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Issuance Date: April 27, 2006

Closing Date: June 13, 2006

Closing Time: 3:00 PM Manila Time

**Subject: Request for Applications (RFA) Number 492-06-009**

**Health Sector Development Program -- Local Government Unit (LGU)**

**Systems Strengthening Component**

The United States Agency for International Development (USAID) is
seeking applications from US non-governmental organizations (NGOs),
private voluntary organizations, public international organizations (PIO
or IO) and other qualified organizations to implement a program to
support the Health Sector Development Program - LGU Systems
Strengthening Component The authority for the RFA is found in the
Foreign Assistance Act of 1961, as amended.

The selected Recipient will be responsible for ensuring achievement of
the program objectives of the subject Program. Please refer to the
Program Description in Section C of the RFA for a complete statement of
goals and expected results.

Pursuant to 22 CFR 226.81, it is USAID policy not to award profit under
assistance instruments. However, all reasonable, allocable, and
allowable expenses, both direct and indirect, which are related to the
grant program and are in accordance with applicable cost standards (22
CFR 226, OMB Circular A-122 for non-profit organization, OMB Circular
A-21 for universities, and the Federal Acquisition Regulation (FAR) Part
31 for-profit organizations), may be paid under the award.

Subject to the availability of funds, USAID intends to provide
approximately \$25,000,000 in total USAID funding to be allocated over a
five (5) year period for this program. USAID reserves the right to fund
any or none of the applications submitted. USAID may award one or more
cooperative agreements under this RFA.

For the purposes of this program, this RFA is being issued and consists
of this cover letter and the following:

1\. Section A - Grant Application Format;

2\. Section B - Selection Criteria;

3\. Section C -- Program Description;

4\. Section D - Certifications, Assurances, and Other Statements of
Applicant/Grantee; and,

5\. Section E -- Attachments to Program Descriptions

For the purposes of this RFA, the term \"Grant\" is synonymous with
\"Cooperative Agreement\"; \"Grantee\" is synonymous with \"Recipient\";
and \"Grant Officer\" is synonymous with \"Agreement Officer\".

Any questions concerning this RFA should be submitted in writing to
Lourdes Valones, Acquisition Specialist, via email to
<lvalones@usaid.gov>, or via fax at (632) 551-9297. Questions should be
submitted not later than May 23, 2006 to provide sufficient time to
address the questions and be made part of the modification to the
solicitation. If you decide to submit an application, it should be
received by the closing date and time indicated at the top of this cover
letter at the place designated below for receipt of applications.
Applications and modifications thereof shall be submitted in envelopes
with the name and address of the applicant and RFA \# (referenced above)
inscribed thereon, to:

By Courier or Other Means of Delivery:

Lourdes Valones

Acquisition/Agreement Specialist

Office of Regional Procurement

USAID/Philippines

8F PNB Financial Center, Roxas Boulevard,

Pasay City, Philippines

The preferred method of distribution of USAID RFA's and
submission/receipt of applications is electronically via Grants.gov,
which provides a single source for Federal government-wide competitive
grant opportunities. This RFA and any future amendments can be
downloaded from that Web Site.  The address is
[[http://www.grants.gov]{.underline}](http://www.grants.gov/).  In order
to use this method, an applicant must first register on-line with
Grants.gov.  If you have difficulty registering or accessing the RFA,
please contact the Grants.gov Helpdesk at 1-800-518-472 or via e-mail at
[[support@grants.gov]{.underline}](mailto:support@grants.gov) for
technical assistance.  It is the responsibility of the recipient of the
application document to ensure that it has been received from Grants.gov
in its entirety and USAID bears no responsibility for data errors
resulting from transmission or conversion processes. The federal grant
process allows electronic submission of applications. If you decide to
submit an application, it should be received electronically via
Grants.gov or submitted directly to USAID by mail courier, by closing
date and time. If you do submit by courier or other means, hard copies
must be received at the place designated above for receipt of
applications. USAID bears no responsibility for data errors resulting
from transmission or conversion processes associated with electronic
submission. Faxed proposals are not acceptable. The applicant should
retain for their records one copy of all enclosures which accompany
their application.

To be eligible for award, the applicant must provide all required
information in its application, including the requirements found in any
attachments to this [www.Grants.gov](http://www.grants.gov/)
opportunity. If an application is submitted via Grants.gov, the
applicant must notify the contact person, Lourdes Valones, by email
(<lvalones@usaid.gov>) or written notification by the closing date and
time so that the electronic application can be retrieved by USAID.
Applicants must submit the full application package by one of the
methods indicated in Section A of this RFA.

Award will be made to that responsible applicant whose application
offers the greatest value and whose application best meets the
requirements of this RFA and the selection criteria contained herein

In the event of an inconsistency between the documents comprising this
RFA, it shall be resolved by the following descending order of
precedence:

\(a\) Section B - Selection Criteria;

\(b\) Section A- Grant Application Format;

\(c\) Section C -Program Description;

\(d\) This Cover Letter.

Issuance of this RFA does not constitute an award commitment on the part
of the Government, nor does it commit the Government to pay for costs
incurred in the preparation and submission of an application. In
addition, final award of any resultant agreement cannot be made until
funds have been fully appropriated, allocated, and committed through
internal USAID procedures. While it is anticipated that these procedures
will be successfully completed, potential applicants are hereby notified
of these requirements and conditions for award. Applications are
submitted at the risk of the applicant; should circumstances prevent
award of a cooperative agreement, all preparation and submission costs
are at the applicant\'s expense.

Sincerely,

Raymond L. Edler

Regional Agreement Officer

Office of Regional Procurement

USAID/Philippines

Table of Contents Page

SECTION A - GRANT APPLICATION
FORMAT...........................\...\...\...\...\...\...\...\...\...................
[5](#CL_URFASEAHD_PH000001)

PREPARATION
GUIDELINES.......................................................................................
[5](#CL_URFASEA_PH000002)

TECHNICAL
APPLICATION....................................................................................\...\...6

COST APPLICATION
FORMAT..................................................................................
9

COOPERATIVE AGREEMENT AWARD ...
.................................................................\...11

SECTION B - SELECTION CRITERIA
.............................................................................
13

SECTION C - PROGRAM
DESCRIPTION..........................................................................
15

SECTION
D..................................................................................................................
[31](#CL_URFASEDHD_PH000001)

PART I - CERTIFICATIONS AND
ASSURANCES............................................................
31

PART II - OTHER STATEMENTS OF
RECIPIENT............................................................ 37

CERTIFICATION REGARDING DEBARMENT, SUSPENSION, INELIGIBILITY AND\
VOLUNTARY EXCLUSION LOWER TIER COVERED
TRANSACTIONS....................... 41

KEY INDIVIDUAL CERTIFICATION NARCOTICS OFFENSES\
AND DRUG
TRAFFICKING.................................................................................
43

PARTICIPANT CERTIFICATION NARCOTICS OFFENSES AND DRUG
TRAFFICKING.........\... 44

CERTIFICATION REGARDING MATERIAL SUPPORT AND
RESOURCES........................... 45

PART III STANDARD PROVISIONS AND OTHER REQUIREMENTS
...................................48

#   {#section .unnumbered}

# SECTION A - GRANT APPLICATION FORMAT

[]{#CL_URFASEAHD_PH000001 .anchor}

## I. PREPARATION GUIDELINES

[]{#CL_URFASEA_PH000002 .anchor}

1\. All applications received by the deadline will be reviewed for
responsiveness to the specifications outlined in these guidelines and
the application format. Section B addresses the technical evaluation
procedures for the applications. Applications which are submitted late
or are incomplete run the risk of not being considered in the review
process. \"Late applications will not be considered for award\" or
\"Late applications will be considered for award if the Agreement
Officer determines it is in the Government\'s interest.\"

2\. Submit the entire package electronically via Grants.gov or
applications shall be submitted in two separate volumes: (I) technical
and (II) cost or business application. Technical portions of
applications should be submitted in an original and four (4) hard copies
and cost applications in an original and two (2) hard copies. The
application should be prepared according to the structural format set
forth below. Applications must be submitted no later than the date and
time indicated on the cover page of this RFA, to the location indicated
on the cover letter accompanying this RFA. Written applications or
modification thereof shall be submitted in sealed envelopes or packages,
addressed to the Office of Regional Procurement specified in the cover
letter of this RFA and clearly marked with the RFA number, name and
address of the applicant.

3\. Technical applications should be specific, complete and presented
concisely. The applications should demonstrate the applicant\'s
capabilities and expertise with respect to achieving the goals of this
program. The applications should take into account the technical
evaluation criteria found in Section B.

4\. Applicants should retain for their records one copy of the
application and all enclosures which accompany their application.
Erasures or other changes must be initialed by the person signing the
application. To facilitate the competitive review of the applications,
USAID will consider only applications conforming to the format
prescribed below.

5[. Unnecessarily Elaborate Applications]{.underline} - Unnecessarily
elaborate brochures or other presentations beyond those sufficient to
present a complete and effective application in response to this RFA are
not desired and may be construed as an indication of the applicant\'s
lack of cost consciousness. Elaborate art work, expensive paper and
bindings, and expensive visual and other presentation aids are neither
necessary nor wanted.

6\. [Acknowledgement of Amendments to the RFA]{.underline} - Applicants
shall acknowledge receipt of any amendment to this RFA by signing and
returning the amendment. The Government must receive the acknowledgement
by the time specified for receipt of applications.

7\. [Receipt of Applications]{.underline} - Applications must be
received at the place designated and by the date and time specified in
the cover letter of this RFA.

8\. [Submission of Applications]{.underline}:

a\) Submit the entire application packages electronically via Grants.gov
or applications and modifications thereof shall be submitted in sealed
envelopes or packages (1) addressed to the office specified in the Cover
Letter of this RFA, and (2) showing the time specified for receipt, the
RFA number, and the name and address of the applicant.

b\) Faxed applications will not be considered; however, applications may
be modified by written or faxed notice, if that notice is received by
the time specified for receipt of applications.

9\. [Preparation of Applications]{.underline}:

a\) Applicants are expected to review, understand, and comply with all
aspects of this RFA. Failure to do so will be at the applicant\'s risk.

b\) Each applicant shall furnish the information required by this RFA.
The applicant shall sign the application and print or type its name on
the Cover Page of the technical and cost applications. Erasures or other
changes must be initialed by the person signing the application.
Applications 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. Applications submitted through Grants.gov
constitute submission of electronically signed applications.

c\) Applicants who include data that they do not want disclosed to the
public for any purpose or used by the U.S. Government except for
evaluation purposes, should:

\(i\) Mark the title page with the following legend:

\"This application includes data that shall not be disclosed outside the
U.S. Government and shall not be duplicated, used, or disclosed - in
whole or in part - for any purpose other than to evaluate this
application. If, however, a grant is awarded to this applicant as a
result of - or in connection with - the submission of this data, the
U.S. Government shall have the right to duplicate, use, or disclose the
data to the extent provided in the resulting grant. This restriction
does not limit the U.S. 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 ; and

\(ii\) 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 application.\"

10\. [Explanation to Prospective Applicants]{.underline} - Any
prospective applicant desiring an explanation or interpretation of this
RFA must request it in writing to the Acquisition/Agreement Specialist
at the email addresses set forth in the RFA cover letter within three
weeks of receipt of the application to allow a reply to reach all
prospective applicants before the submission of their applications. The
questions and answers (Q&A) will be posted as an amendment to the RFA on
[www.grants.gov](http://www.grants.gov/) . The deadline for the receipt
of questions is May 23, 2006. Oral explanations or instructions given
before award of a Cooperative Agreement will not be binding. Any
information given to a prospective applicant concerning this RFA will be
furnished promptly to all other prospective applicants as an amendment
of this RFA, if that information is necessary in submitting applications
or if the lack of it would be prejudicial to any other prospective
applicants.

## II. TECHNICAL APPLICATION

1. Technical approach: The technical application must set forth in
sufficient detail the conceptual approach, methodology, and techniques
for the accomplishment of the stated objectives.  It should outline
specific, focused activities; explain how the approach is expected to
achieve the proposed objectives, and describe a plan that will enable
the activities to continue after the cooperative agreement is completed.

> Executive Summary ( Not to exceed 3 pages): Provide a clear summary of
> the results to be achieved, total program cost and total amount of
> USAID funding and non-Federal cost share proposed, milestone or
> benchmark measures of progress towards achievement and brief summary
> of applicant's experience in initiating and administering activities
> like those described on the program description.
>
> Implementation Plan: The application must provide an implementation
> plan for achieving expected program results. The implementation plan
> should clearly outline links between the proposed results, conceptual
> approach, performance milestones and a realistic timeline for
> achieving the semi-annual, annual, and end-of-program results. (The
> Recipient will be required to submit an initial annual work plan, 45
> days after the award date.)
>
> Innovative Approach: Particular attention will be paid to innovative
> approaches which take into consideration the issues surrounding health
> and governance systems at the local government units (LGUs) that lead
> to an improved health care services delivery. This section should
> analyze the health indicators both at the LGU and national level and
> the health governance and health systems issues, including
> decentralization of health services, that impact on health service
> delivery. This portion of the proposal should demonstrate the
> applicant's understanding of health governance, health systems and
> heath sector reform issues, and appreciation for the importance of the
> pluralistic technical assistance process that should be paramount in
> the agreement.
>
> USAID is committed to gender equality. The application should discuss
> the most significant gender issues involved reflecting on the
> following questions: (i) are men and women involved or affected
> differently by the context or work to be undertaken? (ii) If so, how
> will this difference be addressed in the proposed activities?

2. Institutional Capability: Applicants must provide evidence of their
technical and managerial resources and expertise (or their ability to
obtain such) in program management, grants management and training and
their experience in managing similar programs in the past. Information
in this section should include (but is not limited to) the following:

> \(1\) Brief description of organizational history/expertise;
>
> \(2\) Past experience and examples of accomplishments in developing
> and implementing similar programs;
>
> \(3\) Relevant experience with proposed approaches;
>
> \(4\) Institutional strength as represented by breadth and depth of
> experienced personnel in project relevant disciplines/areas;
>
> \(5\) Sub-awardee or subcontractor capabilities and expertise; and
>
> \(6\) Financial controls

3. Past Performance: Applicants must submit a list of the ten most
recent U.S. Government and/or privately-funded contracts, grants,
cooperative agreements, etc., and the name, address, email address and
telephone number of the Project Officer, activity manager or other
contact person.  Include the following for each award:

> Name of awarding organization or agency;
>
> Address of awarding organization or agency;
>
> Place of performance of services or program;
>
> Award number;
>
> Amount of award;
>
> Term of award (begin and end dates of services/program);
>
> Name, current telephone number, current fax number, and email address
> (if one is available) of a responsible technical representative of
> that organization or agency;
>
> Brief description of the program.

4\. Key Personnel and Professional Staff: Applicants must propose which
positions should be designated as Key Personnel (not to exceed 5
inclusive of the Chief-of-Party and Deputy Chief of Party -- Technical
Coordinator) and provide personnel qualifications for key and
professional staff who would be utilized on this program if an award is
made and provide references for the candidates proposed for such
positions.  Specify the qualifications and abilities of proposed key
personnel that are suited to successfully implementing the proposed
technical approach. The Chief of Party and the Deputy Chief of Party
should have a proven track record of managing such programs. The
applicant shall also include, in an annex, resumes for all key personnel
candidates and personnel of significant positions. Resumes may not
exceed three pages in length and shall be in chronological order
starting with most recent experience.  Each resume shall be accompanied
by a SIGNED letter of commitment from each candidate indicating his/her:
(a) availability to serve in the stated position, in terms of days after
award; (b) intention to serve for a stated term of the service; and (c)
agreement to the compensation levels which corresponds to the levels set
forth in the cost application. As references may be checked for all
proposed long-term personnel, a minimum of three references for each
proposed long-term person is required.  Applicants should provide
current phone, fax and email address for each reference contact.

5. Management Plan: The applicant shall describe its proposed management
plan for accomplishing the objectives, results and goals described in
the program description. Applications shall: (1) Specify the composition
and organizational structure of the entire project team and describe
each staff member's role, technical expertise and estimated amount of
time each will devote to the project.  Applicants may propose a mix of
advisors and specialists to cover the full range of objectives and
activities.

6\. Sustainability: The applicants must also submit a sustainability
plan as part of the technical proposal to demonstrate the prospects for
activities and results to continue after the completion of the
Agreement. Applicants must demonstrate how the activity will be
sustainable and empower partners to take over activities at any time
during the Agreement period and especially as the program draws to a
close.

7\. Monitoring Evaluation Plan: Provide a monitoring and evaluation plan
explaining how you will monitor the program and evaluate the activities.

8. Subgrantees/Subcontracts: Organizations may not possess all the
skills required to achieve all the results identified in this RFA.
Organizations may enter into partnerships with other non-profit and for
profit organizations as sub-grantees or sub-contractors to supplement
skills. However, one organization shall be designated to serve as the
prime organization and will be responsible for the achievement of
results and the implementation of the program.  If the applicant plans
to collaborate with other organizations, government agencies or
indigenous organizations for the implementation of the award, the
services to be provided by each agency or organization shall be
described.  Applicants which intend to utilize subgrantees and/or
subcontractors shall indicate the extent intended, the method of
identifying them and the tasks/functions they will be performing. 
Applicants shall state whether or not they have existing relationships
with these other organizations and the nature of the relationship (e.g.,
subgrantee, subcontractor, partnership etc).  The applicant must specify
the technical resources and expertise of proposed
subcontract/subrecipient organizations. Technical plan information for
proposed major subgrantees and/or subcontractors should follow the same
format as that submitted by the applicant.

9\. Other Pertinent Information: Provide any other information that the
applicant believes will add in understanding and evaluating the
Applicant's technical proposal.

10\. Page Limitation:  The length of the Technical proposal shall not
exceed fifty (50) typed pages,

with 1.5 lines of spacing, 11 point Arial font, and standard one inch
margins. The performance monitoring

plan/results framework, past performance information, and personnel
resumes are excluded from this page

limitation. All other parts of the technical proposal are included in
the 50 page limit.  There is no page limitation on the Cost Proposal.
Elaborate art work, expensive paper and bindings, and expensive visual
and other presentation aids are neither necessary nor wanted.

11. Applicants should study the selection/evaluation criteria outlined
in Section B of the RFA and organize the proposal accordingly.

## III. COST APPLICATION FORMAT

Applicant shall submit the Cost Application in a separate volume. There
is no page limit for the Cost Application. It shall include required
forms and whatever schedules and other information is necessary to
support and/or explain the proposed costs. Applicants estimating process
must be clear and concise. Also, financial data and information should
be fully supported and organized in a manner that facilitates review.

Provide the name, address, telephone and facsimile numbers, and email
address of the individual in the Applicant's organization to be
contacted, if necessary, during the evaluation of the application. Also
provide the name(s) of the person(s) who wrote your application, i.e.,
the technical application and cost application.

Certain documents are required to be submitted by an applicant in order
for an Agreement Officer to make a determination of responsibility.
However, it is USAID policy not to burden applicants with undue
reporting requirements if that information is readily available through
other sources.

