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REQUEST FOR PROPOSALS

RFP FOMILENIO QCBS 2007-005


GOVERNMENT OF EL SALVADOR FONDO DEL MILENIO (FOMILENIO) MCA- EL SALVADOR

Project Name:

Human Development Project

Title of Consulting Services:

EDUCATION AND TRAINING TECHNICAL ASSISTANCE

Funded by

THE UNITED STATES OF AMERICA


Through

THE MILLENNIUM CHALLENGE CORPORATION

San Salvador, El Salvador, October, 2007

Section 1. Letter of Invitation


San Salvador, El Salvador, October 2, 2007

REQUEST FOR PROPOSALS FOR CONSULTANCY SERVICES This request for proposals (RFP) follows the General Procurement Notice that appeared in dgMarket online of May 8, 2007, UN Development Business online of May 14, 2007, local newspaper El Diario de Hoy of May 18, 2007, and was posted on the FOMILENIO website at http://www.mca.gob.sv/noticias.php?seccion=45&subseccion=&ini=10 The Government of El Salvador (GoES) received a US$ 460.9 million grant from the Government of the United States of America through the Millennium Challenge Corporation (MCC), a US Government corporation. Subject to the terms and conditions of related agreements, and the availability of funds, the GoES intends to use a portion of the proceeds of this Compact to fund procurement of professional services to assist the GoES to manage the program in a transparent and fiscally sound manner. In this procurement proceeding, the GoES is represented by Fondo del Milenio (FOMILENIO), the Millennium Challenge Account (MCA) Entity, which was established under the laws of El Salvador. A Firm will be selected under Quality and Cost-Based Selection (QCBS) procedures described in this RFP, in accordance with the MCC Program Procurement Guidelines of May 22, 2007, which is found at: www.mcc.gov/procurement/partnercountries/programguidelines.php. Please note that while the procedures are similar to those set out in the World Bank Guidelines there are several very significant differences. This invitation seeks technical and financial proposals from interested Consulting Firms, for the execution of the Education and Training component of the Human Development Project, for a 12--month Base Period contract (Phase I) payable in U.S. dollars, with the possibility of an extension for two additional 18-month Option Periods (Phase II and Phase III), at the sole discretion of FOMILENIO. At the end of the Base Period, and subject to the submission and acceptance of a Final Report and recommendations of the Consultant, the first Option Period (Phase II) may be exercised. Please refer to the Terms of Reference (TOR) in Section 5 of this RFP for more information on the scope of the services, expected deliverables, and other important aspects of the Base and Option periods. For the Financial Proposal, Consultants are required to propose a fixed price for the Base Period (Phase I), where the payments will be based on specific deliverables expected of the Consultant to meet the project objectives. For the Option Periods (Phase II and III), the Consultants are required to propose monthly prices based on an all-inclusive rate (all expenses such as fee, travel, per diem, hotel, taxes, etc., including.) per skill set (for local or international hire) as

required in the FIN forms found in Section 4 of this RFP. The monthly rate applied to the estimated person-months (see Form FIN-2) would determine the proposed price for the Option Periods. The Consultant could propose different unit monthly rates for different Option Periods. The combined Base and Option Period prices for full four (4) years would constitute the overall Financial Proposal for evaluation purposes. At the beginning of each Option Period (Phase II and Phase III), the person-months for the period will be negotiated with the Consultant based on the unit monthly rates proposed for the period as above. This would determine the value of the contract for each specific Option Period. Any unanticipated additional staffing requirement will be identified during negotiations of the Option Period and a contract amendment, if necessary, would be executed. The RFP includes the following documents: 1. Section 1 - Letter of Invitation 2. Section 2 - Instructions to Consultants (including Data Sheet) 3. Section 3 - Technical Proposal - Standard Forms 4. Section 4 - Financial Proposal - Standard Forms 5. Section 5 - Terms of Reference 6. Section 6 - Standard Form of Contract The Proposals must be submitted, original in English plus three (3) copies, and one original in Spanish plus three (3) copies, including a copy on compact disk (CD) in both languages, to the address below by November 12, 2007 up to 3:30 p.m. (El Salvador local time). Proposals received after this time and date shall not be considered and will be returned unopened. Consultants should be aware that distance and customs formalities may require longer than expected delivery time. Attention: Jos Tito Sigenza Director of Procurement FOMILENIO Boulevard del Hipdromo # 442, Col. San Benito San Salvador, Republic of El Salvador Tel: (503) 2524-1031 Fax: (503) 2243-2089 Electronic mail address: tito.siguenza@fomilenio.gob.sv Yours sincerely, _________________________ Juan Jos Llort Executive Director

FOMILENIO

Section 2. Instructions to Consultants (ITC)


Definitions a. Consultant means any entity or person that may provide or provides the Services to FOMILENIO under the Contract. b. Contract means the Agreement signed by the Parties and all the attached documents such as the General Conditions of Contract (GCC), the Special Conditions of Contract (SCC), and the Appendices. c. Data Sheet means such part of the Instructions to Consultants used to reflect specific assignment conditions. d. Day means calendar day. e. Fondo del Milenio (FOMILENIO) is the Millennium Challenge Account (MCA) Entity, the principal with which the Selected Consultant signs the Contract for the Services. f. Government means the government of the Republic of El Salvador. g. Instructions to Consultants (Section 2 of the RFP) means the document which provides the Consultants with all information needed to prepare their Proposals. h. LOI (Section 1 of the RFP) means the Letter of Invitation being sent by FOMILENIO to the Consultants. i. MCC means the Millennium Challenge Corporation. j. Personnel means professionals and support staff provided by the Consultant or by any Sub-Consultant and assigned to perform the Services or any part thereof; Foreign Personnel means such professionals and support staff who at the time of being so provided had their domicile outside El Salvador; Local Personnel means such professionals and support staff who at the time of being so provided had their domicile inside El Salvador. k. Proposal means the Technical Proposal and the Financial Proposal. l. RFP means the Request for Proposal prepared by FOMILENIO for

the selection of Consultants. m. Services means the work to be performed by the Consultant pursuant to the Contract. n. Sub-Consultant means any person or entity with which the Consultant subcontracts any part of the Services. o. Terms of Reference (TOR) means the document included in the RFP as Section 5, which explains the objectives, scope of work, activities, tasks to be performed, respective responsibilities of FOMILENIO, and the Consultant, and expected results and deliverables of the assignment. 1. Introduction 1.1 FOMILENIO will select a Consulting Firm/Organization (the Consultant) in accordance with the method of selection specified in the Data Sheet. Consultants are invited to submit a Technical Proposal and a Financial Proposal, as specified in the Data Sheet, for consulting services required for the assignment named in the Data Sheet. The Proposal will be the basis for contract negotiations and ultimately for a signed Contract with the selected Consultant. Consultants should familiarize themselves with local conditions and take them into account in preparing their Proposals. To obtain first-hand information on the assignment and local conditions, Consultants are encouraged to attend a site visit and attend a pre-proposal conference, if offered in the Data Sheet. For this purpose, Consultants should contact FOMILENIO at the address provided in the Data Sheet for relevant arrangements. Attending the pre-proposal conference and/or site visit is optional and consultants attendance shall not be taken into account for the purpose of evaluation. FOMILENIO will provide in a timely manner, at no cost to the Consultants the inputs and facilities specified in the Data Sheet. Consultants shall bear all costs associated with the preparation and submission of their proposals and contract negotiation. FOMILENIO is not bound to accept any proposal, and reserves the right to annul the selection process at any time prior to Contract award, without thereby incurring any liability to the Consultants.

1.2

1.3

1.4 1.5

Conflict of Interest

1.6

FOMILENIO requires that Consultants provide professional, objective, and impartial advice and at all times hold FOMILENIOs interests paramount, strictly avoid conflicts with other assignments or their own corporate interests and act without any consideration for future work. 1.6.1 Without limitation on the generality of the foregoing, Consultants, and any of their affiliates, shall be considered to have a conflict of interest and shall not be recruited, under any of the circumstances set forth below: (i) A firm that has been engaged by FOMILENIO to provide goods, works or services other than consulting services for a project, and any of its affiliates, shall be disqualified from providing consulting services related to those goods, works or services. Conversely, a firm hired to provide consulting services for the preparation or implementation of a project, and any of its affiliates, shall be disqualified from subsequently providing goods or works or services other than consulting services resulting from or directly related to the firms consulting services for such preparation or implementation. For the purpose of this paragraph, services other than consulting services are defined as those leading to a measurable physical output, including but not limited to surveys, exploratory drilling, aerial photography, and satellite imagery. A Consultant (including its Personnel and SubConsultants) or any of its affiliates shall not be hired for any assignment that, by its nature, may be in conflict with another assignment of the Consultant to be executed for FOMILENIO or any other client of the Consultant. A Consultant (including its Personnel and SubConsultants) that has a business or family relationship with a member of FOMILENIOs staff, Procurement or Fiscal Agents hired (as defined in the Compact) by FOMILENIO who is directly or indirectly involved in any part of (i) the preparation of the Terms of Reference of the assignment, (ii) the selection process for such

Conflicting activities

Conflicting assignments

(ii)

Conflicting relationships

(iii)

assignment, or (iii) supervision of the Contract, may not be awarded a Contract, unless the conflict stemming from this relationship has been resolved in a manner acceptable to MCC throughout the selection process and the execution of the Contract. 1.6.2 Consultants have an obligation to disclose any situation of actual or potential conflict that impacts their capacity to serve the best interest of FOMILENIO, or that may reasonably be perceived as having this effect. Failure to disclose said situations may lead to the disqualification of the Consultant or the termination of its Contract. No agency or current employees of the Government shall work as Consultants under their own ministries, departments or agencies. Recruiting former government employees of the Government to work for their former ministries, departments or agencies is acceptable provided no conflict of interest exists. When the Consultant nominates any current Government employee as Personnel in their Technical Proposal, such Personnel must have written certification from the Government or employer confirming that they are on leave without pay from their official position and allowed to work full-time outside of their previous official position. Such certification shall be provided to FOMILENIO by the Consultant as part of his technical proposal. If a Consultant could derive a competitive advantage from having provided consulting services related to the assignment in question, FOMILENIO shall make available to all Consultants upon request together with this RFP all information that would in that respect give such Consultant any competitive advantage over competing Consultants.

1.6.3

Unfair Advantage

1.6.4

Fraud and Corruption

1.7

Consultants participating in projects funded by MCC shall adhere to the highest ethical standard, both during the selection process and throughout the execution of a contract. In pursuance of this requirement, FOMILENIO: (a) defines, for the purpose of this paragraph, the terms set forth below as follows:

(i)

corrupt practice means the offering, receiving, providing, accepting or soliciting, directly or indirectly, of any thing of value to influence the action of a public official in the selection process or execution of an agreement; or the making of any payment to any third party, in connection with or in furtherance of this Contract, in violation of the United States Foreign Corrupt Practices Act of 1977, as amended (15 USC 78a et seq) ("FCPA") or any other actions taken that otherwise would be in violation of the FCPA if the FCPA were applicable; fraudulent practice means a misrepresentation or omission of facts in order to influence a selection process or the execution of a contract to the detriment of FOMILENIO or the GoES, and includes collusive practice among those parties submitting Proposals (prior to or after Proposal submission) designed to establish Proposal prices at artificial noncompetitive levels and to deprive FOMILENIO of the benefits of free and open competition; collusive practices means a scheme or arrangement between two or more consultants with or without the knowledge of FOMILENIO, designed to establish prices at artificial, noncompetitive levels; coercive practices means harming or threatening to harm, directly or indirectly, persons or their property to influence their participation in a procurement process, or affect the execution of a contract; and prohibited practices means any action that violates the provisions relating to Anti-Corruption Legislation, Anti-Money Laundering Legislation and terrorist financing statutes or other restrictions set forth in the General Conditions of Contract of this RFP. obstructive practice is deliberately destroying, falsifying, altering or

(ii)

(iii)

(iv)

(v)

(vi) (aa)

concealing of evidence material to the investigation or making false statements to investigators in order to impede materially an investigation by MCC or the MCA Entity into allegations of a corrupt, fraudulent, coercive, collusive, prohibited or obstructive practice; and threatening, harassing, or intimidating any party to prevent it from disclosing its knowledge of matters relevant to the investigation or from pursuing the investigation, and (bb) acts intended to impede materially the exercise of the inspection and audit rights of MCC provided under the Compact;

(b)

will reject a proposal for award if it determines that the Consultant recommended for award has, directly or through an agent, engaged in corrupt, fraudulent, collusive, coercive or prohibited practices in competing for the contract in question; will sanction a Consultant, including declaring such Consultant ineligible, either indefinitely or for a stated period of time, to be awarded an MCC-funded contract if at any time it determines that the Consultant has, directly or through an agent, engaged in corrupt, fraudulent, collusive, coercive or prohibited practices in competing for, or in executing, such a contract; and will have the right to require that a provision be included requiring the selected Consultant to permit FOMILENIO, the GoES and MCC or any designee of MCC to inspect their accounts and records relating to the submission of a Proposal or performance of contract and to have them audited by auditors appointed by FOMILENIO with the approval of MCC.

(c)

(d)

In addition, MCC will cancel the portion of the Compact funding allocated to the contract if it determines at any time that representatives of a beneficiary of the Compact were engaged in corrupt, fraudulent, collusive, coercive, prohibited or obstructive practices during the selection process or the execution of the contract, without the beneficiary having taken timely and appropriate action satisfactory to MCC to remedy the situation. MCC also may invoke any of the rights identified for FOMILENIO in paragraphs (a) through (d) above.

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1.8

Consultants, their Sub-Consultants, and their associates shall not be under a declaration of ineligibility for corrupt and fraudulent practices in accordance with the above paragraph 1.7. Furthermore, the Consultants shall be aware of the provisions on fraud and corruption stated in the specific clauses in the General Conditions of Contract. Consultants shall furnish information on commissions and gratuities, if any, paid or to be paid to agents relating to this proposal and during execution of the assignment if the Consultant is awarded the Contract, as requested in the Financial Proposal submission form (Section 4). Goods supplied and Services provided under the Contract may originate from any country except if: (i) as a matter of law or official regulation, El Salvador or the United States prohibits commercial relations with that country; or by an act of compliance with a decision of the United Nations Security Council taken under Chapter VII of the Charter of the United Nations, El Salvador prohibits any imports of goods from that country or any payments to persons or entities in that country. Any person or entity that has been prohibited from participation in procurements financed by the World Bank or debarred or suspended from participation in procurements funded by the United States Federal Government or otherwise prohibited by applicable United States law or Executive Order or United States policies, including under any then existing anti-terrorist policies or as may be specified in the Compact, shall be excluded from procurements awarded under the Compact. Without limiting the foregoing, this would remove from eligibility any Consultant, Sub-consultant or Personnel of any party or Sub-consultant who or which are nationals of any country that is subject to sanction or restriction by United States law or policy. As of the date hereof, these countries include Cuba, Iran, North Korea, Sudan and Syria.

1.9

Origin of Goods and Consulting Services

1.10

(ii)

(iii)

Only one Proposal

1.11

Consultants may only submit one proposal as a lead Consultant. If a lead Consultant submits or participates in more than one

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proposal, all such proposals shall be disqualified. However, this does not limit the participation as a Sub-Consultant, including individual experts, in more than one proposal. All Proposals shall include explicit written consent of all parties, including individual experts stating that they willingly associate with the firm. This consent could be demonstrated by a letter on the letterhead of the sub-consultant and/or by the signatures of the individuals on their resume. If this consent is not ascertained prior to submitting the Proposal, the Proposal may be rejected. Proposal Validity 1.12 The Data Sheet indicates the length of time that Consultants Proposals must remain valid after the submission date. During this period, Consultants shall maintain the availability of its proposed staff nominated in the Proposal. FOMILENIO will make its best effort to complete negotiations within this period. Should the need arise, FOMILENIO may request Consultants to extend the validity period of their Proposals. Consultants that agree to such extension shall confirm that they maintain the availability of the Professional staff nominated in the Proposal, or in their confirmation of extension of validity of the Proposal, Consultants may submit new staff in replacement, who would be considered in the final evaluation for contract award. Consultants who do not agree have the right to refuse to extend the validity of their Proposals. Expired proposals cannot be considered for award. In case a Consultant intends to associate with other Consultants and/or individual expert(s), such other Consultants and/or individual expert(s) shall be subject to the eligibility criteria set forth in the Data Sheet. Consultants may request a clarification of the RFP documents up to the number of days indicated in the Data Sheet before the proposal submission date. Any request for clarification must be sent in writing or by email or fax to FOMILENIO at the address indicated in the Data Sheet. FOMILENIO will respond in writing or by email or fax and will send written copies of the response (including an explanation of the query, but without identifying the source of inquiry) to all Consultants by the date specified in the Data Sheet. Should FOMILENIO deem it necessary to amend the RFP as a result of a clarification, it shall do so following the procedure under paragraph 2.2 below. At any time before the submission of Proposals, FOMILENIO may amend the RFP by issuing an addendum in writing, by mail,

Eligibility of Sub- 1.13 Consultants

2. Clarification and 2.1 Amendment of RFP Documents

2.2

12

email or fax. The addendum shall be sent to all Consultants and will be binding on them. Consultants shall acknowledge receipt of all amendments in writing, by mail, email or fax. To give Consultants reasonable time in which to take an amendment into account in their Proposals, FOMILENIO may, if the amendment is substantial, extend the deadline for the submission of Proposals. 3. Preparation of Proposals 3.1 The Proposal as well as all related correspondence exchanged by the Consultants and FOMILENIO shall be written in the language(s) specified in the Data Sheet. In preparing their Proposal, Consultants are expected to examine in detail the documents comprising the RFP. Material deficiencies in providing the information requested may result in the rejection of a Proposal. While preparing the Technical Proposal, Consultants must give particular attention to the following: (a) If a Consultant considers that it may enhance its expertise for the assignment by associating with other Consultants in a joint venture or sub-consultancy, it may associate with those other Consultant(s) if so indicated in the Data Sheet. In case of association with other Consultant(s), the Consultant shall act as association leader and retain sole liability. In case of a joint venture, all partners shall be jointly and severally liable and shall indicate who will act as the leader of the joint venture. For fixed-budget-based assignments, the available budget is given in the Data Sheet, and the Financial Proposal shall not exceed this budget. Alternative professional staff shall not be proposed, and only one Curriculum Vitae (CV) may be submitted for each position.

