Grant Agreement
between the Government of the Republic of Hungary and
the Government of the United States of America
for development of the information system concerning catastrophe prevention
This Grant Agreement is entered into between the Government of the United States of America, acting through the U.S. Trade and Development Agency ("TDA") and the Government of Hungary, acting through the Ministry of Interior ("Grantee"). TDA agrees to provide the Grantee under the terms of this Agreement US$184,450 ("TDA Grant") to fund the cost of goods and services required for the preparation of a communications system plan ("Study") for the Ministry of Interior in Hungary ("Host Country").
1. TDA Funding
The funding to be provided under this Grant Agreement shall be used to fund the costs of a contract between the Grantee and the U.S. firm selected by the Grantee ("Contractor") under which the Contractor will perform the Study ("Contract"). Payment to the Contractor will be made directly by TDA on behalf of the Grantee with the TDA Grant funds provided under this Grant Agreement.
2. Terms of Reference
The Terms of Reference for the Study ("Terms of Reference") are attached as Annex I and are hereby made a part of this Grant Agreement. The Study will examine the technical, financial, environmental, and other critical aspects of the proposed Project. The Terms of Reference for the Study shall also be included in the Contract.
3. Standards of Conduct
TDA and the Grantee recognize the existence of standards of conduct for public officials, and commercial entities, in their respective countries. The parties to this Grant Agreement, and the Contractor to be selected to carry out the Study, shall observe these standards, which include not accepting payment of money or anything of value, directly or indirectly, from any person for the purpose of illegally or improperly inducing anyone to take any action favorable to any party in connection with the Study.
4. Grantee Responsibilities
The Grantee shall undertake its best efforts to provide reasonable support for the Contractor. The Grantee shall provide office space as well as a liaison staff member to organize professional discussions with the representatives of the Grantee in relation to the Terms of Reference to enable the preparation of the Study. Transportation, interpretation and other administrative support for the preparation of the Study shall be financed through TDA Grant funds.
5. TDA As Financier
(A) TDA Approval of Competitive Selection Procedures
Selection of the U.S. Contractor shall be carried out by the Grantee according to its established procedures for the competitive selection of contractors with advance notice of the procurement published in the U.S. Commerce Business Daily. Upon request, the Grantee will submit these contracting procedures and related documents to TDA for information and/or approval.
(B) TDA Approval of Contractor Selection
The Grantee shall notify TDA at the address of record set fourth in Article 17 below upon selection of the Contractor to perform the Study. Upon approval of this selection by TDA, the Grantee and the Contractor shall then enter into a contract for performance of the Study. The Grantee shall notify in writing the U.S. firms that submitted unsuccessful proposals to perform the Study that they were not selected.
(C) TDA Approval of Contract Between Grantee and Contractor
The Grantee and the Contractor shall enter into a contract for performance of the Study. This contract, and any amendments thereto, including assignments and changes in the Terms of Reference, must be approved by TDA in writing. To expedite this approval, the Grantee (or the Contractor on the Grantee's behalf) shall transmit to TDA, at the address set forth in Article 17 below, a photocopy of an English language version of the signed contract or a final negotiated draft version of the contract.
(D) TDA Not a Party to the Contract
It is understood by the parties that TDA has reserved certain rights such as, but not limited to, the right to approve the terms of the contract and any amendments thereto, including assignments, the selection of all contractors, the Terms of Reference, the Final Report, and any or all documents related to any contract funded under the Grant Agreement. The parties hereto further understand and agree that TDA, in reserving any or all of the foregoing approval rights, has acted solely as a financing entity to assure the proper use of United States Government funds, and that any decision by TDA to exercise or refrain from exercising these approval rights shall be made as a financier in the course of funding the Study and shall not be construed as making TDA a party to the contract. The parties hereto understand and agree that TDA may, from time to time, exercise the foregoing approval rights, or discuss matters related to these rights and the Project with the parties to the contract or any subcontract, jointly or separately, without thereby incurring any responsibility or liability to such parties. Any approval or failure to approve by TDA shall not bar the Grantee or TDA from asserting any right they might have against the Contractor, or relieve the Contractor of any liability which the Contractor might otherwise have to the Grantee of TDA.
(E) Grant Agreement Controlling
Regardless of TDA approval, the rights and obligations of any party to the contract or subcontract thereunder must be consistent with this Grant Agreement. In the event of any inconsistency between the Grant Agreement and any contract or subcontract funded by the Grant Agreement, the Grant Agreement shall be controlling.
