TRADE_RFP__Amendment_1___final.pdf

Offers must acknowledge receipt of this amendment prior to the hour and date specified in the solicitation or as amended, by one of the following methods:

(a) By completing items 8 and 15, and returning or (c) By separate letter or electronic communication which includes a reference to the solicitation and amendment numbers. FAILURE OF YOUR ACKNOWLEDGMENT TO BE RECEIVED AT THE PLACE DESIGNATED FOR THE RECEIPT OF OFFERS PRIOR TO THE HOUR AND DATE SPECIFIED MAY RESULT IN REJECTION OF YOUR OFFER. If by virtue of this amendment you desire to change an offer already submitted, such change may be made by letter or electronic communication, provided each letter or electronic communication makes reference to the solicitation and this amendment, and is received prior to the opening hour and date specified.

E. IMPORTANT: Contractor is not is required to sign this document and return copies to the issuing office.

AMENDMENT OF SOLICITATION/MODIFICATION OF CONTRACT 1. CONTRACT ID CODE

2. AMENDMENT/MODIFICATION NUMBER 3. EFFECTIVE DATE 4. REQUISITION/PURCHASE REQUISITION NUMBER 5. PROJECT NUMBER (If applicable)

7. ADMINISTERED BY (If other than Item 6) CODE

STANDARD FORM 30 (REV. 11/2016)

Prescribed by GSA FAR (48 CFR) 53.243

FACILITY CODE

9A. AMENDMENT OF SOLICITATION NUMBER

9B. DATED (SEE ITEM 11)

10A. MODIFICATION OF CONTRACT/ORDER NUMBER

10B. DATED (SEE ITEM 13)

11. THIS ITEM ONLY APPLIES TO AMENDMENTS OF SOLICITATIONS

The above numbered solicitation is amended as set forth in Item 14. The hour and date specified for receipt of Offers is extended. is not extended.

12. ACCOUNTING AND APPROPRIATION DATA (If required) copies of the amendment; (b) By acknowledging receipt of this amendment on each copy of the offer submitted;

13. THIS ITEM APPLIES ONLY TO MODIFICATIONS OF CONTRACTS/ORDERS.

IT MODIFIES THE CONTRACT/ORDER NUMBER AS DESCRIBED IN ITEM 14.

CHECK ONE A. THIS CHANGE ORDER IS ISSUED PURSUANT TO: (Specify authority) THE CHANGES SET FORTH IN ITEM 14 ARE MADE IN THE CONTRACT ORDER

NUMBER IN ITEM 10A.

B. THE ABOVE NUMBERED CONTRACT/ORDER IS MODIFIED TO REFLECT THE ADMINISTRATIVE CHANGES (such as changes in paying office, appropriation data, etc.) SET FORTH IN ITEM 14, PURSUANT TO THE AUTHORITY OF FAR 43.103(b).

C. THIS SUPPLEMENTAL AGREEMENT IS ENTERED INTO PURSUANT TO AUTHORITY OF:

D. OTHER (Specify type of modification and authority)

Except as provided herein, all terms and conditions of the document referenced in Item 9A or 10A, as heretofore changed, remains unchanged and in full force and effect.

15C. DATE SIGNED

15A. NAME AND TITLE OF SIGNER (Type or print)

16C. DATE SIGNED

16A. NAME AND TITLE OF CONTRACTING OFFICER (Type or print)

14. DESCRIPTION OF AMENDMENT/MODIFICATION (Organized by UCF section headings, including solicitation/contract subject matter where feasible.)

PAGE OF PAGES

6. ISSUED BY CODE

8. NAME AND ADDRESS OF CONTRACTOR (Number, street, county, State and ZIP Code) (X)

CODE

15B. CONTRACTOR/OFFEROR

(Signature of person authorized to sign)

16B. UNITED STATES OF AMERICA

(Signature of Contracting Officer)

Previous edition unusable

SECTION B - SUPPLIES OR SERVICES/PRICES

B.1 PURPOSE

The purpose of this contract is to provide the services and deliverables as described in detail in Section C, Statement of Work, for the TRADE Activity. The TRADE Activity focuses on increasing Egypt’s international exports, and improving the operating environment, related to Egyptian Small- and Medium-Sized Enterprises (SMEs).

B.2 CONTRACT TYPE

This is a Cost-Plus-Fixed-Fee (CPFF) Completion-type contract. For the consideration set forth below, the Contractor must achieve the performance objectives and deliverables as described in Sections C, and F and otherwise comply with all contract requirements.

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

(a) The estimated cost for the performance of the work required hereunder, exclusive of fee is: $ . The fixed fee is $ . The estimated cost plus fixed fee is $

{Blanks to be completed at time of award}.

(b) Within the estimated cost plus fixed fee (if any) specified in paragraph (a) above, the amount currently obligated and available for reimbursement of allowable costs incurred by the Contractor (and payment of fee, if any) for performance hereunder is

$ . The Contractor must not exceed the aforesaid obligated amount in accordance with Federal Acquisition Regulation (“FAR”) 52.232.22, “Limitation of

Funds.”

(c) Funds obligated hereunder are anticipated to be sufficient through {TBD based on the date of award}.

[NOTE: The actual amount to be obligated will be determined at the time of award.]

