ERA_RFP.pdf

U.S. Agency for International Development (USAID)

Project Title: Economic Reform Activity (ERA) Solicitation #: 72027819R00011Page | 1

Project Title: Economic Reform Activity (ERA) Solicitation #: 72027819R00011Page | 2

List of Acronyms

ACO Administrative Contracting Officer

ADS Automated Directives System

AIDAR International Development Acquisition Regulation

BEE Business Enabling Environment

BEO Bureau Environmental Officer

CAGE Commercial and Government Entity

CAS Cost Accounting Standards

CCN Cooperating Country National

CDR Ceiling Daily Rates

CFA Cognizant Federal Auditor

CFAO Cognizant Federal Agency Official

CLA Collaboration, Learning, and Adaptation

COP Chief of Party

COR Contracting Officer Representative

CPAF Cost-Plus- Award-Fee

CPAR Contract Performance Assessment Reporting System

CPFF Cost-Plus-Fixed-Fee

CPIF Cost-Plus-Incentive-Fee

CSP Cloud Service Provider

CST Contractor Salary Threshold

DDL Development Data Library

DEC Development Experience Clearinghouse

DLA Defense Logistics Agency

EA Environmental Assessment

EIG Exit and Intervention Graduation Plan

EMMP Environmental Mitigation and Monitoring Plan

EOCC Expanded Object Class Code

ERA Economic Reform Activity

ESA Enterprise Support Activity

FAPIIS Federal Awardee Performance and Integrity Information System

FDI Foreign Direct Investment

FedRAMP Federal Risk and Authorization Management Program

FICA Federal Insurance Contributions Act

FIPS Federal Information Processing Standards

FMCG Fast Moving Consumer Goods

Project Title: Economic Reform Activity (ERA) Solicitation #: 72027819R00011Page | 3

FOIA Forensics, Freedom of Information Act

GCI Global Competitiveness Index

GUCs Grants under Contracts

IA Information Assurance Division

IaaS Infrastructure as a Service

ICT Information and Communication Technology

IDIQ Indefinite Delivery/Indefinite Quantity

IEE Initial Environmental Examination

IPN Implementing Partner Notices

IR Intermediate Result

IRS Internal Revenue Service

ISIS Islamic State of Iraq and Syria

ISS Information System Security

JE Jordan Export

JIC Jordan Investment Commission

LPA/PIPOS Bureau for Legislative and Public Affairs/Public Information, Production and

Online Services

M&M Mitigation and Monitoring

MEL Monitoring, Evaluation, and Learning

MEO Mission Environment Officer

NATO North Atlantic Treaty Organization

NICRA Negotiated Indirect Cost Rate Agreement

NIST National Institute of Standards and Technology

NSPA NATO Support and Procurement Agency

ODC Other Direct Costs

OFPP Office of Federal Procurement Policy

OMB Office of Management and Budget

PaaS Platform as a Service

PBA Performance-Based Acquisition

PII Personally Identifiable Information

PIRS Performance Indicator Reference Sheets

PIV Personal Identity Verification

PPP Public Private Partnership

PRO Program Office

PWS Performance Work Statement

QASP Quality Assurance Surveillance Plan

RF Results Framework

Project Title: Economic Reform Activity (ERA) Solicitation #: 72027819R00011Page | 4

RFTOP Request for Task Order Proposal

SaaS Software as a Service

SLAs Service Level Agreements

SOO Statement of Objectives

SOW Statement of Work

SP Special Publications

SSN Social Security Number

SSR Summary Subcontracting Report

TCN Third Country National

TIC Trusted Internet Connection

TIN Taxpayer Identification Number

TO Task Order

TOCO Task Order Contracting Officer

TOCOR Task Order Contracting Officer Representative

ToS Terms of Service

VCS Visa Compliance System

WEELA Women’s Economic Empower and Leadership Activity

3PAO Third Party Assessment Organization

Project Title: Economic Reform Activity (ERA) Solicitation #: 72027819R00011Page | 5

PART I - THE SCHEDULE

SECTION B - SUPPLIES OR SERVICES AND PRICE/COSTS

B.1 PURPOSE

The purpose of this contract is to provide services that fall within the Statement of Work (SOW) specified in Section C for the Economic Reform Activity (ERA). USAID Task Order

Contracting Officers (TOCOs) will request the work through the issuance of task orders during the ordering period as specified in Section F of the contract.

B.2 CONTRACT TYPE AND SERVICES

This is an Indefinite Delivery/Indefinite Quantity (IDIQ) type contract. The Government will issue task orders that are either Cost-Plus-Fixed-Fee (CPFF) (term or completion), Cost-Plus-

Award-Fee (CPAF), Cost-Plus-Incentive-Fee (CPIF), or any combination thereof resulting from this solicitation. The Contractor must perform the services set forth in task orders at prices consistent with Section B of this contract.

B.3 MINIMUM OBLIGATED AMOUNT

The basic contract includes an initial obligation of funds in the amount of $75,000 to cover the minimum order guarantee. USAID is required to order and the Contractor is required to furnish the minimum order amount of services.

Following this initial obligation, individual task orders will obligate funds to cover the work required under that task order.