6. Disbursement
Procedures
(A) TDA Approval of Contract Required
TDA will make disbursements of Grant funds directly to the Contractor only after TDA approves the Grantee's contract with the Contractor.
(B) Contractor Invoice Requirements
The Grantee should request disbursement of funds by TDA to the Contractor for performance of the Study by submitting invoices in accordance with the procedures set forth in the TDA Mandatory Clauses in Annex II.
7. Effective Date
The effective date of the Grant Agreement ("Effective Date") shall be the date of signature by both parties or, if the parties sign on different dates, the date of the last signature.
8. Project Schedule
(1) Study Completion Date
The completion date for the Study, which is April 30, 2000, is the date by which the parties estimate that the Study will have been completed.
(2) Time Limitation on Disbursement of TDA Grant Funds
Except as TDA may otherwise agree, (a) no TDA funds may be disbursed under this Grant Agreement for goods and serviced which are provided prior to the Effective Date of the Grant Agreement; and (b) all funds made available under the Grant Agreement must be disbursed within four years (4) from the Effective Date of the Grant Agreement.
9. TDA Mandatory Clauses
All contracts funded under this Grant Agreement shall include the TDA mandatory clauses set forth in Annex II to this Grant Agreement. All subcontracts funded or partially funded with TDA Grant funds shall include the TDA mandatory clauses, except for clauses B(1), G, H, I and J.
10. Use of U.S. Air Carriers
Transportation by air of persons or property funded under the Grant Agreement shall be on U.S. flag carriers in accordance with the Fly America Act, 49 U.S.C. 40118, to the extent service by such carriers is available, as provided under applicable U.S. Government regulations.
11. Nationality, Source and Origin
Except as TDA may otherwise agree, the following provisions shall govern the delivery of goods and services funded by TDA under this Grant Agreement: (a) for professional services, the Contractor must be either a U.S. firm or U.S. individual; (b) the Contractor may use U.S. subcontractors without limitation, but the use of subcontractors from Host Country may not exceed twenty percent (20%) of the TDA Grant amount and may only be used for specific services from the Term of Reference identified in the subcontract; (c) employees of U.S. Contractor or U.S. subcontractor firms responsible for professional services shall be U.S. citizens or non-U.S. citizens lawfully admitted for permanent residence in the U.S.; (d) goods purchased for performance of the Study and associated delivery services (e.g., international transportation and insurance) must have their nationality, source and origin in the united States; and (e) goods and services incidental to Study support (e.g., local lodging, food, and transportation) in Host Country are not subject to the above restrictions. TDA will make available further details concerning these provisions upon request.
12. Taxes
TDA funds provided under the Grant Agreement shall not be used to pay an taxes, tariffs, duties, fees or other levies imposed under laws in effect in Host Country. To the extent that the Contractor or any subcontractor funded by the Grant Agreement or any personnel of such Contractor or subcontractor, or any property or transaction relating to such contract funded under the Grant Agreement are not exempt from such taxes, tariffs, duties, fees or other levies imposed under laws in effect in Host Country, the Contractor funded by the Grant Agreement will pay the same with funds other than those provided by TDA under the Grant Agreement. Neither the Grantee nor the Contractor will seek reimbursement from TDA for such taxes, tariffs, duties, fees or other levies.
13. Cooperation Between Parties and Follow-Up
The parties will cooperate to assure that the purposes of the Grant Agreement are accomplished. For five (5) years following receipt by TDA of the Final Report (as defined in Clause I of Annex II), the Grantee agrees to respond to any reasonable inquiries from TDA about the status of the Project.
14. Implementation Letters
To assist the Grantee in the implementation of the Study, TDA may, from time to time, issue implementation letters that will provide additional information about matters covered by the Grant Agreement. The parties may also use jointly agreed upon implementation letters to confirm and record their mutual understanding of matters covered by the Grant Agreement.
15. Recordkeeping and Audit
The Grantee agrees to maintain books, records, and other documents relating to the Study and the Grant Agreement adequate to demonstrate implementation of its responsibilities under the Grant Agreement, including the selection of contractors, receipt and approval of contract deliverables, and approval or disapproval of contractor invoices for payment by TDA. Such books, records, and other documents shall be separately maintained for three (3) years after the date of the final disbursement by TDA. The Grantee shall afford TDA or its authorized representatives the opportunity at reasonable times to review books, records, and other documents relating to the feasibility Study and the Grant Agreement.
