Attachment Two RFP Amendment 1 strikethrough version.pdf

Solicitation Number: 72029422R00001

Issue Date: March 28, 2022

Proposals Due: May 3, 2022 – 16:00 Tel Aviv Time

Subject: Request for Proposal (RFP) for the Building Regional Economic Bridges (BREB)

Activity

Dear Potential Offerors:

The United States Agency for International Development (USAID), through its Mission in the

West Bank & Gaza (WBG) invites interested and qualified organizations to submit proposals in accordance with the requirements of this RFP. The selected Offeror will be required to provide technical assistance services to implement the Building Regional Economic Bridges (BREB)

Activity, as detailed in Section C of this RFP.

This procurement will be conducted utilizing competitive proposal procedures pursuant to Part

15 of the FAR. The North American Industry Classification System (NAICS) code for this opportunity is 5416, Management, Scientific, and Technical Consulting Services. The authorized geographic code for procurement of goods and services under the resulting contract is 937.

USAID/WBG anticipates awarding a Cost-Plus-Fixed-Fee (CPFF) completion-type contract as a result of this solicitation. The total estimated cost of the resulting contract will range from $85 to $90 million for a period of five years. USAID/WBG will select the proposal that offers the best value to the U.S. Government.

Questions and comments related to this RFP must be submitted electronically to the email address WBGBREB@usaid.gov no later than April 05 2022 16:00, Tel Aviv time using the following format for the email subject line: “RFP No. 72029422R00001, BREB Activity–

[Name of Organization] Questions/Comments”.

USAID will publicly post all responses as an amendment to this RFP. All amendments to this solicitation will be issued and posted on the SAM.GOV website. It is the Offeror’s responsibility to check the website periodically for official updates and amendments to the solicitation. It is the responsibility of the recipient of this RFP to ensure that it has been received from the internet in its entirety and USAID bears no responsibility for data errors resulting from transmission or conversion processes.

Offerors are encouraged to read the entire solicitation, which includes the closing date and time, all pertinent contract requirements, and the conditions and instructions required for submitting a proposal. Pursuant to Block 12 of Standard Form 33 of this RFP, USAID requires that offers remain valid through a period of 180 days.

Offerors are also instructed to pay careful attention to RFP Section K – “Representations, Certifications and Other Statements of Offerors.”

mailto:WBGBREB@usaid.gov

RFP No.: 72029422R00001 USAID WBG- BREB Activity

Offerors must comply with FAR 52.204-7, the System for Award Management (SAM), by registering and completing the annual representations and certifications electronically at https://www.sam.gov/portal/public/SAM/. No award may be made to an Offeror who is not registered and active in SAM.

Proposals must be submitted in accordance with the instructions listed in Section L of this RFP.

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

Issuance of this RFP does not in any way obligate USAID to award a contract, nor does it commit

USAID to pay any costs incurred in the preparation and submission of a proposal. Furthermore, USAID reserves the right to reject any and all proposals, if such action is considered to be in the best interest of the U.S. Government.

Thank you for your interest in USAID/WBG programs.

Sincerely, /S/

Daniel Harter

Contracting Officer http://www.sam.gov/portal/public/SAM/ http://www.sam.gov/portal/public/SAM/

