already gainfully employed, or
> who already own or operate successful farms or other businesses, or
> who have (or belong to families which have) substantial levels of
> resources; etc. are not eligible to be MILF-LEAP beneficiaries.
>
> Most commonly heard estimates are that the MILF currently has
> some15,000 combatants. Of these, USAID's estimate is that perhaps
> 10,000 would require MILF-LEAP assistance to become peaceful and
> productive members of society. Both of these figures, however, are
> only estimates. It is possible that the number of former MILF
> combatants requiring LEAP assistance may be substantially higher or
> lower than the 10,000 figure mentioned herein. As and when a more
> definitive number is established, the MILF-LEAP effort will be
> modified accordingly.
>
> USAID's estimate is that it will require two-three years to provide
> LEAP assistance to the approximately 10,000 former combatants
> currently estimated to need the assistance.
>
> As was the case with the MNLF-LEAP effort, the MILF-LEAP effort will
> also include a program under which pre/post harvest facilities are
> made available to cooperatives substantially composed of former MILF
> combatants who have "graduated" from the LEAP effort, or to
> communities which include substantial numbers of the LEAP graduates.
> Approximately 200 cooperatives and/or communities will benefit.

a.  **SUPPORT ACTIVITIES**

> The Contractor shall, in accordance with the terms and conditions of
> this Contract, furnish the personnel with the requisite ability and
> skills, facilities, equipment, materials and services (except as
> furnished by the Government) and otherwise do all things necessary to
> perform in an efficient and effective manner to accomplish the work
> requirements, as follows:
>
> **1. Communications and Information**
>
> As was demonstrated during GEM-1 and GEM-2, an effective
> communications/information effort can greatly enhance prospects for
> attainment of Program objectives. The continuing stream of
> GEM-generated news articles about positive developments in Mindanao,
> including positive developments related to GEM activities, has played
> a useful role in countering the impression created by most news
> reports that all of Mindanao is a battleground -- and thus has helped
> keep business people interested in doing business in Mindanao, and has
> helped keep tourists and visitors coming to at least some parts of
> Mindanao. News articles prepared and placed by GEM have also played a
> major role in generating public support for adoption of government
> policies more conducive to sustained economic progress of Mindanao
> (e.g., increases in infrastructure budget, support for establishment
> of "ro-ro" facilities, etc.).
>
> A similar Communications and Information program shall be carried out
> by the contractor. The Contractor shall produce at least ten news
> articles each month for placement in both the Manila and Mindanao
> press, and at least five articles per year for placement in
> international media. The Communications/PR unit shall also arrange
> 10-20 radio/TV appearances per year for GEM staff, at which the GEM
> staff will have the opportunity to discuss activities being carried
> out under the GEM-3 Program, in conjunction with GRP officials, and
> thereby help generate greater public understanding and support for the
> activities. The unit shall also prepare press
>
> releases as necessary in conjunction with various GEM-3 (or other
> USAID-program or USG-related) "events" such as MOU signings,
> infrastructure hand-over ceremonies, visits to GEM-3 sites of
> distinguished guests, etc. (It is estimated that 40-60 press releases
> will be required each year). The Communications and Information Unit
> shall also help arrange one or two briefings per year for various
> press/media groups in Manila and Mindanao, at which they will attempt
> to assure that the audience obtains a better understanding of the
> situation in Mindanao, and therefore will be better able to accurately
> report the situation in Mindanao.
>
> The Communications and Information unit shall continue to produce
> promotional and informational materials about Mindanao, and doing
> business in Mindanao, that will be useful to individuals doing
> business in Mindanao, or contemplating doing so. These materials shall
> include pamphlets, brochures, videos, cd-roms, and maps. Some of these
> will provide information on Mindanao as a whole; others will provide
> information on specific areas of Mindanao, specific business sectors,
> etc. The contractor shall develop and maintain a comprehensive and
> user-friendly website containing key information about the GEM Program
> and about Mindanao.
>
> **2. Facilitation Services**
>
> Because needs in Mindanao are so great, and because peace and
> development in Mindanao is so important to the entire Philippines, and
> to the region, Mindanao will continue to be a major focus of USAID
> activities for several years to come. USAID will be implementing
> projects and program in Mindanao in all sectors -- health and family
> planning, governance improvement, environmental management and
> protection, education improvement, and economic growth.
>
> Because GEM-3 will be the USAID activity with the greatest "on the
> ground" presence in Mindanao, and the conflict affected areas of
> Mindanao, the contractor shall provide a range of support services for
> other USAID projects and activities, and for the U.S. Embassy. These
> services will include:

i.  Arranging introductions for staff of other USAID activities to
    public officials at all levels, and to leadership of various
    significant groups (cooperatives, private firms, trade and producer
    associations, the MNLF, chambers of commerce, etc.);

ii. Providing information on past and current experience working with
    various communities and organizations, and providing suggestions as
    to appropriateness of those communities and organizations as "target
    areas" or "partners" for other USAID activities.

iii. Providing information on "doing business" in different areas of
     Mindanao (e.g., availability and cost of office space, office
     personnel, security services, telecommunications and internet
     facilities, transportation facilities, housing, etc.).

iv. Providing information and guidance regarding the security situation
    in various areas. (Note -- in these matters, GEM staff will rely on
    information obtained from USAID and the Regional Security Office, as
    well as from police, military, and other sources and contacts
    throughout Mindanao). GEM will produce "Security Reports" on at
    least a bi-weekly basis, and make these reports available to staff
    of other USAID-supported projects and activities in Mindanao, other
    donors, etc. These reports will provide information and guidance on:
    trouble-spots to avoid, possible emerging threats, etc.

v.  Providing assistance in obtaining services of communications/public
    relations specialists, and writers who may be needed to prepare
    press releases, news articles about their activities, etc., and to
    assist in having the articles placed in appropriate media. As
    requested, and as appropriate, arranging press coverage for events
    associated with other USAID projects or Embassy-related events. As
    requested and appropriate, GEM may also directly provide these
    services to other projects using its own staff.

vi. Helping to organize various ceremonies and related "events"
    sponsored by other USAID projects/activities (e.g., MOU signings,
    activity launchings, turn-over ceremonies, etc.) which can help
    create greater awareness of the activities and facilitate attainment
    of the project/activity objectives.

vii. Helping to organize visits to the various USAID-supported
     activities for visiting USAID and State Department officials, and
     other distinguished visitors who wish to familiarize themselves
     with Mindanao and USAID activities in Mindanao. Assistance could be
     in terms of: arranging appropriate security for the visits; setting
     up appointments with key/knowledgeable individuals; making hotel
     bookings; etc.

> **3. Special Activities Fund**
>
> In order to facilitate implementation of the various efforts and
> activities discussed above, GEM-3 shall include a Special Activities
> Fund (SAF), to be managed by the contractor. The SAF will be used for
> the following principal purposes:
>
> \(1\) **Partner Support -** to meet certain expenses incurred by
> organizations GEM is working or collaborating with, for the conduct of
> activities which are supportive of the attainment of GEM-3's peace and
> development objectives;
>
> \(2\) **General Support -** to meet costs of various activities
> carried out by GEM-3 itself (e.g., studies, conferences,
> consultancies, travel, publications, etc.); and
>
> \(3\) **Component Support -** to meet some of the costs of various
> programs and activities to be designed and implemented by GEM-3 during
> the course of implementation of the GEM-3 Program (e.g., costs of
> "incentive" programs aimed at encouraging and rewarding LGUs for
> effective actions to increase local revenue generation; cost of
> incentive programs aimed at encouraging private firms to initiate
> initial or exploratory investments in key industries in targeted
> areas; costs of scholarships to be provided annually; costs of
> internship programs; etc.
>
> While, on occasion, GEM-3 may provide financial support to cooperating
> organizations, this will not be the customary procedure. For the most
> part, funds will not be transferred to cooperating organizations.
> Rather, the GEM-3 contractor shall procure the goods or services
> required and make them available to the cooperating organizations. SAF
> monies may be used to meet costs associated with the following
> activities:

(a) Production and printing of promotional pamphlets, brochures, videos,
    cd-roms, etc. (Note -- this is subject to regulations and procedures
    specified in the FAA provisions regarding Communications Products).

(b) Preparation of special studies, assessments, feasibility studies,
    evaluations, surveys, etc.

(c) Preparation for and conduct of conferences, seminars, workshops,
    training programs, study tours, turn-over ceremonies, etc. This
    could include costs of venue and facilities, booth rentals, signage,
    honoraria for resource persons when necessary, conference materials,
    travel of special guests and resource persons, etc.

(d) Support for "institutional development" of key BSOs and other
    organizations, and for implementation of certain activities of these
    BSOs and other organizations.

(e) Limited commodity and technical support for cooperating
    organizations.

(f) Costs of domestic and international travel of key partners and
    cooperating individuals, and GEM staff, when necessary to enable
    their participation in activities and events important for the
    attainment of GEM-3 objectives.

(g) Costs associated with receiving and briefing potential investors,
    and visiting dignitaries.

> As indicated above, the SAF shall also be used to meet costs
> associated with design and implementation of GEM-3 activities which
> are proposed by USAID or the GEM-3 Contractor during the course of
> implementation
>
> of GEM-3. This would include some of the key activities undertaken in
> the "Governance Improvement", "Business Development" and "Other
> Activities" components.
>
> All proposed expenditures under the SAF shall be approved in advance,
> in writing, by USAID (i.e., by the CTO for the GEM-3 contract), and by
> other members of the Steering Committee for the GEM-3 Program as may
> be appropriate. Appropriate cost-sharing arrangements with recipients
> of SAF support shall be negotiated by the contractor, and approved in
> advance by USAID. It is anticipated that cost sharing shall
> characterize virtually all SAF expenditures.

**C.5. SUMMARY OF PERFORMANCE TARGETS AND EXPECTED RESULTS**

Under the GEM-3 Program, the Contractor shall be responsible for
delivery of the following:

a\. Identifying and obtaining necessary concurrences for approximately
1000 projects in 1000 barangays under the **Barangay Infrastructure
Program**, and then arranging for the projects to be constructed. (USAID
anticipates that approximately 125 BIPs will be constructed during the
first year of the contract, 250 BIPs will be constructed per year during
years 2 to 4, and 125 during year 5). In the case of BIPs, it is
expected that GEM-3 staff will conduct all necessary project design
work.

b.  Identifying and obtaining necessary concurrences for approximately
    15-20 "transformational**" Regional Impact** (**Infrastructure)
    Projects** (or "packages of projects) and then arranging for the
    projects to be constructed. (USAID anticipates that 3 RIPs will be
    initiated during the first year of the contract, and 5 RIPs will be
    initiated per year during years 2-4 of the contract). In the case of
    RIPs, it is expected that facility design work will be
    sub-contracted to specialized firms.

c.  Identifying **five BSOs working in tourism, BPO, and aquaculture
    sectors** which have good potential for being able to contribute
    substantially to the growth of their sectors, and providing them
    with the institutional development support (financial,
    organizational, technical) needed to enable them to become
    financially viable organizations providing useful services to firms
    in their sectors. USAID anticipates that all five beneficiary BSOs
    will have been identified and support initiated by the end of year 2
    of the contract. Amounts of financing to be provided to recipient
    BSOs should not be budgeted for, as those funds will be provided
    from the GEM-3 Special Activities Fund, based substantially upon
    recommendations made by the GEM-3 contractor during implementation
    of the GEM-3 Program.

d\. Identifying at least **six chambers of commerce in conflict affected
areas which have not previously received GEM assistance** (e.g.,
chambers in Upi, Carmen, Pikit, Parang, etc.), and providing them the
institutional development support they need to become effective
advocates of business growth in their areas. (USAID anticipates that all
beneficiary chambers will have been selected, and support initiated by
the end of year 2 of the contract). Amounts of financing to be provided
for recipient chambers of commerce should not be budgeted for, as those
funds will be provided from the GEM-3 Special Activities Fund, based
substantially upon recommendations made by the GEM-3 contractor during
implementation of the GEM-3 Program.

e\. Selecting **fifteen (15) producer associations which previously
received institutional development support from USAID** (but which have
since "graduated" from the need for institutional development support)
and assisting those producer associations to increase the
competitiveness of the products of their member firms by providing them
information and training in improved production practices, packaging,
product transport, sales procedures, etc. (USAID anticipates that at
least 5 beneficiary producer associations will have been selected and
support initiated by the end of the first year of the contract, with an
additional 5 beneficiary chambers selected/assisted by the end of year 2
and year 3). Amounts of financing to be provided for recipient BSOs
should not be budgeted for, as those funds will be provided from the
GEM-3 Special Activities Fund, based substantially upon recommendations
made by the GEM-3 contractor during implementation of the GEM-3 Program.

f\. Selecting six **chambers of commerce which previously received
institutional development support from GEM**, and providing assistance
needed to assist them to become more effective in their efforts to
advocate improved LGU performance in revenue generation, corruption
control, etc., and in assisting local schools to improve the quality of
education offered. (USAID anticipates that 3 beneficiary chambers will
be selected and

assistance initiated by the end of the first year of the contract, with
2 additional chambers selected/assisted per year in years 2 and 3 of the
contract). Amounts of financing to be provided to recipient chambers
should not be budgeted for, as those funds will be provided from the
GEM-3 Special Activities Fund, based substantially upon recommendations
made by the GEM-3 contractor during implementation of the GEM-3 Program.

g\. Selecting and working with approximately twenty (20**) BSOs to help
them plan and implement specific "events"** (e.g., annual membership
conferences) important to the growth of business in their areas or
sectors. (USAID anticipates that at least 5-10 BSOs will receive support
during the initial year of the contract, with the balance of the
beneficiary BSOs receiving initial support during years 2 and 3 of the
contract). Amounts of financial support to be provided to recipient BSOs
for the "events" should not be budgeted for as those funds will be
provided from the GEM-3 Special Activities Fund, based substantially on
recommendations made by the GEM-3 contractor during implementation of
the GEM-3 Program.

h\. Identifying suitable firms, producer or trade associations,
cooperatives, individuals, GRP agencies, etc., and working with them to
bring about at least a tripling (measured both by volume and by value)
of export or out-shipment to Philippine markets outside of Mindanao of
**GEM-3 "targeted commodities**" like fresh and processed fruit and
vegetables, tuna, carageenan, and high-value marine products (abalone,
grouper, sea cucumber, etc.). Assistance could include: cost-sharing for
market familiarization/market penetrations efforts focused on regional
markets; providing or arranging for needed technical experts who could
provide information and advice on market requirements, new technologies,
marketing strategies, etc. The target expansion is to be attained by the
end of the contract. Amounts of financial support that may be provided
to recipient firms/producer-trade associations/cooperatives, etc. to
assist them to bring about the expansion of export and out-shipment
should not be budgeted for as these funds will be provided from the
GEM-3 Special Activities Fund, based substantially on recommendations
made by the GEM-3 contractor during implementation of the GEM-3 Program.

i\. Providing analyses and advocacy helpful in bringing about a sizable
**expansion of warehousing, cold storage, and VHT** **facilities**
needed for continued expansion of export or out-shipment of vegetables,
fruit, and marine products. Depending on the commodity and the location,
this could entail GEM's cost-sharing the cost of establishment of these
facilities with LGUs, producer associations, etc. Amounts of financial
support that may be provided to LGUs or other organizations to assist in
the establishment of these facilities should be estimated, but should
not be budgeted for, as these funds will be provided from the GEM-3
Special Activities Fund, based substantially on recommendations from the
GEM-3 contractor.

j\. Taking actions necessary to help assure that: at least one sizable
**tourist resort** will be established in a previously conflict affected
area; and at least one **BPO firm** will have established a facility in
the conflict affected area. (USAID anticipates that these targets will
be attained by the end of year 3 of the contract. As and when the
initial targets are attained, the contractor will prepare and submit
proposals to USAID laying out how best to capitalize on the initial
successes in order to further expand tourism and BPO investments in the
targeted areas). Amounts of financial support that may be provided to
firms as incentives or cost-sharing in order to encourage or accelerate
key investments should not be budgeted for, as these funds will be
provided from the GEM-3 Special Activities Fund, based substantially on
recommendations made by the GEM-3 contractor during implementation of
the GEM-3 Program.

k\. As a means of helping assure that a responsible **mining industry**
can take root in Mindanao, and provide critically needed employment for
people in Mindanao, the contractor will assist at least 5 major
international mining firms to establish and implement continuing
outreach efforts and "community projects" in their areas to help
demonstrate the firms' "good corporate citizenship." (USAID expects that
working arrangements will be established with at least 3 mining firms by
the end of year two of the contract, with additional firms being added
in year 3).

l\. Selecting up to 200 suitable high schools in the conflict-affected
areas, and working with school administrations and PTCAs to introduce
computer and internet education in those schools. **(CLIC Program).**
USAID anticipates that 50 high schools will be identified and assisted
during the first year of the contract, with an additional 75 high
schools per year selected and assisted during years 2 and 3 of the
contract. (Note that, during GEM-2, per school cost for providing all
needed computer and internet connection hardware and software,
peripherals, and needed

teacher training, averaged about \$8,000 per school, with the computers
costing about \$450.00 each, and internet connections, either satellite
dish or microwave relay, costing between \$1500 and \$2500 each). The
contractor will also select some 200 high schools which previously
received "CLIC packages" under GEM-2, but which, because of enrollment
growth or other factors, are not able to provide adequate access for
their students to the computers, and will provide those schools with an
**additional 2-4 computers** -- with an eye to helping assure that
students have enough computer time.

m\. Selecting 200 high schools in conflict affected areas which received
computers from GRP or other donor programs, but which did not receive
**internet connections**, and providing assistance needed to connect
their computers to the internet. (USAID anticipates that approximately
50 high schools will be selected and assisted by the end of year one of
the contract, with the balance selected and assisted during years 2 and
3).

n\. Selecting 300 suitable elementary schools in conflict areas and
providing each of them with two computers, internet connection, and
related teacher training -- so that the schools' teachers will be able
to use the facilities to find and download resource materials,
background material, etc. useful for teaching their subjects and
upgrading their own skills. (USAID anticipates that 50 suitable schools
will be selected for participation in this "**Teacher-CLIC" program**,
and assisted during the first year of the contract, with an additional
125 schools per year assisted during years 2-3).

o\. Identifying, selecting, and working with **Parent-Teacher-Community
Associations (PTCAs)** of 1000 elementary or high schools in the
conflict area in efforts to develop school/education improvement
projects to be funded through GEM (ranging between \$200 and \$10,000
per school) which will match, on a 50-50 basis, the PTCAs' own cash
contributions to improvement of education in their schools. (USAID
anticipates that PTCAs of approximately 200 schools per year will be
assisted). Amounts of matching financial support that may be provided to
recipient PTCAs should not be budgeted for, as these funds will be
provided from the GEM-3 Special Activities Fund.

p\. Selecting ten colleges in Mindanao and designing and implementing an
assistance program to help those colleges to augment existing
**English-language instruction programs** so as to assure that most of
their graduating students have sufficient English language ability to
qualify for employment in tourism, maritime, nursing, and BPO sectors.
USAID anticipates that assistance will be initiated for some 3 colleges
during the first year of the contract, with 3-4 colleges being added
each year during years 2 and 3. Amounts of financial support that may be
provided to recipient colleges to assist them to upgrade their English
language instruction programs should be estimated, but should not be
budgeted for, as these funds will be provided from the GEM-3 Special
Activities Fund, based substantially on recommendations from the GEM-3
contractor.

q\. Designing and implementing a **scholarship program** under which up
to 150 secondary/tertiary school-age children/youth per year will
receive the financial support needed to allow them to take advantage of
exceptionally desirable training opportunities or to remain in school.
(USAID anticipates that the scholarship program will be designed and
approved by USAID by the end of the first year of the contract, with at
least 30 children/youth selected to receive scholarship assistance. The
program should be in full swing during the second year of the contract).
Amounts of financial support that may be provided to scholarship
recipients should be estimated, but should not be budgeted for, as these
funds will be provided from the GEM-3 Special Activities Fund, based
substantially on recommendations from the GEM-3 contractor.

r\. Designing and implementing a **business internship program** under
which 25 recent graduates of colleges in the conflict affected areas
will annually receive internships providing for temporary 3-5 month jobs
in leading Filipino or multinational firms. USAID anticipates that the
business internship program will be fully designed and approved by the
end of the first year of the contract, with at least 5-10 firms agreeing
to host interns, and with the first 10-20 interns selected and placed.
The program should be in full swing by the end of the second year of the
contract. (Note that the per-intern cost of the similar "Congressional
Internship Program" which was implemented under the GEM-2 Program was
about \$5700 each -- which covered transportation, monthly living
allowances, computer support, and management of the program). Amounts of
financial support that may be provided to recipients of business
internships should be estimated but should not be budgeted for, as these
funds will be provided from the GEM-3 Special Activities Fund, based
substantially on recommendations from the GEM-3 contractor.

s\. Designing and implementing an incentive-based program under which
ten LGUs in conflict-affected areas will substantially increase amount
**of revenue collected through property and business taxes** as a result
of GEM-3 assistance. USAID anticipates that participating LGUs will be
identified and selected by the end of the first year of the contract,
with the incentive-based program designed and approved during the second
year of the contract, and under full implementation during the third
year of the contract. Amounts of financial support that may be provided
to recipient LGUs as part of an incentive program should be estimated,
but should not be budgeted for, as these funds will be provided from the
GEM-3 Special Activities Fund, based substantially on recommendations
from the GEM-3 contractor.

t\. Continuing the implementation of a **"Congressional Internship
Program**" under which 70 recent graduates of colleges in the conflict
affected areas will annually receive internships under which they will
each work in the Philippines House of Representatives for 3-5 month
periods. USAID anticipates that this program will be fully operational
during the first year of the contract. Note that, during GEM-2, the
per-intern cost of this activity averaged about \$5,700. Amounts of
financial support that may be provided to recipients of congressional
internships should not be budgeted for, as these funds will be provided
from the GEM-3 Special Activities Fund, based substantially on
recommendations from the GEM-3 contractor.

u\. Selecting 10 suitable cooperatives/communities of **former MNLF
combatants** each year and providing them with pre/post harvest
facilities needed to make their production efforts more profitable.
USAID anticipates that this program will become fully operational during
the first year of the contract, with at least 5-10
cooperatives/communities receiving pre/post-harvest facilities. Amounts
of funds required for the pre/post harvest facilities should not be
budgeted for, as these funds will be provided from the GEM-3 Special
Activities Fund, based substantially on recommendations from the GEM-3
contractor.

v\. (If an acceptable GRP-MILF Peace Agreement reached) Designing and
implementing a program under which approximately 10,000 **former MILF
combatants** will be provided assistance necessary to allow them to earn
a reasonable living for themselves and their families on a continuing
basis.

w\. (If an acceptable GRP-MILF Peace Agreement reached) Designing and
implementing a program under which approximately 200 cooperatives
composed **of former MILF combatants** will be provided pre/post harvest
facilities needed to make their production efforts more profitable.

x\. Designing and mounting **a communications/information program**
under which: at least 10 news articles (about USAID or USG-supported
activities in Mindanao, or about positive developments in Mindanao) will
be written and placed each month in both the Manila and Mindanao press;
at least 5 articles will be prepared and placed each year in the
international press; at least 10-20 radio/TV appearances will be
arranged each year for USAID/GEM staff (at which the USAID/GEM staff
will have the opportunity to discuss activities being carried out under
the GEM Program ; some 40-60 press releases will be prepared and
released each year in conjunction with various "events" marking
initiation/completion/turn-over, etc. of USAID or USG projects and
activities.

y\. Preparing and disseminating **bi**-**monthly "Security Reports**"
providing guidance for GEM staff, GEM partners, and other USAID programs
and projects regarding the security situation in different parts of
Mindanao, areas to avoid, etc.

z\. **Organizing 10-20 visits per year to various USAID-supported
activities** for visiting USAID, U.S. Embassy, State Department, and
other USG officials who wish to familiarize themselves with Mindanao and
USAID activities in Mindanao.

**C.6 IMPLEMENTATION ARRANGEMENTS**

a\. Counterparts. The Mindanao Economic Development Council (MEDCo) will
continue to be the principal GRP counterpart organization. There will
also be substantial interaction with the ARMM Government, with the
Office of the Presidential Advisor for the Peace Process (OPAPP), with
the leadership of the MNLF, and with LGU officials at provincial,
municipal, and barangay levels. GRP oversight for the GEM-3 Program will
be exercised principally through MEDCo's chairmanship of both Steering
and Management Committees for the GEM Program

b\. Offices. The Contractor shall establish a headquarters office for
GEM-3 in Davao City, in Mindanao. GEM satellite offices shall also be
maintained in Cotabato City, Zamboanga, and Cagayan de Oro. Depending on
the needs of the GEM-3 Program, and with concurrence of USAID, the
contractor may propose establishing additional satellite offices in
other cities in Mindanao and the islands of the Sulu archipelago, e.g.,
Butuan, Bongao, General Santos City, Iligan. A small Manila liaison
office may also be authorized if it appears to be necessary.

c\. Staffing**.** The Contractor shall propose, for USAID's concurrence,
appropriate staffing given GEM-3's objectives, and the proposed approach
for attaining those objectives. The Contractor's Chief of Party will be
a U.S. citizen.

> All other staff may be either expatriate or Filipino, depending on the
> type of expertise being sought, and the availability of that
> expertise. Because of security considerations as well as other
> factors, it is anticipated that the great majority of GEM-3 staff will
> be Filipino, with long-term expatriate assistance utilized only on a
> limited basis. All expatriate staff is to be based only in Davao.
> Suggestions as to staffing are provided in an attached Illustrative
> Staffing Pattern. Offerors, however, have the latitude to propose any
> staffing arrangements they deem appropriate. The proposed Chief of
> Party, and the individuals who shall have principal responsibility
> (under the Chief of Party's direction) for planning and implementation
> of the different program components (e.g., Infrastructure Development,
> Business Development, Workforce Preparation, and Governance
> Improvement) shall be considered "key personnel."

d\. Gender Considerations. USAID continues to seek new and more
effective ways to incorporate gender concerns into its development
activities, expand economic opportunities for women, and provide equal
access to resources, training, education and participation for both men
and women. To the extent appropriate, GEM-3 will maximize involvement of
women both as participants and beneficiaries. This will be promoted
through the appropriate representation of women in the identification,
planning and selection of subprojects. Due consideration will be given
to the special requirements of women in the planning and design of
infrastructure subprojects. For example, community centers and other
buildings follow the Building Code which incorporates women concerns. As
with the ongoing community activities of the earlier GEM-2, women will
also be tapped in training activities related to the operation and
maintenance of infrastructure subprojects.

With regard to proposed assistance to former MILF combatants, the
program will make sure that female MILF combatants will not be
discriminated against in the selection of participants.

Under the GEM-3 Program, the Contractor will prepare a Gender Plan of
Action to integrate gender and development considerations in the
implementation, monitoring and evaluation of appropriate GEM-3
activities, such as ensuring that there is equal access for men and
women to employment opportunities and workforce preparation activities,
including English language skills enhancement, among others. The
Contractor will ensure that all people-level reporting of results and
accomplishments, such as training, employment, scholarships and
internships, will be sex-disaggregated.

**C.7 MOBILIZATION**

Within sixty (60) calendar days after the contract award, the Contractor
shall have completed mobilization of its Core Field Team, including Key
Personnel.

**C.8 TRANSITION**

 

The Contractor shall assume responsibility for performance of work as
set forth in this Section of the Contract on August 15, 2007.  The
Contractor shall plan and prepare for the orderly transfer of program
responsibilities under GEM-3 from GEM-2.  The Contractor shall determine
the staffing needs; make offers to and may transition local incumbent
employees to the Contractor; work with the incumbent contractor, and;
perform a complete inventory of all USAID-owned property for
accountability which will transfer to the Contractor.

# 

# SECTION D - PACKAGING AND MARKING

**D.1.** **PACKAGING**

The Contractor shall include the following in all reports to be
submitted under this contract:

a.  The contract number

b.  A descriptive title

c.  The name/s of the author/s

d.  The activity title

e.  The Contractor's name, address and telephone number/s

f.  The issuance date of the report

g.  The appropriate USAID Identity.

**D.2 BRANDING AND MARKING OF DELIVERABLES**

Marking shall comply with the USAID "Graphic Standards Manual" available
at [www.usaid.gov/branding](http://www.usaid.gov/branding), or any
successor branding policy.

Pursuant to AIDAR 752.7009, Marking (Jan 1993) and the USAID Branding
Policy, the Contractor shall appropriately mark all project activities,
public communications and commodities partially or fully funded by this
contract with the USAID Identity, of a size and prominence equivalent to
or greater than the Contractor's logo, other donor's or any other third
party's identity or logo.

a.  The Contractor shall mark all program, project or activity sites
    funded by USAID, including visible infrastructure projects (such as
    roads, bridges, buildings) or other programs, projects or activities
    that are physical in nature, with the USAID Identity. The Contractor
    shall erect temporary signs or plaques early in the construction of
    implementation phase. When construction or implementation is
    complete, the Contractor must install a permanent, durable sign,
    plaque or other marking.

b.  The Contractor will mark technical assistance, studies, reports,
    papers, publications, audio-visual productions, public service
    announcements, Web sites/internet activities and other promotional,
    informational, media or communications products funded by USAID with
    the USAID Identity.

c.  The Contractor will appropriately mark events financed by USAID such
    as training courses, conferences, seminars, exhibitions, fairs,
    workshops, press conferences and other public activities with the
    USAID Identity. Unless directly prohibited and as appropriate to the
    surroundings, the Contractor shall display additional materials such
    as signs and banners with the USAID Identity. In circumstances in
    which the USAID Identity cannot be displayed visually, the
    Contractor is encouraged otherwise to acknowledge USAID and the
    American people's support.

d.  The Contractor shall mark all commodities financed by USAID (project
    vehicles, equipment, etc.) with the USAID Identity.

e.  The Contractor is required to submit to the CTO for pre-production
    review and approval, all public communications and program
    materials.

