72011418C00001 USAID Agriculture Program Justifiction and Approval for Other Than Full and Open Competition.pdf

Tab 1

U.S. Agency for International Development

Europe & Eurasia Bureau

DETERMINATION AND FINDINGS (D&F)

Contracting Agency: U.S. Agency for International Development

Contracting Activity: USAID/Georgia

Contract Title: USAID Agriculture Program

Contract Number/Contractor: 72011418C00001, Cultivating New Frontiers in Agriculture

(CNFA)

1. Nature and description of the action being approved:

This is a request that you make a determination and findings (D&F) under AIDAR 706.302-

70(b)(3)(i) that compliance with full and open competition procedures for the proposed contract action, as described in J&A (Tab 2), would impair foreign assistance objectives and would be inconsistent with the fulfillment of the foreign assistance program.

This D&F would allow modification of the above referenced contract to increase the total estimated costs (TEC) of the USAID Agriculture Program by $1,200,000, from $23,160,394 to

$24,360,394.

2. Citation of the statute upon which this D&F is based:

Pursuant to AIDAR 706.302-70(b)(3)(i), the Assistant Administrator responsible for the project or program is authorized to make a formal written D&F that compliance with full and open competition procedures would impair foreign assistance objectives and would be inconsistent with the fulfillment of the foreign assistance program.

3. Findings that detail the particular circumstances, facts, or reasoning essential to support the determination:

The TEC increase would expand activities in the following areas: innovation grants, technical assistance, and partnerships. Full and open competition for these activities, whether individually or as part of a new, larger program, would impair foreign assistance objectives as it would either unacceptably delay key activities, such as technical assistance, which due to agriculture’s seasonal nature, is time sensitive, or result in their complete removal, as in the case of partnerships and applications received via the current contract’s GUC Innovation Grants solicitation. Neither partnership nor application quality in the future can be guaranteed, especially if such activities are not able to be expanded in a timely manner. Such delays and removals would impair the current foreign assistance program and could also negatively impact objectives in the long run. This is especially true in the nascent private sector engagement realm, where the private sector needs assurances that the US government is a reliable, timely, and effective partner. Therefore, moving forward with addressing the identified needs for grants, Tab 2

JUSTIFICATION AND APPROVAL FOR OTHER THAN FULL AND OPEN

COMPETITION (J&A)

TO: Margot Ellis, Acting Assistant Administrator, Europe & Eurasia Bureau

FROM: Peter A. Wiebler, Mission Director, USAID/Georgia

DATE: January 21, 2022

SUBJECT: Justification and Approval for Other than Full and Open Competition (J&A) for the USAID Agriculture Program, Contract No. 72011418C00001 with CNFA

1. Agency and the contracting activity:

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(b)(3)(i), impairment of foreign assistance objectives. This document was prepared by USAID/Georgia’s Office of Economic Growth.

Contracting Agency: U.S. Agency for International Development

Contracting Activity: USAID/Georgia

Contract Title: USAID Agriculture Program

Contract Number: 72011418C00001

Contractor: Cultivating New Frontiers in Agriculture (CNFA)

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

This is a request to approve, on a non-competitive basis, a contract modification to increase the total estimated cost (TEC) of contract number 72011418C00001 with CNFA by $1,200,000, thereby increasing the Program TEC from $23,160,394 to $24,360,394.

Under this action, CNFA will build upon the last three years of implementation of the USAID

Agriculture Program that has supported the acceleration of the Georgian agricultural sector through investments in market-driven enterprises in high potential agricultural subsectors (or value chains). With under two years remaining in the Program, this action will support an expansion of current activities focused on agricultural innovation and export readiness and diversification. This would enable the Program to fund additional innovation grants for agricultural enterprises with cutting edge ideas for transforming one or more value chains.

Additionally, it will allow for increased technical assistance, enabling at least fifty additional agribusinesses to receive export support services that are needed to reach new (and non-Russian) export markets, such as assistance in branding and marketing and certifications in internationally recognized food safety and quality management systems. Likewise, this action will allow CNFA to expand ongoing partnerships that also seek to diversify exports away from Russia toward EU and other high-end markets.

