Amended RFP- Appendix II to Amendment 1.pdf

Appendix II-Amendment No. 1 to RFP

Request for Proposal (RFP) No.: 72029424R00002 Issue Date: May 8, 2024 Questions Due Date: OOB May 16, 2024, 9:00 A.M., Jerusalem time Technical and Cost Proposals Submission Due Date: June 10 18, 2024, 9:00 A.M. Jerusalem Time

SUBJECT: Request for Proposals (RFP) No.: 72029424R00002

USAID/West Bank and Gaza - Trade, Investment and Finance Activity.

Dear Potential Offeror:

The United Agency for International Development (USAID) seeks proposals to provide technical assistance from qualified organizations to implement the Trade, Investment and Finance Activity, as described in enclosed Request for Proposal (RFP) and detailed in Section C- Statement of Work.

USAID/West Bank and Gaza (WBG) anticipates awarding one cost plus fixed-fee (CPFF) term-type contract as a result of this solicitation, for an estimated period of five (5) years from the date of contract award, at an estimated range of $40 million-$45 million.

The North American Industry Classification System (NAICS) code for this acquisition is 541690 – Other Scientific and Technical Consulting Services. The principal Geographic Code is 937.

This procurement will be conducted utilizing competitive proposal procedures pursuant to Part 15 of the Federal Acquisition Regulation (FAR) (48 CFR Chapter 1). All types of Organizations are eligible to compete. The 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. Please pay particularly close attention to Sections L and M.

Section K - Representations, Certifications and Acknowledgements must be filled out and completed in full by the Offerors and their proposed subcontractors. Proposals must be signed by an official who is authorized to bind the organization and are to be submitted to USAID no later than the closing date and time stated above.

Pursuant to Part 15 of the Federal Acquisition Regulation (FAR) (48 CFR Chapter 1), this procurement will be conducted under full and open competition procedures. All types of organizations are eligible to compete.

U.S. Agency for International Development (USAID USAID Trade, Investment and Finance Activity RFP No. 72029424R00002 2

It is the responsibility of the recipient of this solicitation to ensure that the solicitation has been received from https://sam.gov in its entirety. USAID bears no responsibility for data errors resulting from download or conversion processes.

Any questions regarding this solicitation must be submitted in writing via email to WBGTIF- RFP@usaid.gov by the date and time specified above. Answers to Offerors’ questions will be provided in writing via solicitation amendment.

Proposals must be submitted via email to WBGTIF-RFP@usaid.gov. Only Electronic submissions will be accepted; no other forms of submission will be accepted. If your organization decides to submit a proposal in response to this solicitation, it must be submitted by the designated date and time indicated in Block 9 of the RFP Cover page (Standard Form 331). Proposals received after the closing date and time will be processed as late and handled in accordance with FAR Part

15.208. Proposals submitted in response to this solicitation shall be valid for no less than 180 days.

Issuance of this solicitation and the submittal of a proposal do not constitute a commitment on the part of the U.S. Government nor USAID to make an award; neither does it constitute an obligation for any costs incurred in the preparation and submission of a proposal. Furthermore, the U.S. Government reserves the right to reject any and all offers, if such action is considered to be in the best interest of the U.S. Government.

Thank you in advance for your interest in USAID’s business opportunities.

Sincerely, Deborah Perlman Contracting Officer USAID West Bank and Gaza

1 Offerors must download the most recent version of the SF 33 on www.gsa.gov to prepare its offer.

https://sam.gov/ mailto:WBGTIF-RFP@usaid.gov

SOLICITATION, OFFER AND AWARD 1. THIS CONTRACT IS A RATED ORDER

UNDER DPAS (15 CFR 700)

RATING PAGE OF PAGE(S)

N/A 1 175

2. CONTRACT NO. 3. SOLICITATION NO. 4. TYPE OF SOLICITATION 5. DATE ISSUED 6. REQUISITION/PURCHASE NO.

72029424R00002 ☐ SEALED BID (IFB)

xNEGOTIATED (RFP)

May 8, 2024 REQ-294-24-000039

7. ISSUED BY CODE 8. ADDRESS OFFER TO (If other than Item 7)

USAID/West Bank and Gaza

Office of Contracts Management

U.S. Embassy/Jerusalem

18, Agron Street

Jerusalem 9419003

NOTE: In sealed bid solicitations “offer” and “offeror” mean “bid” and “bidder”

SOLICITATION

9. Sealed offers in original and _______ copies for furnishing the supplies or services in the Schedule will be received at the place specified in Item 8, or if handcarried, in the depository located in _____________________until ___ local time __. CAUTION LATE Submissions, Modifications, and Withdrawals: See Section L, Provision No. 52.214-7 or 52.215-1. All offers are subject to all terms and conditions contained in this solicitation.

