J.2_FGI_Statement_of_Objectives.pdf

72011519R00001 Attachment J.2

STATEMEMT OF OBJECTIVES

C.1 PURPOSE

The Future Growth Initiative (FGI) Statement of Objectives is intended to support high-growth industries that will provide jobs and incomes for Central Asia’s growing workforce. FGI will serve as the initial task order under USAID/Central Asia’s Enterprises, Employment, and Enabling Environments (E4) mechanism.

Recent terror attacks in the U.S., Sweden, Russia, and Turkey, carried out by Central Asians, highlight the growing concern of migrant laborers from the region traveling abroad for economic opportunities where they are potential targets for recruitment by extremist organizations. The lack of economic opportunities at home has become a critical threat to stability and security that extends far beyond Central Asia.

However, jobs alone are not sufficient for supporting stability in the region. Incomes must also increase significantly if domestic jobs are to truly serve as a disincentive to migration abroad. By supporting emerging industries, USAID hopes to foster strong firms that can serve as drivers of economic growth. These firms will in turn create more jobs that will provide adequate incomes and serve as a hedge against outward migration. The growth of emerging industries will also help to support income growth more broadly, through a lifting effect on the entire economy. By supporting broad-based growth and employment in Central Asia, USAID will also contribute to efforts to stabilize Afghanistan and support broader regional connectivity.

C.2 PERIOD AND PLACE OF PERFORMANCE

The expected period of performance for the FGI activity is five years. FGI will be implemented throughout Central Asia. Regional efforts will focus on the five countries of Central Asia:

Kazakhstan, Kyrgyz Republic, Tajikistan, Turkmenistan, and Uzbekistan. The activity should have a Central Asian-base office in Almaty, with at least two additional field offices, one of which should be in Tashkent. The specific management and staffing structure will depend upon proposed activities. However, an Almaty office will be needed to ensure effective coordination with the USAID Mission. The table below shows the estimated level of effort for FGI based on USAID’s current division of planned priorities between regional and bilateral funding.

However, these figures are estimates and are subject to change. FGI will need to have flexibility to adjust to changing priorities and fluctuations in funding among regional and bilateral efforts.

Estimated Level of Effort by Location

Regional 50%

Kyrgyz Republic 10%

Tajikistan 10%

Turkmenistan 10%

Uzbekistan 20%

The activity should be engaged throughout Central Asia and should seek to build connections among emerging industries and firms from throughout the region and beyond. While the activity will not work in Afghanistan, the activity will be encouraged to support connectivity with Afghanistan and to connect with other USAID programs so that Afghan beneficiaries can be included when appropriate. Within each country, offerors should consider working in regions with the potential to create significant jobs and increased incomes among targeted populations / sectors.

C.3 BACKGROUND AND RELATED ACTIVITIES

The Contractor must coordinate its efforts closely with existing USAID projects, other donor efforts, and partner governments. The background of the activity and the list of USAID funded programs mentioned in the IDIQ Award are not intended to be comprehensive, but merely to detail some of the existing programs already taking place in the region. The contractor should review the background and related activities information from the IDIQ Award. FGI should avoid any duplication of effort with these and other development programs, but should seek to find synergies with these efforts when appropriate.

C.4 RELATIONSHIP TO REGIONAL DEVELOPMENT COOPERATION STRATEGY

(RDCS)

E4, including the FGI activity will directly support the Mission’s RDCS Development Objective (DO) 1: Expanded, diverse and competitive trade and markets. This activity will emphasize IR 1.1: a more diverse and competitive private sector.

C.5 ACTIVITY DESCRIPTION

A. Goal The goal of FGI is to promote high-growth industries that will support jobs and incomes for Central Asia’s expanding workforce.

FGI will initially be positioned as a regional activity and resourced through USAID’s regional funding. Therefore, the Contractor must take a regional approach when developing its strategy and proposing targeted sectors. This regional approach does not mean that the exact same interventions will be undertaken in each country or that the same sectors will be appropriate for each country. Rather, a regional approach should seek to build connectivity between countries and/or target sectors with high growth potential in two or more countries.

B. Potential Sectors This statement of objectives was developed with the understanding that potential implementing partners would submit proposals outlining the sectors that could achieve FGI’s stated objectives.

Sectors that USAID has identified as candidates for consideration include: information and communications technology, light industry, textile production, food processing and packaging, and professional services.

FGI will enable USAID to engage in sectors where it has not traditionally been involved in Central Asia or where there are currently opportunities for expansion. Jobs in areas such as information technology offer opportunities for comfortable wages and an alternative to migration abroad.

USAID has supported the agricultural sector of Central Asia for many years through both regional and bilateral programming. Considerable progress has been made in some areas, and the agricultural sector will remain a large employer of Central Asians for years to come. However, wages in the agricultural sector lag behind other promising industries, and both future increases in jobs and income will likely come from off-farm employment. As such, the Contractor must work off-farm, but may consider working with firms involved in post-harvest processing and production of agricultural products.

The Contractor will have the flexibility to recommend to USAID for approval a set of demand-driven interventions in its PWS aimed at generating rapid, broad-based, and sustainable economic growth with improved measures of business sales, employment, and incomes.

