2022 09 19 JA 22159 USAID Central Asia.pdf

JUSTIFICATION AND APPROVAL FOR OTHER THAN FULL AND OPEN

COMPETITION (J&A)

TO: Deborah Broderick, Agency Competition Advocate

FROM: Laura Cizmo, Director, Economic Development Office, USAID/Central Asia

SUBJECT: Justification and Approval for Other than Full and Open Competition (J&A)

1. This document sets forth the facts and rationale justifying the use of other than full and open competition, in accordance with USAID’s Acquisition Regulation (AIDAR) 706.302-70(a)(2) and (b)(5) Continued Provision of Highly Specialized Services when award to another resource would result in substantial additional costs to the Government or would result in unacceptable delays. This document was prepared by the Economic Development Office of the USAID/Central Asia Regional mission. Your approval is requested in accordance with AIDAR 706.302-70(c)(5).

2. The nature and/or description of the action being approved:

This is a request to approve a contract modification of contract 72011521C00002 (the USAID Central Asia Trade Central Asia (“TCA”) activity implemented by DAI Global, LLC. (“DAI”)), to continue specialized services and provide cost extension to DAI for $15.2 million, increasing the contract ceiling from $18,970,704 to $34,170,704. Russia’s war in Ukraine and the ensuing sanctions have tremendously impacted Central Asian economies and the livelihoods of its people. Sanctions on Russia and the exodus of Western firms have led to a contraction of Russia’s economy that will likely persist for the long term. The reduction of Russian GDP will reduce Russian imports from Central Asia and therefore Central Asian firms urgently need to find new markets for their exports—including both goods and services. About a quarter of total non-oil goods exports from the region went to Russia in 2019, but the figure is much higher for apparel, horticulture, and manufactured products. This action is intended to expand Trade Central Asia activity’s ability to provide urgent support across Central Asia to mitigate the effects of these events, strengthening the resilience of the region’s economies through both increased trade competitiveness and diversification of trade markets.

Under this action DAI will provide technical assistance that results in increased trade to new international markets from Central Asian countries. It will provide assistance to government entities or firms that provide logistics and transportation (road, train, and/or ship) services in order to reduce the cost and time of shipping containerized or bulk freight along the Trans-Caspian trade corridor. This will increase trade along that corridor. It will also provide technical assistance to regional government entities to help them reduce the time and cost to trade across borders within Central Asia through technology, including digitalization, and improved processes and capacity. Finally, it will assist Central Asian businesses to connect to regional and global firms in key sectors with growth potential in the wake of the Ukraine crisis.

3. Description of the supplies or services required, including an estimated value:

The contractor will deliver services to respond to the economic impacts on Central Asia resulting from Russia’s invasion of Ukraine. These impacts, which are ongoing, include declining remittances, migrant workers returning from Russia, currency devaluations, inflation, and loss of export routes and markets. Reducing Central Asia’s reliance on Russian markets and export routes by providing alternatives has been a long-term priority but now is an urgent necessity and an opportunity as we seek to help the region pivot from reliance on Russia.

The services required will be delivered in all five countries of Central Asia, namely Kazakhstan, Kyrgyz Republic, Tajikistan, Turkmenistan, and Uzbekistan, and will include the following:

technical assistance that results in increased trade to new international markets from Central Asian countries; assistance to government entities or firms that provide logistics and transportation (road, train, and/or ship) services in order to reduce the cost and time of shipping containerized or bulk freight along the Trans-Caspian trade corridor; technical assistance to regional government entities to help them reduce the time and cost to trade across borders within Central Asia through technology, including digitalization, and improved processes and capacity;

assistance for Central Asian businesses to connect to regional and global firms in key sectors with growth potential in the wake of the Ukraine crisis.

The value of the work will be $15.2 million with no change to the period of performance of the award.

4. Statutory authority permitting other than full and open competition:

This request is in accordance with 40 U.S.C. § 113 and AIDAR 706.302-70(a)(2) and (b)(5) - An award for the continued provision of highly specialized services when award to another resource would result in substantial additional costs to the Government or would result in unacceptable delays.

5. A demonstration that the proposed contractor’s unique qualifications or the nature of the acquisition that requires use of the authority cited:

Russia’s war in Ukraine and the ensuing sanctions have tremendously impacted Central Asian economies and the livelihoods of its people. As of this writing, the conflict has lasted for more than six months, during which the Central Asian region has been enduring the economic shock of declining remittances, migrant workers returning from Russia, currency devaluations, inflation, and loss of export routes and markets. As the conflict is not slowing, the shocks to the region’s economy will likely continue and worsen. U.S. government policy is to react quickly-within 12 to 18 months–using funds appropriated in the Ukraine Supplemental Appropriations Act, 2022.

Pub. Law 117-103, Div. N (Mar. 15, 2022).