10. A. NAME B. TELEPHONE NO. (NO COLLECT CALLS) C. E-MAIL ADDRESS

FOR INFORMATION

CALL:

Deborah Perlman Intl CODE NUMBER EXT. WBGTIF-RFP@usaid.gov

11. TABLE OF CONTENTS

(x) SEC

DESCRIPTION PAGE(S) (x) SE

C.

DESCRIPTION PAGE(S)

PART I - THE SCHEDULE PART II - CONTRACT CLAUSES

x A SOLICITATION/CONTRACT FORM/List of Acronyms 1-11 x I CONTRACT CLAUSES 101-120 x B SUPPLIES OR SERVICES AND PRICE/COST 12-16 PART III - LIST OF DOCUMENTS, EXHIBITS AND OTHER ATTACH.

x C DESCRIPTION/SPECS./WORK STATEMENT 17-32 x J LIST OF ATTACHMENTS 121 x D PACKAGING AND MARKING 33-38 PART IV - REPRESENTATIONS AND INSTRUCTIONS x E INSPECTION AND ACCEPTANCE 39 x K REPRESENTATIONS, CERTIFICATIONS AND OTHER

STATEMENTS OF OFFERORS

122-141 x F DELIVERIES OR PERFORMANCE 40-59 x G CONTRACT ADMINISTRATION DATA 60-65 x L INSTRS., CONDS., AND NOTICES TO OFFERORS 142-169 x H SPECIAL CONTRACT REQUIREMENTS 66-100 x M EVALUATION FACTORS FOR AWARD 170-175

OFFER (Must be fully completed by offeror)

NOTE: Item 12 does not apply if the solicitation includes the provisions at 52.214-16, Minimum Bid Acceptance Period.

12. In compliance with the above, the undersigned agrees, if this offer is accepted within __180___ calendar days (60 calendar days unless a different period is inserted by the offeror) from the date for receipt of offers specified above, to furnish any or all items upon which prices are offered at the price set opposite each item, delivered at the designated point(s), within the time specified in the schedule.

13. DISCOUNT FOR PROMPT PAYMENT

(See Section I, Clause No. 52.232-8)

10 CALENDAR DAYS

20 CALENDAR DAYS

30 CALENDAR DAYS

CALENDAR DAYS (%)

14. ACKNOWLEDGMENT OF AMENDMENTS (The offeror acknowledges receipt of amendments to the SOLICITATION for offerors and related documents numbered and dated:

AMENDMENT NO. DATE AMENDMENT NO. DATE

15A. NAME AND

ADDRESS

OF OFFEROR

CODE FACILITY 16. NAME AND TITLE OF PERSON AUTHORIZED TO SIGN OFFER (Type or print)

15B. TELEPHONE NUMBER ☐ 15C. CHECK IF REMITTANCE ADDRESS

IS DIFFERENT FROM ABOVE – ENTER

SUCH ADDRESS IN SCHEDULE.

17. SIGNATURE 18. OFFER DATE

AREA CODE NUMBER EXT.

AWARD (To be completed by Government)

19. ACCEPTED AS TO ITEMS NUMBERED 20. AMOUNT 21. ACCOUNTING AND APPROPRIATION

22. AUTHORITY FOR USING OTHER THAN FULL AND OPEN COMPETITION: 23. SUBMIT INVOICES TO ADDRESS SHOWN IN ITEM

☐ 10 U.S.C. 2304(c) ( ) ☐ 41 U.S.C. 253(c) ( ) (4 copies unless otherwise specified)

24. ADMINISTERED BY (If other than Item 7) CODE 25. PAYMENT WILL BE MADE BY CODE

26. NAME OF Contracting Officer (Type or print) 27. UNITED STATES OF AMERICA 28. AWARD DATE

(Signature of Contracting Officer)

IMPORTANT: Award will be made on this Form, or on Standard Form 26, or by other authorized official written notice.