B.4 MAXIMUM CONTRACT CEILING

This is a multiple award IDIQ, with an overall ceiling cost of $150,000,000. The maximum aggregate dollar value of task orders awarded to all contractors must not exceed the contract ceiling. This ceiling is not being subdivided among the number of awardees nor is it being multiplied by the number of awardees.

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B.5 FIXED FEE CEILING (Cost-Plus- Fixed-Fee Task Orders Only)

(a) For each cost-reimbursement task order issued under this IDIQ, the TOCO and Contractor agree to negotiate a set dollar amount for the fixed fee. In negotiating the fixed dollar amount for fee, the TOCO must consider the policies and factors for establishing fee in FAR 15.404-4 as well as any applicable USAID policy on establishing a fixed fee amount. In no event, however, may the amount of fixed fee in any individual task order exceed [negotiated approved ceiling percentage] of the task order’s estimated cost, excluding fee.

This fee ceiling is not applicable to Grants under Contracts (GUCs), if any, or other costs that have a separate fee ceiling established in the contract. The fixed fee ceiling applies to the prime contract and all cost reimbursement subcontracts.

Fees for CPIF or CPAF task order types will be negotiated by the TOCO at the time of task order award.

(b) The Total Estimated Cost -Plus- Fixed- Fee for each Task Order must be negotiated in accordance with the terms of this contract.

(c) Fixed Fee Payment. For any Task Order issued under this Contract, at the time of each payment of allowable costs to the contractor, the USAID paying office ordinarily pays the contractor a percentage of the fixed fee that directly corresponds to the percentage of allowable costs being paid. Two exceptions to paying fixed fee in this manner apply:

(1) If the TOCO 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

TOCO may suspend further payment of any fixed fee until the contractor has made sufficient progress to justify further payment, up to the agreed percentage.

(2) Because the clauses entitled "Allowable Cost and Payment" (FAR 52.216-7) and

"Fixed Fee" (FAR 52.216-8) are incorporated into this Contract, the terms and conditions of these clauses apply after total payments of fixed fee reach eighty-five percent (85%) of the total fixed fee.

(d) Separate Fixed Fee Ceiling Applicable To Grants Under Contracts (GUCs)

Project Title: Economic Reform Activity (ERA) Solicitation #: 72027819R00011Page | 7

If a Letter of Credit has been issued to the Contractor for GUC expenditures only, in no event may the amount of fixed fee (if any) applicable to GUCs in any individual task order exceed percent (Offeror proposes ceiling percentage) of the task order GUC cost.

B.6 LABOR

Actual salaries for all personnel not identified in B.6.1 will be negotiated under task orders and final approval is provided by the TOCO.

B.6.1 Unburdened Ceiling Daily Rates

(a) Unburdened Ceiling Daily Rates (“CDR”) apply to all labor (i.e., the prime contractor, subcontractor, Third Country Nationals (“TCNs”), Cooperating Country Nationals (“CCNs”), and consultant salaries) on cost-type task orders. CDRs assume a productive, eight hour work day.

(b) Additional requirements and approvals under the IDIQ Contract may apply to labor costs, including, but not limited to the following:

(i) Agency for International Development Acquisition Regulation (“AIDAR”) §

752.7007, Personnel Compensation (July 2007), as provided in Section H.2;

(ii) Approval of subcontractors as required under FAR Part 42;

(iii) Approval of any final salary rates that exceed the Contractor Salary Threshold

(“CST”);

(c) The Contractor will negotiate approved labor rates at equal to or lower than the CDRs. The

TOCO will provide the final approval of any labor rate. USAID will not pay any daily rate that exceeds the CDR set forth in Table 1 without prior TOCO approval.

(d) The CDR for personnel listed in Table 1 is “unburdened” and must only include salary costs or consulting rates of the individual providing the services. The CDR must not include the following:

(i) Payroll costs (e.g., fringe benefits, Federal Insurance Contributions Act (“FICA”), allowances, differentials);

(ii) Indirect costs applicable to labor; and,

(iii) Profit or fee, if any.

Project Title: Economic Reform Activity (ERA) Solicitation #: 72027819R00011Page | 8

(e) The CDRs set forth in Table 1 apply to Year 1 of the IDIQ’s period of performance. An escalation rate of [Offeror proposes escalation rate] % per year applies to those CDRs.

(f) The CDRs apply to all consented subcontractors under this IDIQ Contract and new subcontractors proposed for specific cost-type task orders.

The unburdened CDR for each labor category in Table 1 represents the rate for the senior-level, mid-level, and junior-level for each labor category.

(g) Actual salaries for all personnel will be negotiated under task orders and final approval is provided by the TOCO. The ceiling rates presented below do not constitute approval of final salary rates above the Contractor Salary Threshold (CST) (see ADS 302).

Table 1. Labor Categories

Labor Categories

Unburdened CDR

(Senior- Level)

Unburdened CDR

(Mid- Level)

Unburdened CDR

(Junior- Level)

Chief of Party $ N/A N/A

Component Leader $ N/A N/A

Subject Matter Expert $ $ $

Officer $ $ $

Support Specialist $ $ $

Project Title: Economic Reform Activity (ERA) Solicitation #: 72027819R00011Page | 9

Table 2. Examples of Labor Categories

Labor Categories Illustrative Task Order Level Labor Categories Description

Chief of Party The Chief of Party (COP) will be responsible for overall implementation, results and management of the project. The COP must serve as the primary point of contact with USAID with regard to day-to-day implementation and management matters relating to the contract. The

COP must ensure that the activities and results are implemented in a timely manner within the approved budget.