The following sections describe the documentation that applicants for
Assistance award must submit to USAID prior to award.

1\. A copy of the Applicant's program description on a 3-1/2" diskette,
formatted in Microsoft Word.

2.  Include a budget with an accompanying budget narrative which
    provides in detail the total proposed costs for implementation of
    the program your organization is proposing. The budget shall be
    submitted using Standard Form 424 and 424A which can be downloaded
    from the USAID web site,
    [http://www.usaid.gov/procurement_bus_opp/procurement/forms/sf424](http://www.usaid.gov/procurement_bus_opp/procurement/forms/sf424/;)
    . The following forms must be completed and included in the cost
    proposal application submitted in response to this solicitation:

-   SF-424

-   SF 424A, Budget Information -- Non-Construction Programs

-   Certifications, Assurances, Statements and other Required Forms (Per
    Section D of the RFA)

-   Additionally, in support of the Applicant's information on the SF
    424A on separate sheets the Applicant shall provide detailed data to
    support each cost element (object class categories) as shown below.

-   Current Negotiated Indirect Cost Rate Agreement (NICRA) or Proposal
    for Indirect Cost Rate (if your organization does not have a NICRA)

a)  Personnel

    1.  Identify, by title and name, each position to be supported under
        the proposed award.

    2.  Provide resumes (not more than 3 pages) for each professional
        assigned to the field who will be compensated by USAID-funds
        under this project. For home office support staff identify who
        will be compensated by USAID and briefly specific duties.

    3.  State the amounts of time, such as months and percent of time
        that will be expended by each position, their base pay rate and
        total direct compensation under this program, e.g.
        Position/Person Time X Rate = \$ XXXXX

    4.  Provide rate verification documentation.

> b\) Fringe Benefits

(1) Indicate the rate(s) used and the base of application for each rate.

(2) Provide a copy of any Government approval of your indirect cost
    rates.

> c\) Travel

(1) Identify total foreign and domestic travel as separate items.

(2) Indicate the estimated number of trips, number of travelers,
    positions of travelers, number of days per trip, point of origin,
    destination and purpose of travel.

(3) For each trip, itemize the estimate of transportation and/or
    subsistence costs, including airfare and per diem.

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d)  Allowances

> Identify and itemize for each eligible or policy covered
> employee/position.

e)  Equipment, Material and Supplies

    1.  Itemize the equipment, materials and supplies and briefly
        justify the need for the items to be purchased as they apply to
        the program description.

    2.  Indicate the estimated unit cost and number of units for each
        item purchased.

    3.  Provide for the basis for the cost estimates, e.g. pro forma
        invoice, published price lists, etc.

f)  Contractual

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(1) For each proposed subagreement provide a statement or work or
    program description and cost proposal.

(2) Provide complete details of costs that may be incurred.

(3) Identify consultant work and cost for consultant. Provide the daily
    rate with basis for rate. Provide resumes.

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g)  Other Direct Costs

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(1) Identify other costs and briefly justify the need for each cost item
    proposed relative to the program description.

(2) Indicate the estimated unit cost and number of units for each item
    proposed,

(3) Provide the basis for the cost estimates. e.g., pro forma invoice,
    etc.

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h)  Indirect Costs

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(1) State the percentages and amounts used for the calculation of
    indirect costs.

(2) Provide a copy of your latest Negotiated Indirect Cost Agreement.

(3) If indirect costs have not been approved by a Federal Agency, state
    the basis for the proposed indirect cost rates, if any.

> \(4\) Applicants who do not currently have a Negotiated Indirect Cost
> Rate Agreement (NICRA) from their cognizant agency shall also submit
> the following information:
>
> a\. Copies of the applicant\'s financial reports for the previous
> 3-year period, which have been audited by a certified public
> accountant or other auditor satisfactory to USAID;

b\. Projected budget, cash flow and organizational chart;

c\. A copy of the organization\'s accounting manual.

i)  Non-Federal contribution

> 1\) Details regarding level of cost share of your organization is
> proposing for this activity. While there is no stated minimum required
> cost share amount, applicants are encouraged to give consideration to
> the amount they propose as a signal of the applicant's commitment to
> the activity (see also Section B below, Selection Criteria, under
> costs).
>
> 2\) Provide a breakdown of the financial (cash) and in-kind
> contributions (services, property, donated supplies and equipment,
> unrecovered indirect costs, etc) of all organizations (prime
> applicant, participant #1, participant #2, etc) that would be involved
> in implementing this Cooperative Agreement.

3\. Evidence of Responsibility - Applicants should submit any additional
evidence of responsibility deemed necessary for the Agreement Officer to
make a determination of responsibility. The information submitted should
substantiate that the Applicant:

> a\. Has adequate financial, management and personnel resources and
> systems or the ability to obtain such resources as required during the
> performance of the award.
>
> b\. Has the ability to comply with the award conditions, taking into
> account all existing and currently prospective commitments of the
> applicant, non-governmental and governmental.
>
> c\. Has a satisfactory record of performance. Past relevant
> unsatisfactory performance is ordinarily sufficient to justify a
> finding of non-responsibility, unless there is clear evidence of
> subsequent satisfactory performance.

d\. Has a satisfactory record of integrity and business ethics; and

e\. Is otherwise qualified and eligible to receive a grant under
applicable laws and regulations (e.g., EEO).

> f\. Applicants that have never received a grant, cooperative agreement
> or contract from the U.S. Government are required to submit a copy of
> their accounting manual. If a copy has already been submitted to the
> U.S. Government, the applicant should advise which Federal Office has
> a copy.

4\. Certificate of Compliance: Please submit a copy of your Certificate
of Compliance if your organization's systems have been certified by the
USAID/Washington's Office of Acquisition and Assistance (M/OAA).

**IV. COOPERATIVE AGREEMENT AWARD**

1\. The Government may award one cooperative agreement resulting from
this RFA to the responsible applicant whose application conforming to
this RFA offers the greatest value in terms of the selection criteria
(see Section B of this RFA). The Government may (a) reject any or all
applications, (b) accept other than the lowest cost application, (c)
accept more than one application (see Section B, Selection Criteria),
(d) accept alternate applications, and (e) waive informalities and minor
irregularities in applications received.

2\. The Government may award one or more cooperative agreement(s) on the
basis of initial applications received, without discussions. Therefore,
each initial application should contain the applicant\'s best terms from
a cost and technical standpoint. As part of its evaluation process,
however, USAID may elect to discuss technical, cost or other pre-award
issues with one or more applicants. Alternatively, USAID may proceed
with award selection based on its evaluation of initial applications
received and/or commence negotiations solely with one applicant.

3\. Neither financial data submitted with an application nor
representations concerning facilities or financing, will form a part of
the resulting cooperative agreement unless explicitly stated otherwise
in the agreement.

4\. A written award mailed or otherwise furnished to the successful
applicant(s) within the time for acceptance specified either in the
application(s) or in this RFA (whichever is later) shall result in a
binding cooperative agreement without further action by either party.
Before the application\'s specified expiration time, if any, the
Government may accept an application, whether or not there are
negotiations after its receipt, unless a written notice of withdrawal is
received before award. Negotiations or discussions conducted after
receipt of an application do not constitute a rejection or counteroffer
by the Government.

5\. Authority to Obligate the Government - The Agreement Officer is the
only individual who may legally commit the Government to the expenditure
of public funds. No costs chargeable to the proposed Agreement may be
incurred before receipt of either a fully executed Agreement or a
specific, written authorization from the Agreement Officer.

6\. Applicant's Past Performance -- USAID reserves the right to solicit
from available sources relevant information considering an applicant's
past performance and may consider such information in its evaluation.

7\. Applicants are reminded that U.S. Executive Orders and U.S. law
prohibits transactions with, and the provision of resources and support
to, individuals and organizations associated with terrorism. It is the
legal responsibility of the Recipient to ensure compliance with these
Executive Orders and laws. This provision must be included in all
subawards issued under this agreement.

8\. Foreign Government Delegations to International Conferences -- Funds
in this \[contract, agreement, amendment\] may not be used to finance
the travel, per diem, hotel expenses, meals, conference fees or other
conference costs for any member of a foreign government's delegation to
an international conference sponsored by a Public International
Organization, except as provided in ADS Mandatory Reference "Guidance on
Funding Foreign Government Delegations to International Conference
\[http://www.info.usaid.gov/pubs/ads/300/refindx3.html\] or as approved
by the CO/AO/CTO.

# SECTION B - SELECTION CRITERIA

The criteria presented below have been tailored to the requirements of
this particular RFA. Applicants should note that these criteria serve
to: (a) identify the significant matters which must be addressed in the
applications and (b) set the standard against which all applications
will be evaluated. To facilitate the review of applications, applicants
should organize the narrative sections of their application in the same
order as the selection criteria.

The technical applications will be evaluated in accordance with the
Technical Evaluation Criteria set forth below. Thereafter, the cost
application of all applicants submitting a technically acceptable
application will be opened and costs will be evaluated for general
reasonableness, allowability, and allocability. To the extent necessary
(if award is made based on initial applications), negotiations will then
be conducted with all applicants whose application, after discussion and
negotiation, has a reasonable chance of being selected for award. Award
will be made to the responsible applicant whose application offers the
greatest value, cost and other factors considered.

The technical application will be the most important item of
consideration in selection of these assistance awards. It should be
specific, complete, and presented concisely. Applicants should review
all information in the RFA in depth prior to preparing applications,
especially program guidelines, eligibility, and evaluation criteria.

The technical application should be directly responsive to the terms,
conditions, guidelines, provisions of the RFA to be assured of
consideration. Applications not conforming to this RFA may be
categorized as not meeting the minimum requirements of the Government,
thereby eliminating them for further consideration.

The technical application must set forth in detail the conceptual
approach, methodology, and techniques for accomplishment of the stated
program objectives. The application must define results and benchmarks
for monitoring progress in achieving the results.

Technical proposals will be evaluated in accordance with the technical
evaluation criteria set forth below. While technical concerns are
paramount, cost and USAID budget limitations will be considered as a
factor for award.

Applicants are reminded that the Government is not obligated to make an
award on the basis of lowest proposed cost or to the applicant with the
highest technical evaluation score. After the final evaluation of
applications, the Agreement Officer will make the award(s) to the
applicant(s) whose application(s) is/are judged to be the most
advantageous in accomplishing the objectives of the program.

Awards will be made based on the ranking of proposals according to the
technical selection criteria identified below.

**A. Technical Evaluation Criteria:**

**Technical Approach -- (50 points)**

-   The extent to which the Applicant understands the purpose of the
    program as well as the key issues and challenges that must be
    addressed to accomplish program objectives.

-   Extent to which the application demonstrates a clear, concise,
    effective and compelling technical approach to accomplish program
    purposes, objectives and expected results as evidenced by the
    applicant's program and milestone plans.

-   The appropriateness of the technical approach and interventions to
    achieve the objectives and goals of the program, including gender
    issues in a meaningful way, and sustainability.

**Key Personnel and Management Plan - (25 points)**

-   The demonstrated capability, experience, education and other
    qualifications of the applicant's proposed staff for the designated
    work.

-   Organizational structure and management plan demonstrating how the
    applicant would be organized, managed and its activities
    coordinated, including lines of communication and authority.

**Past Performance (25 points)**

> Past performance will be evaluated based on the applicant's record in
> implementing related activities and prior success in this type of
> project:  ability to carry out participatory development activities
> and maintaining positive and effective relationships with partners,
> timeliness on meeting milestones and ability to implement activities
> within budget and use of cost efficient measures. The applicant must
> submit listings of all USAID or other grants/contracts performing work
> similar to that described for this activity. Reference information
> must include current email, fax and phone numbers and addresses of
> contact person, award numbers, if available, and brief descriptions of
> work performed. USAID will contact references named in the past
> performance information to determine the applicant's responsibility.

**TOTAL TECHNICAL EVALUATION CRITERIA = 100 POINTS**

**B. COST EVALUATION**:

Cost has not been assigned a score but will be evaluated for cost
reasonableness, allocability, allowability, cost effectiveness and
realism, adequacy of budget detail and financial feasibility and cost
sharing. While cost may be a determining factor in the final decision of
an awardee(s), especially between closely ranked applicants, the
technical merit of applications is substantially more important under
this RFA.

Notes on cost sharing:

> a\. Cost share is defined by USAID as "contributions, both cash and
> in-kind, which are necessary and reasonable to achieve program
> objectives and which are verifiable from the recipient's records."  
> Please take note of the provision on cost sharing in 22 CFR 226.23.
>
> b\. Although there is no requirement that applicants propose a
> specific cost share, USAID policy is that cost sharing is an important
> element of the USAID-recipient relationship. USAID requires applicants
> to demonstrate their commitment to program success by addressing the
> issue of cost-sharing. The amount of cost sharing, i.e. cash and/or
> in-kind contributions will be evaluated in accordance with 22 CFR
> 226.23.

Applications will be evaluated in accordance with the selection criteria
identified above.  USAID reserves the right to determine the resulting
level of funding for any awards made under this RFA.

#  

# SECTION C - PROGRAM DESCRIPTION

**I. INTRODUCTION**

The United States Agency for International Development (USAID) seeks
applications from U.S. nongovernmental organizations (NGOs), private
voluntary organizations, public international organizations (PIO or IO),
and other qualified organizations to implement the LGU Systems
Strengthening Component of the Health Sector Development Project (HSDP).
HSDP has two components: (1) LGU Systems Strengthening and (2)
Strengthening Health Sector Policy Formulation Systems. The LGU systems
strengthening component covers LGU management systems, LGU financing for
health, service provider performance and advocacy for service delivery
and financing. The policy component is aimed at assisting the Department
of Health (DOH) and related agencies to strengthen and institutionalize
a health policy formulation process that will improve health sector
performance, including promoting policy change at the national level in
support of LGUs health objectives. The LGU component hews to IR1 of the
USAID/Philippines Strategic Objective (SO)3 Results Framework (Annex 1)
while the policy component hews to IR4.

**II. PURPOSE AND PROGRAM OVERVIEW**

The purpose of the program is to strengthen LGU commitment to and
support for public health services and LGU capacity to provide and
manage quality health services sustainably -- especially family planning
(FP, maternal and child health (MCH), tuberculosis (TB), HIV-AIDS, and
other emerging and re-emerging infectious diseases such as avian
influenza (AI), malaria, dengue, and severe acute respiratory syndrome
(SARS). Under this component, USAID seeks to ensure that sufficient
high-quality health services can eventually be sustainably provided,
managed and financed by local government units. This includes building
the capacity of non-government organizations (NGOs) and civil society to
advocate successfully for good health services. It also includes
empowering LGU staff and building their capacity to:

• Gain commitment from public officials for improved health services.

• Justify and obtain adequate financing for improved health services.

• Analyze the health needs of the local population and the resources
available to meet those needs, including staffing resources.

• Design, adapt and use LGU systems to meet existing needs, including
improvements in service provider performance.

• Improve continuously or create LGU systems to meet emerging needs.

Sustainability should be a paramount concern of the Recipient in all
activities to be implemented. The Recipient should work with LGU staff
in a participatory manner to determine jointly with LGU clients' needs
and to respond to them. Emphasis should be given to building both the
confidence and the capacity of LGU staff to carry out their inherent
functions. The Recipient should work with LGU staff to strengthen their
ability to improve their own systems rather than just improving the
systems themselves or simply delivering Recipient-designed systems.

A detailed description of the HSDP is contained as Annex 2.

**III. BACKGROUND AND PROGRAM CHALLENGES**

Improvements in the country's health situation continue to be
precarious. While no major epidemics have occurred in the last five
years, the main threats to Filipinos' health remain to be high levels of
population growth, tuberculosis, declining nutritional status of women
and children, potential rapid increase in HIV-AIDS as high-risk
behaviors such as injecting drug use are now being acknowledged,
re-emerging diseases such as malaria, and the threat of emerging
diseases such as SARS and AI.

Improved control of infectious diseases is increasingly important for
the Philippines in light of new, emerging threats to public health,
including those of Avian influenza, severe acute respiratory syndrome
(SARS), TB and malaria. Despite the availability of an effective
treatment regimen, the Philippines has the eighth highest prevalence
rate of TB in the world. SARS continues to be a threat to the health of
populations while malaria continues to plague those in rural areas, in
part because of the increasing resistance to anti-malarial drugs.

The Philippines has maintained its avian flu-free status to date.
However, there is growing concern about it moving to be a high risk
country considering the degree of epidemic in the region. The country is
directly situated in the migratory bird flyways and therefore, is
vulnerable to avian influenza being transmitted from affected countries
and regions where the virus has been located. With the novelty of the
infection, inadequate knowledge about the infection and its causative
agent, the high fatality and the absence of effective vaccine for avian
flu, there is urgent need to review surveillance activities and advice
on areas requiring USAID support to enable effective systems
particularly in the AI sentinel sites.

USAID has been funding HIV/AIDS assistance since the late 1980s. The
AIDS Surveillance and Education Project (ASEP) established the country's
HIV sentinel surveillance system in 1993. In 1997 behavioral
surveillance was added at 10 sites. ASEP also implemented prevention
education program with local non-governmental organizations (NGOs).
Although currently available evidence on the HIV/AIDS epidemic in the
Philippines indicate continued low prevalence, significant risks exist
for rapid increase in the most-at-risk populations and further expansion
into the general population.

For these infectious diseases where the threat of developing into
epidemic proportions rapidly is big, the challenge lies in working
through a decentralized system and where local authorities play a
crucial role in the containment of any infectious disease in case it
develops into a national crisis. It is important that systems and
procedures are available to knit local action and national
policy/technical guidance into responsive machinery.

Current activities such as the LEAD for Health and EnRICH Projects seem
to have gained headway in the past three years. LEAD for Health has
enrolled more than 500 LGUs that are now receiving technical assistance.
It has contributed to the initial clarification and enunciation of the
Philippines' contraceptive self-reliance policy in partnership with the
Department of Health (DOH), Philippine Health Insurance Corporation
(PhilHealth) and Commission on Population (POPCOM). LEAD for Health, in
partnership with the League of Municipalities (LMP), supported the
implementation of responsible parenthood and reproductive health
activities. A number of LGUs are now promoting the program and
allocating funds to purchase contraceptive supplies and strengthen
service delivery.

The ongoing EnRICH Project in the ARMM has resulted in organized
communities being more responsible and involved in improving their
health status. Various training on family planning, TB and maternal and
child health have been conducted to improve the skills of local health
providers. Two provincial "fatwas," religious edicts supporting family
planning and reproductive health, have been declared by Muslim religious
leaders and are currently being disseminated to the Muslim population. A
Floating Clinic has been rehabilitated in Tawi-Tawi and is now serving
the far-flung underserved communities in the island barangays. However,
there are still remaining challenges and opportunities that can best be
addressed by a more focused effort on health system development.
However, there still are remaining challenges and opportunities that can
best be addressed by a more focused effort on health system development.