AUTHORIZED FOR LOCAL REPRODUCTION

Previous edition not usable.

33-133 STANDARD FORM 33 (Rev. 9-97)

Prescribed by GSA FAR (48 CFR) 53.214(c)

RFP No. 72029424R00002 4

TABLE OF CONTENTS

PART I –THE SCHEDULE 11

SECTION B - SUPPLIES OR SERVICES/PRICES 11

B.1 PURPOSE 11

B.3 ESTIMATED COST, FEE, AND OBLIGATED AMOUNT 11

B.4 CONTRACT BUDGET SCHEDULE 11

B.5 COST REIMBURSABLE 12

B.6 INDIRECT COSTS (To be completed upon award) 13

B.7 LEVEL OF EFFORT (LOE) 14

B.8 FIXED FEE CEILING 14

B.9 PAYMENT OF FIXED FEE 15

SECTION C – DESCRIPTION / SPECIFICATIONS / STATEMENT OF WORK 16

SECTION D – BRANDING AND MARKING 32

D.1 AIDAR 752.7009 MARKING (JAN 1993) 32

D.2 BRANDING AND MARKING POLICY 32

D.3 BRANDING STRATEGY 34

D.4 MARKING PLAN 36

D.5 APPROVAL OF CONTRACTOR BRANDING STRATEGY AND MARKING PLAN 37

SECTION E – INSPECTION AND ACCEPTANCE 38

E.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED 38

BY REFERENCE 38

E.2 INSPECTION AND ACCEPTANCE 38

SECTION F - DELIVERIES OR PERFORMANCE 39

F.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY 39

REFERENCE 39

F.2 PERIOD OF PERFORMANCE 39

F.4 PERFORMANCE STANDARDS 39

F.5 KEY PERSONNEL 41

F.6 DELIVERABLES AND REQUIRED REPORTING 43

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F.8 AIDAR 752.7005 SUBMISSION REQUIREMENTS FOR DEVELOPMENT

EXPERIENCE DOCUMENTS (SEPTEMBER 2013) 56

F.9 PROGRAM EVALUATIONS 57

F.10 AUTHORIZED WORKDAY / WEEK 58

SECTION G - CONTRACT ADMINISTRATION DATA 59

G.1 CONTRACTING OFFICER’S AUTHORITY 59

G.2 752.7003 DOCUMENTATION FOR PAYMENT (NOV 1998) 60

G.3 CONTRACTING OFFICER’S REPRESENTATIVE (COR) 61

G.4 TECHNICAL DIRECTIONS/RELATIONSHIP WITH USAID 62

G.5 PAYING OFFICE AND INVOICES 63

G.6 ACCOUNTING AND APPROPRIATION DATA 64

G.7 CONTRACTOR’S PRIMARY POINT OF CONTACT 64

SECTION H – SPECIAL CONTRACT REQUIREMENTS 65

H.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE 65

H.2 AUTHORIZED GEOGRAPHIC CODE 65

H.3 AIDAR 752.225-70 SOURCE AND NATIONALITY REQUIREMENTS (FEB 2012) 65

H.4 CONSENT TO SUBCONTRACTS 66

H.5 SPECIAL PROVISIONS 67

H.5.1 CHOICE OF LAW 67

H.5.2 USAID/WEST BANK AND GAZA MISSION NOTICES 67

H.5.3 SUBCONTRACTING WITH GOVERNMENT OR QUASI-GOVERNMENT

ENTITIES 67

H.5.4 VETTING 67

H.5.5 PROHIBITION AGAINST CASH ASSISTANCE TO THE PALESTINIAN

