07-F-1733doc5

• . ll il 03 ... QUESTION: "Disclose how Iraqi assets are being used in reconstruction. The administration should disclose what laws and procedures govern the Coalition Provisional Authority or other U.S. government entity when it enters into contracts with non-Iraqi companies using Iraqi funds, and describe compliance with those laws and procedures. The administration should disclose all such contracts, the CPA or agency identified, and solicited offers from, contractors, together with a list of the contractors solicited."' · ·· · • ANSWER: 1. Use of Iraqi assets is governed by the International Emergency Economic Powers Act and the laws and usages of war. • The Coalition Provisional Authority (CPA) process for allocation of funds is attached (Tab A). • The procedures being used by the Coalition Provisional Authority to award contracts using Iraqi assets are found in CPA Memorandum No. 4, Contract and Grant Procedures Apphcable to Vested and Seized Property and the Development Fund for Iraq, dated 19 August 2003 (Tab ~and available at www.cpa-irag.org). These procedures were developed based upon the U.S. Federal Acquisition Regulation, along with internationally recognized contracting procedures. ' . . . 2. Iraqi assets --vested, seized, or Development. .Fund for Iraq-- are being used as follows: • • A summary of all Iraqi assets used in reconstruction is attached (Tab C). • Development Fund for Iraq (DFI) assets totaling $1.1 billion, of the $2.5 billion available as of September 30, 2003, have been allocated by the CPA. The DFI assets are being used to finance emergency fuel imports, currency exchange, and various security and infrastructure projects. A list of contracts funded with DFl assets is attached (Tab C-1). • All of the Iraqi state assets, both vested and seized, totaling $2.6 billion have been allocated by the CPA for the benefit of the Iraqi people. The Iraqi assets are being used to finance the salaries of Iraqi civil servants, regular payments for Iraqi pensioners, construction program projects, and other critical relief and reconstruction activities in direct support of the Iraqi people. A list of contracts funded with seized assets (Tab C-2) and vested assets (Tab C-3) are attached. ....... • • • • • • • • CPA PROCESS FOR THE ALLOCATION OF FUNDS 1. Overview and Objectives 2. Key Terms 3. Role of the Program Review Board 4. Role of the Project Review Committee and Staff 5. Role of the Regional Directors 6. Fund~ng Request Proces~ 7. Allocation Process 8. Disbursement Process 1. Overview and Objectives The CPA is responsible for administering, using and accounting for vested and seized Iraqi property and the Development Fund for Iraq. In addition, the CPA must propose expenditures from the U.S. Iraq Relief and Reconstruction Fund (IRRF) for execution of relief and reconstruction ·programs in Iraq. The CPA has established the Program Review Board ('·Board") to carry out responsibilities as defined in the Coalition Provisional Authority Regulation Number 4. The CPA has further established a Program Review Committee ("Committee") to support the work of the Board in carrying out its responsibilities under this regulation, which witl employ staff in sUpport of these functions. When budgeting expenditures from these various sources of funding, it is important to ensure that to the maximum extent possible, consistent with local conditions: ' . [ . [ [ r- -- - . . l-. c c [ L c Program funding requests undergo a rigorous review Program funding requests are consistent with the Coalition Provisional Government's policy and security objectives Program funding requests are properly coordinated within the CPA Program funding requests are prioritized Projects are funded from the most appropriate funding source Projects are not duplicative Projects can be implemented through the most effective, efficient meGhanisms Projects are coordinated with Iraqi officials or community repres~~tatives, Coalition partners, NGOs and international donors Projects are presented to intemationa1 donors to attract outside funding Projects are appropriately monitored Program funding requests are expeditious]y reviewed, decided, and disbursed. 2. Key Terms Appropriated Funds: Funds made available to the U.S. President or a U.S. executive agency by the U.S. Congress, in a duly enacted appropriations act. The primary source of appropriated funds for relief and reconstruction activities in Iraq is the $2.475 billion Iraq Relief and Reconstruction Fund appropriated to the President in the Emergency Wartime Supplemental Appropriations Act, 2003. These funds remain available for expenditure until September 30, 2004. 1 TABA ...... • .. CPA PROCESS FOR THE ALLOCATION OF FUNDS Vested Assets: Funds of the former Government of Iraq that have been confiscated from U.S. bank accounts and provided to the U.S. Department of the Treasury, pursuant to the lntemational Emergency Economic Powers Act, as amended. Vested funds are available only for the purpose of assisting the Iraqi people and assisting in the reconstruction of Iraq. . Seized Funds; State- or regime-9wned cash, funds, or realizable securities found in Iraq by Coalition Forces, and taken under their possession and control pursuant to the laws and usages of war. Seized funds may be used only to assist the Iraqi people and support the reconstruction of Iraq. . Development Fund for Iraq: A fund held by the Central Bank of Iraq, and capitalized by: a $1 billion transfer from UN escrow accounts; all proceeds from export sales of petroleum, petroleum products and natural gas from Iraq~ funds of the previous Government of Iraq located outside Iraq and frozen by Member States, and certain other sums. The Development Fund for Iraq is available for humanitarian assistance., economic reconstruction and repair of infrastructure, disa1 tnament, Iraqi civil administration, and other purposes benefiting the people of Iraq. Apportionment of Funds: The process whereby the White House Office of Management and Budget (OMB) authorizes the transfer of U.S. appropriated funds from a central appropriations account (in this case, usually the Iraq Relief and Reconstruction Fund) to the particular U.S. executive agency (the Departments of State, Defense, Treasury, Health and Human Services, or AID) that wiH expend the funds. Allocation of Funds: The process of dividing total available resources among various categories, by establishing specific monetary amounts that will be available for particular purposes. . Obligation and Disbursement of Funds: An obligation of funds legally binds the government to pay a specific amount of money to an individual, contractor, organization or other entity. A disbursement occurs when funds are transferred from t~e possession of an official of the Coalition Provisional Authority to a non-Coalition payee (usually a contractor or an Iraqi government official). 3. Program Review Board • The Board is responsible for preparing and submitting to the Administrator for. approval, a1location requests that identify, integrate and prioritize requirements for the relief ~d recovery activities in Iraq, and proposes allocations of available resources to meet those requirements. The specific roles, responsibilities and membership of the CPA Program Review Board are set forth in the CPA Regulation No. 4, Program Review Board · (June 17, 2003). ,.. ..• 2 TABA . - CPA PROCESS FOR THE ALLOCATION OF FUNDS 4. Project Review Committee and Program Staff: The primary function of the Project Review Committee is to conduct the initial review of al1 program funding requests and project submissions, categorize them, and make recommendations to the Program Review Board for the allocation of funds based on the objectives set forth above. The Staff will assist the Board and Committee in carrying out their functions as identified in CPA Regulation No.4, Program Review Board (June 17, 2003) and instructions promulgated in implementation of that Regulation. Program Staff will coordinate and manage the funding proposal and approval process for the Development Fund for Iraq, the vested and seized asset accounts, and the Iraq Relief and Reconstruction Fund. Program Staff report directly to the Program Coordinator and be responsible for: L Distributing and providing procedures and guidance to all CPA entities including Ministry Advisors, Regional Directors, the Coalition International Council and CJTF-7 commanders on the process for submitting funding requests to the Program Review Board C: Receiving all project funding requests and working with proponents to ensure the applications contain all necessary information. L. Ensuring that the funding requests/project proposals have undergone the required prior review at the regional or ministerial level prior to subm.i~sion to the Committee. [ Identifying, reviewing and recommending appropriate funding sources, in coordination with the CPA General Counsel • [. Reviewing and recommending mechanisms for project implementation [ Creating and maintaining a database tracking system for all funding requests received and project disposition · [ Entering al1 data into the database tracking system for al] project proposals [ Distributing copies of all project proposals and necessary infounation to aJI members of the Committee for consideration. C Coordinating any informational requests from the Committee and Board [_ Organizing meetings of the Committee and Board and preparing necessary materials. r Creating official records of the Committee and Board meetings arid implementing decisions made by these two bodies. [ Obtaining additional information for CPA when required. [_ Converting the recommendations of the Board into allocation requests for the CPA. C Distributing CPA decisions to the program proponent, members of the Board and to the Comptroller for funding disbursements or accounting line cite L. Working with the CPA Comptroller on ·disbursement of funds and mechanisms for disbursement [ Tracking status of fund balances of available funding, including within program categories • - ....... 3 TABA ------- ----····-···· • ' • • CPA PROCESS FOR THE ALLOCATION OF FUNDS . 5. Role of the Regional Directors All Regional Directors must establish mechanisms by which projects generated in the governorates are reviewed and prioritized at a regional level. Regional Directors should establish a committee or other process to vet and recommend projects to the Board requesting vested or seized assets or funds under the Iraqi Development Fund. To the extent possibl_ e, coordination should be done with the national level, such as Senior Advisors to the Ministries. · · 6. Funding Request Process: The Program Review Board will receive requests from a number of sources but primarily from Military Commanders, Regional Directors and Ministry Advisors. All funding requests will be reYiewed in accordance with the following review and approval process, as expeditiously as possible. Field Requests: Field Requests are generated from Division and Brigade Commanders and CPA civilian staff who fall under the Regional Directors. Division, Brigade Commander, and Regional Director's Emergency Response Funds- - All funding requirements that faJl under the delegated authorities (Division Commanders $100,000 per project, Brigade Commander $50,000 per transac~ion; Regional Director $100,000 per transaction) can be approved and funded within their discretion from the Emergency Response Funds. - A Request for Funding For rn (PRB 01) should be completed for all projects and completed copies should be provided- to the Program Coordinator. (Note: Division and Brigade Commanders and Regional Directors should exchange PRB 01 fonns to ensure coordination.) - At the depletion of available funds, submit a request for replenishment to the Program Coordinator. Note: Expended funds can be replenished upon submission of completed PRB Forms, PRB Ol . • .. . Funding Requests in Excess of Delegated Authorities - - All program funding requests over delegated amounts must be considered by the Board and should be submitted on a Funding Request Form (PRB 01) to the Program Coordinator. - Requests should be coordinated with the Regional Directors and, to the extent possible, for ministry activities, with the Ministry Advisor. (If this coordination is riot possible at the regional level, the coordination will be done by the Program Coordinator.) Ministries/Other Entities in Baghdad: 4 TABA ----------- -··-· · • . . CPA PROCESS FOR THE ALLOCATION OF FUNDS .. • • All requests 1n any amount, which are not contained in a Ministry Budget, must be submitted on a Funding Request Form (Fonn PRB 01) to the Program Coordinator, after appropriate coordination with Ministry Advisors or municipality. 