Information on USAID Marking and Branding requirements and the USAID
Graphic Standards Manual are available at
<http://www.usaid.gov/branding> or
<http://www.usaid.gov/branding/acquisition.html>.

As a general rule, USAID policy is to require exclusive branding
and marking in USAID direct acquisitions using any source of
funds.  Contractors and subcontractors\' corporate identities or logos
must not be used on USAID-funded program materials.  Marking is not
required on contractor vehicles, offices, office supplies or other
commodities used solely for administration of the USAID-funded program.
Marking is not permitted on any communications that are strictly
administrative, rather than programmatic, in nature.  USAID identity is
also prohibited on contractor

and recipient communications related to award administration, such as
hiring/firing of staff or renting office space and/or equipment. 

 

The Contractor shall develop a branding implementation plan (BIP) to
describe how the program will be promoted to beneficiaries and host
-country citizen. It outlines the events and materials the contractor
will organize and produce to assist USAID in delivering the message that
the assistance is from the American people. The BIP shall implement
USAID/Philippines branding strategy for the GEM-3 Program:

 

Program or Project Name : USAID/Growth with Equity in Mindanao-3 (GEM-3)
Program

Branding                : The branding shall incorporate the message
that the assistance is \"from the American People, and jointly sponsored
by USAID and the Government of the Republic of the Philippines.\"

Desired Level of Visibility : USAID identity must be prominently
displayed in: commodities or equipment; printed, audio, visual or
electronic public communications; studies, reports, publications, web
sites, and all promotional and informational products; events; and
grants under contracts financed by USAID.  For infrastructure projects,
temporary signs must be erected early in the construction or
implementation phase. When construction is complete, the contractor must
install permanent, durable, and visible sign, plaque or marking. 

Organizations to be : The branding may acknowledge other organizations
deemed as partners under the

Acknowledged GEM-3 Program. 

 

The Contractor shall also develop a marking plan to enumerate the public
communications, commodities, and program materials and other items that
visibly bear or will be marked with the USAID identity. The marking plan
may include requests for exceptions to marking requirements, to be
approved by the contracting officer.  Contract deliverables to be marked
with the USAID identity must follow design guidance for color, type, and
layout in the Graphic Standards Manual.

# 

# SECTION E - INSPECTION AND ACCEPTANCE

## E.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE

The following contract clauses pertinent to this section are hereby
incorporated by reference (by Citation Number, Title, and Date) in
accordance with the clause at FAR \"52.252-2 CLAUSES INCORPORATED BY
REFERENCE\" in Section I of this contract. See FAR 52.252-2 for an
Internet address (if specified) for electronic access to the full text
of a clause.

NUMBER TITLE DATE

FEDERAL ACQUISITION REGULATION (48 CFR Chapter 1)

52.246-3 INSPECTION OF SUPPLIES -- COST REIMBURSEMENT MAY 2001

52.246-5 INSPECTION OF SERVICES\--COST-REIMBURSEMENT APR 1984

**E.2 RESPONSIBLE OFFICIAL**

In accordance with the contract clause entitled "Inspection of Services
-- Cost Reimbursement" (FAR 52.246-5), inspection of all deliverables
required hereunder shall be made by the Cognizant Technical Officer
(CTO), designated in Section G, who has been delegated authority to
inspect and accept all services, reports and other required
deliverables. Acceptance of services, reports and other deliverables by
the CTO shall form the basis for payments to the Contractor.

##### E.3 INSPECTION AND ACCEPTANCE

USAID inspection and acceptance of services, reports and other required
deliverables or outputs shall be subject to the performance standards
set forth in Sections C and F. Inspection and acceptance shall take
place at:

Office of Economic Development and Governance

USAID/Philippines

8/F PNB Financial Center

Pres. Diosdado Macapagal Blvd.

Pasay City 1308, Philippines

or at any other location where the services are performed and reports
and deliverables or outputs are produced or submitted.

**E.4 MONITORING AND EVALUATION**

a.  The CTO will conduct periodic performance reviews to monitor the
    progress of work and the achievement of results under this contract
    and the other contract terms and conditions, which will form the
    basis of the Contractor's permanent performance record with regard
    to this contract. The Contractor Performance Report (see Attachment
    J.) will be used for the periodic evaluation required under FAR Part
    42.

b.  The CTO will monitor contract performance to evaluate the work as it
    progresses, and to inspect and accept all services, reports and
    other required deliverables.

c.  Evaluations focused on key implementation issues may occur one or
    more times during or after the implementation of this contract. Such
    external evaluation/s will be conducted by USAID or its designated
    representative, and may include detailed assessment of project
    organization, management, field work, significant outputs, and the
    quality and quantity of overall performance. The cost for such
    external evaluations involving this contract will be covered by
    USAID and will not be charged against this contract, except to the
    extent that contractor personnel are required to brief or assist an
    evaluation team.

# 

# SECTION F - DELIVERIES OR PERFORMANCE

## F.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE

The following contract clauses pertinent to this section are hereby
incorporated by reference (by Citation Number, Title, and Date) in
accordance with the clause at FAR \"52.252-2 CLAUSES INCORPORATED BY
REFERENCE\" in Section I of this contract. See FAR 52.252-2 for an
Internet address (if specified) for electronic access to the full text
of a clause.

NUMBER TITLE DATE

FEDERAL ACQUISITION REGULATION (48 CFR Chapter 1)

52.242-15 STOP-WORK ORDER AUG 1989\
ALTERNATE I (APR 1984)

## F.2 PERIOD OF PERFORMANCE

The effective date of this contract is on or about August 15, 2007, and
its estimated completion date is August 14, 2012.

**F.3 PRINCIPAL PLACE OF PERFORMANCE**

The principal places of performance of this contract is Mindanao,
Philippines, and to lesser extent at the Contractor's Philippine office
in Manila, Philippines and in its U.S. Home Office.

## 

## F.4 PERFORMANCE STANDARDS

Evaluation of the Contractor\'s overall performance in accordance with
the performance standards set forth below, shall be conducted jointly by
the CTO and the Contracting Officer, and shall form the basis of the
Contractor\'s permanent performance record with regard to this contract.

a\. Quality of service/work;

b\. Cost control/effectiveness;

c\. Timeliness of performance;

d\. Customer satisfaction by USAID;

e\. Customer satisfaction by End-users; and

f\. Effectiveness of Key Personnel.

## 

## F.5 TECHNICAL DIRECTIONS

a\. Performance of work hereunder shall be subject to the technical
directions of the Cognizant Technical Officer (CTO) as set forth in
Section G of this contract. As used herein, "Technical Directions" are
directions to the Contractor which fill in details, suggest possible
lines of inquiry, or otherwise complete the general scope of work.
"Technical Directions" must be within the terms of this contract, shall
not change or modify them in any way, and shall not constitute changes
(as described in the contract clause entitled "Changes -- Cost
Reimbursement" (FAR 52.243-02, Alternate II), which may only be
accomplished by the Contracting Officer. The Contractor shall notify the
Contracting Officer in writing of any technical directions which it
considers to constitute changes prior to proceeding therewith.

Technical Directions are further defined to include:

1\) Provision of written information to the Contractor, which assists in
the interpretation of drawings, specifications, or technical portions of
the work statement;

2\) Review and, where required, provide written approval of technical
reports, drawings, specifications, or technical information to be
delivered.

Technical directions must be in writing, and must be within the scope of
the work as detailed in Section C.

b\. The Contractor shall comply with the clause of this contract
entitled "Notification of Changes" (FAR 52.243-7) within seven (7)
calendar days. Failure to do so shall waive the Contractor's right to
any claims for equitable adjustments as described in the clause of this
contract entitled "Changes -- Cost Reimbursement" (FAR 52.243-2,
Alternate II).

## 

## F.6 REPORTS AND DELIVERABLES OR OUTPUTS

In addition to the results and deliverables in Section C, the submission
of reports in Sections I and J and in AIDAR clause 752.242-70, Periodic
Progress Reports, the Contractor shall submit the following deliverables
or outputs to the CTO specified in Section G. in the form of written
reports

a\. WORK PLANS

1\. Life-of-Project Work Plan -- Within sixty (60) calendar days of
contract award, the Contractor shall develop and submit for CTO
approval, a strategic five-year work plan that presents an overview of
technical services to be provided by the Contractor. It shall contain
the performance objectives over five years, a description of duties of
short term personnel, a staffing plan, and a performance schedule that
identifies all milestones and shows their target dates for completion.
The Life-of-Project Work Plan shall become the basis for the annual work
plans.

> 2\. Annual Work Plans -- The Contractor shall prepare for CTO review
> and approval, an annual work plan that sets forth in detail the
> breakdown of the technical work as required by the Scope of Work and
> presented in the strategic five-year LOP. The annual work plan will
> provide a detailed breakdown of the technical work, schedule and cost
> profile planned for the ensuing twelve (12) months and delineated by
> quarter. The Contractor's quarterly progress reports will report
> program performance against program baseline data established in the
> Annual Work Plan. The first annual work plan shall be submitted no
> later than 60 calendar days after the effective date of the contract.
> Subsequent annual work plans shall be submitted no later than August
> 1st of the following year. These workplans shall include: performance
> objectives, benchmarks or milestones for the period; tasks/activities
> to be implemented to achieve annual performance targets or expected
> results; target dates for completion of tasks/activities; cost
> estimates for completion of tasks/activities; critical assumptions;
> and a summary of the Contractor's operational and administrative
> requirements covering the term of the annual workplan. Workplans shall
> not change the Statement of Work in any way. All workplans shall cross
> reference the applicable section(s) in the Statement of Work. The
> Statement of Work shall take precedence over the workplans, in the
> event of any conflicts or inconsistencies between the Statement of
> Work and the workplan. Any changes to the contract must be approved by
> the Contracting Officer by means of a modification to this contract.
>
> 3\. Updated Work Plan -- As may be necessary due to circumstances
> beyond the Contractor's control, and subject to the CTO's approval,
> the Work Plans may be amended and benchmarks added, deleted or revised
> from time to time. The Final updated work plans shall be submitted to
> the CTO within thirty (30) days of its draft approval.

##  b. COMPREHENSIVE MONITORING AND EVALUATION PLAN

The Contractor shall submit a comprehensive monitoring and evaluation
plan that includes results statements, indicators and targets, a
description of management and governance of the performance monitoring
plan. It should include a GIS component to map and monitor program
impact. The monitoring and evaluation plan shall be delivered to the CTO
for review and approval before the end of the first year and will
include baseline data as available.

c\. PERFORMANCE MONITORING REPORTS

Technical and financial reporting is critical to managerial and
financial control and provides USAID with performance status information
against performance objectives (expected results) and other contract
requirements. For this reason, the Contractor shall submit to the CTO
the following reports:

1\. AIDAR 752.242-70 Periodic Progress Reports (July 1998)

\(a\) The Contractor shall prepare and submit progress reports as
specified in the Schedule of this contract. These reports are separate
from the interim and final performance evaluation reports prepared by
USAID in accordance with (48 CFR) FAR 42.15 and internal Agency
procedures, but they may be used by USAID personnel or their authorized
representatives when evaluating the Contractor's performance.

\(b\) During any delay in furnishing a progress report required under
this contract, the Contracting Officer may withhold from payment an
amount not to exceed US\$25,000 (or local currency equivalent) or 5
percent of the amount of this contract, whichever is less, until such
time as the Contracting Officer determines that the delay no longer has
a detrimental effect on the Government's ability to monitor the
contractor's progress.

2\. Quarterly Performance Reports -- Pursuant to no. 1. above, the
Contractor shall submit to the USAID CTO a brief report on its quarterly
performance within ten (10) days after the end of the period covered.
The report will address the following areas:

\(a\) Performance objectives/expected outputs for the quarter;

\(b\) Summary of major accomplishments during the quarter as well as
unexpected or unplanned outcomes/activities during the quarter;

\(c\) Outstanding issues and implementation problems and options for
resolving these issues and problems;

\(d\) Planned performance objectives for the next quarter, and;

\(e\) An administrative report covering expenditures by contract line
item and status of funds to date.

3\. Monthly Infrastructure Progress and Expenditure Reports -- The
Contractor shall prepare and submit to the CTO a monthly expenditure
report showing current and cumulative information relating to actual and
accrued contract expenditures by infrastructure project with an
estimated budget for the remainder to the funding period. This report
shall show obligations, accrued outlays, disbursements and balances for
each project. The Contractor is responsible for integrating reporting
from its subcontractors in a timely manner so that accurate reporting is
available no later than ten (10) days after the close of the reporting
period.

d\. OTHER REPORTS

1\. Branding Implementation Plan and Marking Plan

Pursuant to USAID's policy directives on branding and marking, the
Contractor shall prepare and submit a Branding Implementation Plan that
responds to the Branding Strategy in Section D as part of its proposal.
The apparently successful applicant shall be required to submit a
Marking Plan. Failure to meet the marking requirements may be considered
noncompliance with the contract.

2\. Participant Training Reports

> Participant training is a learning activity funded in whole or in part
> by USAID, is conducted within the host country, a third country or in
> the U.S., and whose purpose is furthering USAID development
> objectives. A learning activity takes place in a setting in which an
> individual (the Participant) interacts with a knowledgeable
> professional predominantly for the purpose of acquiring knowledge,
> skills, or information for the professional or technical enhancement
> of the individual and improved performance of his/her workplace.
> Learning activities may be formally or informally structured (see ADS
> 253).
>
> Pursuant to the 1995 Paperwork Reduction Act, the Office of Management
> and Budget (OMB) has approved USAID's agency-wide use of the Training
> Results and Information Network (TraiNet) to enable the planning and
> reporting of information on all USAID training activities, including
> in-country training.

To document Participant Trainees, the Contractor shall designate a
permanent TraiNet Administrator for its organization who shall be in
charge of managing and inputting into TraiNet Web data for all training
programs (US, third country and in-country) under this contract. All
in-country training programs regardless of training duration shall be
reported.  The Contractor shall submit a report on Participant Trainees
every quarter together with the quarterly performance reports.

2\. Short Term Consultants Reports -- The Contractor shall submit a copy
a report to the CTO which summarizes the activities, accomplishments and
recommendations of short term consultants after the completion of their
consultancies.

3\. Annual Report on Foreign Taxes -- Pursuant to the contract clause
entitled "Reporting on Foreign Taxes", the Contractor shall submit to
the CTO, the Contracting Officer and the Regional Controller, before
April 16 of the next year, an annual report on foreign taxes assessed by
the Government of the Philippines (GRP) on commodity purchase
transactions valued at \$500 or more financed with US foreign assistance
funds under this contract.

> 4\. Annual Inventory of Non-expendable Property reports -- In
> accordance with AIDAR 752.245-70, the Contractor shall submit on an
> annual basis, a non-expendable property report. The format to be used
> in preparing the report is prescribed in AIDAR 752.245-70.
>
> 5\. Completion/Final Report -- Within ninety (90) days after contract
> completion date, the Contractor shall provide a completion report.
> This report shall cover all major activities and comprehensively state
> the results achieved from the start of the contract through its
> conclusion. The report shall follow the format of the Quarterly
> Progress Reports but shall also include a section on recommendations
> for follow-up activities, including areas where continued USG and/or
> donor activity is necessary.
>
> The Contractor shall submit a draft completion report to the CTO for
> review and comments no later than thirty (30) days after contract
> completion date. The CTO may seek Contracting Officer comments on the
> draft prior to approving it. The Contractor shall revise the draft by
> addressing all comments before re-submitting the completion report in
> final form to the CTO for approval.
>
> 6\. Special Reports -- Between the required performance reports,
> events may occur which adversely affect the Contractor's ability to
> accomplish the goals and objectives, or complete tasks/activities by
> the time established in the annual workplan for the given period. In
> such circumstances, including heightened security concerns or issues,
> the Contractor shall immediately notify the CTO and the Contracting
> Officer, in writing, describing the nature of the problem and the
> remedial action taken or to be taken by the Contractor, and any action
> which is recommended to resolve the problem.

**F.7 ADDRESS FOR REPORTS**

Copies of all reports and other deliverables shall be sent to the CTO
specified in Section G.

## F.8 KEY PERSONNEL

a\. The key personnel that the Contractor shall furnish for the
performance of this contract are as follows. (The positions shown, with
the exception of the Chief of Party, are illustrative. Accordingly,
except for the Chief of Party, there is no USAID preference for
particular functions in the proposed organization.)

> [Name]{.underline} [Position Title]{.underline}

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ [Chief of
Party]{.underline}\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ [Team Leader for
Infrastructure Development\_\_\_\_\_\_\_\_\_\_\_]{.underline}

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ [Team Leader for Business
Development and Administration]{.underline}

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ [Team Leader for Governance
and Workforce Development\_]{.underline}

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

b.  The Key Personnel identified above were proposed by the Contractor
    in its original proposal and/or final revised offer which was
    accepted by USAID through award of this contract and are considered
    to be essential to the work being performed hereunder. Unless
    otherwise agreed to by the Contracting Officer, the Contractor shall
    be responsible for providing such personnel for performance of this
    contract for the term required hereunder. Unless failure to provide
    the designated key personnel as specified above is beyond the
    control and without the fault or negligence of the Contractor,
    failure to provide such key personnel as specified above may be
    considered nonperformance by the Contractor. Prior to replacing any
    of the specified individuals, the Contractor shall immediately
    notify both the Contracting Officer and the CTO reasonably in
    advance and shall submit written justification (including proposed
    substitutions) in sufficient detail to permit evaluation of the
    impact (both programmatic and cost) on the program. No replacement
    of personnel shall be made by the Contractor without the written
    consent of the Contracting Officer; provided, that the Contracting
    Officer may ratify in writing such diversion/replacement and such
    ratification shall constitute the consent of the Contracting Officer
    required by this clause.

> c\. Proposed substitutions must be submitted simultaneously to the
> Contracting Officer and the CTO no later than thirty (30) days before
> the diversion of any of the specified individuals. Failure to do so
> may be considered nonperformance by the Contractor. The listing of Key
> Personnel may, with the consent of the Contracting parties, be amended
> from time to time during the course of this contract to either add or
> delete personnel, as appropriate.

## F.9. SUBMISSION REQUIREMENTS FOR DEVELOPMENT EXPERIENCE DOCUMENTS (JAN 2004)

a\. Contract Reports and Information/Intellectual Products

\(1\) The Contractor shall submit to USAID's Development Experience
Clearinghouse (DEC) copies of reports and information products which
describe, communicate or organize program/project development assistance
activities, methods, technologies, management, research, results and
experience as outlined in the Agency's ADS Chapter 540. Information may
be obtained from the Cognizant Technical Officer (CTO). These reports
include: assessments, evaluations, studies, development experience
documents, technical reports and annual reports. The Contractor shall
also submit two copies of information products including training
materials, publications, databases, computer software programs, videos
and other intellectual deliverable materials required under the Contract
Schedule. Time-sensitive materials such as newsletters, brochures,
bulletins or periodic reports covering periods of less than a year are
not to be submitted.

\(2\) Upon contract completion, the Contractor shall submit to DEC an
index of all reports and information/intellectual products referenced in
paragraph a.1) of this clause.

b\. Submission requirements.

> \(1\) Distribution
>
> \(i\) At the same time submission is made to the CTO, the Contractor
> shall submit, one copy each, of contract reports and
> information/intellectual products (referenced in paragraph a.1) of
> this clause) in either electronic (preferred) or paper form to one of
> the following:
>
> \(A\) Via E-mail : docsubmit@dec.cdie.org;
>
> \(B\) Via U.S. Postal Service: Development Experience Clearinghouse
>
> 8403 Colesville Road, Suite 210
>
> Silver Spring, MD 20910, USA;
>
> \(C\) Via Fax : (301) 588-7787; or
>
> \(D\) Online :
> <http://www.dec.org/index.cfm?fuseaction=docSubmit.home>.
>
> \(ii\) The Contractor shall submit the reports index referenced in
> paragraph a.2) of this clause and any reports referenced in paragraph
> a.1) of this clause that have not been previously submitted to DEC
> within 30 days after completion of the contract to one of the
> addresses cited in paragraph b.1) of this clause.
>
> \(2\) Format

1.  Descriptive information is required for all Contractor products
    submitted. The title page of all reports and information products
    shall include the contract number(s), contractor name(s), name of
    the USAID cognizant technical office, the publication or issuance
    date of the document, document title, author name(s), and strategic
    objective or activity title and associated number. In addition, all
    materials submitted in accordance with this clause shall have
    attached on a separate cover sheet, the name, organization, address,
    telephone number, fax number, and Internet address of the submitting
    party.

2.  The report in paper form shall be prepared using non-glossy paper
    (preferably recycled and white or off-white) using black ink.
    Elaborate art work, multicolor printing and expensive bindings are
    not to be used. Whenever possible, pages shall be printed on both
    sides.

3.  The electronic document submitted shall consist of only one
    electronic file which comprises the complete and final equivalent of
    the paper copy.

4.  Acceptable software formats for electronic documents include
    WordPerfect, Microsoft Word, and Portable Document Format (PDF).
    Submission in PDF is encouraged.

5.  The electronic document submission shall include the following
    descriptive information:

> \(A\) Name and version of the application software used to create the
> file, e.g., WordPerfect Version 9.0 or Acrobat Version 5.0.
>
> \(B\) The format for any graphic an/or image file submitted, e.g.,
> TIFF-compatible.
>
> \(C\) Any other necessary information, e.g., special backup or data
> compression routines, software used for storing/retrieving submitted
> data or program installation instructions.

# 

# SECTION G - CONTRACT ADMINISTRATION DATA

## G.1 ACCOUNTING AND APPROPRIATION DATA

MAARD Number :

Budget Fiscal Year :

Appropriation :

Total Estimated Cost :

Amount Obligated :

Operating Unit :

Strategic Objective :

Team/Division :

Benefiting Geo Area :

Object Class :

##  

## G.2 ADMINISTRATIVE CONTRACTING OFFICE

The Contract Administration Office responsible for post-award
administration of this contract (except to the extent that authority for
post-award administration has been delegated to the CTO pursuant to
section G.3 is: Office of Regional Procurement, USAID/Philippines.

International mailing/Courier address US mailing address

Office of Regional Procurement Office of Regional Procurement

USAID/Philippines USAID/Manila

8/F PNB Financial Center PSC 502 Box1

Pres. Diosdado Macapagal Blvd. FPO AP 96515-1200

Pasay City, 1308

Philippines.

Telephone no. (632) 552-9800 ext. 9923

Facsimile nos. (632) 552-9899 and (632) 552-9999

## G.3 COGNIZANT TECHNICAL OFFICER (CTO)

a\. The Cognizant Technical Officer is ( [To be named at the time of
contract award]{.underline} ) of the Office of Economic Development and
Governance. The alternate Cognizant Technical Officer is:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.

b\. The CTO is authorized by designation to take any or all action with
respect to the following which could lawfully be taken by the
Contracting Officer, except any action specifically prohibited by the
terms of this Contract:

1\) Assure that the Contractor performs the technical requirements of
the contract in accordance with the contract terms, conditions, and
specifications.

2\) Pursuant to the clauses of this contract entitled "Inspection of
Supplies -- Cost Reimbursement"(FAR 52.246-3) and "Inspection of
Services -- Cost Reimbursement" (FAR 52.246-5) perform or cause to be
performed, inspections necessary in connection with a) above and require
the Contractor to correct all deficiencies; perform acceptance for the
Government.

3\) Maintain all liaison and direct communications with the Contractor.
Written communications with the Contractor and documents shall be signed
as \"Cognizant Technical Officer\" with a copy furnished to the
Contracting Officer.

4\) Issue written interpretations of technical requirements of
Government drawings, designs, and specifications.

5\) Monitor the Contractor\'s production or performance progress and
notify the Contractor in writing of deficiencies observed during
surveillance, and direct appropriate action to effect correction. Record
and report to the Contracting Officer incidents of faulty or
nonconforming work, delays or problems.

6\) Obtain necessary security clearance and appropriate identification
if access to Government facilities is required. If to be provided,
ensure that Government furnished property is available when required.

LIMITATIONS: The CTO is not empowered to award, agree to, or sign any
contract (including delivery or purchase orders) or modifications
thereto, or in any way to obligate the payment of money by the
Government. The CTO may not take any action which may impact on the
contract schedule, funds, scope or rate of utilization of LOE. All
contractual agreements, commitments, or modifications, which involve
prices, quantities, quality, and schedules, shall be made only by the
Contracting Officer.

c\. The CTO is required to meet quarterly/semi-annually/annually with
the Contractor and the Contracting Officer concerning performance of
items delivered under this contract and any other administration or
technical issues. Telephonic reports may be made if no problems are
being experienced. Problem areas should be brought to the immediate
attention of the Contracting Officer.

d\. In the absence of the designated CTO, the Contracting Officer may
designate someone to serve as CTO in his or her place. However, such
action to direct an individual to act in the CTO\'s stead shall
immediately be communicated to the Contractor and the Contracting
Officer.

e\. Contractual Problems - Contractual problems, of any nature, that may
arise during the life of the contract must be handled in conformance
with specific public laws and regulations (i.e. Federal Acquisition
Regulation and Agency for International Development Acquisition
Regulation). The Contractor and the CTO shall bring all contracting
problems to the immediate attention of the Contracting Officer. Only the
Contracting Officer is authorized to formally resolve such problems. The
Contracting Officer will be responsible for resolving legal issues,
determining contract scope and interpreting contract terms and
conditions. The Contracting Officer is the sole authority authorized to
approve changes in any of the requirements under this contract.
Notwithstanding any clause contained elsewhere in this contract, the
said authority remains solely with the Contracting Officer. These
changes include, but will not be limited to the following areas: scope
of work, price, quantity, technical specifications, delivery schedules,
and contract terms and conditions. In the event the Contractor effects
any changes at the direction of any other person other than the
Contracting Officer, the change will be considered to have been made
without authority.

f.  Failure by the Contractor to report to the Administrative
    Contracting Office, any action by the Government considered to a
    change, within the specified number of days contained in FAR
    52.243-7 (Notification of Changes), waives the Contractor\'s right
    to any claims for equitable adjustments.

g.  In case of conflict between this contract and the CTO designation
    letter, the contract shall prevail.

## G.4 PAYING OFFICE

a\. The Contractor shall submit invoices/vouchers to, and payment shall
be made by, the Controller, USAID/Philippines.

##  b. The paying office address for this contract is: Regional Financial Services Center

## USAID/Philippines

## 8/F PNB Financial Center, 

## Pres. Diosdado Macapagal Blvd.

## Pasay City, 1308 Philippines.

## Telephone nos. (632) 552-9800 ext. 9934 or 9933

## 

## Fax nos, (632) 552-9899 or (632) 552-9999.

**G.5 INVOICING AND PAYMENT**

a.  Payment under this contract shall be made upon inspection and
    acceptance of the supplies and services delivered and receipt of a
    proper invoice as described in FAR 52.232-25 "Prompt Payment".

b.  An invoice is the Contractor's bill or written request for payment
    under this contract for supplies and services provided to the
    Government. The Contractor shall prepare invoices in accordance with
    section G.7 below entitled "Documentation for Payment" (AIDAR
    752.7003). Invoices shall be submitted to the Paying Office shown in
    G.5 above.