Decentralization has fragmented the national health picture into a
mosaic with over 1,500 pieces and continues to present enormous
management challenges. Fifteen years after decentralization, the
management capabilities of LGU staff and health providers are still
lacking in many areas -- with weaknesses in health information,
procurement and logistics management, financial management and
reporting. Governance is not strong and many barriers impede good human
resource management. LGUs frequently lack financial resources to fund
health services adequately. Supervision of local health providers is not
systematized and the district health system that had a network of
barangay health stations reporting to rural health units which in turn
were supervised by a technical team of a designated district hospital
has dissolved -- although attempts are currently being made to revive
the system.

Emigration of health professionals is now a real challenge but is seldom
articulated by LGUs, despite its increasingly evident impact on service
quality and performance requirements for accreditation for social
insurance. The annual attrition among medical doctors and nurses in the
public sector is running at 20% in some LGUs and there are estimates
that the number of physicians and nurses working in the country will be
halved within the next five years. The problem is particularly acute in
rural areas: the distribution of health professionals in the country
could now be a deterrent to access to appropriate health care by the
poor, since only 10% of doctors and dentists, and 35% of nurses, now
practice in rural areas. Current investments in technology transfer and
human resource development by foreign-assisted projects could be easily
offset by these trends in human resource movement and distribution.

There is evidence that LGU health services are not being adequately
utilized by the poor. The Filipino Report Card on Pro-poor Services
(2002) indicated that only 70% of the poor used health facilities, while
75% of the middle-income and 82% of the rich did so, despite a corollary
survey showing that 32% of poor adults were sick compared to only 19% of
rich adults. The Report Card also showed that the poorest 30% turned to
traditional healers 40% of the time while middle-income households are
twice more likely to use government hospitals than the poor. In response
to these trends, LGUs have generally been slow to segment their markets
and try to focus their resources more on those who really need
subsidized public care. This issue is now being forced on the LGUs by
the withdrawal of donated contraceptive commodities and there are
indications that many are beginning to react positively by planning to
buy contraceptives directly and creating the necessary budget line item
to facilitate this. But this developing trend is not yet visible outside
FP.

The DOH's Health Sector Reform Agenda (HSRA) -- and its recent
conceptualization into the Fourmula One program -- represents a
significant opportunity for any new assistance project to tackle these
remaining challenges. As the lead agency for health, the DOH has crafted
the reform agenda, reorganized its central office according to expected
functional and administrative changes and has begun studies on the
applicability and acceptability of the major strategies recommended for
health sector reform to take place. This program focuses on LGUs and
improving their health delivery capabilities. Furthermore, many donors
and their associated assistance programs are beginning to coalesce
around the HSRA and a virtual sector-wide approach is emerging. This
will give much-needed critical mass to the effort aimed at strengthening
LGUs' health performance, although the initial effort focuses on just 16
of the country's 79 provinces.

A second current opportunity is represented by the increasing formation
of Inter-Local Health Zones (ILHZ). Many LGUs, often those in provinces
with a governor strongly committed to the health sector, have agreed to
group themselves into ILHZs which allow for the movement of resources,
including financial, among member LGUs. Experience with this kind of
collaboration has thus far proven effective in addressing gaps in
service delivery, problems in training and difficulties in supervision
by a higher technical authority. Standardization of approaches, sharing
of best practices and pooling of procurement to give greater purchasing
leverage are future opportunities offered by ILHZs, which are a
potentially effective counter to the fragmentation that decentralization
produces.

Many management systems remain weak and poorly understood. Local health
officials have limited exposure to LGUs' formal management systems as
well as the informal relationships that form part of the local
governance structure. For example, few health officials truly understand
the process used by development councils to prioritize projects for 20%
development fund financing. Just as few have a mastery of the formal and
informal bargaining processes needed to secure an appropriate share of
the local budget for health. Not many are in a position to present
convincing and concise information on health and population problems to
the local chief executive, Sanggunian members or even their peers. After
almost 15 years of decentralization, there is still a need to integrate
local health staff fully into LGU operations.

Health information is often sparse, which makes both planning and
performance evaluation difficult; staff are not well versed in analyzing
data that does exist and using it for evidence-based decision-making.
Many local health boards, through which citizens' feedback on health
service delivery could be articulated, are dormant. Simple participatory
planning and processes are often absent, allowing local finance
committees to operate unilaterally. Financial management and reporting
systems are proving too inflexible to cope with health service financing
through insurance coverage; procurement and payment processes are
cumbersome, requiring multiple and repeated authorizations before
transactions can proceed.

A persistent problem has been the overlap of clientele of
cities/municipalities and provinces. Cities (including the highly
urbanized and independent component cities), especially those with
inadequate or no hospitals of their own, rely entirely or in part on
provincial hospitals, causing provincial governments in effect to
subsidize the city's health operations. These gaps and imperfections in
LGU management systems distort local priorities (often to the
disadvantage of the health and population sectors), hinder the
allocation of appropriate health budgets, fail to reduce the cost of
health commodities, impede the effective delivery of health services and
muffle local citizens' feedback on health problems.

Some new systems need to be established. These include systems to guide
the operation of ILHZs, which are to figure prominently in the
implementation of the DOH's Fourmula One program as well as processes to
systematize the identification of indigents to qualify for insurance
coverage.

Many LGUs continue to under-fund the health sector. Many of the LGUs
which are committed to expanding their health and population programs
complain that they need more funding from the national government --
which is generally unavailable. Most therefore over-rely on their two
main sources of revenue -- IRAs and local property taxes -- which
typically account for 85-90% of local income. The first of these is
largely beyond LGUs' control and the latter suffers from poor revenue
collection processes. There is a growing need to promote the adoption of
cost recovery schemes and the passage of local ordinances authorizing
the imposition of fees on non-indigent clients, and to diversify revenue
sources further by exploring less obvious sources. Few LGUs are aware of
these alternative sources and even fewer are trying to exploit them. For
instance, many are unaware of credit packages offered through bilateral
agreements with donor countries. For example, loan funds provided by the
German government through KfW are under-utilized. Very few of the LGUs
seems to be aware of the existence of such funds and their purpose, nor
are all LGUs yet aware of the opportunities posed by the indigent
insurance coverage program as a means of cost recovery.

Local policies and practices on serving the poor need strengthening.
Local health officials as well as local chief executives agree that a
non-targeted approach to health service delivery contributes
significantly to the strain on local resources available for health.
Many health officers in health facilities however still find it
difficult to turn away local citizens whom they know are capable of
paying for services rendered or commodities handed out. Although some
have begun the process of referring such clients either to private
clinics or public cash counters, the average health facility health
staff is unlikely to differentiate voluntarily between a financially
capable client and an indigent: there is a need for clearer policy and
guidelines to give service providers more confidence in making such
difficult decisions. The introduction of PHIC's indigent insurance
coverage program is providing an opportunity to segment clients so that
a more targeted approach to health service delivery can be used. LGUs
need assistance to make this happen more widely.

Turnover of local health workers remains high. In one year alone, the
provincial health office of Bulacan lost a dozen midwives to overseas
contractors. Many provincial doctors across the country are taking up
nursing courses in the hope of landing better-paying jobs abroad. Most
LGUs are resigned to the possibility of more turnover and staff losses
but few are taking steps to mitigate the situation. While it may be
impossible for LGUs to match the incomes promised by overseas
employment, there are avenues to improve the package of economic
incentives available for health workers -- not only through the full
implementation of the Magna Carta Law but also through more flexible
financial management and personnel policies. For example, many LGUs have
adopted local ordinances allowing part of the income generated from
claims against insurance to be allocated for health workers. On the
matter of flexible personnel policies such as allowing local doctors to
practice their profession in their private capacity, national government
needs to be consulted. Other measures to reduce local health worker
turnover include opportunities for academic scholarships, or further
training abroad or in universities in Manila.

Few local chief executives are yet strongly committed to the health
sector. Recent government policy has clearly transferred political
responsibility for population programs to LGUs. The LGU response has not
been consistent -- both because this remains a charged political issue
in the Philippines and because population size carries a 50% weight in
the formula for determining IRAs. Outside the population field, many
local chief executives lack the requisite information and advice on such
local health problems as micronutrient deficiency and its impact on
maternal and child health, the extent and causes of maternal and
infant/child mortality, the persistence of TB and the potential dangers
posed by laxity in the control of HIV/AIDS. In the case of TB, several
local chiefs of hospitals have been alarmed by the increase in incidence
of multi-drug resistance. In addition to the inability of local health
offices to communicate well with their leaders on these issues, most
LGUs have not installed information and performance monitoring systems
that should alert LGU officials on the state of health of their
constituents.

**IV. PROGRAM ACTIVITIES**

To address the concerns raised above, the program activities include the
following priorities:

**A. Strengthening key LGU management systems to sustain delivery of
selected health services**

Under a decentralized structure of government, the effectiveness of
health service delivery depends strongly on efficient and effective
local government management systems. These systems include information
generation and analysis, long- and short-term planning, financial
management including budgeting, behavior change communications,
procurement and logistics management, quality assurance and supervision,
management of human resources, performance evaluation and monitoring.
LGUs and other local partners need to be assisted in assessing existing
systems such as these and to strengthen them where necessary.

The expected outcomes from implementation of this activity include, but
are not limited to, at the LGU level:

• More evidence-based decision-making as health information flow and
analysis are improved.

• Better linkage between long-term strategic thinking and annual work
planning as a result of more regular and systematic planning.

• Local health officers and staff are more confident in presenting their
population and health plans and budgets before their local chief
executives and Sanggunian.

• Better coordination between, and management of, donor programs as
donors appreciate more clearly local priorities and needs through
stronger planning.

• Local chief executives, Sanggunian members and other concerned
officers of the LGU are better apprised on health issues, programs and
projects. More and faster informed decisions are made.

• More assured flow of essential drugs and commodities to health
facilities based on better stock management, forward ordering and
procurement processes supported by more complete data on logistics
management.

• More robust governance structures with the roles and relationships
between the various levels -- e.g. mayor, Sanggunian, local health
board, municipal health officer -- clearer and better utilized by each
party.

In seeking these outcomes, the Recipient should address three main
challenges at the LGU level:

• Many local (and even regional) health officials are still unfamiliar
with the operation of local government management systems: as a result,
they often miss the opportunity to make the systems work effectively for
the benefit of the health sector. The Recipient should work with LGUs to
provide formal and informal venues for local health officers and staff
to improve their mastery of the management systems, through
skill-building, process familiarization and development of leadership
skills based on this new knowledge and confidence.

• Many local government management systems are either flawed or
inadequate. For example, a recent European Union-funded study observed
that, from the issuance of a purchase request to payment for the
purchase, a Governor's approval is required three times and the
documentation requirements are extremely cumbersome. The Recipient
should develop approaches to enable health personnel staff to define and
remedy systems flaws that adversely affect health service delivery.

• Coordination between the various levels of LGUs, the DOH and external
donors remains weak. While coordination at the national level is now
well-established, systems to coordinate the effort at the regional and
provincial levels need to be installed. The Recipient should work with
LGUs, the Centers for Health Development (CHDs), Commission on
Population, regional and provincial offices of PHIC, and USAID and other
donor projects to develop appropriate coordination mechanisms.

Illustrative activities are:

• Sharpening the skills of local health officers and staff in analyzing
information and data and design ways of making the processed information
easily understandable to decision-makers.

• Supporting development of such governance structures as ILHZs to
reduce the fragmentation of systems that have resulted from
decentralization.

• Training RHU and hospital staff and officers, particularly those in
the accredited facilities, in financial and records management to
enhance cost recovery efforts ( e.g. improve TB managers' skills in
strategic technical and financial planning)

• Apprising local health officials and staff thoroughly on the budget
formulation process and in using such knowledge to facilitate
appropriation of resources to the health and population sectors.

• Assess the effectiveness and sustainability of the community-based
monitoring and information system (CBMIS) and develop/install/strengthen
less expensive alternatives.

• Design and install processes to be used for ILHZ operations.

• Strengthen LGU capacity in drug management, especially in inventory
management and "good storage practices" and financing.

Indicators should be developed by the Recipient to measure performance
under this component. Illustrative list of indicators are:

• Number of LGUs with health sector investment plans.

• Number of LGUs with established health information systems.

• Number of health-related ordinances, resolutions and executive orders
issued.

• Number of LGUs with a functionality, effective procurement and
distribution system for essential drugs and commodities.

• Number of LGUs with functioning ILHZs.

• Number of LGUs that are Sentrong Sigla certified.

**B. Improving and expanding LGU financing for key health services**

Financing of LGU health services is an important system that needs to be
addressed. The key objective for an LGU is to diversify funding sources
in order to increase the amount of financing available for health. The
main outcomes sought under this component include:

• Number of LGUs spending at least \_\_\_\_% (To be determined) of total
public expenditure for health.

• LGU awareness of alternative sources of funding is increased.

• The mechanisms for accessing funding from new sources are better
understood by LGUs.

• Barriers at the LGU level to diversifying funding sources are
identified and removed.

• More and different sources of funding for health activities being
tapped by LGUs.

• More funding overall is available and utilized for the health sector.

• Improved utilization of scarce financial resources through better
financial management and budgeting processes which, for instance, allow
LGU managers to know their expenditure position against budget in a
reliable, timely and accurate manner.

• A financially sustainable HIV/AIDS surveillance system that includes
appropriate Most-at-Risk Population (MARP) representation will be
functioning in the six high risk zones (The Clark Development Zone,
Metro Manila, Metro Cebu, Iloilo-Bacolod areas, Davao-General Santos
corridor and Zamboanga City).

• Improve LGU financing TB drugs for Category III patients.

Most LGUs rely on IRAs for around 65% of their annual funding and real
property taxes for maybe another 25-30%; most have problems with
property tax collection, with the actual collection rate (around 60%)
well below the revenue theoretically available. The education sector has
an entitlement to a fixed share of property tax collected, a privilege
not shared by health. In the case of the health sector, the balance is
made up from 'non-traditional' sources -- largely PHIC reimbursements at
present, although these are slow to start flowing once a facility is
accredited to receive them. There are alternative revenue sources,
including Municipal Development Fund and donor loans, donations from
Overseas Filipino Workers or groups of expatriate Filipinos and possibly
national lottery proceeds. User fees can be contemplated for those who
can afford to pay if the LGU is able to segment its market accurately.
Existing revenues can be stretched further by good cost accounting and
cost controls and negotiation on behalf of the preventive health sector
can divert existing funds from other uses -- either other sectors or
non-preventive care within the health sector. Some LGUs are already
experimenting with revolving funds -- started by PHIC reimbursements or
donations and backed up by user fees -- as a means of stretching an
annual budget into later years.

Illustrative activities are:

• Assisting LGUs to develop medium-term financial plans over maybe three
years to identify expenditure needs and therefore revenue requirements
for health.

• Introducing LGUs to different funding alternatives and opportunities,
based on available sources and best practice observed in other LGUs.

• Helping LGUs to develop a financing strategy which will accommodate
the medium-term revenue requirements.

• Assisting health managers to know how best to work with LGU finance
managers in tapping alternative funding sources.

• Developing models of how revolving funds can work on different
start-up bases within an LGU and sharing these models with both health
and finance staff.

• Encouraging LGUs to undertake market segmentation and demonstrating
how it can be done cost-effectively.

• Assisting LGUs to review the efficiency of their financial management
so that health managers are better able to control their existing
budgets through reliable, timely and accurate reporting.

• Assisting LGUs to explore the benefits and techniques of
performance-based budgeting as a means of making better use of scarce
financial resources.

• Assisting LGUs to develop budget and secure financing to insure that
the HIV/AIDS sentinel surveillance activities can be conducted in a
timely and methodologically sound manner

Illustrative indicators are:

• Number of LGUs spending \_\_\_% (To be Determined) of total public
budget for the health sector.

• Percentage of the health budget financed through IRAs and property
taxes.

• Percentage of LGU health facilities accredited and receiving PHIC
reimbursements.

• Number of LGUs tapping loans or donations for health activities.

• Percentage of LGUs who have completed market segmentation as a basis
for introducing user fees.

• Percentage of LGUs employing user fees for non-FP services.

• Number of LGUs using revolving funds for some aspect of their health
activities.

**C. Improving service provider performance**

Service provider performance is a crucial part of ensuring high quality
health care provided by LGUs. Since the change of health management
responsibility under decentralization, service providers in district
hospitals, RHUs and barangay health stations have become somewhat
detached from the supervisory systems and quality assurance procedures
that used to prevail under the old, centralized and vertically
integrated approach. Furthermore, LGU budget pressures and competing
budget priorities mean that government health workers still have a
fixed, low and relatively flat wage profile and there are even fewer
opportunities for career advancement than before. The number of
physicians and nurses in many LGUs has steadily decreased since the
mid-90s, with nurses leading the exodus of local health workers to jobs
overseas.

The expected outcomes of the service providers are:

• Improved staffing levels in LGU health facilities, at or approaching
WHO standards.

• Better local working conditions and payments for doctors, nurses and
midwives, including an incentive component to enhance performance.

• More active administration of staff benefits to ensure that staffs
actually receive their existing entitlements.

• Increased opportunities for technical training.

• Stronger supervisory systems so that quality is monitored more closely
and more regularly and is supplemented by routine surveys of client
satisfaction.

• Greater awareness among local chief executives of the staff turnover
and increasing emigration issues, so that greater policy and planning
focus is provided in these areas.

• Strengthened laboratory efficiency and TB Quality Assurance systems

The Recipient should pay special attention to the barangay health
workers, since their participation is critical to health success. The
Recipient should explore ways to maximize their performance as effective
outreach workers -- such as providing competency-based training for the
technical aspects of family planning and child health, appropriate
performance incentives (e.g. transportation allowances or uniforms) and
regular supervision of the workers by the barangay midwife.

The program component provides one of the most direct linkages between
strengthening of LGU systems and advocacy capabilities on the one hand
and improved health outcomes for the nation on the other. LGUs and other
local partners shall be assisted in increasing the reach of
interpersonal communication and counseling activities through
mobilization of community volunteers. These service provider outcomes
need to be achieved to enable service providers to contribute to
priority health outcomes, including:

• Rising contraceptive prevalence rates, especially among the poor.

• Higher TB detection and cure rates attributable to improved diagnosis.

• Increased referrals to DOTS clinics.

• Increased skilled attendance at births.

• Increased uptake of antenatal and postnatal care.

• Higher immunization coverage.

• Greater awareness by Most-at Risk Population (MARPs) of HIV and how to
prevent its transmission.

• Increased prevalence of breastfeeding.

Other illustrative activities may include the following:

• Facilitating surveys of refresher training needs based on current
intervention-specific service delivery problems, primarily for staff
serving at the RHU and barangay health stations.

• Identifying the most appropriate organizations to provide refresher
training to staff from each of the HSD Project's target provinces --
including CHDs, provincial health offices or other organizations.

• Improve health education materials and their presentation on TB,
HIV/AIDS in collaboration with HPC Project using innovative approaches.

• Strengthen LGU/NGO capacity to develop prevention interventions for
MSM, IDU and OFW

• Implementing activities to reach these MARPs with HIV/AIDS education

• Working with LGUs to ensure that service provider training costs are
progressively built into LGU health budgets.

• Assisting selected training partners to improve their readiness to
provide training.