Component Lead Provides expert technical guidance on all aspects to implementing partner, Mission and other stakeholders including performance assessments, performance solutions design and performance monitoring and management system design. Assumes a lead role in various stages of the activity as directed. Performs consulting activities to assist clients in activities such as building leadership, performing strategic planning, conducting information analysis, and developing process improvements.

Subject Matter

Expert

Provides subject matter expertise as necessary to suit sector focus of various initiatives. Subject matter may include expertise in policy reform, enabling business environments, development in export/import, investments transactions, financial law, auditing, business planning, and trade. Provides industry or sector specific advice to enterprises including industry specific business and action planning, performance measures and indicators, organizational assessments, sector and/or industry assessments, and process and productivity improvement.

Officer Performs varied overall support for program implementation. Duties may include, but are not limited to, providing administrative support, budget formulation, budget execution, budget monitoring, financial reporting, forecasting annual funding needs, ensuring compliance with procedures and regulations, modifying budgets as necessary, working with government counterparts to ensure availability of funds based on government budget cycles, procuring contracts, managing subcontracts, administering and managing grants, project administration, etc.

Project Title: Economic Reform Activity (ERA) Solicitation #: 72027819R00011Page | 10

Support Specialist Provides services in one or more of the following: secretarial, driver, receptionist, security, cleaner, etc.

(h) Locally-Hired National Personnel or Other Non-U.S. Expatriate Rates. All locally hired national personnel and other non-U.S. expatriates must be paid in accordance with AIDAR

722.170. Salaries for individual locally-hired personnel and other non-U.S. expatriates under this contract and any resulting subcontract must be in accordance with AIDAR 752.7007, Personnel

Compensation (July 2007), and should be based upon a combination of factors including the prevailing compensation paid to personnel performing comparable work in the cooperating country as determined by USAID and consideration of the individual's education, work experience and recent relevant salary history. Unless otherwise authorized by USAID, the compensation for CCN and TCN labor must not exceed the prevailing compensation paid to personnel performing comparable work in the cooperating country. Unless otherwise authorized, the currency in which compensation is paid to contractors shall be in accordance with the prevailing local compensation practice of the post.

B.6.2 Minimum Qualifications for Labor Categories

The minimum qualifications for the junior-level, mid-level, and senior-level personnel that would correspond to the Unburdened CDRs set forth in Table 1 are detailed below in Table 3.

Table 3: Minimum Qualifications for Labor Categories:

Labor Categories Senior Mid Junior

Relevant Work

Experience Only

(years)

Relevant Work

Experience Only

(years)

Relevant Work

Experience Only

(years)

Chief of Party 10 N/A N/A

Component Leader 8 N/A N/A

Project Title: Economic Reform Activity (ERA) Solicitation #: 72027819R00011Page | 11

Subject Matter

Expert 8 5 N/A

Officer 5 3 2

Support Specialist N/A 3 0

*USAID has chosen not to include minimum education requirements to allow the Offeror to have maximum flexibility in informing their hiring approaches.

B.6.3 Subcontractor Labor Rates

The following provides guidance for various subcontracting arrangements:

(i) If the Prime subcontracts with an approved subcontractor from the original IDIQ competition, the unburdened CDR’s for the prime contract apply to the subcontractor.

(ii) If the Prime contracts with a new subcontractor not yet approved, the unburdened CDR’s for the prime contract apply to the new subcontractor.

(iii) Prime subcontracts with a new subcontractor not yet approved and may or may not have a different cost accounting system that only processes fully burdened rates. Further, subcontractor proposes rates that are “above” the prime IDIQ rates.

The Prime may then include in its Task Order (TO) proposal, (i) the fully burdened rate proposed to the Prime by the Subcontractor,(ii) allocation of the Prime’s indirect costs in accordance with established accounting practices, and (iii) a reasonable profit. If the rates proposed to USAID, inclusive of the Prime’s allocable indirect costs and a reasonable profit are above the Prime’s unburdened CDRs, the Prime must disclose the amount of the indirect costs, and the amount of the proposed profit that were added to the Subcontractor’s proposed rates. A reasonable profit will be negotiated by the TOCO for the specific TO. The CDRs of the subcontractor must not exceed the Prime’s CDRs in the IDIQ contract.

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B.6.4 Unburdened CDR Rate Changes

The labor rates are fixed for all contract years; however, the Contractor may submit a proposal reducing the labor rates and/or indirect rates at any time during the life of this contract. The

Government will review these proposals and determine if the revised rates are realistic and in the best interests of the Government. If the rates are accepted, the Government will modify the contract by incorporating the new rates into the contract.

B.6.5 Billing Central Management Costs

The Contracting Officer has determined that a key (full-time) technical manager is not necessary or required to administer the basic IDIQ. Contractors will not be authorized to bill

USAID directly for IDIQ management costs under this IDIQ or under task orders.

Contractors must propose a centralized management structure that allows for recovery of

IDIQ management costs as part of its indirect costs.

B.7 INDIRECT COSTS AND ADVANCED UNDERSTANDING ON CEILINGS

(a) This Section only applies to prime contractors performing cost-type task orders.