RFP No.: XXXXX USAID WBG - BREB Activity

List of Acronyms

AMELP - Activity Monitoring, Evaluation and Learning Plan

AWP - Annual work plans

BREB- Building Regional Economic Bridges Activity

COP - Chief of Party

COR - Contracting Officer Representative

CPARS- Contractor Performance Assessment Reporting Systems

CPFF - Cost-Plus-Fixed-Fee

DDL- Development Data Library

DFC - Development Finance Corporation

FAR - Federal Acquisition Regulation

GDP - Gross Domestic Product

GUC - Grants under Contract

IR - Intermediate Result

KaMP - Knowledge Management Portal

M&E - Monitoring and Evaluation

MEPPA - Middle East Partnership for Peace Act

MEL - Monitoring, Evaluation, and Learning

NAICS - North American Industry Classification System

NGO - Non-Governmental Organization

PMP - Performance Management Plan

RFP - Request for Proposal

SAM - System for Award Management

SBA - Small Business Administration

R&D - Research and Development

SOW - Scope of Work

USAID - United States Agency for International Development

U.S. - United States

USG - United States Government

WBG - West Bank and Gaza

Contents List of Acronyms 2

PART I - THE SCHEDULE 8

SECTION B - SUPPLIES OR SERVICES AND PRICE/COSTS 8

B.1 PURPOSE 8

B.2 CONTRACT TYPE AND SERVICES 8

B.3 TOTAL ESTIMATED COST, FIXED FEE, AND OBLIGATED AMOUNT 8

B.4 CONTRACT LINE ITEMS 8

B.5 COST REIMBURSABLE 9

B.6 INDIRECT COSTS 9

B.7 FIXED FEE CEILING AND PAYMENT 9

SECTION C - DESCRIPTION/SPECIFICATIONS/STATEMENT OF WORK 11

C.1 TITLE 11

C.2 OVERVIEW 11

C.3 BACKGROUND 11

C.4 STATEMENT OF WORK 13

C.5 GUIDING PRINCIPLES 19

SECTION D - PACKAGING AND MARKING 24

D.1 AIDAR 752.7009 MARKING (JAN 1993) 24

D.2 BRANDING AND MARKING POLICY 24

D.3 BRANDING STRATEGY 24

D.4 APPROVAL OF COMMUNICATION STRATEGY & BRANDING IMPLEMENTATION PLAN25

SECTION E - INSPECTION AND ACCEPTANCE 26

E.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE 26

E.2 INSPECTION AND ACCEPTANCE/RESPONSIBLE OFFICIAL 26

SECTION F - DELIVERIES OR PERFORMANCE 27

F.1. NOTICE LISTING Contract CLAUSES INCORPORATED BY REFERENCE 27

F.2. PERIOD OF PERFORMANCE 27

F.3. PLACE OF PERFORMANCE 27

F.4. AUTHORIZED WORK WEEK 27

F.5. KEY PERSONNEL 27

F.6 PERFORMANCE STANDARDS 30

F.7. REPORTS 31

F.8 MINIMUM PROGRAM DELIVERABLES 40

SECTION G - CONTRACT ADMINISTRATION DATA 43

G.1 AIDAR 752.7003 DOCUMENTATION FOR PAYMENT (NOV 1998) 43

G.2 CONTRACTING OFFICER’S AUTHORITY 44

G.3 ADMINISTRATIVE CONTRACTING OFFICE 44

G.4 CONTRACTING OFFICER’S REPRESENTATIVE (COR) 44

G.5 PAYING OFFICE 44

G.6 CONTRACTOR’S PRIMARY POINT OF CONTACT 45

G.7 CONTRACTOR'S PAYMENT ADDRESS 45

G.8 ACCOUNTING AND APPROPRIATION DATA 45

G.9 TECHNICAL DIRECTION/RELATIONSHIP WITH USAID 45

SECTION H - SPECIAL CONTRACT REQUIREMENTS 48

H.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE 48

H.2 AUTHORIZED GEOGRAPHIC CODE 48

H.3 752.228-70 Medical Evacuation (MEDEVAC) Services (JUL 2007) 48

H.4 ELECTRONIC PAYMENTS SYSTEM 49

H.5 SUBMISSION OF DATASETS TO THE DEVELOPMENT DATA LIBRARY (DDL) (OCT 2014)50

H.6 GRANTS UNDER CONTRACTS (GUCs) 51

H.7 FOREIGN GOVERNMENT DELEGATIONS TO INTERNATIONAL CONFERENCES 51

H.8 ENVIRONMENTAL COMPLIANCE AND MANAGEMENT 52

H.9 RELOCATION OF U.S. BUSINESSES, ASSISTANCE TO EXPORT PROCESSING ZONES,

INTERNATIONALLY RECOGNIZED WORKERS' RIGHTS (JAN 1994) (AIDAR 726.7102 PD 20

provision) 53

H.10 PRESS AND PRESS RELATIONS 54

H.11 PROHIBITION ON ASSISTANCE TO DRUG TRAFFICKING 54

H.12 GOVERNMENT FURNISHED FACILITIES OR PROPERTY 54

H.13 LIMITATION ON ACQUISITION OF INFORMATION TECHNOLOGY (DEVIATION NOs.

M/OAA-DEV-FAR-20-3c and M/OAA-DEV-AIDAR-20-2c) (APRIL 2020) 54

H.14 RESTRICTIONS AGAINST DISCLOSURE (MAY 2016) 55

H.15 752.211-70 - LANGUAGE and Measurement (JUN 1992) 56

H.16 USAID-FINANCED THIRD-PARTY WEB SITES (NOVEMBER 2017) 56

H.17 AIDAR 752.222-70 USAID DISABILITY POLICY – ACQUISITION (DEC 2004) 57

H.18 752.228-7 INSURANCE-LIABILITY TO THIRD PERSONS - JUL 1997 58

H.19 USAID/WEST BANK AND GAZA MISSION ORDER NO. 21 58

H.20 USAID/WEST BANK AND GAZA MISSION NOTICES 58

H.21 USAID/WEST BANK AND GAZA AUDIT PROGRAM (ACA) 59

H.22 Prohibition against Support for Terrorism 59

H.23 RESTRICTION ON FACILITY NAMES 61

H.24 Value Added Tax (VAT) and Customs Duties 61

H.25. SUBCONTRACTING WITH GOVERNMENT OR QUASI-GOVERNMENT ENTITIES 64

H.26. PROHIBITION AGAINST CASH ASSISTANCE TO THE PALESTINIAN AUTHORITY 64

H.27. CHOICE OF LAW 65

H.28. PROHIBITION ON ASSISTANCE TO THE PALESTINIAN BROADCASTING

CORPORATION 65

H.29. REPORTING OF FOREIGN TAXES 65

H.30. CAPITAL ASSISTANCE (611e REQUIREMENTS) 66

H.31. USAID/West Bank and Gaza Mission Order 21 Compliance Reviews 66

H.32. DEVELOPMENT INFORMATION SYSTEM (DIS) 67

PART II - CONTRACT CLAUSES 68

SECTION I – CONTRACT CLAUSES 68

I.1 52.252-2 CLAUSES INCORPORATED BY REFERENCE (FEB 1998) 68

I.2 752.252-1 AIDAR CLAUSES INCORPORATED BY REFERENCE (MAR 2015) 68

I.3 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE 68

I.4 52.203-19 PROHIBITION ON REQUIRING CERTAIN INTERNAL CONFIDENTIALITY

AGREEMENTS OR STATEMENTS (JAN 2017) 72

I.5 52.204-21 BASIC SAFEGUARDING OF COVERED CONTRACTOR INFORMATION

SYSTEMS (NOV 2021) 73

I.6 FAR 52.223-99 ENSURING ADEQUATE COVID-19 SAFETY PROTOCOLS FOR FEDERAL

CONTRACTORS (OCT 2021) (DEVIATION #M/OAA-DEV-FAR-22-01c) 75

I.7 752.229-71 REPORTING OF FOREIGN TAXES (JULY 2007) 76

I.8 AIDAR 752.7003 DOCUMENTATION FOR PAYMENT (NOV 1998) 77

I.9 AIDAR 752.7007 PERSONNEL COMPENSATION - JULY 2007 78

I.10 AIDAR 752.7036 USAID Implementing Partner Notices (IPN) Portal for Acquisition (July 2014) 78

