SOL-72011219R00001-PSA.pdf

72011219R00001

SOLICITATION, OFFER AND AWARD

4. TYPE OF SOLICITATION2. CONTRACT NUMBER 3. SOLICITATION NUMBER

7. ISSUED BY CODE 8. ADDRESS OFFER TO (If other than Item 7)

ORDER UNDER DPAS (15 CFR 700)

6. REQUISITION/PURCHASE NUMBER

NOTE: In sealed bid solicitations "offer" and "offeror" mean "bid" and "bidder".

NEGOTIATED (RFP)

SEALED BID (IFB)

5. DATE ISSUED

1. THIS CONTRACT IS A RATED RATING PAGE OF PAGES

1 3

C. E-MAIL ADDRESS

EXT.NUMBERAREA CODE

B. TELEPHONE (NO COLLECT CALLS)A. NAME

10. FOR

INFORMATION

CALL:

CAUTION: LATE Submissions, Modifications, and Withdrawals: See Section L, Provision No. 52.214-7 or 52.215-1. All offers are subject to all terms and conditions contained in this solicitation.

(Date)(Hour) local timeuntildepository located in copies for furnishing the supplies or services in the Schedule will be received at the place specified in Item 8, or if hand carried, in the

SOLICITATION

9. Sealed offers in original and

PART IV - REPRESENTATIONS AND INSTRUCTIONS

OTHER STATEMENTS OF OFFERORS

EVALUATION FACTORS FOR AWARD

INSTRS., CONDS., AND NOTICES TO OFFERORS

REPRESENTATIONS, CERTIFICATIONS AND

LIST OF ATTACHMENTS

CONTRACT CLAUSES

PART III - LIST OF DOCUMENTS, EXHIBITS AND OTHER ATTACH.

I

J

K

L

M SPECIAL CONTRACT REQUIREMENTS

CONTRACT ADMINISTRATION DATA

DELIVERIES OR PERFORMANCE

INSPECTION AND ACCEPTANCE

PACKAGING AND MARKING

DESCRIPTION/SPECS./WORK STATEMENT

SUPPLIES OR SERVICES AND PRICES/COSTS

SOLICITATION/CONTRACT FORM

PART II - CONTRACT CLAUSESPART I - THE SCHEDULE

H

G

F

E

D

C

B

A

SEC. DESCRIPTION PAGE(S) (X) DESCRIPTION SEC. (X)

11. TABLE OF CONTENTS

18. OFFER DATE17. SIGNATURE

SUCH ADDRESS IN SCHEDULE.

IS DIFFERENT FROM ABOVE - ENTER

15C. CHECK IF REMITTANCE ADDRESS

EXT.NUMBERAREA CODE

15B. TELEPHONE NUMBER

(Type or print)AND

ADDRESS

OF

OFFEROR

CODE FACILITY

16. NAME AND TITLE OF PERSON AUTHORIZED TO SIGN OFFER15A. NAME

DATEAMENDMENT NO.DATEAMENDMENT NO.

and related documents numbered and dated):

amendments to the SOLICITATION for offerors

(The offeror acknowledges receipt of

14. ACKNOWLEDGEMENT OF AMENDMENTS

CALENDAR DAYS (%)30 CALENDAR DAYS (%)20 CALENDAR DAYS (%)10 CALENDAR DAYS (%)

(See Section I, Clause No. 52.232.8)

13. DISCOUNT FOR PROMPT PAYMENT

designated point(s), within the time specified in the schedule.

by the offeror) from the date for receipt of offers specified above, to furnish any or all items upon which prices are offered at the price set opposite each item, delivered at the

NOTE: Item 12 does not apply if the solicitation includes the provisions at 52.214-16, Minimum Bid Acceptance Period.

OFFER (Must be fully completed by offeror)

IMPORTANT - Award will be made on this Form, or on Standard Form 26, or by other authorized official written notice.

28. AWARD DATE

(Signature of Contracting Officer)

27. UNITED STATES OF AMERICA

25. PAYMENT WILL BE MADE BY

26. NAME OF CONTRACTING OFFICER (Type or print)

CODE 24. ADMINISTERED BY (If other than Item 7)

ITEM

(4 copies unless otherwise specified)

23. SUBMIT INVOICES TO ADDRESS SHOWN IN

41 U.S.C. 253 (c) ( 10 U.S.C. 2304 (c) (

22. AUTHORITY FOR USING OTHER THAN FULL AND OPEN COMPETITION:

21. ACCOUNTING AND APPROPRIATION20. AMOUNT19. ACCEPTED AS TO ITEMS NUMBERED

AWARD (To be completed by government)

CODE

REQ-112-19-00000202/15/2019

X

720112

USAID/Azerbaijan 111, Azadlig Avenue Baku AZ1007

1000 D 03/25/2019

Kenul Salimova 994 35 ksalimova@usaid.gov

124-9818

X

X

X

X

X

X

X

X

X

X

X

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PAGE(S)

Michael Rossman

AUTHORIZED FOR LOCAL REPRODUCTION

Previous edition is unusable

STANDARD FORM 33 (Rev. 9-97)

Prescribed by GSA - FAR (48 CFR) 53.214(c)

12. In compliance with the above, the undersigned agrees, if this offer is accepted within _____120_________ calendar days (60 calendar days unless a different period is inserted

ITEM NO. SUPPLIES/SERVICES QUANTITY UNIT UNIT PRICE AMOUNT

NAME OF OFFEROR OR CONTRACTOR

2 3

CONTINUATION SHEET

REFERENCE NO. OF DOCUMENT BEING CONTINUED PAGE OF

72011219R00001

(A) (B) (C) (D) (E) (F)

Delivery Location Code: USAID/AZERBAIJAN

USAID/Baku

96 Nizami Street

The Landmark Building

Baku 370010, Azerbaijan

0001 Private Sector Activity (PSA)

OPTIONAL FORM 336 (4-86)

Sponsored by GSA

FAR (48 CFR) 53.110

NSN 7540-01-152-8067

SOL-72011219R00001

REQUEST FOR PROPOSALS No.: 72011219R00001

ISSUE DATE: February 15, 2019

DEADLINE FOR QUESTIONS: March 1, 2019, 10:00 am Baku time

CLOSING DATE AND TIME: March 25, 2019, 10:00 am Baku time

The United States Government, represented by the United States Agency for International Development

(USAID) Mission to Azerbaijan is seeking proposals from the qualified companies and organizations interested in implementing the “Private Sector Activity” as described in this solicitation. Any type of for-profit, not-for-profit, educational, or faith-based institution may submit offers for this contract.