## 

## G.6 AIDAR 752.7003 DOCUMENTATION FOR PAYMENT (NOV 1998)

> a\. claims for reimbursement or payment under this contract must be
> submitted to the Paying Office indicated in the schedule of this
> contract. The cognizant technical officer (CTO) is the authorized
> representative of the Government to approve vouchers under this
> contract. The Contractor must submit either paper or fax versions of
> the SF-1034\--Public Voucher for Purchases and Services Other Than
> Personal. Each voucher shall be identified by the appropriate USUSAID
> contract number, in the amount of dollar expenditures made during the
> period covered.
>
> 1\) The SF 1034 provides space to report by line item for products or
> services provided. The form provides for the information to be
> reported with the following elements:

Total Expenditures

\[Document Number: XXX-X-XX-XXXX-XX\]

\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\--
\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\--

Line Description Amt vouchered Amt vouchered

Item No. to date this period

\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\--

001 Product/Service Desc. for Line Item 001 \$XXXX.XX \$ XXXX.XX

002 Product/Service Desc. for Line Item 002 XXXX.XX XXXX.XX

Total XXXX.XX XXXX.XX

\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\--

> 2\) The fiscal report shall include the following certification signed
> by an authorized representative of the Contractor:
>
> > *The undersigned hereby certifies to the best of my knowledge and
> > belief that the fiscal report and any attachments have been prepared
> > from the books and records of the Contractor in accordance with the
> > terms of this contract and are correct: the sum claimed under this
> > contract is proper and due, and all the costs of contract
> > performance (except as herewith reported in writing) have been paid,
> > or to the extent allowed under the applicable payment clause, will
> > be paid currently by the Contractor when due in the ordinary course
> > of business; the work reflected by these costs has been performed,
> > and the quantities and amounts involved are consistent with the
> > requirements of this Contract; all required Contracting Officer
> > approvals have been obtained; and appropriate refund to USUSAID will
> > be made promptly upon request in the event of disallowance of costs
> > not reimbursable under the terms of this contract.*

BY:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

TITLE:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

DATE:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

> \(b\) Local currency payment. The Contractor is fully responsible for
> the proper expenditure and control of local currency, if any, provided
> under this contract. Local currency will be provided to the Contractor
> in accordance with written instructions provided by the Mission
> Director. The written instructions will also include accounting,
> vouchering, and reporting procedures. A copy of the instructions shall
> be provided to the Contractor\'s Chief of Party and to the Contracting
> Officer. The costs of bonding personnel responsible for local currency
> are reimbursable under this contract.
>
> \(c\) Upon compliance by the Contractor with all the provisions of
> this contract, acceptance by the Government of the work and final
> report, and a satisfactory accounting by the Contractor of all
> Government-owned property for which the Contractor had custodial
> responsibility, the Government shall promptly pay to the Contractor
> any moneys (dollars or local currency) due under the completion
> voucher. The Government will make suitable reduction for any
> disallowance or indebtedness by the Contractor by applying the
> proceeds of the voucher first to such deductions and next to any
> unliquidated balance of advance remaining under this contract.
>
> \(d\) The Contractor agrees that all approvals of the Mission Director
> and the Contracting Officer which are required by the provisions of
> this contract shall be preserved and made available as part of the
> Contractor\'s records which are required to be presented and made
> available by the clause of this contract entitled \"Audit and
> Records\--Negotiation\".

**G.7 DEFECTIVE OR IMPROPER INVOICES**

Invoices/vouchers not conforming to paragraph (a)(4) of the clause
entitled "Prompt Payment" (FAR 52.232-25), shall be deemed improper and
thus defective. The Contractor shall provide below the name(s), title,
e-mail address, phone number fax no., office name, and mailing address
of contact persons of the Contractor to be notified when the Government
receives an improper invoice.

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

**G.8 SUBMISSION OF COMPLETION VOUCHER**

The contract clause entitled "Allowable Cost and Payment" (FAR
52.216-07) provides in paragraph (h)(1) that "...the contractor shall
submit a completion invoice or voucher, designated as such,
**[promptly]{.underline}** \[emphasis added\] upon completion of
work..." The term "promptly" is not defined in the clause. In order to
avoid ambiguity and to ensure expeditious closeout of completed
contracts, the term "promptly" is defined as sixty (60) days from the
actual completion date of the contract unless otherwise approved in
writing by the Contracting Officer. The Contractor shall have up to one
(1) year after completion of the contract effort (or longer, as the
Contracting Officer may approve in writing), or until a revised mutually
acceptable final release has been signed, to submit a revised completion
final voucher, should circumstances warrant. Upon receipt of the final
voucher, the Contracting Officer shall begin actions necessary to
properly close the contract. Processing of the final voucher for payment
shall not begin until compliance by the Contractor with all terms and
conditions of the contract.

**G.9. SMALL BUSINESS AND SMALL DISADVANTAGED BUSINESS SUBCONTRACTING**

The Director of the Office of Small and Disadvantaged Business
Utilization (OSDBU/MRC), USAID, Washington, D.C. 20523-1414, is hereby
designated as the Contracting Officer's representative responsible for
assisting the Contracting

Officer in monitoring, evaluating, and documenting the Contractor's
performance under the clause of this contract entitled "Small, Small
Disadvantaged and Women-Owned Small Business Subcontracting Plan" (FAR
52.219-09).

**G.10 REPRESENTATIONS AND CERTIFICATIONS**

The Representations and Certifications, completed as Section K of this
RFP, leading to award of this contract, are hereby incorporated by
reference and made a part of this contract.

**G.11 MODIFICATION AUTHORITY**

As stated herein, the Contracting Officer shall be the only individual
on behalf of USAID authorized to:

a.  Waive any requirement of this contract;

b.  Modify any term or condition of this contract; or

c.  Accept any non-conforming work.

# 

# SECTION H - SPECIAL CONTRACT REQUIREMENTS

**H.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE**

The following contract clauses pertinent to this section are hereby
incorporated by reference (by Citation number, Title and Date) in
accordance with the clause at "FAR 52.252-2 CLAUSES INCORPORATED B
REFERENCE" in Section I of this contract. See FAR 52.252-2 for an
internet address (if specified) for electronic access to the full text
of a clause.

NUMBER TITLE DATE

FAR FEDERAL ACQUISITION REGULATION (48 CFR Chapter 1)

AIDAR AID ACQUISITION REGULATION (48 CFR Chapter 7)

752.7027 PERSONNEL DEC 1990

**H.2 INTERNATIONAL TRAVEL APPROVAL AND NOTIFICATION REQUIREMENTS**

a\. In accordance with the above clauses, the Contracting Officer hereby
provides prior written approval for international travel, provided that
concurrence with the assignment of individuals outside the United States
is obtained by the Contractor, in writing from the CTO prior to their
assignment abroad. The assignment must be within the terms of this
contract, is subject to availability of funds, and should not be
construed as authorization either to increase the estimated cost or
exceed the obligated amount (See Section B of this Contract). The
Contractor shall retain for audit purposes a copy of each travel
concurrence.

b\. To obtain concurrence, the contractor shall provide the CTO with the
following, reasonably in advance of the travel: name of the traveler,
title/position under the contract, detailed budget for the proposed
international travel, itinerary and class of travel.

## 

## H.3 PERSONNEL COMPENSATION

Any approvals issued pursuant to this section shall be retained by the
Contractor for audit purposes. Approvals issued pursuant to the above
must be within the terms of this contract and shall not serve to
increase the total estimated cost or the obligated amount of this
contract.

a.  Definitions

    1.  As used herein, the terms "Salaries", "Wages", "Consultant
        fees", and "Compensation" mean the periodic remuneration
        received b personnel for professional or technical services
        rendered, exclusive of fringe benefits, travel incentives,
        housing allowances, differentials, or other bonuses as defined
        in the contract clause entitled "Differential and Allowances"
        (AIDAR 752.7028), unless otherwise stated. These terms include
        payment for personnel services, including fees and honoraria.
        They exclude earnings from sources other than the individual's
        professional or technical work, overhead, or other charges (see
        also the contract clause entitled "Personnel Compensation"
        \[AIDAR 752.7007\]).

    2.  As used herein, the term "Employee" means a direct employee as
        defined by the U.S. Internal Revenue Service. The compensation
        of a U.S. citizen or a permanent resident who is an employee of
        a U.S. contractor is reported on IRS Form W-2. The terms
        "salaries" and "wages" refer to compensation, excluding fringe
        benefits, provided to an employee.

    3.  As used herein, the term "Consultant" means an individual who is
        not an employee of the contractor, but who is engaged from
        time-to-time on a temporary or intermittent basis for specific
        tasks, who does not share in the Contractor's fringe benefits
        package, and for whom the Contractor does not specifically
        maintain office space, and/or is an "independent contractor" as
        defined by the U.S. Internal Revenue

> Service. Consultant fees for such individuals are reported on IRS Form
> 1099 rather than Form W-2. The term "consultant fees" refers to
> compensation provided to a consultant.

4.  "Personnel" means both employees and consultants.

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b.  Limitations

> Compensation of personnel which is charged as a direct cost under this
> contract, like other costs, will be reimbursable by USAID in
> accordance with the contract clause entitled "Allowable Cost and
> Payment" (FAR 52.216-07) and other applicable provisions of this
> contract but subject to the following additional specified
> understandings which set limits on reimbursement by USAID of items of
> cost which otherwise might be reasonable, allocable, and allowable.

c.  Approvals

> Salaries and wages may not exceed the Contractor's established written
> policy, including the Contractor's established pay scale for
> equivalent classifications of employees, which will be certified to by
> the Contractor, nor may any individual salary or wage, without the
> approval of the Contracting Officer, exceed the employee's current
> salary or wage or the highest rate of annual salary or wage received
> during any full year of the immediately preceding three years. If the
> Contractor does not have a pay scale approved by the Contracting
> Officer for this contract, the Contractor will be required to obtain
> the Contracting Officer's approval for each long- and short-term
> person hired by the Contractor. Each individual requires will require
> justification, based on a position description and market survey for
> the proposed salary.

Additionally, it is USAID policy that if an employee's base salary plus
overseas recruitment incentive, if any (see AIDAR 731.205-70) exceeds
the USAID Contractor Salary Threshold (USAID CST), as stated in USAID's
Automated Directives System (ADS) Chapter 302 -- USAID Direct
Contracting (available at
<http://www.usaid.gov/policy/ads/300/302.pdf>), it will be allowable
only if approved in writing by the Contracting Officer. The Contracting
Officer shall only provide such approval after internal Agency
procedures for review/approval of salaries in excess of the USAID CST in
ADS 302 have been followed. USAID policies on compensation of third
country national or cooperating country national employees are set forth
in AIDAR 722.170

> [For U.S. Consultants]{.underline}, No compensation for U.S.
> consultant will be reimbursed unless their use under the contract has
> the advanced written approval of the CTO, and if such provision has
> been made or approval given, compensation shall not exceed, without
> specific approval of the rate by the Contracting Officer, (1) the
> current compensation or the highest rate of annual compensation
> received by the consultant during any full year of the immediately
> preceding three years, or (2) the USAID CST, whichever is less.

[For third country and cooperating country nationals]{.underline}, No
compensation for third country or cooperating country nationals will be
reimbursed unless their use under the contract has the prior written
approval of the CTO. Salaries and wages paid to such persons may not,
without specific written approval of he Contracting Officer, exceed the
current compensation of highest rate of annual compensation received by
the consultant during any full year of the immediately preceding three
years; the level of salaries paid to equivalent personnel at
USAID/Philippines; or the prevailing rates in the Philippines paid to
personnel of equivalent technical competence as determined by USAID, In
no event shall compensation for such persons exceed USAID/Philippines'
compensation plan for FSN-13 unless approved in advance and in writing
by the Contracting Officer.

> NOTE: The maximum daily rate is determined by dividing the annual
> salary by 2080 and multiplying the quotient by 8.

d.  Initial Salary Approval

> The initial starting salaries of all employees whose salaries are
> charged as a direct cost to this contract must be approved in advance
> and in writing by the Contracting Officer.
>
> The initial compensation of consultants proposed to exceed the
> limitation set forth in letter c. above must be approved in advance
> and in writing, by the Contracting Officer. In all cases, a
> reimbursement of amounts in excess of the USAID CST require approval
> by the USAID Procurement Executive.

e.  Annual Salary Increases

> Annual salary increases may not exceed those provided by the
> Contractor's established policy.
>
> With respect to employees performing work overseas under this
> contract, one annual salary increase may be granted, subject to the
> Contractor's established policy, provided it is not more than 3% for
> expatriate staff nor more than \_\_\_\_% (to be proposed by the
> Offeror) for local staff, applied to the employee's base salary, after
> an employee's completion of each twelve month period of satisfactory
> services under the contract.
>
> Annual salary increases exceeding this limitation or exceeding the
> USAID CST rate or exceeding the maximum salary of an FSN-13 for third
> country or cooperating country national, may be granted only with
> advance written approval of the Contracting officer.

f.  Work Week

> For Non-overseas Employees -- The work week for the Contractor's
> non-overseas employees shall not be less than the established practice
> of the Contractor and shall not be less than 8 hours a day and 40
> hours a week.
>
> For Overseas Employees -- The work week for the Contractor's overseas
> employees shall not be less than 40 hours and shall be scheduled to
> coincide with the work week of the USAID Mission and the Cooperating
> Country associated with this contract.

g.  Salaries During Travel

> Payment of salaries and wages paid while in travel status shall be
> governed by the Contractor's established policies and procedures.
> Salaries and wages paid while in travel status will not be reimbursed
> for a travel period greater than the time required for travel by the
> most direct and expeditious air route.

h.  Return of Overseas Employees

> Salaries and wages paid to an employee serving overseas who is
> discharged by the Contractor for misconduct, inexcusable
> nonperformance, or security reasons will in no event be reimbursed for
> a period that extends beyond the time required to return him promptly
> to his point of origin by the most direct and expeditious air route.

**H.4 AIDAR 752.7004 EMERGENCY LOCATOR INFORMATION (JUL 1997)**

The Contractor agrees to provide the following information to the USAID
Mission Administrative Officer on or before the arrival in the
Cooperating Country of every contract employee or dependent:

-   The individual\'s full name, home address, and telephone number.

-   The name and number of the contract, and whether the individual is
    an employee or dependent.

-   The contractor\'s name, home office address, and telephone number,
    including any after-hours emergency number(s), and the name of the
    contractor\'s home office staff member having administrative
    responsibility for the contract.

-   The name, address, and telephone number(s) of each individual\'s
    next of kin.

-   Any special instructions pertaining to emergency situations such as
    a power of attorney designees or alternate contact person.

**H.5 PHYSICAL FITNESS/MEDICAL CLEARANCE**

In accordance with AIDAR 752.7033, "Physical Fitness", all long- and
short-term members of the Contractor's staff and their dependents shall
obtain a medical clearance prior to departing for assignment overseas
under this contract. The full instructions regarding the procedures for
obtaining the required clearance are in the aforementioned clause.

For all employees (other than those hired in the Cooperating Country)
and their authorized dependents, it shall be certified by a licensed
doctor of medicine that in his/her opinion the employee is physically
qualified to engage in the type of activity for which he/she is to be
employed and that he/she and his/her dependents are physically able to
reside in the country. If the Contractor has no such medical certificate
on file prior to the departure for the cooperating country of any
employee or authorized dependent, and such employee is unable to perform
the type of activity for which he/she is employed and complete his/her
tour of duty because of any physical disability (other than physical
disability arising from an accident while employed under this contract),
the Contractor shall not be reimbursed for the return transportation of
the physically-disabled employee or dependent required to return because
of such disability.

To avoid inappropriate assignments, Contractor employees and dependents
must have a recent physical examination prior to travel to the
Philippines. This physical examination should be complete including
laboratory studies. It is the responsibility of the Contractor to obtain
such examinations and medical certificate prior to going to post. A copy
of the examination should be kept by the Contractor, employee and
dependent and brought with them to post.

## H.6 MEDICAL EVACUATION (MEDEVAC) SERVICES (APR 2006)

(Pursuant to class deviation OAA-DEV-2006-1C)

a.  Contractor must provide MEDEVAC service coverage to all U.S.
    citizen, U.S. resident alien, and Third Country National employees
    and their authorized dependents (hereinafter "individual") while
    overseas under a USAID-financed direct contract. USAID will
    reimburse reasonable, allowable, allocable costs for MEDEVAC service
    coverage incurred under the contract. The Contracting Officer will
    determine the reasonableness, allowability, and allocability of the
    costs based on the applicable cost principles and in accordance with
    cost accounting standards.

b.  Exceptions:

> 1\) The Contractor is not required to provide MEDEVAC insurance to
> eligible employees and their dependents with a health program that
> includes sufficient MEDEVAC coverage as approved by the Contracting
> Officer.

2\) The Mission Director may make a written determination to waive the
requirement for such coverage. The determination must be based on
findings that the quality of local medical services or other
circumstances obviate the need for such coverage for eligible employees
and their dependents located at post.

c\. Contractor must insert a clause similar to this clause in all
subcontracts that require performance by contractor employees overseas.

**H.7 DEFENSE BASE ACT INSURANCE**

Pursuant to the contract clause entitled "Worker's Compensation
Insurance (Defense Base Act)" (AIDAR 752.228-3), the insurance carrier
under contract with USAID to provide DBA insurance is:

Rutherfoord International, Inc.

5500 Cherokee Avenue, Suite 300

Alexandria, VA 22312

Points of Contact: Ms. Diane Proctor or Ms. Tanya Jones, (703) 813-6506

Hours of Operation are: 8am to 5pm (EST)

Telefax: (703) 354-0370

Website: [www.rutherfoord.com](http://www.rutherfoord.com/).

**H.8 TRAVEL EXPENSES RELATED TO MISCONDUCT OR INEXCUSABLE
NONPERFORMANCE**

Notwithstanding any other provision of this contract, if any of the
personnel utilized hereunder are discharged by the Contractor for
misconduct or inexcusable nonperformance, travel and transportation
costs associated with the assignment of substitute personnel therefore
shall not be an allowable cost under this contract.

Misconduct shall be defined as the deliberate and/or repeated disregard
for the laws and regulations of the Cooperating Country or of USAID, the
continued existence of conflict of interest after advice that such
conflict exists, or general behavior unbecoming a professional serving
as part of the U.S. foreign assistance program (see also the contract
clause entitled "Personnel" \[AIDAR 752.7027\]).

Inexcusable nonperformance shall be defined as unauthorized absences or
failures to undertake and/or complete assigned tasks which are within
the scope of work of this contract, when such absences or failures are
within the control of the individual.

## H.9 AUTHORIZED GEOGRAPHIC CODE

The authorized geographic code for procurement of goods and services
under this contract is \"000\". In addition, the Cooperating Country is
an authorized source for local procurement in accordance with 22 CFR
228.40.

**H.10 LOGISTIC SUPPORT**

The Contractor shall be responsible for furnishing all logistic support.
Except as provided herein, the Contractor is prohibited from using any
U.S. Government facilities or equipment or U.S. Government personnel in
the performance of this contract, unless their use is authorized, in
advance and in writing by the Contracting Officer.

**H.11 LANGUAGE REQUIREMENTS**

Fluent English is required for Contractor's long- and short-term
expatriate professionals. Proficiency in English and a working knowledge
of any of the local Mindanao languages and dialects (such as Cebuano,
Maguindanaoan, Maranaoan, Taosug) is required for local professional and
key administrative personnel.

**H.12 PROCUREMENT AND SUBCONTRACTING**

USAID has eligibility rules concerning goods and commodities,
commodity-related services, and suppliers of goods and services (other
than commodity-related services). These rules are set forth in USAID\'s
Automated Directives Systems which, as amended from time to time, is
incorporated by reference as a part of this contract (see the clause of
this contract entitled \"Source and Nationality Requirements\" \[AIDAR
752.225-70\]). For the purposes of this contract, the following apply:

a.  The authorized geographic code of "000" (US) applies for both prime
    contractor and all subcontracts.

b.  Suppliers of Goods and Commodities. The suppliers of goods and
    commodities shall have their nationality in the U.S. (USAID
    geographic code 000) except as the Contracting Officer may otherwise
    agree to in writing.

c.  Suppliers of Services (Other than Commodity-Related Services). The
    suppliers of services (other than commodity related services) shall
    have their nationality in the US (USAID Geographic Code 000) except
    as the Contracting Officer may otherwise agree to in writing.

d.  Eligibility of Commodities Determined by Ineligibility of
    Commodity-related Services. Notwithstanding the authorized
    geographic code set forth above, commodities shipped by a
    transportation medium owned, operated, or under the control of any
    country not included in USAID Geographic Code 935 (Special Free
    World) are ineligible for USAID financing hereunder, regardless of
    whether such transportation costs are financed hereunder.

e.  Commodities are ineligible for USAID financing hereunder if shipped
    on a vessel that USAID has designated as ineligible, regardless of
    whether such transportation costs are financed hereunder. With
    respect to Paragraph (c) of the clause of this contract entitled,
    \"Source and Nationality Requirements\" (AIDAR 752.7004), if the
    cooperating Country discriminates against any marine insurance
    company authorized to do business in any state of the United States,
    failure to insure all USAID-financed commodities with U.S. insurance
    companies shall render the commodities ineligible for USAID
    financing hereunder.

f.  Local Cost Financing with U.S. Dollars. Pursuant to the clause of
    this contract entitled \"Local Cost Financing With U.S. Dollars\"
    (AIDAR 752.7017), indigenous goods and imported items are eligible
    for local cost financing, subject to the restrictions stated in said
    clause, and USAID\'s Automated Directive Systems, which, from time
    to time may be amended.

## H.13 NONEXPENDABLE PROPERTY PURCHASES AND INFORMATION TECHNOLOGY RESOURCES

The Contractor is hereby authorized to purchase the following equipment
and/or IT resources:

(To be proposed by Offeror and completed during negotiations.)

**H.14 AUTOMATION EQUIPMENT**

The Contractor must obtain specific approval of USAID/Washington, IRM,
for any purchases of automation equipment (e.g., computers, word
processors, etc.), software, or related services made hereunder, if the
total cost of such purchases will exceed \$100,000.

## H.15 SUBCONTRACTING PLAN AND THE SF 294 -- SUBCONTRACTING REPORT FOR INDIVIDUAL CONTRACTS AND SF 295 -- SUMMARY CONTRACTING REPORT

The Contractor\'s subcontracting plan dated \_\_\_\_\_\_\_\_\_\_ is
hereby incorporated as a material part of this contract.

In accordance with FAR 52.219-9, SF 294 and SF 295 must be filed with
the official government electronic Subcontracting Reporting System
(eSRS). The official website is: http://www.esrs.gov.

**H.16 KEY SUBCONTRACTOR CLAUSE**

Key subcontractors are those organizations named in the Contractor's
technical proposal that will furnish supplies or services amounting to
\$10,000,000 or more for performance of the Statement of Work of the
prime contract. The effort of key subcontractor/s is directly and
specifically tied to the execution of the contract Statement of Work.
The organization/s listed below was/were identified by the Contractor as
key subcontractor/s.

[Name]{.underline} [Description of the Work]{.underline}

[(organization name)]{.underline} [(brief description or reference to
section in SOW)]{.underline}

[\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_]{.underline}
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.

The Contractor must seek prior approval from the Contracting Officer
before replacing any key subcontractor. The request must:

a.  Be in writing.

b.  Be submitted reasonably in advance, as determined by the Contracting
    officer so as not to impede progress of the work.

c.  Be written in sufficient detail to permit the Contracting officer to
    assess the impact the change will have on the program, and

d.  Identify the substitute organization, including instances where the
    Contractor is the substitute organization.

Government comments on the key subcontractor's performance and the prime
contractor's use of key subcontractors will be included in the
Contractor Performance Report.

**H.17 GOVERNMENT-OWNED ORGANIZATIONS**

Except as the Contracting Officer may otherwise agree to in writing, a
Government Owned Organization, i.e., a firm operated as a commercial
company or other organizations (including nonprofit organizations other
than public educational institutions) which are wholly or partially
owned by governments or agencies thereof, are not eligible for USAID
financing hereunder.

**H.18 APPROVALS**

All purchases of nonexpendable equipment (i.e., property which is
complete in itself, does not lose its identity or become a component
part of another article when put into use, is durable with an expected
service life of two years or more, and which has a unit cost of more
than \$500) will require approval of the Contracting Officer, except as
specified below. Any approvals given pursuant to this paragraph must be
within the terms of this contract, and shall not serve to change them in
any way. The contractor shall retain copies of all such approvals for
audit purposes.

**H.19 COMPETITION AND SUBCONTRACTING**

a.  The contractor shall secure competition to the maximum practical
    extent, as required by the clause of this contract entitled
    \"Competition in Subcontracting\" (FAR 52.244-05). Notwithstanding
    any approvals issued by the Contracting Officer pursuant to Sections
    H, the contractor shall obtain the Contracting Officer\'s consent
    for purchases/subcontracts, if required by the clause of this
    contract entitled, \"Subcontracts\" (FAR 52.244-02).

b.  The Contracting Officer's signature on the contract which includes
    all equipment proposed in the Contractor's proposal or final
    proposal revision fulfills the requirement for prior approval. In
    the event that additional equipment is needed, separate Contracting
    Officer approval(s) must be obtained prior to purchase. Requests for
    additional equipment shall contain the following information:

-   Type of equipment needed;

-   Cost information;

-   Need/justification for purchase;

-   Competitive quotations, usually from at least three (3) sources.

With the exception of any subcontractors identified in the contractor\'s
proposal and/or final proposal revision which were accepted by USAID
through award of this contract, additional subcontracting by the
contractor is not anticipated, except possibly with host country
institutions. Should additional subcontracting (beyond those
subcontracts included in the contractor\'s proposal and/or best and
final offer which was accepted by USAID through award of this contract)
become necessary, the contractor shall compete all such subcontracting
opportunities or provide the contracting Officer with justification for
the lack of competition.

**H.20 GOVERNMENT PROPERTY**

With respect to nonexpendable equipment purchased by the Contractor
hereunder, the contractor shall comply with all requirements of the
clauses of this contract entitled \"Government Property (Cost
Reimbursement, Time-and-Material, or Labor-Hour Contracts)\" (FAR
52.245-05) \"Government Property \-- AID Reporting Requirements\" (AIDAR
752.245-70), and Title To and Care of Property\" (AIDAR 752-245-71).

**H.21 SECURITY**.

The contractor must be aware of security conditions in the Philippines,
particularly in the project sites in Mindanao, and, by entering into the
contract, assumes full responsibility for the safety of its employees.
Prior to commencing work in the Philippines, the contractor shall
consult with USAID on procedures to be put in place which will keep the
contractor adequately informed of the security situation and will enable
it to locate and rapidly contact its employees working in the
Philippines in order to advise them of situations or changed conditions
which could adversely affect

their security. Contractors and their dependents are required to follow
all Security Advisories, Pyramid Alerts and Warden Notices that are
issued at post.

In keeping abreast of security conditions in the Philippines, the
contractor shall seek information from the U.S. Embassy Regional
Security Office (RSO) and USAID for all areas where its employees work
or travel.

The Contractor shall designate an employee, and an alternate, who will
be responsible for contacting employees in the event that USAID requests
the Contractor to do so. The Contractor shall provide USAID with the
name, home and e-mail addresses, and home and mobile phone numbers of
the designated employee. The Contractor shall ensure that USAID has
available at all times a current telephone number in country where
either the designated individual or an alternate has the means to
rapidly contact all other affected employees.

**H.22. PHILIPPINE VISAS FOR CONTRACTOR STAFF AND DEPENDENTS.**

The Contractor shall be responsible for securing the appropriate visas
for its long-term/short-tem staff, including accompanying dependents.
The contractor is advised that special, non-immigrant, multiple entry
visas under Section 47(a)(2) of the Philippine Immigration Act of 1940
are needed for its employees and their dependents. Fifty-nine day visas
need to be obtained before coming to post. USAID may provide the
Contractor\'s in-country staff with a certification regarding their
employment under this contract.

**H.23. GOVERNMENT PROPERTY**

With respect to nonexpendable equipment purchased by the Contractor, the
Contractor shall comply with all requirements of the contract clauses
entitled "Government Property (Cost Reimbursement, Time and Material, or
Labor-Hour Contracts)" (FAR 52.245-05), "government Property -- Aid
Reporting Requirements" (AIDAR 752.245-70), and "Title to and Care of
Property" (AIDAR 752.245-71).

Title to all nonexpendable property purchased with contract funds for
direct expenditures under this contract shall at all times be in the
name of the USAID Project until USAID directs otherwise in accordance
with AIDAR clause 752.245-71, "Title to and Care of Property"; but all
such property shall be under the custody and control of the Contractor
until the owner of title directs otherwise, or until completion of work
under this Contract or its termination.

**H.24 USE OF PROJECT VEHICLES**

It is USAID policy that the contractor shall use project vehicles only
for official transportation. Personal use of project vehicles (whether
purchased or rented) is not authorized. Prohibited uses of
USAID-financed vehicles include recreation or commuting (unless
commuting use is approved by the Contracting Officer and a fee-for-use
system is established). The USAID Contracting Officer must approve any
exception to this policy.

**H.25. ORDINARY COURSE OF BUSINESS**

With respect to the contract clauses entitled "allowable Cost and
Payment" (FAR 52.216-07), and "Documentation for Payment" (AIDAR
752.7003), it is understood and agreed that the contractor may, in some
circumstances, invoice and be paid for recorded costs for items or
services purchased directly for this contract, even though the
Contractor has not yet paid for those items or services; provided, that
such costs are paid in the ordinary course of business. "The ordinary
course of business" is defined in accordance with the principles
published by the Prompt Payment Act, Public law 97-177 (96 Sat. 85, 31
USC 1801), i.e., within 30 days after the Contractor's receipt of
payment from USAID for such costs. In those instances where the
Contractor properly invoices and is paid for recorded costs which have
not yet been paid by the Contractor, the Contractor agrees to pay all
such costs and especially employee compensation, consultants,
subcontractors, suppliers, support of participants, and costs incurred
in the Cooperating Country, in the ordinary course of business. Failure
to do so may be considered nonperformance by the Contractor.

**H.26 CONTRACTOR'S PROPOSAL AND/OR FINAL PROPOSAL REVISION**

The Contractor's original proposal and/or Final Proposal Revision which
was (were) accepted by USAID through award of this contract may be used
to substantiate negotiated agreements between the parties to this
contract but are not incorporated as a part hereof and shall not serve
to supersede any terms and conditions of this contract.