PART III - LIST OF DOCUMENTS, EXHIBITS AND OTHER ATTACHMENTS 80

SECTION J - LIST OF ATTACHMENTS 80

ATTACHMENT J-1: Approved Subcontracting Plan 80

ATTACHMENT J-2: Contractor and Major Subcontractor Policy for Workday, Workweek, And Paid

Absences 80

ATTACHMENT J-3: Small Business Subcontracting Plan Template 80

ATTACHMENT J-4: Past Performance Report 80

ATTACHMENT J-5: Contractor Employee Biographical Data Sheet Form AID 1420-17 80

ATTACHMENT J-6: Mission Order 21 80

ATTACHMENT J-7: Budget Template 80

ATTACHMENT J-8: Disclosure of Lobbying Activities (SF-LLL) 80

ATTACHMENT J-9: Initial Environmental Analysis (IEE) 80

PART IV - REPRESENTATIONS AND INSTRUCTIONS 81

SECTION K - REPRESENTATIONS, CERTIFICATIONS, AND OTHER STATEMENTS OF

OFFERORS 81

K.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE 81

K.2 52.204-3 TAXPAYER IDENTIFICATION (OCT 1998) 81

K.3 52.204-8 ANNUAL REPRESENTATIONS AND CERTIFICATIONS (JAN 2022) 82

K.452.204-24 REPRESENTATION REGARDING CERTAIN TELECOMMUNICATIONS AND VIDEO

SURVEILLANCE SERVICES OR EQUIPMENT (NOV 2021) 87

K.5 52.204-26 COVERED TELECOMMUNICATIONS EQUIPMENT OR SERVICES-

REPRESENTATION (OCT 2020) 90

K.6 52.209-2 Prohibition on Contracting with Inverted Domestic Corporations-Representation (Nov

2015) 90

K.7 52.209-5 CERTIFICATION REGARDING RESPONSIBILITY MATTERS (AUG 2020) 91

K.8 52.209-7 INFORMATION REGARDING RESPONSIBILITY MATTERS (OCT 2018) 93

K.9 52.209-11 REPRESENTATION BY CORPORATIONS REGARDING DELINQUENT TAX

LIABILITY OR A FELONY CONVICTION UNDER ANY FEDERAL LAW (FEB 2016) 94

K.10 52.209-12 CERTIFICATION REGARDING TAX MATTERS (OCT 2020) 95

K.1152.209-13 VIOLATION OF ARMS CONTROL TREATIES OR AGREEMENTS-CERTIFICATION

(NOV 2021) 95

K.12 52.222-22 PREVIOUS CONTRACTS AND COMPLIANCE REPORTS (FEB 1999) 97

K.13 52.222-25 AFFIRMATIVE ACTION COMPLIANCE (APR 1984) 98

K.14 52.227-15 REPRESENTATION OF LIMITED RIGHTS DATA AND RESTRICTED COMPUTER

SOFTWARE (DEC 2007) 98

K.15 Cost Accounting Standards Notices and Certification (Jun 2020) 99

K.16 52.230-1 Cost Accounting Standards Notices and Certification (Jun 2020) 101

Section L- INSTRUCTIONS, CONDITIONS, AND NOTICES TO OFFERORS 105

L.1 52.252-1 SOLICITATION PROVISIONS INCORPORATED BY REFERENCE (FEB 1998) 105

L.2 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE 105

L.3 52.216-1 TYPE OF CONTRACT (APR 1984) 106

L.4 SERVICE OF PROTEST (SEP 2006) 106

L.5 GENERAL INSTRUCTIONS TO OFFERORS 106

L.6 DELIVERY INSTRUCTIONS 108

L.7 INSTRUCTIONS FOR THE PREPARATION OF THE TECHNICAL PROPOSAL 109

L.8 INSTRUCTIONS FOR THE PREPARATION OF THE COST PROPOSAL 114

L.9 INSTRUCTIONS FOR THE PREPARATION OF BRANDING 124

L.10 Waivers under FAR Part 4.2101 Prohibition On Covered Telecommunications And Video

Surveillance Services and Equipment (December 2021) 126

M.1 GENERAL INFORMATION 128

M.2 DETERMINATION OF COMPETITIVE RANGE 128

M.3 TECHNICAL EVALUATION CRITERIA 129

M.4 PRICE/COST EVALUATION 131

M.5 SOURCE SELECTION 131

PART I - THE SCHEDULE

SECTION B - SUPPLIES OR SERVICES AND PRICE/COSTS

B.1 PURPOSE

The purpose of this contract is to implement the Building Regional Economic Bridges (BREB) activity to promote peace between the WBG and Israel through expanded economic, commercial, and applied research partnerships/alliances between the WBG, Israel, and the U.S.

B.2 CONTRACT TYPE AND SERVICES

This is a Cost-Plus-Fixed-Fee (CPFF) Completion contract. For consideration set forth below, the contractor must provide the deliverables or outputs described in Sections C and F in accordance with the performance standards specified in Section F. The Contractor must also comply with all other contract requirements.

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

(a) The estimated cost for the performance of the work required under CLIN 0001, exclusive of fixed fee, if any, is $TBD. The fixed fee, if any, is $TBD. The estimated cost-plus fixed fee, if any, is $TBD.

(b) Within the estimated cost-plus fixed fee (if any) specified in paragraph (a), 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 $TBD. The Contractor shall not exceed the aforesaid obligated amount.