This procurement will be conducted under full and open competition procedures, pursuant to Part 15 of the Federal Acquisition Regulation (FAR) (48 CFR Chapter 1). If your organization decides to submit a proposal in response to this solicitation, it must be submitted in accordance with Section L of this RFP.

Proposals received after the closing date and time will be processed as late and handled in accordance with FAR 15.208.

Any questions regarding the RFP requirements must be submitted to Ms. Kenul Salimova, via email at ksalimova@usaid.gov and Mr. Michael Rossman at mrossman@usaid.gov no later than 10:00 am Baku time, March 1, 2019.

No questions will be accepted after this date. Any communications pertaining to this RFP must be through the Contracts Office within USAID/Azerbaijan.

Subject to availability of funds, USAID/Azerbaijan contemplates award of a Cost-Plus-Fixed-fee (CPFF)

Completion Type Contract for a period of five (5) years from the date of award. The estimated cost of this contract is $15 million, subject to availability of funds.

Proposals must be received electronically on or before the closing date stipulated above to provide the services and deliverables specified in the below RFP. Proposals must be sent via email attachment to Ms.

Kenul Salimova at ksalimova@usaid.gov and Mr. Michael Rossman at mrossman@usaid.gov by closing date and must conform to all requirements outlined in Section L.

After proposals have been sent, please contact ksalimova@usaid.gov if you have not received acknowledgment of receipt of the proposal within 2 days.

Any amendments to this solicitation will be issued and posted on the Federal Business Opportunities website (www.fbo.gov ). Offerors are encouraged to check the website periodically. It is the responsibility of the Offeror to ensure that the solicitation or any amendments to it has been received from Internet in its entirety. USAID bears no responsibility for data errors resulting from transmission or conversion processes. Oral instructions, answers or guidance from any USAID source, prior to the award of the contract, shall not be binding. For more details regarding proposal submission please see Section L of this RFP.

mailto:ksalimova@usaid.gov mailto:mrossman@usaid.gov mailto:ksalimova@usaid.gov mailto:mrossman@usaid.gov mailto:ksalimova@usaid.gov http://www.fbo.gov/

TABLE OF CONTENTS

SF33 – SOLICITATION, OFFER AND AWARD...…………...………………………………… ……. 1

PART I – THE SCHEDULE

SECTION B - SUPPLIES OR SERVICES/PRICES

B.1 PURPOSE

B.2 CONTRACT TYPE

B.3 ESTIMATED COST, FIXED FEE, AND OBLIGATED AMOUNT

B.4 CONTRACT BUDGET AND CEILINGS

B.5 BUDGET

B.6 PAYMENT OF FIXED FEE

B.7 INDIRECT COSTS

B.8 ADVANCE UNDERSTANDING ON CEILING INDIRECT COST RATES AND FINAL

REIMBURSEMENT FOR INDIRECT COSTS

B.9 MULTI-YEAR CONTRACT AND CANCELLATION CEILING

SECTION C - STATEMENT OF OBJECTIVES

SECTION D - PACKAGING AND MARKING

D.1 AIDAR 752.7009 MARKING (JAN 1993)

D.2 MARKING AND BRANDING STRATEGY

D.3 BRANDING STRATEGY AND MARKING PLAN

D.4 APPROVAL OF CONTRACTOR BRANDING IMPLEMENTATION AND MARKING PLAN ... 24

SECTION E - INSPECTION AND ACCEPTANCE

E.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE

E.2 INSPECTION AND ACCEPTANCE

E.3 CONTRACTOR PERFORMANCE EVALUATION

SECTION F - DELIVERIES OR PERFORMANCE

F.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE

F.2 PERIOD OF PERFORMANCE

F.3 PLACE OF PERFORMANCE

F.4 AUTHORIZED WORK WEEK

F.5 KEY PERSONNEL

F.6 AIDAR 752.242-70 PERIODIC PROGRESS REPORTS (OCT 2007)

F.7 REPORTS

F.8 AIDAR 752.7005 SUBMISSION REQUIREMENTS FOR DEVELOPMENT EXPERIENCE

DOCUMENTS (SEP 2013)

SECTION G – CONTRACT ADMINISTRATION DATA

G.1 CONTRACTING OFFICER'S AUTHORITY

G.2 ADMINISTRATIVE CONTRACTING OFFICE

G.3 CONTRACTING OFFICER’S REPRESENTATIVE (COR)

G.4 ACCEPTANCE AND APPROVAL

G.5 TECHNICAL DIRECTIONS/RELATIONSHIP WITH USAID

G.6 AIDAR 752.7003 DOCUMENTATION FOR PAYMENT (NOV 1998)

G.7 INVOICES

G.8 PAYING OFFICE

G.9 ACCOUNTING AND APPROPRIATION DATA

SECTION H - SPECIAL CONTRACT REQUIREMENTS

H.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE

H.2 AIDAR 752.225-70 SOURCE AND NATIONALITY REQUIREMENTS (FEB 2012)

H.3 AIDAR 752.7004 EMERGENCY LOCATOR INFORMATION (JUL 1997)

H.4 INSURANCE AND SERVICES

H.5 AIDAR 752.228-70 MEDICAL EVACUATION (MEDEVAC) SERVICES (JULY 2007)

H.6 AUTHORIZED GEOGRAPHIC CODE

H.7 LANGUAGE REQUIREMENTS

H.8 AIDAR 752.7034 ACKNOWLEDGMENT AND DISCLAIMER (DEC 1991)

H.9 EXECUTIVE ORDER ON TERRORISM FINANCING (FEB 2002)

H.10 AIDAR 752.7032 INTERNATIONAL TRAVEL APPROVAL AND NOTIFICATION

REQUIREMENTS (JAN 1990)

H.11 FOREIGN GOVERNMENT DELEGATIONS TO INTERNATIONAL CONFERENCES (JUNE

2012)