7. Allocation Process: The goal is to process funding requests in 48-72 hours. The more complete the Funding Request Forrn, including the demonstration of coordination with relevant parties. the faster the approval process will proceed. . - All re· quests will be submitted to the Program Coordinator or Program Staff(see separate Instructions.) - When the fom• is sufficiently complete, it will be submitted to the Project Review Committee for review. The Committee will meet every other day . . Recommendations wi11 be submitted to the Program Review Board for approval. · - Board recommendations for programs under $200,000 will be submitted to the CPA Comptroller for disbursement. - Board recommendations for programs over $200,000 will be submitted to the CPA via an Allocation Request. - Allocation decisions of the CPA will be distributed by the Staff to: the Board, the Committee, the Regional Director (for further distribution to Military Commanders), the proponent, and the Comptro1ler for payment. 8. Disbursement of Funds The CPA will publish specific procedures for disbursing the various types of resources that the CPA Program Review Board will be responsible for budgeting. - Appropriated funds will be disbursed in accordance with applicable federal Jaws and regulations, including Title 31 of the United States Code, and the Federal Acquisition Reg. · - Vested and seized funds wi lJ be disbursed in accordance with applicable Appendices to the Procedures for Administering, Using and Ac. counting for Vested and Seized Funds, approved by the U.S. Deputy Secretary of Defense on May 29, 2003. - Funds from the Development Fund for Iraq will be disbursed under procedures that ensure transparency and international confidence in the manner in which the CPA uses the Fund on behalf of, and for the benefit of the Iraqi people. '· ...... 5 TABA • • • • COAIJ'uON PROVISIONAL AUTHORITY MEMORANDUM . CONTRACt AND GRANT PROCEDURES APPLICABLE TO VES'I•Eo AND SEIZED IRAQI R ANDTBR DEVELOPMENT FUND FOil IRAQ . IMPLEMENTATION OF REGULATION NUMBER 3, PROGRAM REVIEW BOARD (CP AIREG!ll Jaae 1003!03) • Pursuant to my authority as Administrator of the Coalition Provisional Authority (CPA) and the laws and usages of war, and CODSiatcnt with relevant U.N. Security Council raolutions, iDcluding Resolution 1483 (2003), Undencoring that the Development Fund for Imq (DFI) shall be used in a transparent manner to meet the humanitarian needs of the Iraqi people, for the economic . recons1ruction and repair of Iraq's infrastructure, for the continued of Iraq, and for the costs of Iraqi civilian ad•ninistration, cd for other puip06C8 bc1Jcditing the people of Iraq, and that the Progtam Review Board as authmized by CPA Regulation Number 3 (18 June 2003) is responsible for rccoJmncnding expenditures of resources nom the DFI. • . . Noting that Resolution 1483 (2003) states that independent public accouut•nts approved by and repoa:ting to the International Advisory and Mooetar'y Boani (IAMB) shall ~ the PFl to ensure that the DPI is used exclusively for the Slated in Rcsolutioli 1483 (1003), Reaffirming that the CPA is CODIDlittcd to ensuring that all state- or regime-owned cash, funds or realizable securities tbat have been seiu.d by Coalition Forces in Iraq consistent with the laws and usages of war, sbatl be used only to assist the Iraqi people and support the reconstruction of Iraq, • lmplementi11g CPA R.egulaticm Number 3. Program Review Board (CP AIRBG/18 June 2003/03), . . I hereby promulgate the following: I . I I Sectioa 1 Purpose This memorandum establishes procedures· applicable to the execution of contracts and g~ants for the benefit of the Iraqi people using Iraqi Funds, u defined herein. As ~ CP A/MEM/19 AUGUST 2003/04 1 • • • • for the Iraqi people, the CPA will manage and spend· haqi Funds, which belong to the Iraqi people, for their benefit. Although haqi FUDds are not subject to the same laws and regulations that apply to fimds provided to the CPA directly fiom Coalition governments, they shall be manascd in a b:•nspareat manner that fully COmpo& with tbe CPA •• obligations under·mtcmatioDallaw, including Resolution 1483. . . Section l AppBcablllty This Memomndum applies to couttac18 and grants . c:xccuted by or on behalf of the CPA., when those instruments obligate and expend Iraqi Funds. It covers contracts aDd gtantl ~~~ . 1) CPA Regional Directors carrying out the Regional Directors' Emergency Response Program; . 2) CPA Regional Directors carrying out the Ccmstmction lDitiativc for Iraq Progmn; . 3) Interim Ministry Officials, working in conjunction with Senior Minisby Advison, whcu Carrying out requirements that arc not fimcled ~gh the national Ministry budget process; 4) CPA's Head of Contracting Activity, or designee( a), aud S) Others delegated such authority by the Administrator. ' This Memorandum does not apply to: . 1) Iraqi Minisb:ies and govcn•mental agencies executing conhacbl or grants to fulfill requirements ~ tbroup the natioual budget process if the Administrator, or his designee, detenninea that the contracting of the Ministry or agency is adequate to CDSUIC 1he bansparent use and management of Iraqi funds. However, if the conta:acting proccdnres of the particular Ministry or agency are not deterntined to be adequate, this MeDJotandum shall apply. and 2) Coalition Forces conntlanders ca•'eying out the Commanders' "R~ Response Paogt•m. The ' Emergency Program will use the procedures contained in FRAOO 89 (Appendix E) or any subsequent ameDded guidance to PRAGO 89. Sectloa 3 ·DeftaitiODI 9 AUGUST 2003/04 2 . ' • .. • • 1) "Competitive Range .. : A group of proposals that ate eligible for awud of a particular contract or gxant, u · by a Offitez' on the buis of cost and other factors stated in the solicitation. 2) ''Con~t": A written agreen:-ent whereby the CPA or Coalition Forces aequite goods, services or construcnon from a person or outity UDder pracribed terms and conditions. for the purpose of assisting tbe Iraqi people 01' assistiDa in the recovery of Iraq. . 3) "Contract Award Committee,.: AB used in this Memorandum, a group oftbrce or more officials selected by the Officer appointing authority reapousiblc for reviewing preJ.iminary award decisions of I .argc Purchases for cou~pliance with this Memotandum and sound business judgment. The Conllact Award Committl'c need not convene as a group; however, except as provided in Section 7 below, a majo1ity of the membets must concur in the award decision prior to awatd. . 4) "Contracting Officer": AB used iD this Memorandum, an individual who bas been authorized by the Administrator, CPA, in accorda.Dce with Section 4 below, to enter into Conti acts or Grants using Iraqi Funds. 5) "Grant": A written instrument that haqi Funds ftom the CPA or Coalition Forces to a recipient grantee. in order to ceuy out a program or project tbat directly benefits the Iraqi people or assists in the recovery of Iraq. . ' 6) "Invitation for Bids'': An invitation to prospective contractors to submit proposals to.ancct CPA tuplimucnts. An invitation for bids descn'bes a requirement for a prospective contract by explaining the Daturc of the opporbmity, including the goods or services to be provid~ requiml pcrforar•ance, the time for pcrfotnJaDcc, requirements to demonstrate the responaibility of the potential 80WCC, UDique requirements, the closing date for bids, and other information necessary far a potential source to submit a bid. With an IFB, the award ia dctcrmine4. solely on the basis of price or price-related factors. 7) "Iraqi-based": A company (including a subsidiary coxnpany) whose p1incipal p1acc of is located within Iraq. 8) "Iraqi Funds": Funds under the control of the Autbotity · · of(a) p1oc=da fro•n Iraqi state-owned propct ty that has ~or seized in accordance with -..pplicablc law and made available to the CPA to assist the Iraqi people and assist in the recoDstructioD of Iraq; and (b) f\snds in the Dcvcloprnent Fund for haq, 1hc establisbmcnt ofwhieh is noted in Resolution 1483 (2003). ABused in this · · Memorandum, •1mqi Funds" do not include funds provided through the appropriations process of Coalition member govmnmcmta (for example, fun~ CPAIMEM/19 AUGUST 2003/04 3 ..... -. "'"" ' --- • . • . · provided directly to the CPA by the Kingdom). · · of the United States or the United • 9) "Large Purchase'': A contract with a value of gteatcr than US$500,000. 1 O)''Micropllfehasc~: A contract with a value ofUSSS,OOO or less. 11) •'RCqucst for Proposal": An invitation to prospective contracton or pant recipicnts to submit proposal~ to neu;t CPA A request for proposal usually includes a description of a rcquirmumt for a prospective Contract or Grant that explains the'natnre ofthc opportUDity including the goods or set vices to be provided, required perforiDIIlce, the time for pcrf'ounance, the evaluation criteria for Contract award, rcquimnenta to demonstrate the m;pcmsibility of the potential source, unique · ts, the closing date for proposals, and other information nccessa• y for a potential source to submit a proposal. 12)"Snmll Purchase": A contract with a value g~eater than USSSOOO and less than or equal to US$500,000. . 13)"Solicitation": A request to submit offers or quotations to fulfill a requirenacnt for goods or services tbat can be met through a Contmct. "Request for Proposal" and 4'ln'ritation for Bids" are types of solicitation.. · · Section 4 • AppoiDtDleDt o.f Contractlag omcen • 1) General. For the purpose ofcauying out programs to assist the Iraqi peopl~ and assist iD the recovery of Iraq usjng Iraqi Plmds, the officials identified in 2 may appoint ContractiJJs Officcrs who may enter into Conttacts or o:-ran ...... ts OD behalf of the CPA. Unless otherwise tetarinatcd by the AdmiDiatrator, this delegatiOD shalt remain in effect until the of an intematiODally recognized, 1epreseatative govaument by the people ofhaq . . 2) The folloWing officials arc authorized· to appoint Contracting Officers within their directomtea, commands or organizations, in writing ad in a form by the Head of Contracting Activity, CPA, in consultation with the CPA General Counsel: a) ' ..... Head of Contracting Activity, CPA, or the Principal Assistant Responsible for Contracting, CPA; • CP AIMEM119 AUGUST 2003104 4 . • I I • • . I i I . . b) CPA ~tors of Oil Policy; Civil Affairs; Econonaic ~lopmeat; AID; Opemtions and Influh ucnn; Interior Affairs; Private Sector . Development; and Security Affairs. c) Senior Iraqi MitristrY. Adviaom, in coordination with the interim Iraqi Ministers, for contracting ofticws within the ministry conccmed, and. d) Other persona specifically authorized by the Actudnisbator. 