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

The proposed $1,200,000 TEC increase will allow the USAID Agriculture Program to expand three areas of activities within the scope of the Program: innovation grants, technical assistance, and partnerships. This expansion will enable CNFA to increase its impact in critical areas to U.S.

foreign assistance objectives such as advancing Euro-Atlantic integration and reducing malign influence. The proposed TEC increase is envisioned to fund the following:

● Award additional innovation grants: The USAID Agriculture program held a Grants

Under Contract (GUC) solicitation for innovation grants, designed to finance cross-sector innovations that advance priority value chains. The GUC solicitation received more high-quality applications than they anticipated or could fund; only 4 of the top applications could be funded with existing contract resources. There are multiple additional applications that merit award, but the contract does not have the funding to support them.

If funded, these additional innovation grants are expected to generate at least $700,000 in new sales in the first year of operations and leverage approximately $500,000 in private sector investment.

● Provide technical assistance to at least 50 export-ready agribusinesses. This technical assistance will focus on preparing agricultural enterprises to meet the requirements of high-end export markets, such as branding and marketing support and certifications in internationally recognized food safety and quality management systems (i.e. BRC, IFC, ISO22000, GlobalGAP). Additionally, technical assistance will support participation in three international trade fairs and the organization of visits by potential buyers to Georgia in order to deepen linkages between Georgian agribusinesses and potential buyers in new markets. The expansion of technical assistance in these areas is expected to result in

$1,500,000 in new sales within the first year.

● Expand ongoing partnerships with the public and private sector to ease access to new export markets, improve access to finance, and strengthen high potential value chains.

For example, CNFA will expand its ongoing partnership with public sector entities like

Enterprise Georgia in order to co-finance business lead generation campaigns in two target export markets (EU and the Gulf)). Additionally, CNFA will deepen existing partnerships with the private sector. For example, the partnership with TBC Bank will be expanded to provide tailored financial assistance to new borrowers and additional funding for the partnership with the Adjara Group will support a specialized training program on almond production practices, a nascent but high potential crop for Georgia.

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

AIDAR 706.302-70(a)(2) states that “[f]ull and open competition need not be obtained when it would impair or otherwise have an adverse effect on programs conducted for the purposes of foreign aid, relief and rehabilitation.” Pursuant to AIDAR 706.302-70(b), this authority may be used for, “(3)(i) [a]n award for which the Assistant Administrator responsible for the project or program makes a formal written determination, with supporting findings, that compliance with full and open competitive procedures would impair foreign assistance objectives and would be inconsistent with the fulfillment of the foreign assistance program.”

As provided in AIDAR 706.302-70(c)(3), the authority in 706.302-70(b)(3)(i) shall only be used when no other authority in FAR 6.302 or AIDAR 706.302 is suitable. USAID/Georgia considered the other FAR and AIDAR authorities for other than full and open competition in discussion with the Mission’s contracts office prior to submitting this J&A and no other authorities were deemed suitable for this action.

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

The USAID Agriculture Program is a USAID/Georgia flagship program focused on accelerating the growth of agricultural subsectors that demonstrate strong potential to create jobs and increase incomes and revenues of micro, small, and medium enterprises (MSMEs). With agriculture employing over half of Georgia’s population, the USAID Agriculture Program plays an important role in achieving U.S. foreign assistance objectives. The goal of USAID/Georgia’s

2020-2025 Country Development Cooperation Strategy (CDCS) is to strategically partner with

Georgia in order to advance Euro-Atlantic integration and strengthen resilience to malign influence. The USAID Agriculture Program specifically supports Development Objective 3, which seeks to create high-value employment opportunities through increased economic growth.

The Republic of Georgia is a critical alley of the United States in the region. Export diversification focused on reducing dependency on Russian markets in favor of EU and other non-malign markets is a key piece of the Program’s strategy to achieve this development objective and also to contribute to broader U.S. foreign assistance objectives around countering malign influence and advancing Euro-Atlantic integration.