16. Representation of Parties
For all purposes relevant to the Grant Agreement, the Government of the United States of America will be represented by the U.S. Ambassador to Host Country of TDA and Grantee will be represented by the Minister of Interior. The parties hereto may, by written noticed, designate additional representatives for all purposes under the Grant Agreement.
17. Addresses of Record for Parties
Any notice, request, document, or other communication submitted by either party to the other under the Grant Agreement shall be in writing or through a wire or electronic medium which produces a tangible record of the transmission, such as a telegram, cable or facsimile, and will be deemed duly given or sent when delivered to such party at the following:
| To: | Dr. Zsolt Németh,
Head of Department International Department Ministry of the Interior Budapest 1903 P.O. Box 314 Hungary Phone: (36-1) 266-2642 Fax: (36-1) 318-9719 |
| To: | U.S. Trade and
Development Agency 1621 North Kent Street; Suite 200 Arlington, VA 22209-2131 USA Phone: (703) 875-4357 Fax: (703) 875-4009 |
All such communications shall be in English, unless the parties otherwise agree in writing. In addition, the Grantee shall provide the Commercial Section of the U.S. Embassy in Host Country with a copy of each communication sent to TDA.
Any communication relating to this grant Agreement shall include the following fiscal data:
| Appropriation No.: | 119/01001 |
| Activity No.: | 99-70063A |
| Reservation No.: | 9763379 |
| Grant No.: | GH9763379 |
18. Termination Clause
Either party may terminate the Grant Agreement by giving the other party thirty (30) days advance written notice. The termination of the Grant Agreement will end any obligations of the parties to provide financial or other resources for the Study, except for payments which they are committed to make pursuant to noncancellable commitments entered into with third parties prior to the written notice of termination.
19. Non waiver of Rights and Remedies
No delay in exercising any right or remedy accruing to either party in connection with the Grant Agreement shall be construed as a waiver of such right or remedy.
20. U.S. Technology and Equipment
By funding this
feasibility study, TDA seeks to promote the project objectives of the Host
Country through the use of U.S. technology, goods, and services. In recognition
of this purpose, the Grantee agrees that it will allow U.S. suppliers to
participate in the procurement of technology, goods and services needed for
Project implementation.
In witness whereof, the Government of the United Sates of America, and the
Government of Hungary, each acting through its duly authorized representative,
have caused this Agreement to be signed in the English language in their names
and delivered as of the day and year written below.
| On
Behalf of the U.S. Trade and Development Agency |
On
Behalf of the Ministry of Interior |
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Date: 9/29/99 |
Date: 9/29/99 |
* * * * *
Annex I
Term of Reference
The Ministry of the Interior requires system design support for the development of the IT system of the catastrophe prevention activities subject to its supervision. The contractor team undertaking this study will include: (1) a project manager specializing in organization and design of catastrophe prevention networks (2) a computer systems specialist acquainted with the development of centralized databases and network design; and (3) a software specialist knowledgeable about software applications pertaining to catastrophe prevention subsystems and the operation of the American PIMS center.
A major goal of the feasibility study will be to enhance IT development and installation expertise by setting up the Catastrophe Prevention Directorate.
The feasibility study shall consists of completing the following tasks:
Task 1 - Network
Assessment
The first task of the feasibility study team is to fully understand the
current order of catastrophe prevention measures, agencies and linkage points.
Specific tasks include:
- Identify physical location of sites;
- Identify current job requirements;
-Identify status of centralized database.
Task 2 -
Requirements Analysis
Requirements analysis is one of the most important steps in the design of
the IT system determined by the legal and organizational framework. Fully
understanding the users' needs is important because they dictate the technology,
protocols, hardware, software, and resources devoted to both access and backbone
design. Specific tasks include:
- Interviewing users;
- Defining users expectations;
- Defining network functionality;
- Defining connectivity needs;
-Defining security or privacy needs.
Task 3 - Network
Design
Based on the results of the requirement analysis, the date network engineer
will be responsible for determining the network architecture to interconnect all
the parishes (municipalities) involved in catastrophe prevention to the
centralized database. The feasibility study team is encouraged to recommend U.S.
manufactured hardware and software (HW and SW) products where feasible, in view
of the expansion of the existing connection to the PIMS center. Specific tasks
include:
- Identify traffic characteristics;
- Determine network requirements;
- Identify methods of connectivity;
- Identify all networking equipment and services required.