(b) Pending establishment of revised provisional or final indirect cost rates, USAID will reimburse allowable indirect costs on the basis of the following negotiated provisional or predetermined rates and the appropriate bases pursuant to the contractor’s current executed

Negotiated Indirect Cost Rate Agreement (“NICRA”):

Table 4 - INDIRECT COSTS

[To Be Determined at Award]

Project Title: Economic Reform Activity (ERA) Solicitation #: 72027819R00011Page | 13

Description Fringe Rate

Overhead

Rate

Overhead

Ceiling Rate

G&A Rate G&A

Ceiling

Rate

Prime

Contractor: [•]

Base of

Application: [•]

Source: [•]

Period: [•]

Note: The unshaded columns in Table 3 are the current approved indirect cost rates for the prime contractor.

(c) The Contractor must not change its established method of classifying or allocating indirect costs without the prior written approval of the IDIQ Contracting Officer.

(d) USAID will reimburse the Contractor for indirect costs at the final negotiated rates, but not in excess of the ceiling rates specified in Table 4. The Government must not be obligated to pay any additional amount associated with indirect costs above the ceiling rates established in the contract. This advance understanding must not change any monetary ceiling, cost limitation, or obligation established in the contract.

(e) The Contractor can recoup indirect costs (e.g., overhead, G&A, etc.) as other direct costs if it is part of the Contractor’s usual accounting procedures, consistent with FAR Part 31 and the

Contractor’s NICRA.

B.8 REIMBURSABLE COSTS

For cost-reimbursement task orders, USAID will only reimburse the Contractor for allowable costs in accordance with FAR § 52.216-7, “Allowable Cost and Payment,” FAR § 52.216-8, “Fixed Fee,” FAR § 52.232-20, “Limitation of Cost,” FAR § 52.216-10, “Incentive Fee,” and

FAR § 52-232-22, “Limitation of Funds,” if applicable, and AIDAR 752.7003, “Documentation for Payment.”

END OF SECTION B

Project Title: Economic Reform Activity (ERA) Solicitation #: 72027819R00011Page | 14

SECTION C - DESCRIPTION/SPECIFICATIONS/STATEMENT OF WORK

C.1 ERA Goal

Jordan’s Economic Reform Agenda Prioritized and Implemented.

C.2 Development Hypothesis

If Jordan-led economic reforms are enabled, the business enabling environment is strengthened, export development and local, regional and international investment are promoted, and joint priorities of the Government of Jordan (GoJ) and the United States Government (USG) are addressed, then Jordan’s economic reform agenda will be prioritized and implemented.

C.3 Link to the Country Development Cooperation Strategy

The Economic Reform Activity supports the USAID/Jordan Country Development Cooperation

Strategy goal of Development Objective 1 “Accelerate broad-based, inclusive economic development in Jordan” by contributing to Intermediate Result (IR) 1.1, “Private sector competitiveness increased,” and IR 1.2, “Economic opportunities increased, including for women and other vulnerable groups .” While the Mission is currently in the process of preparing its next five-year strategy, ERA is expected to likewise support the DOs and IRs of the next strategy, as economic growth and stability will continue to be a top priority of the USG in

Jordan.

C.4 Geographic Scope

This activity is anticipated to operate nationwide, with a focus on governorates with high growth potential to promote economic growth inside and outside of Amman.

C.5 Problem Statement

Jordan has endured slow growth and widespread economic stagnation over the past decade. The country’s recent economic decline was spurred by the global financial crisis in 2008, the Arab

Spring in 2011, and was further compounded by plummeting oil prices in 2014, which severely https://www.usaid.gov/sites/default/files/documents/1883/Amended_Jordan_Country_Development_Strategy_November_2016

_1.pdf Vulnerable groups include women, youth, refugees, people with disabilities, and minority groups.

Project Title: Economic Reform Activity (ERA) Solicitation #: 72027819R00011Page | 15 reduced Gulf state contributions, and the growing threat of the Islamic State of Iraq and Syria

(ISIS) in the region.

While these elements have pressured the economy in recent years, structural challenges, including a lack of exploitable natural resources, a labor force with mismatched skills and expectations of labor quality, and a perennial reliance on aid, have limited the growth and independence of the economy for far longer, despite domestic commitment to finding pathways to greater economic self-reliance. These challenges have limited Jordan’s ability to focus on its reform agenda and have led the country to become more reactive than proactive.

C.6 Context

The enduring strain on Jordan’s economy has been exacerbated by varying influences and constraints to growth. These include prevailing regional instability, the stagnation of surrounding economies, a sharp reduction in financial support from oil-producing states, and the closing of borders, leading to lower import purchases and investment among Jordan’s natural trade partners. These elements, coupled with rapid increases in refugee populations, fluctuations in tourism, an unpredictable regulatory environment that hinders the ease of doing business, including trade and investment, the low sophistication of domestic enterprises, imbalanced unemployment, disparate access to reliable infrastructure, and volatile energy costs, have all contributed to the economic contraction affecting Jordan. This state has been further intensified by evolving tax policy and ongoing corruption challenges.

While the challenges are robust, the opportunities and domestic potential give rise to a hopeful future. The GoJ has taken a proactive role in attempting to spur investment, support export promotion, and build national capacity. The private sector has pushed forward with new gains in increased formalization. Working together, bolstered by donor community support, the GoJ and

Jordanian private sector can jumpstart the economy.