3.2

Association Between Consultants

3.3

(b)

(c)

3.4.a Technical Proposal Format and Content

The Technical Proposal shall provide all the information using the attached Standard Forms (Section 3), all complementary information shall be submitted as requested in the Data sheet. Failure to provide such information may result in the rejection of the Consultants Proposal. If so specified in the Data Sheet, the Technical Proposal shall be

3.4.b

13

restricted to a page limit. A page is considered to be one printed side of A4 or letter size paper, text font type Times New Roman size 12pt, margins on all sides not less than 2cm. Proposals not conforming to this page limit may be rejected at the discretion of FOMILENIO. 3.5 The Technical Proposal shall not include any financial information that may disclose the financial proposal in any form. A Technical Proposal containing such financial information shall be rejected. The Financial Proposal shall be prepared using the attached Standard Forms (Section 4). The activities and items described in the Technical Proposal shall be assumed to be included in the price offered in the Financial Proposal. Consultants may only express the price of their services in the currencies specified in the Data Sheet. The Consultant, the Sub-Consultants, and their respective Personnel may be subject to certain local taxes (including income taxes, profits taxes or other taxes, duties, charges or fees on business) on amounts payable by FOMILENIO hereunder. The Consultant, Sub-Consultant and their respective Personnel shall pay all such local taxes and such other taxes, duties, fees, and other impositions levied under the Applicable Law (as defined in the Contract), the amount of which is deemed to have been included in the amount of the Financial Proposal (see Data Sheet). The Consultants are advised that the tax provisions under MCCfunded contracts may differ from other donor-funded contracts; therefore, the Consultants are encouraged to closely review the tax exemptions and liability provisions set forth in Section 2.3 (e) of the Compact between the Government of El Salvador and MCC, available in English at http://www.mca.gob.sv./administrador/archivos/0/archivo145.pdf and in Spanish at http://www.mca.gob.sv./administrador/archivos/0/archivo146.pdf . The form of contract to be used in connection with this RFP includes references to such tax provisions. The Consultants are required to ascertain available tax exemptions and determine all tax liabilities, and include these in their fixed-price Financial Proposal. There shall be no adjustments permitted for tax

Financial Proposals

3.6

3.7 Taxes 3.8

3.9

3.10

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exemptions/liabilities after the opening of Proposals. 3.11 Consultants should be aware that their Proposals should be limited to the requirements of the TOR. Any suggestions for modifications to the TOR should be noted in Form TECH 3, which could be discussed during Negotiations at the discretion of FOMILENIO. The original proposal (Technical Proposal and, Financial Proposal) shall contain no interlineations or overwriting, except as necessary to correct errors made by the Consultants themselves. The person who signed the proposal must initial such corrections. Submission letters for both Technical and Financial Proposals should be in the formats given in Section 3 and Section 4, respectively. An authorized representative of the Consultant shall initial all pages of the original Technical and Financial Proposals. The authorization shall accompany the Proposal in the form of a written power of attorney or in any other form demonstrating that the representative has been duly authorized to sign (including but not limited to a Decision of the Board, the incorporation of the company). The signed Technical and Financial Proposals shall be marked Original. All required copies shall be made from this original. The Technical and Financial Proposals shall be marked ORIGINAL or COPY as appropriate. The Technical Proposal shall be sent to the addresses and in the number of copies indicated in the Data Sheet. If there are discrepancies between the original and the copies of the Technical Proposal, the original governs. The original and all copies of the Technical Proposal shall be placed in a sealed envelope clearly marked TECHNICAL PROPOSAL followed by the RFP Number indicated on the Cover Page of this RFP and the name of the assignment. Similarly, the original Financial Proposal shall be placed in a separate sealed envelope clearly marked FINANCIAL PROPOSAL followed by the RFP Number indicated on the Cover Page of the RFP and the name of the assignment and with a warning DO NOT OPEN WITH THE TECHNICAL PROPOSAL. The sealed envelope containing the Technical Proposal and the sealed envelope containing Financial Proposal shall be placed into another outer envelope and sealed. This outer envelope shall bear the submission address, RFP number and name of the assignment,

4. Submission, Receipt, and Opening of Proposals

4.1

4.2

4.3

4.4

15

and be clearly marked DO NOT OPEN, EXCEPT DURING THE PROPOSAL OPENING SESSION. FOMILENIO shall not be responsible for misplacement, loss or premature opening if the outer envelope is not sealed and/or marked as stipulated. Failure to correctly seal and mark the envelope may lead to rejection of the Proposal. If the Financial Proposal is not submitted in a separate sealed envelope duly marked as indicated above, this will constitute grounds for rejecting the Proposal. 4.5 The Proposal must be sent to the address/addresses indicated in the Data Sheet and received by FOMILENIO no later than the time and the date indicated in the Data Sheet, or any extension to this date. Any proposal received by FOMILENIO after the deadline for submission shall be returned unopened. FOMILENIO shall publicly open the Technical Proposals on the date and time specified in the Data Sheet. The envelopes with the Financial Proposal shall remain sealed and securely stored. From the time the Proposals are opened to the time the Contract is awarded, the Consultants should not contact FOMILENIO on any matter related to its Technical and/or Financial Proposal. Any effort by Consultants to influence FOMILENIO in the examination, evaluation, ranking of Proposals, and recommendation for award of Contract may result in the rejection of the Consultants Proposal. Proposals shall be evaluated by an Evaluation Committee nominated by FOMILENIO. The names of the Committee members shall remain confidential at all times. Evaluators of Technical Proposals shall not have access to the Financial Proposals until the technical evaluation is concluded. The Evaluation Committee shall evaluate the Technical Proposals on the basis of their compliance with the evaluation criteria specified in the Data Sheet. Each acceptable Proposal will be given a technical score (St). A Proposal shall be rejected at this stage if it does not respond to the required format and its components as defined in the Data Sheet, or if it fails to achieve the minimum technical score indicated in the Data Sheet. At the discretion of the Evaluation Committee, requests for clarification of proposals may be sent to the Consultants in writing by FOMILENIO. Such clarifications shall only concern minor elements of a Proposal and in no way can allow for substantial changes to the initial Proposal. Answers shall be provided only in

4.6

5. Evaluation of proposals

5.1

5.2

Evaluation of Technical Proposals

5.3

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writing and within the deadline specified in the request. In the event that none of the Consultants achieve the minimum total technical score for the required Services, FOMILENIO reserves the right to select the Consultant with the highest technical score and negotiate the contract. 5.4 Public Opening and Evaluation of Financial Proposals Following the ranking of technical proposals, in cases when selection is based on quality only (QBS), the first ranked Consultant shall be invited to negotiate its proposal and the Contract in accordance with the instructions given below for Negotiations. In case of QCBS, FBS and LCS, the procedure specified below in 5.5 shall be followed. After the technical evaluation is completed, FOMILENIO shall inform the Consultants who have submitted proposals of the technical scores obtained by their Technical Proposals, and shall notify those Consultants whose Proposals did not meet the minimum qualifying mark, or were considered non-responsive to the RFP and TOR, that their Financial Proposals will be returned unopened after completing the selection process. FOMILENIO shall simultaneously notify, in writing, Consultants that have secured the minimum qualifying mark of the date, time and location for the opening of the Financial Proposals. The opening date will allow Consultants sufficient time to make arrangements for attending the opening ceremony. Consultants attendance at the opening of Financial Proposals is optional. Financial Proposals shall be opened publicly. The name of the Consultants and the technical scores of the Consultants shall be read aloud. The Financial Proposal of the Consultants who met the minimum qualifying mark will then be inspected to confirm that they have remained sealed and unopened. These Financial Proposals shall be then opened, and the total prices read aloud and recorded. The evaluation committee will correct any computational errors. When correcting computational errors, in case of discrepancy between a partial amount and the total amount, or between word and figures, in each case, the former will prevail. In addition to the above corrections, all activities and items described in the Technical Proposal shall be assumed to be included in the prices offered in the Financial Proposal (see Data Sheet). In case an activity or line item is quantified in the Financial Proposal differently from the Technical Proposal, (i) if the Time-Based form of contract has been included in this RFP, the Evaluation

5.5

5.6

5.7.a

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Committee shall correct the quantification indicated in the Financial Proposal so as to make it consistent with that indicated in the Technical Proposal, apply the relevant unit price included in the Financial Proposal to the corrected quantity and correct the total Proposal price, (ii) if the Fixed-Price form of contract has been included in this RFP, no corrections are applied to the Financial Proposal in this respect. 5.7.b At any time during the evaluation process in all cases of QBS, QCBS, FBS, and LCS, FOMILENIO shall reserve the right to conduct a verification of market-reasonableness of the prices offered, and a negative determination (either unreasonably high or unreasonably low) could be a reason for rejection of the Proposal at the discretion of FOMILENIO. The Consultant shall not be permitted to revise its Proposal after this determination. In case of QCBS, the lowest evaluated Financial Proposal (Fm) will be given the maximum financial score (Sf) of 100 points. The financial scores (Sf) of the other Financial Proposals will be computed as indicated in the Data Sheet. Proposals will be ranked according to their combined technical (St) and financial (Sf) scores using the weights (T = the weight given to the Technical Proposal; P = the weight given to the Financial Proposal; T + P = 1) indicated in the Data Sheet: S = St x T% + Sf x P%. The firm achieving the highest combined technical and financial score will be invited for negotiations. Prior to inviting the best evaluated firm for negotiations, FOMILENIO may, at its own discretion, conduct a postqualification review. The criteria for post-qualification may include, among others, verification of the information provided in the Technical and Financial Proposals, review of the Consultants financial statements, and check on the references provided in the proposal and other clients of the Consultant whether or not listed in the Proposal. A negative determination in the post-qualification could lead to the rejection of the Proposal, and FOMILENIO may, at its discretion move to invite the nextranked Consultant. In the case of Fixed-Budget Selection, FOMILENIO will select the firm that submitted the highest ranked Technical Proposal within the budget. Proposals that exceed the indicated budget will be rejected. In the case of the Least-Cost Selection, FOMILENIO will select the lowest price proposal among those that passed the minimum technical score. In both cases the evaluated proposal price shall be considered, and the selected

5.7.c

Post-qualification 5.8 Review

5.9

18

firm shall be invited for negotiations. 6. Negotiations 6.1 Negotiations will be held at the address indicated in the Data Sheet. The date and time shall be communicated to the invited Consultant following completion of the Financial Evaluation process. The invited Consultant will, as a pre-requisite for attendance at the negotiations, confirm availability of all proposed staff. Failure in satisfying such requirement may result in FOMILENIO proceeding to negotiate with the next-ranked Consultant. Representatives conducting negotiations on behalf of the Consultant must have written authority to negotiate and conclude a Contract. Negotiations will include a discussion of the Technical Proposal, the proposed technical approach and methodology, work plan, and organization and staffing, and any suggestions made by the Consultant to improve the Terms of Reference. FOMILENIO and the Consultant will finalize the Terms of Reference, staffing schedule, work schedule, logistics, and reporting. These documents will then be incorporated in the Contract as Description of Services. Special attention will be paid to clearly defining the inputs and facilities required from FOMILENIO to ensure satisfactory implementation of the assignment. FOMILENIO shall prepare minutes of negotiations which will be signed by FOMILENIO and the Consultant. Pursuant to clause 3.8, 3.9, and 3.10 above, Financial Negotiations shall not include discussions of and/or adjustments for the Consultants tax liabilities. Further, unless there are exceptional reasons, the financial negotiations will involve neither the remuneration rates for staff nor other proposed unit rates. Having selected the Consultant on the basis of, among other things, an evaluation of proposed professional staff, FOMILENIO expects to negotiate a Contract on the basis of the professional staff named in the Proposal. FOMILENIO will not consider substitutions during contract negotiations unless both parties agree that undue delay in the selection process makes such substitution unavoidable or for reasons such as death or medical incapacity. Any proposed substitute shall have equivalent or better qualifications and experience than the original candidate and be submitted by the Consultant within the period of time specified in the letter of invitation to negotiate. If this is not the case and if it is established that professional staff

Technical negotiations

6.2

Financial negotiations

6.3

Availability of Professional staff/experts

6.4

19

were offered in the Proposal without confirming their availability, the Consultant may be disqualified. Conclusion of the 6.5 negotiations Negotiations will conclude with a review of the draft Contract. To complete negotiations, FOMILENIO and the Consultant will initial the agreed Contract. If negotiations fail, FOMILENIO will invite the Consultant whose Proposal received the second highest score to negotiate a Contract, and will not be liable to the Consultant for any expenses incurred. After completing negotiations, and after allowing for the Bid Challenge Process specified below in Clause 9 if in case, FOMILENIO shall award the Contract to the selected Consultant, ensure publicity of the Contract award and promptly notify all Consultants who have submitted proposals. After Contract signature, FOMILENIO shall return the unopened Financial Proposals to the unsuccessful Consultants. The Consultant is expected to commence the assignment on the date and at the location specified in the Data Sheet. Information relating to evaluation of Proposals and recommendations concerning awards shall not be disclosed to any person not officially concerned with the evaluation process, until the publication of the award of Contract. Any bid challenges will be conducted under the Bid Challenge System that complies with the terms as set forth in the MCC Program Procurement Guidelines and approved by MCC, as specified in the Data Sheet.

7. Award of Contract

7.1

7.2

8.Confidentiality

8.1

9. Complaints

9.1

Section 2 Instructions to Consultants Data Sheet

20

Instructions to Consultants
DATA SHEET Paragraph Reference to ITC 1.1 and 4.4 1.2

Instructions Method of selection: Quality and Cost-Based Selection (QCBS) Financial Proposal to be submitted together with Technical Proposal: Yes Name of the assignment is: Education and Training Technical Assistance

1.3

A Pre-Proposal Conference will be held: Yes Date: October 19, 2007 at 10:00 am (El Salvador local time). Venue: FOMILENIO Offices: Boulevard del Hipdromo # 442 Col. San Benito San Salvador, Republic of El Salvador Tel: (503) 2524-1000 Fax: (503) 2524-1004 Contact Person: Cecilia E. Lagos Melara UACI Chief Tel: (503) 2524-1031 Fax: (503) 2243-2089 Electronic mail address: uaci@fomilenio.gob.sv A site visit shall be organized: NO

1.4 1.12 1.13

Inputs and facilities to be provided by FOMILENIO: if so specified in Appendix F of the enclosed Form of Contract. Proposals must remain valid 90 days after the proposal submission date. Eligibility Criteria for Sub-Consultants are as defined in ITC paragraph 1.10(i), (ii) and (iii).

Section 2 Instructions to Consultants Data Sheet

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2.1

Clarifications may be requested not later than 15 days before the proposal submission date. FOMILENIO shall respond within five working days of the receipt of an inquiry, by facsimile or electronic mail to such requests and will send written copies of the response (including an explanation of the query but without identifying the source of inquiry) to all invited Consultants. The address for requesting clarifications is: Attention: Jos Tito Sigenza Director of Procurement FOMILENIO Boulevard del Hipdromo # 442 Col. San Benito San Salvador, Republic of El Salvador Tel: (503) 2524-1030 Fax: (503) 2243-2089 Electronic mail address: tito.siguenza@fomilenio.gob.sv

3.1

Proposals, as well as related correspondence, shall be submitted in English and Spanish. Consultants must ensure that the proposals in English and Spanish are equivalent and that all effort is made to ensure that the Spanish translation is of the highest possible quality. Whenever two languages are used for any purpose, the English language shall govern.

3.3 (a) 3.4

Consultants may associate with other Consultants in a joint venture or subconsultancy. (a) The following complementary information is required: 1. Copy of documents of constitution / incorporation, including legal status (for example, incorporated or public enterprise, or private partnership etc), original and actual place of registration and principal place of business. 2. Copy of power of attorney demonstrating that the signatory of the proposals has been duly authorized to sign as Legal Representative of the Consultant firm that submits the proposals.

Section 2 Instructions to Consultants Data Sheet

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3. In case of consortium/joint-venture, original document of Commitment or Intention Letter of Consultants firms. In case a consortium is selected the associated Consultants firms shall deliver the agreement of partnership properly notarized in the country of the Consultant. Each member of the consortium/joint venture shall deliver the complementary information required. (b) 3.7 The Technical Forms (Section 3) shall conform to the page limit provided on each of the technical forms.

Consultant shall express all prices in US Dollars. As an indication, the estimated contract value of the 12-month Base Period Phase I is $1.1 million.

3.8

All foreign firms shall be required to register with the local tax authorities and receive a tax ID number before they can receive any payment from FOMILENIO. Foreign Consultants are required to pay the Value Added Tax (IVA) but not other taxes. The following is the IVA rate structure currently in place in El Salvador (13% on goods and services imported or purchased from the local market). Given the responsibilities to pay IVA the bidder should calculate total consultancy fees factored at 1.13 (cost + IVA). FOMILENIO will pay IVA on the consulting services provided by the Consultant. For this, the Consultant will be required to submit two invoices with each payment request: one for their fee as agreed to during contract negotiations and one for the IVA on such services. EXEMPTIONS According to the exemptions provided by the Compact, any profit or distribution of funds shall be exempt of all taxes as mentioned in Section 2.3 (e) of the Compact. This exemption includes: A. Income tax and other taxes and duties on profits from MCC Funding for businesses, organizations and entities that receive the MCC Funds, among them: (i) taxes on purchase, property, lease, disposition or any other use of real estate or personal property, (ii) taxes on investment or deposits required and hard currency control in the Republic of El Salvador, (iii) municipal, state or any other tax, duty, charges or fees or any kind; and, B. Personal income or property taxes of all persons that are not citizens nor permanent residents of the Republic of El Salvador, including: (i) income tax; (ii) social security payments, (iii) all taxes on the personal property belonging to these individual, to the extent that such income or property are

Section 2 Instructions to Consultants Data Sheet

23

attributable to MCC Funding, C. Import duties, customs fee, import and export taxes, use and re-export of assets, service or personal effects and belongings, including automobiles belonging to a person for use of the Program or for the personal use of individuals who are not citizens nor permanent residents of the Republic of El Salvador, and who are in the Republic of El Salvador for the purpose of implementing the Program, including whichever amount based on the value of said imported goods. EXEMPTION MECHANISM A. As pertains to income taxes of the Republic of El Salvador, all payments or transfers made by FOMILENIO with MCC funding will not be considered income, profit, income or fiscal income for the receiver of said payments or transfers (excluded rent) and, thus, they are excluded from the concept of income and payment of income tax calculated monthly and from the program of retention of taxes on applicable income to service and goods providers; B. The Government will simultaneously pay the IVA on any invoice that must be paid, total or partially by FOMILENIO. The procedure to use for simultaneous payment of the above mentioned tax will be as follows: (i) When creating of the Purchase Order or Contract, FOMILENIO must make sure that the amount to be paid for goods or services is detailed separately from that to be paid for IVA on the goods or services. (ii) Additionally, in the same documents, it will be necessary to establish that the supplier will present two invoices upon delivery of the good or service: once covering the amount charged for the good or service and another one for the IVA. (iii)FOMILENIO will record two budgetary commitments and will issue two payment checks, one covering the amount charged for the good or service and another one for the payment of the IVA. C. The Ministry of Treasury, through the General Direction Of Internal Taxes and the General Direction of Customs, depending on the corresponding tax, and in adherence to section 2.3(e) of the Compact, will issue official exemption letters or certificates, to prove that the beneficiaries of the Compact Funds and Assets are exempt from taxes. The letters or certificates will be valid for one calendar year, after which they will have to be renewed by the holders through FOMILENIO, as applicable, with a report by FOMILENIO regarding their continued participation in the project. Request for renewal can be submitted as of November of each year before the expiration of the validity of the certificate or letter to be renewed.