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

B.4 CONTRACT LINE ITEMS

CLIN Supplies/Services (Description) Total ($)

0001 All Program Cost TBD

Fixed Fee TBD

CLIN 0001 Total Estimated Cost-Plus Fixed Fee: TBD

B.5 COST REIMBURSABLE

The U.S. dollar costs allowable shall be limited to reasonable, allocable and necessary costs determined in accordance with FAR 52.216-7, Allowable Cost and Payment, FAR 52.216-8, Fixed

Fee, if applicable, FAR 52.232-20, Limitation of Cost, FAR 52.232-22, Limitation of Funds and

AIDAR 752.7003, Documentation for Payment.

B.6 INDIRECT COSTS

Pending establishment of revised provisional or final indirect cost rates, allowable indirect costs must be reimbursed on the basis of the following negotiated provisional or predetermined rates and the appropriate bases.

Description Rate Base Type Period

TBD TBD TBD TBD TBD

Base of Application: TBD

Type of Rate: TBD

Period: TBD

Source: TBD

NOTE: Insert additional indirect rates as needed for the prime above.

The Contractor is allowed to recoup indirect costs (OH, G&A, etc.) as Other Direct Costs (ODC) if it is part of the contractor’s usual accounting procedures, consistent with FAR Part 31 and the contractor's Negotiated Indirect Cost Rate Agreement (NICRA).

B.7 FIXED FEE CEILING AND PAYMENT

(a) Fixed Fee under this Contract is [TBD].

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.

(b) Payment of Fixed Fee: Pursuant to FAR 16.306(d) “Cost-Plus-Fixed-Fee Contracts”, a percentage (60%) of the payment of the fixed fee under this contract is tied to the completion of the deliverables described in Section C and F.8 of this contract and in accordance with the approved

Fee Schedule. The schedule may be adjusted during the administration of the contract, through modification, if deemed necessary to meet changing conditions. Any change to the value or percentage of fee listed in Section F.8 must be made by the cognizant Contracting Officer.

Upon successful completion of a deliverable/result, the Contractor must provide evidence, or

“means of verification”, of its achievement to the Contracting Officer’s Representative (COR) and the Contracting Officer (CO). Upon COR receipt and written acceptance of a deliverable, the

Contractor must submit an invoice for the amount of the associated fee including evidence of completion of the deliverables for which fee is claimed.

Payment of the remaining (40%) of fixed fee, subject to the terms stated in FAR 52.216‐8, may be made upon receipt of a proper invoice. Subject to FAR 52.216‐8, Fixed Fee, payment of fixed fee shall be allocated based upon the proportion of the invoiced amount in the period covered by the invoice to the total estimated cost of the periods of the contract not including fixed fee.

In the event of discontinuance of the work in accordance with the clause of the contract entitled

“Termination (Cost Reimbursement)” (FAR 52.249-6), the fee must be re-determined by mutual agreement equitably to reflect the reduction in the work actually performed. The amount by which such fee is less than, or exceeds, payments previously made on account of the fee must be paid to, or repaid by the Contractor, as applicable.

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

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 exceed percent (Offeror proposes ceiling percentage) of the GUC cost.

END OF SECTION B

SECTION C - DESCRIPTION/SPECIFICATIONS/STATEMENT OF WORK

C.1 TITLE

Building Regional Economic Bridges (BREB) Activity

C.2 OVERVIEW

The United States Agency for International Development/ West Bank and Gaza (USAID/ WBG) intends to award a 60-month activity that aims to promote peace between the West Bank and Gaza

(WBG) and Israel through expanded economic and research partnerships/alliances with the WBG, Israel, and the U.S. The activity will also support expanded trade opportunities for Palestinians across the Middle East and North Africa region.

C.3 BACKGROUND

C.3.a. Nita M. Lowey Middle East Partnership for Peace Act (MEPPA)

In 2020, through MEPPA, Congress authorized $250 million of funding over five years for its implementation. The Legislation sets forth two tracks: (1) the People-to-People Partnership for

Peace Fund, implemented by USAID, which will provide funding to qualified organizations that help build the foundation for peaceful co-existence between Israelis and Palestinians for a sustainable two-state solution; and (2) the Joint Investment for Peace Initiative, implemented by the U.S. International Development Finance Corporation (DFC), which will provide investments in, and support to, entities that contribute to the development of the Palestinian private sector economy in the WBG.

Substantial empirical evidence supports the proposition that increasing cross border economic flows, measured in both trade and capital movement, decreases the probability of conflict. Joint economic activity increases the cost of conflict for both sides. While there is currently a large amount of trade, the WBG are not receiving significant capital flows or participating in meaningful knowledge exchange with Israel.

Partnerships/alliances based around commercial relationships and applied research have the potential to stabilize the region and provide the foundations for peaceful co-existence. These partnerships should promote greater understanding, mutual trust and interest, economic benefits, and cooperation between communities. Aligning economic incentives will create sustainable partnerships and bonds between Israelis and Palestinians. Economic development supports stabilization by empowering entrepreneurs, growing the middle class, and mitigating unemployment.

C.3.b Socio-Economic Background

The Palestinian economy in the WBG is small and fragmented. Since the signing of the Oslo

Accord in 1993, the economy of the WBG struggled through more than two decades of war, conflict, and failed peacemaking attempts.

Throughout that time, the economy of the WBG, which continue to be heavily influenced by Israeli security controls and restrictions, moved erratically from periods of rapid expansion and rising employment to periods of slow growth, rising joblessness, and high inflation, with average GDP growth since 1994 offset by an equivalent growth in population. Consequently, Gaza is poorer today than it was in 1994. According to the Palestinian Central Bureau of Statistics (PCBS), the unemployment rate reached 27.3 percent in the WBG in quarter 3 of 2021. Youth unemployment stands at over 40 percent and the rate of unemployment for Palestinian youth with tertiary education is over 63 percent. Private sector growth is limited by extremely low levels of private investment, primarily stemming from numerous constraints on movement, access, and trade, both within the WBG and internationally. To achieve larger political and development goals, strong and consistent economic growth needs to occur in the WBG. Private sector investment and entrepreneurship are critical elements of this growth.