C.7 Constraints to Growth

The constraints to economic growth in Jordan can be roughly grouped into external and internal influences, though none are mutually exclusive. External influences include regional instability and stagnation, refugee surges, a perennial reliance on aid and external financing and related donor crowding, unpredictable Gulf state financial support and investment, and the closure of land borders with neighbors.

Project Title: Economic Reform Activity (ERA) Solicitation #: 72027819R00011Page | 16

Domestic constraints to growth include a challenging and unpredictable environment for doing business, varying government effectiveness and efficiency, reduced exports and investment, low enterprise sophistication and limited innovation, and relatedly, an economy focused on low wage labor despite having a population of highly educated people, with particularly low women’s participation in the workforce, varying receipts from tourism, natural resource challenges including water and energy, and disparate access to infrastructure and transportation. Mitigating and reducing these constraints and expanding positive influences is seen as critical to turning the tide and unlocking Jordan’s growth potential. Annex C.1 includes expanded discussion on the constraints and influences to growth in Jordan.

C.8 Assets to Build

Despite the considerable challenges facing Jordan's economic growth and its reform agenda, there are many assets to build upon and opportunities to explore that will unlock growth. First and foremost, Jordan’s great asset is its people. Jordanians are a highly educated population that can be strategically tapped for growth, with particular potential stemming from the underemployed population of skilled women. The joint Arabic and English competency across a large swath of the country positions businesses to provide high value back office services to the region and the world. The burgeoning youth population, who by nature are more willing to take risks on innovation and entrepreneurship, are another key asset to develop.

Other assets within Jordan include: GoJ commitment to reform, the Kingdom’s broad regional and international relationships, geographic positioning, tourism potential, Information, Communications and Technology, the Investment Map, numerous other investment opportunities, and changing policies and attitudes towards women’s expanded economic participation. Annex C.2 includes expanded context on these assets to build.

C.9 Assumptions and Risks

This activity, its expected implementation, and ultimately its impact and success, is not without assumptions and risks. Key assumptions include:

- Jordan does not face any new external economic shocks or crises, or an unknown factor similar to the global financial crisis or the Arab Spring;

- The region returns to its early 2000s stability conditions, ISIS is eradicated, and the main traditional borders around Jordan are safe and reactivated;

- Jordan does not receive or face a new external refugee crisis and current refugee levels are maintained or decreased;

- The country’s exports will grow by five percent annually;

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- The country will be able to attract additional volumes of investments in local, regional, and foreign investments;

- The GoJ will be managed by consistent leadership for at least the next two years and subsequent leadership will have at least a two year life cycle;

- The GoJ will prioritize its reform agenda to map out the country’s journey towards economic growth;

- This prioritized reform agenda is unified, consensus-driven, public, and dynamic;

- The donor community is coordinated behind the reform agenda, works to avoid duplication of effort, and spread support across prioritized reform initiatives;

- The GoJ establishes an entity with sufficient resources to:

- Oversee the implementation of its full reform agenda;

- Reduce risks associated with the reform agenda and remove progress blocks;

- Routinely communicate with the public on the progress made and the challenges faced;

- Gather and coordinate economic assistance Jordan is receiving in various forms of aid towards the unified reform agenda; and

- Coordinate financial support for its reform agenda.

- Jordan secures adequate funding for its reform agenda;

- The Jordanian economy will continue to grow, its Gross Domestic Product (GDP) growth does not drop below two percent, and it will meet the expected IMF and World Bank growth rates;

- The federal debt will drop as a percentage of GDP;

- The macro fiscal stability of the country will make progress toward safe rates with a successful and continued International Monetary Fund (IMF) program/review;

- The private sector, civil society, and other stakeholders are active players in the country’s journey towards economic growth;

- Trust between the public and private sector is built and nurtured;

- The policies, once passed, will be supported for broad implementation and the public and private sector will embrace the new regulatory environment;

- Appetitive for financial risk for the purposes of business growth will increase with greater information and market formality;

- Donor funding will remain at current or higher levels; and

- Donor engagement will remain constant and coordination will increase.

Key risks that must be acknowledged include the following:

- The economic outlook for the country;

- The country’s macroeconomic status and improvements;

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- Monetary policy changes;

- Instability of the region;

- New and unanticipated economic or political shocks;

- Domestic protesting as a result of reform that cause delays or reversals;

- Change in GoJ leadership may not build on prior reform agendas;

- The evolving capacities of the GoJ and related limitations of the civil service pay scale;

- Public and private sector will to implement and embrace reform;

- The private sector is or is perceived to be excluded from the reform process; and

- The International Community’s support of the Jordan-led reform agenda is convoluted by other inconsistent or competing agendas.

This is Jordan’s opportunity to demonstrate to its citizens that it is working seriously and systematically to make their lives better. Any dramatic shifts in assumptions and/or realization of risks could slow or derail the reform agenda. Remaining aware of the broader evolving context, while working at a technical level, will be a challenge that faces each Task Order Contractor of this IDIQ, and will be tracked through Task Order MEL Plans.