H.12 ADS 302.3.5.5 REPORTING OF FOREIGN TAXES (JUL 2007)

H.13 AIDAR 752.222-7USAID DISABILITY POLICY - ACQUISITION (DECEMBER 2004)

H.14 AIDAR 752.209-71 ORGANIZATIONAL CONFLICTS OF INTEREST DISCOVERED AFTER

AWARD (JUN 1993)

H.15 ENVIRONMENTAL COMPLIANCE

H.16 DISCLOSURE OF INFORMATION

H.17 BUSINESS CLASS TRAVEL

H.18 NEWS RELEASE

H.19 TITLE TO PROPERTY

H.20 NONDISCRIMINATION (JUNE 2012)

H.21 AIDAR 752.7036 USAID IMPLEMENTING PARTNER NOTICES (IPN) PORTAL FOR

ACQUISITION (JULY 2014)

H.22 SUBMISSIONOF DATASETS TO THE DEVELOPMENT DATALIBRARY (DDL) (OCT 2014)

H.23 PROHIBITION ON THE USE OF FEDERAL FUNDS TO PROMOTE, SUPPORT, OR

ADVOCATE THE LEGALIZATION OR PRACTICE OF PROSTITUTION– TIP ACQUISITION

(MAY 2007)

H.24 USAID IMPLEMENTATION OF SECTION 508 OF THE REHABILITATION ACT OF 1973

AND FEDERAL ACQUISITION CIRCULAR (FAC) 97-27 "ELECTRONIC AND INFORMATION

TECHNOLOGY ACCESSIBILITY

H.25 FAR 52.203-99, PROHIBITION ON CONTRACTING WITH ENTITIES THAT REQUIRE

CERTAIN INTERNAL CONFIDENTIALITY AGREEMENTS (DEVIATION 2015-02)

H.26 LOGISTIC SUPPORT

H.27 CONSENT TO SUBCONTRACTS

H.28 CONFIDENTIALITY

H.29 CONTRACTOR’S USE OF PROJECT VEHICLES AND LIABILITY INSURANCE

REQUIREMENTS FOR PRIVATELY OWNED VEHICLES

H.30 NONEXPENDABLE PROPERTY PURCHASES AND INFORMATION TECHNOLOGY

RESOURCES

H.31 FRAUD REPORTING

H.32 AIDAR 752.245-70 GOVERNMENT PROPERTY - USAID REPORTING REQUIREMENTS

(OCT 2017)

H.33 GRANTS UNDER CONTRACT

H.34 FACILITIES USED FOR RELIGIOUS ACTVITIES

H.35 SMALL BUSINESS SUBCONTRACTING PLAN, ISRs AND SSRs

H.36 THIRD COUNTRY TRAINING

H.37 PERSONNEL APPROVALS

H.38 BUMPERS ANALYSES AND COR APPROVALS

SECTION I- CONTRACT CLAUSES

I.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE

I.2 52.216-24 LIMITATION OF GOVERNMENT LIABILITY (APR 1984)

I.3 52.222-35 EQUAL OPPORTUNITY FOR VETERANS (OCT 2015)

I.4 52.222-36 EQUAL OPPORTUNITY FOR WORKERS WITH DISABILITIES (JUL 2014)

I.5 52.247-67 SUBMISSION OF TRANSPORTATION DOCUMENTS FOR AUDIT

(FEB 2006)

I.6 AIDAR 752.7101 VOLUNTARY POPULATION PLANNING ACTIVITIES (JUN 2008)

SECTION J - LIST OF ATTACHMENTS

SECTION K - REPRESENTATIONS, CERTIFICATIONS, AND OTHER STATEMENTS

OF BIDDERS

K.1 NOTICE LISTING SOLICITATION PROVISIONS INCORPORATED BY

REFERENCE

K.2 52.204-8 ANNUAL REPRESENTATIONS AND CERTIFICATIONS (JAN 2018)

K.3 INSURANCE - IMMUNITY FROM TORT LIABILITY

K.4 AGREEMENT ON, OR EXCEPTIONS TO, TERMS AND CONDITIONS

K.5 52.209-5 CERTIFICATION REGARDING RESPONSIBILITY MATTERS (OCT 2015)

K.6 52.209-7 INFORMATION REGARDING RESPONSIBILITY MATTERS (JULY 2013)

K.7 52.215-6 PLACE OF PERFORMANCE (OCT 1997)

K.8 52.222-21 PROHIBITION OF SEGREGATED FACILITIES (APR 2015)

K.9 52.222-22 PREVIOUS CONTRACTS AND COMPLIANCE REPORTS (FEB 1999)

K.10 52.225-20 PROHIBITION ON CONDUCTING RESTRICTED BUSINESS OPERATIONS IN

SUDAN—CERTIFICATION (AUG 2009)

K.11 52.227-15 REPRESENTATION OF LIMITED RIGHTS DATA AND RESTRICTED COMPUTER

SOFTWARE (DEC 2007)

K.12 52.230-1 COST ACCOUNTING STANDARDS NOTICES AND CERTIFICATION

K.13 52.230-7 PROPOSAL DISCLOSURE—COST ACCOUNTING PRACTICE CHANGES (APR

2005)

K.14 AUTHORIZED NEGOTIATORS

K.15 SIGNATURE

SECTION L - INSTRUCTIONS, CONDITIONS, AND NOTICES TO BIDDERS

L.1 FAR 52.252-1 SOLICITATION PROVISIONS INCORPORATED BY REFERENCE

(FEB 1998)

L.2 52.216-1 TYPE OF CONTRACT (APR 1984)

L.3 52.233-2 SERVICE OF PROTEST (SEP 2006)

L.4 GENERAL INSTRUCTIONS TO OFFERORS

L.5 SUBMISSION/DELIVERY INSTRUCTIONS

L.6 INSTRUCTIONS FOR PREPARATION OF TECHNICAL PROPOSAL

L.7 INSTRUCTIONS FOR PREPARATION AND SUBMISSION OF THE COST/BUSINESS

PROPOSAL

L.8 INSTRUCTIONS FOR THE PREPARATION OF BRANDING (BIP) AND MARKING (MP)