Section 2 Instructions to Consultants Data Sheet

24

D. To register the exemption to the Income Tax and the exoneration of formal obligation, the Government of El Salvador, through the General Direction of Internal Taxes of the Ministry of Treasury will issue the respective certifications to the good and services providers to carry out the corresponding tax obligations. 4.3 The Consultant must submit 1 original and 3 copies of the Technical Proposal, and an electronic copy in the form of a CD Rom in Microsoft Word and/or Excel, as appropriate. The CD for the Technical Proposal should be sealed in the same envelope as the Technical Proposal. The Consultant shall also submit 1 original and 1 copy of the Financial Proposal, and an electronic copy in the form of a CD Rom in Microsoft Word and/or Excel, as appropriate. The CD for the Financial Proposal should be sealed in the same envelope as the Financial Proposal. In any case of discrepancy between the Original and printed or electronic copies, the Original printed shall govern. 4.5 The Proposal submission address is: FOMILENIO Attention: Jos Tito Sigenza Director of Procurement FOMILENIO Boulevard del Hipdromo # 442 Col. San Benito San Salvador, Republic of El Salvador Tel: (503) 2524-1030 Fax: (503) 2243-2089 Electronic mail address: tito.siguenza@fomilenio.gob.sv Proposals must be submitted no later than: November 12, 2007 up to 3:30 pm (El Salvador local time). The following RFP number MUST be written on all outer envelopes and on the Proposals: RFP FOMILENIO QCBS 2007-005. 4.6 5.3 The date and time for public opening of the Technical Proposals is: November 12, 2007 at 4:00 pm (El Salvador local time). Criteria, sub-criteria and point system for evaluation of Technical Proposals are as follows: I. Experience of the Firm: 25 points

Section 2 Instructions to Consultants Data Sheet

25

A. Relevant experience in base-line design, and curriculum design and implementation of Education and Training Programs in Latin America and/or other Developing Countries. B. Experience in the execution, monitoring and evaluation of social development projects in Latin America and/or other Developing Countries. II. Technical Approach and Methodology: 40 points A. Feasibility of the approach to meeting the general and specific objectives expressed in the TOR leading to the successful completion of each phase of the assignment. B. Quality and feasibility of the approach and methodology for executing all the activities related to each one of the phases of the assignment. III. Qualifications of Key Personnel: 35 points A. The Coordinator of Formal Education, the Coordinator of Non-Formal Education and the Support Specialist are considered Key Personnel for all phases of the assignment. Key Personnel will be evaluated against the criteria set forth in the TOR. B. Other team members and Support staff for Phase I will be evaluated on the extent to which the proposed number of positions and respective job descriptions reflect a good understanding of the services required. C. The evaluation of the Key Personnel and other team members shall be determined considering the following three sub-criteria: 1. 2. 3. General qualifications Adequacy for the assignment Experience in the region 30% of points 50% of points 20% of points

D. Other team members and Support staff for Phase II and Phase III, will be evaluated prior to the execution of each Option Period. The minimum total technical score St required to pass is: 80 Points.

Section 2 Instructions to Consultants Data Sheet

26

5.7 a

The financial proposal shall be evaluated as follows (example). A. Fixed-price proposal for the Base Period: B. Option Period #1 (Phase II): B1. Coordinator Formal Education (per month fully loaded) x 18 personmonths. B2. Coordinator Non-Formal Education (per month fully loaded) x 18 personmonths. B3. Support Specialist (per month fully loaded) x 18 person-months. B4. Monitoring & Evaluation Specialist (per month fully loaded) x 18 personmonths. B5. Curriculum Program Evaluation Specialist (per month fully loaded) x 9 person-months. B6. Technical Trainers (mid-level) (per month fully loaded) x 30 personmonths. B7. Technical Trainers (per month fully loaded) x 48 person-months. B8. Trainer of Trainers (per month fully loaded) x 6 person-months. B9. Communications Specialist (per month fully loaded) x 3 person-months. B10. Support Staff (monthly equivalent for all support positions) x 18 calendar months C. Option Period #2 (Phase III): C1. Coordinator Formal Education (per month fully loaded) x 18 personmonths. C2. Coordinator Non-Formal Education (per month fully loaded) x 18 personmonths. C3. Support Specialist (per month fully loaded) x 18 person-months. C4. Monitoring & Evaluation Specialist (per month fully loaded) x 18 personmonths. C5. Technical Trainers (mid-level) (per month fully loaded) x 30 personmonths. C6. Technical Trainers (per month fully loaded) x 24 person-months. C7. Support Staff (monthly equivalent for all support positions) x 18 calendar months F=A+B+C The proposals shall be evaluated on total value F, however, the initial contract shall only be for A. Each Option Period Contract shall be negotiated at the time of option execution when the requirement for other personnel and support staff is clearer, but will be based on the monthly unit rates as proposed above

Section 2 Instructions to Consultants Data Sheet

27

5.7 b

The formula for determining the financial scores is the following: Sf = 100 x Fm/F, where Sf is the financial score, Fm the lowest price and F the price of the proposal under consideration The weights given to the Technical (T) and Financial (F) Proposals are: T= 0.8 and F= 0.2

6.1

The address for negotiations is: FOMILENIO San Salvador, El Salvador. The exact address shall be provided to the winning consultant in the Invitation to Negotiations. Expected date for commencement of consulting services: Estimated Month: February, 2008. Location: El Salvador. The Bid Challenge Process: Any bid challenges will be conducted under the Bid Challenge System that complies with the terms as set forth in the MCC Program Procurement Guidelines and approved by MCC. A copy of the approved procedure can be downloaded from the page: www.fomilenio.gob.sv The bid challenge shall be addressed to: FOMILENIO Attention: Juan Jose Llort Executive Director, FOMILENIO Boulevard del Hipdromo # 442 Col. San Benito San Salvador, Republic of El Salvador Tel: (503) 2524-1000 E-mail: juanjose.llort@fomilenio.gob.sv

7.2

9.1

Section 3 Technical Proposal Standard Forms

28

Section 3. Technical Proposal - Standard Forms


[Comments in brackets [ ] provide guidance to the Consultants for the preparation of their Technical Proposals; they should not appear on the Technical Proposals..]

TECH-1 TECH-2

Technical Proposal Submission Form Consultants Organization, Experience, and References A Consultants Organization B Consultants Experience C Consultants References Comments or Suggestions on the Terms of Reference and on Counterpart Staff and Facilities to be provided by FOMILENIO A On the Terms of Reference B On the Counterpart Staff and Facilities Description of the Approach, Methodology and Work Plan for Performing the Assignment Team Composition and Task Assignments Curriculum Vitae (CV) for Proposed Professional Staff Staff Schedule Work Schedule

TECH-3

TECH-4

TECH-5 TECH-6 TECH-7 TECH-8

Section 3 Technical Proposal Standard Forms

29

FORM TECH-1

TECHNICAL PROPOSAL SUBMISSION FORM


[insert location, Date]

To:

FOMILENIO

Jos Tito Sigenza Director of Procurement FOMILENIO Boulevard del Hipdromo # 442 Col. San Benito San Salvador, Republic of El Salvador Tel: (503) 2524-1030 Fax: (503) 2243-2089 Dear Sir: We, the undersigned, offer to provide the consulting services for [insert] in accordance with your Request for Proposal dated [Insert Date] and our Proposal. We are hereby submitting our Proposal, which includes this Technical Proposal, and a Financial Proposal sealed in separate envelopes with one outer envelope. We are submitting our Proposal in association with: [Insert a list with full name and address of each associated Consultant or delete in case no association is foreseen] We hereby declare that all the information and statements made in this Proposal are true and accept that any misrepresentation contained in it may lead to our disqualification. If negotiations are held during the period of validity of the Proposal, i.e., before the validity date indicated in the Data Sheet, we undertake to negotiate on the basis of the proposed staff. Our Proposal is binding upon us and subject to the modifications resulting from Contract negotiations. We undertake, if our Proposal is accepted, to initiate the consulting services related to the assignment not later than the date indicated in the Data Sheet. We understand you are not bound to accept any Proposal you receive. We remain, Yours sincerely, Authorized Signature [In full and initials]: Name and Title of Signatory: Name of Firm: Address:

Section 3 Technical Proposal Standard Forms

30

FORM TECH-2

CONSULTANTS ORGANIZATION AND EXPERIENCE A - Consultants Organization

[Provide here a brief (maximum two pages) description of the background and organization of your firm/entity and each associate/joint venture partner for this assignment.]

B - Consultants Experience
[Using the format below, provide information on minimum of three (3) and a maximum of five (5) assignments for which your team (firm or an associate for this assignment) was legally contracted over the last five (5) years either individually as a corporate entity or as one of the major companies within an association for carrying out consulting services similar to the ones requested under this assignment.]

Assignment name:

Approx. value of the contract (in current US$):

Country: Location within country: Name of Client: (references to be provided per Form TECH 2 (C) below) Address:

Duration of assignment (months):

Total No of staff-months of the assignment:

Approx. value of the services provided by your firm under the contract (in current US$): No of professional staff-months provided by associated Consultants: Name of senior professional staff of your firm involved and functions performed (indicate most significant profiles such as Project Director/Coordinator, Team Leader):

Start date (month/year): Completion date (month/year): Name of associated Consultants, if any:

Narrative description of Project:

Description of actual services provided by your staff within the assignment:

Firms Name:

Section 3 Technical Proposal Standard Forms

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C - Consultants References
The Consultant shall provide at least three (3) references for projects of similar scope and magnitude performed by the consultant within the past five (5) years. Provide the following information for each reference: a. b. Name and Business Address of Contracting Officer or Other Official who can verify performance of the project cited for reference Current Phone Number and e-mail address for above point of contact.

Note: It is the Consultants responsibility to ensure that its references would respond within a maximum of five working days when contacted by FOMILENIO. If this response is not received within this timeframe, the Consultant may loose scores in the technical evaluation of its proposal.

Section 3 Technical Proposal Standard Forms

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FORM TECH-3

COMMENTS AND SUGGESTIONS ON THE TERMS OF REFERENCE AND ON COUNTERPART STAFF AND FACILITIES TO BE PROVIDED BY FOMILENIO

[These comments shall not be used for evaluation purpose, but may be discussed during negotiations. FOMILENIO is not bound to accept any modifications proposed. If the proposed modifications/suggestions would require changes in the offered price, it should be noted as such, without revealing the price of the change. Disclosure of any prices in this Form shall be reason for rejection of the Proposal.]

A - On the Terms of Reference


[Present and justify here any modifications or improvement to the Terms of Reference you are proposing to improve performance in carrying out the assignment.

B - On Counterpart Staff and Facilities


[Comment here on counterpart staff and facilities to be provided by FOMILENIO according to the Data Sheet, including: administrative support, office space, local transportation, equipment, data, etc.] Use maximum five (5) pages.

Section 3 Technical Proposal Standard Forms

33

FORM TECH-4

DESCRIPTION OF APPROACH, METHODOLOGY AND WORK PLAN FOR PERFORMING THE ASSIGNMENT

[Technical approach, methodology and work plan are key components of the Technical Proposal. You are suggested to present them divided into the following three chapters.]: a) Technical Approach and Methodology, b) Work Plan, and c) Organization and Staffing, In this section, Consultants are encouraged to limit their response directly to the TOR. Comments on the TOR, if any, should be provided in Form TECH 3. In this chapter you should explain your a) Technical Approach and Methodology. understanding of the objectives of the assignment, approach to the services, methodology for carrying out the activities including transfer of knowledge and obtaining the expected output, and the degree of detail of such output. You should highlight the problems being addressed and their importance, and explain the technical approach you would adopt to address them. You should also explain the methodologies you propose to adopt and highlight the compatibility of those methodologies with the proposed approach. b) Work Plan. In this chapter you should propose the main activities of the assignment, their content and duration, phasing and interrelations, milestones (including interim approvals by FOMILENIO), and delivery dates of the reports. The proposed work plan should be consistent with the technical approach and methodology, showing understanding of the TOR and ability to translate them into a feasible working plan. A list of the final documents, including reports, drawings, and tables to be delivered as final output, should be included here. The work plan should be consistent with the Work Schedule of Form TECH-8. d) Organization and Staffing. In this chapter you should propose the structure and composition of your team. You should list the main disciplines of the assignment, the key expert responsible, and proposed technical and support staff.]
Use maximum 50 pages.

Section 3 Technical Proposal Standard Forms

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FORM TECH-5

TEAM COMPOSITION AND TASK ASSIGNMENTS

Key positions given below are mandatory; absence of a CV for a key position below may lead to the rejection of the Proposal. Consultants are not permitted to propose one individual for more than one position, except for when the services are expected to be executed in phases and the consultant intends to use the same individual on more than one phase of the assignment. Curriculum Vitae are required for the following positions in the format given in form TECH 6. CVs should be signed by the relevant individual, confirming availability for the assignment. Position 1. Coordinator Formal Education 2. Coordinator NonFormal Education 3. Support Specialist Name Area of Expertise Task Assigned

Section 3 Technical Proposal Standard Forms

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FORM TECH-6 STAFF

CURRICULUM VITAE (CV)

FOR

PROPOSED PROFESSIONAL

1. Proposed Position [only one candidate shall be nominated for each position]: 2. Name of Firm [Insert name of firm proposing the staff]:

3. Name of Staff [Insert full name]: 4. Date of Birth: Nationality:

5. Education [Indicate college/university and other specialized education of staff member, giving names of institutions, degrees obtained, and dates of obtainment]:

6. Membership of Professional Associations:

7. Other Training [Indicate significant training since degrees under 5 - Education were obtained]:

8. Countries of Work Experience: [List countries where staff has worked in the last ten years]:

9. Languages [For each language indicate proficiency: good, fair, or poor in speaking, reading, and writing]:

10. Employment Record [Starting with present position, list in reverse order relevant employment related to
the expected assignments held by staff member since graduation, giving for each employment (see format here below): dates of employment, name of employing organization, positions held.]:

From [Year]: Employer: Positions held:

To [Year]:

Section 3 Technical Proposal Standard Forms

36

11. Detailed Tasks Assigned

12. Work Undertaken that Best Illustrates Capability to Handle the Tasks Assigned
[Among the assignments in which the staff has been involved, indicate the following information for those assignments that best illustrate staff capability to handle the tasks listed under point 11.] For Task : [to be completed as appropriate]

[List all tasks to be performed under this assignment] Task 1 Task 2 Task 3 [to be completed as appropriate]

Name of assignment or project: Year: Location: Client: Main project features: Positions held: Activities performed:
For Task : [to be completed as appropriate]

Name of assignment or project: Year: Location: Client: Main project features: Positions held: Activities performed:

13. Certification: I, the undersigned, certify that to the best of my knowledge and belief, this CV correctly describes myself, my qualifications, and my experience. I understand that any willful misstatement described herein may lead to my disqualification or dismissal, if engaged. I further confirm that I am available and interested to participate in this assignment as proposed. Date:
[Signature of staff member or authorized representative of the staff] Day/Month/Year

Full name of authorized representative:

Section 3 Technical Proposal Standard Forms

37

FORM TECH-7

STAFF SCHEDULE
2

N Foreign 1 2 3

Name of Staff

Staff input (in the form of a bar chart) 1


[Home] [Field]

Total staff-month input 10 11 12 n Home Field


3

Total

n Subtotal Local 1 2
[Home] [Field]

n Subtotal Total 1 2 3 The names here should correspond to the names provided for in the Form TECH 5 above. For Professional Staff the input should be indicated individually; for Support Staff it should be indicated by category (e.g.: draftsmen, clerical staff, etc.). Months are counted from the start of the assignment. For each staff indicate separately staff input for home and field work. Field work means work carried out at a place other than the Consultant's home office. Full time input Part time input

Section 3 Technical Proposal Standard Forms

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FORM TECH-8
Activity (see enclosed TOR, and prepare this table accordingly)

WORK SCHEDULE

Months (starting from contract effectiveness) 1 2 3 4 5 6 7 8 9 10 11 12 n

Section 4 Financial Proposal Standard Forms

39

Section 4. Financial Proposal - Standard Forms

[Comments in brackets [ ] provide guidance to the Consultants for the preparation of their Financial Proposals; they should not appear on the Financial Proposals to be submitted.]

FIN-1 FIN-2 FIN-3

Financial Proposal Submission Form Summary of Prices Breakdown of prices

Section 4 Financial Proposal Standard Forms

40

FORM FIN-1

FINANCIAL PROPOSAL SUBMISSION FORM


[insert location, date]

To:

FOMILENIO

Attention: Jos Tito Sigenza Director of Procurement FOMILENIO Boulevard del Hipdromo # 442 Col. San Benito San Salvador, Republic of El Salvador Tel: (503) 2524-1030 Fax: (503) 2243-2089 Dear Sir: We, the undersigned, offer to provide the consulting services for [insert] in accordance with your Request for Proposal dated [Insert Date] and our Technical Proposal. Our attached Financial Proposal is for the sum of [Insert amount in words and numbers1] US Dollars. This amount is inclusive of all taxes that shall be due on us if we are awarded the contract. We hereby acknowledge and agree that the tax amount shall not be adjusted during negotiations. Our Financial Proposal shall be binding upon us subject to the modifications resulting from Contract negotiations, up to expiration of the validity period of the Proposal, as indicated in the Data Sheet. Commissions and gratuities paid or to be paid by us to agents relating to this Proposal and Contract execution, if we are awarded the Contract, are listed below:
Name and Address of Agents Amount and Currency Purpose of Commission or Gratuity

We understand you are not bound to accept any Proposal you receive. We remain, Yours sincerely, Authorized Signature [In full and initials]: Name and Title of Signatory: Name of Firm: Address:

Section 4 Financial Proposal Standard Forms

41

Amounts must coincide with the ones indicated under Total Price of Financial proposal in Form FIN-2.