B.4 BUDGET

The total cost stated for the budget categories specified below may not be adjusted without a modification to the contract signed by the Contracting Officer. No amounts in excess of the amounts specified for each category will be billed to the Contract.

CLIN Item Total ($)

001 Contract Total Cost (excluding fee) ___

002 Fixed Fee ___

Total Estimated Cost Plus Fixed Fee ___

RFP #72026319R00003

FT-800 Local Currency Total (EGP)

Social Insurance for Egyptian staff ___

Note on Social Insurance – Social insurance consists of the employer share of social insurance for Egyptian nationals employed for the project. Per USAID/Egypt’s agreement with the Government of Egypt, this line in the budget is required to be billed separately in

Egyptian Pounds and charged to a special funding line, FT-800.

B.5 PAYMENT OF FIXED FEE

$TBD is the maximum fixed fee to be paid in accordance with this Section B.4. Subject to

FAR 52.216-8 “Fixed Fee” and the following, the Contractor will be paid the proportion of the fixed fee that corresponds to the proportion of allowable direct costs incurred by the

Contractor during the period covered by the invoice. If the Contracting Officer determines that this method results in paying a disproportionately higher ratio of fixed fee than the percentage of work that the Contractor has completed, then the Contracting Officer may suspend further payment of any fixed fee until the Contractor has made sufficient progress to justify further payment. Subject to the Contracting Officer’s discretion, if the Contractor subsequently completes the delayed work such that costs incurred are proportionate to work completed, the Contracting Officer may approve payment of the amount of the fee that was suspended.

B.6 INDIRECT COSTS

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* Period** Rate Base***

* Description or type of rate indicated as a percentage, e.g., G&A

** Period, e.g., CY 2009

*** Base, e.g., Direct Labor for Labor Overhead

[RATES WILL BE INSERTED AT THE TIME OF AWARD]

B.7 ADVANCE UNDERSTANDINGS ON CEILING INDIRECT COST RATES AND

FINAL REIMBURSEMENT FOR INDIRECT COSTS

(1) Reimbursement for indirect costs will be at the lower of the negotiated final (or predetermined rates) or the following ceiling rates:

Description Period Ceiling Rate Base

(2) 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 costs are less than the negotiated ceiling rates, the negotiated rates will be reduced to conform to the lower rates.

(3) This understanding will not change any monetary ceiling, obligation, or specific cost allowance or disallowance. Any changes in classifying or allocating indirect costs required the prior written approval of the Contracting Officer.

(4) It is USAID policy that contractors or grantees that agree to an indirect cost rate ceiling that is less than the government-wide NICRA rate in a contract shall not recoup the amounts occasioned by the reduction in the rates on other agreements with the U.S.

Government. Therefore, the organization must agree in writing not to recoup the reduction in the rates on other contracts or grants with the U.S. Government - the reduction must be taken from profit, fee or other non-governmental sources of revenues. In any instance where an indirect cost rate other than that specified in the

NICRA is to be used in a contract or grant the contractor/grantee is required to acknowledge the above stipulations by providing a written acknowledgement to

USAID.

B.8 COST REIMBURSMENT

Allowable costs will be limited to reasonable, allocable and necessary costs determined in accordance with FAR 52.216-7, Allowable Cost and Payment (JUN 2013), FAR 52.216-8

(JUN 2011), Fixed Fee, if applicable, and AIDAR 752.7003 (NOV 1998), Documentation for Payment.

[END OF SECTION B]

SECTION C – STATEMENT OF WORK

Title: Trade Reform and Development in Egypt (TRADE)

C.1 INTRODUCTION

USAID supports the Government of Egypt’s (GOE) effort to accelerate inclusive economic growth in Egypt by investing in activities that improve the business enabling environment and strengthen private sector capacity, and by targeting assistance where there is the potential for strong growth, such as agriculture, trade, and micro, small, and medium enterprises (MSMEs). Recognizing the importance of economic reforms to long-term growth, USAID will continue to assist the GOE to implement its homegrown economic reform program.

One example of USAID assistance is this activity entitled “Trade Reform and Development in Egypt” (hereinafter, the “TRADE” Activity).

The TRADE Activity is a five-year contract that enables Egypt’s private sector to increase international trade, attract investment, and stimulate growth.

C.2 GOAL AND SELECTED SECTORS

The Goal of the TRADE Activity is to increase Egypt’s international trade by increasing exports from small and medium-sized enterprises (SMEs), in the activity’s “selected sectors”. The TRADE Activity will focus on the following sectors (referred to as “selected sectors”), five of which have been identified:

Engineering Products, Food Processing, Home textiles, Ready Made Garments, and

Chemicals and Building Materials

Others (TBD upon award)

By the end of the TRADE Activity, USAID/Egypt anticipates exports (in USD value) of the selected sectors, collectively, will achieve an annual growth rate greater than 10%.