C. Performance Objectives and Results The three objectives described below are reflective of the three components described in the broader E4 SOW. FGI is intended to work in each of these areas.

Objective 1: Increase the competitiveness of non-farm enterprises in Central Asia in order to create jobs and growth.

Result 1.1: Increased business skills and knowledge of management best practices necessary for firms to grow and increase revenues. (5,000 individuals with improved business skills and knowledge)

Result 1.2: Increase business connectivity and partnership among Central Asian firms and increased linkages to new markets in Europe, South Asia and beyond. (40 Business Connectivity Events conducted.)

Result 1.3: Leverage partnerships, innovation and technology from the private sector, including U.S. firms, to create new opportunities for Central Asian firms. (Ten private sector partnerships created, with at least two with U.S. firms)

Objective 2: Support the development of skilled workers and entrepreneurs to support emerging industries.

Result 2.1: Assist emerging firms with new hiring, training, and staff development. (300 firms with improved management practices or technologies.)

Result 2.2: Support entrepreneurs through technical, business and financial capacity building and capital support. (50,000 person hours of training and technical assistance provided to individual entrepreneurs.)

Objective 3: Address legal, regulatory and other constraints in the enabling environment that are inhibiting the expansion of high-growth industries (Depending upon opportunities for collaboration).

Result 3.1: Support partner governments in addressing the legal, regulatory and procedural barriers to private sector-led growth in emerging sectors. (10 laws and regulations prepared/drafted and/or simplified in accordance with international standards)

Result 3.2: Support effective dialogue between the public and private sector to address the constraints to growth in targeted sectors. (15 policy forums held to discuss the legal and regulatory constraints to growth in chosen sectors)

D. Baseline Survey The Contractor must conduct a baseline survey during the first six months of the activity that will enable the measurement of progress toward these intended results. This baseline survey must include information from readily available data and/or from independent research as needed.

E. Illustrative Performance Indicators USAID will evaluate the Contractor’s performance in accomplishing the activities specified in their Performance Work Statement, annual work plans and activity monitoring and evaluation plan (AMEP), and achievement of the contract targets for each performance measure set in connection with the indicators provided in this section. The Contractor must use objectively verifiable indicators with periodic data collection to measure performance and adjust approaches as necessary. Below is an illustrative list of performance indicators for the FGI activity. Some of these high-level results may be beyond the manageable interest or complete control of this activity. However, this data will be useful in tracking the overall progress toward the goal of increased jobs and incomes.

Illustrative U.S. Government Standard Indicators:

● EG5.2-1 Number of firms receiving USG-funded technical assistance for improving business performance

● EG.5-2 Full-time equivalent employment of firms assisted under USG programs

● EG.5.2-2 Number of private sector firms that have improved management practices or technologies as a result of USG assistance

● EG.6-2 Number of individuals with improved skills following completion of USG-assisted workforce development programs (males, females, by age)

Illustrative Custom Indicators:

● Increased sales by targeted firms

● Increased employment by targeted firms

● Increased employment by targeted sectors

● Number of public-private partnerships formed as a result of USG assistance

● Number of entrepreneurs receiving funding from USG programs

● Number of new firms created under USG programs

C.6 GUIDING PRINCIPLES

In addition to the Cross-Cutting Considerations mentioned in the overall E4 description, FGI must incorporate the following Guiding Principles into the activity.

A. Connectivity and Partnerships

Regional Connectivity FGI will seek to increase economic connectivity among Central Asian nations and connect Central Asian firms with South Asia, including Afghanistan. FGI should build connections with USAID and other donor projects from throughout the region to help facilitate these connections among firms and share information about emerging opportunities.

U.S. Technology and Innovation Where appropriate, FGI should seek utilize U.S. technology, innovation, expertise, and best practices in enhancing the competitiveness of Central Asian enterprises. FGI can also help to facilitate mutually beneficial opportunities for U.S. and Central Asian firms.

Leveraging Resources for Impact FGI will seek opportunities to leverage the resources of other partners to maximize development impact. Partner organizations may include other USAID programs, bilateral and multilateral donors, other USG agencies, private sector companies, universities, and bank and non-bank financial institutions, among others. Innovative ideas for partnering with the private sector in achieving FGI’s objectives will be considered. Offerors are encouraged to consider utilizing locally-based solutions when feasible for meeting development objectives. Possible solutions could include subawards, grants under contract, and partnerships (including contracts) with local firms.

B. Inclusive Growth

Program success is not determined solely by improvement in aggregate outputs and outcomes.

Rather, economic gains must be inclusive of broad populations of society and not biased against any gender, geographic region, or socio-economic group. Preference will be given toward interventions that demonstrate the ability to benefit many segments of society and in particular those segments currently disadvantaged or otherwise excluded from the opportunities presented by private sector economic growth, job creation, and entrepreneurship. The benefits for youth and other groups susceptible to outward migration should receive adequate consideration.

C. Rapid Startup

FGI is expected to be fully operational within the first three months of award. The Contractor overcome any company and project registration issues so that performance will not be delayed or restricted. In addition, the Contractor must avoid lengthy assessment phases. While some assessment activity may be acceptable in order to guide and refine project implementation, performance cannot be delayed due to assessments that will not take place until after the project is operational.