3) ln exercising their autbmity to appoint Officers~ the officials listed in pamgxaph 2 above shaD consider the and experience · appointcca and shall, to the CA1ont pmcdcable, confer ~ Officer authority on those OftiCCIS already holding Coalition IO"Qnment contncting Watlautl and/or experience as continge:ocy conttacting officcra or·ficld oldcring ofticaa. 1bc Head of Activity, CPA, with the approval of the Aduaiaistrator, may prescribe additioual · ts (such as completion ofprcscn"bcd tmning that pctsoos must hold prior to~~ · Officer appointments. 4) Contracting Officers respansiblc for canying out programs must actively coordiuate proposed funding initiatives with all other Contracting and Grant- making officials in their geographic are8S, in order 1o eDSUte duplication of effort. Seetloa 5 Teehaleal Supervision of Cootractbag Offleen The Head of Contracting Activity, CPA, shall be respoDSl.Dle for providing technical supervision over Conbacting Officers appointed pursuant to Section 4, above. This technical supervision may include prescribins bainiug and _ ,..,. appzoptiate founs for use in solicitations. contract awards, and pant awmda. · For contracting officers assigned to the CPA Conb:acting Activity, the Head of Contracting Activity, CPA, shall provide •«<ministlative OVCisight_ as wen II technical supervision. . • ""· Seetlon 6 Principles AppDeable to laltrumeDtl . 1) Identification of Partie.s. Contracts and Grants must prominently CODtaiD_ the folloWing language tO identify the paltiea: CPAIMEM/19 AUGUST 2003/04 s • • "This contract/grant is entered into under the authority of the Admimsb:ator as head of the Coalition Provisinual Authority (CPA), which is tentpOiarily exercising govcranocntal anthority in lmq to the law ad of war aDd relevant United Nationa Security Coamcil Resolution•, includiDg Resolution 1483 (2003) ("Coalitionj and by ------~----~<~~ 2). CgmpctitiQD. . a) Contracts. Unless otherwise excanpted under this Memorandum, competition is mandatory for all Cuntrac11. Reascmable etfot ts will be made to obtain COlllpCtitive otraa by publicizing a solicitation through bulletin boards, the CPA World Wide Web page, the UNDB, vcmdor · databases developed by the Head of Contracting Activity, aDd othor mCIIIs. If circumstances require awanf of a contract without coanpetition. a written justification describing the exigencies requirlns · without competition will be documented in the Coutract file. CoD1racts wiD be awarded to the offer providiDg the greatest value to the CPA or 'LA Forces, based on price and all other evaluation factots contained in the solicitation. b) Grants. Reasonable effmts will be n~&dc to identify all organizations ~able of performing the Grant. Grants in c:x~s of$500,000 wiD be tende~ed for proposals by capable organizations, except as authot jzed for good cause, m writing, by the ofticial that appointed the Contracting Officer involved 3) fntfCimC?C for IraQi Vend9n. IIaqi·bascd vendors who arc capable ofpcrfo11aing a Contract or Grant in a responsible and responsive manner will be afforded the following preferences when competing with foreign firms. If the Contracting Officer dele!• niDcs that at lcut two Iraqi-based vendors are available, 1bc Contracting Officer may limit tho competition to Iraqi-based vendors only. If the Contracting Officer deteuuines that limiting competition to Iraqi·bascd vendors is not appropriate, the Contracting Officer may use the amount of Iraqi participation in the contract (as a subcontractor or otherwise) as an evaluation criterion for purposes of who is entitled to the award of the contract. 4) I! · The Contracting Officer must dctcrmine that the price of a contract is fair and reasonable. Prices for goods and services will not exceed· their fair mark.et value as determined by the Contracting nA:: considering the time for delivery or urgency of tbc service, and other relevant factors. CPA/MEM/19 AUGUST lOOl/04 6 .. • ' 5) ~ I . cs Contracts or Gnmts adndnistueJ under this Memorandum will not directly or mdirectly benefit any Ministry, CPA or Coalition official or employee invQlved in the contlacting or· process, or the .family members of su~h officials or muploycca. Persona i!lvolved in the contracting pzocess, fron1 ~- development of the requirement through the completion ofpcrfOiuumce, shall not e) Use public office for private gain An official or employee of the CPA or Coalition Forces involved in the contracting process sball: a) Act imp11tially and not give preferential treatment to any private organization or individual. b) Disclose waste, tiaud, abuse, and couuption to appropx iate au~orities. • c) Endeavor to avoid any actions creating the appearance that they are violating the taw or ethical stanclarda. 6) a) Hold financial interests that conilict with the CODICientious perfouuaucc of duty. . b) Engage in financial transactions UBiDg nonpub1ic Goveunncnt information or allow the improper use of such infonnation to fua ther uy paivatc m~ . c) . . Solicit or accept any gift or other item ofmonetaay value fro1n any person or entity seeking official action from, doing business with, or conducting activities tegulatcd by the CPA, or whose · may be substantially affected by the perfonnance or Donpeiformance of the cuaployee' s duties. d) Knowingly make unauthorized comnaitments or purporting to bind the CPA. of any kind • To the extent practicable, requirements for a project or rclawi projects may be consolidated into one contract, in order to reduce the administiative burden of contracting. Requimncnts ~y not be split to avoid the applicati~ of these rules. 7) &es,ponsibility. Contracting officeas must detmnine tbat a a contract award must be responsible. This means that the CODtractor must: who J:Ueives . CPA/MEM/19 AUGUS"t 2003/04 7 . "' .. . ' • a) b) c) d) c) f) g) • Have adequate financial resources to pcrfo1m the contract, or the ability to obtain them; · · · Be able to comply with the roquimi or proposed deHvery or perfonnance ~ule, taking into ~deration all existiiq con•n•crcial and govcnuuental buaincss commitments; Have a satisfal:tory pedbrmance record, if the contractor has performed contracts in the past; · Have a satisfactory record of intepity and business ethics; Have the necessary organization, experience, accounting and operati~ controls· , and technical skills. 91' the ability to obtain thent; Have the Decessaiy production, construction, and technical equipment and facilities. or the ability to obtain them; and Be othet wise qualified and eligible to receive an award under applicable laws and regulations. · SectloD 7 Coabacts 1) Micro-Purchases. Contmcts may be awarded without eotnpctition if the Conttacting Officer deter! nines that the offered price and terms are ~ and ~onablc. However, Contracting Officers are cncoumgcd to obtain competition when possible. Oral solicitations may be used. Micro--Purchases will be documented in summary files demonstrating competition (if any), basis for award (if o1her tban lowest price), and material terma. the documentation will be tailored to the size and nature of the acqu;sition. 2) Small Purchases. ContraCting Officers, when posaiblc, will obtain at least three competitive otras for Small Purchases. For SmaU Purchases nom $5,000.01 to $25,000, oral solicitations may be used; however, Contracting Officers must maintain documentation of sources solicited. For Small grc.atcr than $25,000, written soHcitatioas will be used. Sufficient mfotruation will be included in the corrtract file to enable a review oftbe transaction, including evidence of cxnnpctition or the basis for contracting without coanpctition, price quotations, and the basis for the contract award if price is not the factor. Written · justifiea~oas detailing the unique qualifications of the or other exigent • '·. . ,. ..... • CPA/MEM/19 AUGUST 2003/04 8 • • . ' circumstances rcquirmg an award without cooipetition will be prepared for Small Purcbates. · for justifications are contained in Appendix A. a) Blanket ~base Agreements. Officeta arc CDCOUt'&ged to blanket purchase agreements for R;petitive requiren1emtB to reduce administrative burdens and to obtain favorable b) c) All Sman Purchase contracts will eontlm payment 1m11as including an agreed upon payment schedule (preferably with milestones tied to performance) for service contncta, and perfounance requirenaents clearly defining the respouibilities and tinLo for pcrfo11nancc. Additionally, the Contracting Officer win use appropriate contract proviaioulistcd in Appendix B to this Memonmdum for the particular aolicitati011 or contract involved · Requirements in excess of S 10,000 should be posted at a public location and ctisscanmatcd in a manner that wiD. foster competition, · advertising in looal media when appropriate, through bulletin boards, the CPA World Wide Web page, vendor developed by the Head of Contracting Activity, and otber mcan. s. . 3) Large a) b) . ,. c) l.arge Pmcbase Contracts will be competed, except as authorized below. Alll.argc Purchase contract opportunities will be posted and advertised to the · extent practicable, with a goal of obtaining at ]east tliR:e competitive offers. The Head of Con1111cting Activity, CPA, will eosure that cxpaicncccl contaacting officials me assigned to execute conttac1s UDdcmcath the HCA and provide tecbnical assistance to all other appointed Officers or Iraqi Mjnistry Contracting Activities with Iespect to all Large Purchase solicitations. Acquisitions generally will be made through negotiation. The contracting agency will develop a Request for Ptoposal (RPP) for sub1arlssion to • contractors. The RFP wiD set forth the essential infOt mation necessary to fblly describe the contmctillg oppottuDity. Contracting Officers may bold a pre-proposal conference to answer questions and to · clarify the R.FP, provided all prospective contracton arc iDfounccl of1hc conference. Award evaluation facton will be tailore4 to the acquisition, but must include price as a factor. Other factors may include technical cxpettise, financial stability of the . contractor based upon a review of CPA/MEM/19 AUGUST %003/04 9 · . • ' • .. • fiDancia1 statements, and prior contract perfonnauce. The COntracting Officer may request final proposals from coDtractOJs in the · I&Dge. Based upon. the review of the propoaala. a preliminary award decision will be made. · · • d) · If a officer deternaiDca that (1) time permits the solicitation. submission· and evaluation of sealed bids; (2) award will be made only on the basis of price or price-related factom; (3) discussions with prospective bidders will not be necevary, and ( 4) there is a reaumable ex1-cctation of receiving more than one sealed bid, the contlactor may, instead of an RFP, use an Invitation for Bids (lFB) to compete the acquisition. The IFB will set forth the essential infm 01ation to tUlly describe the. contracting opportunity. Conttactiug Officeta may hold a pre-bid to answer questions and to clarify the IFB provided all prospective contract011 ate infonaed oftbe ~cnoce. Because an IFB requires that the be clearly ltatod prior to issuing the solicitation, IFB' s will only be by ofticenwder the direct ~trol of the Head of the Coutt~g Activity, CPA. c) f) Written justifications detailing the mrique qualifications ofthe contractor or . other exigent requiring an award without competition will be prepared for all Lqc Purcbascs awaaded without cornpctition. · R · ts tor justific&tiona are contained in ApPc;ndix A. All Large justifications will be teViewed and approved in writing by either the Contracting Officer's appointing authmity or the Head of Contracting Activity, CPA, ~his designee. ~cept for awards by Conl!acting Officers appointed by tbe Head of Contracting Activity or the Principal Assistant Responsible for Contracting, CPA, Large Purchase preliminary award dcclaions will be reviewed by a Contract A ward Committee of at least three officials, by the official who appointed the Contracting Officer for the particular project, prior to award. The Colannittee will review tbe proposals ~ Contract file to ensure compliance with and competition rcquire1nents, that the contract represents sound business judgment, that the process used was fair and impartial, and that the proposed award the best value based upon the evaluation factma. Large Purchase pelimiuary award by Conn acting Officers appointed by the Head of 1hc ~ Activity, CPA will be coordinated with the Head of Contracting Activity,- CPA, or his designee, prior to award. g) Notwithstanding paragraph 3( c) above, Large Purc;base Conn acts may be executed in the absence of a Contract Award C ·uec, provided the • •• CP AIMEM/19 AUGUST 2003/04 10 • • Head ofConllacting Activity, CPA, detcimines that there are sufficient alternative meRDB to ensure that the particular solicitation action has been appropriately managed. · h) Contracting officeiS ~ encourapd to establish payment IChedules that provide for payments u the vendor BCCOJnplisbea specified performance milestones. 