AUTHORITY 68

H.5.6 PROHIBITION AGAINST SUPPORT FOR TERRORISM 68

H.5.7 RESTRICTION ON FACILITY NAMES 70

H.5.8 VALUE ADDED TAX AND CUSTOMS DUTIES 70

H.5.9 REPORTING OF FOREIGN TAXES 71

H.5.10 USAID/WEST BANK AND GAZA MISSION ORDER 21 COMPLIANCE

REVIEWS 72

H.5.11 CAPITAL ASSISTANCE (611e REQUIREMENTS) 73

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H.5.12 PROHIBITION ON ASSISTANCE TO THE PALESTINIAN BROADCASTING

CORPORATION 73

H.5.13 USAID/WEST BANK AND GAZA AUDIT PROGRAM (ACA) 73

H.5.14 22 USC 2378c-1(a)(1) TAYLOR FORCE ACT 74

H.6 ENVIRONMENTAL CONSIDERATIONS 74

H.6.1 ENVIRONMENTAL COMPLIANCE 74

H.6.2 CLIMATE RISK MANAGEMENT 76

H.7 SCHEDULE AND COST DEVIATION 76

H.8 INTERNATIONAL TRAVEL APPROVAL 76

H.9 AIDAR 752.7032 INTERNATIONAL TRAVEL APPROVAL AND

NOTIFICATION REQUIREMENTS (APR 2014) 77

H.10 BUSINESS CLASS TRAVEL 77

H. 11 SOVEREIGN RELATIONSHIPS 77

H.12 GRANTS UNDER CONTRACT 77

H.13 PRESS AND PRESS RELATIONS 79

H.14 PROHIBITION AND ASSISTANCE TO DRUG TRAFFICKING 79

H.15 U.S. CITIZENS REGISTRATION 79

H.16 STANDARDS OF CONDUCT – IMPROPER BUSINESS PRACTICES 80

H.17 CONTRACTOR’S USE OF PROJECT VEHICLES AND LIABILITY INSURANCE

REQUIREMENTS FOR PRIVATELY OWNED VEHICLES 80

H.18 LANGUAGE REQUIREMENTS 80

H.19 OWNERSHIP OF PROJECT DATA, REPORTS AND OTHER DOCUMENTS 81

H.20 LOGISTICAL SUPPORT 81

H.21 DISCLOSURE OF INFORMATION 81

H.22 NONEXPENDABLE PROPERTY PURCHASES AND INFORMATION

TECHNOLOGY RESOURCES 82

H.23 FOREIGN GOVERNMENT DELEGATIONS TO INTERNATIONAL CONFERENCES

(JAN 2002) 82

H.24 ELECTRONIC PAYMENTS SYSTEM 82

H.25 ADS 302.3.5.21 SUBMISSION OF DATASETS TO THE DEVELOPMENT DATA

LIBRARY (DDL) (OCTOBER 2014) 83

H.26 CLOUD COMPUTING (APRIL 2018) (DEVIATION NO. M-OAA-DEV-AIDAR-24-

05c) 85

H.27 SEXUAL MISCONDUCT (DECEMBER 2020) 91

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H.28 RESTRICTIONS ADMINISTERED BY THE DEPARTMENT OF THE TREASURY

ON ACQUISITIONS OF SUPPLIES OR SERVICES FROM PROHIBITED SOURCES 92

H.29 ADS 302.3.5.19 USAID-FINANCED THIRD-PARTY WEB SITES (NOV 2017) 93

H.30 PROHIBITION ON THE USE OF FEDERAL FUNDS TO PROMOTE, SUPPORT,

OR ADVOCATE THE LEGALIZATION OR PRACTICE OF PROSTITUTION-TRAFFICKING

IN PERSONS - ACQUISITION 94

H.31 Media and Information Handling and Protection (APRIL 2018) (DEVIATION NO.