Section 4 Financial Proposal Standard Forms

42

FORM FIN-2
BASE PERIOD (Phase I) A

SUMMARY OF PRICES
US$ lump sum Total

Fixed-Price Proposal for 12-month Base Period (Phase I):

(1)
OPTION PERIODS (Phases II and III) B. Option Period #1 (Phase II): B1. Coordinator Formal Education (per month fully loaded) B2. Coordinator Non-Formal Education (per month fully loaded) B3. Support Specialist (per month fully loaded) B4. Monitoring & Evaluation Specialist in Professional Development (per month fully loaded) B5. Curriculum Program Evaluation Specialist (per month fully loaded) B6. Technical Trainers (mid-level) (per month fully loaded) B7. Technical Trainers (per month fully loaded) B8. Trainer of Trainers (per month fully loaded) B9. Communications Specialist (per month fully loaded) B B10. Support Staff (monthly equivalent for all support positions) Total Option Period #1 (Phase II): C. Option Period #2 (Phase III): C1. Coordinator Formal Education (per month fully loaded) C2. Coordinator Non-Formal Education (per month fully loaded) C3. Support Specialist (per month fully loaded) C4. Monitoring & Evaluation Specialist (per month fully loaded) C5. Technical Trainers (mid-level) (per month fully loaded) C6. Technical Trainers (per month fully loaded) C C7. Support Staff (monthly equivalent for all support positions) Total Option Period #2 (Phase III):

(2)
All-Inclusive unit monthly rates US$ (to be filled by the Consultant)

(3)

Person Months 18 18 18 18 9 30 48 6 3 18

Total $ = (1) x (2)

18 18 18 18 30 24 18

Total Financial Offer (A+B+C):

Section 4 Financial Proposal Standard Forms

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REVISED FORM FIN-3 BREAKDOWN OF REMUNERATIONS


[Information to be provided in this Form shall only be used to establish payments to the Consultant for possible additional services requested by FOMILENIO corresponding to Phase I of the assignment, and for verification of the market reasonableness of the prices offered. The Consultant shall list the all-inclusive monthly rates for each staff position for Phase I of the assignment, only.] PHASE I
Foreign staff REQUIRED POSITION MONTHLY RATE (ALL INCLUSIVE)

Local staff

Notes: Staffing positions on Form FIN-3 shall correspond to the required positions identified for the activities listed in Form TECH-8.

Section 5 Terms of Reference

44

Section 5. Terms of Reference (TOR) Education and Training Technical Assistance


1 1.1 I. BACKGROUND 1.1. Millennium Challenge Account (MCA)

The Millennium Challenge Account (MCA) is a fund created by the Government of the United States of America to support the worlds poor countries and is granted to those governments which are above the median in at least half of the indicators in each category such as poverty reduction, democracy, combating corruption and macroeconomic stability, among others. MCA funding takes the form of a grant, but in order to apply, eligible countries must present MCC with a proposal in order to compete for a portion of the budget assigned by the United States. On November 8, 2005, the MCC announced that El Salvador and Namibia had been elected for funding among lower middle income countries. At that point, a consultation process was initiated with different sectors of the population, coordinated by the National Development Commission (CND in Spanish) and the Technical Secretary of the Presidency (STP, in Spanish), aimed at the preparation of a consultative proposal to access MCC funding for the execution of an integrated development strategy for the Northern Zone of El Salvador. The Government of the Republic of El Salvador (GOES), created a High-Level Tracking Committee for the Millennium Challenge Account by Executive Decree No. 90 of September 10, 2005, published in the Official Gazette No. 171, Volume No. 368 of September 14 2005. The said Committee prepared and submitted a proposal which qualified for MCA funding. In May 2006 El Salvador presented the MCC with a proposal which included: creation of prosperity and poverty reduction, through economic growth in the Northern Zone, towards the goal of achieving a nationwide impact, and integration with neighboring countries. The delivery period of the proposal was five years and direct beneficiaries would be approximately 850,000 inhabitants of 94 municipalities in that area. The proposal is an integrated, coherent and comprehensive program including three broad components to transform the Northern Zone: Human Development, Productive Development and Physical Connectivity. Furthermore, the proposal has 5 significant transversal axes: environment, local development, gender equality, transparency and citizen participation. (See Annex 1 Program Description1 / MCA Content Program, Millennium Challenge Compact between the Government of the Republic of El Salvador and The United States of America through the Millennium Challenge Corporation). On November 8, the MCC Board of Directors approved for El Salvador an amount of US$461 million aimed at strengthening citizen participative consultation, monitoring and evaluation, auditing systems, training in environment, technical assistance and institutional strengthening.
1

Annex 1: Program Description.

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On November 29 2006 El Salvador signed with the Millennium Challenge Corp. (MCC), a U.S. entity, a Compact Agreement for a non-reimbursable Grant for US$461 million in Washington. On December 20 both the Compact and the Law Creating FOMILENIO were ratified by the Legislative Assembly. On January 4, 2007, the President of the Republic sanctioned both decrees which became Laws of El Salvador on January 12, 2007. 1.2 Northern Zone Development Strategy The Northern Zone is a region that includes 94 municipalities which make up the northern third of the national territory. More than half of the households live in poverty; 850,000 inhabitants have a per-capita income of 40 per cent less than the national/domestic average. Salvadorans living in the NZ have less access to education and services such as water, sanitation and energy than the national average. Furthermore, the Northern Zone is isolated from the rest of the country, and its Central American neighbors, as a result of an inadequate roadway system. Also, the Northern Zone is an important source of water, energy, biodiversity and environmental resources of El Salvador, producing one third of the energy supply for the country as well as one third of the water supply for the San Salvador metropolitan area. Furthermore, the region is considered a significant source of rice, seafood and dairy products, having a considerable productive potential. The Northern Zone Strategy comprises six elements that stem from an extensive consultative process with individuals and diverse sectors within the region, and throughout the country. The six elements are: development of economic activity centers; preservation of the Rio Lempa Basin; construction of a northern transnational highway and a complementary road network; integration with the Honduran border; construction of competitive cities; and strengthening of the municipal associations and governance. These elements encompass three major themes: (1) strengthening human development in the Northern Zone; (2) developing productive potential in the region; and (3) increasing physical connectivity within the region, with the rest of the country, and with neighboring countries. 1.2 1.3 National Education Plan 2021 and MEGATEC Network

In March 2005, the President of the Republic, Elas Antonio Saca, launched the National Education Plan 2021 (www.mined.gob.sv). The long-term plan includes priority education objectives, policies and goals, for the next years and establishes short, medium and long term commitments. It is a 16-year plan which will be completed by 2021, when El Salvador will commemorate its 200th anniversary of independence from Spain. The plan objectives are the following: improve education effectiveness and universal secondary education for young people, strengthen technical and technological education and foster science and technology development. In order to achieve these objectives, the plan comprises a set of policies aimed at the enlargement of educational services, the improvement of effectiveness in education (focusing on students` learning achievements), the graduates higher level of competitiveness and promotion of administrative good practices. One of the Government priority programs is the MEGATEC network, focused on strengthening of both technical and technological education, in correspondence with the countrys productive development.

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1.3

Table 1. MEGATEC Network

The MEGATEC Network is the main Government initiative to both expand and strengthen middle-level technical education and higher technological education, in compliance with productive development requirements of the countrys various regions. The MEGATEC network was conceived as a system of middle level technical education, technological higher education and professional education (non-formal) aimed at human capital formation in areas related to the productive development in the country and its regions. According to consultative studies and processes by the National Development Commission during the last eight years, there are four main regions with various potentially productive levels: Region South Comalapa Los Volcanes Northern Ro Lempa Department Zacatecoluca Sonsonate Cabaas and Chalatenango Productive Priority Electronics and Logistics. Telecommunications and Industrial Mechanics. Electrical Power, Agricultural industry, Agroforestry and Basin Management.

Eastern Zone

La Unin

Port Administration, Logistics and Customs.

In 2006, the Government opened the first MEGATEC network Base in the La Unin Department, where one of the main ports in Central America is under construction. For this initiative, the Government already made an initial investment of US$ 2.4 millions for the enrollment of 260 students under a yearly scholarship grant of US$ 2,500. Some additional US$ 6 million will be invested (including resources granted by the Japanese Government for some US$ 4 million). Likewise, the MEGATEC Network includes the implementation of centers in the Department of La Paz (south central zone) and in the Department of Sonsonate (western zone). Likewise, technological institutes in Santa Ana (Northwest Zone) and San Miguel (Noreastern Zone /Oriental Norte). Some other medium technical education institutes will be strengthened nationwide, especially focusing on 22 institutes that benefited from a recent project financed by the European Union (1999 to 2004). 1.4 Status of Formal and Non-formal Education in the Northern Zone

The Northern Zone comprises 94 municipalities (See Annex 1) having the highest levels of poverty and the lowest rate of development when compared to the rest of the country. In general terms, these municipalities present low educational rates, low levels of access to pre-school and secondary education, high illiteracy rates, very low levels of education, student low academic achievement and only a few technological higher education institutions.

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In the said area, there are 1,572 schools (kindergarten, primary and secondary education (out of 6,000). Enrollment in these institutions is approximately 282,263 students (out of 1.7 million students at a national level): 35,000 kinder garden students, 225,000 students in basic education, and 19,000 students in secondary/intermediate school. This zone is also characterized by scarce investment in productive projects which foster job creation and qualified human resources, which has limited the training potential for selfemployment in traditional occupations, such as in woodwork, carpentry, dressmaking, cosmetology, plumbing, bakery and refrigeration and air conditioning, which restricts productive development of the zone. Nevertheless, in 2006, 217 people benefited from traditional training; 119 micro-businessmen received training in business administration; and 3,030 small enterprise workers in some municipalities which will be MCA Project beneficiaries. Training programs in the Northern Zone have been developed according to the demand for qualified human resources, which is determined by the development opportunities identified, and by the characteristics of the population, an important factor to be taken into account is the low school levels, which are an obstacle for the provision of high technical training. Training is provided, where it is required, through mobile actions, to make it more beneficial for participants. 1.5 National Policy for Vocational Training

In October 2006, a proposal by the Instituto Salvadoreo de Formacin Profesional (INSAFORP in Spanish), was approved by the Government Economic Committee of President Elas Antonio Saca: the National Policy for Vocational Training. (http://www.insaforp.org.sv). This policy identifies the various subsystems which relate the National System to the impact of its different actions. For MCA purposes, within the eight Strategic Axes that comprise the National Training Policy, the strategic axis to be taken specifically into account is axis number 2, namely: education alongside all productive life. Its objective is to develop life-long education and training culture throughout peoples productive life, taking into account the characteristics of the different target populations and the learning abilities of people, regardless of where and how they have acquired their knowledge, with the purpose of being a positive influence for their own development, their quality of life and the countrys economic and social development. 1.6 Demand for Qualified Human Resources The various productive projects identified in the Zone will determine the human resources qualified to be trained in the area, including new projects established by the Compact such as water supply and sanitation infrastructure, rural electrification, road construction, etc. The educational and training on offer must include appropriate methodologies and modalities, including development of relevant curricula, and characteristics of the population to be served, in the light of emerging local skilled labor needs.

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II. SPECIFIC BACKGROUND OF THE CONSULTANCY 2.1 Summary of the Human Development Project and Related Project Activities (see Appendix 1 to Annex 1, at: http://www.mca.gob.sv/archivos.php?subseccion=54 ). III. USEFUL REFERENCES FOR CONSULTANT In spite of the progress made in recent years, a significant number of poor citizens in El Salvador does not have access to basic public services for human development. This problem is particularly acute in the Northern Zone, where an estimated 25% of the population (approx. 225,000 people) have no connections to the water system, more than 20% (approx. 200,000 people) does not have an access to adequate sanitary services and a 28% (more than 235,000 people) have no access to power supply. The road infrastructure of communities forces many of the rural poor to give up looking for education or employment opportunities, health care, etc. in a word, improving their lives. Human development education and training is also affected by skill gaps. The average number of years of formal education is 3.7 years as compared to 5.6 years in the rest of the country. Less than one out of ten boys completes secondary education, and its quality is poor. As a consequence, many young people decide to emigrate to other countries or to urban areas, where they soon become impoverished due to lack of skills. The Government is currently implementing a national strategy for educational development, known as Plan 2021, in an attempt to enhance efficiency in education, strive to achieve universal secondary education, strengthen both technical and technological education and promote scientific and technological development. For this plan to be successful, additional resources are required for the Northern Zone, especially in technical schools in formal secondary and training in the development of informal skills. To improve the current situation, the Human Development Project was designed towards the goal of increasing access to basic services and communal infrastructure and enhancing knowledge and abilities through education/skill development programs. To fulfill the human development program objectives proposed, execution of Education and Training Activities is vital for increasing the quality of education and skills of the poor in the Northern Zone through professional/technical education and training. This program is comprised of the following sub-activities: namely technical assistance; formal technical education; and development of non-formal skills. The Ministry of Education and INSAFORP, through the agency of FOMILENIO, will hire a Technical Assistance provider to support execution of the Education and Training project activity in the Northern Zone, comprised of the subactivities of: technical assistance, and formal and non-formal education. The Ministry of Education and INSAFORP will validate the implementation plans for the execution of the required services.

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When required, the Firm selected will participate in meetings and activities of the Education and Training Advisory Committee made up by the members of the Tracking Committee for Plan 2021. The said committee will provide support in the design and monitoring of the activities which are part of a Formal Technical Education Sub-Activity and the Non-formal Skill Development Sub-Activity. IV. Objectives General: To develop and assist implementation of the Education and Training Activity in the Northern Zone, comprised of formal and non-formal education and training. Specific Objectives: a) To undertake a base line study for MINED and INSAFORP statistical requirements, Annex III of the Millennium Challenge Compact between the Government of El Salvador and the Millennium Challenge Corporation (see document in http://www.mca.gob.sv/archivos.php?subseccion=54) and the Program Monitoring and Evaluation Plan for effective future follow-up. b) To perform a gender analysis in the educational sector including access to education and training to promote an equal participation of both men and women, thus reducing current gender disparities. c) To elaborate a diagnosis of technical and technological education in the Northern Zone, identifying the installed capacity and the educational requirements for this area. Likewise, to elaborate a proposal for technical careers to be implemented, design plans and study programs by competencies, based on the said diagnosis and define the teacher training programs required (by career field). d) To elaborate a diagnosis of skilled worker needs generated by the Compact, in its Human Development, Productive Development, Connectivity and other elements; installed capacity; the demand and the productive potential of the Northern Zone; and a proposal for the educational activities, the curricular design and the training program for educators, to be developed during project execution. e) To coordinate work and responsibilities with the FOMILENIO M&E Director and the impact evaluation specialist hired by the MCC to monitor and assess the results of all components of the Education Program. f) To provide technical assistance for formal and non-formal education in the Northern Zone of El Salvador, during the three stages of the Project: namely, design, execution and evaluation. V. Activities

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The consulting services for the execution of the Education and Training Activity will be carried out in three (3) Phases. Periodically, the consulting Firm in conjunction with the Ministry of Education and INSAFORP will hold meetings to define, review and revise a work plan which includes the different activities for each and every phase. The main activities for each phase will be listed. Some other activities contributing to the development of the project may be added later by agreement of the parties. 5.1. Phase I Activities Documentary Revision: 1. To review documents elaborated by the National Development Commission (CND) related to the consultation process in the Northern Zone to be able to identify the productive potentialities of the Northern Zone, and its installed capacity. Likewise, other studies and references (either public or private) relevant for the Northern Zone will be reviewed. Financial Sustainability Alternatives: 2. A Study identifying the measures to provide economic support to innovations and programs supported by the MCC during the compact execution for the next five years, for the Education and Training activity. For this purpose, different financial alternatives, either governmental or private, have to be analyzed to see how these entities could finance training, labs, buildings and/or changes resulting from the compact implementation, ensuring sustainability after the 5-year period of the compact. Base Line: For Formal Education: 3. To make a base line study including as a minimum the following: o Current educational situation of the Northern Zone (number of schools, number of teachers, type of training programs, infrastructure facilities, teacher capability, number of students per teacher, teachers in the private sector); taking into consideration the inputs mentioned in specific objective 1., all mid-level technical education and technological institutions in the Northern Zone shall be considered; MINED data base of all existing technological institutions, DIGESTYC (General Directorate for Statistics and Census), Enrollment Census of Ministry of Education and some other sources. o To visit municipalities in the Northern Zone (see annex 1), to be able to assess in more depth the installed capacity (infrastructure, curricular spaces, teachers, equipment, career fields and student flow) of Public education institutions of medium technical level and the Chalatenango Technological Institute (ITCHA) as well.

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o To define which ITCHA areas will be strengthened (infrastructure, curricular spaces, teachers, equipment, career fields and student flow) and the function of the technical careers to be taught at that Center. o To identify 20 public middle technical education schools that show a potential to be strengthened through the human development component -formal education sub activity- based on MINED criteria and approved by the MCC, as follows: Potential student demand. The center has formerly been an aid recipient (or not). Infrastructure expansion feasibility. The middle schools have the minimum infrastructure requirements for service installation (electricity, water, road accessibility, etc.). Degree of complementary/compatibility with other MCA programs. Non-Formal Education: o To hold interviews with representatives of Northern Zone productive sectors (companies, cooperatives, NGOs, etc.) to assess their training needs. o To estimate the worker demand in the Northern Zone for the implementation of the MCC program for the next 5 years, according to specialties. Estimation must be divided according to company hierarchies (director, middle management, technical level, operational level, etc.) o To identify the non-formal training demand in the Northern Zone in accordance with its productive potential, regional productive development and peoples ability for training. The training ability will be determined by school levels, productive traditions in the region and other factors. o To present INSAFORP with a proposal plan to be developed during project execution, taking into account the needs contained in the Productive Development Component, specifying the type of courses to be offered, characteristics of target population and beneficiary municipalities of training activities.

Gender Analysis 4. A gender analysis will be made for the middle technical and technological levels, and for the non-formal activities in the Northern Zone as well. Formal Education: o To identify and to describe the target population by gender, considering gender in the light of education status, enrollment, dropouts and schooling levels classified by age and level. o To examine possible gender differences. To point out any difference in the access to education and to educational infrastructure. o To identify the limiting factors with respect to enrollment of girls at middle technical schools as well as the technological levels in the Northern Zone.

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o To identify female student distribution in the various fields in middle technical education and technological education. o To identify government agencies and NGOs with a woman based approach and/or any other entity which can contribute to the promotion of technical education for women. o To identify the communication mechanisms in order to inform women regarding the project opportunities in the formal education area. o To identify the role of women in school administration both at a local and national levels and to promote strengthening strategies. o To welcome recommendations based on the analysis in the program design. Non-Formal Education: o To identify the limiting factors related to women enrollment in training Activities. o To examine possible gender differences. To point out any difference/discrimination in the access to non-formal training programs. o To point out any type of gender discrimination when accessing the training services. o To determine accessibility of places hosting the courses or training sessions for both women and men. o To identify the communication mechanisms in order to inform women regarding the project opportunities in the formal education area. o To provide recommendations based on the analysis made in the program design. Curricular Design: For Formal Education: 5. Proposal and curriculum design of secondary technical career fields to be implemented: o To present to MINED a proposal for technical programs at a secondary and technological level, related to productive activities in the Northern Zone. o To design plans and study programs by competencies based on the diagnosis of new career fields for the middle technical and technological level to be taught in the Northern Zone (4 career fields, maximum). A design of the study plans must articulate both educational levels (middle and superior) and include: study programs, education competency profiles for both levels, and competency modules for each study plan. For Non-Formal Education: o According to the work competencies model, to design the required programs for the execution of the non-formal training plan, in instances where this type of programs is nonexistent. o According to the model of work competencies, to design the required programs for the training of teachers who will implement the Non-formal training plan.