C.10 Technical Components and Results

The goal of the activity is for Jordan’s economic reform agenda to be prioritized and implemented. The GoJ has explored and enumerated the country’s economic reform agenda through multiple documents. The GoJ Renaissance Plan and the Five-Year Growth Matrix , and any subsequent prevailing reform agendas, will guide implementation. It is expected that Task

Orders will catalyze systemic economic changes, those that affect all sectors of the economy, and sectoral ones that affect key industries.

Enabling the implementation of the State of Production chapter of the Renaissance Plan and its

Pillar 1) Supporting Entrepreneurship, Enterprise, and Exports and Pillar 2) Investments, as well as the Five-Year Growth Matrix Pillar 2) Reduce Business Costs, Improve Regulatory Quality, and Increase Competition, and Pillar 3) Drive Foreign Direct Investment and Promote Export

Development (of Products, Services, and Markets), will be a priority focus of Task Orders.

Other pillars in the respective reform agenda documents are not anticipated to be heavily incorporated in implementation but may be included in interventions.

The overlap between the activities targeted in the two reform agendas is significant.

The GoJ reform agendas can be found here: https://jordankmportal.com/collections/economic-reform-in-jordan https://jordankmportal.com/collections/economic-reform-in-jordan

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Support through the provision of technical assistance and capacity building to the GoJ to prioritize, manage, and, where needed, eliminate the overlap between the documents will be a key responsibility of the Task Order Contractor(s).

ERA will remain dynamic and responsive to the priorities of the GoJ’s economic reform agenda and the results framework (RF) (see Annex C.3) shared here will evolve based on the needs of the economic reform landscape in Jordan.

ERA will consider gender disparities, priorities, and norms within the context of the activity to ensure economic reform approaches mitigate and do not perpetuate or escalate gender challenges and work to unlock gender constraints. Jordan continues to face gender issues, including low rates of female participation in the labor market, persistent gender stereotypes about the role of females and males, and conservative norms that restrict the ability of females to make decisions about their lives. Women are the key untapped natural resource in Jordan. The Contractor(s), through Task Orders, will incorporate gender considerations throughout implementation. They will identify how they will thoughtfully incorporate gender relative to the reform agenda throughout all interventions.

C.10.1 Economic Reform Activity Results Framework

A visual representation of the ERA Results Framework is found in Annex C.3.

Component 1/Result 1 - Jordan-led Economic Reform for Self-Reliance Enabled

Sub-component/IR1.1 - GoJ Reform Secretariat functioning

Sub-component/IR1.2 - Priority reforms independently advanced and institutionalized

Sub-component/IR1.3 - Donor and stakeholder resources and engagement coordinated

Component 2/Result 2 - Business Enabling Environment Strengthened

Sub-component/IR2.1 - Economy-wide competitiveness improved

Sub-component/IR2.2 - Firm competitiveness promoted

Component 3/Result 3 - Export Development and Foreign Direct Investment (FDI) Promoted

(including Products, Services, and Markets)

Sub-component/IR3.1 - Export competitiveness and promotion enhanced

Sub-component/IR3.2 - Investment promotion and facilitation improved

Component 4/Result 4 Joint Priorities of the GoJ and US Addressed

Sub-component/IR4.1 - Constraints to growth reduced

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Sub-component/IR4.2 - Assets to build supported

C.10.2 Component/Result 1. Jordan-led Economic Reform for Self-Reliance Enabled

Jordan has established an agenda to reach desired economic growth targets. Driving accountability, transparency, and implementation of that reform agenda will require that the GoJ provide clear leadership and develop internal capacity and external communication to deliver on its commitment to its citizens. The Renaissance Plan and the Five-Year Growth Matrix, along with other GoJ-developed reform agendas, necessitate that the GoJ expand its capacity and potential to guide and implement reforms.

To execute the reform detailed in the various reform agendas, Jordan needs a functioning Reform

Secretariat to provide clear leadership, coordination, internal capacity development, and strategic communications with all stakeholders.

Sub-component/IR 1.1 - GoJ Reform Secretariat Functioning

In close coordination with the Ministry of Planning and International Cooperation and other entities involved in the setup of the Secretariat, the IDIQ Contractor(s), through Task Orders, will support the establishment of a functioning Reform Secretariat which will lead the implementation of the prioritized economic reforms from following:

- The GoJ Renaissance Plan;

- The Five-Year Growth Matrix; and

- Future GoJ developed reform agendas.

Through Task Orders, the IDIQ Contractor(s) will provide support and resources to build the

Reform Secretariat’s capacity to lead Jordan through its journey for economic growth and beyond to self-reliance. The IDIQ Contractor(s), through Task Orders, will invest in the capacity of the Secretariat to pursue public procurement, navigate government processes, and develop the capacity of other GoJ institutions to support the reform agendas. The IDIQ Contractor(s), through Task Orders will enable the GoJ Secretariat to monitor and learn from the reform process and improve implementation. The IDIQ Contractor(s), through Task Orders, will pursue interventions that enable the GoJ to independently move their reform agenda forward.

While considerable support and resources will be provided through ERA to the GoJ, the independent ability of the GoJ to procure and implement reforms must be the ultimate outcome of interventions with the Secretariat.

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Wherever applicable, the IDIQ Contractor(s), through Task Orders, will embed exit strategies to ensure long term sustainability for all of the activities under this sub-component.