C.3.c. Linkages to Mission Strategy and U.S. Government (USG)

A competitive Palestinian private sector is essential to the USG objective of reaching a peaceful resolution to the conflict between Israelis and Palestinians. USAID’s efforts to develop the economy of the WBG demonstrate the commitment of the USG to providing assistance that helps to improve the lives of Palestinians and contributes to building a more democratic, economically viable, stable, and secure region.

BREB falls under Development Objective (DO) 2 (“Economic Growth and Infrastructure”) of the

USAID/WBG Results Framework and contributes directly to Intermediate Results (IR) 2.2

(“Increased competitiveness of targeted sectors”) and IR 2.3 (“Improved business and investment enabling environment”) of the Mission’s Economic Growth Project (EGP). To the extent that

BREB interventions facilitate reforms that reduce barriers to trade, movement, and access, the activity also reinforces IR 2.1 (“Reduced barriers to trade and improved movement and access for people and goods”).

In addition, the activity will reinforce IR 1.3 “Increased constituency for peace among Israelis and

Palestinians” under DO1 “Improved Governance and Civic Engagement” and IR 3.1 “Improved student outcomes” under DO3 “Empowered Next Generation of Palestinians”.

BREB will also support the USAID’s Private Sector Engagement Policy by seeking market-based solutions for great sustainability, mobilizing private capital, and increasing collaboration of private sector partners.

C.3.d. Coordination with other USAID, USG, and Donors Activities

Donors active in economic development in the WBG include the European Union, the World Bank, the United Kingdom, Canada, France, and Germany. BREB will build on regular donor discussions relating to Small and Medium Enterprises (SME), and the Mission will coordinate activities with other donors and stakeholders to avoid duplication and encourage strategic investments. The

Mission will also coordinate with the USAID/Jordan and other USAID Missions in the Middle East and North Africa region to leverage activities and enhance trade between countries in the region.

Extensive coordination should take place between BREB and DFC. In addition, BREB will work closely with international financial institutions, such as the European Bank for Reconstruction and

Development (EBRD) and the International Finance Corporation (IFC), to secure financing for some of the assisted firms that DFC cannot support. The Department of Commerce’s Foreign

Commercial Service, the State Department, and the Middle East Regional Cooperation (MERC) will be other key partners within the USG. Coordination is also expected to take place with the

USAID/WBG’s Small and Medium Assistance for recovery and Transition (SMART) program and other MEPPA activities. BREB will also work with USAID/WBG staff to identify and target youth and entrepreneurs.

C.4 STATEMENT OF WORK

The goal of BREB is to promote peace between the WBG and Israel through expanded economic, commercial, and applied research partnerships/alliances between the WBG, Israel, and the U.S.

Theory of Change:

If USAID fosters greater economic collaboration between Israelis and Palestinians, enhancing their respective economic development and regional and global economic integration, then this will stimulate economic growth in the WBG and create additional cross-border linkages, resulting in a more conducive environment for peace between Israelis and Palestinians.

Objectives/Components:

BREB will have three main objectives/components as follows:

Objective/Component 1: Facilitate Cooperative Exchange and Knowledge Sharing

Objective/Component 2: Foster New Markets

Objective/Component 3: Enhance the Capacity of Targeted Entities

At a minimum, BREB will achieve the following main outcomes/results:

- Economic relationships at the regional level are strengthened through a $350 million increase in exports by BREB assisted firms over five years.

- Enhance cooperative technological exchanges, and knowledge sharing between the WBG, Israel, other regional economies, and/or the U.S., defined by 75 partnerships/alliances.

- Create new market connections between Israeli and Palestinian companies, with at least 75

Palestinian businesses exporting into new markets.

- Develop a $50 million pipeline of projects that meet the requirements for DFC’s potential investment in the WBG.

Description of Objectives/Components:

The BREB activity will promote joint initiatives that expand regional economic activity and cooperation. Potential joint initiatives could involve firms, research institutes, trade organizations, non-profit organizations, and individuals.

The purpose of these initiatives will be to deepen economic linkages, building the foundations of peace. Activity interventions will be market driven and cost-shared with local counterparts.

BREB’s Expected Results

• Strengthened regional economic relationships through a $350 million increase in exports by

BREB assisted firms over five years; and

• Enhance commercial technological exchanges, and knowledge sharing between the WBG, Israel, other regional companies, and/or the U.S., defined by 75 partnerships/alliances.

• Five new national level markets opened to businesses.1

• Five research partnerships/alliances established among Palestinian and Israeli and/or U.S.

institutions: and

• Business associations develop or improve 10 services to support cross-border exchanges.

• 1,500 Palestinian graduates receive internships with at least 10 Israeli or other international firms; and

• Firms and universities establish 25 recurring exchange programs.

• 50 businesses or joint ventures export to new national level markets over a prolonged period of time.

• Report on barriers to regional partnerships/alliances and present USAID with an action plan of mitigating those barriers; and

• 25 Palestinian firms increase profitability and regional and global linkages.

• Develop a $50 million pipeline of projects that meet the technical requirements for DFC’s potential investment in the WBG;

• Assist a minimum of 50 firms to meet the technical requirements for DFC or other finance institution support; and

• Assist a minimum of 10 firms with aftercare services after reaching financial close with DFC or other finance institution support.

BREB’s Objectives/Components are described as follows:

Objective/Component 1: Facilitate Cooperative Exchange and Knowledge Sharing

Sub-Objective/Component 1.1: Support Technology Transfer from Israel and United States to

West Bank and Gaza

Israel’s position as a technology leader in multiple sectors means it is well placed to build lasting and mutually beneficial partnerships/alliances with Palestinian companies. Israel was previously the beneficiary of such technological exchange with the U.S. BREB would utilize and expand on this model throughout implementation.