**H.27 CONFLICTS OF INTEREST**

It is understood and agreed that some of the work required hereunder may
place the Contractor, or its personnel or its subcontractors, or their
personnel (hereinafter referred to collectively as "Contractor"), in the
position of having a potential personal or organizational conflict of
interest (OCI), i.e., because of other activities or relationships with
other persons: ( a) The Contractor is unable or potentially unable to
render impartial assistance or advice; (b) The Contractor's objectivity
in performing the contract is or might be impaired; or (c) The
Contractor may receive an unfair competitive advantage; or (d) The
Contractor may have a financial or other personal interest which would
impair his/her objectivity and/or from which he/she would improperly
benefit. Further discussion of OCIs may be found in FAR Part 9.5.

The performance/actions of personnel under this contract will be imputed
to the Contractor (or subcontractor) by whom they are employed or
retained, and the performance/actions of any subcontractor will be
imputed to the Contractor, unless the Contractor, on a case-by-case
basis, can demonstrate otherwise and satisfy the Contracting Officer
that such imputation is unreasonable.

In accordance with the clause of this contract entitled "Organization
Conflicts of Interest Discovered After Award" (AIDAR 752.209-71), the
Contractor agrees not to undertake any activity which may involve a
personal conflict of interest, or an OCI without first notifying the
Contracting Officer of such potential conflict and receiving the
Contracting Officer's authorization to undertake the activity.

If it is discovered that the Contractor engaged in any activities in
violation of the restriction placed by a Contracting Officer on the
Contractor's future activities, other remedies (including termination of
this contract for default, debarment or suspension, and those permitted
by the contract clauses entitled "Cancellation, Recision, and Recovery
of Funds for Illegal or Improper Activity" (FAR 52.203-08) and "Price or
Fee Adjustment for Illegal or Improper Activity" (FAR 52.203-10), may be
taken by USAID.

Nothing in this provision precludes the application of any other
remedies available to USAID by law, regulation, or other provisions of
this contract.

**H.28. EXECUTIVE ORDER ON TERRORISM FINANCING (FEB 2002)**

The contractor is reminded that US Executive Orders and US law prohibit
transactions with, and the provision of resources and support to,
individuals and organizations associated with terrorism. It is the legal
responsibility of the contractor to ensure compliance with these
Executive Orders and laws. This provision must be included in all
subcontracts or sub-awards, if any.

**H.29 REPORTING OF FOREIGN TAXES**

a.  The contractor must annually submit a report by April 16 of the next
    year.

b.  Contents of Report.

> The report must contain:
>
> \(i\) Contractor's name.
>
> \(ii\) Contact name with phone, fax and email.
>
> \(iii\) Contract number/s.

\(iv\) Amount of foreign taxes assessed by a foreign government \[each
foreign government must be listed separately\] on commodity purchase
transactions valued at \$500 or more financed with US foreign assistance
funds under this contract during the prior US fiscal year.

\(v\) Only foreign taxes assessed by the foreign government in the
country receiving US assistance is to be reported. Foreign taxes by a
third party foreign government are not to be reported. For example, if
an assistance program for Lesotho involves the purchase of commodities
in South Africa using foreign assistance funds, any taxes imposed by
South Africa would no be reported in the report for Lesotho (or South
Africa).

\(vi\) Any reimbursements received by the Contractor during the period
in (iv) regardless of when the foreign tax was assessed and any
reimbursements on the taxes reported in (iv) received through March 31.

\(vii\) Report is required even if the Contractor did not pay any taxes
during the report period.

\(viii\) Cumulative reports may be provided if the contractor is
implementing more than one program in a foreign country.

c.  Definitions.

> For purposes of this clause:
>
> \(i\) "Agreement" includes USAID direct and country contracts, grants,
> cooperative agreements and interagency agreement

\(ii\) "Commodity" means any material, article, supply, goods, or
equipment.

\(iii\) "Foreign Government" includes any foreign governmental entity.

iv. "Foreign taxes" means value-added taxes and custom duties assessed
    by a foreign government on a commodity. It does not include foreign
    sales taxes.

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d.  Where. Submit the original reports to: The Controller, Regional
    Financial Services Center, USAID/Philippines, 8/F PNB Financial
    Center, Pres. Diosdado Macapagal Blvd., Pasay City 1308,
    Philippines. An electronic copy of the report can be sent to:
    <FAlmeida@usaid.gov>. Please include the words "Section 579 Report"
    in the subject line. One copy of each report should be sent to the
    CTO for the award and one copy to the Contracting/Agreement Officer,
    <REdler@usaid.gov> with a copy to <Mdela@usaid.gov>.

e.  Subagreements. The contractor/recipient must include this reporting
    requirement in all applicable subcontracts, subgrants and other
    subagreements.

f.  For further information, see <http://www.state.gov/m/rm/c10443.htm>.

**H.30 USAID DISABILITY POLICY -- ACQISITION (DECEMBER 2004)**

a.  The objectives of the USAID Disability Policy are (1) to enhance the
    attainment of United States foreign assistance program goals by
    promoting the participation and equalization of opportunities of
    individuals with disabilities in USAID policy, country and sector
    strategies, activity designs and implementation; (2) to increase
    awareness of issues of people with disabilities both within USAID
    programs and in host countries; (3) to engage other U.S. government
    agencies, host country counterparts, governments, implementing
    organizations and other donors in fostering a climate of
    nondiscrimination against people with disabilities; and (4) to
    support international advocacy for people with disabilities. The
    full text of the policy paper can be found at the following website:
    <http://www.usaid.gov/about/disability/DISABPOL.FIN.html>.

b.  USAID therefore requires that the contractor not discriminate
    against people with disabilities in the implementation of USAID
    programs and that it make every effort to comply with the objectives
    of the USAID Disability Policy in performing this contract. To that
    end and within the scope of the contract, the contractor's actions
    must demonstrate a comprehensive and consistent approach for
    including men, women and children with disabilities.

**H.31 AIDAR 752.225-70 SOURCE, ORIGIN AND NATIONALITY REQUIREMENTS (FEB
1997)**

a\. Except as may be specifically approved by the Contracting Officer,
all commodities (e.g., equipment, materials, vehicles, supplies) and
services (including commodity transportation services) which will be
financed under this contract with U.S. dollars shall be procured in
accordance with the requirements in 22 CFR Part 228, "Rules on Source,
Origin and nationality for Commodities and Services Finance by USAID".
The authorized source for procurement is Geographic Code 000 unless
otherwise specified in the schedule of this contract. Guidance
eligibility of specific goods or services may be obtained from the
Contracting Officer.

b\. Ineligible goods and services. The Contractor shall not procure any
of the following goods or services under this contract:

1\. Military equipment

2\. Surveillance equipment

3\. Commodities and services for support of police and other law
enforcement activities

4\. Abortion equipment and services

5\. Luxury goods and gambling equipment, or

6\. Weather modification equipment.

c\. Restricted goods. The Contractor shall not procure any of the
following goods or services without the prior written approval of the
Contracting Officer:

1\. Agricultural commodities

2\. Motor vehicles

3\. Pharmaceuticals and contraceptive items

4\. Pesticides

5\. Fertilizer

6\. Used equipment, or

7\. U.S. government-owned excess property.

If USAID determines that the Contractor has procured any of these
specific restricted goods under this contract without the prior written
authorization of the Contracting Officer, and has received payment for
such purposes, the Contracting Officer may require the Contractor to
refund the entire amount of the purchase.

**H.32 AIDAR 752.225-71 LOCAL PROCUREMENT (FEB 1997)**

a\. Local procurement involves the use of appropriated funds to finance
the procurement of goods and services supplied by local businesses,
dealers or producers, with payment normally being in the currency of the
cooperating country.

b\. All locally-financed procurements must be covered by source/origin
and nationality waivers as set forth in Subpart F of 22 CFR Part 228
except as provided for in 22 CFR 228.40, Local procurement.

**H.33 HOST COUNTRY TAXES**

Under the bilateral agreement between USAID/Philippines and the
Government of the Philippines (GRP), development assistance programmatic
funds are exempt from taxes to the GRP. As such, USAID does not finance
any identifiable host country taxes. The Contractor is responsible for
asserting and obtaining the necessary tax exemptions. On request
USAID/Philippines will provide available documentation to support
allowable exemption from host-country taxes.

The GRP has a Value Added Tax (VAT) of 12% that it levies on all
commercial transactions. The VAT is not an allowable cost under this
contact. Before incurring this tax, the Contractor shall contact the CTO
about an exemption certificate from VAT.

With respect for FAR Clause 52.229.08 entitled "Taxes -- Foreign Cost
Reimbursement Contracts" (MAR 1990), the following shall apply: The
Contractor and those of its employees as authorized under this contract,
who are not citizens or permanent residents of the Philippines shall be
free of all direct taxes, fees, levies, or impositions imposed under the
laws of the Philippines with respect to all work and services performed
under this contract. The personal effects of the Contractor and those of
employees who are not citizens or permanent residents of the Philippines
shall be free of all taxes imposed under the laws in effect in the
Philippines (with respect to such personal effects); and the Government
of the Philippines will allow the Contractor to import free of customs
and duties such materials and equipment as may be required for the
services under this contract provided such items are consumed in
Contractor performance, re-exported or transferred to the Government of
the Philippines at the conclusion of the contract.

**H.34 AIDAR 726.7102 RELOCATION OF U.S. BUSINESSES, ASSISTANCE TO
EXPORT PROCESSING ZONES, INTERNATIONALLY RECOGNIZED WORKERS' RIGHTS (JAN
1994)**

No funds or other support provided hereunder may be used in an activity
reasonably likely to involve the relocation or expansion outside of the
United States of an enterprise located in the United States if non-U.S.
production in such relocation or expansion replaces some or all of the
production of, and reduces the number of employees at, said enterprise
in the United States.

No funds or other support provided hereunder may be used in an activity
the purpose of which is the establishment or development in a foreign
country of an export processing zone or designated area where the labor,
environmental, tax, tariff, and safety laws of the country would not
apply, without the prior approval of USAID.

No funds or other support provided hereunder may be used in an activity
which contributes to the violation of internationally recognized rights
of workers in the recipient country, including those in any designated
zone or area in that country.

**H.35 AIDAR 752.7028 DIFFERENTIALS AND ALLOWANCES (JUL 1996)**

a\. [Post differential]{.underline}. Post differential is an additional
compensation for services at places in foreign areas where conditions of
environment differ substantially from conditions of environment in the
continental United States and warrant additional compensation as a
recruitment and retention incentive. In areas where post differential is
paid to USAID direct-hire employees, post differential not to exceed the
percentage of salary as is provided such USAID employees in accordance
with the Standardized Regulations (Government Civilians, Foreign Areas),
Chapter 500 (except the limitation contained in Section 552, "Ceiling on
Payment") Tables -- Chapter 900, as from time to time amended, will be
reimbursable hereunder for employees in respect to amounts earned during
the time such employees actually spend overseas on work under this
contract. (See Standardized Regulation 510) When such post differential
is provided to regular employees of the Contractor, it shall be payable
beginning on the date of arrival at the post of assignment and continue,
including periods away from post on official business, until the close
of business on the day of departure from post of assignment en route to
the United States. Sick or vacation leave taken at or away from the post
of assignment will not interrupt the continuity of the assignment or
require a discontinuance of such post differential payments, provided
such leave is not taken within the United States or the territories of
the United States. Post differential will not be payable while the
employee is away from his/her post of assignment for purposes of home
leave. Short-term employees shall be entitled to post differential
beginning with the forty-third (43^rd^) day at post.

c.  [Living quarters allowance.]{.underline} Living quarters allowance
    is an allowance granted to reimburse an employee for substantially
    all of his/her cost for either temporary or residence quarters
    whenever Government-owned or Government-rented quarters are not
    provided to him/her at his/her post without charge. Such costs are
    those incurred for temporary lodging (temporary quarters subsistence
    allowance) or one unit of residence quarters (living quarters
    allowance) and include rent, plus any costs not included therein for
    heat, light, fuel, gas, electricity and water. The temporary
    quarter's subsistence allowance and the living quarter's allowances
    are never both payable to an employee for the same period of time.
    The Contractor will be reimbursed for payments made to employees for
    a living quarters allowance for rent and utilities if such
    facilities are not supplied. Such allowance shall not exceed the
    amount paid USAID employees of equivalent rank in the Cooperating
    Country, in accordance with either the Standardized Regulations
    (Government Civilians, Foreign

> Areas), Chapter 130, as from time to time amended, or other rates
> approved by the Mission Director. (See Standardized Regulation 130)
> Subject to the written approval of the Mission Director, short-term
> employees may be paid per diem (in lieu of living quarters allowance)
> at rates prescribed by the Federal Travel Regulations, as from time to
> time amended, during the time such short-term employees spend at posts
> of duty in the Cooperating Country under this contract. In authorizing
> such per diem rates, the Mission Director shall consider the
> particular circumstances involved with respect to each such short-term
> employee including the extent to which meals and/or lodging may be
> made available without charge or at nominal cost by an agency of the
> United States Government or of the Cooperating Government and similar
> factors.

b.  [Temporary quarters subsistence allowance.]{.underline} Temporary
    quarters subsistence allowance is a quarters allowance granted to an
    employee for the reasonable cost of temporary quarters incurred by
    the employee and his family for a period not in excess of (i) 90
    days after first arrival at a new post in a foreign area or a period
    ending with the occupation of residence (permanent) quarters, if
    earlier, and (ii) 30 days immediately preceding final departure from
    the post subsequent to the necessary vacating of residence quarters,
    unless an extension is authorized in writing by the Mission
    Director. The Contractor will be reimbursed for payments made to
    employees and authorized dependents for temporary quarters
    subsistence allowance, in lieu of living quarters allowance, not to
    exceed the amount set forth in the Standardized Regulations
    (Government Civilians, Foreign Areas), Chapter 120, as from time to
    time amended.

c.  [Post allowance.]{.underline} Post allowance is a cost-of-living
    allowance granted to an employee officially stationed at a post
    where the cost of living, exclusive of quarters cost, is
    substantially higher than in Washington, D.C. The Contractor will be
    reimbursed for payments made to employees for post allowance not to
    exceed those paid USAID employees in the Cooperating Country, in
    accordance with the Standardized Regulations (Government Civilians,
    Foreign Areas), Chapter 220, as from time to time amended. (See
    Standardized Regulation 220)

d.  [Supplemental post allowance.]{.underline} Supplemental post
    allowance is a form of post allowance granted to an employee at
    his/her post when it is determined that assistance is necessary to
    defray extraordinary subsistence costs. The Contractor will be
    reimbursed for payments made to employees for supplemental post
    allowance not to exceed the amount set forth in the Standardized
    Regulations (Government Civilians, Foreign Areas), Chapter 230, as
    from time to time amended. (See Standardized Regulation 230)

e.  [Educational allowance.]{.underline} Educational allowance is an
    allowance to assist an employee in meeting the extraordinary and
    necessary expenses, not otherwise compensated for, incurred by
    reason of his/her service in a foreign area in providing adequate
    elementary and secondary education for his/her children. The
    Contractor will be reimbursed for payments made to regular employees
    for educational allowances for their dependent children in amounts
    not to exceed those set forth in the Standardized Regulations
    (Government Civilians, Foreign Areas), Chapter 270, as from time to
    time amended. (See Standardized Regulation 270)

f.  [Educational travel.]{.underline} Educational travel is travel to
    and from a school in the United States for secondary education (in
    lieu of an educational allowance) and for college education. The
    Contractor will be reimbursed for payments made to regular employees
    for educational travel for their dependent children provided such
    payment does not exceed that which would be payable in accordance
    with the Standardized Regulations (Government Civilians, Foreign
    Areas) Chapter 280, as from time to time amended. (See Standardized
    Regulation 280) Educational travel shall not be authorized for
    regular employees whose assignment is less than two years.

g.  [Separate maintenance allowance.]{.underline} Separate maintenance
    allowance is an allowance to assist an employee who is compelled, by
    reason of dangerous, notably unhealthful, or excessively adverse
    living conditions at his/her post of assignment in a foreign area,
    or for the convenience of the Government, to meet the additional
    expense of maintaining his/her dependents elsewhere than at such
    post. The Contractor will be reimbursed for payments made to regular
    employees for a separate maintenance allowance not to exceed that
    made to USAID employees in accordance with the Standardized
    Regulations (Government Civilians, Foreign Areas) Chapter 260, as
    from time to time amended. (See Standardized Regulation 260)

h.  [Payments during evacuation.]{.underline} The Standardized
    Regulations (Government Civilians, Foreign Areas) provide the
    authority for efficient, orderly, and equitable procedure for the
    payment of compensation, post differential and

> allowances in the event of an emergency evacuation or employees or
> their dependents, or both, from duty stations for military or other
> reasons or because of imminent danger to their lives. If evacuation
> has been authorized by the Mission Director, the Contractor will be
> reimbursed for payments made to employees and authorized dependents
> evacuated from their post of assignment in accordance with the
> Standardized Regulations (Government Civilians, Foreign Areas) Chapter
> 600, as from time to time amended. (See Standardized Regulation 600)

i.  [Danger pay allowance.]{.underline}

> \(1\) The contractor will be reimbursed for payments made to its
> employees for danger pay not to exceed that paid USAID employees in
> the cooperating country, in accordance with the Standardized
> Regulations (Government Civilians, Foreign Areas) Chapter 650, as from
> time to time amended. (See Standardized Regulation 650)
>
> \(2\) Danger pay is an allowance that provides additional compensation
> above basic compensation to an employee in a foreign area where civil
> insurrection, civil war, terrorism or wartime conditions threaten
> physical harm or imminent danger to the health or well-being of the
> employee. The danger pay allowance is in lieu of that part of the post
> differential which is attributable to political violence.
> Consequently, the post differential may be reduced while danger pay is
> in effect to avoid dual crediting for political violence.

**H.36 REQUIRED INSURANCE**

The Contractor shall procure and maintain during the entire period of
its performance under this contract all insurance pertaining to local
construction in accordance with the laws of the Philippines where
contract or subcontract performance occurs. This may include Workman's
Compensation insurance, automobile liability and property damage
insurance.

**H.37 PERMITS AND RESPONSIBILITIES**

The Contractor is responsible for obtaining all licenses, building
permits, etc., and complying with all laws and building codes of the
Philippines.

**H.38 INDEPENDENT INQUIRIES**

The Contractor shall make local and independent inquiries as to the
nature of the ground to be excavated where works are to be constructed
and it shall also ascertain the position of the site or sites where
materials derived from the excavations are to be deposited. The
Contractor shall obtain its information as to the means of obtaining
local materials required for the works, satisfying itself as to the
quality of the materials and sufficiency of the quantities obtainable
and generally obtain its own information on all matters and the things
that may in anyway influence the Bills of Quantities and satisfy itself
as to the risks and obligations to be undertaken under the contract.

**H.39 FAR 52.204-9  PERSONAL IDENTITY VERIFICATION OF CONTRACTOR
PERSONNEL (NOV 2006)**

a\. The Contractor shall comply with agency personal identity
verification procedures identified in the contract that implement
Homeland Security Presidential Directive-12 (HSPD-12), Office of
Management and Budget (OMB) guidance M-05-24, as amended, and Federal
Information Processing Standards Publication (FIPS PUB) Number 201, as
amended.

b. The Contractor shall insert this clause in all subcontracts when the
subcontractor is required to have routine physical access to a
Federally-controlled facility and/or routine access to a
Federally-controlled information system.

**H.40 HOMELAND SECURITY PRESIDENTIAL DIRECTIVE -12 (HSPD-12) (SEPT
2006)**

In response to the general threat of unauthorized access to federal
facilities and information systems, the President issued Homeland
Security Presidential Directive-12. HSPD-12 requires all Federal
agencies to use a common Personal Identity Verification (PIV) standard
when identifying and issuing access rights to users of
Federally-controlled facilities and/or Federal Information Systems.
USAID will begin issuing HSPD-12 "smart card" IDs to applicable
contracts, using a phased approach. Effective October 27, 2006, USAID
will begin issuing new "smart card" IDs to new contractors (and new
contractor employees) requiring routine access to USAID controlled
facilities and/or access to USAID's information systems. USAID will
begin issuance of the new smart card IDs to existing contractors (and
existing contractor employees) on October 27, 2007. (Exceptions would
include those situations where an existing contractor (or contractor
employee) loses or damages his/her existing ID and would need a
replacement ID prior to October 27, 2007. In those situations, the
existing contractor (or contractor employee) would need to follow the
PIV processes described below, and be issued one of the new smart cards.

Accordingly, before a contractor (including a PSC\* or a contractor
employee) may obtain a USAID ID (new or replacement) authorizing him/her
routine access to USAID facilities, or logical access to USAID's
information systems, the individual must provide two forms of identity
source documents in original form and a passport size photo. One
identity source document must be a valid Federal or state
government-issued picture ID. (Overseas foreign nationals must comply
with the requirements of the Regional Security Office.) USAID/W
contractors must contact the USAID Security Office to obtain the list of
acceptable forms of documentation, and contractors working in overseas
Missions must obtain the acceptable documentation list from the Regional
Security Officer. Submission of these documents, and related background
checks, are mandatory in order for the contractor to receive a building
access ID, and before access will be granted to any of USAID's
information systems. All contractors must physically present these two
source documents for identity proofing at their USAID/W or Mission
Security Briefing. The contractor or his/her Facilities Security Officer
must return any issued building access ID and remote authentication
token to USAID custody upon termination of the individual's employment
with the contractor or completion of the contract, whichever occurs
first.

The contractor must comply with all applicable HSPD-12 and PIV
procedures, as described above, and any subsequent USAID or
government-wide HSPD-12 and PIV procedures/policies, including any
subsequent related USAID General Notices, Office of Security Directives
and/or Automated Directives System (ADS) policy directives and required
procedures. This includes HSPD-12 procedures established in
USAID/Washington and those procedures established by the overseas
Regional Security Office.

In the event of inconsistencies between this clause and later issued
Agency or government-wide HSPD-12 guidance, the most recent issued
guidance should take precedence, unless otherwise instructed by the
Contracting Officer.

The contractor is required to include this clause in any subcontracts
that require the subcontractor or subcontractor employee to have routine
physical access to USAID space or logical access to USAID's information
system.

**H.41 AIRFARE TRAVEL RESTRICTION**

In accordance with FAR clause 31.205-46, costs for airfare in excess of
the lowest customary economy coach or equivalent airfare are unallowable
except when such travel accommodations require circuitous routing,
excessively prolong travel, result in increased cost that would offset
transport savings, are not reasonably adequate for the physical or
medical needs of the traveler as determined by a practicing medical
doctor. However, in order for airfare costs in excess of such economy
coach airfare to be allowable, the applicable condition(s) set forth
above must be documented, justified and specifically approved by the
Contracting Officer.

**H.42 LONG-TERM OVERSEAS ASSIGNMENTS**

Pursuant to the clause of this contract entitled "Personnel" (AIDAR
752.7027), requires long-term personnel assigned overseas to be
appointed for at least two years when the position to be filled by the
individual is for two years or longer; when the position is for less
than a two-year period, the appointment may be made for such lesser
period of time. Notwithstanding any other provisions of this contract
about failure to serve a full appointment, failure of any of the
long-term overseas personnel to complete a full appointment may be
considered nonperformance by the Contractor, unless such failure is
beyond the control, and without the fault or negligence, of the
Contractor.

**H.43 ALLOWANCES FOR THIRD COUNTRY NATIONALS (TCNs) AND COOPERATING
COUNTRY NATIONALS (CCNs)**

Pursuant to the clause of this contract entitled "Travel and
Transportation" (AIDAR 752.7002) and "Differentials and Allowances"
(AIDAR 752.7028), in which TCNs and CCNs are not eligible for
differentials, allowances, or certain other benefits without the
approval of the Mission Director, no allowances are authorized for CCNs
and the following are the allowances authorized for professional TCNs:

-   Country Leave Travel (one-round trip to the individual's home of
    record residence after every two years, with the leave charged to
    annual/vacation leave, provided that the individual agrees to return
    to post for an additional two years, or such lesser time, not less
    than one year, as may remain in the term of this contract, but no
    home leave/home leave travel; and an R&R, limited to one round trip,
    to either the designated R&R point (Sydney) or the individual's home
    of residence (whichever is less), but otherwise in accordance with
    the description of R&R travel described in the clause of this
    contract entitled "Travel and Transportation" (AIDAR 752.7002).

-   Transport to and from Post, including all shipping allowances as
    authorized by the clause of this contract entitled "Travel and
    Transportation" (AIDAR 752.7002).

-   Other differentials and allowances as authorized by the clause of
    this contract AIDAR 752.7028, entitled "Travel and Transportation."

# PART II - CONTRACT CLAUSES

# SECTION I - CONTRACT CLAUSES

## 

## I.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE

The following contract clauses pertinent to this section are hereby
incorporated by reference (by Citation Number, Title, and Date) in
accordance with the clause at FAR \"52.252-2 CLAUSES INCORPORATED BY
REFERENCE\" in Section I of this contract. See FAR 52.252-2 for an
internet address (if specified) for electronic access to the full text
of a clause.

