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ADAPTIVE MANAGEMENT REPORT January 2020 – January 2021

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ADAPTIVE MANAGEMENT REPORT January 2020 – January 2021 ADAPTIVE MANAGEMENT REPORT January 2020 – January 2021 PHOTO CREDIT: GROUP FOR LEGAL AND POLITICAL STUDIES ADAPTIVE MANAGEMENT REPORT 2020 USAID TRANSPARENT, EFFECTIVE AND ACCOUNTABLE MUNICIPALITIES ACTIVITY IN KOSOVO USAID Transparent, Effective and Accountable Municipalities Activity (USAID TEAM) in Kosovo ADAPTIVE MANAGEMENT REPORT 2020 Year 4 Project Title: USAID Transparent, Effective and Accountable Municipalities (USAID TEAM) Activity in Kosovo Sponsoring USAID Office: USAID/Kosovo Contract Number: AID-167-C-17-00001 COR: Jeton Cana Contractor: DAI Global, LLC Date of Submission: February 11, 2021 Prepared by: USAID Transparent, Effective and Accountable Municipalities DISCLAIMER This publication was produced by the USAID TEAM Activity under Contract No. AID-167-C-17-00001 at the request of the United States Agency for International Development (USAID). This document is made possible by the support of the American people through the United States Agency for International Development. The authors’ views expressed in this publication do not necessarily reflect the views of the USAID or the U.S. Government. USAID TEAM – ADAPTIVE MANAGEMENT REPORT, YEAR 4 | ii TABLE OF CONTENTS ACRONYMS iv USAID TEAM Background 6 Adaptive Management Plan and Approach 6 Most Important Findings 7 USAID TEAM Adaptive Management Approach 11 After-Action Review – Structured Feedback and Reflection 11 Meetings With the CSOs that are Not Supported by the Project 16 Individual Meetings With Targeted Private Sector Economic Operators Experienced in Public Procurement Processes 18 Meetings With Municipal Management And Partner Institution Representatives. 18 Meetings With Local Government Representatives 20 feedback From Civil Society Organizations 22 Feedback From Csos And Other Reports 22 Meeting With NAO Anti-Fraud Unit 24 Learning Summit With Central Level Institutions 24 Most Significant Change Stories 26 Management-Level Adaptation 27 Year 4 Adaptive Management Activities Implemented 29 Performance Monitoring Plan 30 PMP Indicator Progress 36 ANNEX 1: AMP Indicators Table 95 ANNEX 2: Performance Indicator Reference Sheets (PIRS) 107 USAID TEAM – ADAPTIVE MANAGEMENT REPORT, YEAR 4 | iii ACRONYMS ACA Anti-Corruption Agency BIRN Balkan Investigative Reporting Network CHU Central Harmonization Unit CLA Collaborating, Learning, and Adapting CM Contract Management COVID-19 Coronavirus Disease 2019 CPE Contractor Performance Evaluation CSO Civil Society Organization DCSA Department of Civil Service Administration EO Economic Operator EU European Union GLPS Group for Legal and Political Studies GOK Government of Kosovo HR Human Resources IA Internal Audit IAU Internal Audit Unit IR Intermediate Result KDI Kosova Democratic Institute KIPA Kosovo Institute for Public Administration MAC Municipal Audit Committees MELA Monitoring Evaluation, Learning, and Adapting MIA Ministry of Internal Affairs MLGA Ministry of Local Government MOF Ministry of Finance MPECV Municipal Procurement Effectiveness and Corruption Vulnerability MTBF Mid-Term Budget Framework NAO National Audit Office OPTP Open Procurement Transparency Portal USAID TEAM – ADAPTIVE MANAGEMENT REPORT, YEAR 4 | iv PO Procurement Offices PPL Public Procurement Law PPL Public Procurement Law PPRC Public Procurement Regulatory Commission PRB Procurement Review Body ROGPP Rules and Operational Guideline for Public Procurement SOP Standard Operating Procedure TEAM Transparent, Effective and Accountable Municipalities Activity USAID United States Agency for International Development USAID TEAM – ADAPTIVE MANAGEMENT REPORT, YEAR 4 | v USAID TEAM BACKGROUND The USAID Transparent, Effective and Accountable Municipalities (USAID TEAM) activity is a five-year project that began in January 2017 and is scheduled to conclude in January 2022. The activity aims to improve procurement effectiveness and transparency by providing comprehensive assistance to all 38 Kosovo municipalities, with more intensive coaching and mentoring in a selected sub-set of focus municipalities. At the central level, USAID TEAM works closely with actors such as the Central Harmonization Unit of the Ministry of Finance (MOF), Public Procurement Regulatory Commission (PPRC), National Audit Office (NAO), and the Procurement Review Body (PRB). Civil society also plays a key role in exposing corrupt practices by working with citizens and local governments in the procurement modernization process. USAID TEAM partners with an active network of civil society organizations (CSOs) to promote transparency and accountability. This network is educating and engaging citizens to identify corruption when it occurs—from the municipal to the national level—and