PLANS

SECTION M - EVALUATION FACTORS FOR AWARD

M.1 GENERAL INFORMATION

M.2 TECHNICAL EVALUATION CRITERIA

M.3 COST/BUSINESS EVALUATION

M.4 DETERMINATION OF COMPETITIVE RANGE

M.5 SOURCE SELECTION

ATTACHMENT 1 - USAID FORM 1420-17 - CONTRACTOR EMPLOYEE BIOGRAPHICAL DATA

SHEET

ATTACHMENT 2 - DISCLOSURE OF LOBBYING ACTIVITIES

ATTACHMENT 3 - RISK ASSESSMENT AND MITIGATION STRATEGY

ATTACHMENT 4 - MISSION LOCAL COMPENSATION PLAN

PART I – THE SCHEDULE

SECTION B - SUPPLIES OR SERVICES/PRICES

B.1 PURPOSE

The purpose of this contract is to provide technical assistance and services as described in detail in contract Section C, Statement of Objectives, for the implementation of USAID/Azerbaijan Private Sector

(PSA) Activity.

B.2 CONTRACT TYPE

This is a cost-plus-fixed-fee (CPFF) completion-type contract. For the consideration set forth below, the

Contractor will achieve the performance objectives and deliverables or outputs described in Section C, Statement of Objectives, and in accordance with the performance standards specified herein.

B.3 ESTIMATED COST, FIXED FEE, AND OBLIGATED AMOUNT

(a) For the five-year contract period, the estimated cost for the performance of the work required hereunder, exclusive of fixed fee, is _______ [ TBD ] . The fixed fee, is

_______ [ TBD ]. The estimated cost plus fixed fee, if any, is _______ [ TBD ] .

(b) Within the estimated cost plus fixed fee specified in paragraph (a) above, the amount currently obligated and available for reimbursement of allowable costs incurred by the Contractor (and payment of fee) for performance hereunder is _______ [ TBD ] . The Contractor must not exceed the aforesaid obligated amount, unless authorized by the contracting officer pursuant to the clause of this contract entitled “Limitation of Funds (APR 1984)” (FAR 52.232-22).

(c) Funds obligated hereunder are anticipated to be sufficient through _______ [ TBD ] .

B.4 CONTRACT BUDGET AND CEILINGS

(a) The contract budget found in Section B.5, Budget, is based on the contractor’s original proposal which was accepted by USAID through award of this contract.

(b) Without the prior written approval of the Contracting Officer, the Contractor may not exceed the total estimated cost set forth in the budget hereunder or the obligated amount, whichever is less.

B.5 BUDGET

a. The following itemized budget sets forth the estimates for reimbursement of dollar costs for individual line items of cost, and the fixed fee.

Grand Total Contract Period of Performance Budget Total USD

I. Estimated Cost

1. Salaries

2. Fringe Benefits

3. Overhead

4. Travel and Transportation

5. Allowances

6. Other Direct Costs

7. Equip, Vehicles and Freight

8. Training

9. Subcontractors

10. Grants Under Contracts

11. General and Administrative

Subtotal Contract Total Estimated Cost

II. Fixed Fee

III. Total Estimated Contract Cost Plus Fixed Fee

B.6 PAYMENT OF FIXED FEE

a) The Government shall pay the Contractor for performing this contract the fixed fee specified in the

Schedule.

b) In accordance with FAR 52.216-8 “Fixed Fee (JUN 2011),” USAID reserves the right to withhold and reserve not to exceed $100,000. The Contracting Officer shall release 75 percent of all fee withholds under this contract after receipt of an adequate certified final indirect cost rate proposal covering the year of physical completion of this contract, provided the Contractor has satisfied all other contract terms and conditions, including the submission of the final patent and royalty reports, and is not delinquent in submitting final vouchers on prior years’ settlements. The Contracting Officer may release up to 90 percent of the fee withholds under this contract based on the Contractor’s past performance related to the submission and settlement of final indirect cost rate proposals.

B.7 INDIRECT COSTS

The contract clause entitled “Allowable Cost and Payment (JUN 2013)”, FAR 52.216-7, specifies that the indirect cost rates shall be established for each of the contractor’s accounting periods that apply to this contract. Pending establishment of revised provisional or final indirect cost rates, allowable indirect costs shall be reimbursed on the basis of the following negotiated provisional or predetermined rates and the appropriate bases:

Description Rate Base Type Period

TBD TBD% 1/ 1/ 1/

TBD TBD% 2/ 2/ 2/

1/ Base of Application: TBD

Type of Rate: TBD

Period: TBD

2/ Base of Application: TBD

Type of Rate: TBD

Period: TBD

B.8 ADVANCE UNDERSTANDING ON CEILING INDIRECT COST RATES AND FINAL

REIMBURSEMENT FOR INDIRECT COSTS

(a) The Contractor must make no change in its established method of classifying or allocating indirect costs without the prior written approval of the Contracting Officer.

(b) Reimbursement for indirect costs must be at the lower of the negotiated final provisional/pre-determined rates or the following ceiling rates:

Description 2019 2020 2021 2022 2023

[Rate 1 description to be inserted] % % % % %

(c) The Government will not be obligated to pay any additional amount should the final indirect cost rates exceed the negotiated ceiling rates. If the final indirect cost rates are less than the negotiated ceiling rates, the negotiated rates will be reduced to conform to the lower rates.

(d) This advance understanding must not change any monetary ceiling, cost limitation or on established in the contract.

B.9 MULTI-YEAR CONTRACT AND CANCELLATION CEILING

This contract is considered non-severable, and is therefore a multi-year contract as defined in FAR

17.103. Therefore, this contract is subject to the requirements of FAR 17.106.

A. Performance under this contract during the second and subsequent activity years is contingent upon the appropriation of funds. All activity years except the first are subject to cancellation.

Cancellation shall occur by the dates specified below if the Contracting Officer:

1. Notifies the Contractor that funds are not available for contract performance for any subsequent activity year; or

2. Fails to notify the Contractor that funds are available for performance of the succeeding activity year.

In lieu of cancellation ceilings and charges, the contactor agrees that, due to the nature of the services rendered under this contract, there will be no charges based on cancellation as required under FAR

52.217-2, as there will be no contractor-incurred non-recurring costs, including such costs, where applicable, as plant or equipment relocation or rearrangement, special tooling and special test equipment, pre-production engineering, initial rework, initial spoilage, pilot runs, allocable portions of the costs of facilities to be acquired or established for the conduct of the work, costs incurred for the assembly, training, and transportation to and from the job site of a specialized work force, and unrealized labor learning required to perform this contract.