C.3 TRADE ACTIVITY RESULTS

The TRADE Activity will achieve the following three Results that are necessary for the contractor to reach the Activity’s goal:

1) Enhanced Export Capacity of SMEs, in particular New and Expanding Export-

Ready Enterprises (NEEREs)* in the Selected Sectors;

2) Strengthened Public and Private Trade-Support Institutions (e.g., Trade

Associations, Export Councils, etc.); and

3) Improved Trade and Investment Policy, Regulatory and Institutional Environment

* New and Expanding Export-Ready Enterprises (NEEREs) is a specific term for this Scope of Work that refers to a sub-set of SMEs. This term is not commonly used outside of this document. A firm is considered “New” if it has either recently entered the export market or is in the process of entering the export market. A firm is considered “Expanding” if it is in the process of increasing or diversifying its exports.

In order to attain these three Results, the contractor must provide a wide range of technical assistance, capacity building, procurement support, and training to GOE counterparts, quasi-government, and private sector stakeholders (firms, associations, councils…etc.) to increase the ability of Egyptian firms to increase export revenues in the selected sectors, and hence achieve the contract Goal.

C.4 STATEMENT OF WORK

The goal of the TRADE Activity is to increase Egypt’s international trade by increasing exports from SMEs, and in particular New and Expanding Export-Ready Enterprises

(NEEREs). This will be achieved by addressing the constraints that impede the competitiveness of Small and Medium-sized Enterprises (SMEs). The Central Bank of

Egypt (CBE) has introduced a definition for SMEs that is used for financing purposes

(refer to Section J.10). The Contractor should use this definition for work to be undertaken under this contract.

In order to achieve the Activity’s goal (increasing exports in selected sectors), the

Contractor must attain the following three Results:

1) Enhanced Export Capacity of SMEs, in particular New and Expanding Export-

Ready Enterprises (NEEREs) in Selected Sectors

2) Strengthened Public and Private Trade-Support Institutions (e.g., Trade

Associations, Export Councils, etc.); and

3) Improved Trade and Investment Policy, Regulatory and Institutional Environment

The Contractor must build the capacity of SMEs (in particular NEEREs) to adopt trade-oriented business models to compete successfully in the international market, develop the capacity of trade-support institutions to provide effective and efficient trade development services to SMEs, and upgrade the capacity of the GOE to implement improved trade-promoting policies, regulations, and institutions.

To achieve the greatest possible impact, the Contractor must take into consideration the linkages among these three Results throughout implementation to ensure a high level of coordination.

To maximize the ability of the Activity to strengthen the export ecosystem, the three

Results work in a synergistic manner to produce outcomes that one Result in isolation could not achieve. For example, the Contractor’s work with the private sector will enable the Contractor to inform trade service institutions of NEEREs they may not be aware of, as well as assist them with strengthening their services and ability to help firms export.

For all tasks under all three Results, the Contractor must report to USAID any implementation delays, and in cases of insurmountable roadblocks, recommend pivots and course corrections to USAID, so long as any such changes in implementation are (a) determined to be within the scope of work of the Contract, (b) do not require the commitment of additional funds, and (c) comply with applicable U.S. law and policy.

C.4.1 Result 1:

Enhanced Export Capacity of SMEs, in particular New and Expanding Export-Ready

Enterprises (NEEREs) in Selected Sectors;

Target:

By the end of the TRADE Activity, USAID/Egypt expects that export revenue for NEEREs, collectively, in selected sectors, shall increase by a minimum of $200 million.

As part of its Result 1 efforts, the Contractor must focus its technical assistance activities on NEEREs working in the selected sectors.

The following are the minimum tasks required of the Contractor for Result 1:

● The Contractor must provide technical assistance to develop the export capacities of

NEEREs in the selected sectors.

● The Contractor must explore appropriate business models that will enable NEEREs to expand exports, and promote their integration into global value chains. This will provide additional opportunities for NEEREs to engage in global trade without the need to be competent in all aspects of the production of a final product and/or be involved in international markets.

● When increasing the export capacity of NEEREs, the Contractor must address to the maximum extent possible: production systems that meet international product standards; effective marketing strategies that meet international demand; access to timely and accurate export market information useful for export businesses’ strategic purposes; contemporary product designs; competitive pricing strategies; tools for technological advancements; a supply chain with adequate production scale;

participation in trade fairs for networking; timely product delivery; and effective monitoring and follow up systems.

● The Contractor must engage private sector stakeholders, consistent with USAID’s

Private Sector Engagement Policy (PSEP), in two key areas. First, the Contractor must identify opportunities to leverage private sector funding for activities in which private sector firms have an interest in achieving the objectives of the TRADE Activity.

Second, the Contractor must identify opportunities to mobilize private sector investment to improve the export competiveness of the selected sectors.

● The Contractor must exert all reasonable efforts to target underserved firms and communities, such as women-owned or managed enterprises and communities other than the main cities (Cairo and Alexandria).

● The Contractor must work with all stakeholders and counterparts that have a large role in improving export earnings, such as export councils, the Export Development Bank, the Export Credit Guarantee Company, commercial agents, etc.

● The Contractor must avoid duplicating activities in sectors where USAID is already providing assistance (reference Section C.5 for an overview of ongoing USAID programs and required coordination).

C.4.2 Result 2:

Strengthened Public and Private Trade-Support Institutions (e.g., Trade Associations, Export Councils, etc.); and

By the end of the Activity, USAID/Egypt expects that the assisted trade-support institutions will have increased the effectiveness and efficiency of services offered to their member companies. USAID expects export revenue of member companies benefiting from new and improved services, collectively, to have increased by 30%.

