In October 2005, CARANA launched the Private Sector Certification Project (PSCP), designed to support the implementation of key industry norms and standards in enterprises in several well developed sectors in Colombia. Specifically, the project will provide technical assistance and training to 30 SMEs in Colombia, of which at least 80% will be located outside of Bogotá, in preparing for and obtaining certifications of key norms and standards identified by the Government of Colombia. The project will also train 25 national consultants in these norms and standards, who in turn will provide a large portion of the technical assist to the targeted SMEs.

The norms and standards that are being focused on in this project are:

• CMMI (Capability Maturity Model Integration): a certification for software development companies looking to bring discipline to the process of developing software systems.
• HACCP (Hazard Analysis and Critical Control Point): certification program on food safety, critical for food industry exports to the United States.

Counterparts
The PSCP will be implemented by two contractors: TSG through the Colombia Productiva Project, and CARANA Corporation through the Washington based LAC Trade Project. The companies receiving assistance will also contribute to the funding of this project, and the Government of Colombia, through PROEXPORT will also play a role. The primary responsibilities for each of these parties are described below:

• TSG - Colombia Productiva: TSG, though its Colombia Productiva Project will be in charge of the overall leadership on the project, coordinating with CARANA Corporation and the Government of Colombia, and with USAID. Specifically, TSG will be in charge of identifying and paying for the international consultants that will train the local consultants on the selected norms and standards, and coordinating and paying for the training itself. The Colombia Productiva Project will also coordinate with the certifying body and the international consultants on the inspection of the companies that are ready for certification. These international consultants will also provide technical supervision to the local consultants assisting companies in preparing for certification. TSG will also participate in the selection of companies to be assisted, and in the selection of the consultants to be trained under the PSCP.
• CARANA Corporation: The CARANA Corporation - LAC Trade Project will be responsible for managing the local consultants hired for the PSCP, and will participate actively in the selection of these consultants. CARANA will negotiate, sign and administer the contracts with the local consultants. It is anticipated that CARANA will be paying for 50% of the consultant’s time required to provide technical assistance and training to the selected companies preparing for certification. CARANA will also pay for the costs associated with supervising those consultants (project manager, and his/her related travel and ODC costs). In order to do this on a more cost effective basis, CARANA’s LAC Trade Project will receive the support of the CED project also being implemented by CARANA in Colombia through August of 2006. The CED project will provide back office and administrative support to the PSCP, and also has access to consultants across the country as well as a strong relationship with SMEs in Colombia that may be tapped for the PSCP. CARANA Corporation will also participate in the selection of the companies that will receive technical assistance under this project.
• The Government of Colombia: The GOC through PROEXPORT will provide input to this project, helping to select the norms and standards on which the PSCP should focus, the consultants to be trained, as well as the SMEs to be assisted.
• SMEs: These enterprises will be responsible for paying the other 50% of the local consultant’s time dedicated to their enterprise, 100% of the consultants’ Other Direct Costs (if any), as well as the actual cost of the certification. With the exception of the CMMI certifications where a different implementation process has been proposed, the enterprises will also be responsible for soliciting and paying for their certifications. Ultimately, the SMEs are responsible for implementing the recommendations / requirements in order to be certified.

Timeframe
TSG’s staff believes that this component of the PSCP can be implemented in one year or less, and has in fact, already begun working on this initiative. CARANA has received authorization to work on this project using the LAC Trade contract through September 30, 2006, subject to the funding limitations discussed in the next section.

The fact that the CARANA – CED project ends in August of 2006 may present a problem for the LAC Trade Project in that this will most probably increase the costs of the PSCP implemented by LAC Trade after that date if the program is still operating.

Activities
The project will require a project manager who has been budgeted for a twelve-month period. CARANA moved quickly to hire Consultant Victor Palacios who began work on this project on October 27, 2005.

Under this project, work will be performed in the following two principle certification areas:

• CMMI: Ten companies will be assisted in this area, of which CARANA will only be responsible for six of them. In this case, each of the selected enterprises will pay PROEXPORT approximately $25,000, which will cover 50% of the local consultant costs, ODCs, certification costs, and travel costs associated with the international consultants. TSG estimates that each company will require 48 days of technical assistance and training, and as a result, CARANA will pay for 50% of the needs of six of these companies for a total of 144 days. The consultant daily rate is estimated at $281.82 (negotiated by PROEXPORT) which translates into a project cost of $563.64 after applying the multiplier of 2.0 as specified under the contract.
• HACCP: A total of twenty companies are targeted for this area. The level of effort for each company is estimated at 24 days per company, of which the LAC Trade Project would pay for 50% (240 days). A daily rate of $181.83 is used which assumes concessions from the consultants on their daily rates in return for the training and supervision that they will receive in this area.

Results
As CARANA has just initiated this project in October 2005, results are anticipated in summer of 2006.

Relevant Documents
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