M-OAA-DEV-AIDAR-24-05c) 95

H.32 CONFLICT OF INTEREST 96

H.33 FAR Part 4.21 PROHIBITION ON CONTRACTING FOR CERTAIN COVERED

TELECOMMUNICATIONS AND VIDEO SURVEILLANCE SERVICES OR EQUIPMENT

(SECTION 889) (JUNE 2023) 98

PART II- CONTRACT CLAUSES 100

SECTION I - CONTRACT CLAUSES 100

I.1 FAR 52.252-2 CLAUSES INCORPORATED BY REFERENCE (FEB 1998) 100

PROHIBITION ON CONTRACTING FOR HARDWARE, SOFTWARE, AND SERVICES

DEVELOPED OR PROVIDED BY KASPERSKY LAB AND OTHER COVERED

ENTITIES 101

PROHIBITION ON CONTRACTING FOR CERTAIN TELECOMMUNICATIONS AND

VIDEO SURVEILLANCE SERVICES OR EQUIPMENT 101

I.2 AIDAR 752.252-2 AIDAR CLAUSES INCORPORATED BY REFERENCE (MAR

2015) 104

I.3 52.204-1 APPROVAL OF CONTRACT (DEC 1989) 106

I.4 52.222-35 EQUAL OPPORTUNITY FOR VETERANS (JUN 2020) 106

(a) Definitions. As used in this clause- 106

I.5 52.222-36 EQUAL OPPORTUNITY FOR WORKERS WITH DISABILITIES 107

(JUN 2020) 107

I.6 52.247-67 SUBMISSION OF TRANSPORTATION DOCUMENTS FOR AUDIT (FEB

2006) 107

I.7 AIDAR 728.305-70 OVERSEAS WORKER'S COMPENSATION AND WAR-

HAZARD INSURANCE - WAIVERS AND USAID INSURANCE COVERAGE 108

I.8 AIDAR 728.309 CONTRACT CLAUSE FOR WORKER’S COMPENSATION 109

INSURANCE. 109

I.9 AIDAR 752.222-70 - USAID DISABILITY POLICY (DEC 2004) 109

I.10 AIDAR 752.222-71 NONDISCRIMINATION (JUNE 2012) 110

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I.11 AIDAR 752.228-3 Worker’s Compensation Insurance (Defense Base Act) (DEC 1991) [(DEVIATION JUN 2022)] Class Deviation No. M-OAA-DEV-AIDAR-22-10c 110

I.12 AIDAR 752.228-7 INSURANCE -- LIABILITY TO THIRD PERSONS (JUL 1997) 111

I.13 AIDAR 752.228-70 MEDICAL EVACUATION (MEDEVAC) SERVICES (JUL 2007)

I.14 AIDAR 752.239-70 Information Technology Authorization (April 2024) 112

(DEVIATION NO. M-OAA-DEV-AIDAR-24-04c) 112

I.15 AIDAR 752.239-71 Information and Communication Technology Accessibility (April 2024) (DEVIATION NO. M-OAA-DEV-AIDAR-24-04c) 113

I.16 AIDAR 752.239-72 USAID-Financed Project Websites (April 2024) (DEVIATION NO.

M-OAA-DEV-AIDAR-24-04c) 114

I.17 752.245-70 GOVERNMENT PROPERTY – USAID REPORTING

REQUIREMENTS (OCT 2017) 115

I.18 AIDAR 752.7007 PERSONNEL COMPENSATION (JULY 2007) 118

I.19 AIDAR 752.7013 Contractor-Mission Relationships (OCT 1989) [DEVIATION 118

(JUN 2020)] 118

PART III-LIST OF DOCUMENTS, EXHIBITS AND OTHER ATTACHMENTS 120

SECTION J – LIST OF ATTACHMENTS 120

PART IV- REPRESENTATIONS AND INSTRUCTIONS 121

SECTION K – REPRESENTATIONS, CERTIFICATIONS AND OTHER STATEMENTS OF

OFFERORS 121

K.1 NOTICE LISTING SOLICITATION PROVISIONS INCORPORATED BY

REFERENCE 121

K.2 52.204-3 TAXPAYER IDENTIFICATION (OCT 1998) 122

K.3 52.204-20 Predecessor of Offeror (AUG 2020) 123

K.4 52.204-24 Representation Regarding Certain Telecommunications and Video Surveillance Services or Equipment. (Nov 2021) 124