Sub-component/IR 1.2 - Priority reforms independently advanced and institutionalized

While the Reform Secretariat is being established, the IDIQ Contractor(s), through Task Orders, will assist the GoJ and the Jordanian private sector to ensure that their reform priority list is dynamic and up-to-date and will provide technical and legal assistance to move reforms forward.

The IDIQ Contractor(s), through Task Orders, will also build the capacity of the GOJ to monitor and learn from the reform process to improve onward implementation.

It will ultimately be a function of the Secretariat to manage the economic reform priorities of the

GoJ and the Jordanian private sector to keep the reform agenda moving forward and respond to priority shifts.

The IDIQ Contractor(s), through Task Orders, will support investments in building internal technical capacity, to complement the leadership capacity, and to allow for sustainability beyond the life of the activity. In all interventions, the Task Order Contractor will enable the GoJ to do reform implementation work independently, understanding that it may be less efficient and require greater upfront human and financial resource investment. The sustainability and institutionalization of new processes and faculties within the GoJ is paramount in all interventions, as is improving the working relationship and mutual respect between the GoJ and the Jordanian private sector for the purposes of advancing implementable policy.

Sub-component/IR 1.3 - Donor and stakeholder resources and engagement coordinated

The work comprised within the reform agendas is extensive and will demand substantial funding which will come from numerous and varied sources. The Secretariat will be responsible for coordinating those resources and, at a future point, independently managing some of those resources through GoJ systems to ensure the funds are directed, designed, and executed.

The IDIQ Contractor(s), through Task Orders, will assist the Secretariat to build its capacity to generate, coordinate, and guide donor support for reform activities, to establish appropriate funding vehicles or facilities to conduct direct implementation, and to build internal systems and capacity to support that will enable that direct implementation.

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Specific tasks under Component 1 will be further defined in Task Orders, as appropriate. They may involve, but not be limited to, the following tasks:

- Establish the Terms of Reference for the Reform Secretariat;

- Develop human resource tools and systems to enable the Secretariat to achieve its goals and objectives;

- Provide support and resources to build the Secretariat’s capacity to sustainably lead the

GoJ’s implementation of reforms;

- Provide technical assistance to the Secretariat to navigate government processes and develop the capacity of GoJ institutions to support the reform agendas;

- Enable the Secretariat to monitor and learn from the reform process, while creating a feedback mechanism to strengthen reforms;

- Develop a sustainability and independence plan for the Secretariat;

- Develop a strategy to integrate communications activities into the reform process;

- Produce communications materials and products supporting implementation of reforms.

C.10.3 Component/Result 2. Business Enabling Environment Strengthened

Strengthening the business enabling environment (BEE) in Jordan is crucial for expanding domestic businesses, attracting investments, and increasing employment. Joint priorities across the Renaissance Plan and the Five-Year Growth Matrix focus on economy-wide BEE interventions and those at the firm-level.

Some areas of focus on the BEE policy front include improving regulatory practices, reducing regulatory overlap, and enacting and implementing priority legislation. For firm-level interventions, supporting ease of business entry or formalization, incubation and acceleration of startups, increasing firm sophistication and appetite for innovation, and improving overall firm performance are all key points for engagement.

Sub-component/IR2.1 - Economy-wide competitiveness improved

Jordan’s competitiveness environment is constrained by the extensive and often opaque administrative requirements imposed by government agencies. The BEE environment needs reform that can directly affect business operations and the ability to invest, hire, and grow.

The IDIQ Contractor(s), through Task Orders, will support the GoJ to analyze, consult on, draft or revise, finalize, and implement reforms coupled with capacity building and training of the GoJ staff that will interact with the end user of those reforms.

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Where appropriate, the IDIQ Contractor(s), through Task Orders, will support the GoJ in carrying out targeted awareness campaigns on policy reforms. In the Renaissance Plan and the

Five-Year Growth Matrix, key policies for reform include but are not limited to the Competition

Law, Public Private Partnerships Law, Investment Law, Companies Law, Bankruptcy Law, and

Insolvency Law. Depending on political will and appetite, these may be critical to moving the business environment forward.

The IDIQ Contractor(s), through Task Orders, will provide technical assistance to the GoJ’s regulatory rationalization effort on a macro and sector specific level.

Regulatory rationalization (referred to as the “regulatory guillotine” in GoJ documents), including efforts to reduce the overall number of policies and regulations, deconflict overlapping regulations, and simplify existing policies, will be critical in easing unnecessary pressure on the private sector, decreasing corruption, and supporting growth.

The IDIQ Contractor(s), through Task Orders, will analyze Jordan’s performance in the components of the World Bank’s Doing Business Report and World Economic Forum’s Global

Competitiveness Index (GCI), and propose and deliver specific actions for priority reforms to improve Jordan’s ranking, to complement the key proposed reforms from the respective reform agendas. The IDIQ Contractor(s), through Task Orders, will propose direct implementation opportunities where appropriate.

The IDIQ Contractor(s), through Task Orders, will also enable direct implementation of specific policy reforms that focus on firm competitiveness or sector growth that are not covered in the above mentioned documents or international indicators, as driven from direct dialogue with the private sector, key business associations, and research think tanks.

Sub-component/IR 2.2 - Firm competitiveness promoted

Firm-level interventions will complement policy interventions to translate theory into practice.

The ultimate test of Jordan’s economic reform will be if firms emerge with a greater ability to compete with each other domestically and to successfully compete in markets abroad. Firm-level interventions will focus on enabling the growth of anchor firms (defined below).

