2023.06.20_JnA_ASEAN-IGNITE_Nathan Associates 72049718C00004 (approved)_Post.pdf

JUSTIFICATION AND APPROVAL FOR OTHER THAN FULL AND OPEN

COMPETITION (J&A)

TO: Ayana Angulo, Contracting Officer

FROM: Desrini Fatimah, Contracting Officer’s Representative for the ASEAN-USAID Inclusive Growth in ASEAN Through Innovation, Trade and E-Commerce (ASEAN-USAID IGNITE) activity

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

REFERENCE: Contract No. 72049718C00004 with Nathan Associates, Inc. for the ASEAN-USAID IGNITE Activity

DATE: June 20, 2023

1. This document sets forth the facts and rationale justifying the use of other than full and open competition in accordance with AIDAR 706.302-70 Impairment of foreign aid programs:

This document was prepared by the Contracting Officer's Representative for the USAID/RDMA's ASEAN Office, in accordance with AIDAR Subpart 706.302 -70(b)(5). An award for the continued provision of highly specialized services when awarded to another resource would result in substantial additional costs to the Government or would result in unacceptable delays.”

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

This is a request to approve an increase in the Level of Effort (LOE) by 882 days of the Contractor’s staff time from 11,117 to 11,999 in the referenced contract (Cost-Plus-Fixed-Fee (CPFF) term type) with Nathan Associates, Inc. (now CADMUS). The Government estimates that the additional 882 days are required to cover the costs of long-term technical assistance staff time (US nationals, Third Country Nationals, and Cooperating Country nationals) to complete the pending interventions/activities planned for the final year of the contract and has been endorsed by ASEAN. The specifics of these pending interventions are discussed further in no. 3 below. The increase in the 882 LOE days will not require additional funding or any increase to the Total Estimated Cost (TEC) of $11,992,844.81.

The contract was awarded competitively on September 19, 2018 and is fully funded at

$11,992,844.81 with the current period of performance ending on March 31, 2024.

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

ASEAN-USAID IGNITE is a five-and-a-half (5 ½) years activity aimed at supporting the Association of Southeast Asian Nations (ASEAN), a multilateral body whose objective is to build a more inclusive, rules-based, and prosperous Southeast Asian community. IGNITE provides technical assistance to ASEAN as it relates to its economic growth strategies.

The Contractor provides capacity building to ASEAN in order to promote a well-integrated and inclusive ASEAN Economic Community (AEC). USAID focuses on supporting three sectors: Trade Facilitation; the Digital Economy; and Science, Technology, and Innovation. Support is provided through technical assistance, training, and workshops to strengthen the capacity of targeted ASEAN institutions, and by conducting research and facilitating discussions for policy making by the ASEAN senior officials, including the ASEAN Secretariat (ASEC) and other ASEAN sectoral bodies, committees, research institutes, and affiliated implementing institutions. This assistance enables ASEAN and its institutions to develop effective multilateral policies and agreements, and more effectively implement these policies. These services are provided across the following three work streams:

● Work Stream 1: Harmonized, transparent, internationally-accepted standards, rules, and procedures known to facilitate the cross-border movement of goods and services expanded while reducing non-tariff barriers to trade.

● Work Stream 2: Improved environment for increasing the availability within and among ASEAN Member States of relevant, affordable, and secure digitally-enabled services that reflect international standards and practices and facilitate e-commerce, especially for SMEs.

● Work Stream 3: Strengthened enabling environment that provides incentives for using science, technology, and innovation to drive open and inclusive economic growth.

Additional LOE is needed to continue providing services related to the ASEAN Single Window, including plan and policy development, production of procedures, training, and high-level intergovernmental meeting facilitation which are further described in this document’s Section 5.

The following are examples of interventions that are planned and require additional LOE to fully meet its intended results:

● The Contractor will analyze and report on the 2023 ASEAN Single Window (ASW) Trader’s

Survey. The survey is the only mechanism to assess performance of the ASW based on end users’ feedback. Without additional LOE, the Contractor will not be able to analyze the 2023 survey and develop a full report that ASEAN needs to improve the ASW platform.

● The 2023 ASW Symposium yielded insights into ASW’s usage and how the electronic custom forms need to meet traders’ requirements. The Contractor will use the information from the survey and the Symposium to modify the electronic customs form to expand the usage of the forms by traders living in ASEAN countries. Without the additional LOE, the Contractor will not have time to support all 10 ASEAN Member States/Countries (AMS) to fully migrate from paper-based to electronic certificates.

● The Contractor will support the design and implementation of the ASEAN Single Window trade facilitation application system interface to the United States Automated Commercial

Environment (US ACE). Currently, USAID, the ASW Steering Committee (ASW-SC), and the US

Customs and Border Protection (CBP) are in the planning stage. The Contractor is contributing technical expertise to develop the necessary US Government documents to be used to design and implement the interface.

● ASEC (ASEAN Secretariat) needs a single-issue tracking system to integrate into the current ASW and ASW Steering Committee database. Following ASEAN’s endorsement to the Terms of

Reference (TOR) for the single-issue tracking system, the development of the tracking system is planned to take place in 2023. This will enable importers, exporters, and customs authorities to report implementation issues along the end-to-end process and for those to be monitored and addressed in a systematic manner to ultimately improve the utilization of the ASW and AWSC.

Currently, implementation issues and problems encountered by users are addressed; however, integration of the system still needs to be addressed. Without the additional LOE, the

Contractor will not have the time to develop the integrated implementation of issues software or conduct the train-the-trainers workshop to help operate the single-issue tracking system and ensure sustainability of the system.