Per FAR Part 17.105-1(c)(3), in the event of cancellation under this FAR subpart, the following Schedule establishes the dates by which the Contracting Officer will notify the Contractor of the cancellation of the contract.

Activity Year Cancelation Date

Year 1: 2019/2020

N/A

Year 2: 2020/2021 September 30, 2020

Year 3: 2021/2022 September 30, 2021

Year 4: 2022/2023 September 30, 2022

Year 5: 2023/2024 September 30, 2023

END OF SECTION B

SECTION C - STATEMENT OF OBJECTIVES

C.1 BACKGROUND

After the fall of the Soviet Union, Azerbaijan experienced internal and regional conflict, an economic collapse, and rampant corruption. Soon after declaring its independence in 1991, Azerbaijan became entangled in a war with neighboring Armenia. This conflict, combined with the instability in Russia, led to a decline in economic activity and an unstable political situation with power changing hands quickly in those early years. The “resource curse” is a very problematic issue for many oil-rich countries, in that they focus only on the development of their oil exports, while ignoring other sectors of the economy.

Azerbaijan is no exception to this rule. In the early 2000s, as deep water oil wells began producing oil, the country experienced rapid economic growth. Unfortunately, the capacity of government institutions, and the lack of any framework for transparency and accountability, led to a concentration of power and the intertwining of political and economic interests. As opportunities for corruption increased, those in power had no incentive to undertake legal reforms that would create a transparent business enabling environment and stimulate private sector development.

In the agriculture sector, the government privatized former state-owned assets, which resulted in the break-up of large collective farms into small family plots. Many of those who received land had no interest in farming, had no previous experience in agriculture, and did not have the resources to develop their plots into commercial farms. Without access to inputs like fertilizers and pesticides, and with virtually no investment into the sector, agricultural yields declined drastically. For example, the number of tractors and combines fell from 40,900 in 1990 to 17,000 units in 2016. The total area under agricultural production fell from 14,728,000 hectares in 1991 to 9,204,000 hectares by 1998, following the land privatization. The average productivity of vegetable fields dropped from 21,200 kg in 1990 to

14,000 kg per hectare. An agricultural sector analysis carried out by USAID/Azerbaijan in 2018 identified agricultural sub-sectors, including the production and processing of fruits, vegetables, berries, and other high-value horticulture products, as having strong employment generation possibilities; strong potential to integrate MSMEs into sub-sector growth; strong potential for value addition; and high export potential.

Value chains in these subsectors have the potential to compete in EU, Gulf, Eastern European, and Asian markets. Growth opportunities exist for special niche market products like off-season production of fruits and vegetables, production of fruits and vegetables that have strong domestic demand but weak production, and niche products that that grow well in Azerbaijan, including organically-certified products.

In addition, many fruit, vegetable, and berry value chains have high potential for value addition through drying, processing, and/or packaging before sale to domestic or export markets. These areas also present an important opportunity to increase sales of U.S. agricultural products in Azerbaijan through input and supply companies, of which American products currently represent only 5-7% of total sales. The government’s proposed growth in the agricultural sector will require an estimated $625 million in annual input and equipment that could be supplied by American companies.

History of USAID support to Azerbaijan’s agriculture sector

Implementation of the Private Sector activity must build on and complement the achievements of existing and past programs designed to support Azerbaijan’s agriculture. The U.S. Government views the development of the non-oil sector in Azerbaijan as necessary for the long term development and sustainability of the economy. It views two areas in particular as key in achieving this goal. The first is business environment. The second is the development of the agricultural sector. Over the past 18 years, USAID has undertaken many activities that were designed to address these two areas. The Offeror is expected to familiarize itself with the long history of USAID’s work in this sector and point out ways its approach builds upon previous awards.

In March 2000, USAID launched the three-year Participatory Agriculture Project in Azerbaijan

(PAPA) that was designed to work in livestock and hazelnuts to increase market responsiveness of client firms and developing private membership associations which would provide services and become financially self-supporting.

In January 2002, USAID launched the three-year Agri-Input Market Development (AMDA) project that was designed to build an inputs supplier network and association to promote and support agribusiness development (trade associations, policy reform, and technical advice) and assist individual agro-enterprises to start new ventures, expand and modernize existing facilities, and access credit.

In September 2003, USAID launched the five-year Rural Enterprise Competitiveness Program

(RECP) that was designed to improve domestic product quality and expand focus on competitive products.

In August 2004, USAID launched the five-year Azerbaijan Business Assistance and Development

Project (ABAD) that was designed to build the productive capacity of targeted communities and establish rural information services and outreach campaigns for targeted communities.

In August 2007, USAID launched the three-year Trade and Investment Reform Support Project

(TIRSP) that was designed to improve the transparency, predictability, and market-friendliness of the trade and investment policy and institutional environment in Azerbaijan, to support further progress towards WTO accession and build the capacity of institutions to comprehensively implement the

WTO Agreement. It also supported the government’s efforts to develop a transparent and efficient trade and investment enabling environment and provided training on cost/benefit analysis in various public sectors, including water, energy, and education.

In September 2008, USAID launched the two-year Private Sector Competitiveness Enhancement

Project (PSCEP) that was designed to enhance the competitiveness of targeted non-oil sectors and sub-sectors in order to promote economic diversification and sustainable expansion of investment and employment in the Azerbaijani economy.

In September 2010, USAID launched the three-year Azerbaijan Competitiveness and Trade Project

(ACT) that was designed to improve the domestic business enabling environment; develop a liberalized, more transparent trade environment; and improve targeted value chains (apples, hazelnuts, pomegranate, dairy, aqua culture) in the agricultural sector in Azerbaijan.