4) Contract Modifications and Amcmdments. Contract modifications and amendments arc subject to the same documentation provisions u origioaJ eontracts. Contraeting om=s must CDBUrC the cost of the contract modification or amcnd•ncnt is fajr and reasoPable. Amendments or modifications that are outside the scope of the contract or that constitute new sbould be through new contracts. Sectloa 8 MonltoriD& Coutnct Performance ~stcnt with their progxannnatic responsibility to cnsm e tbat contractors and grantees properly perf01m their duties, Contractias Officers shaJJ be responsible for regularly monitoring the post-award execution of all CoutnaciB they approve. This monitodng process includca ensuring that the contractor provides the agreed upon goods, or construction iJi accordance with the provisions, and that payments are made in a timely cr. G<mtmcting Ofticen cball include iD the Contract file a written rcpo1t. post-award perfounauce by contractors or incbMiing a final upon completion of the Contract. Couttacting officeta aball rely upon locally available military engineering resources in assessing all repair and ccmsttucti.on projects. All documeats related to the establishment and execution of Contracts will be maintained in a Contract · file that includes the materials described in ApPc;ndix A to this Mcnaancbun. .. .. . \ SectloD 9 Graats Consistent with Program Review Board tee - suppo1t important public initiatives. .. Grants may be made available to 1) Applieations for Grants must dCscn"be the initiative, anticipated costs and the desired results. The applications should also set furtb objective standards for measuring the success of the Grant. - CP AIMEM/19 AUGUSt 2003/04 11 • 2) In Mritwing grant ~pplications, CODSideration shall be given to the number of people affected by the grant and the io!p&Ct on com•mmity developrnent. Grants sh~uld be reviewed durin& implementation and where appropriate fimds should be made available on a schedule tied to the accomplishment of specific milestOnes specified by the CPA or Coalition F and related to the objective measures of ·success. 3) Although t~ generally is little substantial involvmnent bctweeu the CPA or Coalition Forces and the grantee followiDg the award of the Oraut. a gnmt will be conducted accot"ding to a prescribed by the Head of Contiacting Activity, CPA, in coordination with the Ofticc of the General Couoscl, CPA, aud the grantee's pcrfonoance must be monitoml to enmre tbat the gxantecl funds arc expended for appropiiatc puipOses consistent with the Grant, and to assess the pantce's suitability for fUture Chants. Contracting Officen responsible fQr sball include in the Grant tile a written report describing post-award perfounance by or including a final BS&easmcnt upon · completion of the Grant Sectloa 10 Fuada Allocated tbrouglt tbe National Budget Process 1 Funds allocated through the National Budget Process will be made available to the intelim Iraqi Ministries in accordanc.e with the National Budget. The CPA Office of Mauagcmcnt and Budget will allocate funds to the Iraqi Ministry of Finance for further distribution to the Iraqi Ministries, in accordance with the National Budget and in a JDBDDcr that will eDIUl'e appropriate transparency. The interim Iraqi Ministries may draw on allocated tbnds by submittinJ a request for funds to the Iraqi Ministry of' FiJumcc,. 2) Contracts or grants executed by interim Iraqi MiDistlies may be ~ed out in accordaDcc with applicable Iraqi laws and Ministay procedures only if the AdnUnistaator or his designee dctcuoiue~ that the Ministry's application of these coubols will casurc · However, in the event that a protest is filed against the proposed award of a contract or pant. the provisions of the Protests clause in Appendix B of this Mcmomadum shall apply. If the Administrator or his designee does not determine that applicable Iraqi law8 and Ministry contracting procedures can ensure bansparcncy in the use of Iraqi funds, the rules of this Metuoraadum shaD apply. · 3) AB part of the CPA's responsibility to ensure that CPA Funds are used for their ·intended purpose, the CPA Comptroller, in coordination with the Head of a: .• • CP A/MEM/19 'AUGUST 1003/04 12 • • Coutaacting Activity, CPA, may, in his discretion, review f . . Iraqi M. . . o mtcrun ~rusbtes. actions Seelloa 11 The Appendices provide supplemental insbuctious ou preparing and executing Contracts and Chants pwsunt to this Memorandum. The Program Review Board is hereby authoxizcd to modify cxistinJ Appendices to this Mcoaoranm•m, and issue Appendices, aa may be required to ensure the effective execution of fuDdiDg for the benefit of the Iraqi people. Any such modification or issuance shall be deem"" to satisfy the requirements of CPA Regulation No.3, section 6 (.S). . Sectioa 12 Protection of Coaftdentlal Acqulsldoa IDformatloa Contracting officers, or other persons involved in the conttacting process, are specifically proln'bited from releasing information contained in a propasal to any person not involved with the · · process. For purposes of this sectiOn, "proposal" means any proposal, including a technical, management, or cost proposal, submitted by a contractor in respon•c to the mfUinments of a solicitation for a competitive Any other disclosure of confidential acquisition iDfouoaticm, including infouuation concetuing a successful proposal is incorporated by reference into a contract, shall be protected in a manner CODBiatcafwith S U.S.C. Section 552 and Parts 3 and 24 of1be U. S. Federal Acquisition Regulation. · 'This Metnonmdum shall SeeUon 13 . Entry Into Force into force on the date of · .. .. (Or-e-~ ~ ~"2P{o> . : au · . · mi\et, Admin1strator Coalition Provisional · Authority • CPA/MEM/19 AUGUST 2003/04 13 • • • August 2003 • I I I l I I . . CONTRACT AND GRANT PROCEDURES APPLICABLE TO VESTED AND SEIZED IRAQI PROPERTY AND DEVELOPMENT FUND FOR IRAQ CoaU.dFUeRequ~emenu APPENDIX A I I I • ' ' I Micro Purchases ($5,000 or less) Contract file must include: • Notes or documentation reflecting competition efforts, if any, including a written . summary of oral solicitations if award is based on an oral solicitation. • · The basis for the award decision if other than lowest price. • Material Contract terms (Who is to do What, When, and for How much?) • lnfozmation demonstrating the outcome (such as receipts, delivery notices, notes ofthe contracting officer regarding contractor performance for services). • Micro PurChase files will be maintained for 1 year following final contract payment. SmaD Purdtases ($5,000.01-$500,000) • Contract file must include: • . Documentation of oral solicitations made for contracts less than $25,000, written . solicitations for contracts from $25,000.01 to SSOO,OOO. · · • Evidence of competition, such as posted notices (including the location and length of time posted), direCt solicitations, advertisements, posting on web pages. • For solicitations in which only one source is solicited (i.e., sole-source contract awards), a written justification prepared in accordance with this Appendix. • Evaluation Criteria, if applicable. • Significant correspondence with vendors. • Notification to successful vendor. • Written contract containing required terms for agreements exceeding S 10,000 or a summary of material terms for agu,ements less than S 10,000. .. • Invoices for progress payments and verification of perfotn}ance including notes or inspections or monitoring where appropriate. · • Small Purchase Files will be maintained for 1 year following final contract payment ' I I ' I I I • I ... l l Large Purchases (more than ~00,000) Doc11mentation will be sufficient to enable review by tbe Contract Award Committee prior to award and then by auditors during the period of contract performance and thereafter. Files Will include: · • A statement of need for the requirement to be add&cssed. This may be a for services from the agency requesting the contract. A-1 I I • --..,..-----·-- "" · - • • August2003 · • • Evidence of Competition, such as posted time posted), direct solicitations, advertisements, the location and length of on web pages, or other means used to publicize the. oppo1 tunity to bid. • All fully eligible responses from vendors to allow the Contiact Award Committee to review the contracting options to ensure the proposed contract award is based upon sound business judgment. . • For contracts in which only one source is solicited, a written justification prepared in accordance with this Appendix. • Contract awatd Evaluation CritcriL Price must be one of the contract evaluation criteria. Other criteria may include expe:ticnce, prior contract perfonnancie, technical expeztisc, and delivery terms. Memorandum for Record me.tnorializing the action by the Contract Award Committee acting to select the successful vendor. The MFR. should identify board members. the bids considered, the criteria used, and the selected vendor. • Significant couespondence with vendors. • Notification to successful vendor. • Written contract containing required tern,s. • Contract Modifications and Amendments • Contract perforrnance and outcome infonllation including invoices for progress payments and verification of pm formance including notes of inspections or monitoring where appropriate. • Large Purchase Coub act files will be maintained for a period of 3 years following final contract payment. · Sole-Source Contraetillg Justiftcattoa ud Approval Requiremeats • Contracting Officers must document compelling reasons justifying sole source contracting in all contracts. Compelling reasons that may be considered when justifYing sole-source contracting: o There is only one responsible source and no other supplies or service will satisfy requirements. This may include 1macceptable delays in delivery or other unique circumstances, such as intellectual rights or con:cpatJ"bility with existing systems. o Unusual or compelling urgency to satisfy requirements. This justification will only be used in cases where competition would· represent a serious risk to agency objectives. Failure to accurately foR)Cast agency needs is a not a sufficient justification. • The justification must demonstrate the circumstances for foregoing adequate competition. If the circumstance is urgent and compelliilg. specifically explain the time