While micro and small enterprises employ a majority of the Jordanian private sector and are fundamental to the economy, they largely are limited in their ability to serve as employment growth engines, and will not be the target beneficiaries for ERA.

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To complement the work of other USAID activities that will focus on micro, small, and medium enterprises, ERA will focus on assistance to anchor firms with the ability to scale operations.

Anchor firms are those private sector firms that deliver wide economic advantages as they act as hubs in supply chains, are more likely to be active in global trade and investment, and spend more on innovation through research and development. The IDIQ Contractors(s), through Task

Orders, will propose a method for recommending firms to receive direct assistance through ERA activities or referring them to alternative sources of support. The IDIQ Contractor(s), through

Task Orders, may propose assisting startups, but these must be those that have the potential to become anchor firms within the economy. The IDIQ Contractor(s) through Task Orders, will focus on firms that have scalable potential to increase employment, especially of women and youth, and exports and investment. Jordanian-owned firms will be a primary focus of interventions.

The IDIQ Contractor(s), through Task Orders, will invest resources in co-work planning on the issue of direct firm level assistance with any other USAID activity that will be operating in this space, as determined by USAID. They will be expected to develop a clear tracking system to make sure that USAID is coordinating efforts and beneficiaries are prevented from double-dipping across multiple donors and USAID activities.

Low enterprise sophistication along with associated limited innovation constrains the economy.

For innovation to occur, capital, institutions, and technological progress must creatively interact to induce economic growth. Since innovation, including research and development, can in many cases be easily replicated, economic agents have an incentive to free-ride.

This makes it difficult for innovators to capture adequate returns on investment in innovation and engage in the process of identifying the products or technologies in which the investment is worth the allocation of scarce resources. The IDIQ Contractor(s), through Task Orders, will assist the GoJ and private sector in creating an environment for the economic ecosystem to nurture innovation and address elements that constrain innovation.

The various business incentive schemes that exist in Jordan may distort the market unnecessarily and may inhibit growth. The IDIQ Contractor(s), through Task Orders, will analyze existing incentive schemes and recommend possible modernization efforts to undertake. Clear recommendations regarding which incentives should remain, those that should be phased out, and which new incentives should be considered by the GoJ will be included in the analysis.

Specific tasks under Component 2 will be further defined in Task Orders, as appropriate. They may involve, but are not limited to, the following tasks:

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- Support the GoJ to analyze, consult on, draft or revise, finalize, and implement reforms coupled with capacity building and training of GoJ staff interacting with the end user of those reforms

- Support the GoJ in targeted awareness campaigns on policy reforms

- Assist the GoJ in reforming at least four economy-wide policies. Those to be considered for revision include: Competition Law, Public Private Partnerships Law, Investment Law, Companies Law, Bankruptcy Law, and Insolvency Law

- Conduct a regulatory rationalization assessment, enumerating regulatory overlap and areas for consolidation

- Analyze regulatory issues within sectors to ensure regulatory rationalization enables greater trade and investment

- Analyze Jordan’s performance in the components of the World Bank’s Doing Business

Report and World Economic Forum’s GCI, and propose specific actions for priority reform to improve Jordan’s ranking

- Propose a method for identifying and recommending anchor firms for assistance

- Provide assistance to firms that have scalable potential to increase exports, investment, and employment, especially of women and youth

- Re-examine and update the existing Jordan Innovation Strategy and recommend an action plan for developing the innovation landscape, including possible actions for both the public and private sector

- Conduct an incentives scheme review and develop an action plan in consultation with relevant stakeholders and support the GoJ in modernization efforts

C.10.4 Component/Result 3. Export Development and Local, Regional, and International

Investment Promoted (Including Products, Services, and Markets)

Export development and investment attraction are heavily influenced by the BEE in Jordan.

While the IDIQ Contractor(s), through Task Orders, are implementing BEE and firm-level interventions, they will pursue export competitiveness and promotion enhancements along with investment facilitation and promotion activities, noting that component activities will have overlap and remain interdependent. The IDIQ Contractor(s), through Task Orders, will assist

Jordan in increasing investment and growing national exports.

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Sub-component/IR 3.1 - Export competitiveness and promotion enhanced

To achieve export growth, the IDIQ Contractor(s), through Task Orders, will assist the GoJ in establishing a lean, focused export agency, provisionally titled Jordan Export (JE) (JE, previously discussed as Enterprise Jordan but later launched as Jordan Export), which will lead and implement export growth services. As this entity is established, the IDIQ Contractor(s), through Task Orders, will provide support spanning entity design, governance, implementation, long-term sustainable financing, stakeholder coordination, marketing, and promotion.

Building on work already undertaken by USAID through other activities, the IDIQ Contractor(s), through Task Orders, will assist Jordan to expand and grow the economy through better utilization of existing free and preferential trade agreements, to include those of The United

States, The European Union, and others as they may be applicable. The IDIQ Contractor(s), through Task Orders, will provide technical assistance on trade facilitation measures, such as legal gap analysis, reviewing and expanding relevant international standards adherence among firms, relevant policy reform, and the development of a trade facilitation action plan.

The IDIQ Contractor(s), through Task Orders, will conduct a trade corridor assessment and develop an action plan to unlock identified corridor constraints.