To increase Egyptian exports, the Contractor must help institutions that provide trade development services with adopting commercially viable business models to help all exporters/traders, with a particular focus on SMEs.

The Contractor must work with the export councils of the selected sectors.

The following are the minimum tasks required of the Contractor for Result 2:

● The Contractor is required to utilize international best practices when implementing its

Result 2 strategy. The Contractor must clarify the methodology for achieving the best result - improving the current trade service institutions, creating new one/s, or a combination of both. The methodology must be based on evidence from analysis or relevant facts in the Egyptian trade system, international best practices, and lessons learned from previous technical assistance projects.

● The Contractor must assess (i.e. map) the range of services provided by trade service institutions that are essential for SMEs to successfully export, in order to the gaps in the supply of these services. The Contractor is expected to use reasonable best efforts to develop a market environment conducive to encourage the private sector to fill those gaps in a commercially-sustainable manner. For trade services that are best provided by public or quasi-public institutions, the Contractor must integrate these institutions into its implementation strategy for Result 2.

● The Contractor must assist the newly established Export Development Agency (EDA), which plays a leading role in trade services and export promotion. The Contractor must implement a package of technical assistance/capacity building/training programs to improve the EDA’s performance in order to enable it to achieve its mission and to provide efficient and effective trade development services for exporters.

● The Contractor is required to support the EDA with procuring necessary equipment sufficient for enabling the EDA to operate in accordance with international best practices and to procure additional equipment and necessary tools/supplies that will enable private associations and/or NGOs to access and receive information and services provided by the EDA.

● The Contractor must work with the relevant trade institutions within the selected sectors, to develop, among other interventions, sound monitoring and evaluation tools, resource procurement and mobilization plans, and innovative resource mobilization approaches, as well as develop and implement sustainability plans. Under Result 2, a key indication of sustainability is the ability of EDA and other assisted trade service institutions to perform at internationally recognized standards, as well as to demonstrate an ability to conduct services at a higher capacity as a direct result of the training and support provided by the Contractor.

● The Contractor must also work with other key trade-support institutions (private, quasi-government, or NGOs) that are necessary to the success of SMEs in the export market.

In addition to the technical; services provided by these institutions to SMEs, the

Contractor must also improve the managerial and operational capacity of these institutions to ensure long-term sustainability.

C.4.3 Result 3:

Improved Trade and Investment Policy, Regulatory and Institutional Environment

By the end of the TRADE Activity, USAID expects that the cost to import (Documentary

Compliance, World Bank Doing Business Survey) will have been reduced due to the implementation of rules, regulations and methodologies as implemented by USAID assistance (The cost to import will be tracked using the World Bank’s methodology in its

Ease of Doing Business Survey).

Egypt’s challenging trade-enabling environment raises the cost of trade, making Egyptian enterprises less competitive in the world market. This environment penalizes Egyptian enterprises in terms of the high cost of importing raw material and intermediate goods, which comprise a high percentage of the inputs of Egyptian manufacturers (exporters).

For the past several years, the Government of Egypt and key counterparts have been involved with multi-dimensional institutional/policy reforms to improve the trade and investment environment. The interventions for Result 3 are categorized according to the following focus areas:

1. Trade Policy Framework

2. Trade Facilitation

3. Food Safety

4. U.S Trade Discussions

5. Foreign Direct Investment (FDI)

The Contractor must identify the major policy constraints under these five focus areas that hinder export development, especially exports from SMEs. Based on USAID’s experience in previous projects, home-grown reforms, strong political will, and influential reform champions are prerequisites for success in this area. Therefore, the Contractor must implement reforms that are locally owned, widely vetted, and strongly supported by

Egyptian stakeholders. Where applicable, the Contractor must align its interventions with the GOE-IMF reform program as well as the MTI’s Industry and Trade Development

Strategy 2016-2020:

http://www.mti.gov.eg/English/MediaCenter/News/PublishingImages/Pages/2017-

Strategy/2017%20Strategy.pdf

The Contractor must build the capacity of GOE staff and design technical assistance interventions to the concerned GOE agencies to enable them to perform to international standards.

In order to achieve sustainable results within regard to policy recommendations and implementation, the private sector should play a critical role. The Contractor must design and institutionalize a transparent and results-oriented private sector advocacy program in support of reforms to improve the trade and investment policy and regulatory environment.

The contractor must work to enable key stakeholders (e.g., business associations) to articulate policy positions, translate them into specific recommendations, assess their impact (e.g., rapid impact assessment), and advocate to the relevant government agencies, and legislative bodies for implementation or enactment. It is expected that any policy advocacy efforts that will come out of this system will enhance the achievements under

Result 1 and 2.

The following are the minimum tasks required of the Contractor for Result 3:

Focus Area 1: Trade Policy Framework

The law that governs external trade dates back to 1975. The Ministry of Trade and Industry issued many amendments to the executive regulations in order to facilitate trade and improve performance of the trade sector. In addition, the law that governs customs operations is dated 2005. These two laws, with their executive regulations, largely shape the Egyptian trade framework.