• Working with LGUs to help them identify staffing patterns and desired
staffing standards and develop strategies for bridging any gaps.

• Helping LGUs to review current staff benefits and their administration
in order to simplify the existing package and develop new incentives
aimed at improving morale, reducing staff turnover and directing
existing staff towards serving those most in need -- for example,
provision of non-monetary incentives such as a free, comprehensive
health insurance package for health workers and educational package for
the children of those assigned in difficult areas.

• Encouraging compliance with the 2002 nursing law increasing the salary
range for nurses and for faithful provision of other benefits and wages
provided by existing laws.

• Cross-training of different staff cadres in response to the high
emigration and turnover rates.

• Examining how supervision is currently performed and work with LGUs to
explore new strategies for increasing both the thoroughness and
regularity of staff supervision, tied to the new incentives to be
developed.

• Assisting LGUs to design and install inexpensive systems to measure
the performance of health personnel and make them more accountable to
the community.

• Proposing new approaches to measuring and surveying client
satisfaction and tie this to staff incentives.

• Helping health staff to develop advocacy and health education packages
for LGU managers consisting of information materials, meetings or public
forums that will improve their understanding of the service provider
performance issues.

Illustrative indicators are:

• Number of initial client visits and return visits to public health
facilities increased.

• Number of organizations certified/accredited as training providers.

• Percentage of LGUs paying directly for service provider training.

• Number of local organizations and institutions committed to provide
non-monetary incentives and benefits to LGU service providers.

• Number of LGUs passing new ordinances to improve or protect health
staff's working conditions or benefits package.

• Frequency and quality of monitoring and supervision activities at LGU
health facilities.

• LGU health personnel attrition rate.

• Client satisfaction scores.

**D. Increasing advocacy on service delivery and financing**

USAID recognizes that public sector provision of quality health services
depends on the commitment of public officials to invest in health and on
policies that promote both the supply of and demand for health services.
Therefore, advocacy and policy are also an important aspect of this
component. The Recipient should work with LGU staff, public sector
champions and civil society to strengthen their ability to advocate for
sufficient funding and a favorable policy environment for public health.
The expected outcomes are:

• Increased understanding by LGU officials of the importance of public
health for the development and welfare of their LGU.

• Formulation and dissemination of policies and public statements
favorable to the provision of quality public health services at the LGU
level.

• Approval of LGU budgets sufficient to meet public health needs.

• Active promotion of public health services by LGU officials,
especially to the poor.

• Increased confidence and ability on the part of public sector health
staff to advocate with LGU officials for their budget and other needs,
including the ability to identify, analyze and present data to support
the issues for which they are advocating.

• Increased ability of NGOs and civil society to advocate for public
health services, especially for the poor, including the ability to
identify, analyze and present data to support the issues for which they
are advocating.

• Increased ability of NGOs to monitor the quality of public health
services and report areas with which they are dissatisfied.

• Increased amount of public/LGU resources invested for health promotion
and communication interventions.

• Increased utilization of LGU DOTS facilities.

• Increased ability of LGUs to fund, implement and manage HIV/AIDS
prevention programs

In most instances it will be necessary to gain the trust and buy-in of
the governor and provincial health and population officials before
working at the city or municipal level. The Recipient should also touch
base with the various Leagues to keep them apprised of each area of work
that will be undertaken and to gain their support and buy-in as needed.
Although most of the assistance for policy and advocacy provided under
this component will be at the city or municipal level, the Recipient
should also provide such assistance at the provincial level in instances
where it will pave the way for more effective policy and advocacy work
at the city/municipal level.

At the local level, the Recipient should work with LGU officials,
including the mayor, the budget officer, the planning officer, the
Sanggunian Bayan, and others whose decisions affect the provision of
public health services. The Recipient should also work with LGU health
staff to increase their confidence and ability to advocate for their
programs. And, finally, the Recipient should identify NGOs and civil
society representatives and strengthen their ability to advocate for
public health issues in close collaboration with the Health Promotion
and Communication (HPC) Project. Civil society advocates are important
conduits for public health in two directions, both from the community to
public officials, and from officialdom back to the community. In the
former direction, civil society advocates can voice the needs of the
community, particularly the poor, and insist that public officials meet
those needs. In the latter, they can serve as sources of information on
health services that are available to the community and can educate the
community about the importance of using such services, for instance the
benefits of utilizing the services of skilled providers for childbirth.

The policy and advocacy work need to be carried out in a participatory
fashion, focusing on the needs and wishes of the client, including LGU
officials, health staff or civil society representatives. The Recipient
should assist and advice on how best to bring about policy change or how
best to advocate effectively -- i.e. the process and skills for policy
change and advocacy -- but the policy and advocacy issues to be
addressed will be identified by the parties concerned.

Illustrative activities are:

• Assistance to health service staff on choosing and packaging public
health information to inform and gain commitment from public sector
champions.

• Assistance to health service staff on presentation and advocacy
skills, primarily drawing on the expertise from the Health Promotion and
Communication (HPC) Program.

• Assistance to local officials on creating or changing policies that
affect provision of public health services.

• Identification of NGOs and civil society advocates interested in
improved public health.

• Assistance to NGOs/civil society on advocacy skills -- e.g.
identification of targets, development of advocacy strategy and
messages, ability to understand and use appropriate data, and
presentation skills.

• Small grants to enable NGOs to disseminate health service information
to the community.

To promote replicability and sustainability, the Recipient should
identify and work with local academic or other institutions that can
provide advocacy and policy assistance to LGUs. The Recipient should
also identify promising health sector staff and civil society advocates
and provide training-of-trainer sessions so they can then provide policy
and advocacy training to other LGUs in the province.

Illustrative indicators are:

• Number of LGUs with more comprehensive and well-presented plans and
budgets.

• Number of LGUs in which health advocacy strategies and messages are
developed.

• Number of LGUs in which NGOs advocate to the community for increased
use of public health services, especially among the poor.

• Number of LGUs in which mayors publicly promote the value of improved
public health.

• Number of LGUs in which the budget proposed by health sector staff is
approved.

• Number of LGUs that conduct public hearings on health sector issues.

• Evidence of community input to deliberations of local health board or
sanggunian bayan.

• Evidence of LGU input to health sector program or budget deliberations
at provincial level.

• Favorable positions taken by the Leagues on public health issues.

**V. RESPONSIBILITIES OF THE RECIPIENT**

In order to successfully implement the above activities, the Recipient
responsibilities should include the following:

1\. Program management assistance activities, conduct overseas and
in-country training, appropriate budgetary support to LGUs, operations
research, reviews and assessments, presentations and other activities
needed to achieve expected outcomes.

2\. Design and implementation or subawarding of studies, operations
research and limited advanced implementation activities as deemed
necessary.

3\. Arrangements for conducting seminars and in country and any overseas
training.

4\. Creation of an administrative infrastructure to allow expeditious
completion of activities within this scope of the program.

5\. Financial Management.

6\. Establishment of effective linkages with key public and private
entities which will have responsibilities for and influence in this
project.

7\. Coordination and close working collaboration with other USAID
partners and grantees particularly those under SO 3.

8\. Prepare annual work plans, quarterly progress reports and annual
assessments of overall implementation performance.

9\. Set up liaison offices in Metro Manila and an appropriate network of
regional offices to cover the Project's target provinces and LGUs.

10\. In close consultation with implementing partners, development of a
performance measurement and monitoring plan. This plan should identify
expected results, performance indicators, baseline and annual targets,
data source(s), collection frequency and responsibility, and reporting
schedules.

> • The National Health Planning Committee. Chaired by the DOH's
> Assistant Secretary for Policy, the Committee may provide health
> sector-specific guidance to the Project.
>
> • A Technical Inter-Agency Committee may provide a forum for
> coordinating and consolidating design, implementation and monitoring
> of the Program activities with the DOH, USAID, PHIC and PopCom.

Various technical working groups may also be created and to ensure that
LGUs' interests are directly represented as well in the management
structure.

11\. Creation of various technical working groups to ensure that LGUs'
interests are directly represented.

12\. Development and maintenance of a customer service plan.

13\. Development of a baseline database incorporating existing survey
and other data for all areas covered by the project (e.g. the targeted
LGUs, policy issues and concerns, etc.) which should be completed within
two months of project inception.

14\. Formulation of indicators to be measured at the LGU level in order
to determine the LGUs' achievement of annual performance benchmarks.

15\. Promote collaboration with advocacy, policy and
systems-strengthening activities funded by other donors, particularly
those in Fourmula One provinces where other donors are particularly
active.

**VI. ENVISIONED METHODOLOGY**

The Program will work with approximately one third of the non-ARMM LGUs
over its life. A separate ARMM Health Program will be working with the
ARMM LGUs. The Program should use a "wholesale" rather than a "retail"
approach in three broad phases. First, an orientation phase, starting at
the provincial level to gain the buy-in and commitment of governors, who
can influence the buy-in and commitment of the mayors in their province.
The support of the various Leagues will also be valuable in encouraging
active participation from groups of LGU officials and their staffs.
Other USAID projects will be invited to join in this planning stage so
that an integrated and a concerted USAID response becomes possible.
Second, a planning phase, when activities are identified, planned and
costed, followed by the third, roll-out phase. This three-phase approach
may need to be repeated each year in LGUs requiring substantial support.

The HSD Program should work in partnership with replication agents at
both the local and national levels. The program will need to decide in
consultation with USAID how best to organize financial flows between
itself, these replication agents and its LGU clients. There are at least
3-4 alternatives:

• Fund the agents directly (or through subagreements) and have them
supply services to LGUs for free. This approach is simple but not
sustainable if the LGUs do not become accustomed to valuing and paying
for the assistance they receive.

• Fund the agents directly and also fund the LGUs (through
subagreements) and have the LGUs buy services from the agents. This
establishes a more sustainable relationship but still does not require
LGUs to commit to a value for the services by paying from their own
funds.

• Fund the agents and fund the LGUs but require a counterpart or
matching contribution from the LGUs for the services they receive from
the Project's agents. This begins to establish a much more sustainable
relationship.

• Fund the agents and have the LGUs fund their purchases of services
from the agents. This may be the most sustainable option since it allows
the possibility of the relationship continuing well after USAID's HSD
Project ends.

The choice between these alternatives depends in part on the LGUs'
willingness to fund the purchase of assistance at this stage in their
development. Some are already paying for technical training from their
own funds, although the great majority still depend on almost free
service from CHDs and provincial health authorities. Few are yet paying
for other forms of technical assistance.

**Ensuring sustainability**

Under this Program, USAID seeks to ensure that sufficient high-quality
health services can eventually be sustainably provided, managed and
financed by local governments without external assistance. The focus on
sustainability has several implications. First, the Recipient should
work with LGU staff in a participatory manner to determine jointly the
LGU clients' needs and to respond to them. Second, emphasis should be
given to building both the confidence and the capacity of LGU staff to
carry out the functions listed above. Third, the Recipient should work
with LGU staff to strengthen their ability to improve their own systems,
rather than just improving the systems themselves or simply delivering
contractor-designed systems.

The Recipient should assume primary responsibility for making
programmatic and policy recommendations to ensure that the LGUs
sustainably strengthen and expand the delivery of key health services
such as family planning, tuberculosis-directly observed treatment short
course (TB-DOTS), maternal and child health, nutrition, HIV-AIDS and
other infectious diseases. The Recipient should work and coordinate with
the DOH and other government counterparts (local and national),
non-government organizations, civil society organizations, leagues of
local governance, academic and training institutions, local communities
and others as appropriate. The Recipient's main responsibility is
capability/capacity development, institutionalization and sustainability
of activities supported by the project. Sustainability issues should be
addressed immediately as they occur during project implementation and
progress toward their resolution should be monitored periodically.

**VII. LOCATION OF THE WORK**

The LGUs that will receive assistance will be located in 20-25 provinces
to be chosen by the Program in consultation with USAID and the DOH.
Criteria for identifying the provinces should include:

• Interest in and apparent commitment to health activities by the local
chief executive.

• Population size.

• USAID's budget constraint.

• Support for Fourmula One convergence provinces.

• Reasonable regional balance.

• Size of the remaining health and FP challenge.

• Level of poverty.

• Estimated TB incidence rate

• Risk for Avian Flu

• HIV/AIDS sentinel site

An illustrative list conforming to these criteria would include some of
the following provinces:

**Figure 1. Illustrative List of Focus Provinces for the HSD Program**

Agusan del Norte Davao del Sur Saranggani

Aklan Leyte Sorsogon

Albay Negros Occidental Surigao del Sur

Bukidnon Negros Oriental Tarlac

Bulacan Nueva Ecija Zamboanga del Norte

Cagayan Isabela

Capiz Misamis Oriental

Catanduanes Pangasinan

Some LGUs are more advanced than others in their ability to provide and
manage their public health services sustainably. Since the needs of each
LGU will be unique, the Recipient cannot create a single model for
systems strengthening and capacity-building. Rather, activities should
be tailored to individual LGUs (or, depending on their homogeneity,
ILHZs) and their needs. However, in order eventually to institutionalize
LGU capacity-building, the Recipient should develop a replicable
methodology for working with LGUs to strengthen their capacity to
create, adapt and manage their own systems -- a methodology that can
also be used by other donors in the provinces in which they are working.

Much of the LGU "coaching" that will take place to help LGUs tailor
their systems to meet their needs will be provided by existing local,
provincial, or regional organizations. These could include regional DOH
offices, provincial health offices, universities and training
institutions, management consulting firms, and NGOs with well-developed
advocacy or public health capabilities. The Program will work with LGUs
to help them identify appropriate sources of training and mentoring and
assistance to LGUs. Since a primary objective of the Program is to
create sustainable ways for LGUs to improve and upgrade their systems
continuously, the Program will experiment with paying for such training
and coaching assistance by matching Project funds with LGU funds. As a
side benefit of the Program, the aforementioned coaching organizations
will also hone their own training skills and will be able to function as
"replication agents," eventually introducing the Program's policy,
advocacy, and systems strengthening methodologies to other non-Program
LGUs.

Efforts to prevent and control infectious diseases will focus on
strengthening the capacity of LGUs to plan, manage, and implement
appropriate health services. The program should inter-phase with
TB/emerging infectious diseases activities to strengthen and facilitate
LGU AI preparedness planning in selected provinces depending on the
level of risk, including training on basic preparedness measures,
community and hospital-based prevention efforts and developing plans and
systems for rapid response capacity for AI at the barangay levels.

The follow-on USAID/Philippines strategy addresses the challenges in
creating and maintaining a viable HIV/AIDS response in a country that
has consistently maintained low prevalence rates despite demonstrable
risk factors. The strategy focuses at clusters of contiguous highly
urbanized localities where the HIV epidemic had gained a toehold. The
strategy's largest component remains prevention of HIV infection and
this component supports a geographically focused coverage in the
following six areas of the country, namely clusters of contiguous
localities comprising:

1\. The Clark Development Zone;

2\. Metro Manila;

3\. Metropolitan area of Cebu;

4\. Iloilo-Bacolod area;

5\. Davao-General Santos corridor; and

6\. Zamboanga City

It is expected that systems strengthening and capacity-building will
proceed in waves over the course of the Program, starting at a beginning
level for some LGUs and at a more advanced level for others. Therefore,
the Program needs to work with some LGUs for only 2-3 years and with
others for longer.

Under this component of HSDP, the bulk of the work will be at the LGU
level. A separate component of the program, to be implemented through
another mechanism, will also provide assistance in changing
national-level policies, rules and regulations that impede LGU provision
of public health services. Much of this work will "bubble up" from the
Program's work with LGUs, particularly when it becomes apparent that
troublesome policies, regulations and official procedures at the
national level are impeding the provision and financing of health
services at the LGU level. In such cases, the Program will carry out a
series of advocacy activities at the national level -- e.g. packaging
and presenting data to inform national-level policymakers about changes
that need to be made, finding and supporting national-level champions
within the public sector, bringing policymakers together to dialogue
about needed changes, and providing whatever assistance is needed to
draft changes in policies, rules and regulations for approval by the
appropriate national bodies.

**VIII. RELATIONSHIP WITH OTHER PROJECTS AND PROGRAMS**

It is envisioned that there will be strong relationships between the LGU
Systems Strengthening component and other ongoing and new projects in
the health sector:

**A. Other USAID Projects**:

•PRISM Project -- PRISM and the HSDP should collaborate on contraceptive
supplies. As donated supplies end, there is need to migrate clients who
can afford to pay for FP services into the private sector or charge user
fees for those who continue to use the public sector. PRISM can assist
significantly with the migration strategy, helping to foster new avenues
for access to private FP services. At the same time, there will be a
need to attract new suppliers of low-cost, unbranded contraceptives into
the Philippines market so that LGUs can afford to buy contraceptives for
free distribution. The HSD Program will look to PRISM and possibly DKT
Philippines to assist with diversifying the range of suppliers and
products at the bottom end of the market.

•ARMM Health Program -- While service delivery efforts will be separated
by geography, there will an overlap between the HSDP and the new ARMM
Health Program on national policy issues. The ARMM Health Program should
handle policy issues within ARMM itself -- akin to the HSD Program
assisting in development of new LGU ordinances outside ARMM. However,
the HSD Program will take on board policy issues at the national level
arising from both ARMM and non-ARMM parts of the country. Many of these
issues have been identified already.

•HPC Program -- This new program will cover behavior change
communication (BCC) issues for FP, MCH, TB and HIV/AIDS. This means that
needs for BCC assistance -- e.g. on BCC campaign design or training on
inter-personal communication -- to LGUs already working with the HSD
Program can be channeled to the partner HPC Program as needed. Also, the
HSD Program will be involved in advocacy at the LGU-level, mostly on
topics associated with support to service delivery -- e.g. increasing
financial flows, promoting adequate budget provisions, ensuring
sufficient supplies of commodities, etc. To the extent that the HPC
Program is involved in BCC topics directly associated with service
delivery -- e.g. promotion of exclusive breastfeeding, improving EPI
coverage or encouraging condom use among HIV risk groups -- there will
again be significant convergence of interests between the two programs.

•The TB Control Program -- This program project will provide deeper
technical TB skills in such areas as multi-drug resistant TB and
pediatric TB. The two programs should work closely on delivering these
skills as needed to LGUs.

The Program should complement other USAID activities in the private
sector -- e.g. in FP and TB. While the HSD Program concern is the public
sector, there will be continuing discussion on how to focus the public
sector on those who need free and/or low cost service, while ensuring
that those who can pay are well cared for in the private sector. This
resource allocation issue -- leveraging the private sector to ensure
that scarce public resources are wisely utilized -- will provide a
continuing need for dialog between the Program and its private sector
counterparts.

**B. Other Donor Plans**

The Asian Development Bank (ADB) has three ongoing forms of assistance
to the health sector: a program loan of \$200 million to be used over
the period 2005-2007, to finance HSRA activities at the center; a
project loan of \$23 million, to be used over the same period, to
finance HSRA implementation in five provinces (Ifugao, Ilocos Norte,
Nueva Vizcaya, Oriental Mindoro and Romblon); a technical assistance
grant of \$1 million over the same period to assist DOH in
conceptualizing and planning its HSRA activities and how best to assist
LGUs in implementing reforms.