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o To elaborate the Terms of Reference for the Follow-up and Monitoring of nonformal education actions. 6. Scholarships o To analyze the current MINED scholarship program and to propose the methodology and criteria for scholarship selection with MCA funding, introducing a random selection which will allow for transparency and will meet the requirements of the impact evaluation methodology based on randomness. The scholarship program is aimed at young people living in poverty and who have had high academic achievement. o To elaborate the Terms of Reference to identify the implementing entity of the Scholarship Program. Impact Indicators: 7. To collaborate with the impact evaluation specialist in the design, collection and measure of the indicators of impact and the evaluation studies follow-up. The impact evaluation design must measure the project specific objectives, defined in the indicators of performance in the monitoring and evaluation plan and in the Compact. Beneficiary Selection must make sure that scholarship recipients are identified on the basis of need, and high academic achievement. Such design must consider the selection purpose for both the control groups and treatment groups, applied in the methodology of the impact evaluation specialist, 8. Work Plan For Formal Education: - In conjunction with the Ministry of Education, to design the work plan for execution of Phase two. Non-Formal Education: - In conjunction with INSAFORP, to design the work plan for the execution of Phase two. 5.2. Phase II Activities Implementation plans proposed by the selected Firm must be developed based on the results of the diagnostic of Phase I. 1. Promotion and Publication - To design the Terms of Reference for the development of a promotion and publication strategy for the formal education program as well as the non-formal education program in the Northern Zone. - To design the evaluation criteria for award of contract for the program promotion and publication strategies.

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Follow-up and monitoring of the promotion and publication strategy for the formal and non-formal education program in the Northern Zone. To assist in the project monitoring and evaluation in the Northern Zone when required.

2. Strengthening of study plan for the two educational levels (medium technical and technological). - Program Evaluation within 1 year of the implementation. - Organization of Training sessions for teachers in charge of the courses to be implemented for medium technical education and technological education. - Design and development of didactic materials for teachers. 3. In-classroom Technical Assistance for teachers participating in the training for supporting the pedagogical work. 4. Strengthening of the scholarship program - To evaluate the entity in charge of program implementation. - To provide follow-up and monitoring for the implementing entity. 5. Strengthening of the Chalatenango Institute and 20 education institutions in key municipalities - Follow up for the Implementation Plan for the strengthening of each institution selected during the diagnosis stage. Such plan should include, among other aspects, the implementation timetable, design of technical specifications for labs and workshops as well as any other equipment required by the institution. - Follow-up and support for the Chalatenango Center strengthening, so that it becomes both a vocational teacher training center (prior to work and during work), and a center for curricular experimentation and for resource development, in support of the medium technical schools in the Northern Zone and throughout El Salvador. - Follow up, monitoring and evaluation for the ITCHA implementation program and the 20 educational institutions selected in the diagnosis phase. 6. Technical Assistance, training and activity Development, required for achieving the educational subcomponent of the Human Development Program goals. 7. Work Plan execution for this stage, prepared in Phase I. 8. Reporting to Ministry of Education: Quarterly reports of formal education training activities, based on the training plan elaborated in Phase I. Quarterly Reports on follow up and monitoring and evaluation of the formal education activities. 9. Reports to INSAFORP Quarterly reports of the non-formal education training based on training plan elaborated in Phase I.

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Quarterly reports of follow-up, monitoring and evaluation of non-formal education activities.

10. Design Work Plan for the execution of Phase III (formal and non-formal education 11. Providing Support in the elaboration of implementation progress reports

5.3 Activities Phase III 1. Technical Assistance. - The selected Firm will provide Technical Assistance and training to enable institutions and organizations participating in the formation and execution of formal and non-formal education in the Northern Zone. For non-formal education: - Technical Assistance to INSAFORP for the development of training activities - Technical Assistance to INSAFORP regarding follow-up development, monitoring and evaluation of the training activities. 2. Supporting impact evaluation of education and training activity. To advise and support MINED and INSAFORP on the collection of data, both qualitative and quantitative, related to impact of the education and training activity. To provide feedback for instrument design for data collection and evaluation. To collaborate with the processing and analysis of the information obtained in the investigation. To collaborate with FOMILENIO, MINED, INSAFORP and the Impact Evaluation Specialist hired by the MCC concerning the presentation of the Impact Evaluation Outcomes and the Follow-up study for the scholarship recipients and corresponding conclusions and recommendations.

3. To provide any type of Technical Assistance, training and activity required for the fulfillment of these Terms of Reference 4. To present INSAFORP with the following reports for approval: o Quarterly reports of the non-formal education training activities of the training plan elaborated in Phase I. o Quarterly reports related to follow-up, monitoring and evaluation of the non-formal education actions. o Final report of intermediate evaluations effected in the non-formal education plan created in Phase I.

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5. To provide support in the elaboration of progress reports and project closing. VI. EXPECTED CONSULTING OUTPUTS PHASE I 1. A Northern Zone Base Line Study Report according to Activity Requirements and to proposed indicators in Annex III, Millennium Challenge Compact between the Government of El Salvador and the Millennium Challenge Corporation (see document posted at http://www.mca.gob.sv/archivos.php?subseccion=54) and the Program Monitoring and Evaluation Plan. 2. Gender analysis report and plan including the present analysis recommendations and results. 3. A proposal for technical careers to be emphasized at the public education institutions medium technical education and ITCHA. The said career fields shall be selected in accordance with the needs of the productive activity of the Northern Zone of El Salvador. 4. Technical Document of plans and education study programs according to competencies of the proposed career fields (up to a maximum of four career fields), including training profiles by competencies (medium technical and technological) and training modules by competencies in accordance with study plans. 5. Technical Document including a non-formal training plan to be developed during the project execution, taking into account the MCC project objectives. 6. Training programs, designed according to an approach based on work competencies for the execution of the non-formal training plan, whenever such programs are not available. 7. Programs for Training of Trainers required for development of non-formal training plans, designed on the basis of skilled competencies. 8. Proposal for Scholarship program approach, including methodology and selection criteria for scholarship awards. 9. Summary of efforts made to collaborate with other officials and consultants (of FOMILENIO and MCC) for the impact evaluation methodological proposal, evaluation follow-up studies and development and measurement of indicators of performance measures for the formal and non-formal education components. 10. Study Report for financial sustainability, including a Financial Model, identification and assessment of alternatives for ensuring financial sustainability, and a final report including recommendations with the purpose of ensuring continuity of activities initiated with support from MCC, after the Compact execution concludes. 11. Terms of Reference to identify the scholarship implementing entity. 12. Terms of Reference for the hiring process for the Teacher Training Program. 13. Terms of Reference for hiring training services for the beneficiary population. 14. Diagnostic of the training needs identified in the Northern Zone, based on the established requirement. 15. Final report by consultant, approved by MINED, INSAFORP and FOMILENIO.

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16. Work Plan for Phase II (formal and non-formal education activities) based on Phase I findings.

PHASE II Expected consultancy outputs in Phase II: 1. Quarterly activity execution progress reports according to work plan for the relevant period. 2. Final report containing conclusions and recommendations, accompanied by the following outputs: a. Terms of Reference for education program promoted in the Northern Zone of the country. b. Study Program, plans, profiles and formation modules by competencies, validated by MINED and approved by FOMILENIO. c. Conclusions and recommendations of the training implemented in this phase. d. Implementation Plan for strengthening of all institutions selected in the diagnosis. e. Proposal for strengthening ITCHA so that it becomes a national center for teacher training. 3. Quarterly reports of the non-formal education training activities developed based on the training plan-Phase I. 4. Quarterly Reports of the Teacher Training Program Activities for non-formal education training. 5. Terms of Reference validated by INSAFORP concerning follow up and monitoring of Non-formal education activities. 6. Work Plan for Phase III formal and non-formal education activities. PHASE III Expected Outputs: 1. Quarterly progress reports on technical assistance and training provided to institutions for that period. 2. Preliminary report summarizing advice and support to MINED and INSAFORP on the quantitative and qualitative data collected to enable impact evaluation. Report format and presentation should enable easy sharing of data and models used with the Impact Evaluation specialists of FOMILENIO and MCC and their consultants. For the qualitative data, a conclusions summary of the interviews, observations or Focus Groups used by the specialist for the impact evaluation. 3. Summary of efforts made to collaborate in the elaboration of the Final Report relating to the Intermediate Evaluation findings, including a summary of the information obtained, recommendations for efficiency analysis based on the program costs, conclusions and recommendations.

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4. Quarterly Report of the non-formal education activities according to Training Plan prepared in Phase I. 5. Quarterly Report of the Teacher Formation Program Activities included in the Non-formal Education sub-activity. 6. Quarterly Report of the Execution, Monitoring and Evaluation of the Non-formal Education Activities completed. 7. Final Report of the evaluations and provisional conclusions for the Non-formal Education component as required in phase I plan. Any and all outputs developed by the consulting firm will be owned by FOMILENIO, within its area of competencies, which will be entitled to their publication and use, as necessary. The contracting firm will not be able to make use of them without previous consent by FOMILENIO. VII. PERSONNEL REQUIREMENT 7.1 Phase I

During Phase I, many key activities will be developed in a relatively short period. Therefore, several multidisciplinary experts will be required to achieve a quality job concerning the activities and the stipulated time. This pertains to the diagnosis phase, which will provide the inputs for many of the activities to be developed in the next two phases. Duration of Phase I is estimated to be one year (twelve months), requiring an estimated 72 person/months and will require key personnel, two full time international consultants and one local consultant, as follows: General Coordinator for Formal Education: S/he or she will coordinate the formal education activities stipulated for Phase I. Likewise, the General Coordinator will lead the consulting team and will account for his activities before FOMILENIO and MINED. This team member will be required to have wide experience in education fields through teamwork, specially in Competency-based Curricular design and training course designing and competencies. Also, experience in budget administration is a plus, since this person will be in charge of the administration of the budget assigned to the present consulting services during Phase I. This position is required to attend all Phase I meetings (twelve months). General Coordinator for Non-Formal Education: He or she will coordinate the non-formal education activities stipulated for Phase I. Likewise, the General Coordinator for Non-Formal Education will lead the consulting team and will account for activities before FOMILENIO and INSAFORP. This team member will be required to have wide experience in education fields and in doing teamwork, especially in Competency-based Curricular design and training course design .. This position is required to attend all Phase I meetings (twelve months). Support Specialist: In charge of providing logistical support to the General Coordinators and to the rest of the team. S/he will also issue public invitations for participation in both the formal

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and non-formal training programs, and will help with the preparation of training material and documents regarding logistical aspects of the various education and training activities. In addition to the above key personnel, other short-term specialists will be required in order to comply with the program objectives, to carry out activities, and to deliver the expected outputs. This additional requirement will have to be included in the proposal. The list below indicates the additional personnel whose services are anticipated to be required for Phase I. But the selected Consultant will be able to make suggestions and justify the need of other experts, according to former experience. FOMILENIO reserves the right to request the staff resums during contract negotiation: Sustainability Research Specialist: The sustainability of the project is an important factor, because it is not enough to know that it will be executed with the funds of the Millennium Challenge Account, but it is also important to study how the facilities will be maintained, and how the training and education programs will be sustained as appropriate, into the future and beyond the 5-year term of the Compact. In this sense, this specialist will have to identify the most appropriate and feasible measures to economically sustain the innovations and programs supported initially by MCC funding, beyond the five years of the compact. For this he/she will have to investigate the different financing alternatives of the Government as well as the private sector, in order to propose how these various entities can contribute to give the financial support to the trainings, the facilities, laboratories, and the constructions, etc. resulting from the implementation of the compact. Market Research Specialist will support education and training services supply and demand study and will also help define the selection criteria for scholarship awards to beneficiaries and for the administrative entity; should have at least a three-year experience in market research design and in project planning and execution. Educational Research Specialist: Responsible for reviewing the results of the Productive Development Component, for the analysis of the NZ intermediate technical education institutes, the area of influence of the Chalatenango technological institute, as well as the productive components of the zone in order to define the career fields to be designed in such a manner that they respond to the needs of the Northern Zone. This Specialist will assist in identifying a maximum of 20 intermediate level technical education institutions which will be strengthened with MCA funding. Curriculum Design Specialist: Will be in charge of the design of the study plans and programs for the development of competencies according to proposed career fields, with their respective profiles for competency development at the intermediate and high-level technical education, and the formation of program modules in accordance with the study plans. Curriculum Development Specialist by competencies: Will coordinate curricular development by work competencies for the Non-formal Training Program Activities resulting from the assessment of training needs. Attention will be given to assessments undertaken as part of Education and Training acitivity as well as the of the Productive Development Project of the El Salvador MCC Compact.

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Information Specialist: Responsible for the creation and maintenance of a computerized data management system to track the scholarships awarded to student beneficiaries, (for both the intermediate and high-level technical education scholarship beneficiaries). Should have experience in design, maintenance and management of databases. Monitoring and Evaluation Specialist: Will support data collection activities and serve as a counterpart to the Monitoring and Evaluation specialist provided by the MCC, for which the specialist will provide support in the design of the impact indicators, the scholarships aspect and the monitoring of all the Education and Training activities. Gender Specialist: Responsible for carrying out the gender study to permit the identification and description of the target population by gender, considering the differences in educational status, enrolment, dropouts, and the academic level attained by age and level. Additionally, he/she will examine the differences between the sexes, indicating any differences in access to education and the physical infrastructure for education and or training. Limiting factors related to the enrollment of girls in intermediate and higher level technical education institutions will also be identified, including access to non-formal training programs in the Northern Zone. 7.2 Phase II

Most of the activities proposed in the various assessments and studies in Phase I will be developed during Phase II. This Phase will have a duration of 18-month, with an estimated input of 168 person-months, which will require two international residents and a local specialist who will be key personnel. In addition, a team of relevant specialists for formal and non-formal training and education, monitoring and evaluation and a specialist for curricular evaluation of the professional formation program will be required. Communications and teacher training specialists are also anticipated on a short-term basis. 7.3 Phase III

During Phase III, the development of activities initiated in Phase II will continue. The duration of Phase III is 18-month period, with an estimated personnel input requirement of 126 personmonths. Two international residents and the local specialist will be key personnel. Moreover, a team of specialists will be required to impart formal and non-formal education training programs as well as a local monitoring and evaluation specialist. VIII. CHARACTERISTICS 8.1 Duration: Technical Assistance Contract Initial contract will be for a Base Period of 12 months (Phase I), with the possibility of an extension for two additional option periods of 18 months each, corresponding to Phase II y III, at the sole discretion of FOMILENIO. 8.2 Work Site: El Salvador. The physical location will correspond to the location of the project, with central offices in San Salvador.

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8.3

Presentation of the Outputs

For each phase, outputs shall have the following characteristics and shall be presented in the following manner: 1. Documents will be presented in print and electronic format in both English and Spanish. 2. Each document will be presented in original and four copies in letter size paper along with an executive summary report. The electronic formats (created in Microsoft software) will be presented in CD-ROM (four copies). 8.4 Implementation Supervision and Management

The Ministry of Education and INSAFORP will provide counterpart specialist to support the Consulting firm throughout the assignment. 8.5 Work Relationships:

At the technical level: Coordinate all activities to be executed during the assessment, with the Vice-Ministry of Technology of the Ministry of Education of El Salvador (MINED) and the INSAFORP Executive Directorate. At the administrative level: Coordinate with FOMILENIO. 8.6 Inputs by FOMILENIO: a) Northern Zone Consultation Progress Document by the CND. b) Project documents and annexes from the Human Development Component sub-activity: Formal Education and Training (MCC Funding).. c) List of the 94 municipalities that comprise the Northern Zone in El Salvador. d) A list of intermediate level technical public institutions spread over 94 municipalities in the Northern Zone of El Salvador. e) 2021 National Education Plan f) Professional Education National Policy.

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ANNEX 1 To SECTION 5 Terms of Reference: List of Municipalities Beneficiaries


Municipalities Northern Zone No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 Department Cabaas Cabaas Cabaas Cabaas Cabaas Cabaas Cabaas Cabaas Cabaas Chalatenango Chalatenango Chalatenango Chalatenango Chalatenango Chalatenango Chalatenango Chalatenango Chalatenango Chalatenango Chalatenango Chalatenango Chalatenango Chalatenango Chalatenango Chalatenango Chalatenango Chalatenango Chalatenango Chalatenango Chalatenango Chalatenango Chalatenango Chalatenango Chalatenango Chalatenango Chalatenango Chalatenango Chalatenango Chalatenango Chalatenango Chalatenango Chalatenango Cuscatln Municipality Cinquera Jutiapa Ilobasco Tejutepeque Villa Dolores Villa Victoria Guacotecti San Isidro Sensuntepeque Arcatao La Laguna Las Vueltas Ojos de Agua Potonico San Antonio De Los Ranchos San Fernando San Francisco Morazn San Isidro Labrador San Jos Cancasque Azacualpa Cital Dulce Nombre De Maria El Paraso La Palma Agua Caliente Comalapa Concepcin Quezaltepeque El Carrizal Nombre De Jess Nueva Trinidad San Antonio de la Cruz San Francisco Lempa San Jos las Flores San Luis del Carmen San Miguel de Mercedes La Reina Nueva Concepcin San Ignacio San Rafael Santa Rita Tejutla Chalatenango Suchitoto

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Municipalities Northern Zone No. 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 Department La Libertad La Unin La Unin La Unin La Unin La Unin La Unin La Unin La Unin La Unin Morazn Morazn Morazn Morazn Morazn Morazn Morazn Morazn Morazn Morazn Morazn Morazn Morazn Morazn Morazn Morazn Morazn Morazn Morazn Morazn Morazn Morazn Morazn Morazn Morazn Morazn San Miguel San Miguel San Miguel San Miguel San Miguel San Miguel San Miguel San Miguel San Salvador San Salvador Municipality San Pablo Tacachico Lislique San Jos La Fuente Anamors Bolivar El Sauce Nueva Esparta Polors Concepcin De Oriente Santa Rosa De Lima Gualococti Guatajiagua Joateca San Isidro San Simn Torola Arambala Cacaopera Chilanga Corinto Delicias de Concepcin El Rosario Lolotiquillo San Fernando Sensembra Yamabal El Divisadero Jocoaitique Meanguera Osicala Perqun Sociedad Jocoro San Carlos San Francisco Gotera Yoloaquin Carolina San Antonio del Mosco Ciudad Barrios Nuevo Edn de San Juan San Gerardo Sesori San Luis de La Reina Chapeltique El Paisnal Aguilares

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Municipalities Northern Zone No. 90 91 92 93 94 Department Santa Ana Santa Ana Santa Ana Santa Ana Santa Ana Municipality Masahuat Santa Rosa Guachipilin Metapn San Antonio Pajonal Santiago de la Frontera

65

Section 6. Standard Form of Contract

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66

Contents
I. II. 1. FORM OF CONTRACT ................................................................................................................................. 69 GENERAL CONDITIONS OF CONTRACT ............................................................................................... 71 GENERAL PROVISIONS ................................................................................................................................. 71 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 1.10 1.11 2. Definitions............................................................................................................................................ 71 Law Governing Contract ..................................................................................................................... 72 Language ............................................................................................................................................. 72 Notices ................................................................................................................................................. 72 Location ............................................................................................................................................... 73 Authority of Member in Charge ........................................................................................................... 73 Authorized Representatives.................................................................................................................. 73 Taxes and Duties.................................................................................................................................. 73 Fraud and Corruption ......................................................................................................................... 74 Limitations on the Use or Treatment of MCC Funding. ...................................................................... 77 Inconsistencies ..................................................................................................................................... 77

COMMENCEMENT, COMPLETION, MODIFICATION AND TERMINATION OF CONTRACT ............................ 77 2.1 2.2 2.3 2.4 2.5 2.6 Effectiveness of Contract ..................................................................................................................... 77 Commencement of Services.................................................................................................................. 77 Expiration of Contract ......................................................................................................................... 77 Modifications or Variations ................................................................................................................. 77 Force Majeure ..................................................................................................................................... 77 Termination and Suspension ................................................................................................................ 78

3.