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

Representation (OCT 2020) 127

K.7 52.209-5 Certification Regarding Responsibility Matters (AUG 2020) 130

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

K.9 52.209-11 REPRESENTATION BY CORPORATIONS REGARDING DELINQUENT

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

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K.10 52.209-12 CERTIFICATION REGARDING TAX MATTERS (OCT 2020) 134

K.11 52.222-22 PREVIOUS CONTRACTS AND COMPLIANCE REPORTS

(FEB 1999) 135

K.12 52.222-25 AFFIRMATIVE ACTION COMPLIANCE (APR 1984) 135

K.13 52.227-15 REPRESENTATION OF LIMITED RIGHTS DATA AND

RESTRICTED COMPUTER SOFTWARE (DEC 2007) 135

K.14 52.230-1 COST ACCOUNTING STANDARDS NOTICES AND CERTIFICATION

(JUN 2020) 136

K.15 52.230-7 PROPOSAL DISCLOSURE-COST ACCOUNTING 139

PRACTICE CHANGES (APR 2005) 139

K.16 AGREEMENT ON, OR EXCEPTIONS TO, TERMS AND CONDITIONS 139

K.17 AUTHORIZED NEGOTIATORS 140

K.18 SIGNATURE 140

SECTION L – INSTRUCTIONS, CONDITIONS, AND NOTICES TO OFFERORS 141

L.1 FAR 52.252-1 NOTICE LISTING SOLICITATION PROVISIONS INCORPORATED

BY REFERENCE (FEB 1998) 141

L.2 52.216-1 TYPE OF CONTRACT (Apr 1984) 142

L.3 52.233-2 SERVICE OF PROTEST. (SEP 2006) 142

L.4 52.252-5 AUTHORIZED DEVIATIONS IN PROVISIONS (NOV 2020) 143

L.5 GENERAL INSTRUCTIONS TO OFFERORS 143

L.6 DELIVERY INSTRUCTIONS 145

L.7 INSTRUCTIONS FOR THE PREPARATION OF THE TECHNICAL VOLUME 147

L.8 INSTRUCTIONS FOR THE PREPARATION OF THE COST PROPOSAL 156

L.8.1 GENERAL 156

L.8.2 MICROSOFT EXCEL BUDGET SPREADSHEET 157

L.8.3 BUDGET NARRATIVE 157

L.8.4 ADDITIONAL BUDGET INSTRUCTIONS 157

SECTION M – EVALUATION FACTORS FOR AWARD 169

M.1 52.252-1 SOLICITATION PROVISIONS INCORPORATED BY REFERENCE (FEB

1998) 169

M.2 GENERAL INFORMATION 169

M.3 TECHNICAL EVALUATION CRITERIA 170

M. 4 COST PROPOSAL EVALUATION 172

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M.5 DETERMINATION OF COMPETITIVE RANGE 173

M.6 SOURCE SELECTION 174

ACRONYMS AND ABBREVIATIONS

AMELP Activity Monitoring, Evaluation, and Learning Plan AWP Annual Work Plan B2B Business-to-business BISM Basic Infrastructure Services Mechanism BSMP Branding Strategy and Marking Plan BREB Building Regional Economic Bridges CLA Collaboration, Learning, and Adapting COR Contracting Officer’s Representative CPARS Contractor Performance Assessment Reporting System CPFF Cost-Plus-Fixed-Fee DFC Development Finance Corporation DQA Data Quality Assessment IEE Initial Environmental Examination MEB Middle East Bureau MEII Middle East Investment Initiative MEL Monitoring, Evaluation and Learning USAID U.S. Agency for International Development WBG West Bank and Gaza

RFP No. 72029424R00002 11

PART I –THE SCHEDULE

SECTION B - SUPPLIES OR SERVICES/PRICES

B.1 PURPOSE

The purpose of the Trade, Investment and Finance Activity is to increase trade, exports, and GDP and position the Palestinian economy in the West Bank and Gaza for growth. To achieve this goal, the Activity will boost trade, investment, and access to affordable financial services within the WBG. This will be achieved through the provision of technical assistance and blended finance across diverse areas, including, but not limited to, identifying market opportunities, optimizing supply chain logistics, ensuring compliance with international standards, advocating for policy reforms, promoting both local and foreign direct investments, facilitating access to affordable financial services, and fostering strategic partnerships and alliances between the WBG and the global community.

B.2 CONTRACT TYPE

This is a cost-plus-fixed-fee (CPFF) term type contract. For the consideration set forth below, the Contractor shall deliver the services described in Sections C and F.

B.3 ESTIMATED COST, FEE, AND OBLIGATED AMOUNT

(a) The estimated cost for the performance of the work required hereunder for the period (Year 1 through Year 5) exclusive of fixed fee, if any, is $[TBD]. The fixed fee, if any, is $[TBD]. The total estimated cost-plus fixed fee, if any, is $[TBD]. Cost must be limited to reasonable, allocable and allowable costs determined in accordance with FAR 52.216-7 Allowable Cost and Payment.