constraints. Identify unique capabilities that arc possessed by only one contractor. • Justifications will include a description of efforts to obtain competition. • Justifications will include facts supporting the Officer's deteruaination that a fair and reasonable price was obtained. • J~tications for sole-source awards in excess of $500,000 must be approved by the Contracting Officer's Appointing Authority or the Head of Con~ting Authority, CPA. A-2 • a:.. ' I ! . • August2003 Gr8Dts Files will contain a statement of the coxnmunity need to be addressed and intended purposes of · the grant. Generally, the grant application is sufficient The file will also contain outcome infotmation including an assessment of the community impact of the grant. Speclal Requlremeats for Coastradioa Project~ • Maintain engineering drawings and approvals of plans 1•ntil contract pcrfoin1ancc is complete. : • Cost Estimates by independent engineers should be obtained for Large Purchase projects · to assist in the assessment of fair and reasonable value. • Fixed-pricecl ammgements are preferred for construction contracts. • Certificates of Completion. • Change Orders and Amendments win be fully documented. ' A-3 .... .. l • • CONTRACf AND GRANT PROCEDURES APPUCABLE TO VESTED AND 11'. lr. IRAQI PROPERTY AN) DEVELOPMENT FUND FOR IRAQ Standard Terms aud Conditions for SoHcitations and Contracts la Excess of 55,000 · APPENDIXB . SoUcitatioa Ternw and Conditions 1. Submisaioa of Offen. The contractor will submit signed and dated offers to the office specified in this solicitation at or before the exact time specifi~ in the solicitation. Offms may be submitted on letterhead stationery or as othet wise specified in the solicitation. At a minimum, offers must show: · a. The solicitation number. b. The time specified in the solicitation for receipt of offers. c. The name, address, and telephone number of the offetor. d. A technical description of the iterus being offered in sufficient detail to evaluate compliance with the requirements in the solicitation. This may include product literature, or other documents, if necessary. ~· Te:tnas of any express warranty. f. Price and any discount teims. g. . Payment address (if different from mailing address) h. Acknowledgment of solicitation amendments (if any) . i. Past performance info1mation, when included as an evaluation factor, 'o include recent and relevant contracts for the same or similar items and other references (including contract numbers, points of contact with telephone numbers,. and other relevant infou:nation) j. A statement specifying the extent ofagtrement with all teuns, conditions, and provisions included in the solicitation. Offers that fail to furnish required representations or infounation, or reject the terms and conditions of the solicitation may be excluded from consideration. 2. Period for Acceptance of Offen. The offeror agrees to hold the prices in its offer firm for 30 calendar days from the date specified for receipt of offers, unless another time period is specified in an addendum to the solicitation. .. 3. Product Samples.. When required by the solicitation, produet santples shall be suburltted at or prior to the time specified for receipt of offers. Unless otherwise specified in this solicitation, these samples shall be submitted at no expense, and returned at the sender•s request and expense, unless they are destroyed by preaward testing. 4. Muldple Otten. Otrerors are encouraged to submit multiple offers presenting alternative terms and conditions or items for satisfying the requirements of this solicitation. · Each offer submitted will be evaluated separately. S. La~ Submissions, ModificatloDs, Revisions, and Withdrawals of Offen. B-1 ' · - ...-------- ......... . • ' . ' August 2003 a. Offetot s are responsible for submitting offers, and any modifications, revisions, ·or withdrawals. so as to reach the Contracting Officer designated in the solicitation by the time specified in the solicitation. If no time is specified in the solicitation, the time for receipt is 1630 hours, local time, for the designated contracting office on the date that offers or revisions arc due. b. Any offer, modification, revision, or withdrawal of an offer received at the . . contracting office designated in the solicitation after the exact time specified for receipt of offers is "late" and will not be considered unless it ia received before award is made, the Contracting Officer detetudnes that accepting the late offer would not unduly delay the acquisition, and 1) if it was transmitted through an electronic coounerce method by the solicitation, it was received at the initial point of entry to the contracting office not .later fhan 1700 hours one working day prior to the date specified for receipt of offas. or 2) there is acceptable evidence to establish it wu received at the location designated for the receipt of offers and was under gov cnt control prior to the time set for rcoeipt of offers, OT . 3) if the solicitation was a request for proposals, it was the only proposal ~~v~ . c. However, a late modification of an otherwise successful offer that makes the offer's tCIIDs more favorable to the contracting organization issuing the solicitation will be considered at any time it is received and may be accepted. d. Acceptable evidence to establish the time of receipt at the contracting office includes the time/date stamp of that installation on the offer wrapper, other documentary. evidence of receipt maintained by the installation, or oral testimony or statements of contracting office personnel. · e. If an emergency or unanticipated event interrupts normal proccises so that offers . cannot be received at the contracting office for receipt of offers by the exact time . specified in the solicitation, and urgent requirements preclude amendment or the solicitation or other notice of the extension of the closing date, the time specified for n=ceipt of offas will be dCCincd to be extended to the same time of day specified in the solicitation on the first work day on which nor01al processes resume. £ Offers may be withdrawn by written notice received at any time before the exact time set for receipt of offers. Oral ~dfets in response to oral solicitations may be withdrawn orally. If the solicitation authorizes facsimile offers, offers may be withdrawn via facsimile received at any time before the exact time set for receipt of offers, subject to the conditions specified in the solicitation oonccruing facsimile o:ffets. An offer may be withdrawn in person by an offeror or its authorized representative i~ before the exact time set for receipt of offers, the identity of the person requesting withdrawal is established and the penon signs a receipt for the offer. 6. Contract Award. The Contracting Officer intends to evaluate otfets and award a contract without discussions with otrerors. Therefore, the offeror's initial offer should contain the offeror's best terms from ·a price and technical standpoint However, the Contracting Officer reserves the right to conduct discussions if later dctcnnined by the Contracting Officer to be necessary. The Contracting Officer may reject any or all offCis if such action is in the public interest; accept other than the lowest .. priced offer; and waive infonoalities and minor iuegularities in offers received. ..... B-2 ' --------------· • Adtni.nisgatin~ Using and Accounting for V~Jild Seized _lt!gi Pxopqty Appcndi1 B August2003 7. Multiple Awards. The Contracting Officer may accept any itcan or group of items of an offer, unless the offeror qualifies the offer by specific limitations. Unless otherwise provided in the schedule, offers may not be submitted for quantities less than those spcci.tied. The Contracting Officer reserves the right to make an award on ~y item for a quantity less than the quantity ofien:d, at the unit prices offerod, unless the offe~or specifies othc1 wise in the offer. 8. Evaluation.· The Contracting .Officer will award a contract resulting ftom this solicitation to the responsible offeror whose offer confomung to the solicitation will be most advantageous to the contracting activity. price and other factors considend. The following facton shall be used to evaluate offers. (Contracting Officer lists factors here, in order of importance) 9. Options. The Contracting Offieer will evaluate ofTen for award purposes by adding the total price for all options to the total price for the basic require1nent. The Contracting Officer may detamine that an offer is tlll8Cceptable if the option prices are significantly unbalanced. Evaluation of options shall not obligate the Contracting Officer to exercise the option(s). 10. Notice of Award. A written notice of award or acceptance of an offer, mailed or otherwise furnished to the successful offeror within the time for accep1ance of the offer, shall result in a bindjng contract without further action by either party. Before the offer's scheduled expiration time, the Contracting Officer may accept an offer (or part of an offer) whether or not there are negotiations after its receipt, unless a written notice of withdrawal is received before award. 11. . Protests. A contractor wishing to object to the terms of a solicitation, the tennination of a solicitation, the award of a contract, or the te11oination of the award of a contract, sh•ll present the matter to the Contracting Officer for an initial decision. · The contractor shall state to the Contracting Officer the basis for the protest. If the contractor does not agree witb the Contracting Officer's initial decision, the Contractor may appeal the initial decision to the Head of Contracting Activity, CPA, for resolution. The decision of the Head of ContractinB Activity, CPA, shall be the final decision in the matter. 12. Evaluation of Foreign Currency Offen. If the Contracting Officer receives offers in more tban one currency, the Contracting Officer will evaluate offers by converting the foreign currency to United States currency using rate in effect on the date specified for receipt of offets, if award is based on initial offers, or. if award is based on revised offers, on the date specified for receipt of proposal revisions. Coatract Terms aad Coaditious 13. · laspecdoDI Aeceptanee. The Contractor shall only tender for acceptance those itcml that confotm to the requirements of this contract. The Contracting Officer reserves the right to inspect or test any supplies or services that have been tendered for acceptance. The Contracting Officer may require repair or replacement of nonconfonuing supplies or reperfotmance of nonconfonning services at no increase in contract price. The Contracting Officer must cxc:zcisc the post-acceptance rights: ... -. - . • • August2003 a. Within a reasonable time after the defect was discova:ed or should have been discovered, and b. Before any substantial change occurs in the condition of the item, unless the change is due to the defect iri the item. 14. Assignment. The Contractor shall not assign, transfer, or make any other disposition of this Contmct, or·anypart thereof, without the prior written of the Contracting Officer. 15. Changes. Changes in the texrns and conditions of this contract may be made only by written agreCJnent of the parties. 16. Disputes. This contract is not subject to the Contract Disputes Act of 1978, as amended (41 U.S. Code, Sections 601-613). Failure of the parties to this contract to reach agteeroent on any request for equitable adjustment, claim, appeal, or action arising under or relating to this contraCt shaH be a dispute to be resolved in with the United States Federal Acquisition Regulation Clause 52.233 .. 