NUMBER TITLE DATE

FEDERAL ACQUISITION REGULATION (48 CFR Chapter 1)

52.202-1 DEFINITIONS JUL 2004

52.203-3 GRATUITIES APR 1984

52.203-5 COVENANT AGAINST CONTINGENT FEES APR 1984

52.203-6 RESTRICTIONS ON SUBCONTRACTOR SALES TO SEP 2006

THE GOVERNMENT

52.203-7 ANTI-KICKBACK PROCEDURES JUL 1995

52.203-8 CANCELLATION, RESCISSION, AND RECOVERY JAN 1997

OF FUNDS FOR ILLEGAL OR IMPROPER ACTIVITY

52.203-10 PRICE OR FEE ADJUSTMENT FOR ILLEGAL OR JAN 1997

IMPROPER ACTIVITY

52.203-11 CERTIFICATION AND DISCLOSURE REGARDING APR 1991

PAYMENTS TO INFLUENCE CERTAIN FEDERAL

TRANSACTIONS

52.203-12 LIMITATION ON PAYMENTS TO INFLUENCE SEP 2005

CERTAIN FEDERAL TRANSACTIONS

52.204-4 PRINTED OR COPIED DOUBLE-SIDED ON RECYCLED AUG 2000

PAPER

52.204-9 PERSONAL IDENTITY VERIFICATION OF JAN 2006

CONTRACTOR PERSONNEL (JAN 2006)

52.209-6 PROTECTING THE GOVERNMENT\'S INTEREST SEP 2006

WHEN SUBCONTRACTING WITH CONTRACTORS

DEBARRED, SUSPENDED, OR PROPOSED FOR

DEBARMENT

52.215-2 AUDIT AND RECORDS\--NEGOTIATION JUN 1999

52.215-8 ORDER OF PRECEDENCE\--UNIFORM CONTRACT OCT 1997

FORMAT

52.215-10 PRICE REDUCTION FOR DEFECTIVE COST OR OCT 1997

PRICING DATA

52.215-12 SUBCONTRACTOR COST OR PRICING DATA OCT 1997

52.215-13 SUBCONTRACTOR COST OR PRICING DATA - OCT 1997

MODIFICATIONS

52.215-14 INTEGRITY OF UNIT PRICES OCT 1997

52.215-15 PENSION ADJUSTMENTS AND ASSET REVERSIONS OCT 2004

52.215-18 REVERSION OR ADJUSTMENT OF PLANS FOR JUL 2005

POSTRETIREMENT BENEFITS (PRB) OTHER

THAN PENSIONS

52.215-19 NOTIFICATION OF OWNERSHIP CHANGES OCT 1997

52.216-7 ALLOWABLE COST AND PAYMENT DEC 2002

52.216-8 FIXED-FEE MAR 1997

52.216-9 FIXED FEE -- CONSTRUCTION MAR 1997

52.217-2 CANCELLATION UNDER MULTIYEAR CONTRACTS OCT 1997

52.217-5 EVALUATION OF OPTIONS JUL 1990

52.217-8 OPTION TO EXTEND SERVICES NOV 1999

52.217-9 OPTION TO EXTEND THE TERM OF THE CONTRACT MAR 2000

52.219-8 UTILIZATION OF SMALL BUSINESS CONCERNS MAY 2004

52.219-9 SMALL BUSINESS SUBCONTRACTING PLAN MAY 2004

52.219-16 LIQUIDATED DAMAGES---SUBCONTRACTING PLAN JAN 1999

52.222-2 PAYMENT FOR OVERTIME PREMIUMS JUL 1990

52.222-3 CONVICT LABOR JUN 2003

52.222-21 PROHIBITION OF SEGREGATED FACILITIES FEB 1999

52.222-24 PREAWARD ON-SITE EQUAL OPPORTUNITY COMPLIANCE

EVALUATION FEB 1999

52.222-26 EQUAL OPPORTUNITY APR 2002

52.222-29 NOTIFICATION OF VISA DENIAL JUN 2003

52.222-35 EQUAL OPPORTUNITY FOR SPECIAL DISABLED DEC 2001

VETERANS, VETERANS OF THE VIETNAM ERA, AND

OTHER ELIGIBLE VETERANS

52.222-36 AFFIRMATIVE ACTION FOR WORKERS WITH JUN 1998

DISABILITIES

52.222-37 EMPLOYMENT REPORTS ON SPECIAL DISABLED DEC 2001

VETERANS, VETERANS OF THE VIETNAM ERA, AND

OTHER ELIGIBLE VETERANS

52.225-13 RESTRICTIONS ON CERTAIN FOREIGN PURCHASES FEB 2006

2.  NOTICES AND ASSISTANCE REGARDING PATENT AND

> COPYRIGHT INFRINGEMENT AUG 1996

3.  PATENT INDEMNITY APR 1984

52.223-6 DRUG FREE WORK PLACE MAY 2001

52.227-9 REFUND OF ROYALTIES APR 1984

52.227-11 PATENT RIGHTS -- RETENTION BY THE CONTRACTOR

(SHORT FORM) JUN 1997

52.225-13 RESTRICTIONS ON CERTAIN FOREIGN FEB 2006

PURCHASES

52.227-14 RIGHTS IN DATA---GENERAL JUN 1987

52.227-16 ADDITIONAL DATA REQUIREMENTS JUN 1987

52.227-17 RIGHTS IN DATA -- SPECIAL WORKS JUN 1987

52.227-18 RIGHTS IN DATA -- EXISTING WORKS JUN 1987

52.227-19 COMMERCIAL COMPUTER SOFTWARE-RESTRICTED JUN 1987

52.228-3 WORKERS\' COMPENSATION INSURANCE APR 1984

(DEFENSE BASE ACT) CLAUSE

52.228-4 WORKERS' COMPENSATION AND WAR HAZARD

INSURANCE APR 1984

52.228-7 INSURANCE\--LIABILITY TO THIRD PERSONS MAR 1996

52.229-8 TAXES -- FOREIGN COST REIMBURSEMENT MAR 1996

CONTRACTS

52.232-17 INTEREST JUN 1996

52.232-20 LIMITATION OF COST APR 1984

52.232-22 LIMITATION OF FUNDS APR 1984

52.232-23 ASSIGNMENT OF CLAIMS JAN 1986

52.232-25 PROMPT PAYMENT OCT 2003

52.232-33 PAYMENT BY ELECTRONIC FUNDS TRANSFER OCT 2003

\--CENTRAL CONTRACTOR REGISTRATION

52.232-34 PAYMENT BY ELECTRONIC FUNDS TRANSFER MAY 1999

\--OTHER THAN CENTRAL CONTRACTOR

REGISTRATION

52.233-1 DISPUTES JUL 2002

52.233-3 PROTEST AFTER AWARD AUG 1996

ALTERNATE I (JUN 1985)

52.233-4 APPLICABLE LAW FOR BREACH OF OCT 2004

CONTRACT CLAIM

52.236-5 MATERIAL AND WORKMANSHIP APR 1984

52.236-6 SUPERINTENDENCE BY THE CONTRACTOR APR 1984

52.236-7 PERMITS AND RESPONSIBILITIES NOV 1991

52.236-11 USE AND POSSESSION PRIOR TO COMPLETION APR 1984

52.236-12 CLEAN UP APR 1984

52.236-13 ACCIDENT PREVENTION

ALTERNATE I (JUN 1985) NOV 1991

52.236-15 SCHEDULES FOR CONSTRUCTION CONTRACTS APR 1984

52.236-18 WORK OVERSIGHT IN COST-REIMBURSEMENT

CONSTRUCTION CONTRACTS APR 1984

52.236-19 ORGANIZATION AND DIRECTION OF THE WORK APR 1984

52.236-28 PREPARATION OF PROPOSALS -- CONSTRUCTION OCT 1997

52.237-3 CONTINUITY OF SERVICES JAN.1991

52.237-8 RESTRICTION ON SEVERANCE PAYMENTS TO AUG 2003

FOREIGN NATIONALS

52.242-1 NOTICE OF INTENT TO DISALLOW COSTS APR 1984

52.242-3 PENALTIES FOR UNALLOWABLE COSTS MAY 2001

52.242-4 CERTIFICATION OF FINAL INDIRECT COSTS JAN 1997

52.242-13 BANKRUPTCY JUL 1995

52.242-14 SUSPENSION OF WORK APR 1984

52.242-15 STOP-WORK ORDER, ALTERNATE I (April 1984) AUG 1989

52.243-2 CHANGES\--COST REIMBURSEMENT AUG 1987

ALTERNATE I APR 1984

52.243-5 CHANGES AND CHANGED CONDITIONS APR 1984

52.243-6 CHANGE ORDER ACCOUNTING APR 1984

52.243-7 NOTIFICATION OF CHANGES APR 1984

52.244-2 SUBCONTRACTS AUG 1998

52.244-5 COMPETITION IN SUBCONTRACTING DEC 1996

52.244-6 SUBCONTRACTS FOR COMMERCIAL ITEMS SEP 2006

AND COMMERCIAL COMPONENTS

52.245-5 GOVERNMENT PROPERTY (COST-REIMBURSEMENT, MAY 2004

TIME AND MATERIALS, OR LABOR HOUR CONTRACTS)

52.246-3 INSPECTIONS OF SUPPLIES (COST-REIMBURSEMENT) MAR 2001

52.246-5 INSPECTIONS OF SERVICES (COST-REIMBURSEMENT) APR 1984

52.246-23 LIMITATION OF LIABILITY FEB 1997

52.246-25 LIMITATION OF LIABILITY- SERVICES FEB 1997

52.246-63 PREFERENCES FOR U.S. FLAG AIR CARRIERS JUN 2003

52.247-67 SUBMISSION OF COMMERCIAL TRANSPORTATION BILLS TO THE GENERAL
SERVICES ADMINISTRATION

FOR AUDIT JUN 1997

52.248-1 VALUE ENGINEERING FEB 2000

52.248-3 VALUE ENGINEERING -- CONSTRUCTION FEB 2000

52.249-6 TERMINATION (COST-REIMBURSEMENT) MAY 2004

52.249-14 EXCUSABLE DELAYS APR 1984

52.250-1 INDEMNIFICATION UNDER PUBLIC LAW 85-804 APR 1984

52.251-1 GOVERNMENT SUPPLY SOURCES APR 1984

52.253-1 COMPUTER GENERATED FORMS JAN 1991

**AIDAR 48 CFR Chapters 7**

752.202-1 DEFINITIONS JUN 1992

752.209-71 ORGANIZATIONAL CONFLICTS OF INTEREST DISCOVERED AFTER AWARD
JUN 1993

752.211-70 LANGUAGE AND MEASUREMENT JUN 1992

752.219-8 UTILIZATION OF SMALL BUSINESS CONCERNS AND

SMALL DISADVANTAGED ENTERPRISE APR 1997

752.225-70 SOURCE, ORIGIN AND NATIONALITY FEB 1997

752.225-71 LOCAL PROCUREMENT FEB 1997

752.228-3 WORKER'S COMPENSATION INSURANCE

(DEFENSE BASE ACT)

752.228-7 INSURANCE-LIABILITY TO THIRD PERSONS

752.228-70 MEDEVAC

752.245-70 GOVERNMENT PROPERTY-USAID

REPORTING REQUIREMENTS

752.245-71 TITLE & CARE PROPERTY

752.7001 BIOGRAPHICAL DATA JUL 1997

752.7002 TRAVEL AND TRANSPORTATION JAN 1990

752.7003 DOC. FOR PAYMENT

752.7006 NOTICES APR 1984

752.7007 PERSONNEL COMPENSATION AUG 2004

752.7008 USE OF GOVERNMENT FACILITIES OR APR 1984

PERSONNEL

752.7010 CONVERSION OF U.S. DOLLARS TO LOCAL APR 1984

CURRENCY

752.7011 ORIENTATION AND LANGUAGE TRAINING APR 1984

752.7013 CONTRACTOR -MISSION RELATIONSHIPS OCT 1989

752.7014 NOTICE OF CHANGES IN TRAVEL REGULATIONS JAN 1990

752.7015 USE OF POUCH FACILITIES JUL 1997

752.7018 HEALTH AND ACCIDENT COVERAGE FOR JAN 1999

USAID PARTICIPANT TRAINEES

752.7019 PARTICIPANT TRAINING JAN 1999

752.7025 APPROVALS APR 1984

752.7027 PERSONNEL DEC 1990

752.7028 DIFFERENTIALS AND ALLOWANCES JUL 1996

752.7029 POST PRIVILEGES JUL 1993

752.7031 LEAVE AND HOLIDAYS OCT 1989

752.7032 INTERNATIONAL TRAVEL AND NOTIFICATION

REQUIREMENTS JAN 1990

752.7033 PHYSICAL FITNESS JUL 1997

752.7034 ACKNOWLEDGEMENT AND DISCLAIMER DEC 1991

752.7035 PUBLIC NOTICES DEC 1991

**The following FAR clauses shall apply to local construction work
performed under the infrastructure component of this contract at a fixed
price performed by subcontractors:**

NUMBER TITLE DATE

FEDERAL ACQUISITION REGULATION (48 CFR Chapter 1)

52.211-10 COMMENCEMENT, PROSECUTION AND COMPLETION APR 1984

OF WORK

52.236-1 PERFORMANCE OF WORK BY THE CONTRACTOR APR 1984

52.236-2 DIFFERING SITE CONDITIONS APR 1984

52.236-3 SITE INESTIGATION AND CONDITIONS AFFECTING APR 1984

THE WORK

52.236-4 PHYSICAL DATA APR 1984

52.236-5 MATERIAL AND WORKMANSHIP APR 1984

52.236-7 PERMITS AND RESPONSIILTIES NOV 1991

52.236-15 SCHEDULES FOR CONSTRUCTION CONTRACTS APR 1984

52.236-27 SITE VISIT (CONSTRUCTION) FEB 1995

52.242-14 SUSPENSION OF WORK APR 1984

52.246-12 INSPECTION OF CONSTRUCTION AUG 1996

52.249-10 DEFAULT (FIXED PRICE CONSTRUCTION) APR 1984

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

a.  Definitions. As used in this clause---

> "Central Contractor Registration (CCR) database" means the primary
> Government repository for Contractor information required for the
> conduct of business with the Government.
>
> "Data Universal Numbering System (DUNS) number" means the 9-digit
> number assigned by Dun and Bradstreet, Inc. (D&B) to identify unique
> business entities.
>
> "Data Universal Numbering System +4 (DUNS+4) number" means the DUNS
> number assigned by D&B plus a 4-character suffix that may be assigned
> by a business concern. (D&B has no affiliation with this 4-character
> suffix.) This 4-character suffix may be assigned at the discretion of
> the business concern to establish additional CCR records for
> identifying alternative Electronic Funds Transfer (EFT) accounts (see
> the FAR at Subpart 32.11) for the same parent concern.
>
> "Registered in the CCR database" means that---
>
> \(a\) (1) The Contractor has entered all mandatory information,
> including the DUNS number or the DUNS+4 number, into the CCR database;
> and
>
> (2) The Government has validated all mandatory data fields, to include
> validation of the Taxpayer Identification Number (TIN) with the
> Internal Revenue Service (IRS), and has marked the record "Active".
> The Contractor will be required to provide consent for TIN validation
> to the Government as a part of the CCR registration process.
>
> (b) (1) By submission of an offer, the offeror acknowledges the
> requirement that a prospective awardee shall be registered in the CCR
> database prior to award, during performance, and through final payment
> of any contract, basic agreement, basic ordering agreement, or blanket
> purchasing agreement resulting from this solicitation.
>
> (2) The offeror shall enter, in the block with its name and address on
> the cover page of its offer, the annotation "DUNS" or "DUNS +4"
> followed by the DUNS or DUNS +4 number that identifies the offeror's
> name and address exactly as stated in the offer. The DUNS number will
> be used by the Contracting Officer to verify that the offeror is
> registered in the CCR database.
>
> (c) If the offeror does not have a DUNS number, it should contact Dun
> and Bradstreet directly to obtain one.
>
> (1) An offeror may obtain a DUNS number---
>
> (i) If located within the United States, by calling Dun and Bradstreet
> at 1-866-705-5711 or via the Internet at
> [http://www.dnb.com](http://www.dnb.com/); or
>
> (ii) If located outside the United States, by contacting the local Dun
> and Bradstreet office.
>
> \(2\) The offeror should be prepared to provide the following
> information:
>
> (i) Company legal business.
>
> (ii) Tradestyle, doing business, or other name by which your entity is
> commonly recognized.
>
> (iii) Company Physical Street Address, City, State, and ZIP Code.
>
> (iv) Company Mailing Address, City, State and ZIP Code (if separate
> from physical).
>
> (v) Company Telephone Number.
>
> (vi) Date the company was started.
>
> (vii) Number of employees at your location.
>
> (viii) Chief executive officer/key manager.
>
> (ix) Line of business (industry).
>
> \(x\) Company Headquarters name and address (reporting relationship
> within your entity).
>
> \(d\) If the Offeror does not become registered in the CCR database in
> the time prescribed by the Contracting Officer, the Contracting
> Officer will proceed to award to the next otherwise successful
> registered Offeror.
>
> \(e\) Processing time, which normally takes 48 hours, should be taken
> into consideration when registering. Offerors who are not registered
> should consider applying for registration immediately upon receipt of
> this solicitation.
>
> \(f\) The Contractor is responsible for the accuracy and completeness
> of the data within the CCR database, and for any liability resulting
> from the Government's reliance on inaccurate or incomplete data. To
> remain registered in the CCR database after the initial registration,
> the Contractor is required to review and update on an annual basis
> from the date of initial registration or subsequent updates its
> information in the CCR database to ensure it is current, accurate and
> complete. Updating information in the CCR does not alter the terms and
> conditions of this contract and is not a substitute for a properly
> executed contractual document.
>
> \(g\) (1) (i) If a Contractor has legally changed its business name,
> "doing business as" name, or division name (whichever is shown on the
> contract), or has transferred the assets used in performing the
> contract, but has not completed the necessary requirements regarding
> novation and change-of-name agreements in Subpart 42.12, the
> Contractor shall provide the responsible Contracting Officer a minimum
> of one business day's written notification of its intention to
> (A) change the name in the CCR database; (B) comply with the
> requirements of Subpart 42.12 of the FAR; and (C) agree in writing to
> the timeline and procedures specified by the responsible Contracting
> Officer. The Contractor must provide with the notification sufficient
> documentation to support the legally changed name.
>
> (ii) If the Contractor fails to comply with the requirements of
> paragraph (g)(1)(i) of this clause, or fails to perform the agreement
> at paragraph (g)(1)(i)(C) of this clause, and, in the absence of a
> properly executed novation or change-of-name agreement, the CCR
> information that shows the Contractor to be other than the Contractor
> indicated in the contract will be considered to be incorrect
> information within the meaning of the "Suspension of Payment"
> paragraph of the electronic funds transfer (EFT) clause of this
> contract.
>
> (2) The Contractor shall not change the name or address for EFT
> payments or manual payments, as appropriate, in the CCR record to
> reflect an assignee for the purpose of assignment of claims (see
> FAR Subpart 32.8, Assignment of Claims). Assignees shall be separately
> registered in the CCR database. Information provided to the
> Contractor's CCR record that indicates payments, including those made
> by EFT, to an ultimate recipient other than that Contractor will be
> considered to be incorrect information within the meaning of the
> "Suspension of payment" paragraph of the EFT clause of this contract.
>
> (h) Offerors and Contractors may obtain information on registration
> and annual confirmation requirements via the internet at
> [http://www.ccr.gov](http://www.ccr.gov/) or by calling
> 1-888-227-2423, or 269-961-5757.

## I.3 52.217-8 OPTION TO EXTEND SERVICES (NOV 1999)

The Government may require continued performance of any services within
the limits and at the rates specified in the contract. These rates may
be adjusted only as a result of revisions to prevailing labor rates
provided by the Secretary of Labor. The option provision may be
exercised more than once, but the total extension of performance
hereunder shall not exceed 6 months. The Contracting Officer may
exercise the option by written notice to the Contractor within 60 days
before the contract completion date.

### 

### I.4 52.222-39  Notification of Employee Rights Concerning Payment of Union Dues or Fees (DEC 2004) 

(a) *Definition*. As used in this clause---

> "United States" means the 50 States, the District of Columbia, Puerto
> Rico, the Northern Mariana Islands, American Samoa, Guam, the U.S.
> Virgin Islands, and Wake Island.

(b) Except as provided in paragraph (e) of this clause, during the term
of this contract, the Contractor shall post a notice, in the form of a
poster, informing employees of their rights concerning union membership
and payment of union dues and fees, in conspicuous places in and about
all its plants and offices, including all places where notices to
employees are customarily posted. The notice shall include the following
information (except that the information pertaining to National Labor
Relations Board shall not be included in notices posted in the plants or
offices of carriers subject to the Railway Labor Act, as amended
(45 U.S.C. 151-188)).

Notice to Employees

Under Federal law, employees cannot be required to join a union or
maintain membership in a union in order to retain their jobs. Under
certain conditions, the law permits a union and an employer to enter
into a union-security agreement requiring employees to pay uniform
periodic dues and initiation fees. However, employees who are not union
members can object to the use of their payments for certain purposes and
can only be required to pay their share of union costs relating to
collective bargaining, contract administration, and grievance
adjustment.

If you do not want to pay that portion of dues or fees used to support
activities not related to collective bargaining, contract
administration, or grievance adjustment, you are entitled to an
appropriate reduction in your payment. If you believe that you have been
required to pay dues or fees used in part to support activities not
related to collective bargaining, contract administration, or grievance
adjustment, you may be entitled to a refund and to an appropriate
reduction in future payments.

For further information concerning your rights, you may wish to contact
the National Labor Relations Board (NLRB) either at one of its Regional
offices or at the following address or toll free number:

National Labor Relations Board\
Division of Information\
1099 14th Street, N.W.\
Washington, DC 20570\
1-866-667-6572\
1-866-316-6572 (TTY)

To locate the nearest NLRB office, see NLRB\'s website at
[[http://www.nlrb.gov]{.underline}](http://www.nlrb.gov/).

> \(c\) The Contractor shall comply with all provisions of Executive
> Order 13201 of February 17, 2001, and related implementing regulations
> at 29 CFR Part 470, and orders of the Secretary of Labor.
>
> \(d\) In the event that the Contractor does not comply with any of the
> requirements set forth in paragraphs (b), (c), or (g), the Secretary
> may direct that this contract be cancelled, terminated, or suspended
> in whole or in part, and declare the Contractor ineligible for further
> Government contracts in accordance with procedures at 29 CFR Part 470,
> Subpart B---Compliance Evaluations, Complaint Investigations and
> Enforcement Procedures. Such other sanctions or remedies may be
> imposed as are provided by 29 CFR Part 470, which implements Executive
> Order 13201, or as are otherwise provided by law.
>
> \(e\) The requirement to post the employee notice in paragraph (b)
> does not apply to---
>
> \(1\) Contractors and subcontractors that employ fewer than 15
> persons;
>
> \(2\) Contractor establishments or construction work sites where no
> union has been formally recognized by the Contractor or certified as
> the exclusive bargaining representative of the Contractor's employees;
>
> \(3\) Contractor establishments or construction work sites located in
> a jurisdiction named in the definition of the United States in which
> the law of that jurisdiction forbids enforcement of union-security
> agreements;
>
> \(4\) Contractor facilities where upon the written request of the
> Contractor, the Department of Labor Deputy Assistant Secretary for
> Labor-Management Programs has waived the posting requirements with
> respect to any of the Contractor's facilities if the Deputy Assistant
> Secretary finds that the Contractor has demonstrated that---
>
> \(i\) The facility is in all respects separate and distinct from
> activities of the Contractor related to the performance of a contract;
> and
>
> \(ii\) Such a waiver will not interfere with or impede the
> effectuation of the Executive order; or
>
> \(5\) Work outside the United States that does not involve the
> recruitment or employment of workers within the United States.
>
> \(f\) The Department of Labor publishes the official employee notice
> in two variations; one for contractors covered by the Railway Labor
> Act and a second for all other contractors. The Contractor shall---
>
> \(1\) Obtain the required employee notice poster from the Division of
> Interpretations and Standards, Office of Labor-Management Standards,
> U.S. Department of Labor, 200 Constitution Avenue, NW, Room N-5605,
> Washington, DC 20210, or from any field office of the Department's
> Office of Labor-Management Standards or Office of Federal Contract
> Compliance Programs;
>
> \(2\) Download a copy of the poster from the Office of
> Labor-Management Standards website at
> [http://www.olms.dol.gov](http://www.olms.dol.gov/); or
>
> \(3\) Reproduce and use exact duplicate copies of the Department of
> Labor's official poster.
>
> \(g\) The Contractor shall include the substance of this clause in
> every subcontract or purchase order that exceeds the simplified
> acquisition threshold, entered into in connection with this contract,
> unless exempted by the Department of Labor Deputy Assistant Secretary
> for Labor-Management Programs on account of special circumstances in
> the national interest under authority of 29 CFR 470.3(c). For
> indefinite quantity subcontracts, the Contractor shall include the
> substance of this clause if the value of orders in any calendar year
> of the subcontract is expected to exceed the simplified acquisition
> threshold. Pursuant to 29 CFR Part 470, Subpart B---Compliance
> Evaluations, Complaint Investigations and Enforcement Procedures, the
> Secretary of Labor may direct the Contractor to take such action in
> the enforcement of these regulations, including the imposition of
> sanctions for noncompliance with respect to any such subcontract or
> purchase order. If the Contractor becomes involved in litigation with
> a subcontractor or vendor, or is threatened with such involvement, as
> a result of such direction, the Contractor may request the United
> States, through the Secretary of Labor, to enter into such litigation
> to protect the interests of the United States.

### I.5 52.232-25  PROMPT PAYMENT (OCT 2003)

Notwithstanding any other payment clause in this contract, the
Government will make invoice payments under the terms and conditions
specified in this clause. The Government considers payment as being made
on the day a check is dated or the date of an electronic funds transfer
(EFT). Definitions of pertinent terms are set forth in sections 2.101,
32.001, and 32.902 of the Federal Acquisition Regulation. All days
referred to in this clause are calendar days, unless otherwise
specified. (However, see paragraph (a)(4) of this clause concerning
payments due on Saturdays, Sundays, and legal holidays.)

(a) Invoice payments---

\(1\) Due date.

> \(i\) Except as indicated in paragraphs (a)(2) and (c) of this clause,
> the due date for making invoice payments by the designated payment
> office is the later of the following two events:
>
> \(A\) The 30th day after the designated billing office receives a
> proper invoice from the Contractor (except as provided in
> paragraph (a)(1)(ii) of this clause).
>
> \(B\) The 30th day after Government acceptance of supplies delivered
> or services performed. For a final invoice, when the payment amount is
> subject to contract settlement actions, acceptance is deemed to occur
> on the effective date of the contract settlement.
>
> \(ii\) If the designated billing office fails to annotate the invoice
> with the actual date of receipt at the time of receipt, the invoice
> payment due date is the 30th day after the date of the Contractor's
> invoice, provided the designated billing office receives a proper
> invoice and there is no disagreement over quantity, quality, or
> Contractor compliance with contract requirements.

(2) Certain food products and other payments.

> \(i\) Due dates on Contractor invoices for meat, meat food products,
> or fish; perishable agricultural commodities; and dairy products,
> edible fats or oils, and food products prepared from edible fats or
> oils are---
>
> \(A\) For meat or meat food products, as defined in section 2(a)(3) of
> the Packers and Stockyard Act of 1921 (7 U.S.C. 182(3)), and as
> further defined in Pub. L. 98-181, including any edible fresh or
> frozen poultry meat, any perishable poultry meat food product, fresh
> eggs, and any perishable egg product, as close as possible to, but not
> later than, the 7th day after product delivery.
>
> \(B\) For fresh or frozen fish, as defined in section 204(3) of the
> Fish and Seafood Promotion Act of 1986 (16 U.S.C. 4003(3)), as close
> as possible to, but not later than, the 7th day after product
> delivery.
>
> \(C\) For perishable agricultural commodities, as defined in
> section 1(4) of the Perishable Agricultural Commodities Act of 1930
> (7 U.S.C. 499a(4)), as close as possible to, but not later than, the
> 10th day after product delivery, unless another date is specified in
> the contract.
>
> \(D\) For dairy products, as defined in section 111(e) of the Dairy
> Production Stabilization Act of 1983 (7 U.S.C. 4502(e)), edible fats
> or oils, and food products prepared from edible fats or oils, as close
> as possible to, but not later than, the 10th day after the date on
> which a proper invoice has been received. Liquid milk, cheese, certain
> processed cheese products, butter, yogurt, ice cream, mayonnaise,
> salad dressings, and other similar products, fall within this
> classification. Nothing in the Act limits this classification to
> refrigerated products. When questions arise regarding the proper
> classification of a specific product, prevailing industry practices
> will be followed in specifying a contract payment due date. The burden
> of proof that a classification of a specific product is, in fact,
> prevailing industry practice is upon the Contractor making the
> representation.
>
> \(ii\) If the contract does not require submission of an invoice for
> payment (e.g., periodic lease payments), the due date will be as
> specified in the contract.

(3) Contractor\'s invoice. The Contractor shall prepare and submit
invoices to the designated billing office specified in the contract. A
proper invoice must include the items listed in paragraphs (a)(3)(i)
through (a)(3)(x) of this clause. If the invoice does not comply with
these requirements, the designated billing office will return it within
7 days after receipt (3 days for meat, meat food products, or fish;
5 days for perishable agricultural commodities, dairy products, edible
fats or oils, and food products prepared from edible fats or oils), with
the reasons why it is not a proper invoice. The Government will take
into account untimely notification when computing any interest penalty
owed the Contractor.

> \(i\) Name and address of the Contractor.
>
> \(ii\) Invoice date and invoice number. (The Contractor should date
> invoices as close as possible to the date of the mailing or
> transmission.)

iii. Contract number or other authorization for supplies delivered or
     services performed (including order number and contract line item
     number).

> \(iv\) Description, quantity, unit of measure, unit price, and
> extended price of supplies delivered or services performed.
>
> \(v\) Shipping and payment terms (e.g., shipment number and date of
> shipment, discount for prompt payment terms). Bill of lading number
> and weight of shipment will be shown for shipments on Government bills
> of lading.
>
> \(vi\) Name and address of Contractor official to whom payment is to
> be sent (must be the same as that in the contract or in a proper
> notice of assignment).
>
> \(vii\) Name (where practicable), title, phone number, and mailing
> address of person to notify in the event of a defective invoice.
>
> (viii)Taxpayer Identification Number (TIN). The Contractor shall
> include its TIN on the invoice only if required elsewhere in this
> contract.
>
> \(ix\) Electronic funds transfer (EFT) banking information.
>
> \(A\) The Contractor shall include EFT banking information on the
> invoice only if required elsewhere in this contract.
>
> \(B\) If EFT banking information is not required to be on the invoice,
> in order for the invoice to be a proper invoice, the Contractor shall
> have submitted correct EFT banking information in accordance with the
> applicable solicitation provision (e.g., 52.232-38, Submission of
> Electronic Funds Transfer Information with Offer), contract clause
> (e.g., 52.232-33, Payment by Electronic Funds Transfer---Central
> Contractor Registration, or 52.232-34, Payment by Electronic Funds
> Transfer-Other Than Central Contractor Registration), or applicable
> agency procedures.
>
> \(C\) EFT banking information is not required if the Government waived
> the requirement to pay by EFT.
>
> \(x\) Any other information or documentation required by the contract
> (e.g., evidence of shipment).

(4) Interest penalty. The designated payment office will pay an interest
penalty automatically, without request from the Contractor, if payment
is not made by the due date and the conditions listed in
paragraphs (a)(4)(i) through (a)(4)(iii) of this clause are met, if
applicable. However, when the due date falls on a Saturday, Sunday, or
legal holiday, the designated payment office may make payment on the
following working day without incurring a late payment interest penalty.

> \(i\) The designated billing office received a proper invoice.
>
> \(ii\) The Government processed a receiving report or other Government
> documentation authorizing payment, and there was no disagreement over
> quantity, quality, or Contractor compliance with any contract term or
> condition.
>
> \(iii\) In the case of a final invoice for any balance of funds due
> the Contractor for supplies delivered or services performed, the
> amount was not subject to further contract settlement actions between
> the Government and the Contractor.

(5) Computing penalty amount. The Government will compute the interest
penalty in accordance with the Office of Management and Budget prompt
payment regulations at 5 CFR Part 1315.

> \(i\) For the sole purpose of computing an interest penalty that might
> be due the Contractor, Government acceptance is deemed to occur
> constructively on the 7th day (unless otherwise specified in this
> contract) after the Contractor delivers the supplies or performs the
> services in accordance with the terms and conditions of the contract,
> unless there is a disagreement over quantity, quality, or Contractor
> compliance with a contract provision. If actual acceptance occurs
> within the constructive acceptance period, the Government will base
> the determination of an interest penalty on the actual date of
> acceptance. The constructive acceptance requirement does not, however,
> compel Government officials to accept supplies or services, perform
> contract administration functions, or make payment prior to fulfilling
> their responsibilities.
>
> \(ii\) The prompt payment regulations at 5 CFR 1315.10(c) do not
> require the Government to pay interest penalties if payment delays are
> due to disagreement between the Government and the Contractor over the
> payment amount or other issues involving contract compliance, or on
> amounts temporarily withheld or retained in accordance with the terms
> of the contract. The Government and the Contractor shall resolve
> claims involving disputes and any interest that may be payable in
> accordance with the clause at FAR 52.233-1, Disputes.