(b) Within the total estimated cost-plus fixed fee (if any) specified in paragraph (a) above, the amount currently obligated and available for reimbursement of allowable costs incurred by the Contractor (and payment of fee, if any) for performance hereunder is $ [TBD]. The Contractor must not exceed the aforesaid obligated amount unless authorized by the Contracting Officer pursuant to the clause of this contract entitled "Limitation of Funds" (FAR 52.232-22).

(c) Funds obligated hereunder are anticipated to be sufficient through [To be inserted at the time of award]. Subject to the availability of funds, this contract will be incrementally funded.

B.4 CONTRACT BUDGET SCHEDULE

(a) The Contractor is not allowed to exceed any contract cost element nor is authorized to shift funding between cost elements without prior written approval of the Contracting Officer. The

RFP No. 72029424R00002 12

Contractor must not bill any amounts against this contract in excess of the amounts specified for each cost item as illustrated below:

CLIN Description CLIN Total Cost

0001 Technical Assistance 2(non-GUCs) $ _______

Fixed Fee (non-GUCS) $ _______

Grants Under Contract (GUCs) $7,500,000.00

Fixed Fee (GUCs) $ _______

Indirect Costs $ _______

Total Estimated Cost-Plus Fixed Fee $ _______

B.5 COST REIMBURSABLE

The U.S. dollar costs reimbursable must be limited to those costs determined to be necessary, allocable, allowable and reasonable in accordance with FAR 52.216-7, Allowable Cost and Payment (AUG 2018), FAR 52.216-8, Fixed Fee, (JUN 2011), and AIDAR 752.7003, Documentation for Payment (NOV 1998)

The applicable clauses incorporated by reference in Section I are as follows: FAR 52.232-20 Limitation of Cost (APR 1984) (applies when the contract is fully funded). FAR 52.232-22 Limitation of Funds (APR 1984) (applies while the contract is funded in an amount less than the total cost-plus fixed fee).

2 The Offeror must allocate a total amount of $2,900,000 under this line item for an award to MEII (see Objective No. 3 under Section C).

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B.6 INDIRECT COSTS (To be completed upon award)

The contract FAR clause 52.216-7, “Allowable Cost and Payment (AUG 2018)”, specifies that the indirect cost rates must be established for each of the Contractor’s accounting periods that apply to this contract. 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 base for prime Contractors and their major subContractors.

Major subContractors are defined as those whose proposed cost exceeds 20% of the Offeror’s total proposed cost.

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

Description Rate Base Type Period

% 1/ 1/ 1/ % 2/ 2/ 2/ % 3/ 3/ 3/

1/Base of Application:

Type of Rate:

Period:

2/Base of Application:

Type of Rate:

Period:

3/Base of Application:

Type of Rate:

Period:

NOTE: Insert additional indirect rates as needed for all primes and major subContractors in the above table.

(b) The Government will not be obligated to pay any additional amount should the final indirect cost rates exceed the negotiated ceiling rates. If the final indirect cost rates are less than the negotiated ceiling rates, the negotiated rates will be reduced to conform to the lower rates.

(c) This understanding shall not change any monetary ceiling, obligation, or specific cost allowance or disallowance. Any changes in classifying or allocating indirect costs require

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B.7 LEVEL OF EFFORT (LOE)

(a) The Government estimates that up to 38,880 person-days of LOE will be required for all Long-Term and Short-Term expatriate and cooperating country national employees of the prime Offeror (technical, non-technical, administrative and support staff) and expatriate and local consultants under this contract.

The total number of person-days of LOE allocated under the proposed subcontracts will be added to the number of LOE specified above at the award stage-please refer to section L.8.4 (b)(2)(I) for further details.

(b) Once the required LOE has been provided, the contract will be completed. No reallocation of labor, different than proposed by the Contractor, will result in an increase in the total estimated cost or exceed the obligated amount.

(c) Approvals, technical orders or other directions from the Contracting Officer’s Representative (COR) do not constitute authorization to increase the LOE for this contract. The Government is not obligated to reimburse the Contractor for any actions which increase the LOE unless such actions have been authorized in writing by the Contracting Officer.

B.8 FIXED FEE CEILING

(a) For this contract, the CO will authorize a fixed fee amount to be specified in section B.3 of the contract (see above). In negotiating the fixed dollar amount for fee, the CO 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 exceed [TBD] of the contract’s total 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.