Most non-tariff barriers (NTBs) are to be handled under these two laws/regulations. The

GOE is aware of the significant impact of NTBs on trade performance. It is for this reason that Egypt cooperated with the International Trade Center (ITC) to conduct an assessment on existing NTBs. ITC’s report was issued in May 2016 and is entitled, “Egypt: Company

Perspectives, An ITC Series on Non- Tariff measures.” The Contractor is encouraged to use the findings of this survey to inform their design of technical assistance programs for this focus area.

In order to improve the trade policy framework, the contractor must work with GOE counterparts to design and implement the government’s recommended policy agenda.

Anticipated areas of technical assistance under this focus area may include, but are not limited to: streamlining import and export regulations, conformity assessments procedures, intellectual property rights, developing standards, risk management, amending the customs law, reduction of tariff and non-tariff barriers, and implementation of trade agreements.

To address enabling environment constraints, the Contractor must build on existing analytical studies, such as assessments on trade and investment policies conducted by the

GOE, donor agencies, universities, research centers, and other think tanks in Egypt as well as those outside of the country.

Focus Area 2: Trade Facilitation

The GOE participated as a contracting member in the Trade Facilitation Agreement (TFA), and on February 22, 2017, the TFA went into force. At that time, implementation timelines associated with member country commitments began, including: freedom of transit;

common border procedures and uniform documentation; and movement of goods intended for import under customs control.

The aim of the TFA is to improve the procedures and regulations, as well as the overall policy framework, that govern the movement of goods across national borders, so as to reduce costs for exporters and expedite clearances among signatories of the protocol.

Provisions of the TFA include publishing the information available about all laws and regulations governing imports to and exports from Egypt, as well as support for the coordination and exchange of information among the different custom offices among the member countries.

The Contractor must work with relevant TFA stakeholders by enabling them to meet

Egypt’s international obligations under the TFA, reducing the time and cost to trade with

Egypt. TFA stakeholders include:

● The GOE’s Ministry of Trade and Industry formed the Ministerial Council on Trade

Facilitation (EgyTrade), which aims to facilitate all export, import and shipping measures, enhance Egypt's position in international trade and investment, and promote a digital communication policy instead of the paper-based system. This council includes members from the private sector.

● The Ministry of Finance created a national committee on trade facilitation which is responsible for coordinating implementation of the Trade Facilitation Protocol. This committee has members from different GOE entities.

The Contractor must design and implement a comprehensive approach that is based on the technical assistance needed by the TFA stakeholders, and should consider procuring necessary equipment and supplies that would assist the GOE with fulfilling its obligations under the TFA. Illustrative tasks may include:

● Conduct an assessment of the current situation concerning Egypt’s adherence to its

TFA commitments

● Conduct a gap analysis for stakeholders’ needs

● Design a technical assistance program for all concerned stakeholders, including training, study tours, training of trainers, etc.

● Work with the Ministerial Steering Council to implement reform measures

Focus Area 3: Food Safety

The Contractor must assist the recently-established Food Safety Authority (FSA) with becoming an effective and fully functional authority. According to the issued Law No. 1 for 2017, this agency is responsible for setting food safety criteria in accordance with science-based, international standards including:

● Inspection, control, licensing, and handling of food;

● Control of imported and local food to prevent any fraudulent activity;

● Setting conditions and rules regarding the granting of certificates of validity necessary for foreign investment in the export of locally-produced food and overseeing the certification process;

● Setting the necessary measures and procedures for emergencies that threaten imported or locally produced food, through rapid alert and recall systems;

● Setting the necessary procedures for risk assessment, analysis, management and, communication;

● Developing mandatory systems that ensure food safety;

● Developing a system for food traceability;

● Setting the necessary plans for identifying existing unlicensed food production units;

● Raising community awareness; and

● Cooperating and coordinating with national and international organizations concerned with the safety of food and human health.

The Contractor must provide the necessary technical assistance for the Authority to meet its mandate, including working with the FSA to: develop organizational objectives; develop work plans; develop a process for setting operational rules, procedures, and business processes; acquire critically needed information and communication technology and equipment. The Contractor must also advise the FSA on institutional development and, importantly, train the current and new FSA staff. The Contractor must work closely with relevant staff of the Authority to develop a comprehensive work plan including interventions, concrete results, and specific milestones. The Contractor must provide assistance in developing a monitoring and evaluation system so that the Authority can monitor its progress in the achievement of results.

The following are examples of tasks that may be implemented by the Contractor:

● Assisting in establishing a communication network between laboratories and inspection authorities (head office and branches).

● Establishing well-equipped training and certification centers as the FSA will provide different types and levels of training modules for industry as well as for inspectors.

● Establishing a hot-line and complaint system

Focus Area 4: U.S. Trade Discussions and U.S. Import Programs

The Contractor is required to promote bilateral relations between the U.S. and Egypt, as both the GOE and the United States Government (USG) agree on the importance of strengthening bilateral economic and commercial ties. Through its technical assistance and in consultations with the COR, the Contractor will support the bilateral Trade and

Investment Framework Agreement (TIFA) discussions. Further, the TRADE Activity must assist firms with taking advantage of existing trade agreements and programs, including the

Qualified Industrial Zones (QIZ) program and the Generalized System of Preferences

(GSP).