1, Disputes, which is incorporated herein by reference except that appeals from final decisions of a Contracting Officer may only be appealed to the U.S. Armed Services Board of Contract Appeals (ASBCA). The decision of the ASBCA shall be final. The contractor shall proceed diligently with perfomumce of this contract, pending final resolution of any dispute arising under the contract. 17. Exeusable Delays. The Contractor shall be liable for default unless nonpcrfOIIDance is caused by an occurrence beyond the reasonable control of the Contractor and without its fault or negligence such as, acts of God or the public enemy, acts of the Governmental activity in either its sovereign or contractual capacity, fires, floods, epidemics, quarantine restliCtions, sb ikes, unusually·sevcre weather, and delays of common carriers. The Contractor shall notify the Contracting Officer in writing as soon as it is ~nably possible after the conamenc:ement of any excusable delay, setting forth the full particulars in connection therewith, shall nmedy such occunence with all reasonable dispatch, and sball promptly give written notice to the Contracting Officer of the cessation of such occurrence. 18. Invoice. 1be Contractor shall submit an original invoice and three copies (or electronic invoice if authorized) to the address designated in the contract to receive invoices. The invoice must include: ·· a. Name and address of the Contractor.· b. Invoice date and number. c. Contract nmnber, contract line item nmnber, and, if applicable, the order number. d. Description, quantity, unit of measure, unit price, and extended price of the items delivered. c. Shipping number and date of shipment, including the bill of lading number and weight of shipment if shipped on a bill of lading. f. Tenns of any discoWlt for prompt payment offered. g. Name, title, and phone number of pc:rson to notify in event of defective notice. 19. Pateat Indemnity. The Conti actor shall indemnify the Govexnmcnt agency involved in this contract and its officers, employees, and agents against liability, including costst for ~ or alleged direct or indirect contributory infringement of, or inducement to infringe. any patent, B-4 • • • • Administmtjgg. U!ing and Accountj.ng for Vesled and Seized Iraqi :ptupqtx Apj)gix B August 2003 trademark, or copyright, arising out of the performance of this contract, provided the Contractor is reasonably notified of such claims and proceedings. 20. Payment. Payment shall be made for items accepted by the Contracting Officcc that have been dclivetcd to the delivery destinations set forth in this contract. In connection with any discount offered for early payment, time sba1l be computed nom the date of the invoice. For the purpose of computing the discount earned, payment sbaU be considered to have been made on the date which appears on the payment check or the specified payment date if an electronics fund transfer payment is made. 21. Risk of Loa. Unless the: contract specifically provides otherwise, risk of loss or damage to the supplies provided under this contract shall remain with tho Contractor until, and shall pay to the Contracting Officer upon: · L Delivery of the supplies to a carrier, if transportation is £o.b. origin. b. Delivery of the supplies to the Contracting Officer or a representative at a destination specified in the contract, if is f.o.b. destination. 22. Tues. The contract price includes all applicable taxes ~d duties. 23. Teranination for Convealeace. The Contracting Officer rcscrvcs the right to teuuiuate this contract, or any part hereof, for the sole convenience of the Govcuunent activity. In the event of such tennination, the Contractor shall immediately stop all work hereunder and shall immediately cause any and all of its supplims and subcontractorS to cease work. Subject to the tetms of this contract, the Contractor shall be paid a percentage of the contract price reflecting the percentage of the work perfotmed prior to the notice oftcu nination, plus reasonable charges the Contractor can demonstrate to the satisfaction of the Contracting Officer using its standard record keeping system, have resulted from the teunination. . The Contracting Officer, upon reasonable advanced notice, may inspect the financial records relating to this Contract includjng the amounts paid to subcontractors and the locations where anypottion of tho Contractor"s perfounance occurs. The Contracting Officer may review the Contractor's financial statements upon request. 24. Termlaadoa for Cause. The Contracting Officer may terminate this contract, or any part hereof, for cause in the event of any default by the Contractor. or if the Contractor fails to comply with any contract tenns and conditions, or fails to provide the Contracting Officer, upon request, with adequate assuranCes of future perfor10ance. In the event of t.eturination for cause, the Govemrnent agency shall not be liable to the Contractor for any amolDlt of supplies or services not accepted, and the Contractor shall be liable for any and all rights and reutedies provided by law. If it is deteimined that the Contracting Officer improperly tclminated this contract for cause., such teunination shall be deemed a tenuination for convenience. 25. Title. Unless specified-elsewhere in this contract, title to ite•ns fwu;shed under this- contract shall pass to the Govetnment agency upon acceptance, regardless of when or where the Goveuament agency takes physical possession. 26. Warranty. The Contractor warrants and implies that the items delivered hereunder are • merchantable and fit for use for the particular purpose described in this contract. B-5 ~ -· AdUJi!Ustra#ng, Usin~anji AccoJJDtin&for Vested. and Seized Iraqi Ptupeajy AJmmdi~B August2003 27. Immunities. Except as provided in this contract, the Governlhent of Iraq or its agents, including the CPA or other govenunental agcncica, have not waived any of their or • • • UDm\DlltiCS. 28. Legal Status. The Contractcn: is an independent contractor. The Contractor's employees will not be considetcd government employees for any pmpose. The Contractor is solely responstole for compensation agreements with employees. 29. Contractor's Responsibility for Employees. The ·Contractor is responsible for the professional and technical competence of its employees and will select reliable individuals who will perform effectively in the implementation of this Contract, respect the local customs, and conform to a high standard of moral and ethical conduct. The Contracting Officer may require that the Contractor remove from the job ci. nployee. s who endanger persons or propct ty, or whose continued employment under this contract is inconsistent with the interest of military security. . . 30. . Subcontracting. Except as authorized in this contract, the Contractor may not subcontract any portion of the perfomtance of this Contract to another without the prior written consent of the Contracting Officer. The terLiiS of any subcontract will be subject to and conform with the provisions of this Contract. 31. lndemntnaation. The Contractor shall defend, indemnify, and hold haltn1ess all . government entities involved in this contract, together with the entities' offic:as, agc:uts, and employees from and against all suits, claims; or liabilities of any kind arising out of ~;Cts or omissions of the Contractor, its employees, or the Contractor's subcontractors. 32. Iosar&Dce. The Contractor represents and wmants that it shal] maintain appropriate insurance includ;ng general commetc:ialliability and worken compensation coverage in an : adequate amount to cover third parties claUn& arising from or in connection with this Contract. . Upon request, the Contractor will provide satisfactory evidence of the insurance required under this article. 33. Use of Names and Symbols. Except as required by this Contract, the Contractor will not advertise or otherwise makes public the fact that it is a contractor to the goveuunQJtal entity in this Contract, nor will the Contractor use the name or emblem oftbc govcmmental entity for commercial purposes. . 34. L· imitatloa of LiablUty. Except as otherwise provided by an apress warranty. the Contractor will not be liable to the governmental entity for consequential damages resulting fiom any defect or deficiencies in accepted items. 35. Ineousisteaey between English Venlon a.ad TranslatioD ofCoatraet. In the event of inconsistency between any terms of this contract and any transaction into another language, the English language meaning shall control. B ... 6 . . . - -· .... • • August2003 36. Correspondeuce bi EagHsh. The Contractor shall ensure that all contract that is addressed to the govezumcntal entity awarding this contract is submitted in English or with an English translation. · . 3 7. ConOicts of IDterest The Contractor wauants that no governmental official bas recejved or will be offered by the Contractor any direct or indirect benefit in connection with or arising fiom the· award of this contraCt. The Contractor that any breach of this Provision is a breach of an teml of this Contract 38. Order of Prececleaee (except for CoDSb uetloa Coatraeu). Any inconsistencies in this solicitation·or contract sha]] be resolved by giving precedence in the following older: a. The schedule of supplies/services. The Assignments, Disputes, Payments, ID.voice, Other Compliances clauses of b. this contract. c. Addenda to this solicitation or contract, including any license agteemcnts for . computer softw. are. d. Solicitation provisions (if this is a solicitation) e. The other standard clauses in this contract. f. Other documents, exhibits, and attachments. g. The specification (the namLtive description of the work) 39. Other Compliaaees. The Contractor shall comply with all applicable laws, rules, and regulations applicable to its perfonnance under this contract. ' 40. Soaree of Fuads. The obligation under this contract is made with CPA Funds, as defined in CPA Memorandum NumberM, , dated Augll!t 19, 2003. No funds, appropriated or other, of any Coalition country are or will be obligated under this contract 41. Optioa to Extend the Term of the Contract. a. The govetnmental entity awarding this contract may extend the tetm of this contract by written notice to the Contractor within · days (insert number of days) prior to the end of the tetm of the contract, or the end of any option period previously exercised under the contract; provided that the Govcnuuent entity gives the a preliminarywrittc:n notice · of its intent to extend at least (insert number of days) before the contract period (including option periods exercised) expires. The preliminary notice does not eotnmit the gov ental entity to an extension. If the Gova nment exercises this optio~ the extended contract sbaJl be considered to include this clause. b. At the end of the contract period, or at the end of the final option period under this contract, whichever is later, if the governmental entity requires continued perfmnLBDce of services within the liunts and at the rates specified in the oontraQt. the governmental entity may extend the period of performance under this contract for an Bdditional period not to exceed six · ·· months, by giving written notice to the Contractor at least days before the end of the contract period or the end oflbe final option period exercised, whichever is later. 