USAID/Central Asia has an existing award in place that can be immediately leveraged to use this funding, so that interventions reach beneficiaries and produce results as quickly as possible. This award is implemented through a contractor who has established operations on the ground and ongoing relationships with local communities and authorities. Given the urgency of needs across Central Asia and the speed with which FY 2022 AEECA funds under the Ukraine Supplemental Appropriations Act, 2022, need to be deployed per the urgency of action required to counter the economic shocks, it is in the Agency’s interest to use an existing award to the maximum extent possible, rather than having to compete, evaluate, and award new contracts. The existing contractor has already established relationships with host-country counterparts and intended beneficiaries that would be unlikely to be quickly replicated by a new contractor. For example, the existing contractor leveraged regional dialogue on customs issues and improved the capacity of the Customs agencies to adopt internationally recognized rules, regulations and standards of free trade. The contractor is working with export promotion agencies in the region to enhance cooperation in building a synchronized business support ecosystem and developing intraregional trade in Central Asia.

In addition, the contractor is engaged with international organizations, including the World Trade Organization and the World Customs Organization, to ensure that reforms are consistent with international best practices. The contractor helped the Uzbek Customs Committee to revise customs legislation to comply with WTO Trade Facilitation Agreement and Revised Kyoto Convention standards.

Given the reach and scope of activities and tasks undertaken under the current TCA contract, starting with a new contractor, following a full and open competition process, would slow down the activities required to mitigate the impacts of Russia’s invasion of Ukraine on Central Asia and cause delays in results beyond what is envisioned in the Ukraine Supplemental Appropriation Act, 2022.

6. Description of the efforts made to ensure that offers are solicited from as many potential sources as practicable, including whether a notice was publicized as required by FAR subpart 5.2 and AIDAR 706.302-70(c)(3).

A notice of intent to modify this contract without competition was publicized in www.sam.gov on August 31, 2022 as required by the FAR subpart 5.2 and AIDAR 706.302-70(c)(3). No potential sources responded and no objections or comments were received.

7. A determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable:

The costs related to the additional effort will be factored into the work plan, be approved by the COR acknowledging that costs are aligned with the additional anticipated results, with assurances from OAA that the estimated costs are in line with current award costs. The CO has determined that the contract pricing is still within current market rates (based on competition, competition of more recent awards, and our regular observation of the market), and thus the Contracting Officer has determined that the anticipated cost to the Government will be fair and reasonable.

8. Description of the market research conducted, and the results or a statement of the reasons market research was not conducted:

Market research was conducted prior to the award of the current TCA contract, and more recent market research confirms that the proposed modification is the most suitable approach to acquiring, distributing, and supporting the additional requirements. The more recent market research included efforts to meet similar requirements (e.g., recent Mission awards), and contact with knowledgeable individuals in industry to confirm reasonableness of specific costs (e.g., researching rental prices and local salaries).

9. Other facts supporting the use of other than full and open competition:

DAI’s performance under this contract has been at a very good level since its inception. Russia’s invasion of Ukraine is resulting in global economic shocks, including fuel and fertilizer shortages. It has resulted in sanctions that have disrupted trade routes and supply chains, and closed export markets. The Ukraine Supplemental Appropriations Act authorized emergency supplemental FY 2022 funding for assistance for Ukraine and countries impacted by the situation in Ukraine, and it requires achieving results expeditiously to mitigate the economic impacts in the region. Full and open competition would delay delivery of this critical assistance, damaging the U.S. government’s efforts to respond to the shocks caused by the Russian war. Given the emergency nature of the supplemental funding, it would be impossible for any other source to deliver on these urgent demands in the timeframe required.

10. Sources, if any, that expressed an interest, in writing, in the acquisition:

No sources expressed interest or comments in response to the Mission's Notice posted on 8/31/2022, as discussed in section 6.

11. The actions the Agency may take to remove or overcome any barriers to competition before any subsequent acquisition for the supplies or services required:

The Agency intends to compete future requirements using full and open competition.

12. Technical or Requirements Personnel Certification:

In accordance with FAR 6.303, I hereby certify that the technical statements included above and which form a basis for the justification are complete and accurate.

Laura Cizmo Date Director, Economic Development Office USAID/Central Asia

Laura Cizmo Digitally signed by Laura Cizmo Date: 2022.09.16 19:14:41 +06'00'

13. Contracting Officer Certification:

In accordance with FAR 6.303, I hereby certify that the justification is accurate and complete to the best of my knowledge and belief.

Leona Sasinkova Date Supervisory Contracting Officer USAID/Central Asia

14. Approved:

Deborah Broderick, Date Agency Competition Advocate

Leona Sasinkova

Digitally signed by Leona Sasinkova Date: 2022.09.16 19:06:28 +06'00'

DEBORAH RYAN

BRODERICK (affiliate)

Digitally signed by DEBORAH RYAN BRODERICK (affiliate) Date: 2022.09.19 09:56:46 -04'00'