USAID’s Agricultural Support to Azerbaijan Project (ASAP) (2014-19) has improved rural livelihoods by increasing farmers productivity and incomes, supported private agricultural training centers, producers, post-harvest handlers, and processors to upgrade and build equipment and facilities, meet international standards and certifications, participate in international study tours, food fairs and exhibitions in developed markets, and build business linkages with US companies.

C.2 PROBLEM STATEMENT

Although the government of Azerbaijan focused on developing the oil and gas sector, it retained rhetoric on the importance of the non-oil sector. At various times, the Government of Azerbaijan adopted state programs on food security, regional socio-economic development, and supporting entrepreneurs with micro, small and medium sized enterprises (MSMEs). However, most of these programs were not properly implemented and did not provide effective support to the country’s MSMEs. The need for developing non-oil sectors, especially agriculture, which officially employs half the Azerbaijani workforce, became obvious as the world price for oil started declining in 2014. The price of Brent fell from $114.25 per barrel in 2014 to $45.13 per barrel by the middle of January 2015 and decreased to its lowest level - $28.55 per barrel on 18 January, 2016. This drop in the world prices of oil caused major economic turmoil in the country, distorted the country’s trade balance, caused over 120% devaluation to the local currency, reduced the country’s income, decreased government investments, disrupted the financial sector, and increased unemployment.

In 2015, The Government of Azerbaijan (GOAJ) developed strategic sector roadmaps for developing the economy, with a special focus on non-oil sectors. Since then, the GOAJ had been implementing a reform agenda that introduced tax incentives for non-oil exports, supports agricultural exports by facilitating greater exposure to regional markets, implements administrative reforms to remove barriers for trade, registers agricultural associations, and establishes new government agencies to support small and medium sized business, such as the Small and Medium Business Agency, Food Safety Agency, Center for

Economic Reforms. USAID/Azerbaijan has noted a shift in the last year in GOAJ efforts to promote greater cooperation between government and the private sector. The agencies mentioned previously, as well as other relevant government ministries and agencies, are now cooperating with foreign governments and donor agencies in finding solutions to challenges that face the non-oil sector. Of particular interest to the GOAJ and USAID, based on a history of successful legacy programming, is the agriculture sector.

Accordingly, the activities under this award will include a significant focus on this sector.

Development Hypothesis

If USAID uses a partnership and co-investment approach to improve the competitiveness of the private sector with a special focus on agriculture, and reduces administrative barriers that hinder the development of micro, small, and medium enterprises (MSMEs) in Azerbaijan, then the Azerbaijan non-oil economy will be more resilient and allow for increased U.S. and western investment.

For the purposes of this activity the Contractor will utilize the U.S. Government’s Global Hunger and

Food Security Initiative “Feed the Future” definition of micro, small, and medium enterprises. The size of an enterprise is determined by the number of full-time equivalent (FTE) employees employed indicated in parentheses: micro (1-10); small (11-50); and medium (51-100). The Contractor must use this definition when designing support to MSMEs and reporting results

C.3 STATEMENT OF OBJECTIVES

The goal of this Activity is to utilize a partnership and co-investment approach to support a more resilient

Azerbaijan economy and improve the business enabling environment. Supporting the non-oil sector, by improving the competitiveness of the private sector (with a special emphasis on agriculture), and reducing the administrative barriers that hinder the development of micro, small, and medium enterprises

(MSMEs), will contribute to a more secure and sustainable Azerbaijani economy. Modernization and improvement of the public sectors will support the diversification of Azerbaijan’s economy and requires strong public institutions with clear roles and responsibilities. These institutions require institutional capacity to carry out new responsibilities and adjust to institutional change to implement the reforms outlined in the strategic roadmap. It is also crucial to have a private sector that is able to respond to improvements in the business enabling environment. The objectives of this activity are to:

1. Develop a more diversified non-oil economy through initiatives that assist small and medium sized agribusinesses and farmers to grow;

2. Improve the business environment for micro, small and medium businesses; and

3. Support Azerbaijan’s economic reforms.

USAID believes that improvements to Azerbaijan’s economic governance in legislative and regulatory areas combined with improvements in the competitiveness of private sector businesses will lead to an improved investment climate. This, in turn, will encourage local and foreign businesses to invest in

Azerbaijan, leading to more employment opportunities and non-oil economic development. By improving the competitiveness of agribusinesses and small/medium sized farmers sectors through improvements in quality, quantity, and efficiency, the agriculture sector will be able to compete in local, regional, and world markets and contribute to the diversification of the economy. Through this activity, the quantity and quality of agricultural goods produced will increase; there will be more education/knowledge-sharing on agricultural production available for micro, small and medium sized farmers; rural livelihoods will improve; agricultural exports to developed markets will increase; US business linkages and exports will increase; and the trade regulatory environment for businesses will improve. The activity will assist agricultural sub-sectors that show strong potential to create jobs, increase

MSME revenues, and boost Azerbaijan’s non-oil income.

C. 3.1 OBJECTIVE 1: MORE DIVERSIFIED NON-OIL ECONOMY (70%)

USAID’s objective is to provide assistance that supports the increased diversification of the non-oil economy in Azerbaijan, specifically but not limited to the agricultural sector. The Activity is intended to assist small and medium-sized farmers to become commercially viable farmers competing in local or export markets. It will also work with processors, traders, cold storage operators to improve their adherence to international standards. The activity must include small capacity building grants in support of developing the agricultural sector and value chains in which the activity works, as well as in support of

USAID’s Global Development Alliance (GDA) initiatives (See www.usaid.gov/gda).

The following results are expected to be achieved during the course of the Activity.

Offerors are welcome to suggest additional results to be added to Contract deliverables on contract award as part of their proposals.

Objective 1 Results:

Dollar value of cost-share leveraged from grant recipient organizations

Increased agricultural exports to developed markets in Eastern Europe, Gulf states, and Asia

Percentage increase in sales by assisted enterprises

Improved rural livelihoods in targeted regions

Increased value of US exports to Azerbaijan in targeted sectors

Number of farmers using new agronomy and business practices

Amount of business loans to private sector facilitated under the activity

Objective 1 Indicators

USAID will track the performance of the Private Sector Activity objectives by monitoring indicators that measure improvements in the diversification of the Azerbaijani non-oil economy. The Contractor will specify what performance targets will be reached based on the proposed performance work statement, against indicators specified below.