Under this component of work, the Contractor must promote domestic and foreign investment in

Palestinian firms and take advantage of Israeli’s innovation and technology in productive sectors, including, but not limited to, ICT, agriculture, manufacturing, water, energy, green technologies, and technologies and services for circular economy processes. Palestinian firms will benefit from transfer technologies and expertise, resulting in increased efficiency and productivity. These

1 For the purpose of this document, the term “businesses” refers to Palestinian firms, or joint Israeli/U.S. and Palestinian ventures.

advancements will, in turn, drive increased profitability and employment.

Israeli firms will not only benefit financially from this technological exchange, but such partnerships can open new regional trade opportunities for both Israelis and Palestinians. U.S.

firms have a similar ability to transfer technology and know-how to Palestinian firms. Firms will be selected based on their potential for growth and ability to enter new markets. The Contractor must initially leverage the U.S. transfer of innovations and technologies directly to Palestinian firms, in order to place them on a more equal level with Israeli firms. This will bring competition and interest from Israeli firms to collaborate with Palestinian companies.

The Contractor must support technology transfer, either through direct technology purchases, joint ventures, licensing agreements, or other methods. The Contractor must provide technology transfers that have positive environmental impacts which could include efficient water use, reduced energy consumption and green energy.

The Contractor must maximize efforts to facilitate greater private capital investments into the

WBG, in addition to DFC and other commercial financing. This will stimulate autonomous and productive growth. Pairing grant funding with private capital inflows can ensure funding from

BREB acts as catalytic capital to attract private funding. BREB funding can serve to mitigate the risks associated with private investment opportunities, creating a multiplier effect and increasing overall investments to Palestinian firms.

The Contractor must utilize a Grants Under Contract (GUC) mechanism to help fund activities under this sub-component.

Activities:

• Finance licensing and cross-licensing agreements between Palestinian, Israel and/or US companies.

• Finance the purchasing of existing technology from Israeli and/or U.S. companies; and

• Promote the adoption of Research and Development (R&D) agreements among Palestinian and Israel and/or U.S. companies.

• [TBD - See Section L]

Expected Results

● Strengthened regional economic relationships through a $350 million increase in exports by BREB assisted firms over five years; and

● Enhance commercial technological exchanges, and knowledge sharing between the WBG, Israel, other regional companies, and/or the U.S., defined by 75 partnerships/alliances.

Sub-Objective/Component 1.2: Partnerships on Research and Development and Business

Associations

Research institutions play an important role in scientific and technological development. These same institutions play a role in disseminating this research to a wider audience and development of commercial applications. Bringing together Israeli, Palestinian, U.S., and/or regional research institutions can help identify research opportunities. They can develop solutions tailored to the specific country context and explore opportunities to increase women’s participation in the economy.

Business associations play an important role in supporting cross border trade and cooperation.

These associations advocate for policy and regulatory change. They also serve as training and service providers that can enable cross border trade and cooperation.

The Contractor must support, through partner identification, technical expertise, training, and financing, enhanced collaboration of businesses associations and joint Israeli, Palestinian, and/or regional business associations, with a focus on youth and women’s business networks and associations. These associations will support and advocate for ease of movement between Israel and the WBG.

The Contractor must support, through partner identification, technical expertise, training, and financing, enhanced collaboration of research institutions at all levels for work. The Contractor must utilize a GUC mechanism to help fund scholarships and partnerships/alliances under this sub-component.

• Establish research partnerships/alliances on applied research and experimental development among Palestinian and Israeli and/or U.S. institutions; and

• Develop and/or expand student and faculty exchange programs.

● Five research partnerships/alliances established among Palestinian and Israeli and/or U.S.

institutions: and

● Business associations develop or improve 10 services to support cross-border exchanges.

Sub-Objective/Component 1.3: Strengthen Internship and Professional

Development/Mentorship Programs

Developing professional connections between the Palestinian businesspersons and entrepreneurs and their Israeli and/or U.S. counterparts can foster long-term business relationships. These relationships can be especially impactful when geared toward Palestinian youth. They provide the youth with valuable skills and connections, while also expanding the pool of educated labor for

Israeli and U.S. companies.

The Contractor must develop an internship program with established companies in Israel and the

U.S., that allow Palestinians to benefit from on-the-job training. These experiences allow individuals to develop practical skills and build an employment history. In addition, it will allow

Palestinians to establish connections with individuals and companies in their field. Israeli and U.S.

firms will also benefit from valuable new talent. These internships will allow employees of the firms to see how Palestinians can be brought into their company and create value.

The Contractor must develop a professional development and mentorship plan that establishes a program through which Palestinian entrepreneurs can learn from established entrepreneurs in

Israel and the US. Established entrepreneurs will share their knowledge, skills, and experience, rather than having others learn through a process of trial and error. They will benefit from exposure to new viewpoints and perspectives.

The Contractor must ensure that the professional development and mentorship intervention is implemented based on practical needs of the Palestinian private sector, and design it in such a way to prevent increased brain drain from the Palestinian workforce.

The Contractor must support people-to-people economic exchanges (e.g., academic exchanges, research collaboration, mentorship programs) to enhance mutual understanding and cooperation.

The Contractor must, where appropriate, strengthen existing programs and develop new activities that will facilitate these interactions, with a focus on inclusion and integrating women, youth, and persons with disabilities.

• Support and development exchanges between Israeli and/or U.S. companies and

Palestinian Universities, emphasizing the participation of youth, women-led, and marginalized companies or employees; and

• Support and develop internship programs for current and recent Palestinian University students and graduates

● 1,500 Palestinian graduates receive internships with at least 10 Israeli or other international firms; and

● Firms and universities establish 25 recurring exchange programs.