OBLIGATIONS OF THE CONSULTANT ........................................................................................................... 81 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 3.11 3.12 General ................................................................................................................................................ 81 Conflict of Interest ............................................................................................................................... 81 Confidentiality ..................................................................................................................................... 82 Reporting Obligations.......................................................................................................................... 82 Documents Prepared by the Consultant to be the Property of FOMILENIO; Rights of Use .............. 83 Reports and Information; Access; Audits; Reviews. ............................................................................ 83 Procurement ........................................................................................................................................ 84 Compliance with Anti-Corruption Legislation..................................................................................... 84 Compliance with Anti-Money Laundering Legislation. ....................................................................... 85 Compliance with Anti-Terrorist Financing Statutes and Other Restrictions ....................................... 85 Publicity, Information and Marking .................................................................................................... 86 Other Provisions .................................................................................................................................. 87

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3.13 3.14 4.

Flow Through Provisions .................................................................................................................... 87 Insurance to be Taken Out by the Consultant ...................................................................................... 87

CONSULTANTS PERSONNEL ........................................................................................................................ 87 4.1 4.2 4.3 Description of Personnel ..................................................................................................................... 87 Removal and/or Replacement of Personnel ......................................................................................... 87 Consultants Actions Requiring FOMILENIOs Prior Approval......................................................... 88

5.

OBLIGATIONS OF FOMILENIO .................................................................................................................. 88 5.1 5.2 Assistance and exemptions................................................................................................................... 88 Services and Facilities ......................................................................................................................... 88

6.

PAYMENTS TO THE CONSULTANT ................................................................................................................ 88 6.1 6.2 6.3 6.4 6.5 Lump-Sum Payment ............................................................................................................................. 88 Contract Price ..................................................................................................................................... 89 Terms and Conditions of Payment ....................................................................................................... 89 Payment for Additional Services .......................................................................................................... 89 Interest on Delayed Payments ............................................................................................................. 89

7.

MCC STATUS; RESERVED RIGHTS; THIRD BENEFICIARY. ........................................................................ 89 7.1 7.2 7.3 MCC Status .......................................................................................................................................... 89 MCC Reserved Rights .......................................................................................................................... 89 Third-Party Beneficiary ....................................................................................................................... 90

8.

GOOD FAITH ................................................................................................................................................. 91 8.1 Good Faith ........................................................................................................................................... 91

9.

SETTLEMENT OF DISPUTES .......................................................................................................................... 91 9.1 9.2 Amicable Settlement............................................................................................................................. 91 Dispute Resolution ............................................................................................................................... 91

III. IV.

SPECIAL CONDITIONS OF CONTRACT ............................................................................................. 92 APPENDICES ............................................................................................................................................. 96

APPENDIX A DESCRIPTION OF SERVICES .............................................................................................................. 97 APPENDIX B - REPORTING REQUIREMENTS ............................................................................................................. 98 APPENDIX C - KEY PERSONNEL AND SUB-CONSULTANTS ....................................................................................... 99 APPENDIX D FEE AND PAYMENT SCHEDULE....................................................................................................... 100 APPENDIX E - BREAKDOWN OF CONTRACT PRICE IN FOREIGN CURRENCY ........................................................... 101 APPENDIX F - SERVICES AND FACILITIES PROVIDED BY FOMILENIO .................................................................. 104 APPENDIX G ADDITIONAL PROVISIONS .............................................................................................................. 105

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CONTRACT FOR CONSULTANTS SERVICES


FIXED PRICE Between

FOMILENIO-EL SALVADOR
and

[name of the Consultant]

For

E D U C A T I O N A N D T R A IN IN G T E C H N IC A L A SSIST A N C E

Funded by: Funded by THE UNITED STATES OF AMERICA Through THE MILLENNIUM CHALLENGE CORPORATION

Dated:

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I.

Form of Contract
FIXED PRICE

[Text in brackets [ ] is optional; all notes should be deleted in final text] This CONTRACT (hereinafter called the Contract or this Contract) is made the [day] day of the month of [month], [year], between, on the one hand, Fondo del Milenio (FOMILENIO) represented by _______________ (hereinafter called FOMILENIO) and, on the other hand, [name of Consultant] (hereinafter called the Consultant). [Note: If the Consultant consist of more than one entity, the above should be partially amended to read as follows: (hereinafter called FOMILENIO) and, on the other hand, a joint venture/consortium/association consisting of the following entities, each of which will be jointly and severally liable to FOMILENIO for all the Consultants obligations under this Contract, namely, [name of Consultant] and [name of Consultant] (hereinafter called the Consultant).] WHEREAS (a) (b) FOMILENIO has requested the Consultant to provide certain consulting services as defined in this Contract (hereinafter called the Services); the Consultant, having represented to FOMILENIO that it has the required professional skills, and personnel and technical resources, has agreed to provide the Services on the terms and conditions set forth in this Contract; the Millennium Challenge Corporation (MCC) and the Government of the Republic of El Salvador (the Government) have entered into a Compact for Millennium Challenge Account (MCA) assistance to help facilitate poverty reduction through economic growth in El Salvador (the Compact) in the amount of US$ 460.9 million (MCC Funding). The Government, acting through the Fondo del Milenio (FOMILENIO), intends to apply a portion of the proceeds of MCC Funding (as defined in the Compact) to eligible payments under this Contract. Payment by MCC will be made only at the request of FOMILENIO and upon approval by MCC, and will be subject, in all respects, to the terms and conditions of the Compact, including restrictions on the use of MCC Funding and conditions to the disbursements.

(c)

NOW THEREFORE the parties hereto hereby agree as follows: 1. The following documents attached hereto shall be deemed to form an integral part of this Contract: (a) (b) (c) The General Conditions of Contract; The Special Conditions of Contract; The following Appendices:

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Appendix A: Appendix B: Appendix C: Appendix D: Appendix D-1: Appendix D-2: Appendix E: Appendix F: Appendix G: 2.

Description of Services Reporting Requirements Key Personnel and Sub-Consultants Fee and Payment Schedule Monthly Rates - Phase II Monthly Rates - Phase III Breakdown of Contract Price in Foreign Currency Services and Facilities to be Provided by FOMILENIO Additional Provisions

The mutual rights and obligations of FOMILENIO and the Consultant shall be as set forth in the Contract, in particular: (a) (b) the Consultants shall carry out the Services in accordance with the provisions of the Contract; and FOMILENIO shall make payments to the Consultants in accordance with the provisions of the Contract.

IN WITNESS WHEREOF, the Parties hereto have caused this Contract to be signed in their respective names as of the day and year first above written. For and on behalf of Fondo del Milenio (FOMILENIO)

FOMILENIOs President For and on behalf of [name of Consultant]

[Authorized Representative] [Note: If the Consultant consists of more than one entity, all these entities should appear as signatories, e.g., in the following manner:] For and on behalf of each of the Members of the Consultant [name of member]

[Authorized Representative] [name of member]

[Authorized Representative]

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II.
1.1 Definitions

General Conditions of Contract


1. GENERAL PROVISIONS

Terms used in this Contract and not defined herein shall have the meanings given such terms in the Compact. Unless the context otherwise requires, the following terms whenever used in this Contract have the following meanings: 1. Applicable Law means the laws of, and any other disposition that has force of law in, El Salvador, and that from time to time are in force and effect. Compact means the Millennium Challenge Compact entered into as of November 29, 2006 between MCC and the Government, as amended from time to time. Consultant means any private or public entity that will provide the Services to FOMILENIO under this Contract. Contract Price means the price to be paid for the performance of the Services, in accordance with Clause GC 6; Contract means this Contract signed by the Parties, including the General Conditions (GC), the Special Conditions (SC), and the Appendices. Effective Date means the date on which this Contract comes into force and effect pursuant to Clause GC 2.1. GC means these General Conditions of this Contract. Government means the Government of the Republic of El Salvador. In writing means any type of communication in a written master with proof of receipt Key personnel refers to Personnel or Professional Staff of the Consultant who have management responsibilities or have key qualifications needed for the assignment. MCC means the Millennium Challenge Corporation, a United States Government agency located in Washington D.C., U.S.A. Member means any of the entities that make up the joint venture/consortium/association, and Members means all these

2.

3. 4. 5.

6. 7. 8. 9. 10.

11. 12.

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72

entities. 13. 14. Party means FOMILENIO or the Consultant, as the case may be, and Parties means both of them. Personnel means persons hired by the Consultant or by any SubConsultants and assigned to the performance of the Services or any part thereof. Professional Staff refers to the staff of the Consultant who have received a university degree in a particular field or discipline. SC means the Special Conditions of this Contract by which the GC may be modified, amended, supplemented or complemented. Services means the services set forth in Appendix A that the Consultant must perform in accordance with the terms of this Contract. Sub-Consultant means any person, firm or entity with which the Consultant enters into any agreement in connection with the offering of the Services contracted under this Contract.

15. 16. 17.

18.

1.2

Law Governing This Contract, its meaning and interpretation, and the relation between the Parties shall be governed by the Applicable Law. Contract Language This Contract has been executed in the language specified in the SC, which shall be the binding and controlling language for all matters relating to the meaning or interpretation of this Contract.

1.3

1.4

Notices 1.4.1 Any notice, request or consent required or permitted to be given or made pursuant to this Contract shall be in writing. Any such notice, request or consent shall be deemed to have been given or made when delivered in person to an authorized representative of the Party to whom the communication is addressed, sent to such Party at the address specified in the SC, or sent by confirmed facsimile or electronic email, if sent during normal business hours of the recipient Party, unless otherwise required by Applicable Law. A Party may change its address for notice hereunder by giving the other Party notice in writing of such change sent to the address specified in the SC.

1.4.2

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1.5

Location

The Services shall be performed at such locations as are specified in Appendix A hereto, and, where the location of a particular task is not so specified, at such locations, whether in El Salvador or elsewhere, as FOMILENIO. In case the Consultant consists of a joint venture/ consortium/ association of more than one entity, the Members hereby authorize the entity specified in the SC to act on their behalf in exercising all the Consultants rights and obligations towards FOMILENIO under this Contract, including without limitation the receiving of instructions and payments from FOMILENIO.

1.6

Authority of Member in Charge

1.7

Any action required or permitted to be taken, and any document Authorized Representatives required or permitted to be executed under this Contract by FOMILENIO or the Consultant may be taken or executed by the officials specified in the SC. Taxes and Duties (a) Except as may be exempted pursuant to the SC and Section 2.3(e) of the Compact, available in English at http://www.mca.gob.sv/archivos.php?subseccion=54, Consultants, the Sub-Consultants, and their respective Personnel may be subject to certain Taxes on amounts payable by FOMILENIO hereunder under Applicable Law (now or hereinafter in effect). Each Consultant, each Sub-Consultant and their respective Personnel shall pay all such local taxes and such other taxes, duties, fees, and other impositions levied under the Applicable Law. In no event shall the Contract Price include Taxes other than IVA, and FOMILENIO shall not be responsible for the payment of any Taxes other than IVA. In the event that any Taxes, other than IVA, are imposed on the Consultant, each Sub-Consultant and/or their respective Personnel, the Contract Price shall not be adjusted to account for such Taxes. The Consultant, the Sub-Consultants and their respective Personnel, and their eligible dependents, shall follow the usual customs procedures of El Salvador in importing property into El Salvador. If the Consultant, the Sub-Consultants or any of their respective Personnel, or their eligible dependents, do not withdraw but dispose of any property in El Salvador upon which customs duties and taxes have been exempted, the Consultant, the SubConsultants or such Personnel, as the case may be, (i) shall bear such customs duties and taxes in conformity with the regulations of the Government, or (ii) shall reimburse them to FOMILENIO

1.8

(b)

(c)

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74

if they were paid by FOMILENIO at the time the property in question was brought into El Salvador. (d) Without prejudice to the rights of the Consultant under this clause, the Consultant, the Sub-Consultants and their respective Personnel will take reasonable steps requested by FOMILENIO with respect to the determination of the tax status described in this clause. If the Consultant is required to pay taxes that are exempt under the Compact, the Consultant shall promptly notify FOMILENIO (or such agent or representative designated by FOMILENIO) of any taxes paid, and the Consultant shall cooperate with, and take such actions as may be requested by FOMILENIO, MCC, or either of their agents or representatives, in seeking the prompt and proper reimbursement of such taxes. FOMILENIO shall ensure that the Government shall provide Consultant, the Sub-Consultants, and their respective Personnel the exemptions from taxation applicable to such persons or entities, in accordance with the terms of the Compact. If FOMILENIO fails to comply with its obligations under this paragraph, the Consultant shall have the right to terminate this Agreement in accordance with GC Clause 2.6.2(d).

(e)

(f)

1.9

Fraud and Corruption

Consultants participating in projects funded by MCC shall adhere to the highest ethical standard, both during the selection process and throughout the execution of a contract. In pursuance of this requirement, FOMILENIO defines, for the purpose of this paragraph, the terms set forth below as follows: (i) corrupt practice means the offering, receiving, providing, accepting or soliciting, directly or indirectly, of any thing of value to influence the action of a public official in the selection process or execution of an agreement; or the making of any payment to any third party, in connection with or in furtherance of this Contract, in violation of the United States Foreign Corrupt Practices Act of 1977, as amended (15 USC 78a et seq) ("FCPA") or any other actions taken that otherwise would be in violation of the FCPA if the FCPA were applicable;

1.9.1

Definitions (a)

(ii) fraudulent practice means a misrepresentation or omission of facts in order to influence a selection process

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75

or the execution of a contract to the detriment of FOMILENIO or the GoES, and includes collusive practice among those parties submitting Proposals (prior to or after Proposal submission) designed to establish Proposal prices at artificial noncompetitive levels and to deprive FOMILENIO of the benefits of free and open competition; (iii) collusive practices means a scheme or arrangement between two or more consultants with or without the knowledge of FOMILENIO, designed to establish prices at artificial, noncompetitive levels; (iv) coercive practices means harming or threatening to harm, directly or indirectly, persons or their property to influence their participation in a procurement process, or affect the execution of a contract; and
(v)

prohibited practices means any action that violates the provisions relating to Anti-Corruption Legislation, AntiMoney Laundering Legislation and terrorist financing statutes or other restrictions set forth in the General Conditions of Contract of this RFP.

(vi) obstructive practice is (aa) deliberately destroying, falsifying, altering or concealing of evidence material to the investigation or making false statements to investigators in order to impede materially an investigation by MCC or the MCA Entity into allegations of a corrupt, fraudulent, coercive, collusive, prohibited or obstructive practice; and threatening, harassing, or intimidating any party to prevent it from disclosing its knowledge of matters relevant to the investigation or from pursuing the investigation, and (bb) acts intended to impede materially the exercise of the inspection and audit rights of MCC provided under the Compact; (b) will reject a proposal for award if it determines that the Consultant recommended for award has, directly or through an agent, engaged in corrupt, fraudulent, collusive, coercive or prohibited practices in competing for the contract in question; will sanction a Consultant, including declaring such Consultant ineligible, either indefinitely or for a stated period of time, to be awarded an MCC-funded contract if at any time it determines

(c)

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76

that the Consultant has, directly or through an agent, engaged in corrupt, fraudulent, collusive, coercive or prohibited practices in competing for, or in executing, such a contract; and (d) will have the right to require that a provision be included requiring the selected Consultant to permit FOMILENIO, the GoES and MCC or any designee of MCC to inspect their accounts and records relating to the submission of a Proposal or performance of contract and to have them audited by auditors appointed by FOMILENIO with the approval of MCC.

In addition, MCC will cancel the portion of the Compact funding allocated to the contract if it determines at any time that representatives of a beneficiary of the Compact were engaged in corrupt, fraudulent, collusive, coercive, prohibited or obstructive practices during the selection process or the execution of the contract, without the beneficiary having taken timely and appropriate action satisfactory to MCC to remedy the situation. MCC also may invoke any of the rights identified for FOMILENIO in paragraphs (a) through (d) above. 1.9.2 Measures (a) to be taken will reject a proposal for award if it determines that the Provider/Consultant recommended for award has, directly or through an agent, engaged in corrupt, fraudulent, collusive, coercive or prohibited in competing for or in executing the contract in question; will sanction the Consultant, including declaring the Consultant ineligible, either indefinitely or for a stated period of time, to be awarded a MCC-funded contract if it at any time determines that the Consultant has, directly or through an agent, engaged in corrupt, fraudulent, collusive, coercive or prohibited practices in competing for, or in executing, a contract funded by MCC; or will have the right to require that a provision be included requiring Consultants to permit FOMILENIO and MCC or any designee of MCC to inspect their accounts and records relating to the performance of the Contract and to have them audited by auditors appointed by FOMILENIO with the approval of MCC. In addition, MCC will cancel the portion of the grant allocated to a contract if it determines at any time that representatives of a beneficiary of the grant were engaged in corrupt, fraudulent, collusive, coercive or prohibited practices. The Government of El Salvadors policy requires that FOMILENIO and the consultants observe the highest standard of ethics during the selection and execution of such contracts.