The World Bank (WB) is working closely with ADB, the European Commission
(EC), GTZ/KfW and WHO as it evolves a virtual sector-wide approach to
assisting the health sector under the auspices of the HSRA. WB is
working in all 16 of the DOH's convergence provinces under the
FOURmulaOne initiative. A \$100 million WB loan, to be launched in 2006,
will include finance for PHIC premiums for the indigent,
performance-linked grants to selected LGUs with acceptable service
performance agreements, support for the Bureau of Food and Drugs while
it is in transition to increased cost recovery, strengthening central
office functions of both DOH and CHDs, and DOH counterpart contributions
to EC grants for LGU implementation of HSRA.

The EC is already active in some of the convergence sites and plans to
provide a \$39 million grant (likely to start in October 2006) available
across all 16 convergence provinces to assist with HSRA roll-out by
LGUs; the focus will probably be on systems strengthening, especially
poverty mapping methodology, LGU scorecards and information systems
development. The EC grant will also help fund some strengthening of DOH
central functions. GTZ is already supporting HSRA roll-out in three
convergence provinces with technical assistance of around \$2 million.
KfW is planning to launch a \$12 million loan for the same purpose in
another three convergence provinces during 2006 and will also continue
to support the DKT Philippines social marketing of contraceptives
through 2008. WHO continues to provide modest technical assistance under
its four strategic focus areas: advocacy for health, protection of the
poor, health sector reform and reducing disease risk.

The efforts of these and other donors to the health sector (e.g. Japan
International Cooperation Agency) imply that considerable donor support
will be available to supplement the efforts of the HSD Project. The
danger of overlap increases to the extent that HSDP focuses on the DOH's
convergence sites. However, even within these sites, there will be
plenty of room for all of this proposed donor assistance, with a few
cautions: on systems strengthening for LGUs, there will need to be
careful coordination in information systems, poverty mapping and
commodity logistics management to avoid overlap with the EC and WB; work
on service provider performance improvement needs to be mindful of the
WB-financed initiatives under service performance agreements; national
policy and advocacy work will need to take into account what many of the
other donors are doing.

**IX. LIFE OF AGREEMENT**

The period of the Agreement will be from October 1, 2006 to September
30, 2011. The total estimated budget for the program is \$25,000,000.

**SECTION D**

[]{#CL_URFASEDHD_PH000001 .anchor}

**U.S. AGENCY FOR INTERNATIONAL DEVELOPMENT**

**CERTIFICATIONS, ASSURANCES, AND OTHER STATEMENTS OF RECIPIENT
\[1\]\[2\]**

##  PART I - CERTIFICATIONS AND ASSURANCES

**1. ASSURANCE OF COMPLIANCE WITH LAWS AND REGULATIONS GOVERNING
NON-DISCRIMINATION IN FEDERALLY ASSISTED PROGRAMS**

\(a\) The recipient hereby assures that no person in the United States
shall, on the bases set forth below, be excluded from participation in,
be denied the benefits of, or be otherwise subjected to discrimination
under, any program or activity receiving financial assistance from
USAID, and that with respect to the grant for which application is being
made, it will comply with the requirements of:

\(1\) Title VI of the Civil Rights Act of 1964 (Pub. L. 88-352, 42
U.S.C. 2000-d), which prohibits discrimination on the basis of race,
color or national origin, in programs and activities receiving Federal
financial assistance;

\(2\) Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794),
which prohibits discrimination on the basis of handicap in programs and
activities receiving Federal financial assistance;

\(3\) The Age Discrimination Act of 1975, as amended (Pub. L. 95-478),
which prohibits discrimination based on age in the delivery of services
and benefits supported with Federal funds;

\(4\) Title IX of the Education Amendments of 1972 (20 U.S.C. 1681, et
seq.), which prohibits discrimination on the basis of sex in education
programs and activities receiving Federal financial assistance (whether
or not the programs or activities are offered or sponsored by an
educational institution); and

\(5\) USAID regulations implementing the above nondiscrimination laws,
set forth in Chapter II of Title 22 of the Code of Federal Regulations.

\(b\) If the recipient is an institution of higher education, the
Assurances given herein extend to admission practices and to all other
practices relating to the treatment of students or clients of the
institution, or relating to the opportunity to participate in the
provision of services or other benefits to such individuals, and shall
be applicable to the entire institution unless the recipient establishes
to the satisfaction of the USAID Administrator that the institution\'s
practices in designated parts or programs of the institution will in no
way affect its practices in the program of the institution for which
financial assistance is sought, or the beneficiaries of, or participants
in, such programs.

\(c\) This assurance is given in consideration of and for the purpose of
obtaining any and all Federal grants, loans, contracts, property,
discounts, or other Federal financial assistance extended after the date
hereof to the recipient by the Agency, including installment payments
after such date on account of applications for Federal financial
assistance which were approved before such date. The recipient
recognizes and agrees that such Federal financial assistance will be
extended in reliance on the representations and agreements made in this
Assurance, and that the United States shall have the right to seek
judicial enforcement of this Assurance. This Assurance is binding on the
recipient, its successors, transferees, and assignees, and the person or
persons whose signatures appear below are authorized to sign this
Assurance on behalf of the recipient.

**2. CERTIFICATION REGARDING DRUG-FREE WORKPLACE REQUIREMENTS**

\(a\) Instructions for Certification

\(1\) By signing and/or submitting this application or grant, the
recipient is providing the certification set out below.

\(2\) The certification set out below is a material representation of
fact upon which reliance was placed when the agency determined to award
the grant. If it is later determined that the recipient knowingly
rendered a false certification, or otherwise violates the requirements
of the Drug-Free Workplace Act, the agency, in addition to any other
remedies available to the Federal Government, may take action authorized
under the Drug-Free Workplace Act.

\(3\) For recipients other than individuals, Alternate I applies.

\(4\) For recipients who are individuals, Alternate II applies.

\(b\) Certification Regarding Drug-Free Workplace Requirements

Alternate I

\(1\) The recipient certifies that it will provide a drug-free workplace
by:

\(A\) Publishing a statement notifying employees that the unlawful
manufacture, distribution, dispensing, possession or use of a controlled
substance is prohibited in the applicant\'s/grantee\'s workplace and
specifying the actions that will be taken against employees for
violation of such prohibition;

\(B\) Establishing a drug-free awareness program to inform employees
about\--

1\. The dangers of drug abuse in the workplace;

2\. The recipient\'s policy of maintaining a drug-free workplace;

3\. Any available drug counseling, rehabilitation, and employee
assistance programs; and

4\. The penalties that may be imposed upon employees for drug abuse
violations occurring in the workplace;

\(C\) Making it a requirement that each employee to be engaged in the
performance of the grant be given a copy of the statement required by
paragraph (b)(1)(A);

\(D\) Notifying the employee in the statement required by paragraph
(b)(1)(A) that, as a condition of employment under the grant, the
employee will\--

1\. Abide by the terms of the statement; and

2\. Notify the employer of any criminal drug statute conviction for a
violation occurring in the workplace no later than five days after such
conviction;

\(E\) Notifying the agency within ten days after receiving notice under
subparagraph (b)(1)(D)1, from an employee or otherwise receiving actual
notice of such conviction;

\(F\) Taking one of the following actions, within 30 days of receiving
notice under subparagraph (b)(1)(D)2., with respect to any employee who
is so convicted\--

1\. Taking appropriate personnel action against such an employee, up to
and including termination; or

2\. Requiring such employee to participate satisfactorily in a drug
abuse assistance or rehabilitation program approved for such purposes by
a Federal, State, or local health, law enforcement, or other appropriate
agency;

\(G\) Making a good faith effort to continue to maintain a drug- free
workplace through implementation of paragraphs (b)(1)(A), (b)(1)(B),
(b)(1)(C), (b)(1)(D), (b)(1)(E) and (b)(1)(F).

\(2\) The recipient shall insert in the space provided below the site(s)
for the performance of work done in connection with the specific grant:

Place of Performance (Street address, city, county, state, zip code)

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

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

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

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

Alternate II

The recipient certifies that, as a condition of the grant, he or she
will not engage in the unlawful manufacture, distribution, dispensing,
possession or use of a controlled substance in conducting any activity
with the grant.

**3. CERTIFICATION REGARDING DEBARMENT, SUSPENSION, AND OTHER
RESPONSIBILITY MATTERS \-- PRIMARY COVERED TRANSACTIONS \[3\]**

\(a\) Instructions for Certification

1\. By signing and submitting this proposal, the prospective primary
participant is providing the certification set out below.

2\. The inability of a person to provide the certification required
below will not necessarily result in denial of participation in this
covered transaction. The prospective participant shall submit an
explanation of why it cannot provide the certification set out below.
The certification or explanation will be considered in connection with
the department or agency\'s determination whether to enter into this
transaction. However, failure of the prospective primary participant to
furnish a certification or an explanation shall disqualify such person
from participation in this transaction.

3\. The certification in this clause is a material representation of
fact upon which reliance was placed when the department or agency
determined to enter into this transaction. If it is later determined
that the prospective primary participant knowingly rendered an erroneous
certification, in addition to other remedies available to the Federal
Government, the department or agency may terminate this transaction for
cause or default.

4\. The prospective primary participant shall provide immediate written
notice to the department or agency to whom this proposal is submitted if
at any time the prospective primary participant learns that its
certification was erroneous when submitted or has become erroneous by
reason of changed circumstances.

5\. The terms \"covered transaction,\" \"debarred,\" \"suspended,\"
\"ineligible,\" lower tier covered transaction,\" \"participant,\"
\"person,\" \"primary covered transaction,\" \"principal,\"
\"proposal,\" and \"voluntarily excluded,\" as used in this clause, have
the meaning set out in the Definitions and Coverage sections of the
rules implementing Executive Order 12549. \[4\] You may contact the
department or agency to which this proposal is being submitted for
assistance in obtaining a copy of those regulations.

6\. The prospective primary participant agrees by submitting this
proposal that, should the proposed covered transaction be entered into,
it shall not knowingly enter into any lower tier covered transaction
with a person who is debarred, suspended, declared ineligible, or
voluntarily excluded from participation in this covered transaction,
unless authorized by the department or agency entering into this
transaction.

7\. The prospective primary participant further agrees by submitting
this proposal that it will include the clause titled \"Certification
Regarding Debarment, Suspension, Ineligibility and Voluntary
Exclusion\--Lower Tier Covered Transaction,\" \[5\] provided by the
department or agency entering into this covered transaction, without
modification, in all lower tier covered transactions and in all
solicitations for lower tier covered transactions.

8\. A participant in a covered transaction may rely upon a certification
of a prospective participant in a lower tier covered transaction that it
is not debarred, suspended, ineligible, or voluntarily excluded from the
covered transaction, unless it knows that the certification is
erroneous. A participant may decide the methods and frequency by which
it determines the eligibility of its principals. Each participant may,
but is not required to, check the Nonprocurement List.

9\. Nothing contained in the foregoing shall be construed to require
establishment of a system of records in order to render in good faith
the certification required by this clause. The knowledge and information
of a participant is not required to exceed that which is normally
possessed by a prudent person in the ordinary course of business
dealing.

10\. Except for transactions authorized under paragraph 6 of these
instructions, if a participant in a covered transaction knowingly enters
into a lower tier covered transaction with a person who is suspended,
debarred, ineligible, or voluntarily excluded from participation in this
transaction, in addition to other remedies available to the Federal
Government, the department or agency may terminate this transaction for
cause or default.

\(b\) Certification Regarding Debarment, Suspension, and Other
Responsibility Matters\--Primary Covered Transactions

\(1\) The prospective primary participant certifies to the best of its
knowledge and belief, the it and its principals:

\(A\) Are not presently debarred, suspended, proposed for debarment,
declared ineligible, or voluntarily excluded from covered transactions
by any Federal department or agency;

\(B\) Have not within a three-year period preceding this proposal been
convicted of or had a civil judgment rendered against them for
commission of fraud or a criminal offense in connection with obtaining,
attempting to obtain, or performing a public (Federal, State or local)
transaction or contract under a public transaction; violation of Federal
or State antitrust statutes or commission of embezzlement, theft,
forgery, bribery, falsification or destruction of records, making false
statements, or receiving stolen property;

\(C\) Are not presently indicted for or otherwise criminally or civilly
charged by a governmental entity (Federal, State or local) with
commission of any of the offenses enumerated in paragraph (1)(B) of this
certification;

\(D\) Have not within a three-year period proceeding this
application/proposal had one or more public transactions (Federal, State
or local) terminated for cause or default.

\(2\) Where the prospective primary participant is unable to certify to
any of the statements in this certification, such prospective
participant shall attach an explanation to this proposal.

**4. CERTIFICATION REGARDING LOBBYING**

The undersigned certifies, to the best of his or her knowledge and
belief, that:

\(1\) No Federal appropriated funds have been paid or will be paid, by
or on behalf of the undersigned, to any person for influencing or
attempting to influence an officer or employee of any agency, a Member
of Congress, an officer or employee of Congress, or an employee of a
Member of Congress in connection with the awarding of any Federal
contract, the making of any Federal grant, the making of any Federal
loan, the entering into of any cooperative agreement, and the extension,
continuation, renewal, amendment or modification of any Federal
contract, grant, loan, or cooperative agreement.

\(2\) If any funds other than Federal appropriated funds have been paid
or will be paid to any person for influencing or attempting to influence
an officer or employee of any agency, a Member of Congress, an officer
or employee of Congress, or an employee of a Member of Congress in
connection with this Federal contract, grant, loan, or cooperative
agreement, the undersigned shall complete and submit Standard Form-LLL,
\"Disclosure of Lobbying Activities,\" in accordance with its
instructions.

\(3\) The undersigned shall require that the language of this
certification be included in the award documents for all subawards at
all tiers (including subcontracts, subgrants, and contracts under
grants, loans, and cooperative agreements) and that all subrecipients
shall certify and disclose accordingly.

This certification is a material representation of fact upon which
reliance was placed when this transaction was made or entered into.
Submission of this certification is a prerequisite for making or
entering into this transaction imposed by section 1352, title 31, United
States Code. Any person who fails to file the required certification
shall be subject to a civil penalty of not less than \$10,000 and not
more than \$100,000 for each such failure.

Statement for Loan Guarantees and Loan Insurance

The undersigned states, to the best of his or her knowledge and belief,
that: If any funds have been paid or will be paid to any person for
influencing or attempting to influence an officer or employee of any
agency, a Member of Congress, an officer or employee of Congress, or an
employee of a Member of Congress in connection with this commitment
providing for the United States to insure or guarantee a loan, the
undersigned shall complete and submit Standard Form-LLL, \"Disclosure
Form to Report Lobbying,\" in accordance with its instructions.
Submission of this statement is a prerequisite for making or entering
into this transaction imposed by section 1352, title 31, U.S. Code. Any
person who fails to file the required statement shall be subject to a
civil penalty of not less than \$10,000 and not more than \$100,000 for
each such failure.

**5. PROHIBITION ON ASSISTANCE TO DRUG TRAFFICKERS FOR COVERED COUNTRIES
AND INDIVIDUALS (ADS 206)**

USAID reserves the right to terminate this \[Agreement/Contract\], to
demand a refund or take other appropriate measures if the \[Grantee/
Contractor\] is found to have been convicted of a narcotics offense or
to have been engaged in drug trafficking as defined in 22 CFR Part 140.
The undersigned shall review USAID ADS 206 to determine if any
certification are required for Key Individuals or Covered Participants.

If there are COVERED PARTICIPANTS: USAID reserves the right to terminate
assistance to, or take or take other appropriate measures with respect
to, any participant approved by USAID who is found to have been
convicted of a narcotics offense or to have been engaged in drug
trafficking as defined in 22 CFR Part 140.

The recipient has reviewed and is familiar with the proposed grant
format and the applicable regulations, and takes exception to the
following (use a continuation page as necessary):

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

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

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

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

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

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

Application/Proposal No.
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Date of Application/Proposal
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Name of Recipient
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

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

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

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

\[1\] FORMATS\\GRNTCERT: Rev. 06/16/97 (ADS 303.6, E303.5.6a) \[2\] When
these Certifications, Assurances, and Other Statements of Recipient are
used for cooperative agreements, the term \"Grant\" means \"Cooperative
Agreement\". \[3\] The recipient must obtain from each identified
subgrantee and (sub)contractor, and submit with its
application/proposal, the Certification Regarding Debarment, Suspension,
Ineligibility and Voluntary Exclusion \-- Lower Tier Transactions, set
forth in Attachment A hereto. The recipient should reproduce additional
copies as necessary. \[4\] See ADS Chapter E303.5.6a, 22 CFR 208,
Annex1, App A. \[5\] For USAID, this clause is entitled \"Debarment,
Suspension, Ineligibility, and Voluntary Exclusion (March 1989)\" and is
set forth in the grant standard provision entitled \"Debarment,
Suspension, and Related Matters\" if the recipient is a U.S.
nongovernmental organization, or in the grant standard provision
entitled \"Debarment, Suspension, and Other Responsibility Matters\" if
the recipient is a non-U.S. nongovernmental organization.

## PART II - OTHER STATEMENTS OF RECIPIENT

**1. AUTHORIZED INDIVIDUALS**

The recipient represents that the following persons are authorized to
negotiate on its behalf with the Government and to bind the recipient in
connection with this application or grant:

Name Title Telephone No. Facsimile No.

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

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

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

**2. TAXPAYER IDENTIFICATION NUMBER (TIN)**

If the recipient is a U.S. organization, or a foreign organization which
has income effectively connected with the conduct of activities in the
U.S. or has an office or a place of business or a fiscal paying agent in
the U.S., please indicate the recipient\'s TIN:

TIN: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

**3. CONTRACTOR IDENTIFICATION NUMBER - DATA UNIVERSAL NUMBERING SYSTEM
(DUNS) NUMBER**

\(a\) In the space provided at the end of this provision, the recipient
should supply the Data Universal Numbering System (DUNS) number
applicable to that name and address. Recipients should take care to
report the number that identifies the recipient\'s name and address
exactly as stated in the proposal.

\(b\) The DUNS is a 9-digit number assigned by Dun and Bradstreet
Information Services. If the recipient does not have a DUNS number, the
recipient should call Dun and Bradstreet directly at 1-800-333-0505. A
DUNS number will be provided immediately by telephone at no charge to
the recipient. The recipient should be prepared to provide the following
information:

\(1\) Recipient\'s name.

\(2\) Recipient\'s address.

\(3\) Recipient\'s telephone number.

\(4\) Line of business.

\(5\) Chief executive officer/key manager.

\(6\) Date the organization was started.

\(7\) Number of people employed by the recipient.

\(8\) Company affiliation.

\(c\) Recipients located outside the United States may obtain the
location and phone number of the local Dun and Bradstreet Information
Services office from the Internet Home Page at
http://www.dbisna.com/dbis/customer/custlist.htm. If an offeror is
unable to locate a local service center, it may send an e-mail to Dun
and Bradstreet at globalinfo@dbisma.com.

The DUNS system is distinct from the Federal Taxpayer Identification
Number (TIN) system.