Focus Area 5: Foreign Direct Investment

The Ministry of Investment and International Cooperation (MIIC) has requested assistance to cut excessive bureaucracy and red tape through operationalization of the new investment law and executive regulations as well as increased automation of processes to reduce opportunities for corruption. The MIIC has requested assistance from the World Bank and other donors such as USAID to support expert reviews of laws, regulations, and processes to ensure best practices as well as extensive staff training in “soft skills” and a customer service orientation needed to streamline investment transactions and ensure that information on policies, processes, and decisions related to investment in Egypt are widely accessible to the public and the private sector. The Contractor should implement any assistance, including strengthening the enabling environment, regulatory reforms, and government capacity building, in alignment with USAID’s policy on Private Sector

Engagement.

C.5 COORDINATION WITH KEY STAKEHOLDERS:

a. Coordination with GOE, private and quasi-government associations

Subject to the technical direction of the COR, the Contractor must work closely with

Egypt’s MTI (main counterpart for the TRADE Activity), MIIC, and other GOE counterparts. The Contractor’s work with the MTI is expected to involve implementation of the MTI’s Industry and Trade Development Strategy 2016-2020 and identification of the priority areas for technical assistance, especially in the restructuring efforts within MTI. In order to achieve the results, the Contractor must consult and coordinate with the full range of the GOE’s ministries, departments, and agencies related to trade and investment.

b. Coordination with the U.S. Government

USAID has a “whole of government policy” which requires coordination with other U.S.

Government (USG) agencies. Under the direction of USAID, the Contractor must coordinate activities and exchange information with appropriate U.S. Government entities, such as the U.S. Embassy in Cairo, U.S. Department of Agriculture (USDA), and the U.S.

Trade Representative (USTR). Moreover, coordination of activities and information exchange is required with the Mission’s point of contact for the Development Outreach and

Communications Office, as well as the U.S. Embassy’s Public Affairs Office. Coordination is necessary whenever an event or accomplishment may receive press coverage or otherwise further the public diplomacy interests of the USG.

c. Coordination with Other USAID Projects

The Contractor must coordinate with relevant USAID projects. The Contractor will proactively seek opportunities to coordinate resources from USAID to achieve greater impact whenever possible, and avoid duplication. The Contractor must coordinate when beneficiaries, client firms, or GOE partners overlap to identify opportunities for programmatic synergies to be achieved.

The TRADE Activity will coordinate with and leverage the resources of existing USAID activities:

1) The Workforce Improvement and Skills Enhancement (WISE) activity works with

Egypt’s technical secondary schools and the private sector to improve technical secondary education to meet the needs of the job market. The activity seeks to reduce the current skills mismatch, create a pool of qualified graduates, and then link these graduates with jobs. WISE is also working to improve the performance of the private sector through in-house training and improved human resource strategies that reduce staff turnover. WISE is building the capacity of business associations to advocate for policy and regulatory reforms related to labor market efficiency.

2) USAID/Egypt’s agriculture activity, Feed the Future Egypt - Rural Agriculture

Strengthening Project (ERAS) will facilitate the adoption of international food quality and safety standards for horticulture crops destined for both international and domestic markets, including food processors, supermarkets, and restaurant chains.

3) Macroeconomic Stabilization and Reform (MESR) activity will complement the

TRADE Activity, as this project seeks to assist the Ministry of Finance and other GOE counterparts with providing a competitive and stable macroeconomic environment.

4) The TRADE Activity will also coordinate with other projects that may become operational throughout the course of implementation.

d. Defining Activity Boundaries

Although the subject procurement may work with the processed food export council to increase Egypt’s exports, this Contract will exclude activities directly assisting farmers and firms to produce and export fresh agricultural products. This assistance will be undertaken by the Egypt Rural Agriculture Strengthening Project (ERAS).

e. Coordination with Other USG Projects

The Contractor must coordinate with relevant assistance projects managed by USG

Agencies. There are a number of USG Agencies providing technical assistance in Egypt, but one in particular that the TRADE Activity must be aware of and coordinate closely with is the U.S. Department of Agriculture (USDA), which provides trade-related technical assistance to the National Food Safety Authority. The USDA’s Transforming the

Assessment and Inspection of Food Businesses in Egypt (TAIB) activity is aiming to align food safety and quality regulations, improve food inspection and rapid response planning, and raise consumer and industry awareness.

As part of an ongoing trade dialogue with the GOE, the U.S. Department of Commerce’s

Commercial Law and Development Program (CLDP), implemented via an inter-agency agreement with USAID, provides trade-related technical assistance to GOE entities in topic areas such as trade facilitation, customs valuation, food safety, and other trade policy-related topics. CLDP manages this activity from Washington DC and provides assistance that involves sending primarily USG officials, but also experts from other relevant organizations, to conduct short-term training and consultations in Cairo for Egyptian officials.

The Contractor will proactively seek opportunities to coordinate USAID resources of this

Cairo-based TRADE Activity with the assistance provided by other U.S. Government agencies to achieve greater impact, improve efficiency, and avoid duplication.