42. Liquidated Damages. . B-7 • • - • • AdministnJting, Usjng and Accountil)s for\:' ested and Seized Iraqj Props,gy _ Apnmtljx R . August 2003 a. If the Contractor fails to p<aform within the time specified in this contract, the Contractor shall, in place of actual damages. pay to the goveunuental entity liquidated damages of S per calendar day of delay . . b.. If the govetmaental entity 1euninatcs this contlact in whole or in part under the Tcumnation for Cause clause, the Contractor is liable for liquidated damages accruing tmtil the governmental entity ~onably obtains similar delivery or perfonnauce. These liquidated damages are in addition to excess costs of repurchase under the Termination for Cause c]alJ&e. c. The Contractor will not be charged with liquidated damages when the delay in delivery or pcrfonnance is beyond the control and without the fault or negligence of the Contractor as defined in the Excusable Delay clause. • 43. Performance of Work by the Contractor. The Contractor shaU perform on the site, and with its own organization, work equivalent to at least percent of the total amount of work to be perfo&med under the contract. This percentage may be reduced by a supplemental agxccment to this contract if, du1 ing perfonning the wodc, th~ Contractor requests a reduction and the Contracting Officer dete.t mines that the reduction would be to the advantage of the Govenament. . 44. . DlfJerlng Site Coaditioaa, . a. The Contractor shall promptly, and before the conditions are disturbed, give a written notice to the Contracting Officer of: . ( 1) Subsurface or latent physical conditions at the site which differ materially &om those indicated in the Contract, or (2) Unknown physical conditions at the site, of an unusual nahrre, which differ materially from those ordinarily encountered and generally recognized as inhering in work of the character provided for in the contract b. The Contracting Officer shall investigate the site conditions promptly after ~iving the notice. If the conditions do materially so differ and cause an increase or dectcasc in the Contractor's cost of, or the time required for. performing any part of the work under this contract. whether. or not changed as a result of the conditions, an equitable adjustment shall be made under this · clause and the contract modified in writing accordingly. c. No request by the Contractor for an equitable adjustment to the comract shalt be allowed, unless the Contractor has given the written notice required; provided, that the time prescribed in paragraph (a) of this clause for giving written notice may be extended by the Contracting. Officer. d. No request by the Contractor for an equitable adjustment to the contract for differing site conditions shall be allowed if made after final payment under this contract 45. Stte·mvestlcadoa aud Conditions Afl'ectlag tbe Work. a. The Contractor acknowledges that it has taken steps reasonably necessary to ascertain the nature and location of the work, and that it has investigated and satisfied itself as to the general and local conditions which can affect the wodc · or its cost, including but not limited to (1) conditions bearing upon transportation, disposal, handling. and storage of materials; (2) the B-8 • ' . Au~2003 availability of labor, water, electric power, and roads; (3) uncertainties of weather. river stages, tides, or similar physical conditions at the site; (4) the confo1mation and conditions of the ground; (S) the character of equipment and facilities needed preliDUnary to and during work performance. The Contractor also acknowledges that it bas satisfied itself as to the character, quality, and quantity of surface and subsurface materials or obstacles to be encountered insofar as the information is·rcasonably ascertainable from an inspection of the site, includiug all exploratory worlc done by the governmental agency involved, as well as from the drawing and specifications made a part of this contract. Any failure of the Contractor to take the action described and acknowJedged in this paragraph will not relieve the Contractor fi:om responstbility for estimating properly the difficulty and cost of successfully perfomting the work, or for proceeding to successfully perform the work without additional expense to the goveznmental agency involved. · b. The goveuunental agency involved in this contract assumes no responsibility for any conclusions or interpretations made by the Contractor based on the informatiOll made available by the Government, nor does the governmental agency assume responsibility for any understanding reached or made concerning conditions which can affect the work by any of its officers or agents before the execution of this contract, unless that undetstsmding or representation is expressly stated in this contract. 46. Material and Workmanship. . a. All equipment, material, and articles incorporated into the work covered by this contract shall be new and of the most suitable grade for the purpose intended, unless otbelwise specifically provided in this contract. References in the specifications to equipment, material, articles, or patented processes by trade name, make, or catalog number, shall be regarded as eS1ablisbjng a standard of quality and shall not be construed as limited competition. The Contractor may, at its option, use any equipment, material, article, or process that, in the judgment of the Contracting Officer, is equal to that named in the specifications, unless otherwise specifically provided in this contract. b. The Contractor shall obtain the Contracting omcer•s approval of the machinery and mechanical and other equipment to be incorporated into the work. When requesting approval, the Contractor shall furnish to the Contracting Officer the name of the manufacturer, the model number, and other infonnation concerning the pcrfounance, capacity, nature, and rating of the machinery and mechanical and other equipment. When required by this contract or by the Contracting Officer, the Contractor shall also obtain the Contracting Officer's approval of the matciial . or articles which the Contractor contemplates incorporating into the work. When requesting approval, the Contractor shall provide full inf01numon concCining the material or articles. When directed to do so, the Contractor shall submit samples for approval at the Contractor's expense, with all shipping charges prepaid.. Machinery, equipment, material, aud articles that do not have the required approval shall be installed or used at the risk of subsequent rejection. c. All work Wlder this contract shall be performed in a skillful and workman1ike manner. The Contracting Officer may require, in writing, that the Con1ractor remove from the .. work any employee the Contracting Officer deems incompetent, careless, or otherwise objectionable. 47. SuperiDteudence by tbe Contraetor. At all times during pCiformance of this OOJ:ltr&ct and 1Dltil the work is completed and accepted, the COirtractor shall directly superintend the work B-9 .... - ... • • '· ·· .. Acbnini§trating. Using and Accounting for Vcst22.1'l!!.Seized Iraqi Prqpg~- _ Ap,pendix B August2003 or assign and have on the worksitc a competent superintendent who is satisfactoty to the . Contracting Officer and has authority to act for the Contractor . 48. Peranits and Respoasibilides. The Contractor shall, without additional expense to the gov ental entity awarding this contract, be for obtaining any necessary licenses and permits, and for complying with any laws, codes, or regulations applicable to the performance of the work. The Contractor shall also be responsible for all damages to persons or property that occurs as a result of the Contractor's fault or negligence. The ContractOr shall also be responsible for all materials delivered and work performed until completion and acceptance of the entire wo~ except for any completed m»t of work which may have been accepted under the contract. 49, Protection ofE:rlsUne Vegetation, Structures, Utilities, ud Improvemeats. a. . The Contractor shall preserve and protect all structures, equipment, ·aDd vegetation (such as trees, shrubs, and grasa) on or adjacent to the wotk site, which are not to be removed md which do not unreasonably interfete with the· work: required under this contract. The Contractor shall only remove trees when specifically authorized to do so, and shall avoid damaging vegetation that will remain in place. If any limbs or branches of trees are broken during contract petformance, or by the careless operation of equipment, or by workmen. the Contractor shall trim those limbs or branches with a clean cut and take such other action as the Contracting officer may direct. b. The Contractor shall protect from damage all existing irnprovements and utilities (1) at or near the work site, and (2) on adjacent property of a third party, the locatio~ ofwhieh are made known to or should be known by the . The Contractor sbaJJ repair any damage to those facilities, including those that are the property of a third party, resulting fiom failure to comply with the requirements of this contract or failure to exercise reasonable care in performing the work. If the Contractor fails or refuses to repair the damage promptly. the Contracting Officer may have the necessary work performed and charge the cost to the Contractor. · 50. Operations ud Storage Areas. a. The Contractor shall confine all operations (including storage of materials) to areas authorized or approved by the Contracting Officer. The Contractor shall hold and save the government entity awarding this contract, its officers and agents, fice and humless fiom liability . of any natW'e occasioned by the Contractor's perfouoance. . . b. Temporary buildings (such as storage sheds, shops, offices) and utilities may be erected by the Contractor only with the approval of the Contracting Officer and shall be built with labor and materials fmnisbcd by the Contractor without expense to the governmental mtity awarding this contract. The temporary buildings and utiUties shall reruain the property of the Contractor and shall be removed by the Contractor at its expense upon completion of the wozk. With the written con&en.t of the Contracting Officer, the buildings and utilities maybe abandoned and need not be removed. c. The Contractor shall, under rules established by the Contracting Officer, use only established roadways, or use roadways by the Con1ractor when and as authorized by the Contracting Officer. When materials are transported in prosecuting the work, vehicles shal] not be loaded beyond the loading capacity recommended by the manufacturer of ........ • B-10 -----·· ··· • • August2003 the vehicle or prescribed by law or regulation. When it ia necessary to cross curbs and sidewalks, the Contractor shall protect them from damage. The Contractor shaJl repair·or pay for the repair of any damaged curbs, sidewalks, or roads. S 1. CleaaiDg Up. The Contractor shalJ at all times keep the work area, including storage areas, free ftom accumulations of waste materials. ·Before completing the work, the Contractor shall remove from the work and premises any rubbish, tools, scaffolding. equipment. and materials that arc not the prope:tty of the Govetnment. Upon completing the work, the Contractor shall leave the work area in a clean. neat, and orderly condition satisfactory to the Contracting Officer. 