DUNS:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

**4. LETTER OF CREDIT (LOC) NUMBER**

If the recipient has an existing Letter of Credit (LOC) with USAID,
please indicate the LOC number:

LOC:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

**5. PROCUREMENT INFORMATION**

\(a\) Applicability. This applies to the procurement of goods and
services planned by the recipient (i.e., contracts, purchase orders,
etc.) from a supplier of goods or services for the direct use or benefit
of the recipient in conducting the program supported by the grant, and
not to assistance provided by the recipient (i.e., a subgrant or
subagreement) to a subgrantee or subrecipient in support of the
subgrantee\'s or subrecipient\'s program. Provision by the recipient of
the requested information does not, in and of itself, constitute USAID
approval.

\(b\) Amount of Procurement. Please indicate the total estimated dollar
amount of goods and services which the recipient plans to purchase under
the grant:

\$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\(c\) Nonexpendable Property. If the recipient plans to purchase
nonexpendable equipment which would require the approval of the
Agreement Officer, please indicate below (using a continuation page, as
necessary) the types, quantities of each, and estimated unit costs.
Nonexpendable equipment for which the Agreement Officer\'s approval to
purchase is required is any article of nonexpendable tangible personal
property charged directly to the grant, having a useful life of more
than one year and an acquisition cost of \$5,000 or more per unit.

TYPE/DESCRIPTION QUANTITY ESTIMATED UNIT COST

(Generic)

\(d\) Source, Origin, and Componentry of Goods. If the recipient plans
to purchase any goods/commodities which are not of U.S. source and/or
U.S. origin, please indicate below (using a continuation page, as
necessary) the types and quantities of each, estimated unit costs of
each, and probable source and/or origin. \"Source\" means the country
from which a commodity is shipped to the cooperating country or the
cooperating country itself if the commodity is located therein at the
time of purchase. However, where a commodity is shipped from a free port
or bonded warehouse in the form in which received therein, \"source\"
means the country from which the commodity was shipped to the free port
or bonded warehouse. Any commodity whose source is a non-Free World
country is ineligible for USAID financing. The \"origin\" of a commodity
is the country or area in which a commodity is mined, grown, or
produced. A commodity is produced when, through manufacturing,
processing, or substantial and major assembling of components, a
commercially recognized new commodity results, which is substantially
different in basic characteristics or in purpose or utility from its
components. Merely packaging various items together for a particular
procurement or relabeling items does not constitute production of a
commodity. Any commodity whose origin is a non-Free World country is
ineligible for USAID financing. \"Components\" are the goods which go
directly into the production of a produced commodity. Any component from
a non-Free World country makes the commodity ineligible for USAID
financing.

TYPE/ QUANTITY EST. GOODS PROBABLE GOODS PROBABLE

DESCRIPTION UNIT COMPONENTS SOURCE COMPONENTS ORIGIN

(Generic) COST

\(e\) Restricted Goods. If the recipient plans to purchase any
restricted goods, please indicate below (using a continuation page, as
necessary) the types and quantities of each, estimated unit costs of
each, intended use, and probable source and/or origin. Restricted goods
are Agricultural Commodities, Motor Vehicles, Pharmaceuticals,
Pesticides, Rubber Compounding Chemicals and Plasticizers, Used
Equipment, U.S. Government-Owned Excess Property, and Fertilizer.

TYPE/ QUANTITY ESTIMATED PROBABLE PROBABLE INTENDED

DESCRIPTION UNIT COST SOURCE ORIGIN USE

(Generic)

\(f\) Supplier Nationality. If the recipient plans to purchase any goods
or services from suppliers of goods and services whose nationality is
not in the U.S., please indicate below (using a continuation page, as
necessary) the types and quantities of each good or service, estimated
costs of each, probable nationality of each non-U.S. supplier of each
good or service, and the rationale for purchasing from a non-U.S.
supplier. Any supplier whose nationality is a non-Free World country is
ineligible for USAID financing.

TYPE/ QUANTITY ESTIMATED PROBABLE NATIONALITY RATIONALE

DESCRIPTION UNIT COST SUPPLIER for

(Generic) (Non-US Only) NON-US

\(g\) Proposed Disposition. If the recipient plans to purchase any
nonexpendable equipment with a unit acquisition cost of \$5,000 or more,
please indicate below (using a continuation page, as necessary) the
proposed disposition of each such item. Generally, the recipient may
either retain the property for other uses and make compensation to USAID
(computed by applying the percentage of federal participation in the
cost of the original program to the current fair market value of the
property), or sell the property and reimburse USAID an amount computed
by applying to the sales proceeds the percentage of federal
participation in the cost of the original program (except that the
recipient may deduct from the federal share \$500 or 10% of the
proceeds, whichever is greater, for selling and handling expenses), or
donate the property to a host country institution, or otherwise dispose
of the property as instructed by USAID.

TYPE/DESCRIPTION QUANTITY ESTIMATED PROPOSED DISPOSITION

(Generic) UNIT COST

**6. PAST PERFORMANCE REFERENCES**

On a continuation page, please provide a list of the ten most current
U.S. Government and/or privately-funded contracts, grants, cooperative
agreements, etc., and the name, address, and telephone number of the
Contract/Agreement Officer or other contact person.

**7. TYPE OF ORGANIZATION**

The recipient, by checking the applicable box, represents that -

\(a\) If the recipient is a U.S. entity, it operates as \[ \] a
corporation incorporated under the laws of the State of, \[ \] an
individual, \[ \] a partnership, \[ \] a nongovernmental nonprofit
organization, \[ \] a state or loc al governmental organization, \[ \] a
private college or university, \[ \] a public college or university, \[
\] an international organization, or \[ \] a joint venture; or

\(b\) If the recipient is a non-U.S. entity, it operates as \[ \] a
corporation organized under the laws of
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ (country), \[
\] an individual, \[ \] a partnership, \[ \] a nongovernmental nonprofit
organization, \[ \] a nongovernmental educational institution, \[ \] a
governmental organization, \[ \] an international organization, or \[ \]
a joint venture.

**8. ESTIMATED COSTS OF COMMUNICATIONS PRODUCTS**

The following are the estimate(s) of the cost of each separate
communications product (i.e., any printed material \[other than non-
color photocopy material\], photographic services, or video production
services) which is anticipated under the grant. Each estimate must
include all the costs associated with preparation and execution of the
product. Use a continuation page as necessary.

Attachment A

##  CERTIFICATION REGARDING DEBARMENT, SUSPENSION, INELIGIBILITY AND VOLUNTARY EXCLUSION LOWER TIER COVERED TRANSACTIONS

\(a\) Instructions for Certification

1\. By signing and submitting this proposal, the prospective lower tier
participant is providing the certification set out below.

2\. The certification in this clause is a material representation of
fact upon which reliance was placed when this transaction was entered
into. If it is later determined that the prospective lower tier
participant knowingly rendered an erroneous certification, in addition
to other remedies available to the Federal Government, the department or
agency with which this transaction originated may pursue available
remedies, including suspension and/or debarment.

3\. The prospective lower tier participant shall provide immediate
written notice to the person to which this proposal is submitted if at
any time the prospective lower tier participant learns that its
certification was erroneous when submitted or has become erroneous by
reason of changed circumstances.

4\. The terms \"covered transaction,\" \"debarred,\" \"suspended,\"
ineligible, \"lower tier covered transaction,\" \"participant,\"
\"person,\" \"primary covered transaction,\" \"principal,\"
\"proposal,\" and \"voluntarily excluded,\" as used in this clause, has
the meanings set out in the Definitions and Coverage sections of rules
implementing Executive Order 12549. 1/ You may contact the person to
which this proposal is submitted for assistance in obtaining a copy of
those regulations.

5\. The prospective lower tier participant agrees by submitting this
proposal that, should the proposed covered transaction be entered into,
it shall not knowingly enter into any lower tier covered transaction
with a person who is debarred, suspended, declared ineligible, or
voluntarily excluded from participation in this covered transaction,
unless authorized by the department or agency with which this
transaction originated.

6\. The prospective lower tier participant further agrees by submitting
this proposal that it will include this clause titled \"Certification
Regarding Debarment, Suspension, Ineligibility and Voluntary
Exclusion\--Lower Tier covered Transaction,\" 2/ without modification,
in all lower tier covered transactions and in all solicitations for
lower tier covered transactions.

7\. A participant in a covered transaction may rely upon a certification
of a prospective participant in a lower tier covered transaction that it
is not debarred, suspended, ineligible, or voluntarily excluded from the
covered transaction, unless it knows that the certification is
erroneous. A participant may decide the method and frequency by which it
determines the eligibility of its principals. Each participant may, but
is not required to, check the Non procurement List.

8\. Nothing contained in the foregoing shall be construed to require
establishment of a system of records in order to render in good faith
the certification required by this clause. The knowledge and information
of a participant is not required to exceed that which is normally
possessed by a prudent person in the ordinary course of business
dealings.

9\. Except for transactions authorized under paragraph 5 of these
instructions, if a participant in a covered transaction knowingly enters
into a lower tier covered transaction with a person who is suspended,
debarred, ineligible, or voluntarily excluded from participation in this
transaction, in addition to other remedies available to the Federal
Government, the department or agency with which this transaction
originated may pursue available remedies, including suspension and/or
debarment.

\(b\) Certification Regarding Debarment, Suspension, Ineligibility and
Voluntary Exclusion\--Lower Tier Covered Transactions

\(1\) The prospective lower tier participant certifies, by submission of
this proposal, that neither it nor its principals is presently debarred,
suspended, proposed for debarment, declared ineligible, or voluntarily
excluded from participation in this transaction by any Federal
department or agency.

\(2\) Where the prospective lower tier participant is unable to certify
to any of the statements in this certification, such prospective
participant shall attach an explanation to this proposal.

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

Application/Proposal No.
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Date of Application/Proposal
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Name of Applicant/Subgrantee
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

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

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

Signature
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

1/ See ADS Chapter 303, 22 CFR 208.

2/ For USAID, this clause is entitled \"Debarment, Suspension,
Ineligibility, and Voluntary Exclusion (March 1989)\" and is set forth
in the USAID grant standard provision for U.S. nongovernmental
organizations entitled \"Debarment, Suspension, and Related Matters\"
(see ADS Chapter 303), or in the USAID grant standard provision for
non-U.S. nongovernmental organizations entitled \"Debarment, Suspension,
and Other Responsibility Matters\" (see ADS Chapter 303).

## KEY INDIVIDUAL CERTIFICATION NARCOTICS OFFENSES AND DRUG TRAFFICKING

I hereby certify that within the last ten years:

1\. I have not been convicted of a violation of, or a conspiracy to
violate, any law or regulation of the United States or any other country
concerning narcotic or psychotropic drugs or other controlled
substances.

2\. I am not and have not been an illicit trafficker in any such drug or
controlled substance.

3\. I am not and have not been a knowing assistor, abettor, conspirator,
or colluder with others in the illicit trafficking in any such drug or
substance.

Signature: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Date: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Name: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Title/Position: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Organization:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

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

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

Date of Birth:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

NOTICE:

1\. You are required to sign this Certification under the provisions of
22 CFR Part 140, Prohibition on Assistance to Drug Traffickers. These
regulations were issued by the Department of State and require that
certain key individuals of organizations must sign this Certification.

2\. If you make a false Certification you are subject to U.S. criminal
prosecution under 18 U.S.C. 1001.

## PARTICIPANT CERTIFICATION NARCOTICS OFFENSES AND DRUG TRAFFICKING

1\. I hereby certify that within the last ten years:

a\. I have not been convicted of a violation of, or a conspiracy to
violate, any law or regulation of the United States or any other country
concerning narcotic or psychotropic drugs or other controlled
substances.

b\. I am not and have not been an illicit trafficker in any such drug or
controlled substance.

c\. I am not or have not been a knowing assistor, abettor, conspirator,
or colluder with others in the illicit trafficking in any such drug or
substance.

2\. I understand that USAID may terminate my training if it is
determined that I engaged in the above conduct during the last ten years
or during my USAID training.

Signature:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Name:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Date:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

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

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

Date of Birth:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

NOTICE:

1\. You are required to sign this Certification under the provisions of
22 CFR Part 140,Prohibition on Assistance to Drug Traffickers. These
regulations were issued by the Department of State and require that
certain participants must sign this Certification.

2\. If you make a false Certification you are subject to U.S. criminal
prosecution under 18 U.S.C. 1001.

FORMATS\\GRNTCERT: Rev. 06/16/97 (ADS 303.6, E303.5.6a) When these
Certifications, Assurances, and Other Statements of Recipient are used
for cooperative agreements, the term \"Grant\" means \"Cooperative
Agreement\". The recipient must obtain from each identified subgrantee
and (sub)contractor, and submit with its application/proposal, the
Certification Regarding Debarment, Suspension, Ineligibility and
Voluntary Exclusion \-- Lower Tier Transactions, set forth in Attachment
A hereto. The recipient should reproduce additional copies as necessary.
See ADS Chapter E303.5.6a, 22 CFR 208, Annex1, App A. For USAID, this
clause is entitled \"Debarment, Suspension, Ineligibility, and Voluntary
Exclusion (March 1989)\" and is set forth in the grant standard
provision entitled \"Debarment, Suspension, and Related Matters\" if the
recipient is a U.S. nongovernmental organization, or in the grant
standard provision entitled \"Debarment, Suspension, and Other
Responsibility Matters\" if the recipient is a non-U.S. nongovernmental
organization.

## CERTIFICATION REGARDING MATERIAL SUPPORT AND RESOURCES

As a condition of entering into the referenced agreement,
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ hereby certifies that it has
not provided and will not provide material support or resources to any
individual or entity that it knows, or has reason to know, is an
individual or entity that advocates, plans, sponsors, engages in, or has
engaged in terrorist activity, including but not limited to the
individuals and entities listed in the Annex to Executive Order 13224
and other such individuals and entities that may be later designated by
the United States under any of the following authorities: § 219 of the
Immigration and Nationality Act, as amended (8 U.S.C. § 1189), the
International Emergency Economic Powers Act (50 U.S.C. § 1701 et seq.),
the National Emergencies Act (50 U.S.C. § 1601 et seq.), or §
212(a)(3)(B) of the Immigration and Nationality Act, as amended by the
USA Patriot Act of 2001, Pub. L. 107-56 (October 26, 2001)(8 U.S.C.
§1182). \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ further certifies
that it will not provide material support or resources to any individual
or entity that it knows, or has reason to know, is acting as an agent
for any individual or entity that advocates, plans, sponsors, engages
in, or has engaged in, terrorist activity, or that has been so
designated, or will immediately cease such support if an entity is so
designated after the date of the referenced agreement.

For purposes of this certification, \"material support and resources\"
includes currency or other financial securities, financial services,
lodging, training, safe houses, false documentation or identification,
communications equipment, facilities, weapons, lethal substances,
explosives, personnel, transportation, and other physical assets, except
medicine or religious materials.

For purposes of this certification, \"engage in terrorist activity\"
shall have the same meaning as in section 212(a)(3)(B)(iv) of the
Immigration and Nationality Act, as amended (8 U.S.C. § 1182(a)(3)(B)
(iv)).

For purposes of this certification, \"entity\" means a partnership,
association, corporation, or other organization, group, or subgroup.

This certification is an express term and condition of the agreement and
any violation of it shall be grounds for unilateral termination of the
agreement by USAID prior to the end of its term.

Signature:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Name:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Date:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

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

NOTICE:

If you make a false Certification you are subject to U.S. criminal
prosecution under 18 U.S.C. 1001.

##   {#section-2 .unnumbered}

## PART III -- STANDARD PROVISIONS AND OTHER REQUIREMENTS

**1. implementation of E.O. 13224 - Executive Order on Terrorist
Financing:**

The Recipient is reminded that U.S. Executive Orders and U.S. law
prohibits transactions with, and the provision of resources and support
to, individuals and organizations associated with terrorism. It is the
legal responsibility of the contractor/recipient to ensure compliance
with these Executive Orders and laws. This provision must be included in
all subcontracts/sub-awards issued under this contract/agreement.

**2. REVISED REGULATIONS CONCERNING DEBARMENT AND SUSPENSION AND
DRUG-FREE WORKPLACE APPLICABLE TO ASSISTANCE**

**A. DEBARMENT, SUSPENSION, AND OTHER RESPONSIBILITY MATTERS (JANUARY
2004)**

\(1\) The recipient agrees to notify the Agreement Officer immediately
upon learning that it or any of its principals:

\(a\) Are presently excluded or disqualified from covered transactions
by any Federal department or agency;

\(b\) Have been convicted within the preceding three-years period
preceding this proposal been convicted of or had a civil judgment
rendered against them for commission of fraud or a criminal offense in
connection with obtaining, attempting to obtain, or performing a public
(Federal, State, or local) transaction or contract under a public
transaction; violation of Federal or State antitrust statutes or
commission of embezzlement, theft, forgery, bribery, falsification or
destruction of records, making false statements, tax evasion, receiving
stolen property, making false claims, or obstruction of justice;
commission of any other offense indicating a lack of business integrity
or business honesty that seriously and directly affects your present
responsibility;

\(c\) Are presently indicted for or otherwise criminally or civilly
charged by a governmental entity (Federal, State, or local) with
commission of any of the offenses enumerated in paragraph (1)(b); and

\(d\) Have had one or more public transactions (Federal, State, or
local) terminated for cause or default within the preceding three years.

\(2\) The recipient agrees that, unless authorized by the Agreement
Officer, it will not knowingly enter into any subagreements or contracts
under this grant with a person or entity that is included on the
Excluded Parties List System

(http://epls.arnet.gov). The recipient further agrees to include the
following provision in any subagreements or contracts entered into under
this award:

**B. DEBARMENT, SUSPENSION, INELIGIBILITY, AND VOLUNTARY EXCLUSION
(DECEMBER 2003)**

The recipient/contractor certifies that neither it nor its principals is
presently excluded or disqualified from participation in this
transaction by any Federal department or agency.

\(3\) The policies and procedures applicable to debarment, suspension,
and ineligibility under USAID-financed transactions are set forth in 22
CFR Part 208.

**C. DRUG-FREE WORKPLACE (JANUARY 2004)**

\(1\) The recipient agrees that it will publish a drug-free workplace
statement and provide a copy to each employee who will be engaged in the
performance of any Federal award. The statement must:

\(a\) Tell the employees that the unlawful manufacture, distribution,
dispensing, possession, or use of a controlled substance is prohibited
in its workplace;

\(b\) Specify the actions the recipient will take against employees for
violating that prohibition; and

\(c\) Let each employee know that, as a condition of employment under
any award, he or she

\(1\) Must abide by the terms of the statement, and

> \(2\) Must notify you in writing if he or she is convicted for a
> violation of a criminal drug statute occurring in the workplace, and
> must do so no more than five calendar days after the conviction.

\(2\) The recipient agrees that it will establish an ongoing drug-free
awareness program to inform employees about

\(a\) The dangers of drug abuse in the workplace;

\(b\) Your policy of maintaining a drug-free workplace;

\(c\) Any available drug counseling, rehabilitation and employee
assistance programs; and

\(d\) The penalties that you may impose upon them for drug abuse
violations occurring in the workplace.