provides sustained pressure to improve transparency. Activities implemented by USAID TEAM contribute to the Country Development Cooperation Strategy Development Objective 1: Improved Rule of Law and Governance that Meet Citizens’ Needs. The activity directly contributes to two Intermediate Results (IRs) under this Development Objective: IR1.2: Strengthened Effectiveness and Accountability of Assemblies, Administrations, and Election Processes. USAID TEAM is improving the accountability of municipal administrations and assemblies through greater transparency and effectiveness. IR1.4: Civil Society Strengthened to Increasingly Engage Constructively with Government. USAID TEAM is working with civil society to monitor municipal procurement. ADAPTIVE MANAGEMENT PLAN AND APPROACH This adaptive management report documents USAID TEAM adaptive activities implemented in Year 4. USAID TEAM utilized adaptive management tools that enabled the project to learn and then design and deliver more effective technical support to counterparts at the local and central levels. Through adaptive management and learning mechanisms, USAID TEAM solicited feedback and recommendations from project recipients aiming to make results sustainable. Tools and activities used in Year 4 include: • After-Action Review - structured feedback and reflection from project events. • Feedback from municipal officials. • Feedback from economic operators (EOs). USAID.GOV USAID TEAM ACTIVITY – ADAPTIVE MANAGEMENT REPORT, YEAR 4 6 • Feedback from partner CSOs. • Feedback from NAO Anti-Fraud Unit representatives. • A learning summit with private sector EOs. • Review of the custom municipal work plan activities and targets achieved for adaptive management, in meetings with municipal management. • Learning summits with central-level institutions, such as PRB, PPRC, NAO and CHU. • Focus groups/individual meetings with CSOs not directly supported by the project. • Most significant change stories. • Analysis of reports, including those from local-level CSOs as a result of the Applied Learning workshops and the Democracy Plus report with information on PRB monitoring activities. USAID TEAM developed and continues to use the Collaborating Learning and Adapting (CLA) Map. A data tracking tool that contains findings and recommendations from previously mentioned adaptive management activities and CSO reports. The CLA Map serves as a source of information for the project to adapt its approach and refine its upcoming activities. It also helped the project to design activities for Year 5. This multi-step feedback cycle allowed the project to evaluate performance, assess needs, learn from experience, and adapt its approach to technical interventions and solutions leading to greater impact and more effective programming for the next cycle of technical assistance. MOST IMPORTANT FINDINGS During Year 4, USAID TEAM identified important issues that derived from project activities with central- and local-level partner institutions, CSOs, and EOs, namely: Central-Level Institutions • A need for harmonization of legislation that will improve contract management. This includes clarification of procedures and responsibilities of each institution, project design, a commitment of funds before the initiation of procurement activity, and inspections, etc. • The need to update the PPRC regulation to allow for the launch of the contract management and contractor performance evaluation modules. • The need to monitor the PRB data migration from old database into new database and activation of the web application for better transparency and accessibility. • A need for capacity building for all NAO auditors on how to treat procurement with fraud elements. USAID.GOV USAID TEAM ACTIVITY – ADAPTIVE MANAGEMENT REPORT, YEAR 4 7 • A need for capacity building for auditors on the use of the e-procurement platform to publish their audit reports (CHU). Local-Level Institutions • The need to enforce institutions to use economic criteria in Public Procurement. • Re-occurring challenge with the inability of courts to solve cases in time • The need for improvements in contract management, monitoring, controls, and reporting processes. • The need to increase the capacity of bid evaluation members. • The need to improve skills in drafting technical specifications. • The need to improve initiation of procurement activities including project design, since municipalities in most of the cases lack executive projects. • A continued need to enhance procurement capacities which have been further limited because of pandemic necessitated remote work. • The need to develop a manual of reference prices for procurement activity items. • A continued need to support municipalities in addressing NAO recommendations. Civil Society Organizations • The need to increase the sustainability of local CSOs to
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