CNFA is a competent and valued USAID partner with over a decade of experience implementing agricultural programs in Georgia. CNFA has a highly qualified team with the requisite technical knowledge in niche agricultural fields. As a result, CNFA has consistently demonstrated its ability to provide quality technical assistance to the GOG and other beneficiaries; this is evidenced by the numerous requests for assistance the Program receives from government entities, such as providing continual support to the Parliamentary Agrarian and European

Integration Committees. Through its long tenure in Georgia, CNFA has cultivated relationships with GOG entities that have been leveraged into current partnerships designed to advance the agricultural sector through new market linkages, innovation, and modern production practices. It is these partnerships that will be expanded through the proposed ceiling increase. Thus, a change in contractor would make replicating these partnerships within the remaining time frame of the

Program near impossible.

Conducting a full and open competition would delay these key actions beyond the existing window of opportunity. Agriculture, being seasonal, is very time sensitive, and delays of even a few months would render the actions moot. Further, it is not guaranteed that the quality of applications received under the GUC Innovation grant solicitation, would be replicated under a later, separate program. Not implementing the proposed additional activities focused on agricultural innovation and export facilitation would hamper the Program’s goals of diversifying export markets away from malign countries like Russia and would likewise reduce the number of agricultural enterprises that are able to reach new and more lucrative markets, like the EU. As a result, U.S. foreign assistance objectives aimed at reducing malign influence and advancing

Euro-Atlantic integration would be impaired.

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 Federal Acquisition Regulation (FAR) 5.2 [AIDAR 705.2].

The request for a TEC increase is predicated on the need to expand ongoing activities in the areas of innovation grants, technical assistance, and partnerships. Accordingly, offers from other potential sources are not warranted. In accordance with AIDAR 705.202(b) advance notice is not appropriate or reasonable for contract actions described in AIDAR 706.302-70(b)(1) through

(b)(3). In accordance with FAR 6.305(a), this justification will be made publicly available within 14 days after the modification to the contract is signed.

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

From experience and the competitive process for award of the initial contract, other competitive processes of the same nature, and market knowledge, USAID/Georgia’s Regional Contracting

Office possesses the tools and knowledge to ensure that the negotiated costs are fair and reasonable. Additionally, a cost estimate based on historical expense rates has been developed and will be used as a basis for negotiation.

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

The original award to CNFA was made using full and open competition. This J&A seeks a non-competitive modification based on impairment of foreign assistance objectives. Our experience in the agriculture sector, through this contract and other activities, supports the identified request for additional technical assistance, partnership building, and innovation grants through the existing contract. These activities are within the scope of the existing contract; however, to assess if there are other comparable alternatives, Mission reviewed existing IDIQs and similar instruments in the Mission and none met technical requirements and needs, given that the new

GUCs are a result of the competition within this contract. Additionally, using these mechanisms would require the Mission to incur substantial additional expense given the need.

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

CNFA is highly qualified and uniquely positioned to implement the proposed expansion of the

USAID Agriculture Program. It continues to meet Program targets and consistently receives positive ratings on key metrics in its Contractor Performance Assessment Reports (CPARs).

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

No other sources have expressed an interest in this TEC increase. No solicitation or notice of intent to modify this contract were posted as stated 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 through full and open competition.

Category Management will be taken into consideration in the design of future procurements.

12. Technical or requirement personnel certification:

In accordance with FAR 6.303-1(c), I hereby certify that the technical statements included above and which form a basis for the justification are complete and accurate.

David Tsiklauri, USAID/Georgia Date

Contracting Officer Representative (COR)

13. Contracting Officer Certifications:

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

Sam Kraegel, USAID/Georgia Date

Contracting Officer (CO)

Samuel Kraegel

Digitally signed by Samuel Kraegel Date: 2022.02.14 17:14:04 +04'00'

David Tsiklauri Digitally signed by David Tsiklauri Date: 2022.02.14 17:36:10 +04'00'

14. Approved/ Disapproved

Approved ________ Disapproved __________

Margot Ellis

Acting Assistant Administrator

Europe & Eurasia Bureau