\(3\) Without the Agreement Officer's expressed written approval, the
policy statement and program must be in place as soon as possible, no
later than the 30 days after the effective date of this award, or the
completion date of this award, whichever occurs first.

\(4\) The recipient agrees to immediately notify the Agreement Officer
if an employee is convicted of a drug violation in the workplace. The
notification must be in writing, identify the employee's position title,
the number of each award on which the employee worked. The notification
must be sent to the Agreement Officer within ten calendar days after the
recipient learns of the conviction.

\(5\) Within 30 calendar days of learning about an employee's
conviction, the recipient must either

> \(a\) Take appropriate personnel action against the employee, up to
> and including termination, consistent with the requirements of the
> Rehabilitation Act of 1973 (29 USC 794), as amended, or
>
> \(b\) Require the employee to participate satisfactorily in a drug
> abuse assistance or rehabilitation program approved for these purposes
> by a Federal, State or local health, law enforcement, or other
> appropriate agency.

\(6\) The policies and procedures applicable to violations of these
requirements are set forth in 22 CFR Part 210.

**3. Anti-Trafficking Activities \-- Limitation on the Use of Funds;
Restriction on Organizations Promoting, Supporting or Advocating
Prostitution:**

> **ORGANIZATIONS ELIGIBLE FOR ASSISTANCE (JULY 2004)**
>
> The U.S. Government is opposed to prostitution and related activities,
> which are inherently harmful and dehumanizing, and contribute to the
> phenomenon of trafficking in persons. None of the funds made available
> under this agreement may be used to promote, support or advocate the
> legalization or practice of prostitution. Nothing in the preceding
> sentence shall be construed to preclude assistance designed to
> ameliorate the suffering of, or health risks to, victims while they
> are being trafficked or after they are out of the situation that
> resulted from such victims being trafficked. Foreign organizations,
> whether prime or sub-recipients, that receive U.S. Government funds to
> fight trafficking in persons cannot promote, support or advocate the
> legalization or practice of prostitution when they are engaged in
> overseas activities. The preceding sentence shall not apply to
> organizations that provide services to individuals solely after they
> are no longer engaged in activities that resulted from such victims
> being trafficked.
>
> **PROHIBITION ON THE USE OF FEDERAL FUNDS TO PROMOTE, SUPPORT, OR
> ADVOCATE FOR THE LEGALIZATION OR PRACTICE OF PROSTITUTION - ASSISTANCE
> (JULY 2004)**
>
> \(a\) The U.S. Government is opposed to prostitution and related
> activities, which are inherently harmful and dehumanizing, and
> contribute to the phenomenon of trafficking in persons. None of the
> funds made available under this agreement may be used to promote,
> support, or advocate the legalization or practice of prostitution.
> Nothing in the preceding sentence shall be construed to preclude
> assistance designed to ameliorate the suffering of, or health risks
> to, victims while they are being trafficked or after they are out of
> the situation that resulted from such victims being trafficked.
>
> \(b\) \[This subsection (b) only applies to foreign non-governmental
> organizations and PIOs receiving U.S. Government funds to carry out
> programs that target victims of severe forms of trafficking as either
> prime awardees or subawardees.\]
>
> \(1\) For programs that target victims of severe forms of trafficking,
> as a condition of entering into this agreement or subagreement, the
> recipient/subrecipient agrees that in its activities outside of the
> United States and its possessions it does not promote, support, or
> advocate the legalization or practice of prostitution. The preceding
> sentence shall not apply to organizations that provide services to
> individuals solely after they are no longer engaged in activities that
> resulted from such victims being trafficked.

\(2\) The following definitions apply for purposes of this clause:

> **FOREIGN NON-GOVERNMENTAL ORGANIZATION** -- The term "foreign
> non-governmental organization" means an entity that is not organized
> under the laws of any State of the United States, the District of
> Columbia or the Commonwealth of Puerto Rico.
>
> **SEVERE FORMS OF TRAFFICKING IN PERSONS**. \-- The term ''severe
> forms of trafficking in persons'' means---
>
> \(A\) sex trafficking in which a commercial sex act is induced by
> force, fraud, or coercion, or in which the person induced to perform
> such act has not attained 18 years of age; or
>
> \(B\) the recruitment, harboring, transportation, provision, or
> obtaining of a person for labor or services, through the use of force,
> fraud, or coercion for the purpose of subjection to involuntary
> servitude, peonage, debt bondage, or slavery.
>
> \(c\) The recipient shall insert this provision in all sub-agreements
> under this award.
>
> \(d\) This provision includes express terms and conditions of the
> agreement and any violation of it shall be grounds for unilateral
> termination, in whole or in part, of the agreement by USAID prior to
> the end of its term.

**4. CERTIFICATION REGARDING TERRORIST FINANCING IMPLEMENTING E.O.
13224**

Certification

By signing and submitting this application, the prospective recipient
provides the certification set out below:

1\. The Recipient, to the best of its current knowledge, did not
provide, within the previous ten years, and will take all reasonable
steps to ensure that it does not and will not knowingly provide,
material support or resources to any individual or entity that commits,
attempts to commit, advocates, facilitates, or participates in terrorist
acts, or has committed, attempted to commit, facilitated, or
participated in terrorist acts, as that term is defined in paragraph 3.

2\. The following steps may enable the Recipient to comply with its
obligations under paragraph 1:

> a\. Before providing any material support or resources to an
> individual or entity, the Recipient will verify that the individual or
> entity does not (i) appear on the master list of Specially Designated
> Nationals and Blocked Persons,
>
> which list is maintained by the U.S. Treasury\'s Office of Foreign
> Assets Control (OFAC) and is available online at OFAC\'s website :
> http://www.treas.gov/offices/eotffc/ofac/sdn/t11sdn.pdf, or (ii) is
> not included in any supplementary information concerning prohibited
> individuals or entities that may be provided by USAID to the
> Recipient.
>
> b\. Before providing any material support or resources to an
> individual or entity, the Recipient also will verify that the
> individual or entity has not been designated by the United Nations
> Security (UNSC) sanctions committee established under UNSC Resolution
> 1267 (1999) (the \"1267 Committee\") \[individuals and entities linked
> to the Taliban, Usama bin Laden, or the Al Qaida Organization\]. To
> determine whether there has been a published designation of an
> individual or entity by the 1267 Committee, the Recipient should refer
> to the consolidated list available online at the Committee\'s website:
> http://www.un.org/Docs/sc/committees/1267/1267ListEng.htm.
>
> c\. Before providing any material support or resources to an
> individual or entity, the Recipient will consider all information
> about that individual or entity of which it is aware and all public
> information that is reasonably available to it or of which it should
> be aware.
>
> d\. The Recipient also will implement reasonable monitoring and
> oversight procedures to safeguard against assistance being diverted to
> support terrorist activity.

3\. For purposes of this Certification-

> a\. \"Material support and resources\" means currency or monetary
> instruments or financial securities, financial services, lodging,
> training, expert advice or assistance, safehouses, false documentation
> or identification, communications equipment, facilities, weapons,
> lethal substances, explosives, personnel, transportation, and other
> physical assets, except medicine or religious materials.\"

b\. \"Terrorist act\" means-

> \(i\) an act prohibited pursuant to one of the 12 United Nations
> Conventions and Protocols related to terrorism (see UN terrorism
> conventions Internet site:
> http://untreaty.un.org/English/Terrorism.asp); or
>
> \(ii\) an act of premeditated, politically motivated violence
> perpetrated against noncombatant targets by subnational groups or
> clandestine agents; or
>
> \(iii\) any other act intended to cause death or serious bodily injury
> to a civilian, or to any other person not taking an active part in
> hostilities in a situation of armed conflict, when the purpose of such
> act, by its nature or
>
> context, is to intimidate a population, or to compel a government or
> an international organization to do or to abstain from doing any act.

c\. \"Entity\" means a partnership, association, corporation, or other
organization, group or subgroup.

> d\. References in this Certification to the provision of material
> support and resources shall not be deemed to include the furnishing of
> USAID funds or USAID-financed commodities to the ultimate
> beneficiaries of USAID assistance, such as recipients of food, medical
> care, micro-enterprise loans, shelter, etc., unless the Recipient has
> reason to believe that one or more of these beneficiaries commits,
> attempts to commit, advocates, facilitates, or participates in
> terrorist acts, or has committed, attempted to commit, facilitated or
> participated in terrorist acts.
>
> e\. The Recipient\'s obligations under paragraph 1 are not applicable
> to the procurement of goods and/or services by the Recipient that are
> acquired in the ordinary course of business through contract or
> purchase, e.g., utilities, rents, office supplies, gasoline, etc.,
> unless the Recipient has reason to believe that a vendor or supplier
> of such goods and services commits, attempts to commit, advocates,
> facilitates, or participates in terrorist acts, or has committed,
> attempted to commit, facilitated or participated in terrorist acts.

This Certification is an express term and condition of any agreement
issued as a result of this application, and any violation of it shall be
grounds for unilateral termination of the agreement by USAID prior to
the end of its term.

Signed:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

(Typed Name and Title) Date

(Name of Organization)

# 

# 

#  

# 

**5. SUPPORTING USAID'S DISABILITY POLICY IN CONTRACTS, GRANTS AND
COOPERATIVE AGREEMENTS**

**USAID Disability Policy - Assistance (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 recipient not discriminate
> against people with disabilities in the implementation of USAID funded
> programs and that it make every effort to comply with the objectives
> of the USAID Disability Policy in performing the program under this
> grant or cooperative agreement. To that end and to the extent it can
> accomplish this goal within the scope of the program objectives, the
> recipient should demonstrate a comprehensive and consistent approach
> for including men, women and children with disabilities.

**6. IMPLEMENTATION OF THE UNITED STATES LEADERSHIP AGAINST HIV/AIDS,
TUBERCULOSIS AND MALARIA ACT OF 2003 -- ELIGIBILITY LIMITATION ON THE
USE OF FUNDS AND OPPOSITION TO PROSTITUTION AND SEX TRAFFICKING
(ASSISTANCE) (JUNE 2005)**

**ORGANIZATIONS ELIGIBLE FOR ASSISTANCE (ASSISTANCE) (JUNE 2005)**

An organization that is otherwise eligible to receive funds under this
agreement to prevent, treat, or monitor HIV/AIDS shall not be required
to endorse or utilize a multisectoral approach to combatting HIV/AIDS,
or to endorse, utilize, or participate in a prevention method or
treatment program to which the organization has a religious or moral
objection.

**CONDOMS (ASSISTANCE) (JUNE 2005)**

Information provided about the use of condoms as part of projects or
activities that are funded under this agreement shall be medically
accurate and shall include the public health benefits and failure rates
of such use and shall be consistent with USAID's fact sheet entitled,
"USAID: HIV/STI Prevention and Condoms. This fact sheet may be accessed
at:
http://www.usaid.gov/our_work/global_health/aids/TechAreas/prevention/condomfactsheet.html"

**PROHIBITION ON THE PROMOTION OR ADVOCACY OF THE LEGALIZATION OR
PRACTICE OF PROSTITUTION OR SEX TRAFFICKING (ASSISTANCE) (JUNE 2005)**

\(a\) The U.S. Government is opposed to prostitution and related
activities, which are inherently harmful and dehumanizing, and
contribute to the phenomenon of trafficking in persons. None of the
funds made available under this agreement may be used to promote or
advocate the legalization or practice of prostitution or sex
trafficking. Nothing in the preceding sentence shall be construed to
preclude the provision to individuals of palliative care, treatment, or
post-exposure pharmaceutical prophylaxis, and necessary pharmaceuticals
and commodities, including test kits, condoms, and, when proven
effective, microbicides.

\(b\) Except as noted in the second sentence of this paragraph, as a
condition of entering into this agreement or any subagreement, a
non-governmental organization or public international organization
recipient/subrecipient must have a policy explicitly opposing
prostitution and sex trafficking. The following organizations are exempt
from this paragraph: the Global Fund to Fight AIDS, Tuberculosis and
Malaria; the World Health Organization; the International AIDS Vaccine
Initiative; and any United Nations agency.

\(c\) The following definition applies for purposes of this provision:

Sex trafficking means the recruitment, harboring, transportation,
provision, or obtaining of a person for the purpose of a commercial sex
act. 22 U.S.C. 7102(9).

\(d\) The recipient shall insert this provision, which is a standard
provision, in all subagreements.

\(e\) This provision includes express terms and conditions of the
agreement and any violation of it shall be grounds for unilateral
termination of the agreement by USAID prior to the end of its term.

(End of Provision)

**CERTIFICATION**

This certification requirement only applies to the prime recipient.
Before a U.S. or non-U.S. non-governmental organization receives
FY-04-FY-08 HIV/AIDS funds under a grant or cooperative agreement, such
recipient must provide to the Agreement Officer a certification
substantially as follows:

"\[Recipient's name\] certifies compliance as applicable with the
standard provisions entitled "Condoms" and "Prohibition on the Promotion
or Advocacy of the Legalization or Practice of Prostitution or Sex
Trafficking" included in the referenced agreement."

**7. REVISED STANDARD PROVISIONS FOR NON-GOVERNMENTAL ORGANIZATIONS**

> **APPLICABILITY OF 22 CFR PART 226 (MAY 2005)**
>
> \(a\) All provisions of 22 CFR 226 and all Standard Provisions
> attached to this agreement are applicable to the Recipient and to
> Sub-recipients which meet the definition of "Recipient" in Part 226,
> unless a section specifically excludes a sub-recipient from coverage.
> The Recipient shall assure that subrecipients have copies of all the
> attached standard provisions.

(b) For any sub-awards made with Non-US sub-recipients, the Recipient
    shall include the applicable "Standard Provisions for Non-US
    Non-governmental Grantees." Recipients are required to ensure
    compliance with sub-recipient monitoring procedures in accordance
    with OMB Circular A-133.

##### 8. MARKING UNDER ASSISTANCE INSTRUMENTS

**I. BRANDING STRATEGY - ASSISTANCE (December 2005)**

\(a\) **Definitions**

> ***Branding Strategy*** means a strategy that is submitted at the
> specific request of a USAID Agreement Officer by an Apparently
> Successful Applicant after evaluation of an application for USAID
> funding, describing how the program, project, or activity is named and
> positioned, and how it is promoted and communicated to beneficiaries
> and host country citizens. It identifies all donors and explains how
> they will be acknowledged.
>
> ***Apparently Successful Applicant(s)*** means the applicant(s) for
> USAID funding recommended for an award after evaluation, but who has
> not yet been awarded a grant, cooperative agreement or other
> assistance award by the Agreement Officer. The Agreement Officer will
> request that the Apparently Successful Applicants submit a Branding
> Strategy and Marking Plan. Apparently Successful Applicant status
> confers no right and constitutes no USAID commitment to an award.
>
> ***USAID Identity (Identity)*** means the official marking for the
> Agency, comprised of the USAID logo and new brandmark, which clearly
> communicates that our assistance is from the American people. The
> USAID Identity is available on the USAID website and is provided
> without royalty, license, or other fee to recipients of USAID-funded
> grants or cooperative agreements or other assistance awards or
> subawards.

\(b\) **Submission.**

The Apparently Successful Applicant, upon request of the Agreement
Officer, will submit and negotiate a Branding Strategy. The Branding
Strategy will be included in and made a part of the resulting grant or
cooperative agreement. The Branding Strategy will be negotiated within
the time that the Agreement Officer specifies. Failure to submit and
negotiate a Branding Strategy will make the applicant ineligible for
award of a grant or cooperative agreement. The Apparently Successful
Applicant must include all estimated costs associated with branding and
marking USAID programs, such as plaques, stickers, banners, press events
and materials, and the like.

\(c\) **Submission Requirements**

At a minimum, the Apparently Successful Applicant's Branding Strategy
will address the following:

**[(1) Positioning]{.underline}**

*What is the intended name of this program, project, or activity?*

[Guidelines:]{.underline} USAID prefers to have the USAID Identity
included as part of the program or project name, such as a \"title
sponsor,\" if possible and appropriate. It is acceptable to \"co-brand\"
the title with USAID's and the Apparently Successful Applicant's
identities. For example: \"The USAID and \[Apparently Successful
Applicant\] Health Center.\"

If it would be inappropriate or is not possible to \"brand\" the project
this way, such as when rehabilitating a structure that already exists or
if there are multiple donors, please explain and indicate how you intend
to showcase USAID\'s involvement in publicizing the program or project*.
For example: School #123, rehabilitated by USAID and \[Apparently
Successful Applicant\]/ \[other donors\].* Note: the Agency prefers
\"made possible by (or with) the generous support of the American
People\" next to the USAID Identity in acknowledging our contribution,
instead of the phrase \"funded by.\" USAID prefers local language
translations.

*Will a program logo be developed and used consistently to identify this
program? If yes, please attach a copy of the proposed program logo.*

Note: USAID prefers to fund projects that do NOT have a separate logo or
identity that competes with the USAID Identity.

**[(2) Program Communications and Publicity]{.underline}**

*Who are the primary and secondary audiences for this project or
program?*

[Guidelines:]{.underline} Please include direct beneficiaries and any
special target segments or influencers. *For Example: Primary audience:
schoolgirls age 8-12, Secondary audience: teachers and
parents--specifically mothers.*

*What communications or program materials will be used to explain or
market the program to beneficiaries?*

[Guidelines:]{.underline} These include training materials, posters,
pamphlets, Public Service Announcements, billboards, websites, and so
forth.

*What is the main program message(s)?*

[Guidelines:]{.underline} *For example: \"Be tested for HIV-AIDS\" or
\"Have your child inoculated.\"* Please indicate if you also plan to
incorporate USAID's primary message -- this aid is \"from the American
people\" -- into the narrative of program materials. This is optional;
however, marking with the USAID Identity is required.

*Will the recipient announce and promote publicly this program or
project to host country citizens? If yes, what press and promotional
activities are planned?*

[Guidelines:]{.underline} These may include media releases, press
conferences, public events, and so forth.

Note: incorporating the message, "USAID from the American People", and
the USAID Identity is required.

*Please provide any additional ideas about how to increase awareness
that the American people support this project or program.*

[Guidelines:]{.underline} One of our goals is to ensure that both
beneficiaries and host-country citizens know that the aid the Agency is
providing is \"from the American people.\" Please provide any initial
ideas on how to further this goal.

**[(3) Acknowledgements]{.underline}**

*Will there be any direct involvement from a host-country government
ministry? If yes, please indicate which one or ones. Will the recipient
acknowledge the ministry as an additional co-sponsor*?

Note: it is perfectly acceptable and often encouraged for USAID to
\"co-brand\" programs with government ministries.

*Please indicate if there are any other groups whose logo or identity
the recipient will use on program materials and related communications.*

**[Guidelines:]{.underline}** Please indicate if they are also a donor
or why they will be visibly acknowledged, and if they will receive the
same prominence as USAID.