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

This request for approval is prepared pursuant to the authority at AIDAR 706.302-70 Impairment of Foreign Aid Programs, which provides USAID the statutory authority to waive the requirement for full and open competition when it would impair or otherwise have an adverse effect on programs conducted for the purposes of foreign aid, relief, and rehabilitation. The specific authority is AIDAR 706.302-70(b)(5) "An award for the continued provision of highly specialized services when awarded 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:

The Association of Southeast Asian Nations (ASEAN), consisting of ten Member States, was established on August 8, 1967 as a platform for economic cooperation, a peaceful settlement of disputes, and the promotion of the rule of law to ensure a free and open Southeast Asia.

The IGNITE activity promotes ASEAN institutional capacity and human capital to better advance shared priorities and principles between the U.S. and ASEAN related to reducing non-tariff barriers to trade, increasing the availability within and among the 10 ASEAN Member States (AMS) of relevant, affordable, and secure digitally-enabled trade in services, and to strengthen institutional structures and policies that provide incentives for increased entrepreneurship, and to proliferate use of science, technology, and innovation to drive inclusive economic growth.

The U.S. Government leverages the services provided under this contract to further its national security and foreign assistance objectives in Southeast Asia.

Nathan Associates, Inc., the Contractor, has worked closely with ASEAN over the past several years building long standing, trusted, and unique relationships with a multitude of personnel and sub-organizations/units within ASEAN, which is an extremely complex organization where strong diplomatic skills, personnel interactions, and consistent communication is a crucial factor in achieving the Activity's objectives. Nathan has also integrally designed, co-led the planning, and implemented several key initiatives with ASEAN stakeholders. Nathan’s project team is physically co-located within the ASEAN Secretariat (ASEC) Compound where they provide services to ASEAN and ASEC daily, and has direct communication channels to coordinate complex relationships among the 10 AMS. Nathan has consistently performed and delivered its services at a high level and the U.S. Government is fully satisfied with the Contractor’s performance.

USAID contemplated the option to openly compete for other contractors; however, it is not a viable option at this stage of the activity where most interventions are partially implemented, planned, or designed and endorsed by the ten AMS. The work that Nathan will carry out with this planned increased LOE during the remaining 10 months is the same work described in the Contract which will ensure seamless continuation of vital support to the ASEAN Secretariat at this near final stage of the Activity. A competitive procurement of the additional 882 days of LOE would require the cancellation of or unacceptable interruptions and delays of critical ASEAN events and implementation of ASEAN systems and significantly increase costs to implementation.

Furthermore, any change in a contractor team would require the ASEAN secretariat and its 10 ASEAN member states to review, convene, discuss, and endorse all new plans for in-process activities. Transferring the ongoing activities to another Contractor through a competition at this final stage of implementation would endanger existing unique and productive relationships, and cause reputational harm to USAID and foreign assistance outcomes as other ASEAN development partners, such as the People’s Republic of China, could become involved to fill any gaps left by USAID’s contractor. As such, this proposed LOE increase is vital to allow the planned interventions to be carried out and completed with the same trusted implementing partner.

Building efficient and effective relationships with all stakeholders involved through a new contract would come at a substantial cost and time to the U.S. Government. An exception to full and open competition under AIDAR 706.302-70 (b)(5) is justified according to the factors discussed above and is therefore in the best interest of the USG.

6. Description of the efforts made to ensure that offers are solicited from as many potential sources as practicable, including whether a notice was or will be publicized as required by Federal Acquisition Regulation (FAR) 5.202 [AIDAR 705.002].

On May 2, 2023, the Contracting Officer published a synopsis of the proposed contract action on www.sam.gov in order for potential resources to submit expressions of interest. The deadline for interested parties to submit expressions of interest was on May 17, 2023. No expressions of interest were received.

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

The Contracting Officer, determined that the additional LOE is fair and reasonable and is necessary to successfully implement the activity to its completion. The estimated cost of the additional LOE to implement the services anticipated during the extension is in accordance with the costs used in the competitively awarded contract taking into consideration activities to which USAID and Nathan committed. There is no increase in the contract ceiling price anticipated to complete the modification.

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

As discussed previously, working in partnerships effectively with ASEAN is extremely unique and requires a long standing and trusted relationship. Because of these factors, USAID/RDMA concluded that it is not possible for the new contractor to render the current level of costs and value associated with this contract. The time factor is not sufficient for a new contractor to set up a knowledgeable and uniquely skilled team and office and develop the working relationships within the ASEAN environment to deliver on the in-process activities. As presented above, a competition is not feasible for the Mission, and a new contract will cause unacceptable delays of project implementation which hinders achievement of critical objectives captured in the contract.

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

The transfer of the ongoing activities to another Contractor through a competition at this time in implementation would endanger existing unique and productive US-ASEAN relationships and the expected outcomes. The time necessary for the new Contractor to establish new productive relationships is untenable and will harm trust and collaboration on future partnership . To continue the positive momentum of USAID’s partnership with ASEAN, it is vital to complete activities with the same trusted implementing partner.

The Mission determined that a new contractor would result in substantial additional costs and inevitable delays and would end with the USG losing momentum and influence.

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

None.

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 LOE required to continue the work is covered by the current scope and budget of the Contract. The acquisition team is in the design process for a follow-on activity to this contract which will be publicized and awarded using competitive procedures. No barriers to competition are expected for subsequent acquisition of the services required.

12.Technical or requirement 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.

Desrini Fatimah Date: June 20, 2023 Contracting Officer’s Representative

13.Contracting Officer Certification:

I hereby certify that the justification is accurate and complete to the best of my knowledge and belief.

Ayana Angulo, Contracting Officer

Ayana Angulo

Digitally signed by Ayana Angulo Date: 2023.06.28 21:34:37 -04'00'