Task 4 - Project
Management Plan
The purpose of the project management plan is to estimate the total project
costs associated with the requirements analysis and network design. Specific
tasks and timeframes should also be identified. In addition, training and human
resource issues should be addressed. Specific tasks include:
- Estimate costs of applications software;
- Estimate costs of enlarging centralized database;
- Estimate networking equipment costs;
- Estimate network services costs and options;
- Identify timeframes for project completion;
- Identify training and human resource requirements;
- Identify any outstanding issues.
Task 5 - Tender
Document Preparation and/or Procurement Negotiation Memorandum
The Contractor will create the tender documents necessary for competitive
bidding among potential equipment and service suppliers. In the case that
competitive bidding is not necessary, the network engineer will create a
procurement negotiation memorandum which will contain guidelines for
negotiations and detailed information for procurement of specific equipment and
services. In either case, the Grantee shall have the capability to move
immediately to procurement using the prepared documents as a baseline. For each
component recommended for procurement, the Contractor and Grantee will discuss
whether direct procurement negotiations (sole-source procurement) or open tender
competition is necessary and the Contractor will create the documents to allow
for such.
Task 6 - Finale
Report
Write final report explaining all findings and recommendations. The
Contractor must identify U.S. Sources of Supply in Final Report to be submitted
to the Grantee and TDA in accordance with Clause I of Annex II.
* * *
Annex II
TDA Mandatory
Contract Clauses
A. TDA Mandatory Clauses Controlling
The parties to this contract acknowledge that this contract is funded in whole or in part by the U.S. Trade and Development Agency ("TDA") under the Grant Agreement between the Government of the United States of America acting through TDA and the Government of Hungary acting through the Ministry of Interior ("Client"), dated ................................... ("Grant Agreement"). The Client has selected ................................................ ("Contractor") to perform the feasibility study ("Study") for the nationwide information network project ("Project") in Hungary ("Host Country"). Notwithstanding any other provisions of this contract, the following TDA mandatory contract clauses shall govern. All subcontracts entered into by Contractor funded or partially funded with TDA Grant funds shall include these TDA mandatory contract clauses, except for clauses B(1), G, H, I, and J. In addition, in the event of any inconsistency between the Grant Agreement and any contract or subcontract thereunder, the Grant Agreement shall be controlling.
B. TDA As Financier
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(1) TDA Approval of Contract |
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(2) TDA Not a Party to the Contract
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C. Nationality, Source and Origin
Except as TDA may otherwise agree, the following provisions shall govern the delivery of goods and serviced funded by TDA under this Grant Agreement: (a) for professional services, the Contractor must be either a U.S. firm or U.S. individual; (b) the Contractor may use U.S. subcontractors without limitation, but the use of subcontractors from Host Country may not exceed twenty percent (20%) of the TDA Grant amount and may only be used for specific from the Terms of Reference identified in the subcontract; (c) employees of U.S. Contractor or U.S. subcontractor firms responsible for professional services shall be U.S. citizens or non-U.S. citizens lawfully admitted for permanent residence in the U.S.; (d) goods purchased for performance of the Study and associated delivery services (e.g., international transportation and insurance) must have their nationality, source and origin in the United States; and (e) goods and services incidental to Study support (e.g., local lodging, food, and transportation) in Host Country are not subject to the above restrictions. TDA will make available further details concerning these provisions upon request.
D. Recordkeeping and Audit
The Contractor and subcontractors funded under the Grant Agreement shall maintain, in accordance with generally accepted accounting procedures, books, records, and other documents, sufficient to reflect properly all transactions under or in connection with the contract. These books, records, and other documents shall clearly identify and track the use and expenditure of TDA funds, separately from other funding sources. Such books, records, and documents shall be maintained during the contract term and for a period of three years (3) after final disbursement by TDA. The Contractor and subcontractors shall afford TDA, or its authorized representatives, the opportunity at reasonable times for inspection and audit of such books, records, and other documentation.
E. U.S. Air Carriers
Transportation by air of persons or property funded under the Grant Agreement shall be on U.S. flag carriers in accordance with the Fly America Act, 49 U.S.C. 40118, to the extent service by such carriers is available, as provided under applicable U.S. Government regulations.
F. Workman's Compensation Insurance
The Contractor shall provide adequate Workman's Compensation Insurance coverage for work performed under this Contract.