(b)

(c)

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1.10 Limitations on the Use or Treatment of MCC Funding.

The use and treatment of MCC Funding in connection with this Contract does not, and shall not, violate any limitations or requirements specified in the Compact, including Sections 2.3 and 5.4(b) of the Compact or any other relevant Supplemental Agreement or Implementation Letter or applicable law or U.S. Government policy. A summary of the applicable Compact provisions referenced in this paragraph may be found on the MCC website at www.mcc.gov/guidance/compact/funding_limitations.pdf In the event of any conflict between this Contract and the Compact, the Disbursement Agreement, or the Procurement Agreement, the term(s) of the Compact, the Disbursement Agreement or the Procurement Agreement, as appropriate, shall prevail.

1.11 Inconsistencies

2. 2.1

COMMENCEMENT, COMPLETION, MODIFICATION AND TERMINATION OF CONTRACT Effectiveness of This Contract shall come into effect on the date the Contract is signed by both Parties (the Effective Date). Contract Commencement The Consultant shall begin carrying out the Services not later than the number of days after the Effective Date specified in the SC. of Services Expiration of Contract Unless terminated earlier pursuant to Clause GC 2.6 hereof, this Contract shall expire at the end of such time period after the Effective Date as specified in the SC.

2.2

2.3

2.4

Modifications or Any modification or variation of the terms and conditions of this Contract, including any modification or variation of the scope of the Variations Services, may only be made by written agreement between the authorized representatives of the Parties, with prior approval of MCC. However, each Party shall give due consideration to any proposals for modification or variation made by the other Party. Force Majeure 2.5.1 Definition For purposes of this clause, Force Majeure means an event beyond the control of the Consultant and not involving the Consultants fault or negligence and not foreseeable. Such events may include, but are not restricted to, acts of the Government in its sovereign capacity, wars or revolutions, fires, floods, epidemics, quarantine restrictions, and freight embargoes.

2.5

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78

2.5.2

No Breach The failure of a Party to fulfill any of its obligations under this Contract of Contract shall not be considered to be a breach of, or default under, this Contract insofar as such inability arises from an event of Force Majeure, provided that the Party affected by such an event (a) has taken all reasonable precautions, due care and reasonable alternative measures in order to carry out the terms and conditions of this Contract, and (b) has informed the other Party as soon as possible (and in no event later than five days since the occurrence) about the occurrence of such an event. Extension of Time Any period within which a Party shall, pursuant to this Contract, complete any action or task, shall be extended for a period equal to the time during which such Party was unable to perform such action as a result of Force Majeure. During the period of their inability to perform the Services as a result of an event of Force Majeure, the Consultant shall be entitled to continue to be paid under the terms of this Contract, provided, however, that the Consultant shall mitigate any expenses, losses or damages resulting from the Force Majeure, and the Parties may agree to adjust the amount of the Contract Price.

2.5.3

2.5.4 Payments

2.6

Termination and Suspension FOMILENIO may terminate this Contract in case of the occurrence of any of the events specified in paragraphs (a) through (g) of this GC Clause 2.6.1, and in the case of paragraph (h) of this GC Clause 2.6.1, FOMILENIO may suspend or terminate this Contract if the Compact is suspended, terminated or expires. (a) If the Consultant, in the judgment of FOMILENIO or MCC, fails to perform its obligations relating to the use of funds, FOMILENIO may terminate this Contract under this provision with a 30 days notice. Termination under this provision will require that the Consultant repay any and all funds so misused within a maximum of 45 days after termination. If the Consultant does not remedy a failure in the performance of its obligations under this Contract (other than failure to perform obligations relating to use of funds as set forth in Clause 2.6.1(a) of this Agreement), within thirty (30) days after being notified or within any further period approved in writing by FOMILENIO. If the Consultant becomes insolvent or bankrupt, and/or fails to

2.6.1 By
FOMILENIO

(b)

(c)

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exist. (d) If the Consultant, in the judgment of FOMILENIO has engaged in corrupt, collusive, coercive, prohibited or fraudulent practices in competing for or in executing the Contract. FOMILENIO may terminate this Contract under this provision with a 15 days notice. If, as the result of Force Majeure, the Consultant is unable to perform a material portion of the Services for a period of not less than sixty (60) days, such termination to become effective thirty (30) days after notice of termination is delivered by FOMILENIO to the Consultant. If FOMILENIO, in its sole discretion and for any reason whatsoever, decides to terminate this Contract, such termination to become effective thirty (30) days after notice of termination is delivered by FOMILENIO to the Consultant. If the Consultant fails to comply with any final decision reached as a result of arbitration proceedings. Termination under this provision to become effective within 15 days. If the Compact expires, is suspended or terminates in whole or in part in accordance with Section 5.4 of the Compact, such suspension or termination to become effective immediately upon notice by FOMILENIO to the Consultant, in accordance with the terms of the notice. The amount payable to the Consultant upon suspension or termination pursuant to this Clause 2.6.1(h) shall be equal to the amount owed but unpaid for performance provided on or before the suspension or termination date plus reimbursement of reasonable expenses (as determined by MCC) relating to such suspension or termination; provided that the Consultant sends FOMILENIO an invoice for such amounts no later than 15 days after the expiration, suspension or termination of the Compact. If this Contract is suspended or terminated pursuant to this Clause 2.6.1(h), the Consultant has an obligation to mitigate all expenses, damages and losses to FOMILENIO during the period of the suspension. If suspension is permitted under Applicable Law, the amount payable to the Consultant upon suspension pursuant to this Clause 2.6.1(i) shall be equal to the amount owed but unpaid for performance provided on or before the suspension date plus reimbursement of reasonable expenses (as determined by FOMILENIO) relating to such suspension. If this Contract is suspended pursuant to this Clause 2.6.1(i), the Consultant has an

(e)

(f)

(g)

(h)

(i)

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80

obligation to mitigate all expenses, damages and losses to FOMILENIO during the period of the suspension. 2.6.2 By the Consultant The Consultant may terminate this Contract, by not less than thirty (30) days written notice to FOMILENIO, such notice to be given after the occurrence of any of the events specified in paragraphs (a) through (e) of this Clause GC 2.6.2: (a) If FOMILENIO fails to pay any money due to the Consultant pursuant to this Contract and not subject to dispute pursuant to Clause GC 9 hereof within forty-five (45) days after receiving written notice from the Consultant that such payment is overdue. If, as the result of Force Majeure, the Consultant is unable to perform a material portion of the Services for a period of not less than sixty (60) days. If FOMILENIO fails to comply with any final decision reached as a result of arbitration. If a material breach of GC Clause 1.8(f) occurs and FOMILENIO is unable to cure such material breach for a period of not less than sixty (60) days. If this Contract is suspended in accordance with GC Clauses 2.6.1(h) or (i) for a period of time exceeding three consecutive months; provided that the Consultant has complied with its obligation to mitigate in accordance with sub clauses 2.6.1(h) or (i) during the period of the suspension.

(b)

(c) (d)

(e)

2.6.3

Payment upon Upon termination of this Contract pursuant to Clauses GC 2.6.1 or GC Termination 2.6.2, the FOMILENIOs Fiscal Agent shall make the following payments to the Consultant: (a) (b) payment pursuant to Clause GC 6 for Services satisfactorily performed prior to the effective date of termination; except in the case of termination pursuant to paragraphs (a) through (d), and (g) of Clause GC 2.6.1, and GC Clause 2.6.2, the reimbursement of any reasonable cost incident to the prompt and orderly termination of this Contract.

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3. 3.1 General 3.1.1

OBLIGATIONS OF THE CONSULTANT

Standard of The Consultant shall perform the Services and carry out their obligations hereunder with all due diligence, efficiency and economy, Performin accordance with generally accepted professional standards and ance practices, and shall observe sound management practices, and employ appropriate technology and safe and effective equipment, machinery, materials and methods. The Consultant shall always act, in respect of any matter relating to this Contract or to the Services, as faithful advisers to FOMILENIO, and shall at all times support and safeguard FOMILENIOs legitimate interests in any dealings with SubConsultants or third parties.

3.2

Conflict of Interest 3.2.1 General Provision (a) The Consultant shall ensure that no person or entity shall participate in the selection, award, administration, oversight or implementation of any contract, grant or other benefit or transaction funded in whole or in part (directly or indirectly) by MCC Funding in connection with this Contract, in which (i) the entity, the person, members of the persons immediate family or household or his or her business partners, or organizations controlled by or substantially involving such person or entity, has or have a financial or other interest or (ii) the person or entity is negotiating or has any arrangement concerning prospective employment, unless such person or entity has first disclosed in writing to the Parties under this Contract and MCC the conflict of interest and, following such disclosure, the Parties to this Contract agree in writing to proceed notwithstanding such conflict. The Consultant shall ensure that no person or entity involved in the selection, award, administration, oversight or implementation of any contract, grant or other benefit or transaction funded in whole or in part (directly or indirectly) by MCC Funding in connection with this Contract shall solicit or accept from, or offer to a third party, or seek or be promised (directly or indirectly) for itself or for another person or entity, any gift, gratuity, favor or benefit, other than items of de minimis value and otherwise consistent with such guidance as MCC may provide from time to time.

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(b)

The Consultant shall hold FOMILENIOs interests paramount, without any consideration for future work, and strictly avoid conflict with other assignments or its own corporate interests.

3.2.2 No Benefit from Commission, Discounts, etc.

The payment of the Consultant pursuant to GC Clause 6 shall constitute the Consultants only payment in connection with this Contract or the Services, and the Consultant shall not accept for its own benefit any trade commission, discount, or similar payment in connection with activities pursuant to this Contract or to the Services or in the discharge of its obligations under the Contract, and the Consultant shall use their best efforts to ensure that the Personnel, any Sub-Consultant and agents of either of them similarly shall not receive any such additional payment. The Consultant agrees that, during the term of this Contract and after its termination, the Consultant and any entity affiliated with the Consultant, as well as any Sub-Consultants and any entity affiliated with such Sub-Consultants, shall be disqualified from providing goods, works or services (other than consulting services) resulting from or directly related to the Consultants Services for the preparation or implementation of the project.

3.2.3 The Consultant and Affiliates Not to be Otherwise Interested in Project 3.2.4 Prohibition of Conflicting Activities

The Consultant shall not engage, and shall cause their Personnel, as well as their Sub-Consultants, and their Personnel not to engage, either directly or indirectly, in any business or professional activities which would conflict with the activities assigned to them under this Contract. Except with the prior written consent of FOMILENIO, the Consultant and the Personnel shall not at any time communicate to any person or entity any confidential information acquired in the course of the Services, nor shall the Consultant and the Personnel make public the recommendations formulated in the course of, or as a result of, the Services. (a) The Consultant shall submit to FOMILENIO the reports and documents specified in Appendices B and G hereto, in the form, in the numbers and within the time periods set forth in the said Appendices and such other information, documents and reports as may be required by FOMILENIO. The Consultant consents to FOMILENIOs sharing of the

3.3

Confidentiality

3.4

Reporting Obligations

(b)

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reports and documents delivered hereunder with MCC and with the Government. (c) (d) Final reports shall be delivered in electronic copy in addition to the hard copies specified in Appendices B and G. The Consultant shall also maintain such books and records and provide such reports, documents, data or other information to FOMILENIO in the manner and to the extent required by Sections 3.8 (a) and (b) of the Compact, and as may be reasonably requested by FOMILENIO from time to time in order to comply with its reporting requirements arising under the Compact. A summary of the applicable Compact provisions referenced in this paragraph may be found on the MCC website at:
www.mcc.gov/guidance/compact/audits_reviews_provisions.pdf

3.5

Documents Prepared by the Consultant to be the Property of FOMILENIO; Rights of Use

(a)

The Consultant shall not, without FOMILENIOs prior written consent, disclose the Contract, or any provision hereof, or any specification, plan, drawing, pattern, sample or information furnished by or on behalf of FOMILENIO in connection therewith, to any person other than a person employed by the Consultant in the performance of the Contract. Disclosure to any such employed person shall be made in confidence and shall extend only as far as may be necessary for purposes of such performance. The Consultant shall not, without FOMILENIOs prior written consent, make use of any document or information except for purposes of performing the Contract. Any document, other than the Contract itself shall remain the property of FOMILENIO and shall be returned (all copies) to FOMILENIO on completion of the Consultants performance under the Contract. Reports and Information. The Consultant shall maintain such books and records and provide such reports, documents, data or other information to the FOMILENIO in the manner and to the extent required by Sections 3.8 (a) and (b) of the Compact, and as may be reasonably requested by the FOMILENIO from time to time in order to comply with its reporting requirements arising under the Compact. The provisions of Section 3.8(a) and (b) of the Compact that are applicable to the Government shall apply, mutatis mutandis, to the Consultant as if such Consultant were the Government under

(b)

(c)

3.6

Reports and Information; Access; Audits; Reviews.

(a)

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the Compact. A summary of the applicable Compact provisions referenced in this paragraph may be found on the MCC website at:
www.mcc.gov/guidance/compact/audits_reviews_provisions.pdf

(b)

Access; Audits and Reviews. The Consultant shall permit such access, audits, reviews and evaluations as provided in the Compact. The provisions of the Compact that are applicable to the Government with respect to access and audits shall apply, mutatis mutandis, to the Consultant as if such Consultant were the Government under the Compact. A summary of the applicable Compact provisions referenced in this paragraph may be found on the MCC website at:
www.mcc.gov/guidance/compact/audits_reviews_provisions.pdf

(c)

Application to Providers. The Consultant shall ensure the inclusion of the applicable audit, access and reporting requirements in its contracts with other Providers entered into in connection with the Agreement. A summary of the applicable requirements may be found on the MCC website at:
www.mcc.gov/guidance/compact/audits_reviews_provisions.pdf

3.7

Procurement

The Consultant shall ensure that all procurements of goods, services or works under, related to or in furtherance of this Contract shall be consistent with the general principles set forth in Section 3.16 of the Compact and in the MCC Program Procurement Guidelines. The Consultant shall comply with the eligibility requirements related to prohibited source or restricted party provisions in accordance with U.S. law, regulations and policy and in accordance with other eligibility requirements as may be specified by MCC or the FOMILENIO. A summary of the applicable Compact provisions referenced in this paragraph may be found on the MCC website at: www.mcc.gov/guidance/compact/procurement_awards_provisions.pdf

3.8

Compliance with The Consultant shall ensure that no payments have been or will be Anti-Corruption made by the Consultant to any official of the Government, FOMILENIO, or any third party (including any other government Legislation. official) in connection with this Contract in violation of the United States Foreign Corrupt Practices Act of 1977, as amended (15 U.S.C. 78a et seq.) (the FCPA) or that would otherwise be in violation of the FCPA if the party making such payment were deemed to be a United States person or entity subject to the FCPA, or similar statute applicable to this Contract, including any local laws. The Consultant affirms that no payments have been or will be received by any official, employee, agent or representative of the Consultant in connection with this Contract in violation of the FCPA or that would

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otherwise be in violation of the FCPA if the party making such payment were deemed to be a United States person or entity subject to the FCPA, or similar statute applicable to this Contract, including any local laws. 3.9 Compliance with Anti-Money Laundering Legislation. The Consultant shall ensure that MCC Funding pursuant to this Contract is not used for money-laundering activities and, to that end, shall comply with any policies and procedures for monitoring operations to ensure compliance, as may be established from time to time by the Consultant, MCC, the FOMILENIO, the Fiscal Agent, or the Procurement Agent. The Consultant shall not provide material support or resources directly or indirectly to, or knowingly permit MCC Funding to be transferred to, any individual, corporation or other entity that such Party knows, or has reason to know, commits, attempts to commit, advocates, facilitates, or participates in any terrorist activity, or has committed, attempted to commit, advocated, facilitated or participated in any terrorist activity, including, but not limited to, the individuals and entities (i) on the master list of Specially Designated Nationals and Blocked Persons maintained by the U.S. Department of Treasurys Office of Foreign Assets Control, which list is available at www.treas.gov/offices/enforcement/ofac or http://www.epls.gov/, (ii) on the consolidated list of individuals and entities maintained by the 1267 Committee of the United Nations Security Council, or (iii) such other list as FOMILENIO may request from time to time. For purposes of this provision, material support and resources includes currency, monetary instruments or other financial securities, financial services, lodging, training, expert advice or assistance, safe houses, false documentation or identification, communications equipment, facilities, weapons, lethal substances, explosives, personnel, transportation, and other physical assets, except medicine or religious materials. The Consultant shall ensure that its activities under this Contract comply with all applicable U.S. laws, regulations and executive orders regarding money laundering, terrorist financing, U.S. sanctions laws, restrictive trade practices, boycotts, and all other economic sanctions promulgated from time to time by means of statute, executive order, regulation or as administered by the Office of Foreign Assets Control of the United States Treasury Department or any successor governmental authority, including, 18 U.S.C. Section 1956,

3.10 Compliance with (a) Anti-Terrorist Financing Statutes and Other Restrictions

(b)

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18 U.S.C. Section 1957, 18 U.S.C. Section 2339A, 18 U.S.C. Section 2339B, 18 U.S.C. Section 2339C, 18 U.S.C. Section 981, 18 U.S.C. Section 982, Executive Order 13224, 15 C.F.R. Part 760, and those economic sanctions programs enumerated at 31 C.F.R. Parts 500 through 598. The Consultant shall verify, or cause to be verified, appropriately any individual, corporation or other entity with access to or recipient of funds, which verification may include verifying if such name appears on applicable watch lists such as the lists maintained on www.epls.gov and the other lists specified in the immediately preceding paragraph. The Consultant shall (A) conduct the monitoring referred to in this paragraph on at least a quarterly basis, or such other reasonable period as the FOMILENIO or MCC may request from time to time and (B) deliver a report of such periodic monitoring to the FOMILENIO with a copy to MCC. (c) Other restrictions on the Consultant shall apply as set forth in Section 5.4(b) of the Compact with respect to drug trafficking, terrorism, sex trafficking, prostitution, fraud, felony, any misconduct injurious to MCC or the FOMILENIO, any activity contrary to the national security interests of the United States or any other activity that materially and adversely affects the ability of the Government or any other party to effectively implement, or ensure the effective implementation of, the Program or any Project or to otherwise carry out its responsibilities or obligations under or in furtherance of the Compact or any Supplemental Agreement or that materially and adversely affects the Program Assets or any Permitted Account.