(6) Discounts for prompt payment. The designated payment office will pay
an interest penalty automatically, without request from the Contractor,
if the Government takes a discount for prompt payment improperly. The
Government will calculate the interest penalty in accordance with the
prompt payment regulations at 5 CFR Part 1315.

(7) Additional interest penalty.

> \(i\) The designated payment office will pay a penalty amount,
> calculated in accordance with the prompt payment regulations at 5 CFR
> Part 1315 in addition to the interest penalty amount only if---
>
> \(A\) The Government owes an interest penalty of \$1 or more;
>
> \(B\) The designated payment office does not pay the interest penalty
> within 10 days after the date the invoice amount is paid; and
>
> \(C\) The Contractor makes a written demand to the designated payment
> office for additional penalty payment, in accordance with
> paragraph (a)(7)(ii) of this clause, postmarked not later than 40 days
> after the invoice amount is paid.
>
> \(ii\) (A) The Contractor shall support written demands for additional
> penalty payments with the following data. The Government will not
> request any additional data. The Contractor shall---
>
> \(1\) Specifically assert that late payment interest is due under a
> specific invoice, and request payment of all overdue late payment
> interest penalty and such additional penalty as may be required;
>
> \(2\) Attach a copy of the invoice on which the unpaid late payment
> interest is due; and
>
> \(3\) State that payment of the principal has been received, including
> the date of receipt.
>
> \(B\) If there is no postmark or the postmark is illegible---
>
> \(1\) The designated payment office that receives the demand will
> annotate it with the date of receipt, provided the demand is received
> on or before the 40th day after payment was made; or
>
> \(2\) If the designated payment office fails to make the required
> annotation, the Government will determine the demand's validity based
> on the date the Contractor has placed on the demand, provided such
> date is no later than the 40th day after payment was made.
>
> \(iii\) The additional penalty does not apply to payments regulated by
> other Government regulations (e.g., payments under utility contracts
> subject to tariffs and regulation).
>
> \(b\) Contract financing payment. If this contract provides for
> contract financing, the Government will make contract financing
> payments in accordance with the applicable contract financing clause.
>
> \(c\) Fast payment procedure due dates. If this contract contains the
> clause at 52.213-1, Fast Payment Procedure, payments will be made
> within 15 days after the date of receipt of the invoice.
>
> \(d\) Overpayments. If the Contractor becomes aware of a duplicate
> contract financing or invoice payment or that the Government has
> otherwise overpaid on a contract financing or invoice payment, the
> Contractor shall immediately notify the Contracting Officer and
> request instructions for disposition of the overpayment.

## I.6 52.252-2 CLAUSES INCORPORATED BY REFERENCE (FEB 1998)

This contract incorporates one or more clauses by reference, with the
same force and effect as if they were given in full text. Upon request,
the Contracting Officer will make their full text available. Also, the
full text of a clause may be accessed electronically at this/these
address(es): http://arnet.gov/far/

**I.7 52.227-23  RIGHTS TO PROPOSAL DATA (TECHNICAL) (JUN 1987)**

Except for data contained on pages \_\_\_\_\_, it is agreed that as a
condition of award of this contract, and notwithstanding the conditions
of any notice appearing thereon, the Government shall have unlimited
rights (as defined in the "Rights in Data---General" clause contained in
this contract) in and to the technical data contained in the proposal
dated \_\_\_\_\_\_\_\_\_\_\_\_, upon which this contract is based.

# PART III - LIST OF DOCUMENTS, EXHIBITS AND OTHER ATTACHMENTS

# SECTION J - LIST OF ATTACHMENTS

ATTACHMENT NO. NUMBER TITLE DATE PAGES

ATTACHMENT 1 USAID PRINCIPAL GEOGRAPHIC CODES

ATTACHMENT 2 USAID FORM 1420-17 CONTRACTOR BIOGRAPHICAL DATA SHEET

A hard copy is attached at the end of this document; however, for an
electronic version, please locate the form at
<http://www.usaid.gov/forms/>

ATTACHMENT 3 SF LLL DISCLOSURE OF LOBBYING ACTIVITIES

A hard copy is attached at the end of this document; however, for an
electronic version, please locate the form at
<http://www.usaid.gov/forms/>

ATTACHMENT 4 SAMPLE SMALL BUSINESS SUBCONTRACTING PLAN

> A hard copy is attached at the end of this document; however, for an
> electronic version, please locate the form at
> <http://www.usaid.gov/forms/>

ATTACHMENT 5 BACKGROUND READING ON GEM

Please visit: <http://www.mindanao.org/> and
<http://philippines.usaid.gov/>

The GEM-1 Final Report entitled "Growth with Equity in Mindanao (GEM)
Program -- Main Report (Vol. I) and Annex (Vol. II), August 28, 1995 --
September 30, 2002", is downloadable from
<http://philippines.usaid.gov/>.

> Information on the current GEM-2 contract is available at
> <http://www.mindanao.org/>.
>
> General Information about USAID/Philippines development assistance is
> available at <http://philippines.usaid.gov/>.

# 

# PART IV - REPRESENTATIONS AND INSTRUCTIONS

# SECTION K - REPRESENTATIONS, CERTIFICATIONS AND OTHER STATEMENTS OF OFFERORS

## K.1 NOTICE LISTING SOLICITATION PROVISIONS INCORPORATED BY REFERENCE

The following solicitation provisions pertinent to this section are
hereby incorporated by reference (by Citation Number, Title, and Date)
in accordance with the FAR provision at FAR \"52.252-1 SOLICITATION
PROVISIONS INCORPORATED BY REFERENCE\" in Section L of this
solicitation. See FAR 52.252-1 for an Internet address (if specified)
for electronic access to the full text of a provision.

NUMBER TITLE DATE

FEDERAL ACQUISITION REGULATION (48 CFR Chapter 1)

52.237-8 RESTRICTION ON SEVERANCE PAYMENTS TO FOREIGN NATIONALS AUG 2003

**K.2 52.204-8   Annual Representations and Certifications (JAN 2006)**

A. 1. The North American Industry Classification System (NAICS) code for
this acquisition is \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ (*insert NAICS
code*).

2. The small business size standard is \_\_\_\_\_\_\_\_\_\_\_\_\_
\[insert size standard\].

3. The small business size standard for a concern which submits an offer
in its own name, other than on a construction or service contract, but
which proposes to furnish a product which it did not itself manufacture,
is 500 employees.

B. 1. If the clause at 52.204-7, Central Contractor Registration, is
included in this solicitation, paragraph (c) of this provision applies.

2. If the clause at 52.204-7 is not included in this solicitation, and
the offeror is currently registered in CCR, and has completed the ORCA
electronically, the offeror may choose to use paragraph (c) of this
provision instead of completing the corresponding individual
representations and certifications in the solicitation. The offeror
shall indicate which option applies by checking one of the following
boxes:

\[  \] (i) Paragraph (c) applies.

\[  \] (ii) Paragraph (c) does not apply and the offeror has completed
the individual representations and certifications in the solicitation.

> C. The offeror has completed the annual representations and
> certifications electronically via the Online Representations and
> Certifications Application (ORCA) website at
> [http://orca.bpn.gov](http://orca.bpn.gov/). After reviewing the ORCA
> database information, the offeror verifies by submission of the offer
> that the representations and certifications currently posted
> electronically have been entered or updated within the last 12 months,
> are current, accurate, complete, and applicable to this solicitation
> (including the business size standard applicable to the NAICS code
> referenced for this solicitation), as of the date of this offer and
> are incorporated in this offer by reference (see FAR 4.1201); except
> for the changes identified below \[*offeror to insert changes,
> identifying change by clause number, title, date*\]. These amended
> representation(s) and/or certification(s) are also incorporated in
> this offer and are current, accurate, and complete as of the date of
> this offer.

  -----------------------------------------------------------------------------------------------
  FAR Clause #            Title            Date      Change

        \_\_\_\_\_\_\_\_\_\_\_\_        \_\_\_\_\_\_\_\_\_       \_\_\_\_\_      \_\_\_\_\_\_\_
  -----------------------------------------------------------------------------------------------

Any changes provided by the offeror are applicable to this solicitation
only, and do not result in an update to the representations and
certifications posted on ORCA.

**K.3** **52.230-1 COST ACCOUNTING STANDARDS NOTICES AND CERTIFICATION
(JUN 2000)**

NOTE: This notice does not apply to small businesses or foreign
governments. This notice is in three parts, identified by Roman numerals
I through III.

Offerors shall examine each part and provide the requested information
in order to determine Cost Accounting Standards (CAS) requirements
applicable to any resultant contract. If the offeror is an educational
institution, Part II does not apply unless the contemplated contract
will be subject to full or modified CAS coverage pursuant to 48 CFR
9903.201-2(c)(5) or 9903.201-2(c)(6), respectively.

**[I. Disclosure Statement---Cost Accounting Practices and
Certification]{.smallcaps}**

(a) Any contract in excess of \$500,000 resulting from this solicitation
will be subject to the requirements of the Cost Accounting Standards
Board (48 CFR Chapter 99), except for those contracts which are exempt
as specified in 48 CFR 9903.201-1.

(b) Any offeror submitting a proposal which, if accepted, will result in
a contract subject to the requirements of 48 CFR Chapter 99 must, as a
condition of contracting, submit a Disclosure Statement as required by
48 CFR 9903.202. When required, the Disclosure Statement must be
submitted as a part of the offeror's proposal under this solicitation
unless the offeror has already submitted a Disclosure Statement
disclosing the practices used in connection with the pricing of this
proposal. If an applicable Disclosure Statement has already been
submitted, the offeror may satisfy the requirement for submission by
providing the information requested in paragraph (c) of Part I of this
provision.

> **Caution:** In the absence of specific regulations or agreement, a
> practice disclosed in a Disclosure Statement shall not, by virtue of
> such disclosure, be deemed to be a proper, approved, or agreed-to
> practice for pricing proposals or accumulating and reporting contract
> performance cost data.

(c) Check the appropriate box below:

> \[  \] (1) *Certificate of Concurrent Submission of Disclosure
> Statement*. The offeror hereby certifies that, as a part of the offer,
> copies of the Disclosure Statement have been submitted as follows:
>
> \(i\) Original and one copy to the cognizant Administrative
> Contracting Officer (ACO) or cognizant Federal agency official
> authorized to act in that capacity (Federal official), as applicable;
> and
>
> \(ii\) One copy to the cognizant Federal auditor.
>
> (Disclosure must be on Form No. CASB DS-1 or CASB DS-2, as applicable.
> Forms may be obtained from the cognizant ACO or Federal official
> and/or from the loose-leaf version of the Federal Acquisition
> Regulation.)
>
> Date of Disclosure Statement:
> \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\
> Name and Address of Cognizant ACO or Federal Official Where Filed:
> \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
>
> The offeror further certifies that the practices used in estimating
> costs in pricing this proposal are consistent with the cost accounting
> practices disclosed in the Disclosure Statement.
>
> \[  \] (2) Certificate of Previously Submitted Disclosure Statement.
> The offeror hereby certifies that the required Disclosure Statement
> was filed as follows:
>
> Date of Disclosure Statement:
> \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\
> Name and Address of Cognizant ACO or Federal Official Where Filed:
> \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
>
> The offeror further certifies that the practices used in estimating
> costs in pricing this proposal are consistent with the cost accounting
> practices disclosed in the applicable Disclosure Statement.
>
> \[  \] (3) Certificate of Monetary Exemption. The offeror hereby
> certifies that the offeror, together with all divisions, subsidiaries,
> and affiliates under common control, did not receive net awards of
> negotiated prime contracts and subcontracts subject to CAS totaling
> \$50 million or more in the cost accounting period immediately
> preceding the period in which this proposal was submitted. The offeror
> further certifies that if such status changes before an award
> resulting from this proposal, the offeror will advise the Contracting
> Officer immediately.
>
> \[  \] (4) Certificate of Interim Exemption. The offeror hereby
> certifies that (i) the offeror first exceeded the monetary exemption
> for disclosure, as defined in (3) of this subsection, in the cost
> accounting period immediately preceding the period in which this offer
> was submitted and (ii) in accordance with 48 CFR 9903.202-1, the
> offeror is not yet required to submit a Disclosure Statement. The
> offeror further certifies that if an award resulting from this
> proposal has not been made within 90 days after the end of that
> period, the offeror will immediately submit a revised certificate to
> the Contracting Officer, in the form specified under paragraph (c)(1)
> or (c)(2) of Part I of this provision, as appropriate, to verify
> submission of a completed Disclosure Statement.
>
> **Caution:** Offerors currently required to disclose because they were
> awarded a CAS-covered prime contract or subcontract of \$50 million or
> more in the current cost accounting period may not claim this
> exemption (4). Further, the exemption applies only in connection with
> proposals submitted before expiration of the 90-day period following
> the cost accounting period in which the monetary exemption was
> exceeded.
>
> **[II. Cost Accounting Standards---Eligibility for Modified Contract
> Coverage]{.smallcaps}**

If the offeror is eligible to use the modified provisions of 48 CFR
9903.201-2(b) and elects to do so, the offeror shall indicate by
checking the box below. Checking the box below shall mean that the
resultant contract is subject to the Disclosure and Consistency of Cost
Accounting Practices clause in lieu of the Cost Accounting Standards
clause.

> \[ \] The offeror hereby claims an exemption from the Cost Accounting
> Standards clause under the provisions of 48 CFR 9903.201-2(b) and
> certifies that the offeror is eligible for use of the Disclosure and
> Consistency of Cost Accounting Practices clause because during the
> cost accounting period immediately preceding the period in which this
> proposal was submitted, the offeror received less than \$50 million in
> awards of CAS-covered prime contracts and subcontracts. The offeror
> further certifies that if such status changes before an award
> resulting from this proposal, the offeror will advise the Contracting
> Officer immediately.
>
> **Caution:** An offeror may not claim the above eligibility for
> modified contract coverage if this proposal is expected to result in
> the award of a CAS-covered contract of \$50 million or more or if,
> during its current cost accounting period, the offeror has been
> awarded a single CAS-covered prime contract or subcontract of
> \$50 million or more.

**[III. Additional Cost Accounting Standards Applicable to Existing
Contracts]{.smallcaps}**

The offeror shall indicate below whether award of the contemplated
contract would, in accordance with paragraph (a)(3) of the Cost
Accounting Standards clause, require a change in established cost
accounting practices affecting existing contracts and subcontracts.

  ----------------------------------- -----------------------------------
  \[ \] Yes                           \[ \] No

  ----------------------------------- -----------------------------------

(End of provision)

*Alternate I (Apr 1996)*. As prescribed in 30.201-3(b), add the
following paragraph (c)(5) to Part I of the basic provision:

> \[ \] (5) *Certificate of Disclosure Statement Due Date by Educational
> Institution.* If the offeror is an educational institution that, under
> the transition provisions of 48 CFR 9903.202-1(f), is or will be
> required to submit a Disclosure Statement after receipt of this award,
> the offeror hereby certifies that (check one and complete):
>
> \[ \] (i) A Disclosure Statement Filing Due Date of
> \_\_\_\_\_\_\_\_\_\_\_\_\_ has been established with the cognizant
> Federal agency.
>
> \[ \] (ii) The Disclosure Statement will be submitted within the
> 6-month period ending \_\_\_\_\_\_\_\_\_ months after receipt of this
> award.
>
> Name and Address of Cognizant ACO or Federal Official Where Disclosure
> Statement is to be Filed:
>
> \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\
> \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

## 

## K.4 52.230-7 PROPOSAL DISCLOSURE---COST ACCOUNTING PRACTICE CHANGES (APR 2005) 

The offeror shall check "yes" below if the contract award will result in
a required or unilateral change in cost accounting practice, including
unilateral changes requested to be desirable changes.

  ----------------------------------- -----------------------------------
  \[ \] Yes                           \[ \] No

                                      
  ----------------------------------- -----------------------------------

If the offeror checked "Yes" above, the offeror shall---

> \(1\) Prepare the price proposal in response to the solicitation using
> the changed practice for the period of performance for which the
> practice will be used; and
>
> \(2\) Submit a description of the changed cost accounting practice to
> the Contracting Officer and the Cognizant Federal Agency Official as
> pricing support for the proposal.

## K.5 INSURANCE - IMMUNITY FROM TORT LIABILITY

The offeror represents that it \[ \] is, \[ \] is not a State agency or
charitable institution, and that it \[ \] is not immune, \[ \] is
partially immune, \[ \] is totally immune from tort liability to third
persons.

## 

## K.6 AGREEMENT ON, OR EXCEPTIONS TO, TERMS AND CONDITIONS

The Offeror has reviewed the solicitation (Sections B through J of which
will become the contract) and \[ \] agrees to the terms and conditions
set forth therein; or \[ \] has the following exceptions (continue on a
separate attachment page, if necessary):

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

## K.7 SIGNATURE

By signature hereon, or on an offer incorporating these Representations,
Certifications, and Other Statements of Offerors, the offeror certifies
that they are accurate, current, and complete, and that the offeror is
aware of the penalty prescribed in 18 U.S.C. 1001 for making false
statements in offers.

Solicitation No.
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Offer/Proposal No.
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Date of Offer
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Name of
Offeror\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Typed Name and
Title\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Signature\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
Date\_\_\_\_\_\_\_\_\_\_\_

# 

# 

# SECTION L - INSTRUCTIONS, CONDITIONS, AND NOTICES TO OFFERORS

## L.1 NOTICE LISTING SOLICITATION PROVISIONS INCORPORATED BY REFERENCE

The following solicitation provisions pertinent to this section are
hereby incorporated by reference (by Citation Number, Title, and Date)
in accordance with the FAR provision at FAR \"52.252-1 entitled "
SOLICITATION PROVISIONS INCORPORATED BY REFERENCE (FEB 1998)\" in
Section L of this solicitation. See FAR 52.252-1 for an Internet address
(if specified) for electronic access to the full text of a provision.
Also, the full text of a contract clause may be accessed electronically
at: <http://www.arnet.gov/far>/ or <http://www.usaid.gov/>.

NUMBER TITLE DATE

> FEDERAL ACQUISITION REGULATION (48 CFR Chapter 1)

52.204-6 DATA UNIVERSAL NUMBERING SYSTEM (DUNS) NUMBER OCT 2003

52.214-34 SUBMISSION OF OFFERS IN THE ENGLISH LANGUAGE APR 1991

52.214-35 SUBMISSION OF OFFERS IN U.S. CURRENCY APR 1991

52.215-16 FACILITIES CAPITAL COST OF MONEY JUN 2003

AID ACQUISITION REGULATION (48 CFR Chapter 7)

752.202-1(b) USAID DEFINITIONS CLAUSE---GENERAL SUPPLEMENT FOR USE IN
JAN 1990

ALL USAID CONTRACTS

ALTERNATE 72 (DEC 1986)

**L.2** **52.215-1  Instructions to Offerors---Competitive Acquisition
(JAN 2004)**

(a) *Definitions*. As used in this provision---

> "Discussions" are negotiations that occur after establishment of the
> competitive range that may, at the Contracting Officer's discretion,
> result in the offeror being allowed to revise its proposal.
>
> "In writing," "writing," or "written" means any worded or numbered
> expression that can be read, reproduced, and later communicated, and
> includes electronically transmitted and stored information.
>
> "Proposal modification" is a change made to a proposal before the
> solicitation's closing date and time, or made in response to an
> amendment, or made to correct a mistake at any time before award.
>
> "Proposal revision" is a change to a proposal made after the
> solicitation closing date, at the request of or as allowed by a
> Contracting Officer as the result of negotiations.
>
> "Time," if stated as a number of days, is calculated using calendar
> days, unless otherwise specified, and will include Saturdays, Sundays,
> and legal holidays. However, if the last day falls on a Saturday,
> Sunday, or legal holiday, then the period shall include the next
> working day.
>
> \(b\) *Amendments to solicitations*. If this solicitation is amended,
> all terms and conditions that are not amended remain unchanged.
> Offerors shall acknowledge receipt of any amendment to this
> solicitation by the date and time specified in the amendment(s).
>
> \(c\) Submission, modification, revision, and withdrawal of proposals.
>
> \(1\) Unless other methods (*e.g., *electronic commerce or facsimile)
> are permitted in the solicitation, proposals and modifications to
> proposals shall be submitted in paper media in sealed envelopes or
> packages (i) addressed to the office specified in the solicitation,
> and (ii) showing the time and date specified for receipt, the
> solicitation number, and the name and address of the offeror. Offerors
> using commercial carriers should ensure that the proposal is marked on
> the outermost wrapper with the information in paragraphs (c)(1)(i) and
> (c)(1)(ii) of this provision.
>
> \(2\) The first page of the proposal must show---
>
> \(i\) The solicitation number;
>
> \(ii\) The name, address, and telephone and facsimile numbers of the
> offeror (and electronic address if available);
>
> \(iii\) A statement specifying the extent of agreement with all terms,
> conditions, and provisions included in the solicitation and agreement
> to furnish any or all items upon which prices are offered at the price
> set opposite each item;
>
> \(iv\) Names, titles, and telephone and facsimile numbers (and
> electronic addresses if available) of persons authorized to negotiate
> on the offeror's behalf with the Government in connection with this
> solicitation; and
>
> \(v\) Name, title, and signature of person authorized to sign the
> proposal. Proposals signed by an agent shall be accompanied by
> evidence of that agent's authority, unless that evidence has been
> previously furnished to the issuing office.
>
> \(3\) Submission, modification, revision, and withdrawal of proposals.

i.  Offerors are responsible for submitting proposals, and any
    modifications or revisions, so as to reach the Government office
    designated in the solicitation by the time specified in the
    solicitation. If no time is specified in the solicitation, the time
    for receipt is 4:30 p.m., local time, for the designated Government
    office on the date that proposal or revision is due.

> \(ii\) (A) Any proposal, modification, or revision received at the
> Government office designated in the solicitation after the exact time
> specified for receipt of offers is "late" and will not be considered
> unless it is received before award is made, the Contracting Officer
> determines that accepting the late offer would not unduly delay the
> acquisition; and---
>
> \(1\) If it was transmitted through an electronic commerce method
> authorized by the solicitation, it was received at the initial point
> of entry to the Government infrastructure not later than 5:00 p.m.
> one working day prior to the date specified for receipt of proposals;
> or
>
> \(2\) There is acceptable evidence to establish that it was received
> at the Government installation designated for receipt of offers and
> was under the Government's control prior to the time set for receipt
> of offers; or
>
> \(3\) It is the only proposal received.
>
> (B) However, a late modification of an otherwise successful proposal
> that makes its terms more favorable to the Government, will be
> considered at any time it is received and may be accepted.
>
> \(iii\) Acceptable evidence to establish the time of receipt at the
> Government installation includes the time/date stamp of that
> installation on the proposal wrapper, other documentary evidence of
> receipt maintained by the installation, or oral testimony or
> statements of Government personnel.
>
> \(iv\) If an emergency or unanticipated event interrupts normal
> Government processes so that proposals cannot be received at the
> office designated for receipt of proposals by the exact time specified
> in the solicitation, and urgent Government requirements preclude
> amendment of the solicitation, the time specified for receipt of
> proposals will be deemed to be extended to the same time of day
> specified in the solicitation on the first work day on which normal
> Government processes resume.
>
> \(v\) Proposals may be withdrawn by written notice received at any
> time before award. Oral proposals in response to oral solicitations
> may be withdrawn orally. If the solicitation authorizes facsimile
> proposals, proposals may be withdrawn via facsimile received at any
> time before award, subject to the conditions specified in the
> provision at 52.215-5, Facsimile Proposals. Proposals may be withdrawn
> in person by an offeror or an authorized representative, if the
> identity of the person requesting withdrawal is established and the
> person signs a receipt for the proposal before award.
>
> \(4\) Unless otherwise specified in the solicitation, the offeror may
> propose to provide any item or combination of items.
>
> \(5\) Offerors shall submit proposals in response to this solicitation
> in English, unless otherwise permitted by the solicitation, and in
> U.S. dollars, unless the provision at FAR 52.225-17, Evaluation of
> Foreign Currency Offers, is included in the solicitation.
>
> \(6\) Offerors may submit modifications to their proposals at any time
> before the solicitation closing date and time, and may submit
> modifications in response to an amendment, or to correct a mistake at
> any time before award.
>
> \(7\) Offerors may submit revised proposals only if requested or
> allowed by the Contracting Officer.
>
> \(8\) Proposals may be withdrawn at any time before award. Withdrawals
> are effective upon receipt of notice by the Contracting Officer.
>
> \(d\) *Offer expiration date*. Proposals in response to this
> solicitation will be valid for the number of days specified on the
> solicitation cover sheet (unless a different period is proposed by the
> offeror).
>
> \(e\) *Restriction on disclosure and use of data*. Offerors that
> include in their proposals data that they do not want disclosed to the
> public for any purpose, or used by the Government except for
> evaluation purposes, shall---
>
> \(1\) Mark the title page with the following legend:
>
> *"This proposal includes data that shall not be disclosed outside the
> Government and shall not be duplicated, used, or disclosed---in whole
> or in part---for any purpose other than to evaluate this proposal. If,
> however, a contract is awarded to this offeror as a result of---or in
> connection with---the submission of this data, the Government shall
> have the right to duplicate, use, or disclose the data to the extent
> provided in the resulting contract. This restriction does not limit
> the Government\'s right to use information contained in this data if
> it is obtained from another source without restriction. The data
> subject to this restriction are contained in sheets \[*insert numbers
> or other identification of sheets*\]"* ; and
>
> \(2\) Mark each sheet of data it wishes to restrict with the following
> legend:
>
> *"Use or disclosure of data contained on this sheet is subject to the
> restriction on the title page of this proposal. "*
>
> \(f\) Contract award.
>
> \(1\) The Government intends to award a contract or contracts
> resulting from this solicitation to the responsible offeror(s) whose
> proposal(s) represents the best value after evaluation in accordance
> with the factors and subfactors in the solicitation.
>
> \(2\) The Government may reject any or all proposals if such action is
> in the Government's interest.
>
> \(3\) The Government may waive informalities and minor irregularities
> in proposals received.
>
> \(4\) The Government intends to evaluate proposals and award a
> contract without discussions with offerors (except clarifications as
> described in FAR 15.306(a)). Therefore, the offeror's initial proposal
> should contain the offeror's best terms from a cost or price and
> technical standpoint. The Government reserves the right to conduct
> discussions if the Contracting Officer later determines them to be
> necessary. If the Contracting Officer determines that the number of
> proposals that would otherwise be in the competitive range exceeds the
> number at which an efficient competition can be conducted, the
> Contracting Officer may limit the number of proposals in the
> competitive range to the greatest number that will permit an efficient
> competition among the most highly rated proposals.
>
> \(5\) The Government reserves the right to make an award on any item
> for a quantity less than the quantity offered, at the unit cost or
> prices offered, unless the offeror specifies otherwise in the
> proposal.
>
> \(6\) The Government reserves the right to make multiple awards if,
> after considering the additional administrative costs, it is in the
> Government's best interest to do so.
>
> \(7\) Exchanges with offerors after receipt of a proposal do not
> constitute a rejection or counteroffer by the Government.
>
> \(8\) The Government may determine that a proposal is unacceptable if
> the prices proposed are materially unbalanced between line items or
> subline items. Unbalanced pricing exists when, despite an acceptable
> total evaluated price, the price of one or more contract line items is
> significantly overstated or understated as indicated by the
> application of cost or price analysis techniques. A proposal may be
> rejected if the Contracting Officer determines that the lack of
> balance poses an unacceptable risk to the Government.
>
> \(9\) If a cost realism analysis is performed, cost realism may be
> considered by the source selection authority in evaluating performance
> or schedule risk.
>
> \(10\) A written award or acceptance of proposal mailed or otherwise
> furnished to the successful offeror within the time specified in the
> proposal shall result in a binding contract without further action by
> either party.
>
> \(11\) If a post-award debriefing is given to requesting offerors, the
> Government shall disclose the following information, if applicable:

(i) The agency's evaluation of the significant weak or deficient factors
    in the debriefed offeror's offer.

> \(ii\) The overall evaluated cost or price and technical rating of the
> successful and the debriefed offeror and past performance information
> on the debriefed offeror.
>
> \(iii\) The overall ranking of all offerors, when any ranking was
> developed by the agency during source selection.
>
> \(iv\) A summary of the rationale for award.
>
> \(v\) For acquisitions of commercial items, the make and model of the
> item to be delivered by the successful offeror.
>
> \(vi\) Reasonable responses to relevant questions posed by the
> debriefed offeror as to whether source-selection procedures set forth
> in the solicitation, applicable regulations, and other applicable
> authorities were followed by the agency.

## 

## L.3 52.233-2 SERVICE OF PROTEST (SEP 2006)

> a\. Protests, as defined in section 33.101 of the Federal Acquisition
> Regulation, that are filed directly with an agency, and copies of any
> protests that are filed with the General Accounting Office (GAO),
> shall be served on the Contracting Officer (addressed as follows) by
> obtaining written and dated acknowledgment of receipt from:

Hand-Carried Address: Raymond L. Edler

Supervisory Regional Contracting Officer

Office of Regional Procurement

USAID/Philippines

8/F PNB Financial Center

Pres. Diosdado Macapagal Blvd.

Pasay City 1308

Philippines.