G. Reporting Requirements
The Contractor shall advise TDA by letter as to the status of the Project on March 1st annually for a period of two (2) years after completion of the Study. In addition, if at any time the Contractor receives follow-on work from the Client, the Contractor shall so notify TDA and designate the Contractor's contract point including name, telephone, and fax number. Since this information may be made publicly available by TDA, any information which is confidential shall be designated as such by the Contractor and provided separately to TDA. TDA will maintain the confidentiality of such information in accordance with applicable law.
H. Disbursement Procedures
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(1) TDA Approval of Contract |
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(2) Payment Schedule
Requirements |
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(3) Contractor Invoice
Requirements |
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(a) |
Contactor's Invoice |
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(i) |
For an advance payment (if any): |
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(ii) |
For contract performance milestone
payments: |
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(iii) |
For final payment: |
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| (b) | Client's Approval of the Contractor's Invoice | ||
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The invoice for an advance payment must be approved in writing by the Client. |
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For contract performance milestone
payments, the following certification by the Client must be provided on
the invoice or separately: |
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For final payment, the following
certification by the Client must be provided on the invoice or
separately: |
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(c) |
TDA Address for Disbursement Requests
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(4) Termination |
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I. TDA Final Report
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(1) Definition |
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(2) Final Report Submission Requirements |
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One (1) complete version of the Final Report for TDA's records. This version shall have been approved by the Client in writing and must be in the English language. It is the responsibility of the Contractor to ensure that confidential information, if any, contained in this version be clearly marked. TDA will maintain the confidentiality of such information in accordance with applicable law and |
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Three (3) copies of the Final Report suitable for public distribution
("Public Version"). The Public Version shall have been
approved by the Client in writing and must be in the English language.
As this version will be available for public distribution, it must not
contain any confidential information. If the report in (a) above
contains no confidential information, it may be used as the Public
Version (provided TDA receives a total of four (4) copies). In any
event, the Public Version must be informative and contain sufficient
Project detail to be useful to prospective equipment and service
providers. |
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(3) Final Report Presentation All Final Reports submitted to TDA must be paginated and include the following: |
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The front cover of every Final Report shall contain the name of the
Client, the name of the Contractor who prepared the report, a report
title, TDA's logo, TDA's mailing and delivery addresses, and the
following disclaimer: |
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The inside front cover of every Final Report shall contain TDA's logo, TDA's mailing and delivery addresses, and TDA's mission statement. Camera-ready copy of TDA Final Report specifications will be available from TDA upon request. |
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The Contractor and any subcontractor that performs work pursuant to this Grant Agreement must be clearly identified in the Final Report. Business name, point of contact, address, telephone and fax numbers shall be included for Contractor and each subcontractor. |
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The Final Report, while aiming at optimum specifications and characteristics for the Project, shall identify the availability of U.S. sources of supply so as to maximize their use in implementation of the Project. Business name, point of contact, address, telephone and fax numbers shall be included for each commercial source. |
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The Final Report shall be accompanied by a letter or other notation by the Client which states that the Client approves the Final Report. A certification by the Client to this effect provided on or with the invoice for final payment will meet this requirement. |
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J. Modifications
All changes, modifications, assignments or amendments to this contract, including the appendices, shall be made only by written agreement by the parties hereto, subject to written TDA approval.
K. Project Schedule
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(1) Study Completion Date |
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(2) Time
Limitation on Disbursement of TDA Grant Funds |
L. Business Practices
The Contractor agrees not to pay, promise to pay, or authorize the payment of any money or anything of value, directly or indirectly, to any person (whether a governmental official or private individual) for the purpose of illegally or improperly inducing anyone to take any action favorable to any party in connection with the Study. The Client agrees not receive any such payment. The Contractor and the Client agree that each will require that any agent or representative hired to represent them in connection with the Study will comply with this paragraph and all laws which apply to activities and obligations of each party under this Contract, including but not limited to those laws and obligations dealing with improper payments ad described above.
M. TDA Address and Fiscal Data
Any communication with TDA regarding this Contract shall be sent to the following address and include the fiscal data listed below:
The U.S. Trade and
Development Agency
1621 North Kent Street; Suite 200
Arlington, VA 22209-2131, USA
Fiscal Data:
| Appropriation No.: | 119/01001 |
| Activity No.: | 99-70063A |
| Reservation No.: | 9763379 |
| Grant No.: | GH9763379 |