C.6 OTHER DONOR ASSISTANCE PROGRAMS

The TRADE Activity will fill an important technical assistance niche in Egypt. As of the drafting of this RFP, there are no major activities that address the export competitiveness of

NEEREs. The Contractor is required to map the trade-related activities of existing donors upon the signing of the award. The following are donor programs working in other relevant trade-related fields in Egypt:

EU: “Trade and Domestic Market Enhancement Program.” The project is implemented with the Ministry of Industry and Trade and was launched in October 2015. It includes four results: improved rules and procedures relating to foreign trade and implementing agencies;

improved capacity of MTI to negotiate trade agreements; stronger enforcement of IPR; and development and implementation of MTI’s reform agenda.

UNIDO: “Development of clusters in cultural and creative industries in the Southern

Mediterranean.” The project was launched in February 2015. It started its implementation phase and trained cluster development agents, met stakeholders, and organized field visits for cluster and design experts, which seek to develop clusters’ business plans and organize necessary capacity-building activities for both selected and non-selected clusters.

EU and EBRD: “Facility for Advisory Support to SMEs.” The project was launched in

2014. It connects small and medium-sized enterprises with the expertise that can transform their businesses. Working with local consultants and international experts, the project provides businesses the tools, skills and know-how to innovate and attract finance and needed expertise. The longer-term objective is to develop the next generation of business leaders from among the assisted NEEREs. With expertise in management, marketing, quality management, and engineering, this project will help enterprises become fitter, healthier, more prosperous and more resilient.

OECD and EU: “Supporting the development of the Suez Canal Economic Zone.” The project was launched in February 2017. The main objective of the project is to build strong policy frameworks for the successful development of the Suez Canal Zone.

C.7 COLLABORATING, LEARNING, AND ADAPTING

USAID seeks to promote learning across stakeholders involved in the implementation of

TRADE through Collaborating, Learning, and Adapting (CLA).

CLA Objectives:

a) Generate Knowledge. The Contractor must generate new knowledge and evidence around learning questions identified together with USAID and other stakeholders, as well as questions that emerge during the course of implementation. In filling these knowledge and evidence gaps, the Contractor must provide reporting, data, and analysis, and gather partners for inclusive reviews of the activity goals and results.

b) Share Knowledge. The Contractor must increase knowledge sharing with stakeholders, local organizations, Government of Egypt, sectoral experts, donors, regional and international organizations, and others to encourage more widespread learning across teams, mechanisms, and sectors. The Contractor must work together within a learning network to share information with implementing partners of other USAID activities, as well as local stakeholders and other development partners. The Contractor must convene forums to share knowledge and also use existing forums within Egypt.

c) Incorporate Agile and Adaptive Processes. The Contractor must develop adaptive management and implementation processes and must include an adaptive management plan within the annual work plans to allow course corrections to respond to unintended effects, changing/emerging realities, and priorities. Together with USAID, the

Contractor’s activity work plan, quarterly reports, and periodic progress review meetings must provide a forum for an adaptive approach to change course based on lessons learned and the evolving country context. The Contractor must prioritize activities together with the COR during work planning and review the prioritization during the quarterly reporting period. If circumstances arise, the Contractor may and should alter activity designs with approval from the COR to accommodate the window of opportunity, as long as the reprogramming (i) falls within the scope of work of this

Contract, and (ii) does not hold the USG to incurring additional costs, in each case unless otherwise directed by the CO.

C.8 OTHER KEY CONSIDERATIONS FOR THE ACTIVITY

A. Private Sector Engagement Policy

The TRADE Activity seeks full alignment with USAID’s Private Sector Engagement policy released on December 12, 2018. USAID/Egypt acknowledges that today, the private sector is playing an unprecedented role in creating and shaping opportunities that improve the lives of the people and communities that USAID supports particularly in Egypt where a robust and competitive private sector is so critical to accelerating inclusive economic growth. The Mission seeks to increase collaboration with the private sector to support

Egypt’s Journey to Self-Reliance through the TRADE Activity in part through a stronger current account balance and less reliance on external debt. To capitalize fully on this opportunity and reach the goal of ending Egypt’s need for assistance, Contractors should propose activities that work hand-in-hand with the private sector to deliver activities across all three sub components that harness private sector resources, open markets, and expand opportunities for U.S. businesses.

B. Gender

The Contractor must give special attention to assure equitable opportunities for the participation and economic empowerment of women in all three TRADE Results. In promoting equitable opportunities for women to participate in economic activities, the

Contractor must take gender into consideration in terms of how services are promoted, accessed, and provided so as to maximize participation by women-owned businesses.

Accordingly, the Contractor is expected to utilize input from potential activity beneficiaries, and use available resources such as the “USAID/Egypt Gender Assessment

Report” and the “Gender Analysis Report” produced by the Trade Facilitation Project in

2013 (refer to Sections J.12 and J.13).

C. Environment

Activities related to building the export capacities of NEEREs are accorded a Negative

Determination with Conditions. In accordance with 22 CFR 216.3 (a)(2)(iii), “The cognizant Bureau or Office will record a Negative Determination if the proposed action will not have a significant effect on the environment.”