> Mailing Address: Raymond L. Edler

Supervisory Regional Contracting Officer

Office of Regional Procurement

USAID/Philippines

PSC 502, Box 1

FPO AP 96515-1200.

> b\. The copy of any protest shall be received in the office designated
> above within one day of filing a protest with the GAO.

**L.4 52.215-20 REQUIREMENTS FOR COST OR PRICING DATA OR INFORMATION
OTHER THAN COST OR PRICING DATA (OCT 1997)**

a.  Exceptions from cost or pricing data.

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(1) In lieu of submitting cost or pricing data, offerors may submit a
    written request for exception by submitting the information
    described in the following paragraphs. The Contracting Officer may
    require additional supporting information, but only to the extent
    necessary to determine whether an exception may require additional
    supporting information, but only to the extent necessary to
    determine whether an exception should be granted, and whether the
    price is fair and reasonable.

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(i) Identification of the law or regulation establishing the price
    offered. If the price is controlled under law by periodic rulings,
    reviews, or similar actions of a governmental body, attach a copy of
    the controlling document, unless it was previously submitted to the
    contracting office.

(ii) Commercial item exception. For a commercial item exception, the
     offeror shall submit, at a minimum, information on prices at which
     the same item or similar items have previously been sold in the
     commercial market that is adequate for evaluating the
     reasonableness of the price for this acquisition. Such information
     may include-

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(A) For catalog items, a copy of or identification of the catalog and
    its date, or the appropriate pages for the offered items, or a
    statement that the catalog is on file in the buying office to which
    the proposal is being submitted. Provide a copy or describe current
    discount policies and price lists (published or unpublished), e.g.,
    wholesale, original equipment manufacturer, or reseller. Also
    explain the basis of each offered price and its relationship to the
    established catalog price, including how the proposed price relates
    to the price of recent sales in quantities similar to the proposed
    quantities;

(B) For market-priced items, the source and date or period of the market
    quotation or other basis for market price, the base amount, and
    applicable discounts. In addition, describe the nature of the
    market;

(C) For items included on an active Federal Supply Service Multiple
    Award Schedule contract, proof that an exception has been granted
    for the schedule item.

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(2) The offeror grants the Contracting Officer or an authorized
    representative the right to examine, at any time before award,
    books, records, documents, or other directly pertinent records to
    verify any request for an exception under this provision, and the
    reasonableness of price. For items priced using catalog or market
    prices, or law or regulation, access does not extend to cost or
    profit information or to other data relevant solely to the offeror's
    determination of the prices to be offered in the catalog or
    marketplace.

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b.  Requirements for cost or pricing data. If the offeror is not granted
    an exception from the requirement to submit cost or pricing data,
    the following applies:

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(1) The offeror shall prepare and submit cost or pricing data and
    supporting attachments in accordance with Table 15-2 of FAR 15.408.

(2) As soon as practicable after agreement on price, but before contract
    award (except for unpriced actions such as letter contracts), the
    offeror shall submit a Certificate of Current Cost or Pricing Data,
    as prescribed in FAR 15.406-2.

## L.5 52.216-1 TYPE OF CONTRACT (APR 1984)

The Government contemplates award of a Cost Plus Fixed Fee (CPFF)
performance-based, completion contract resulting from this solicitation.

## L.6 52.252-1 SOLICITATION PROVISIONS INCORPORATED BY REFERENCE (FEB 1998)

This solicitation incorporates one or more solicitation provisions by
reference, with the same force and effect as if they were given in full
text. Upon request, the Contracting Officer will make their full text
available. The offeror is cautioned that the listed provisions may
include blocks that must be completed by the offeror and submitted with
its quotation or offer. In lieu of submitting the full text of those
provisions, the offeror may identify the provision by paragraph
identifier and provide the appropriate information with its quotation or
offer. Also, the full text of a solicitation provision may be accessed
electronically at this/these address(es):
[http://arnet.gov/far/]{.underline}

## 

## L.7 GENERAL INSTRUCTIONS TO OFFERORS

The Offeror shall follow the instructions contained herein and furnish
all information as required. Failure to supply such information may
disqualify a proposal.

a.  The offeror is requested to submit a proposal directly responsive to
    the terms, conditions, specifications and clauses of this RFP.
    Proposals not conforming to this solicitation may be categorized as
    unacceptable, thereby eliminating them from further consideration.

b.  Proposals must be received by 3:00 p.m., Manila, Philippines time,
    on the closing date indicated in Block 9 of the Cover Page (Section
    A, SF-33) of this RFP (see FAR 52.215-1 entitled "Instructions to
    Offerors -- Competitive Acquisition," which describes the treatment
    of late proposal submissions). Proposals must remain available for
    acceptance by USAID for a minimum of ninety (90) days. The Offeror
    may submit its proposal by any of the following means:

    1.  Electronically - Internet email with up to six (6) attachments
        (2MB limit) per email compatible with MS WORD, Excel, and Adobe
        Acrobat in a MS Windows environment to
        <492_RFP_GEM-3@usaid.gov>.

> Note: Only those pages requiring original manual signatures should be
> sent via facsimile. Facsimile of the entire proposal is not
> authorized. Or,

2\. Via regular mail - Send five (5) paper copies of a technical
proposal and one (1) original and two (2) copies of a cost proposal. All
mail is subject to US Embassy electronic imagery scanning methods,
physical inspection, and is not date and time stamped prior to receipt
by USAID/Philippines and by the Office of Regional Procurement.

By U.S. Mail: USAID/Philippines

Office of Regional Procurement

PSC 52, Box 1

FPO AP 96515-1200.

By International Mail: Office of Regional Procurement

USAID/Philippines

8/F PNB Financial Center

Pres. Diosdado Macapagal Blvd.

Pasay City, 1308 Philippines

> 3\. Hand delivery (including by commercial courier) of one (1)
> original technical proposal and five (5) paper copies and one (1)
> original and two (2) copies of a cost proposal to the Office of
> Regional Procurement.

USAID/Philippines

Office of Regional Procurement

ATTN: M. De La Torre, Acquisition Specialist

8/F PNB Financial Center

Pres. Diosdado Macapagal Blvd.

Pasay City, 1308 Philippines

Tel. Nos. (632) 552-9923 or (632) 552-9924

4\. If the Offeror submits a hard copy, the Offeror must also include
the Technical Proposal and Cost Proposal on CD-Rom with the text in Word
97 or higher and the budget in Excel.

5\. Regardless of the method used, the Technical Proposal and Cost
Proposal must be kept a separate part of the total proposal package.
Accordingly, the overall proposal shall consist of two (2) physically
separated parts, as follows: Volume I -- Technical Proposal; and Volume
II -- Cost Proposal. Technical Proposals must not make reference to
pricing.

> 6\. Please e-mail us at <492_RFP_GEM-3@usaid.gov> of your intent to
> propose at the earliest practicable date, so that we may anticipate
> the number of proposals to be evaluated.
>
> b\. Submission of Alternate Proposals
>
> All offerors shall submit a proposal directly responsive to the terms
> and conditions of this RFP. If an offeror chooses to submit an
> alternative proposal, the offeror must, at the same time, submit a
> proposal directly responsive hereto for any alternate to even be
> considered. Any proposal received in response to this solicitation
> will be reviewed strictly as submitted and in accordance with the
> evaluation criteria specified in Section M.
>
> c\. Offerors must propose for the entire solicitation. Proposals for
> only a portion of the program will not be considered. Offerors (i.e.,
> prime contractors) are not precluded from proposing subcontractors
> and/or consultants in order to meet this requirement.
>
> d\. USAID reserves the right to perform a pre-award survey which may
> include, but is not limited to: (1) interviews with individuals to
> establish their ability to perform contract duties under project
> conditions; (2) a review of Contractor's financial condition, business
> and personnel procedures, etc.; and (3) site visits to the Offeror's
> organization. USAID, however, is under no obligation to perform such a
> survey. Accordingly, offerors are advised to submit their best
> proposal initially.
>
> e\. Proposals shall be submitted under cover of a signed SF 33,
> "Solicitation, Offer and Award". The SF33 shall accompany the Cost
> Proposal. The person signing the SF-33 must have the authority to
> commit the offeror to all the provisions of the offeror's proposal.
>
> f\. U.S. nationality is required to receive the prime contract under
> this RFP. The required nationality of subcontractors shall be governed
> by the terms of the contract (see Section H).
>
> g\. Offerors should pay particular attention to the Evaluation
> Criteria (see Section M) and to address each item thereof.
>
> h\. The US Government is not obligated to make an award or to pay for
> any costs incurred by the offeror in preparation of a proposal in
> response hereto.
>
> i\. The Offeror should submit its best proposal initially as the
> Government intends to evaluate proposals and make an award without
> discussions (except clarifications) as described in FAR 15.306(a).
> Additionally, the Government reserves the right to conduct discussions
> should the Contracting Officer deem it necessary.
>
> j\. While it not anticipated, USAID reserves the right to request the
> Offeror and the Offeror's proposed Chief of Party to travel to Manila,
> Philippines for interviews and discussions. USAID will not pay any
> travel costs associated with such travel.
>
> k\. Proposals must be clearly and concisely written and must describe
> and define the offeror's understanding and compliance with the
> requirements contained in Section C. The proposal should clearly
> address each of the evaluation factors set forth in Section M. All
> pages of each volume (cost and technical) must be sequentially
> numbered and identified with the name of the offeror and the RFP
> number.

**L.8 UNNECESSARILY ELABORATE PROPOSALS**

Unnecessarily elaborate brochures or other presentations beyond those
sufficient to present a complete and effective response to this
solicitation are not desired and may be construed as an indication of
the offeror's lack of cost consciousness. Elaborate art work, expensive
paper and bindings, and expensive visual and other presentation aids are
neither necessary nor desired.

**L.9 FALSE STATEMENTS**

Proposals must set forth full, accurate and complete information as
required by this solicitation (including attachments). The penalty for
making false statements in proposals is prescribed in 18 U.S.C. 1001.

## 

## L.10 INSTRUCTIONS FOR THE PREPARATION OF THE TECHNICAL PROPOSAL

a.  The Technical Proposal in response to this solicitation should
    provide a straightforward, concise delineation of how the offeror
    intends to carry out and satisfy the requirements of the Statement
    of Work contained in Section C. No contractual price information is
    to be included in the offeror's technical proposal in order that it
    will be evaluated strictly on its technical merit.

b.  The Technical Proposal will be evaluated by a Technical Evaluation
    Committee in accordance with the Technical Evaluation criteria set
    forth in Section M of this RFP. The Technical proposal will be
    evaluated to determine the Offeror's understanding of the required
    services and the adequacy of the Offeror's approach to performing
    the work. The Statement of Work reflects the requirements and the
    objectives of the program. Merely repeating the Statement of Work
    without sufficient elaboration will not be acceptable.

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c.  Technical proposals in response to this solicitation shall be
    divided into sections corresponding to and following the order of
    the evaluation criteria set forth in Section M of this RFP.

d.  Technical proposals shall be limited to limited to seventy-five (75)
    pages. The front and back of a single page shall be counted as two
    pages when information is provided on both the front and back sides
    of a single sheet. Detailed information should be presented only
    when required by specific RFP instructions. Items such as graphs,
    charts, tables may be used as appropriate but will be considered
    part of the page limitation. Key personnel resumes, personnel
    statements of availability, bio-data sheets, dividers, and past
    performance report forms) are not included in the page limitation.
    No material may be incorporated in the proposal by reference,
    attachment, appendix, etc. to circumvent the page limitation. [Pages
    that exceed the page limitation will not be evaluated.]{.underline}

e.  Technical Proposals shall be written in English, typed on standard 8
    1/2\" x 11\" paper (210 mm by 297mm paper), single spaced, only 12
    font type may be used, with each page numbered consecutively. Page
    margins shall be a minimum of one inch at the top, bottom and each
    side.

f.  The offeror shall submit, as part of its proposal, a list of all
    current contracts and subcontracts and those completed within the
    last five years that are similar in size, scope, and complexity to
    the statement of work in this solicitation. The list should be
    included as an annex or attachment to the technical proposal and
    will not count against the page limitation.

g.  At a minimum, the technical proposal should include the following:

> 1\) Table of Contents

The Technical Proposal shall contain a Table of Contents with page
numbers indicated.

> 2\) Technical Approach
>
> The Offeror shall demonstrate its understanding, ability and overall
> technical management approach, including its approach to
> infrastructure construction, to perform the requirements described in
> the SOW, and should provide a description of how the organization
> expects to effectively bring its disciplines, functional skills and
> experiences to bear on the requirements and work collaboratively with
> USAID, the local government and other entities and partners it will
> interact with during the performance of the contract. The offeror
> should pay close attention to all components/activities and the
> performance targets (expected results) as described in Section C.
>
> Offerors will be expected to convey their strategic sense of the peace
> and development situation in Mindanao and the Sulu Archipelago and the
> effectiveness of the efforts being undertaken by the Government and
> the various donors who implement assistance efforts in Mindanao.
> Offerors must describe how the various activities that will be
> implemented under GEM-3 will best be employed to maximize the
> contributions to peace and development in Mindanao. This will include
> a discussion of how
>
> the offeror will approach and implement activities that are being
> undertaken in areas where security issues are a factor.
>
> The offeror must provide a tentative Life of Project work plan for
> implementing the project activities, including all technical aspects
> and approaches. The plan will outline how the tasks/activities and
> performance targets will be integrated and accomplished within the
> five year timeframe of the contract and address the scenario of
> fluctuations in funds and the offeror's ability to scale up or scale
> down activities as the situation warrants.

1.  Management Plan

> The offeror's proposal shall describe a comprehensive management plan
> which includes a staffing plan and organizational chart. The staffing
> plan should relate directly to the strategies and activities and
> approaches proposed, and cover long-term staff, short-term advisors,
> home and field offices. The organizational chart must include proposed
> personnel to be funded under the contract and a narrative which
> corresponds to the organization chart explaining the functions and
> responsibilities of each position and the relationship and management
> structure of the organization.
>
> The offeror's management plan will be evaluated to assess the
> offeror's planning, organizing, managing of resources and
> subcontractors, tracking, reporting and controlling contract progress
> and costs. The evaluation will include how well proposed management
> techniques will simplify the early identification and resolution of
> issues or problems. Additionally the plan will be evaluated to assess
> the offeror's ability to assign the appropriate mix of skills to
> ensure continuity, timeliness, and successful accomplishment of the
> program during periods of funding and (correspondingly) workload
> fluctuations.
>
> The Management Plan shall describe the approach of selecting and
> managing subcontractors and construction projects. Provide a
> description of how construction projects will be financed and costs
> effectively contained for subcontractors.
>
> The offeror shall provide a mobilization plan with a timeline which
> details when Contractor's project office(s) will be functioning and
> staff mobilized in the Philippines.
>
> [Note:]{.underline} As can be seen in Section C. the GEM-3 is large
> and multi-faceted and will be implemented in a fast changing
> environment where problems and opportunities can suddenly arise, and
> where the security situation can be volatile. It will also be
> implemented in an environment where USAID itself may be going through
> structural changes, and where annual funding levels may be subject to
> sizable upward or downward moves. Because of this, the Contractor will
> have to deal with a certain amount of uncertainty while implementing
> the GEM 3 program, and be prepared to scale up or scale down
> activities as the funding situation warrants. For example, with
> respect to the infrastructure component, USAID wishes to have up to
> 1000 community level "Barangay Infrastructure Projects" undertaken
> over the life of the GEM-3 Program, with each BIP having construction
> costs of between \$5,000 and \$50,000, and with an average
> construction cost of about \$25,000. Annual BIP construction targets
> are outlined in the SOW. The actual number of BIPs undertaken over the
> life of the contract, or in any particular year will be very much
> subject to the level of the funds made available to USAID over the
> life of the contract, or in any particular year. Similar situations
> apply with respect to Regional Impact (infrastructure) Projects
> (RIPS), and to the various school computerization efforts to be
> carried out under the Workforce Improvement components. In each of
> these cases, life of contract targets, and particular year targets,
> will be subject to actual funding availability. While USAID wishes
> that all targets outlined in this document will be attained, and
> anticipates that funds required to do so will be available, offerors
> are advised that because of fluctuations in funds availability, it may
> be appropriate to scale up or scale down certain activities from year
> to year. Offerors should address the scenario of fluctuations in funds
> availability and the impact on the project and how the offeror could
> or would quickly increase or cut staff resources in different
> specialties as and when this became necessary.

2.  Personnel Qualifications and Availability

> The Offeror shall identify in summary format the names and anticipated
> positions of the individuals proposed, including key and non-key
> personnel, those employed by subcontractors and all teaming or other
> contractor arrangements, short-term personnel or quantity thereof, and
> home office staff. The Offerors shall indicate the level of effort for
> each proposed person who will perform under the contract. The Offeror
> shall submit a complete and current resume for each proposed
> professional employee (not exceeding 3 pages each) who will be
> utilized in the program if award is made. These resumes must clearly
> describe the individuals' education, experience, and professional
> credentials. For each key person (see also L.11 entitled "Instructions
> Regarding Key Personnel") a signed letter of intent indicating his/her
> availability under the contract, in terms of days after award of the
> contract and in terms of long-term commitment to the program as well
> as agreement to the compensation levels and limitations set forth in
> the contract and the Offeror's proposal, shall be attached to their
> resume and submitted for each such person; the letters will not be
> part of the page limitation. Failure to submit letters of commitment
> may result in the offeror's proposal being eliminated from
> consideration for award for failure to meet the requirements of the
> solicitation.
>
> The Offeror's proposal for proposed key personnel must also include
> supervisory contact details, including names of USAID Cognizant
> Technical Officers (CTOs), if applicable. These which will not be part
> of the page limitation. 
>
> The proposal must provide a chart, in an annex which will not count
> against the page limit of the technical proposal, listing the key
> personnel proposed for all contracts awarded during the last three
> years. The chart must include the following: personnel proposed and
> expected duration of position; key personnel actually performing under
> the contract and the duration of actual assignment; and replacement
> key personnel, if any, and the reason for the replacement.

3.  Capabilities and Experience of Organization

> The Offeror shall provide a clear presentation of the specialized
> competence that the organization and individuals possess including its
> experience in the management of multi-faceted efforts which include
> major infrastructure construction components. This shall include the
> relevant experience and representative accomplishments of the
> organization, proposed team members, including subcontractors and/or
> consultants, in managing and conducting activities within the past
> five (5) years that are similar in size, scope and complexity to those
> required by the Statement of Work set forth in this solicitation.
>
> The proposal shall also demonstrate the Offeror's capabilities in the
> timely mobilization of short-term technical assistance experts and
> teams.
>
> The proposal must also demonstrate that the Offeror has adequate
> systems and procedures related to: personnel policies and recruitment,
> travel policies; financial management; procurement, including
> subcontracting; property management; project management;
> contract/subcontract administration; progress reporting; and other
> areas in order to successfully comply with contract requirements and
> accomplish the expected results.

4.  Past Performance

> The Offeror shall submit, as part of its proposal, a list of all
> current contracts and subcontracts and those completed within the last
> five (5) years that are similar in size, scope and complexity to the
> statement of work in this RFP. Additionally, for the three most recent
> similar contracts of the Offeror, and for each subcontractor,
> consultant or teaming arrangement, provide the customer's name,
> contract number, contract value, current postal and e-mail addresses,
> telephone number for a currently available client/customer point of
> contact. These lists shall be attached as an annex to the technical
> proposal, which will not count against the page limit. Also, the
> Offeror shall submit completed Contractor's Performance Reports for
> contracts during the past five (5) years, for efforts similar in size,
> scope and complexity to the work described in the SOW. The completed
> Contractor Performance Reports shall be attached as an annex to the
> technical proposal and will not count against the page limit for the
> technical proposal.
>
> If extraordinary problems impacted any of the referenced contracts or
> subcontracts, provide a short explanation and the corrective action
> taken.
>
> Offerors may describe any quality awards or certifications that
> indicate exceptional capacity to perform/provide the services or
> products described in the Statement of Work of this solicitation.
>
> If the Offeror does not have a record of relevant past performance
> information from contracts similar in size, scope and complexity to
> the SOW requirement, or past performance information is not available,
> the Offeror will not be evaluated favorably or unfavorably on past
> performance but will be given a "neutral" rating.
>
> References identified by the Offeror may be contacted by the
> Government and information received may be used in the evaluation of
> the Offeror's past performance. In addition, USAID reserves the right
> to acquire relevant past performance information from additional
> sources for purposes of evaluation and may consider such information
> for purposes of evaluation of past performance if necessary.
>
> The Government will consider in its evaluation the relevance of the
> Offeror's past performance information considering timeliness of
> performance, cost control, quality of product or service, customer
> satisfaction, and effectiveness of key personnel, the Offeror's
> discussion of past performance problems, if any, and the corrective
> actions taken to resolve those problems.

## L.11 INSTRUCTIONS REGARDING KEY PERSONNEL

The contract proposed by this solicitation includes a key personnel
clause, and the quality of key personnel proposed will be an evaluation
factor. Offerors shall propose the positions under the contract that are
considered key to achieving the Program's goal and results. Key
personnel must include a Chief of Party and should at a maximum, number
five. However, except for the Chief of Party position, there is no USAID
preference for particular functions in a proposed organization. The
Offeror must include as part of its proposal, letters of commitment
signed by each person proposed as key personnel confirming their present
intention to serve in the stated position and their present availability
to serve the project.

Key personnel shall serve the project and shall not be diverted to other
current or future projects of the Contractor. The Contractor shall
likewise be responsible for the cost of moving and replacing key
personnel if they serve for a period less than the requisite period.

Please note that USAID reserves the right to interview the candidates
proposed for key positions by offerors whose proposals have the best
chance of being selected for award.

## L.12 INSTRUCTIONS FOR THE PREPARATION OF THE COST PROPOSAL

a.  The Cost Proposal shall contain a Table of Contents with page
    numbers indicated. All pages must be sequentially numbered, and
    there must be a divider page between each part. Failure to include
    all information, may result in rejection of the proposal as
    unacceptable.

b.  The Offeror shall submit the cover page (Section A) of this
    solicitation (Standard Form 33, "Solicitation, Offer and Award")
    with Items 12 through 18 completed.

c.  The Offeror shall submit Standard Form 1447 entitled "Proposal Cover
    Sheet (Cost or Pricing Data Not Required." The Standard Form 1447
    shall be supplemented as described below.

d.  The Cost Proposal should set forth in detail the financial and
    management structure as it relates to performance of services
    described in the solicitation. It shall include whatever schedules
    are described in the solicitation. It shall explain the proposed
    costs and fixed fee, if any. The offeror's estimating process must
    be clear and concise and should focus on costs the contractor will
    incur in planning and implementing the various

> efforts discussed in the SOW. However, because of the nature of some
> of the work to be carried out under this contract, and because
> accurate assessments of the costs of implementing some activities
> cannot be known until more detailed design work is undertaken during
> contact implementation; therefore, offerors shall use "plug figures"
> as shown in e. below.
>
> e\. The Cost Proposal shall be specific, complete in every detail. The
> Offeror shall supplement Standard Form 1448 in sufficient detail to
> permit cost analysis. The detailed budget breakdown shall follow the
> budget format as shown below.
>
> CLINs
>
> [01]{.underline} [02]{.underline} [03]{.underline} [04]{.underline} 05
> TOTAL
>
> Salaries ­­­\_\_\_\_\_\_\_\_\_ \_\_\_\_\_\_\_\_ \_\_\_\_\_\_\_\_\_
> \_\_\_\_\_\_\_\_\_ \_\_\_\_\_\_\_\_\_ \_\_\_\_\_\_\_\_\_\_\_\_\_
>
> Consultants \_\_\_\_\_\_\_\_\_ \_\_\_\_\_\_\_\_ \_\_\_\_\_\_\_\_\_
> \_\_\_\_\_\_\_\_\_ \_\_\_\_\_\_\_\_\_ \_\_\_\_\_\_\_\_\_\_­­­\_\_\_
>
> Fringe Benefits ­­­\_\_\_\_\_\_\_\_\_ \_\_\_\_\_\_\_\_ \_\_\_\_\_\_\_\_\_
> \_\_\_\_\_\_\_\_\_ \_\_\_\_\_\_\_\_\_ \_\_\_\_\_\_\_\_\_\_\_\_\_
>
> Overhead \_\_\_\_\_\_\_\_\_ \_\_\_\_\_\_\_\_ \_\_\_\_\_\_\_\_\_
> \_\_\_\_\_\_\_\_\_ \_\_\_\_\_\_\_\_\_ \_\_\_\_\_\_\_\_\_\_­­­\_\_\_
>
> Travel and Transportation \_\_\_\_\_\_\_\_\_ \_\_\_\_\_\_\_\_
> \_\_\_\_\_\_\_\_\_ \_\_\_\_\_\_\_\_\_ \_\_\_\_\_\_\_\_\_
> \_\_\_\_\_\_\_\_\_\_\_\_\_
>
> Allowances ­­­\_\_\_\_\_\_\_\_\_ \_\_\_\_\_\_\_\_ \_\_\_\_\_\_\_\_\_
> \_\_\_\_\_\_\_\_\_ \_\_\_\_\_\_\_\_\_ \_\_\_\_\_\_\_\_\_\_\_\_\_
>
> Other Direct Costs ­­­\_\_\_\_\_\_\_\_\_ \_\_\_\_\_\_\_\_
> \_\_\_\_\_\_\_\_\_ \_\_\_\_\_\_\_\_\_ [12,500,000]{.underline}
> \_\_\_\_\_\_\_\_\_\_\_\_\_
>
> Equipment \_\_\_\_\_\_\_\_\_ \_\_\_\_\_\_\_\_ \_\_\_\_\_\_\_\_\_
> \_\_\_\_\_\_\_\_\_ \_\_\_\_\_\_\_\_\_ \_\_\_\_\_\_\_\_\_\_\_\_\_
>
> Subcontracts [65,000,000­­­]{.underline} \_\_\_\_\_\_\_\_
> \_\_\_\_\_\_\_\_\_ \_\_\_\_\_\_\_\_\_ \_[5,700,000]{.underline}
> \_\_\_\_\_\_\_\_\_\_\_\_\_
>
> G&A \_\_\_\_\_\_\_\_\_ \_\_\_\_\_\_\_\_ \_\_\_\_\_\_\_\_\_
> \_\_\_\_\_\_\_\_\_ \_\_\_\_\_\_\_\_\_ \_\_\_\_\_\_\_\_\_\_­­­\_\_\_
>
> Total Estimated Cost \_\_\_\_\_\_\_\_\_ \_\_\_\_\_\_\_\_
> \_\_\_\_\_\_\_\_\_ \_\_\_\_\_\_\_\_\_ \_\_\_\_\_\_\_\_\_
> \_\_\_\_\_\_\_\_\_\_­­­\_\_\_
>
> Plus: Fixed Fee ­­­\_\_\_\_\_\_\_\_\_ \_\_\_\_\_\_\_\_ \_\_\_\_\_\_\_\_\_
> \_\_\_\_\_\_\_\_\_ \_\_\_\_\_\_\_\_\_ \_\_\_\_\_\_\_\_\_\_\_\_\_
>
> Total Estimated Cost plus Fixed Fee \_\_\_\_\_\_\_\_\_
> \_\_\_\_\_\_\_\_ \_\_\_\_\_\_\_\_\_ \_\_\_\_\_\_\_\_\_
> \_\_\_\_\_\_\_\_\_ \_\_\_\_\_\_\_\_\_\_­­­\_\_\_
>
> For the Option, the cost proposal should follow the above format.
> There are no plug figures for the option.
>
> f\. All cost and financial data should be fully supported, and
> organized in a manner that facilitates review. The plug figures shown
> in Section B.4.a.and L.12.e. above shall be used by all offerors. The
> cost and financial data shall include the following information/data:
>
> 1\) Direct Employee Salaries -- List employee name (when identified),
> functional position and duration of assignment (in terms of person
> months). The annual salary of an employee is that individual's basic
> compensation exclusive of fringe benefits, travel incentives, housing
> allowances, differentials, and/or other bonuses. The salaries shall be
> escalated at the ceiling annual salary rate increase proposed by the
> Offeror but not to exceed 3% per annum for expatriate staff. No CCN or
> TCN may exceed the prevailing grade under the Mission's FSN
> Compensation Plan. As of the date of this solicitation, the maximum
> rate under the Mission's FSN Compensation Plan is \$39,000 per year
> (using an exchange rate of US\$1.00 = Php.48), but may be less
> depending on the grade at which CCNs of equivalent qualifications who
> are employed by the U.S. Government are classified.
>
> \(i\) U.S. Personnel

\- Home Office Professional

\- Home Office Non-professional

\- Field Staff Professional

\- Field Staff Non-professional

\(ii\) Cooperating or Third Country Nationals

\- Field Staff Professional

\- Field Staff Non-professional

2.  Consultants -- Defined as any especially well-qualified person who
    is engaged, [on a temporary or intermittent basis]{.underline} to
    advise the Contractor and who is not an officer or employee of the
    Contractor who performs other duties for the Contractor. CCN
    compensation may not exceed the prevailing grade under the Mission's
    FSN Compensation Plan as indicated above.