The Offeror is invited to suggest indicators that would best measure the project’s outcomes, specific to the proposed performance work statement. USAID recommends the following indicators, but note that these indicators may change during the development of the Monitoring, Evaluation and Learning Plan.

All offerors are welcome to propose additional indicators in accordance with their proposed technical approach:

Increased quantity of Private Sector Activity-targeted farm products sold in country and exported

(Disaggregated by product and market destination)

Increased number of companies that are compliant with food quality and safety standards of developed markets

Number of new Private Sector Activity-facilitated business deals between US and Azerbaijani companies

Number of farmers using new Private Sector Activity-introduced agronomy practices

Percentage increase in farm productivity in Private Sector Activity-targeted value chains http://www.usaid.gov/gda

Number of new jobs created in Private Sector Activity-targeted regions, disaggregated by age and gender

Increased business and academic linkages with US

C. 3.2 OBJECTIVE 2: IMPROVED BUSINESS ENVIRONMENT FOR MICRO, SMALL AND

MEDIUM-SIZED BUSINESSES - 15%

Businesses face administrative barriers that stifle competition, dissuade investment, constrain trade, and limit the country’s integration into the global economy. The Activity will utilize demand driven approach and work with associations and MSMEs to identify these administrative barriers, communicate them to the relevant government agencies, and target at the elimination of these barriers. By targeting these issues, the Private Sector Activity will help to increase the benefits of economic growth and simultaneously support development of more transparent regulatory regimes by supporting the GOAJ in removing administrative barriers that inhibit competition, distort investment, constrain trade, and limit progress in

Azerbaijan’s integration into the global economy. The Activity will contribute to the harmonization of

Azerbaijan’s trade and investment regimes (legislative and institutional) with international standards and recognized best practices. Removing administrative barriers and opening up new opportunities for establishing and developing the private sector will give businesses increased opportunities to produce, trade, export, and earn income. The Private Sector Activity will improve the capacity of select government agencies, potentially including the Small and Medium Business Agency, Food Safety

Agency, State Service for Antimonopoly Policy and Supervision of Consumer Market, Intellectual

Property Agency, Azerbaijan Export Promotion Agency, the State Tourism Agency, and other relevant agencies under the Ministry of Economy, Ministry of Agriculture, Ministry of Taxes, and the President’s

Administration.

The following results are expected to be achieved during the course of the Activity.

Offerors are welcome to suggest additional results to be added to Contract deliverables on contract award as part of their proposals.

Objective 2 Results:

Number of administrative barriers to MSME removed

Objective 2 Indicators:

USAID will track the performance the Private Sector Activity objectives by monitoring indicators that measure improvements in the diversification of the Azerbaijani non-oil economy. The Offeror will specify what performance targets will be reached based on the proposed performance work statement, against indicators specified below.

The Offeror is invited to suggest indicators that would best measure the project’s outcomes, specific to the proposed performance work statement.

USAID recommends the following indicators, but note that these indicators may change during the development of the Monitoring, Evaluation and Learning Plan. All offerors are welcome to propose additional indicators in accordance with their proposed technical approach:

Ratio of number of recommendations provided to GoAJ reformers responsible for improvements in business enabling environment to number of technical and policy recommendations implemented by the GoAJ (disaggregated by recommendations from contractor, business associations, MSMEs, and

GOAJ agencies)

Number of administrative barriers removed for MSMEs as a result of Private Sector Activity interventions

Number of new legislative acts improving the business environment.

Improved favorable perception by MSMEs of the business enabling environment.

Number of facilitated exchanges between by business associations, MSMEs, and the GOAJ.

C.3.3 OBJECTIVE 3: SUPPORT FOR AZERBAIJAN’S ECONOMIC REFORMS – 15%

The third objective of the Private Sector Activity is to increase Azerbaijan’s economic stability by supporting economic reform initiatives to help boost the non-oil sector. Under this objective, the Offeror is expected to specify a technical approach for a rapid, flexible response mechanism that provides technical specialists and limited material support to Azerbaijani officials who require assistance to identify public sector reforms. The specialists will then recommend reform implementation options and monitor the progress of reforms offering assistance as needed. Over the planned five-year life of the mechanism, USAID estimates a need for both short-term and long-term technical assistance to

Azerbaijani counterparts, potentially including specialists in: Monetary Policy; Banking Supervision;

Financial Intelligence; Public Financial Management; Tax and Revenue; Economic Development;

Regulatory/and Policy Development; Public Administration; Organizational Development; and others as identified by USAID or driven by demand from within Azerbaijan’s government and private sector.

Under this objective, the contractor may support activities of governmental, non-governmental, and private sector actors to enhance the environment for economic reforms in Azerbaijan, or to support particular objectives under the Private Sector Activity. Technical assistance to government agencies may include the Ministries of Agriculture, Economy, and Taxes, the Food Safety Agency, the Small and

Medium Business Agency, the Central Bank, the Financial Markets Supervisory Authority, the Financial

Monitoring Service, the Intellectual Property Agency, the State Agency for Anti-monopoly Policy and

Supervision of Consumer Market, the State Tourism Agency, and the Center for Analysis of Economic

Reforms and Communication. All work must assist the relevant government agencies to implement reform initiatives and improve their rules, regulations, and the practices to supervise financial institutions;

ensure financial sector stability; increase transparency and reduce opportunities for graft and corruption;

and make the country more attractive to foreign investment.

The following results are expected to be achieved during the course of the Activity. Offerors are welcome to suggest additional results to be considered.

Objective 3 Results

Objective 3 activities are “crosscutting” and support Objectives 1 - 2.

Number of economic reforms implemented through assisted agencies.

Objective 3 Indicators

USAID will track the performance of Objective 3 activities by monitoring indicators that measure the rapid deployment of technical advisors who are able to identify impediments and recommend near term remediation measures to improve public sector performance.

The Offeror must specify what performance targets will be reached based on the proposed performance work, against indicators specified below. The Offeror is invited to suggest indicators that would best measure the project’s outcomes, specific to the proposed technical approach.