Activities in this contract will include providing technical assistance, coaching, and training to a number of NEEREs in selected sectors. Since some NEEREs in certain sectors (e.g.

chemicals, food processing, or textiles) may be engaged in activities that could have an effect on the environment, especially with regard to disposal of waste, the Contractor must review the environmental impact of proposed activities and propose appropriate mitigation measures. These measures must include, among other things: 1) incorporating “good environmental practices” in technical assistance provided to NEEREs and 2) including “the need for the business idea to address environmental considerations” as one of the criteria for certain beneficiaries receiving assistance (Section J.8 Initial Environmental Evaluation).

D. Impact on Jobs in the United States

Restrictions in U.S. appropriations and USAID’s regulations under ADS 225 prohibit certain activities that represent a high risk of being directly linked to substantial injury to

U.S. producers or to potential relocation of U.S. jobs. These activities may not be funded by this Contract under any circumstance. The Contractor must continually monitor developments in international trade and investment to ensure compliance with SEC. 7025 of the FY2012 Act as carried through by FY2013 and ADS 225 in light of ongoing interventions, update analyses as necessary, and share these findings through regular reporting to USAID during implementation of the Contract.

[END OF SECTION C]

SECTION D - PACKAGING AND MARKING

D.1 AIDAR 752.7009 MARKING (JAN 1993)

(a) It is USAID policy that USAID-financed commodities and shipping containers, and project construction sites and other project locations be suitably marked with the

USAID emblem. Shipping containers are also to be marked with the last five digits of the USAID financing document number. As a general rule, marking is not required for raw materials shipped in bulk (such as coal, grain, etc.), or for semi-finished products which are not packaged.

(b) Specific guidance on marking requirements should be obtained prior to procurement of commodities to be shipped, and as early as possible for project construction sites and other project locations. This guidance will be provided through the cognizant technical office indicated on the cover page of this contract, or by the Senior Development Outreach and Communications Specialist in the

Cooperating Country to which commodities are being shipped, or in which the project site is located.

(c) Authority to waive marking requirements is vested with the Regional Assistant

Administrators, and with Mission Directors.

(d) A copy of any specific marking instructions or waivers from marking requirements is to be sent to the Contracting Officer; the original should be retained by the

Contractor.

D.2 BRANDING AND MARKING POLICY

(a) The Contractor must comply with the requirements of the policy directives and required procedures outlined in USAID Automated Directive System (ADS) 320.3.2 “Branding and Marking in USAID Direct Contracting” (Version from January 8, 2007) at http://www.usaid.gov/policy/ads/300/320.pdf; and USAID “Graphic Standards

Manual” available at www.usaid.gov/branding, or any successor branding policy.

(b) Pursuant to ADS 320.3.2 USAID policy requires exclusive branding and marking in

USAID direct acquisitions.

(c) “Exclusive Branding” means that the program is positioned as USAID’s, as showcased by the activity name.

(d) “Exclusive Marking” means that contractors may only mark USAID-funded programs, projects, activities, public communications, and commodities with the USAID Standard

Graphic Identity and, when applicable, the host-country government or ministry symbol or another U.S. Government logo.

http://www.usaid.gov/policy/ads/300/320.pdf http://www.usaid.gov/branding

(e) Prime and subcontractors’ corporate identities and logos must not be used on USAID-funded program materials in accordance with USAID policy.

D.3 BRANDING STRATEGY

In accordance with ADS 320 Branding and Marking, and USAID’s overall policy, all assistance delivered through this program must be clearly credited to the American People.

This Branding Strategy outlines the framework in which materials and communications use to promote the program deliver the message that the assistance is from the American

People, as well as to ensure appropriate use of the USAID identity markings. The branding strategy for this contract, as specified in USAID ADS 320.3.2.1, is as follows:

Program Name: Trade Reform and Development in Egypt (TRADE).

Positioning: The project will be positioned as a partnership between USAID and

Government of Egypt (GOE) as well as private sector associations and private enterprises that have critical roles in the improvement of the trade sector in Egypt. The main counterpart of this project is the Ministry of Industry and Trade. The objective of the

TRADE Activity is to increase Egypt’s international trade and investments, and in particular, to increase exports from new small and medium-sized exporting firms. To accomplish this, USAID, in partnership with the GOE, will improve the competitiveness of

New and Expanding Export-Ready Enterprises to succeed in the international marketplace and take full advantage of new opportunities resulting from the GOE’s recent economic reforms.

Visibility: The project will have high visibility in Egypt among its targeted audiences. As such, USAID expects it to be actively publicized and requests pre-production review of all materials that include the USAID logo. All materials must be marked in compliance with the USAID Graphic standards manual at https://www.usaid.gov/branding/gsm.

Acknowledgements: Should a partnership arise between other counterparts, they will be acknowledged as appropriate in all work per USAID’s regulations. In any collaboration with other donors, those donors will be acknowledged per USAID’s regulations.

Project Main Messages: Through this project, USAID seeks to 1) enhance the exporting capacities of Egyptian firms; 2) strengthen trade support institutions and private sector associations; and 3) support efforts to improve the trade and investment policy, regulatory and institutional environment. The main message is that small and medium enterprises

(SMEs), if provided the adequate services and are exposed to an improved business environment, will boost their exports and hence improve Egypt’s trade balance.

Project Audiences: The primary audience for project publicity is the Egyptian public, including private sector leaders, policy makers, opinion leaders, the media, Egyptian consumers,…