> \- Consultant Fees - domestic
>
> \- Consultant Fees -- overseas

3.  Fringe Benefits - Describe the allocation method and base used.
    Provide a copy of the latest Negotiated Indirect Cost Rate Agreement
    (NICRA) with any Government agency. Fringe Benefits, if not included
    in the Offeror's indirect costs, shall be expressed as a
    percentage(s) of salaries, and the proposal shall present the total
    fringe benefit costs.

4.  Indirect Costs - Describe the allocation method and base used.
    Provide a copy of the latest Negotiated Indirect Cost Rate Agreement
    (NICRA) with any Government agency. The detailed budget breakdown
    shall be structured and formatted to clearly and easily identify the
    rate(s) applied, and the resulting dollar amount. If the Offeror has
    both home office and off-site/field rates, and/or if the Offeror has
    more than one type of rate (e.g., overhead, G&A, etc.) the detailed
    budget breakdown shall be structured so as to permit easy
    identification of the bases to which the rates apply.

> \- Home Office
>
> \- Field Staff

5.  Travel and Transportation -- Provide the number of trips,
    destination, purpose and cost by traveler. Estimated travel and
    transportation costs shall be in accordance with the clauses of this
    contract entitled "Travel and Transportation" (AIDAR 752.7002) and
    "Allowable Cost and Payment" (FAR 52.216-7). The proposal shall
    specify, for each traveler the itinerary, in terms of points of
    origin/destination, the estimated air fares, any transportation
    (e.g., excess baggage, shipment of household effects,
    privately-owned vehicle, shipment of unaccompanied baggage) costs.
    Estimated per diem costs shall be in

> \- U.S. Travel (Personnel and dependents)
>
> \- International Travel (Personnel and dependents)
>
> \- Other Personnel Travel
>
> \- Transportation of Household Effects, Baggage and Vehicles
>
> \- Storage of Household Effect and Vehicles
>
> \- Per Diem
>
> \- Other (Describe)

6.  Allowances -- Describe by employee/position

> \- Post Differential
>
> \- Temporary Lodging
>
> \- Housing
>
> \- Education
>
> \- Educational Travel
>
> \- Other (Describe)

7.  Other Direct Costs -- Itemize and provide complete details of other
    direct costs, including unit prices that may be incurred.

8.  Equipment, Materials and Supplies -- Itemize and provide complete
    details, including unit prices and total costs.

9.  Subcontracts -- The prime contractor's budget shall include a lump
    sum for each subcontract(s). Following the prime contactor's
    detailed budget breakdown, detailed budget breakdowns for
    subcontractor(s) shall be presented. Subcontractor budget shall not
    be intermingled. The first page of each subcontractor budget shall
    be the Standard Form 1447. The second page shall be a summary
    budget. Following the summary budget, a detailed budget breakdown
    for each year shall be presented in accordance with the instructions
    for the prime contractor. Each page shall have the year and the
    subcontractor's name (if known) clearly marked, and be signed and
    dated by an authorized representative of the subcontractor. A
    divider page shall separate each subcontractor's detailed budget
    breakdown.

10. Fixed Fee - The detailed budget breakdown must indicate the fixed
    fee in dollars, and indicate the percentage which the base fee
    dollars is to the total estimated costs. By statutory law, the fixed
    fee may not exceed 10% of the total estimated contract cost.

11. Contract Line Items (CLINS) -- The offeror shall provide a budget
    for each line item (CLIN) listed in Section B. Supporting
    information should be provided as shown above to allow a complete
    analysis of each line item of cost. This will include the costs
    associated with any proposed subcontract.

12. A completed Certificate of Current Cost or Pricing Data for the
    offeror and each proposed subcontractor, if the subcontract will
    exceed \$550,000. (This certificate shall be resubmitted after
    negotiations, if any, have been concluded and agreement has been
    reached.)

13. The offeror shall submit fully completed and signed Contractor
    Employee Biodata Sheets (AID 1420-17), regardless of whether the
    individual is to be furnished by the prime contractor or a
    subcontractor, to support all direct salary and consultant fee
    costs. If specific individual persons have not yet been identified,
    indicate the position title and the maximum salary which will be
    paid for the position.

14. A staffing and level of effort schedule (include subcontractors).
    Format should include:

> \(i\) Position

\(ii\) Name

\(iii\) Organization

\(iv\) Person months, and

\(v\) Proposed starting salary/rate.

Offeror should use the same format for short-term technical assistance;
however, where STTA requirements have not yet been determined by the
offeror, show "various", propose the number of person months and the
average daily rate.

15. A letter from your cognizant Government Audit Agency stating whether
    or not your accounting system has been approved and your latest
    final, accepted, indirect cost rates, the current acceptable rates
    for bidding purposes, the base to which such rates are to be applied
    and the method of application. Also state: the name and address of
    the cognizant agency; the name and telephone number of the cognizant
    auditor; and the types of contract for which your accounting system
    has been approved. The offeror shall also provide substantially the
    same information for each proposed subcontractor.

16. If the offeror has no cognizant Government Audit Agency, the offeror
    should provide balance sheets and profit and loss statements for the
    last two complete years and for the current year to date. The profit
    and loss statement should include details of the total cost of
    services sold, including a listing of the various indirect costs and
    be supplemented by information on the organization's customary
    overhead method, together with supporting computations of the basis
    of the proposed overhead rates. Audited balance sheets and profit
    and loss statements if not available, return and submitted to
    Federal tax authorities for the offeror\'s last two complete fiscal
    year\'s and for current fiscal years may be unaudited) the profit
    and loss statements should include details of the total cost
    services sold, and be annotated by either the auditor or offeror to
    delineate the offeror\'s indirect expense pools and customary
    indirect cost distribution base.

17. A proposed ceiling rate/s for indirect costs. Provide a
    schedule/table showing proposed indirect cost rates and ceilings for
    the prime and subcontractors.

18. Schedule of proposed air transportation and per diem (include
    subcontractors). Format should include: (a) locality, (b) number of
    trips, (c) general purpose, (d) proposed round trip airfare, and (e)
    number of per diem days and rate/s.

19. If subcontracting is contemplated, indicate the types of work to be
    subcontracted, stating:

> a\) The percentage of each type of work subcontracted and dollar value
> of the proposed subcontract/s.
>
> b\) Extent to which competition will be solicited prior to selection
> of subcontractor/s.
>
> c\) Method of analyzing prospective subcontractor proposals; and
>
> d\) Types of subcontracts usually executed by your organization.

20. State what effect or impact, if any, your current workload may have
    on your organization's ability to start up activities immediately
    and perform the work covered under this project.

21. The offeror must submit sufficient evidence of responsibility in
    order for the Contracting Officer to make a determination of
    responsibility pursuant to the requirements of FAR 9.104. The
    Cost/Business Management Proposal should substantiate that the
    offeror---

> a\) Has adequate financial resources or the ability to obtain such
> resources as required during the performance of the contract;
>
> b\) Is able to comply with the required or proposed delivery of
> performance schedule, taking into consideration all existing business
> commitments, commercial as well as governmental;
>
> c\) Has satisfactory record of performance; and
>
> d\) Has satisfactory record of integrity and business ethics.

22. A statement concerning the proposed contract format. If you take
    exception to the format, you must specify the exception and the
    basis therefore.

23. Identification of any proprietary information contained in the
    proposal.

24. If the contractor is a joint venture or partnership, the business
    management proposal must include a copy of the agreement between the
    parties to the joint venture/partnership. The agreement will include
    full discussion of the relationship between the firms including
    identification of the firm which will have responsibility for
    negotiation of the contract, which firm will have accounting
    responsibility, how work will be allocated, overhead calculated and
    profit share, and the express agreement of the principals thereto to
    be held jointly and severally liable for the acts or omissions of
    the other.

> g\. The Cost Proposal consists of the actual offer to enter into a
> contract to perform the required work. It also includes the required
> representations and certifications, other statements of the offeror,
> and other administrative documents and information. Other required
> documents and information, as described below, include:

1.  Fully executed Standard Form 33 (SF 33)

2.  Offeror and subcontractors representations and certifications

3.  Offeror's Small Business and Small Disadvantaged Business
    Subcontracting Plan

4.  Fully executed SF 1447

5.  Completed Employee Biographical Data Sheets

6.  Proposed ceiling rates on indirect costs

7.  Other required submittals (see list of attachments in Section J).

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h.  The offeror should provide the name, e-mail address, telephone
    number/s, and fax numbers of the individual in the offeror's
    organization to be contacted, if necessary, during the evaluation of
    the proposal. Also, the offeror should provide the name/s of the
    person/s who wrote the proposal (the technical and the cost/business
    management proposal).

**L.13 AUTHORITY TO BIND THE GOVERNMENT**

The Contracting Officer is the only individual who may legally commit
the Government to the expenditure of public funds. No cost chargeable to
the proposed agreement may be incurred prior to receipt of either a
fully executed contract, or a specific written authorization from the
Contracting Officer. Any other commitment, either explicit or implied,
is invalid.

# 

# 

# SECTION M - EVALUATION FACTORS FOR AWARD

## 

**M.1. 52.217-5 EVALUATION OF OPTIONS (JUL 1990)**

Except when it is determined in accordance with FAR 17.206(b) not to be
in the Government's best interests, the Government will evaluate offers
for award purposes by adding the total price for all options to the
total price for the basic requirement. Evaluation of options will not
obligate the Government to exercise the option(s).

**M.2. GENERAL -- PROPOSAL EVALUATION**

> a\. In accordance with FAR 15.3, Source Selection, a Source Evaluation
> Panel has been established for this acquisition. Proposals received in
> response to the RFP will be evaluated using the evaluation criteria
> set forth Section M. below. The offeror selected for award will be the
> responsible offeror whose proposal is determined to provide best
> overall value to the Government.
>
> b\. Section L. provides guidance to offerors concerning the
> documentation the source evaluation panel considers necessary to
> conduct an informed evaluation of each proposal. The offeror must
> furnish adequate and specific information in its response. A proposal
> may be eliminated from further consideration before a detailed
> evaluation is performed if the proposal is considered obviously
> deficient as to be totally unacceptable on its face or which prices
> are inordinately high or unrealistically low. In the event a proposal
> is rejected the offeror will be sent a notice stating the reason(s)
> that the proposal will not be considered for further evaluation.
>
> c\. When the term "Offeror" is used it is defined as a single
> contractor or a contractor and any proposed subcontractor(s), as
> applicable. In accordance with FAR Subpart 42.15, in conducting its
> evaluation of proposals, the Government may seek information from any
> source it deems appropriate to obtain or validate information
> regarding an offeror's past performance

## M.3. BASIS FOR CONTRACT AWARD

Technical and cost factors will be evaluated as described below.

a\. The technical proposal will be evaluated and point scored by a
technical evaluation committee, comprised of panel members from USAID
and the Host Government, utilizing the criteria identified in Section
M.4.

b\. The instructions set forth in Section L provide guidance to the
offeror concerning the documentation that will be evaluated by the
technical panel members. The offeror must furnish adequate and specific
information in its proposal. Responses which merely repeat or
reformulate the governing requirements as set forth in the Statement of
Work are not acceptable.

c\. The cost proposal will not be point scored but will be evaluated by
the method described in this Section.

d\. The technical and cost criteria, presented below, will serve as the
basis upon which proposals will be evaluated. The relative order of
importance is shown below. The relative weight accorded to each
technical criterion is expressed in points with 100 points possible.
Within each criterion, sub-criteria are approximately equal in weight if
not expressed in points. In evaluating the proposals the Technical
Criteria are considered significantly more important that the estimated
cost, which will not be point scored, but will be evaluated to determine
cost reasonableness and realism. Information concerning each criterion
must be included in the proposal if it is to be considered in the
evaluation.

e\. Offerors should note that the criteria below will serve as the
standard against which all proposals will be evaluated, and serve to
identify the significant areas and matters that offerors should address
in their proposals. Any selection for award resulting from this
solicitation will be based upon that qualified proposal determined to
offer the best overall value to the Government as determined through
evaluation in accordance

with the criteria set forth in this Section. In determining the best
value, the Government will assess whether the strengths and weaknesses
between or among technical proposals indicate superiority from the
standpoint of: what the difference might mean in terms of anticipated
performance; and what the evaluated cost/price to the Government would
be to take advantage of the difference. The Government will not make an
award at a price premium it considers disproportionate to the benefits
associated with the evaluated superiority of one technical proposal over
another.

f\. Pursuant to FAR 52.215-16, "Contract Award", USAID reserves the
right to award a contract under this RFP on the basis of initial offers
without discussions.

g\. After the final evaluation of the proposals, the Contracting
Officer, will make the award to the offeror whose proposal offers the
best value to the Government considering both technical and cost
factors.

**M.4 TECHNICAL EVALUATION CRITERIA**

> **a. Technical Approach (30 points)**

The extent that the Offeror's proposal demonstrates a clear and
effective overall technical management approach with particular
attention to its approach to infrastructure construction, to accomplish
the program objectives and attain performance targets (expected results)
for each of the components as discussed in the statement of work. (20
points)

Program Implementation Workplan (10 points)

> **b. Management Plan (20 points)**
>
> Describe how the Offeror would be organized and managed, and how its
> activities would be coordinated among all of the program components.
> (5 points)
>
> Describe the division of roles, responsibilities and authority, and
> the process for decision making with the Offeror's in-country team,
> and between the home office and the field. (5 points)
>
> Demonstrate the Offeror's ability to assign the appropriate mix of
> skills to ensure continuity, timeliness and successful accomplishment
> of the effort during workload and periods of budget fluctuations (5
> points)

Mobilization Plan (5 points)

c.  **Qualifications and Availability of Proposed Personnel (20
    points)**

> Demonstrated capability, experience, education and other
> qualifications of the Offeror's proposed key personnel for the work
> called for in the governing Statement of Work (SOW). (10 points)
>
> Demonstrated capability, experience, education and other
> qualifications of the Offeror's proposed non-key personnel and
> short-term professional consultants for the designated work called for
> in the governing SOW.
>
> (5 points)

Availability of proposed key personnel to continue work the full term of
the contract (5 points)

> **d. Capabilities and Relevant Experience of the Organization (10
> points)**
>
> Demonstrated management experience in projects of similar, size, scope
> and complexity (7 points)
>
> Demonstrated management systems and policies (3 points)
>
> **e. Past Performance (20 points)**
>
> Quality of services/work;
>
> Timeliness of Performance;
>
> Cost Control and Effectiveness;
>
> Satisfaction by USAID;
>
> Satisfaction of End Users;
>
> Effectiveness of Key Personnel.

**M.5 COST EVALUATION**

The cost proposal will not be point scored. Cost proposals will be
evaluated for completeness, reasonableness, realism and allowability in
accordance with FAR 15.404. The amount of fee(s) proposed will be
considered as part of the best value determination. The Contracting
Officer will conduct the cost analysis utilizing several bases of
comparison including the independent government cost estimate,
comparisons with other offerors' proposals, market prices, recent prices
of the same or substantially the same services purchased under similar
terms and conditions and the supporting data in the proposal, as
described below:

> a\. **Cost Reasonableness**

The cost proposal will be evaluated to determine the appropriateness of
the underlying assumptions and estimating techniques used to generate
the proposed costs and the consistency of those assumptions and
techniques for the proposed accomplishment of the required work called
for in the RFP. In determining reasonableness, the Contracting Officer
will look at avoidance of excessive salaries, excessive home office
staff visits, total resource allocation for programmatic interventions,
amount of proposed fee (if any), and cost efficiency of proposed other
direct costs.

b**. Cost Realism**

The cost proposal will be evaluated to determine if the proposed costs
are realistic for the work to be performed, reflect a clear
understanding of the required work, and are consistent with the various
elements of the offeror's technical proposal. Inconsistencies may raise
concerns regarding the offeror's understanding of the work requirements
and its ability to perform the work for the proposed cost. As a result
of the cost realism analysis, the Contracting Officer may adjust the
offeror's proposed costs to reflect any additions or reductions in costs
to realistic levels.

c**. Completeness**

The cost proposal will be evaluated for completeness based upon the
estimates used in the cost proposal for the performance of the
requirements as addressed in this solicitation.

## M.6 DETERMINATION OF THE COMPETITIVE RANGE AND CONTRACT AWARD

The competitive range of offerors with whom negotiation will be
conducted (if necessary) will be determined by the Contracting Officer
pursuant to FAR 15.306(c) based on such factors as technical evaluation
ranking of the proposal, initial cost/price proposed and other items set
forth in this section. Offerors are hereby advised that only those
proposals deemed to have a reasonable chance of being selected for award
of a contract will be included in the competitive range. Offerors who
are not included in the competitive range will be promptly notified.

In accordance with FAR 52.215-1(f), and as set forth in Section L of
this solicitation, award will be made by the Contracting Officer to the
responsible offeror whose proposal, conforming to the solicitation,
provides the best overall value and the above technical and cost factors
considered. The scoring set forth above will be used by the Contracting
Officer as a guide in determining which proposal offers the best value.

**M.7 SELECTION**

The Government intends to award one contract to the responsible offeror
whose proposal meets the requirements of the RFP, and is determined to
be the best value to the Government in accordance with 15.101. Selection
of the best value will be determined through a process of evaluating the
strengths and weaknesses of each offeror's proposal in accordance with
the evaluation criteria stated in this section. In making the best value
determination, the Government is more concerned with obtaining a
superior technical proposal than making award to the offeror with the
lowest evaluated cost consisting of the most probable cost and fee.
However, the Government will not make an award at a price premium it
considers disproportionate to the benefits associated with the evaluated
superiority of one technical proposal over another.

The Government shall assess whether the strengths and weaknesses between
or among competing proposals indicate superiority from the standpoint of
what the difference might mean in terms of anticipated performance.
Thus, to the extent that offeror's technical proposals are close or
similar in merit, the evaluated price is more likely to be a determining
factor.

## 

## M.8 CONTRACTING WITH SMALL BUSINESS CONCERNS AND DISADVANTAGED ENTERPRISES

USAID encourages the participation of small business concerns and
disadvantaged enterprises in this project, in accordance with FAR Part
19 (48 CFR Chapter 1), and AIDAR Part 726 (48 CFR Chapter 7).
Accordingly, every reasonable effort will be made to identify and make
use of such organizations. All evaluation criteria being found equal,
the participation of such organizations may become a determining factor
for selection.

##  

## 

**ATTACHMENT 1**

## USAID PRINCIPAL GEOGRAPHIC CODES

The USAID Geographic Code Book sets forth the official description of
all geographic codes used by USAID in authorizing or implementing
documents, to designate authorized source countries or areas. The
following are summaries of the principal codes:

\(a\) Code 000\--The United States: The United States of America, any
State(s) of the United States, the District of Columbia, and areas of
U.S.-associated sovereignty, including commonwealths, territories and
possessions.

\(b\) Code 899\--Any area or country, except the cooperating country
itself and the following foreign policy restricted countries: Libya,
Cuba, Laos, Iraq, Iran, North Korea and Syria.

\(c\) Code 935\--Any area or country including the cooperating country,
but excluding the foreign policy restricted countries.

\(d\) Code 941\--The United States and any independent country
(excluding foreign policy restricted countries), except the cooperating
country itself and the following: Albania, Andorra, Angola, Armenia,
Austria, Australia, Azerbaijan, Bahamas, Bahrain, Belgium, Bosnia and
Herzegovina, Bulgaria, Belarus, Canada, Croatia, Cyprus, Czech Republic,
Denmark, Estonia, Finland, France, Gabon, Georgia, Germany, Greece, Hong
Kong, Hungary, Iceland, Ireland, Italy, Japan, Kazakhstan, Kuwait,
Kyrgyzstan, Latvia, Liechtenstein, Lithuania, Luxembourg, Macedonia\*,
Malta, Moldova, Monaco, Mongolia, Montenegro\*, Netherlands, New
Zealand, Norway, Poland, Portugal, Qatar, Romania, Russia, San Marino,
Saudi Arabia, Serbia\*, Singapore, Slovak Republic, Slovenia, South
Africa, Spain, Sweden, Switzerland, Taiwan\*, Tajikistan, Turkmenistan,
Ukraine, United Arab Emirates, United Kingdom, Uzbekistan, and Vatican
City.

\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\--

\* Has the status of a \"Geopolitical Entity\", rather than an
independent country.

**ATTACHMENT 2**

## USAID FORM 1420-17 - CONTRACTOR BIOGRAPHICAL DATA SHEET

See <http://www.usaid.gov/forms/>.

Hard copy found on the next page.

### 

**ATTACHMENT 3**

**DISCLOSURE OF LOBBYING ACTIVITIES**

See <http://www.usaid.gov/forms/>.

Hard copy found on the next page.

## ATTACHMENT 4

## 

## SAMPLE SMALL BUSINESS SUBCONTRACTING PLAN

See <http://www.usaid.gov/forms/model_small_bus_plan.doc>.

SMALL BUSINESS, VETERAN-OWNED SMALL BUSINESS, HUBZONE SMALL BUSINESS
CONCERNS,

SMALL DISADVANTAGED BUSINESS,and WOMEN-OWNED SMALL BUSINESS

MODEL SUBCONTRACTING PLAN OUTLINE \*

[Identification Data]{.underline}

Contractor:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Address:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Solicitation or Contract
Number:\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Project Title:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Total Amount of Contract (Including Options)
\$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Period of Contract Performance (MO. &
YR.)\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\* *Federal Acquisition Regulation (FAR), paragraph 19.708(b) prescribes
the use of the clause at FAR 52.219-9 entitled \"Small Business, Small
Disadvantaged Business, and Women Owned Small Business Subcontracting
Plan.\" The following is a suggested model for use when formulating such
subcontracting plan. While this model plan has been designed to be
consistent with FAR 52.219-9, other formats of a subcontracting plan may
be acceptable. However, failure to include the essential information as
exemplified in this model may be cause for either a delay in acceptance
or the rejection of a bid or offer where the clause is applicable.
Further, the use of this model is not intended to waive other
requirements that may be applicable under FAR 52.219-9. \"SUBCONTRACT\"
as used in this clause, means any agreement (other than one involving an
employer-employee relationship) entered into by a Federal Government
prime contractor or subcontractor calling for supplies or services
required for performance of the contract or subcontract.*

1\. [Type of Plan]{.underline} (Check One)

\_\_\_\_ Individual plan (All elements developed specifically for this
contract and applicable for the full term of this contract).

\_\_\_\_ Master plan (Goals developed for this contract; all other
elements standard; must be renewed annually)

\_\_\_\_ Commercial products plan (Contractor sells large quantities of
off-the-shelf commodities to many Government agencies. Plans/goals
negotiated by a lead agency on a company-wide basis rather than for
individual contracts. Plan effective only during year approved.
Contractor must provide copy of lead agency approval).

\(d\) The offeror\'s subcontracting plan shall include the following:

\(1\) Goals, expressed in terms of percentages of total planned
subcontracting dollars, for the use of small business, veteran-owned
small business, HUBZone small business, small disadvantaged business,
and women-owned small business concerns as subcontractors.
Service-disabled veteran-owned small business concerns meet the
definition of veteran-owned small business concerns, and offerors may
include them within the subcontracting plan goal for veteran-owned small
business concerns. A separate goal for service-disabled veteran-owned
small business concerns is not required. The offeror shall include all
subcontracts that contribute to contract performance, and may include a
proportionate share of products and services that are normally allocated
as indirect costs.

\(2\) A statement of\--

> \(i\) Total dollars planned to be subcontracted for an individual
> contract plan; or the offeror\'s total projected sales, expressed in
> dollars, and the total value of projected subcontracts to support the
> sales for a commercial plan is: \$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ and
> \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_%
>
> \(ii\) Total dollars planned to be subcontracted to small business
> concerns is: \$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ and
> \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_%\*
>
> \(iii\) Total dollars planned to be subcontracted to veteran-owned
> small business concerns is:
>
> \$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ and \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_%\*
>
> \(iv\) Total dollars planned to be subcontracted to service-disabled
> veteran-owned small business concerns is:
> \$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ and \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_%\*
>
> \(v\) Total dollars planned to be subcontracted to HUBZone small
> business concerns is:
>
> \$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ and \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_%\*
>
> \(vi\) Total dollars planned to be subcontracted to small
> disadvantaged business concerns is:
>
> \$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ and \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_%\*
>
> \(vii\) Total dollars planned to be subcontracted to women-owned small
> business concerns is:
>
> \$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ and \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_%\*
>
> \*Expressed as a percentage of \"A\".

\(3\) A description of the principal types of supplies and services to
be subcontracted, and an identification of the types planned for
subcontracting to\--

> \(i\) Small business concerns;
>
> \(ii\) Veteran-owned small business concerns;
>
> \(iii\) HUBZone small business concerns;
>
> \(iv\) Small disadvantaged business concerns; and
>
> \(v\) Women-owned small business concerns.

(check all that apply)

[Subcontracted]{.underline}

[Supplies/Services]{.underline}\_\_\_\_\_\_\_[LB SB VOSB SDVOSB HUBZone
SDB WOSB]{.underline}

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

(Attach additional sheets if necessary.)

\(4\) A description of the method used to develop the subcontracting
goals in paragraph (d)(1) of this clause.

\(5\) A description of the method used to identify potential sources for
solicitation purposes (e.g., existing company source lists, the
Procurement Marketing and Access Network (PRO-Net) of the Small Business
Administration (SBA), veterans service organizations, the National
Minority Purchasing Council Vendor Information Service, the Research and
Information Division of the Minority Business Development Agency in the
Department of Commerce, or small, HUBZone, small disadvantaged, and
women-owned small business trade associations). A firm may rely on the
information contained in PRO-Net as an accurate representation of a
concern\'s size and ownership characteristics for the purposes of
maintaining a small, veteran-owned small, HUBZone small, small
disadvantaged, and women-owned small business source list. Use of
PRO-Net as its source list does not relieve a firm of its
responsibilities (e.g., outreach, assistance, counseling, or publicizing
subcontracting opportunities) in this clause.

\(6\) A statement as to whether or not the offeror included indirect
costs in establishing subcontracting goals, and a description of the
method used to determine the proportionate share of indirect costs to be
incurred with---

> \(i\) Small business concerns;
>
> \(ii\) Veteran-owned small business concerns;
>
> \(iii\) HUBZone small business concerns;
>
> \(iv\) Small disadvantaged business concerns; and
>
> \(v\) Women-owned small business concerns.

\(7\) The name of the individual employed by the offeror who will
administer the offeror\'s subcontracting program, and a description of
the duties of the individual.

8\) A description of the efforts the offeror will make to assure that
small business, veteran-owned small business, HUBZone small business,
small disadvantaged business, and women-owned small business concerns
have an equitable opportunity to compete for subcontracts.

\(9\) Assurances that the offeror will include the clause of this
contract entitled \"Utilization of Small Business Concerns\" in all
subcontracts that offer further subcontracting opportunities, and that
the offeror will require all subcontractors (except small business
concerns) that receive subcontracts in excess of \$500,000 (\$1,000,000
for construction of any public facility) to adopt a subcontracting plan
that complies with the requirements of this clause.

\(10\) Assurances that the offeror will\--

> \(i\) Cooperate in any studies or surveys as may be required;
>
> \(ii\) Submit periodic reports so that the Government can determine
> the extent of compliance by he offeror with the subcontracting plan;
>
> \(iii\) Submit Standard Form (SF) 294, Subcontracting Report for
> Individual Contracts, and/or SF 295, Summary Subcontract Report, in
> accordance with paragraph (j) of this clause. The reports shall
> provide information on subcontract awards to small business concerns,
> veteran-owned small business concerns, service-disabled veteran-owned
> small business concerns, small disadvantaged business concerns,
> women-owned small business concerns, and Historically Black Colleges
> and Universities and Minority Institutions. Reporting shall be in
> accordance with the instructions on the forms or as provided in agency
> regulations.
>
> \(iv\) Ensure that its subcontractors agree to submit SF 294 and SF
> 295.

  ----------------------- ----------------------- -----------------------
  REPORTING PERIOD        REPORT DUE              DUE DATE

  Oct 1 -- Mar 31         SF 294                  04/30

  Apr 1 -- Sept 30        SF 294                  10/30

  Oct 1 -- Sept 30        SF 295                  10/30
  ----------------------- ----------------------- -----------------------

ADDRESS:

DIRECTOR

USAID/OSDBU

RM 7.8E RRB

WASHINGTON, DC 20523-7800

\(11\) A description of the types of records that will be maintained
concerning procedures that have been adopted to comply with the
requirements and goals in the plan, including establishing source lists;
and a description of the offeror\'s efforts to locate small business,
veteran-owned small business, HUBZone small business, small
disadvantaged business, and women-owned small business concerns and
award subcontracts to them.

SUBCONTRACTING PLAN AUTHORIZATION:

NAME:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

TITLE:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

DATE:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

SIGNATURE:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

**ATTACHMENT 6**

**BACKGROUND READING ON GEM**

Please visit: <http://www.mindanao.org/> and
<http://philippines.usaid.gov/>

The GEM-1 Final Report entitled "Growth with Equity in Mindanao (GEM)
Program -- Main Report (Vol. I) and Annex (Vol. II), August 28, 1995 --
September 30, 2002", is downloadable from
<http://philippines.usaid.gov/>.

> Information on the current GEM-2 contract is available at
> <http://www.mindanao.org/>.
>
> General Information about USAID/Philippines development assistance is
> available at <http://philippines.usaid.gov/>.