Objective/Component 2: Foster New Markets

Israeli and Palestinian companies have the potential to jointly enter new global markets that might not be available to them individually. Palestinians have unique business connections to markets that are legally accessible to Israeli companies, but still with limited Israeli trade. Israel has the infrastructure to get goods to market. Working together to enter new markets will provide benefits for both sides.

Sub-Objective/Component 2.1 Increase Access to Regional and International Markets

The Contractor must support new market connections between Israeli and Palestinian companies, regionally and internationally. These market connections will build trust between buyers and sellers in the region through information sharing and joint events.

The Contractor must identify new markets, regionally and internationally. The Contractor must support Palestinian businesses, including youth, women-led and marginalized businesses, to market their products to these markets. The Contractor may utilize a GUC mechanism to support this sub-component.

• Conduct export market studies and action plans which are periodically updated; and

• Support product displays, showrooms, trade fairs, and many other virtual platforms.

● Five new markets opened to businesses.1

Sub-Objective/Component 2.2 Export Support Services

Exporting presents businesses with a host of new challenges. These include compiling customs and border requirements, managing logistics, meeting quality standards, dealing with local legal requirements, and many more. Even with a market and buyer identified, experienced firms can have trouble exporting their product.

The Contractor must develop and implement a program to train businesses and equip them with the skills to export to new markets. Within six months of contract award, the Contractor must develop and submit to USAID an Export Services Support Plan for this program.

1 For the purpose of this document, the term “businesses” refers to Palestinian firms, or joint Israeli/U.S. and Palestinian ventures.

The program must include supporting first time exports, as well as expanding and continuing to support firms that have exported previously. The Contractor may utilize a GUC mechanism to support this sub-component.

• Strengthen exports to service providers by establishing additional services, including insurance and logistics; and

• Expand and augment existing export toolkits to support new products and markets.

● 50 businesses or joint ventures export to a new market over a prolonged period of time.

Objective/Component 3: Support Capacity Development of Entities to Enable Cooperative

Exchanges

Businesses, organizations, and other entities that could engage in peace building through cooperative activities lack the capacity to take full advantage of exchange opportunities. This lack of capacity could be a result of a number of different factors, including financial, market access, product development among others. Component 3 provides a set of interventions focused on developing the capacity of these entities.

Sub-Objective/Component 3.1: Firm level assistance to achieve sustainability partnership

Establishing and maintaining partnerships/alliances with Israeli or U.S. companies requires a high level of technical sophistication. There are several Palestinian and Israeli firms that, with some additional support, could achieve that level of technical capability.

The Contractor must analyze barriers to cooperative exchanges and provide direct firm-level assistance to companies to build their internal capacity. Every six months, the Contractor must report to USAID on these barriers with a Sustainable Partnership Action Plan in order to facilitate regional partnerships/alliances.

• Diagnostic on firm-level barriers for Palestinian and Israeli businesses to form partnerships/alliances; and

• Capacity development to improve Palestinian competitiveness within regional and global markets.

● Report on barriers to regional partnerships/alliances and present USAID with an action plan of mitigating those barriers; and

● 25 Palestinian firms increase profitability and regional and global linkages.

Sub-Objective/Component 3.2: Develop a pipeline of bankable projects to support the DFC

The Joint Investment for Peace Initiative part of MEPPA envisions DFC support to Palestinian and

Israeli ventures. The Joint Investment for Peace Initiative aims to attract private investment that promotes Palestinian economic development, increases economic cooperation between

Palestinians and Israelis, as well as between Palestinians and American businesses, and contributes to the greater integration of the Palestinian economy into the international, rules-based business system.

Within three months of the award, the Contractor must develop a Firm Identification Action Plan for identifying potential Palestinian firms and provide technical assistance to those firms during their application process. For sustainable impact, the Contractor must also provide aftercare services for businesses that receive financing from DFC or other sources.

• Identify companies that can benefit from the Joint Investment for Peace Initiative;

• Provide technical assistance to support companies’ applications; and

• Identify alternative or additional financing sources for Palestinian businesses, either other donors or financial institutions.

● Develop a $50 million pipeline of projects that meet the technical requirements for DFC’s potential investment in the WBG;

● Assist a minimum of 50 firms to meet the technical requirements for DFC or other finance institution support; and

● Assist a minimum of 10 firms with aftercare services after reaching financial close with

DFC or other finance institution support.

C.5 GUIDING PRINCIPLES

The guiding principles listed below must be integrated as part of the learning agenda and the

Activity Monitoring, Evaluation, and Learning Plan (AMELP), and is expected to be tracked through performance and context data as well as other information such as narrative or geospatial formats.

A. Stakeholder involvement and capacity building

The Contractor must coordinate with all stakeholders to optimize planning and implementation of

BREB activities. Project activities will be identified through consultations with relevant stakeholders, including representatives of USAID/WBG Mission. Upon awarding this contract, USAID may choose to set up an advisory board to provide strategic advice on BREB activities.

B. Adaptive Management

Given the long and complex history of Palestinian-Israeli relations and the speed with which conditions can change, adaptive management and flexibility are keys to the success of this activity.

The Contractor must complete a Political Economy Analysis within the first 30 60 days of the award. The PEA must be used to inform the implementation approach. The USAID/WBG Mission will monitor and manage this contract closely, including through joint work planning with other activities, portfolio reviews, evaluations, and other monitoring measures. Findings and lessons-learned from the continued monitoring of the award would inform the development and adjustment of work plans and implementation approaches to ensure the achievement of results. Every six months after the first year, the Contractor must conduct pause and reflect sessions with USAID and others to inform these adjustments.