52. Accident Prevendon. a. which will: The Contractor shall provide and maintain work environments and procedures (1) Safeguard the public and goveuanental entity personnel, property, . materials, supplies, and equipment exposed to Contractor operations and activities, (2) Avoid interruptions of goveriamental entity opei-ations and delays in project completion dates, and (3) Control costs in the performance of this contract. b. For these purposes on contracts for construction or dismant1ing, dclnolition, or · removal of improvements, the Contractor sbaJJ: ( 1) Provide appropriate safety barricades, signs, and signal lights. (2) Ensure that any additional mcasmes the Contracting Officer determines to . be reasonably necessary for the purposes are taken. c. Whenever the Contracting Officer becomes aware of any noncompliance with these requirements or any condition which poses a serious or imminent danger to the health and . safety of the public or govenunental entity personnel, the Contracting Officer shall notify the Contractor orally, with written confirmation, and request immediate initiation of corrective action. This notice, when delivered to the Contractor or the Contractor's repre9eDtative at the .work site, shall be deemed sufficient notice of the noncompliance and that couective action is required After receiving the notice, the Contractor shall immediately take conoctive action. If the Contractor fails or refuses to promptly take conective action. the Contracting Officer may issue an order stopping all or part of the work until satisfactory conective action bas been taken. The Contractor shall not be entitled to any equitable adjustment of the contract price or extension of the pcrfounance schedule on any stop work order issued under this clause. d. The Contractor shall insert this clause, including this paragt aph (d), with appropriate changes in the designation of the parties, in subcontracts. 53. Sehedules for Construction Coatraeta. a. The Contractor shall, within five days after the work oommences on the contract or another period of time determined by the Contracting Officer, prepare and submit to the Contracting Officer for approval three copies of a practicable schedule showing the order iD which the Contractor contemplates starting and completing 1he several salient features of the work (including acquiring materials and equipment). The schedule shall be in the fo1m of a pro chart of suitable scale to indicate approximately the pa:centage of work scheduled for completion by any given date during the period. If the Contractor fails to submit a achedU:le B-1 .:; ... ------- -- .. ·-··· • • £0dm· 11 August 2003 within the time prescribe~ the Contracting Officer may withhold approval of progJ· ess payments until the Contractor submits the required schedule. b. The Contractor shall report progress under the schedule to the Cotitracting Officer as directed by the Cont:racting Officer. If, in the opinion of the Contracting Officer, the Contractor falls behind the approved schedule, the Contractor shall take steps necessary to improve its progxess, including those that may be required by the Contracting Officer, without additional cost to the governmental entity awarding this contract. In this c· e, the Contracting Officer may require the Contractor to increase the number of shifts, overtime operations, days of work, and other efforts, and to submit for approval any supplementary schedule or schedules as the Contracting Officer dwns necessary.to demonstrate how the approved_ rate of progress will be regained. c. Failure of the Contractor to comply with the requirements of the Contracting Officer under this clause shall be grounds for a detaminati.on by the Contracting Officer that the Contractor is not prosecuting the work with sufficient diligence to ensure complctiC)n within the time specified in the contract. Upon making this delamination, the Contracting Officer may tel minate the Contractor's right to proceed with the work, or any separable part of it, in acc:ontance with the default tams of the contract. 54. Specifications and Drawings for ConstruetioL The Contractor shall keep on the work site a copy of the drawings and specifications {the written description of the work) and shall at all times give the Contracting Officer access thereto. Anything mentioned in the specifications and not in the drawings, or shown on the drawings and not mentioned in the specifications, shall be of like effect as if shown or mentioned in both. In case of difference betwun drawings and specifications, the specifications shall govetn. If case of difference in the figures between the drawings or in the specifications, the matter shaD be promptly submitted to the Contracting Officer, who shall promptly make a deteimination in writing. Any adjustment by the Contractor without such a · 'on shall be at its own risk and expense. The Contracting Officer shall furnish from time to time such detailed drawings and other information as consideied necessary, unless otherwise provided. : • B-12 I ' • . . t August2003 CONTRACT AND GRANT PROCEDURES APPLICABLE TO VESTED AND SEIZED IRAQI PROPERTY AND DEVELOPME~ FUND FOR. IRAQ Guidance for &suing Gruts APPENDIXC .. Considerations for Drafting Grot Agreemeatl or Solicitations for Grant Proposals. • Identify the Qbieqivcs of the st!!!t !Pd. need for assistas. Pinpoint any relevant physical, economic, social, financial, institutional, or other problems to be addressed by the grant. • Comtider the anticipated results or benefits ex~. Identify costs and benefits to be derived. For example, show how problem will be ianproved as a of the grant. Explain how the project will benefit the public. ~~ · List the activities in chronological order to show the schedule of ilccomplishments md expected completion dates. Identify the Jdnds of data to be collected and maintained, and discuss the criteria to be used to evaluate the results and success of the project. Explain the methodology that will be used to deter mine if the needs identified and discussed are being met and if the results and benefits identified are being achieved. List each organization, cooperatort consu]tan~ or other key individuals who will work on the project along with a short description of the nature of their effort or contribution. • ! Establish criteria for judging the effectiveness and value of the grant. For larger grants, progxess payments or other control measures should be included to ensure the grant is used effectively. - ExeeutiDg Grants . • Grants may be made to government entities or other organizations for purposes benefiting the public good. Small reconstruction and public works projects, as well as projects that positively impact education and health care, may be appropriate for grants. • Grant agtecments will be recorded on forms prescrib~ by the Head of - Contracting Activity, CPA, in consultation with the Office of the General Counsel, CPA. When executing grants ensure the grantee undea•1ands the purpose of the grant and the need to exercise fiscal responsibility including obtaining receipts for significant payments and for documenting the usc of funds. - . C-1 ~ -· ' ~ August2003 • Conduct periodic inspections of tbe grant activity to ensure the grant is being used appropriately. • • • ....... C-2 • • Adtpini~9ring. Using and Accounting for Vetted and Seized Jmqj Plgpedy AppendixD August2003 CONTRAcr AND GRANT PROCEDURES APPLICABLE TO VESTED AND SEIZED IRAQI PROPERTY AND DEVELOPMENT FUND FOR IRAQ Frequeut1y Asked QuestloDI • APPENDIXD What projects are appropriate for the expeaditure ofDFI Fundi? UN Security Couuen Resolution 1483 (2003) provides tbe foUowlllg: . 14. Underlines that the [Jevelopment Fund for Iraq shall be rued ~n a transparent manner to meet the humanitarian needs of the Iraqi people, for the economic reconstruction and repair of Iraq 's infrastructure, for the continued disarmament of Iraq, and for the costs of Iraqi civilian administration. mu:l for other purposes benejiting.the people of Iro.q; This is the standard for use ofDFI funds. If the contncting requirement does not fit squarely .. within these categories, other funding sources must be used. Requirements for the support of Coalition Forces may not be satisfied with DFI funds. • What special rales apply for contracts witb IraqJ Faacb? . Obligations under contracts with Iraqi Funds will be satisfied only with haqi Funds. A special clause is included in the contract to put all parties on notice of this important issue. Military Units: Military units should not execute contracts in their names or in the name of their govenlillent for projects using Iraqi Funds. These conttacts must contain the following language: ''This contract/grant is entered into under the authority of the Adndnistrator as head of the Coalition Provisional Authority (CPA), which is temporarily exercising govenuncn~ authority in Iraq pursuant to the law and usages of war and relevant United Nations Security Council Resolutions, including Resolution· 1483 (2003) ("Coalition") and by ("Contractor") Coalition Provisional Authority: In order to clearly state the authority Upon wbich the contract is being entered into, the clause set forth above must be included in each contract. The CPA's authority is of limited duration and will terminate upon the establishment of an intenl8tionally recognized, representative govcnwent of Iraq. Therefore, it is important to ensure there is a "termination for convenience" clause in each 'COiltract • . D-1 ..... • Aduritristerin& Using and Accounting for v csted tmd Smred Imgi PnmwlY August2003 Ministries of the Iraqi Government: Ministries of the Iraqi government should use Iraqi government contracting procedures when using CPA Funds. if the Admitristtator determines that the contracting procedures are adequate. If those procedures are inadequate, these procedures will be used. When should I use a graut and whea should lue a coDb•et? When the prinaary purpose is to support or stimulate the efforts of the recipient rather than to acquire a product or service, grants may be made to community agencies in support of community development or outreach programs. Grants have more limited ovetsight and are intended to allow the applicant greater flexibility. While the of the grant should be assessed, the requirement need not be filled by another source if the intended aims arc not achieved. Grants are generally awarded to government entities and non-profit organizations. Contracts are used to acquire goods or services. What facton should be used when evaluating poteatlal contracton? The requirements for each contract should be tailored to the acquisition. However all decisions to award contracts should involve collSideration of the following factors: • Value. While price is very important in detcnnining a contract award, it ensuring the perfoxmance of the contract in responsible manner is also important. · • Financial Stability of Contractor. The financial stability of the contractor must be evaluated in all I .arge Purchase contracts or contracts involving a substantial percentage payment of the full contract award in advance. This review should include an analysis of its financial statements; audits where possible; credit reports; and other data assessing the fitness of the company. • Past Performance. Past performance should be considered if the entity has pafotmcd • • prcvtous semces~ . ~ ·· • · .. • ' • .~ . .. - . • · IRAQI ASSETS USED IN RECONSTRUCTION As of: September 30,2003 . (Dollars in Millions) DEVELOI;'MENT FUND FOR IRAQ CDFI) Non-contract and · other items (Allocated) Wheat purchase Labor intensive program De La Rue Currency Emergency fuel import Oil Project • CPA contract list (Allocated) (Tab C-1) Total DFI Allocated DFI Balance IRAQI SEIZED ASSETS Non-contract and other items (Allo-cated) Stipend pay . Commander's Emergency Response Fund Regional Director's Emergency Response Fund Benzene and Liquid Propane Gas Weapons Buyback Other (Ministry Operations, Misc.) CPA contract list (Allocated) (Tab C-2) Total Seized Allocated Seized balance 125.4 1, .0 77.2 245.0 300.0 30.0 134.0 7.5 90.0 , .5 289.0 2,498.0 • 758.6 359.0 1,117.6 1,380.4 910.2 552.0 • 205.2 757.2 153.0 1,724.1 1,602.4 IRAQI VESTED ASSETS . 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