\(d\) **Award Criteria**. The Agreement Officer will review the Branding
Strategy for adequacy, ensuring that it contains the required
information on naming and positioning the USAID-funded program, project,
or activity, and promoting and communicating it to cooperating country
beneficiaries and citizens. The Agreement Officer also will evaluate
this information to ensure that it is consistent with the stated
objectives of the award; with the Apparently Successful Applicant's cost
data submissions; with the Apparently Successful Applicant's project,
activity, or program performance plan; and with the regulatory
requirements set out in 22 CFR 226.91. The Agreement Officer may obtain
advice and from technical experts while performing the evaluation.

**II. MARKING PLAN -- ASSISTANCE (December 2005)**

(a)**Definitions**

***Marking Plan*** means a plan that the Apparently Successful Applicant
submits at the specific request of a USAID Agreement Officer after
evaluation of an application for USAID funding, detailing the public
communications, commodities, and program materials and other items that
will visibly bear the USAID Identity. Recipients may request approval of
Presumptive Exceptions to marking requirements in the Marking Plan.

***Apparently Successful Applicant(s)*** means the applicant(s) for
USAID funding recommended for an award after evaluation, but who has not
yet been awarded a grant, cooperative agreement or other assistance
award by the Agreement Officer. The Agreement Officer will request that
Apparently Successful Applicants submit a Branding Strategy and Marking
Plan. Apparently Successful Applicant status confers no right and
constitutes no USAID commitment to an award, which the Agreement Officer
must still obligate.

***USAID Identity (Identity)*** means the official marking for the
Agency, comprised of the USAID logo and new brandmark, which clearly
communicates that our assistance is from the American people. The USAID
Identity is available on the USAID website and USAID provides it without
royalty, license, or other fee to recipients of USAIDfunded grants,
cooperative agreements, or other assistance awards or subawards.

A ***Presumptive Exception*** exempts the applicant from the general
marking requirements for a *particular* USAID-funded public
communication, commodity, program material or other deliverable, or a
*category* of USAID-funded public communications, commodities, program
materials or other deliverables that would otherwise be required to
visibly bear the USAID Identity. The Presumptive Exceptions are:
Presumptive Exception (i). USAID marking requirements may not apply if
they would compromise the intrinsic independence or neutrality of a
program or materials where independence or neutrality is an inherent
aspect of the program and materials, such as election monitoring or
ballots, and voter information literature; political party support or
public policy advocacy or reform; independent media, such as television
and radio broadcasts, newspaper articles and editorials; and public
service announcements or public opinion polls and surveys (22 C.F.R.
226.91(h)(1)).

[Presumptive Exception (ii)]{.underline}. USAID marking requirements may
not apply if they would diminish the credibility of audits, reports,
analyses, studies, or policy recommendations whose data or findings must
be seen as independent (22 C.F.R. 226.91(h)(2)).

[Presumptive Exception (iii)]{.underline}. USAID marking requirements
may not apply if they would undercut host-country government "ownership"
of constitutions, laws, regulations, policies, studies, assessments,
reports, publications, surveys or audits, public service announcements,
or other communications better positioned as "by" or "from" a
cooperating country ministry or government official (22 C.F.R.
226.91(h)(3)).

[Presumptive Exception (iv)]{.underline}. USAID marking requirements may
not apply if they would impair the functionality of an item, such as
sterilized equipment or spare parts (22 C.F.R. 226.91(h)(4)).

[Presumptive Exception (v)]{.underline}. USAID marking requirements may
not apply if they would incur substantial costs or be impractical, such
as items too small or otherwise unsuited for individual marking, such as
food in bulk (22 C.F.R. 226.91(h)(5)).

[Presumptive Exception (vi)]{.underline}. USAID marking requirements may
not apply if they would local cultural or social norms, or be considered
inappropriate on such items as condoms, toilets, bed pans, or similar
commodities (22 C.F.R. 226.91(h)(6)).

[Presumptive Exception (vii)]{.underline}. USAID marking requirements
may not apply if they would conflict with international law (22 C.F.R.
226.91(h)(7)).

\(b\) **Submission.** The Apparently Successful Applicant, upon the
request of the Agreement Officer, will submit and negotiate a Marking
Plan that addresses the details of the public communications,
commodities, program materials that will visibly bear the USAID
Identity. The marking plan will be customized for the particular
program, project, or activity under the resultant grant or cooperative
agreement. The plan will be included in and made a part of the resulting
grant or cooperative agreement. USAID and the Apparently Successful
Applicant will negotiate the Marking Plan within the time specified by
the Agreement Officer. Failure to submit and negotiate a Marking Plan
will make the applicant ineligible for award of a grant or cooperative
agreement. The applicant must include an estimate of all costs
associated with branding and marking USAID programs, such as plaques,
labels, banners, press events, promotional materials, and so forth in
the budget portion of its application. These costs are subject to
revision and negotiation with the Agreement Officer upon submission of
the Marking Plan and will be incorporated into the Total Estimated
Amount of the grant, cooperative agreement or other assistance
instrument.

\(c\) **Submission Requirements**.

The Marking Plan will include the following:

> \(1\) A description of the public communications, commodities, and
> program materials that the recipient will be produced as a part of the
> grant or cooperative agreement and which will visibly bear the USAID
> Identity. These include:
>
> \(i\) program, project, or activity sites funded by USAID, including
> visible infrastructure projects or other programs, projects, or
> activities that are physical in nature;
>
> \(ii\) 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;
>
> \(iii\) events financed by USAID, such as training courses,
> conferences, seminars, exhibitions, fairs, workshops, press
> conferences, and other public activities; and (iv) all commodities
> financed by USAID, including commodities or equipment provided under
> humanitarian assistance or disaster relief programs, and all other
> equipment, supplies and other materials funded by USAID, and their
> export packaging.
>
> \(2\) A table specifying:

\(i\) the program deliverables that the recipient will mark with the
USAID Identity,

> \(ii\) the type of marking and what materials the applicant will be
> used to mark the program deliverables with the USAID Identity, and
>
> \(iii\) when in the performance period the applicant will mark the
> program deliverables, and where the applicant will place the marking.
>
> \(3\) A table specifying:
>
> \(i\) what program deliverables will not be marked with the USAID
> Identity, and (ii) the rationale for not marking these program
> deliverables.

\(d\) **Presumptive Exceptions.**

> \(1\) The Apparently Successful Applicant may request a Presumptive
> Exception as part of the overall Marking Plan submission. To request a
> Presumptive Exception, the Apparently Successful Applicant must
> identify which Presumptive Exception applies, and state why, in light
> of the Apparently Successful Applicant's technical proposal and in the
> context of the program description or program statement in the USAID
> Request For Application or Annual Program Statement, marking
> requirements should not be required.
>
> \(2\) Specific guidelines for addressing each Presumptive Exception
> are:
>
> \(i\) For Presumptive Exception (i), identify the USAID Strategic
> Objective, Interim Result, or program goal furthered by an appearance
> of neutrality, or state why the program, project, activity, commodity,
> or communication is 'intrinsically neutral.' Identify, by category or
> deliverable item, examples of program materials funded under the award
> for which you are seeking exception 1.
>
> \(ii\) For Presumptive Exception (ii), state what data, studies, or
> other deliverables will be produced under the USAID funded award, and
> explain why the data, studies, or deliverables must be seen as
> credible.
>
> \(iii\) For Presumptive Exception (iii), identify the item or media
> product produced under the USAID funded award, and explain why each
> item or product, or category of item and product, is better positioned
> as an item or product produced by the cooperating country government.
>
> \(iv\) For Presumptive Exception (iv), identify the item or commodity
> to be marked, or categories of items or commodities, and explain how
> marking would impair the item's or commodity's functionality.

\(v\) For Presumptive Exception (v), explain why marking would not be
cost-beneficial or practical.

> \(vi\) For Presumptive Exception (vi), identify the relevant cultural
> or social norm, and explain why marking would violate that norm or
> otherwise be inappropriate.
>
> \(vii\) For Presumptive Exception (vii), identify the applicable
> international law violated by marking.
>
> \(3\) The Agreement Officer will review the request for adequacy and
> reasonableness.
>
> In consultation with the Cognizant Technical Officer and other agency
> personnel as necessary, the Agreement Officer will approve or
> disapprove the requested Presumptive Exception. Approved exceptions
> will be made part of the approved Marking Plan, and will apply for the
> term of the award, unless provided otherwise.

\(e\) **Award Criteria**: The Agreement Officer will review the Marking
Plan for adequacy and reasonableness, ensuring that it contains
sufficient detail and information concerning public communications,
commodities, and program materials that will visibly bear the USAID
Identity. The Agreement Officer will evaluate the plan to ensure that it
is consistent with the stated objectives of the award; with the
applicant's cost data submissions; with the applicant's actual project,
activity, or program performance plan; and with the regulatory
requirements of 22 C.F.R.226.91. The Agreement Officer will approve or
disapprove any requested Presumptive Exceptions (see paragraph (d)) on
the basis of adequacy and reasonableness. The Agreement Officer may
obtain advice and recommendations from technical experts while
performing the evaluation.

**III. MARKING UNDER USAID-FUNDED ASSISTANCE INSTRUMENTS (December
2005)**

**(a) Definitions**

> ***Commodities*** mean any material, article, supply, goods or
> equipment, excluding recipient offices, vehicles, and non-deliverable
> items for recipient's internal use, in administration of the USAID
> funded grant, cooperative agreement, or other agreement or
> sub-agreement.
>
> ***Principal Officer*** means the most senior officer in a USAID
> Operating Unit in the field, e.g., USAID Mission Director or USAID
> Representative. For global programs managed from Washington but
> executed across many countries, such as disaster relief and assistance
> to internally displaced persons, humanitarian emergencies or immediate
> post conflict and political crisis response, the Cognizant Principal
> Officer may be an Office Director, for example, the Directors of
> USAID/W/Office of Foreign Disaster Assistance and Office of Transition
> Initiatives. For non-presence countries, the Cognizant Principal
> Officer is the Senior USAID officer in a regional USAID Operating Unit
> responsible for the non-presence country, or in the absence of such a
> responsible operating unit, the Principal U.S Diplomatic Officer in
> the non-presence country exercising delegated authority from USAID.
>
> ***Programs*** mean an organized set of activities and allocation of
> resources directed toward a common purpose, objective, or goal
> undertaken or proposed by an organization to carry out the
> responsibilities assigned to it.
>
> ***Projects*** include all the marginal costs of inputs (including the
> proposed investment) technically required to produce a discrete
> marketable output or a desired result (for example, services from a
> fully functional water/sewage treatment facility).
>
> ***Public communications*** are documents and messages intended for
> distribution to audiences external to the recipient's organization.
> They include, but are not limited to, correspondence, publications,
> studies, reports, audio visual productions, and other informational
> products; applications, forms, press and promotional materials used in
> connection with USAID funded programs, projects or activities,
> including signage and plaques; Web sites/Internet activities; and
> events such as training courses, conferences, seminars, press
> conferences and so forth.
>
> ***Sub-recipient*** means any person or government (including
> cooperating country government) department, agency, establishment, or
> for profit or nonprofit organization that receives a USAID sub-award,
> as defined in 22 C.F.R. 226.2.
>
> ***Technical Assistance*** means the provision of funds, goods,
> services, or other foreign assistance, such as loan guarantees or food
> for work, to developing countries and other USAID recipients, and
> through such recipients to sub-recipients, in direct support of a
> development objective -- as opposed to the internal management of the
> foreign assistance program.
>
> ***USAID Identity (Identity)*** means the official marking for the
> United States Agency for International Development (USAID), comprised
> of the USAID logo or seal and new brandmark, with the tagline that
> clearly communicates that our assistance is "from the American
> people." The USAID Identity is available on the USAID website at
> www.usaid.gov/branding and USAID provides it without royalty, license,
> or other fee to recipients of USAID-funded grants, or cooperative
> agreements, or other assistance awards.

**(b) Marking of Program Deliverables**

> \(1\) All recipients must mark appropriately all overseas programs,
> projects, activities, public communications, and commodities partially
> or fully funded by a USAID grant or cooperative agreement or other
> assistance award or sub-award with the USAID Identity, of a size and
> prominence equivalent to or greater than the recipient's, other
> donor's, or any other third party's identity or logo.
>
> \(2\) The Recipient will mark all program, project, or activity sites
> funded by USAID, including visible infrastructure projects (for
> example, roads, bridges, buildings) or other programs, projects, or
> activities that are physical in nature (for example, agriculture,
> forestry, water management) with the USAID Identity. The Recipient
> should erect temporary signs or plaques early in the construction or
> implementation phase. When construction or implementation is complete,
> the Recipient must install a permanent, durable sign, plaque or other
> marking.
>
> \(3\) The Recipient 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.
>
> \(4\) The Recipient 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, recipients should display additional materials, such as
> signs and banners, with the USAID Identity. In circumstances in which
> the USAID Identity cannot be displayed visually, the recipient is
> encouraged otherwise to acknowledge USAID and the American people's
> support.
>
> \(5\) The Recipient will mark all commodities financed by USAID,
> including commodities or equipment provided under humanitarian
> assistance or disaster relief programs, and all other equipment,
> supplies, and other materials funded by USAID, and their export
> packaging with the USAID Identity.
>
> \(6\) The Agreement Officer may require the USAID Identity to be
> larger and more prominent if it is the majority donor, or to require
> that a cooperating country government's identity be larger and more
> prominent if circumstances warrant, and as appropriate depending on
> the audience, program goals, and materials produced.
>
> \(7\) The Agreement Officer may require marking with the USAID
> Identity in the event that the recipient does not choose to mark with
> its own identity or logo.
>
> \(8\) The Agreement Officer may require a pre-production review of
> USAID-funded public communications and program materials for
> compliance with the approved Marking Plan.
>
> \(9\) Sub-recipients. To ensure that the marking requirements "flow
> down\'\' to sub-recipients of sub-awards, recipients of USAID funded
> grants and cooperative agreements or other assistance awards will
> include the USAID-approved marking provision in any USAID funded
> sub-award, as follows: *"As a condition of receipt of this sub-award,
> marking with the USAID Identity of a size and prominence equivalent to
> or greater than the recipient's, sub-recipient's, other donor's or
> third party's is required. In the event the recipient chooses not to
> require marking with its own identity or logo by the sub-recipient,
> USAID may, at its discretion, require marking by the sub-recipient
> with the USAID Identity."*
>
> \(10\) Any 'public communications', as defined in 22 C.F.R. 226.2,
> funded by USAID, in which the content has not been approved by USAID,
> must contain the following disclaimer: *"This
> study/report/audio/visual/other information/media product (specify) is
> made possible by the generous support of the American people through
> the United States Agency for International Development (USAID). The
> contents are the responsibility of \[insert recipient name\] and do
> not necessarily reflect the views of USAID or the United States
> Government."*
>
> \(11\) The recipient will provide the Cognizant Technical Officer
> (CTO) or other USAID personnel designated in the grant or cooperative
> agreement with two copies of all program and communications materials
> produced under the award. In addition, the recipient will submit one
> electronic or one hard copy of all final documents to USAID's
> Development Experience Clearinghouse.

**(c) Implementation of marking requirements.**

> \(1\) When the grant or cooperative agreement contains an approved
> Marking Plan, the recipient will implement the requirements of this
> provision following the approved Marking Plan.
>
> \(2\) When the grant or cooperative agreement does not contain an
> approved Marking Plan, the recipient will propose and submit a plan
> for implementing the requirements of this provision within **45 days**
> after the effective date of this provision. The plan will include:
>
> \(i\) A description of the program deliverables specified in paragraph
> (b) of this provision that the recipient will produce as a part of the
> grant or cooperative agreement and which will visibly bear the USAID
> Identity.
>
> \(ii\) the type of marking and what materials the applicant uses to
> mark the program deliverables with the USAID Identity,
>
> \(iii\) when in the performance period the applicant will mark the
> program deliverables, and where the applicant will place the marking,
>
> \(3\) The recipient may request program deliverables not be marked
> with the USAID Identity by identifying the program deliverables and
> providing a rationale for not marking these program deliverables.
> Program deliverables may be exempted from USAID marking requirements
> when:
>
> \(i\) USAID marking requirements would compromise the intrinsic
> independence or neutrality of a program or materials where
> independence or neutrality is an inherent aspect of the program and
> materials;
>
> \(ii\) USAID marking requirements would diminish the credibility of
> audits, reports, analyses, studies, or policy recommendations whose
> data or findings must be seen as independent;
>
> \(iii\) USAID marking requirements would undercut host-country
> government "ownership" of constitutions, laws, regulations, policies,
> studies, assessments, reports, publications, surveys or audits, public
> service announcements, or other communications better positioned as
> "by" or "from" a cooperating country ministry or government official;

\(iv\) USAID marking requirements would impair the functionality of an
item;

\(v\) USAID marking requirements would incur substantial costs or be
impractical;

> \(vi\) USAID marking requirements would offend local cultural or
> social norms, or be considered inappropriate;

\(vii\) USAID marking requirements would conflict with international
law.

> \(4\) The proposed plan for implementing the requirements of this
> provision, including any proposed exemptions, will be negotiated
> within the time specified by the Agreement Officer after receipt of
> the proposed plan. Failure to negotiate an approved plan with the time
> specified by the Agreement Officer may be considered as noncompliance
> with the requirements is provision.

**(d) Waivers.**

> \(1\) The recipient may request a waiver of the Marking Plan or of the
> marking requirements of this provision, in whole or in part, for each
> program, project, activity, public communication or commodity, or, in
> exceptional circumstances, for a region or country, when USAID
> required marking would pose compelling political, safety, or security
> concerns, or when marking would have an adverse impact in the
> cooperating country. The recipient will submit the request through the
> Cognizant Technical Officer. The Principal Officer is responsible for
> approvals or disapprovals of waiver requests.
>
> \(2\) The request will describe the compelling political, safety,
> security concerns, or adverse impact that require a waiver, detail the
> circumstances and rationale for the waiver, detail the specific
> requirements to be waived, the specific portion of the Marking Plan to
> be waived, or specific marking to be waived, and include a description
> of how program materials will be marked (if at all) if the USAID
> Identity is removed. The request should also provide a rationale for
> any use of recipient's own identity/logo or that of a third party on
> materials that will be subject to the waiver.
>
> \(3\) Approved waivers are not limited in duration but are subject to
> Principal Officer review at any time, due to changed circumstances.
>
> \(4\) Approved waivers "flow down" to recipients of sub-awards unless
> specified otherwise. The waiver may also include the removal of USAID
> markings already affixed, if circumstances warrant.
>
> \(5\) Determinations regarding waiver requests are subject to appeal
> to the Principal Officer's Cognizant Assistant Administrator. The
> recipient may appeal by submitting a written request to reconsider the
> Principal Officer's waiver determination to the Cognizant Assistant
> Administrator.

**(e) Non-retroactivity.** The requirements of this provision do apply
to any materials, events, or commodities produced prior to January 2,
2006. The requirements of this provision do not apply to program,
project, or activity sites funded by USAID, including visible
infrastructure projects (For example, roads, bridges, buildings) or
other programs, projects, or activities that are physical in nature (for
example, agriculture, forestry, water management) where the construction
and implementation of these are complete prior to January 2, 2006 and
the period of the grant does not extend past January 2, 2006.