3.11 Publicity, Information and Marking

The Consultant shall cooperate with the FOMILENIO and the Government to provide the appropriate publicity for the goods, works and services provided under this Contract, including identifying Program activity sites and marking Program Assets as goods, services, and works funded by the United States, acting through MCC, provided, any announcement, press release or statement regarding MCC or the fact that MCC is funding the Program or any other publicity materials referencing MCC, shall be subject to prior approval by MCC and shall be consistent with any instructions provided by MCC from time to time in relevant Implementation Letters. Upon the termination or expiration of the Compact, MCC may request the removal of, and the Consultant shall, upon such request, remove, or cause the removal of, any such markings and any references to MCC in any publicity materials. MCC shall have the right to use any information or data provided in any report or

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document provided to MCC for the purpose of satisfying MCCs reporting requirements or in any other manner. 3.12 Other Provisions The Consultant shall abide by such other terms or conditions as may be specified by FOMILENIO or MCC in connection with this Contract. 3.13 Flow Through Provisions The provisions in Appendix G shall apply to this Contract. The Consultant will guarantee the inclusion of the terms and provisions of clauses 1.8, 1.9, 1.10, 3.2, 3.6, 3.7, 3.8, 3.9, 3.10, 3.11, 3.12 and 7 hereof, as well as Appendix G, in any contract entered into by the Consultant pursuant to or in connection with this Contract.

The Consultant (a) shall take out and maintain, and shall cause any 3.14 Insurance to be Taken Out by the Sub-Consultants to take out and maintain, at their (or the SubConsultants, as the case may be) own cost but on terms and Consultant conditions approved by FOMILENIO, insurance against the risks, and for the coverage, as shall be specified in the SC and in the manner and to be applied as provided in Appendix G; and (b) at FOMILENIOs request, shall provide evidence to FOMILENIO showing that such insurance has been taken out and maintained and that the current premiums have been paid. 4. 4.1 Description of Personnel CONSULTANTS PERSONNEL

The Consultant shall employ and provide such qualified and experienced Personnel and Sub-Consultants as are required to carry out the Services. The titles, agreed job descriptions, minimum qualifications, and estimated periods of engagement in the carrying out of the Services of the Consultants Key Personnel are described in Appendix C. The Key Personnel and Sub-Consultants listed by title as well as by name in Appendix C are hereby approved by FOMILENIO. Except as FOMILENIO may otherwise agree, no changes shall be made in the Key Personnel. If, for any reason beyond the reasonable control of the Consultant, such as retirement, death, medical incapacity, among others, it becomes necessary to replace any of the Key Personnel, the Consultant shall provide as a replacement a person of equivalent or better qualifications. If FOMILENIO (i) finds that any of the Personnel have committed serious misconduct or have been charged with

4.2

(a) Removal and/or Replacement of Personnel

(b)

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having committed a criminal action related to the execution of their duties, or (ii) has reasonable cause to be dissatisfied with the performance of any of the Personnel, then the Consultant shall, at FOMILENIOs written request specifying the grounds thereof, provide as a replacement a person with qualifications and experience acceptable to FOMILENIO. (c) The Consultant shall have no claim for additional costs arising out of or incidental to any removal and/or replacement of Personnel.

4.3

The Consultant shall obtain FOMILENIOs prior approval in writing Consultants before taking any of the following actions: Actions Requiring entering into a subcontract for the performance of any part of FOMILENIOs (a) the Services, Prior Approval (b) (c) appointing such members of the Personnel not listed by name in Appendix C, and any material modifications to the subcontracting arrangements named in the final technical proposal (if any) or any other material modifications to the Contract and any other action that may be specified in the SC as requiring FOMILENIOs approval.

(d)

5. 5.1

OBLIGATIONS OF FOMILENIO

Assistance and FOMILENIO shall ensure that the Government shall provide to the Consultant such assistance and exemptions as specified in this exemptions Contract, including in the SC of this Contract. Services and Facilities FOMILENIO shall make available free of charge to the Consultant the services and facilities listed under Appendix F. 6. PAYMENTS TO THE CONSULTANT

5.2

6.1

Lump-Sum Payment

The total payment due to the Consultant shall not exceed the Contract Price which is an all inclusive lump-sum Fixed Price Contract, covering all costs required to carry out the Services described in Appendix A. Except as provided in Clauses 6.4 and 6.5 the Contract

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Price may only be increased above the amounts stated in Clause 6.2 if the Parties have agreed to additional payments in accordance with Clause 2.4. 6.2 Contract Price (a) (b) 6.3 Terms and Conditions of Payment The price payable in foreign currency is set forth in the SC. The price payable in local currency is set forth in the SC.

Payments will be made to the account of the Consultant and according to the payment schedule stated in the SC. Any other payment shall be made after the conditions listed in the SC for such payment have been met and otherwise in accordance with Appendix D, and the Consultant has submitted an invoice to FOMILENIO specifying the amount due. For the purpose of determining the remuneration due for additional services as may be agreed under Clause 2.4, a breakdown of the lump-sum price is provided in Appendices D and E If FOMILENIO has delayed payments beyond 30 (thirty) days after the due date stated in Appendix D, interest shall be paid to the Consultant for each day of delay at the rate stated in the SC.

6.4

Payment for Additional Services Interest on Delayed Payments

6.5

7. 7.1 MCC Status

MCC STATUS; RESERVED RIGHTS; THIRD BENEFICIARY. MCC is a United States Government corporation acting on behalf of the United States Government in the implementation of the Compact. As such, MCC has no liability under this Contract, and is immune from any action or proceeding arising under or relating to this Contract. In matters arising under or relating to this Contract, MCC is not subject to the jurisdiction of the courts or any other juridical or other body of any jurisdiction. Certain rights are expressly reserved to MCC under this Contract, the Compact and other related Compact documents, including the right to approve the terms and conditions of this Contract, as well as any amendments or modifications hereto, and the right to suspend or terminate this Contract. MCC, in reserving such rights under this Contract, the Compact or other related Compact documents, has acted solely as a funding entity to assure the proper use of United

7.2

MCC Reserved (a) Rights

(b)

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States Government funds, and any decision by MCC to exercise or refrain from exercising these rights shall be made as a funding entity in the course of funding the activity and shall not be construed as making MCC a party to this Contract. (c) MCC may, from time to time, exercise its rights, or discuss matters related to this Contract with the parties to this Contract, the Government or the FOMILENIO, as appropriate, jointly or separately, without thereby incurring any responsibility or liability to any party. Any approval (or failure to approve) or exercise of (or failure to exercise) any rights by MCC shall not bar the Government, FOMILENIO, MCC or any other person or entity from asserting any right against the Consultant, or relieve the Consultant of any liability which such entity might otherwise have to the FOMILENIO, MCC, or any other party. For the purposes of this clause (d), MCC shall be deemed to include any MCC officer, director, employee, Affiliate, contractor, agent or representative.

(d)

7.3

Third-Party Beneficiary

MCC shall be deemed to be a third party beneficiary under this Contract.

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8. 8.1 Good Faith

GOOD FAITH

The Parties undertake to act in good faith with respect to each others rights under this Contract and to adopt all reasonable measures to ensure the realization of the objectives of this Contract.

9. 9.1 Amicable Settlement

SETTLEMENT OF DISPUTES

The Parties agree that the avoidance or early resolution of disputes is crucial for a smooth execution of this Contract and the success of the assignment. The Parties shall use their best efforts to settle amicably all disputes arising out of or in connection with this Contract or its interpretation.

9.2

Dispute Resolution Any dispute between the Parties as to matters arising pursuant to this Contract that cannot be settled amicably within thirty (30) days after receipt by one Party of the other Partys request for such amicable settlement, may be submitted by either Party for settlement in accordance with the provisions specified in the SC.

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III.
Number of GC Clause 1.3

Special Conditions of Contract


Amendments of, and Supplements to, Clauses in the General Conditions of Contract

The language is English. Report shall be provided in English and Spanish. Consultants must ensure that all translations (English to Spanish or vice versa) are equivalent to the original and are of the highest quality. Poor translations will be rejected at no additional cost to FOMILENIO. Whenever two languages are used for any purpose, the English language shall govern.

1.4.2

Attention: Juan Jos Llort Fondo del Milenio Boulevard del Hipdromo # 442 Col. San Benito San Salvador, Republic of El Salvador Tel: (503) 2524-1000 Fax: (503) 2243-2089 Electronic mail address: juanjose.llort@fomilenio,gob.sv Consultant: Attention: Facsimile: E-mail:

{1.6}

{The Member in Charge is [insert name of member]} Note: If the Consultant consists of a joint venture/ consortium/ association of more than one entity, the name of the entity whose address is specified in Clause SC 1.6 should be inserted here. If the Consultant consists only of one entity, this Clause SC 1.6 should be deleted from the SC. The Authorized Representatives are: For FOMILENIO: Eduardo Ayala Grimaldi, President. For the Consultant:

1.7

1.8

Foreign Consultants are required to charge and pay IVA. The following is the IVA rate structure currently in place in El Salvador (13% on consulting services, 13% on goods purchased from the local market).

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FOMILENIO will pay IVA on the consulting services provided by the Consultant. For this, the Consultant will be required to submit two invoices with each payment request: one for their fee as agreed to during contract negotiations and another for the IVA paid on such services. 2.2 2.3 The estimate month for the commencement of Services is February, 2008. The Contract Base Period shall be 12 months (Phase I). At the sole option of FOMILENIO, the term of this Contract may be extended for 2 additional 18-month Option Periods. FOMILENIO shall notify the Consultant of its intent to exercise such option periods at least 30 days prior to the expiration of the current period. 3.14 The risks and the coverage shall be as follows: (a) Third Party motor vehicle liability insurance in respect of motor vehicles operated by the Consultant or its Personnel or any Sub-Consultants or their Personnel for the performance of the Services. (b) Third Party liability insurance for property, injuries or death in connection with the performance of the Services by the Consultant, its Personnel or any Sub-Consultants. (c) Professional liability insurance. (d) Employers liability and workers compensation insurance in respect of the Personnel of the Consultant and of any Sub-Consultants, in accordance with the relevant provisions of the Applicable Law, as well as, with respect to such Personnel, any such life, health, accident, travel or other insurance as may be appropriate; and (e) Insurance against loss of or damage to (i) equipment purchased in whole or in part with funds provided under this Contract, (ii) the Consultants property used in the performance of the Services, and (iii) any documents prepared by the Consultant in the performance of the Services. Additional provisions included in Appendix G with respect to insurance shall apply. 5.1 6.2(a) 6.3 FOMILENIO may provide assistance to get de VAT number, if necessary. The Contract Value in US Dollars is [insert amount]. The account number(s) is/are: for US Dollars: [insert account] Payments shall be made according to Appendix D.

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6.5 9.2

N/A Disputes shall be settled by arbitration in accordance with the following provisions: 1. Selection of Arbitrators. Each dispute submitted by a Party to arbitration shall be heard by a sole arbitrator or an arbitration panel composed of three arbitrators, in accordance with the following provisions. FOMILENIO and the Consultant shall agree to appoint a sole arbitrator or, failing agreement on the identity of such sole arbitrator within thirty (30) days after receipt by the other Party of the proposal of a name for such an appointment by the Party who initiated the proceedings, FOMILENIO and the Consultant shall each appoint one arbitrator within thirty (30) days, and these two arbitrators shall jointly appoint a third arbitrator, who shall chair the arbitration panel. If the two arbitrators named by the Parties do not succeed in appointing a third arbitrator within thirty (30) days after the latter of the two arbitrators named by the Parties has been appointed, the third arbitrator shall, at the request of either Party, be appointed by the Center of Mediation and Arbitration of El Salvador. Rules of Procedure. Except as stated herein, arbitration proceedings shall be conducted in accordance with the rules of procedure for arbitration of the United Nations Commission on International Trade Law (UNCITRAL) as in force on the date of this Contract. Substitute Arbitrators. If for any reason an arbitrator is unable to perform his function, a substitute shall be appointed in the same manner as the original arbitrator. Qualifications of Arbitrators. The sole arbitrator or the third arbitrator appointed in accordance to sub-Clause 9.2.1 of SC hereof shall be nationally or internationally recognized legal or technical expert with experience in relation to the matter in dispute. MCC has the right to be an observer or a party to any arbitration proceeding hereunder, in either case at its sole discretion, but does not have the obligation to participate in any arbitration proceeding, in any capacity. Whether or not MCC is an observer or a party to any arbitration hereunder, the Parties shall provide MCC with written English transcripts of any arbitration proceedings or hearings and a copy of the reasoned written award within ten (10) days after (i) each such proceeding or hearing or (ii) the date on which any such award is issued. MCC may enforce its rights hereunder in an arbitration conducted in accordance with this provision or by bringing an action in any court that has jurisdiction. The acceptance by MCC of the right to be an observer or a party to the arbitration shall not constitute consent to the jurisdiction of the courts or any other organism of El Salvador or any other jurisdiction or to the jurisdiction of any arbitral panel.

2.

3.

4.

5.

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6.

Costs. The costs associated with any settlement efforts before arbitration or associated with arbitration shall be allocated between FOMILENIO and the Consultant as follows: (i) each Party shall be responsible for its own attorneys fees and expenses, (ii) costs related to translation or interpretation shall be shared equally by the Parties, and (iii) all other costs associated with the arbitration shall be allocated as determined by the arbitration panel. Miscellaneous. In any arbitration proceeding hereunder: (a) (b) (c) proceedings shall, unless otherwise agreed by the Parties, be held in El Salvador; the English language shall be the official language for all purposes, with interpretations in Spanish; and the decision of the sole arbitrator or of a majority of the arbitrators (or of the third arbitrator if there is no such majority) shall be final and binding and shall be enforceable in any court of competent jurisdiction, and the Parties hereby waive any objections to or claims of immunity in respect of such enforcement.

7.

IV. APPENDICES

APPENDIX A DESCRIPTION OF SERVICES


[NOTE: The basis for the description of services should be the TOR used originally for the Proposal and any modifications as agreed to during negotiations. . Also, consider including dates for completion of various tasks, place of performance for different tasks, and specific tasks to be approved by FOMILENIO.]

APPENDIX B REPORTING REQUIREMENTS


To be agreed during contract negotiations based on the deliverables stated in the TOR. [NOTE: consider including format, frequency, and contents of reports; persons to receive them; dates of submission; etc.]
Reports Due Date 1. Inception Report, including Within 15 days of contract signature schedule of deliverables for each quarter, and Work plan 2. First Quarter Report 3. Second Quarter Report 4. Third Quarter Report 5. Final Report (Phase I) Within 15 days of the end of the quarter Within 15 days of the end of the quarter Within 15 days of the end of the quarter Within 15 days of the end of the Base Period

APPENDIX C KEY PERSONNEL AND SUB-CONSULTANTS


[NOTE: Information in Appendix C should match what is proposed and agreed in the General Conditions of the Contract. This could include titles, names, agreed job descriptions, minimum qualifications; estimated periods of engagement and will be described in Appendix C] [Information in Appendix C should match what GC 4.1 states should be included in Appendix C] The titles, agreed job descriptions, minimum qualifications, and estimated periods of engagement in the carrying out of the services of the consultants key personnel will be listed in Appendix C, in addition to key personnel and sub-consultants].

Position

Name

Area of Expertise

Task Assigned

APPENDIX D FEE AND PAYMENT SCHEDULE


[NOTE: Payments will be tied to FOMILENIOs acceptance of deliverables, for example, delivery of monthly reports (see Appendix B) that need to be submitted and approved.] Table of Monthly Reports and Percentage of Payment for Phase I:
Expected Completion (month) Payment (% of Base Period Contract Value) 10% Payment Amount (US$)

Reports

Submission and Approval of Consultants Inception Report, including schedule of deliverables for each quarter, and Work plan First Quarter Report (Including submission and acceptance of all deliverables for the corresponding period) Second Quarter Report (Including submission and acceptance of all deliverables for the corresponding period) Third Quarter Report (Including submission and acceptance of all deliverables for the corresponding period) Phase I Final Report (Including submission and acceptance of all deliverables for the corresponding period) Phase I Total:

0.5

25%

25%

20%

12

20% 100%

Monthly Rate Phase I PHASE I


Foreign staff REQUIRED POSITION MONTHLY RATE (ALL INCLUSIVE)

Local staff

APPENDIX D1 MONTHLY RATES PHASE II


[FROM FORM FIN-2]
PHASE II ACTIVITIES Foreign REQUIRED POSITION MONTHLY RATE (US$) LOE (MONTHS) SUBTOTAL (US$)

Local

Phase-II Total

APPENDIX D2 MONTHLY RATES PHASE III


[FROM FORM FIN-2]
PHASE III ACTIVITIES Foreign REQUIRED POSITION MONTHLY RATE (US$) LOE (MONTHS) SUBTOTAL (US$)

Local

Phase-II Total

APPENDIX E BREAKDOWN OF CONTRACT PRICE IN FOREIGN CURRENCY


[To be completed] [Note: List here the elements of cost used to arrive at the breakdown of the fixed-price foreign currency portion for each key task of the contract: 1. 2. Monthly rates for Personnel (Key Personnel and other Personnel). Expenses.

This appendix will exclusively be used for determining remuneration for additional services, if any.]

APPENDIX F SERVICES AND FACILITIES PROVIDED BY FOMILENIO


No services nor facilities will be made available to the Consultant by FOMILENIO.

APPENDIX G ADDITIONAL PROVISIONS


Capitalized terms that are used but not defined in this Appendix shall have the meaning given to them in the agreement to which this Appendix is attached (the Agreement) and that certain Millennium Challenge Compact by and between the United States of America, acting through MCC, and the Government, signed on November 29, 2006, as may be amended from time to time (the Compact). FOMILENIO is responsible for the oversight and management of the implementation of the Compact on behalf of the Government. The Government of El Salvador has received a grant from MCC pursuant to the Compact and intends to apply a portion of the proceeds of the Compact to eligible payments under this Contract, provided that (i) such payments will only be made at the request of and on behalf of the FOMILENIO and as authorized by the Fiscal Agent, (ii) MCC shall have no obligations to the Consultant (for the purposes of this Appendix, the Consultant) under the Compact or this Agreement, (iii) such payments will be subject, in all respects, to the terms and conditions of the Compact, and (iv) no party other than the FOMILENIO shall derive any rights from the Compact or have any claim to MCC Funding. A. INSURANCE.

The Consultant shall obtain insurance, performance bonds, guarantees or other protections appropriate to cover against risks or liabilities associated with performance of the Agreement. The Consultant shall be named as payee on any such insurance and the beneficiary of any such guarantee, including performance bonds. MCC and the FOMILENIO shall be named as additional insured on any such insurance or other guarantee, to the extent permissible under applicable laws. The Consultant shall ensure that any proceeds from claims paid under such insurance or any other form of guarantee shall be used to replace or repair any loss or to pursue the procurement of the covered goods, services or works, provided, however, at MCCs election, such proceeds shall be deposited in an account as designated by the FOMILENIO and acceptable to MCC or as otherwise directed by MCC.

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