USAID’s recommends the following indicators, but note that these indicators may change during the development of the Monitoring, Evaluation and Learning Plan. All offerors are welcome to propose additional indicators in accordance with their proposed technical approach:

RATIO of NUMBER of recommendations provided to Azerbaijani reformers responsible for improvements in economic diversification and the enabling environment for businesses.

NUMBER of technical and policy recommendations implemented by the GoAJ.

C.4 CONTRACT TECHNICAL DELIVERABLES

USAID is committed to quantifiable results. Through the three contract objectives, this activity must achieve the minimum results listed in the table below.

Offerors are welcome to propose more than the minimum requirements listed, in correlation with the proposed technical approach.

The minimum deliverables for this contract are as follows:

Table 1: Contract Deliverables

Number Result Contract Year Contract Total

1 2 3 4 5

1 Dollar value of cost-share leveraged from grant recipient organizations

TBD TBD TBD TBD

TBD $7 million

2 Increased agricultural exports to developed markets in

Eastern Europe, Gulf states, and Asia

TBD TBD TBD TBD TBD 30% increase in targeted farm products exported to developed markets

3 Percentage increase in sales by assisted enterprises

TBD TBD TBD TBD TBD 50%

4 Improved rural livelihoods in targeted regions

TBD TBD TBD TBD TBD 50% increase in income of beneficiary households engaged in targeted sectors

5 Increased value of US exports to Azerbaijan in targeted sectors

TBD TBD TBD TBD TBD $20 million

6 Number of farmers using new agronomy and business practices

TBD TBD TBD TBD TBD 30,000

7 Amount of business loans to private sector facilitated under the activity

TBD TBD TBD TBD TBD $5 million

8 Number of economic administrative barriers

TBD TBD TBD TBD TBD 10 barriers removed

9 Number of economic reforms implemented through assisted agencies

TBD TBD TBD TBD TBD 5 economic reforms

C. 5. IMPLEMENTATION REQUIREMENTS

The Contractor must integrate the following requirements into its implementation approach.

Place of Performance. This contract will take place countrywide in Azerbaijan.

Specific roles and expectations. It is expected that the implementer for PSA will regularly attend and actively participate in relevant donor coordination events in Azerbaijan, and, if necessary, organize such coordination events. In addition, along with USAID Mission personnel, the implementer will regularly meet with GOAJ counterparts in order to keep them informed of the activities. Finally, the implementer must regularly meet with the COR.

Information and Communications Technology. The contractor shall use innovative methods and ICT tools as appropriate to implement the project, ensure that results are sustainable, reach targeted beneficiaries effectively and cost efficiently, and demonstrate new ways to do things.

Environment. The contractor will adhere to 22 CFR 216 requirements. For agricultural activities, a

PERSUAP is required and must be approved by the COR prior to implementation of relevant activities.

Grants. Two kinds of grants to the local entities are anticipated under this activity –matching grants to private sector and community grants. The grants will be made for achieving results under Objective 1.

Proposals responding to this SOO shall, at a minimum, detail (i) the operational relationship between the contractors and the grantees in the grants manual, (ii) all of the deliverables, and (iii) the maximum value of the grants.

Furthermore, the Contractor will provide small grants to BDS’, associations, farmers, agribusinesses, agricultural communities, and other beneficiaries in support of developing the agricultural sector and value chains in which the activity works, as well as in support of USAID’s Global Development Alliance initiatives (GDA) (see:www.usaid.gov/gda). The Contractor will be responsible for all aspects of the grant management process and must ensure that all grant agreements are managed in compliance with the

SOO, USAID regulations, and U.S. law.

Requests for Proposals (RFPs) and the subsequent contract issued for the USAID Private Sector Activity will stipulate that the requirements that apply to USAID-executed grants shall also apply to grants executed by the USAID contractor pursuant. USAID/Azerbaijan’s Regional Contracting Office will monitor GUCs issued under contracts to ensure compliance (see Grants under Contract in ADS

302.3.4.13 and ADS 302.3.5.6).

Request for Proposals (RFPs) and any subsequent contract issued will stipulate that USAID retains within the contract the ability to demand immediate termination the grant activities unilaterally based on extraordinary circumstances .(see Grants under Contract ADS 302.3.4.13 and ADS 302.3.5.6).

Donor and host country coordination. The contractor must coordinate and complement activities closely with government, private sector, USAID projects, and other donor-led initiatives designed to enhance the competitiveness of the private sector, with particular focus on the agriculture sector. The contractor must also leverage gains that have been established through past and current activities. The contractor must coordinate with other donor agencies and other USAID activities in Azerbaijan, particularly the following activities :

Socio Economic Development Activity (East West Management Institute)

Community Resilience to Vulnerabilities Activity (International Organization for Migration -

IOM)

Public Action for Resilience Activity (IOM)

Women’s Participation Program Activity (Counterpart International)

Economic Empowerment for Entrepreneurship and Employment (United Nations

Development Programme - UNDP)

Additional USAID activities that may be awarded over the course of the Private Sector

Activity

Other Donors

European Bank for Reconstruction and Development (EBRD)

European Union (EU)

Food and Agriculture Organization (FAO)

Deutsche Gesellschaft fur Internationale Zusammenarbeit (GIZ)

International Finance Corporation (IFC)

Swiss State Secretariat for Economic Affairs (SECO)

Swiss Development Cooperation (SDC)

Private sector driven and owned. The contractor must empower private sector actors to lead initiatives rather than drive processes itself. In developing and delivering interventions, the contractor must, whenever possible, work through intermediary institutions and organizations like producer associations, industry organizations, and public sector bodies. When possible, the contractor must rely on market facilitation rather than direct provision of services; in other words, the contractor must identify and build the capacity of private sector service providers rather than provide the services itself.

Public-private partnerships. The contractor must identify opportunities for the use of public-private partnerships (PPP), Global Development Alliances, and other GOG or donor resources to leverage grant and technical assistance provided through the activity and establish such partnerships whenever possible.

GoAJ Counterparts. The contractor must work closely with select government counterparts, seek out new government counterparts in order to accomplish the objectives, and take direction from USAID when other government counterparts are identified by the USG. GoAJ buy-in is needed to achieve the desired goals particularly with any initiative involving legal and regulatory reform. This will also ensure that the outcomes are sustainable. The main GoAJ counterpart is the Ministry of Agriculture.