C. Gender Equality and Female Empowerment

Gender equality and women’s empowerment are fundamental human rights elements and are key to achieving effective and sustainable development outcomes. Women’s economic equality exists when all women and girls have the same opportunities as men and boys for education, economic participation, decision-making, and freedom from violence. In trade, this requires collectively addressing barriers to commercial activity and labor market participation, such as cultural norms;

lack of trade-related capacity; infrastructure and technology challenges; unequal access to distribution networks; and trade information. According to USAID’s Gender Equality and Female

Empowerment Policy, USAID Trade Policy and USAID’s Private-Sector Engagement Policy, trade cross border activities should address challenges unique to women by ensuring a solid gender analysis to identify the gaps that USAID’s assistance can reduce in all forms of cross border trade work. The Contractor’s performance will be evaluated on their ability to integrate women and gender equality standards in the different activities.

The Contractor must propose women economic empowerment opportunities and engagement approaches in all activity results while reflecting specific targets and impacts in proposals to address women economic empowerment and gender equality challenges and barriers.

D. Youth

According to the Palestinian Central Bureau of Statistics (PCBS), West Bank and Gaza’s youth

(ages 15-19) unemployment rate was 43.2 percent in quarter 3 of 2021. With informal employment generally the norm for virtually every young employed person in the WBG and with only 5.1 percent of them being employed in the formal economy, jobs for youth are a critical development challenge2. As such, the Contractor must integrate youth considerations in day-to-day operations.

The Contractor must engage youth whenever practicable in economic activities that will help to facilitate their entry into the labor market including provision of life and work skills, career guidance and entrepreneurship support, internships, mentorships and help youth access finance for joint new startups. The Contractor must collaborate with the private sector and key stakeholders to help address increased employment for youth and inform youth about options for obtaining skills and jobs, particularly those offered by this activity’s client firms.

2 ILO publication, “Labor Market Transitions of Young Women and Men in the Occupied Palestinian Territory.”

Work4Youth Publication Series No. 20 (September 2014) and Work4Youth Publication Series No. 44 (July 2016).

The Contractor must develop a youth strategy (based on USAID’s Positive Youth Development framework) that incorporates practical ways in the WBG to increase employment among youth, with a specific focus on graduating university students and technical and vocational education and training institution graduates.

E. Sustainability

Sustainability is integral to this activity. Approaches to implementation must be sought to ensure the sustainability and self-reliance of Palestinian enterprises after the activity ends. Firms are defined as sustainable if their expansions are derived from normal market processes and not transfers from government or non-profit actors.

The Contractor must take a multifaceted approach to sustainability by working at every turn to build lasting relationships, supporting sustainable organizations, identifying champions from the early stages of implementation, and building the capacity of local stakeholders to take on more responsibility for implementation of activities as time passes. All BREB activities must be focused on yielding measurable economic growth impacts, while strengthening overall capacity of local institutions. This will help bring credibility to the process and allow stakeholders to see the value in working together to promote growth.

The Contractor must integrate sustainability into its implementation plan and the learning agenda of its Monitoring, Evaluation, and Learning Plan. The Contractor must develop a well-conceived sustainability plan which describes the resources, technical and managerial capacities, and linkages that will sustain program outcomes and/or activities after the program ends.

The following four guiding principles of the USAID Economic Growth Policy must be taken into consideration while evaluating the sustainability of the BREB Activity's impact:

● Advances our approach to enterprise-driven development to improve the effectiveness of

USAID's economic-growth programming and increase self-reliance in our partner countries;

● Asserts the importance of economic analysis and systems-based approaches in the design, management, and evaluation of our economic growth programs;

● Elevates the requirement for USAID's interventions to produce measurable impact with a clear exit strategy so that we do not continue to repeat the same programs in the same sectors; and

● Outlines guiding principles for greater, quantifiable impact.

F. Inclusive Development

USAID is committed to the inclusion of people who have physical and cognitive disabilities and those who advocate and offer services on behalf of people with disabilities. This commitment extends from the design and implementation of USAID programming to advocacy for and outreach to people with disabilities. USAID’s policy on disability is as follows: to avoid discrimination against people with disabilities in programs that USAID funds and to stimulate an engagement of host country counterparts, governments, implementing organizations, and other donors in promoting a climate of nondiscrimination against and equal opportunity for people with disabilities.

The USAID policy on disability is to promote the inclusion of people with disabilities both within

USAID programs and in host countries where USAID has programs. USAID therefore requires that the Contractor not discriminate against people with disabilities in program implementation and that it makes every effort to comply with the objectives of the USAID Disability Policy in performing this contract. To that end, and within the scope of the agreement, the Contractor’s actions must demonstrate a comprehensive and consistent approach to including men, women, and children with disabilities.

G. Environment

The Contractor must apply environmental due diligence on all activities in line with USAID rules and regulations. The Contractor must identify potential environmental impacts of USAID-financed activities prior to a final decision to proceed and ensure that appropriate environmental safeguards are adopted for all activities.

H. USAID’s New Partnerships Initiative (NPI)

The Contractor must focus on expanding economic, commercial, and applied research partnerships/alliances between the WBG, Israel, and the U.S. Potential joint initiatives could involve firms, research institutes, trade organizations, non-profit organizations, and individuals.

The Contractor should seek a locally-led, market driven, and sustainable approach. Consistent with

USAID’s NPI, the Contractor is highly encouraged to partner with local organizations in order to come up with such an approach.

C.6 Indicators

This section provides illustrative indicators for implementers to consider when developing their proposals.

Standard Indicators

● PS.6.2-1 Number of new groups or initiatives created through USG funding, dedicated to resolving the conflict or the drivers of the conflict;

● ES.2-1 Number of host country higher education institutions receiving capacity development support with USG assistance;

● ES.2-54 Number of USG-supported partnerships that address regional, national,…