(b) Separate Fixed Fee Ceiling Applicable to Grants Under Contracts (GUCs)-

USAID has not authorized the use of a Letter of Credit (LOC) for Grants Under Contract.

However, USAID reserves the right to lower the GUC fee if the use of LOC or advances are authorized for the Grants Under Contract. If a Letter of Credit or advances have been issued to the Contractor for GUC expenditures only, in no event may the amount of fixed fee (if any) applicable to GUCs exceeds [TBD] of the total cost of GUCs.

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B.9 PAYMENT OF FIXED FEE

At the time of each payment of allowable costs to the Contractor, the USAID paying office ordinarily pays the Contractor a percentage of fixed fee that directly corresponds to the percentage of allowable costs being paid. Three exceptions to paying fixed fee in this manner apply:

(1) If the CO 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 CO 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.

(3) For a term-type contract, monthly payment of fixed fee will be paid in proportion to the LOE delivered during that month and, pursuant to FAR 52.216-8, it will be made upon receipt of a proper invoice. In the event the Contractor has not delivered the total LOE at the expiration of the contract period, the fixed fee will be adjusted proportionately to the LOE delivered. For example, if the Contractor has expended 85% of the total LOE, then the Contractor is entitled to 85% of the fixed fee amount, provided that the performance has been satisfactory.

[END OF SECTION B]

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SECTION C – DESCRIPTION / SPECIFICATIONS / STATEMENT OF WORK

A. TITLE

Trade, Investment, and Finance (TIF) Activity.

B. OVERVIEW

This contract outlines the implementation of the TIF Activity, a five-year initiative aimed at promoting private sector growth in the West Bank and Gaza (WBG). The Activity utilizes data analysis, the facilitation of proactive dialogue, and advocacy promotion to address impediments to trade, investment, and finance. Its primary focus areas include expanding markets for Palestinian products, ensuring compliance with international standards, and supporting policy reforms. TIF aims to attract both local and foreign direct investments to the WBG. Furthermore, through targeted interventions in the financial services sector, TIF will seek cost-effective ways to enhance access to finance and financial services, ultimately contributing to achieving financial inclusion in the WBG. Through strategic partnerships, this initiative envisions a lasting impact on the economic landscape, fostering connections between the West Bank and Gaza and the global community for mutual benefit.

C. BACKGROUND

a. Socio-Economic Background

Since the signing of the Oslo Accords in 1993, the Palestinian people endured conflict, instability, and internal division. The economy of the West Bank and Gaza, subject to Israeli security controls, witnessed fluctuating growth, oscillating between expansion and contraction, while grappling to keep pace with a growing population. The situation is particularly dire in Gaza, where a 17-year blockade following Hamas’s assumption of control exacerbated poverty, further intensified by the recent conflicts.

Investor confidence faces obstacles due to recurring violence and conflict, evident in low investment rates, approximately 40 percent lower than vibrant middle-income economies, and minimal foreign direct investment, hovering around one percent of GDP. Political uncertainty and insecurity disproportionately impact manufacturing, which relies on global accessibility. Area C, representing over 60 percent of the West Bank's land, remains under Israeli full control, hindering economic development due to restrictions on Palestinian access and investment.

A 2017 inclusive growth diagnostic (see attachment J.5) identified high transaction costs associated with movement, access, and trade restrictions as a major impediment to economic growth. These costs encompass transport expenses, extended wait times, administrative hurdles, RFP No. 72029424R00002 17 and variable clearance times. Transaction costs, stemming from both internal and external factors, diminish the appeal of private investment. External factors include Israel's control of borders and customs access, accompanied by arbitrary restrictions and requirements. Internal factors involve cumbersome export procedures, an underdeveloped logistics chain, and non-alignment of Palestinian standards with international markets.

The Palestinian economy's heavy reliance on the Israeli market, coupled with trade-related restrictions, resulted in a significant trade deficit and a heavy dependence on the Israeli economy.

Small and medium-sized enterprises (SMEs), constituting nearly 90 percent of businesses, are particularly vulnerable.

While the Palestinian financial sector made significant progress towards financial inclusion in recent years, there is still much to be done to make financial inclusion a reality for the vulnerable and poor, as well as for women, youth, and SMEs. The traditional Palestinian banking sector is well-established, but the use of credit cards remains limited.

In the West Bank, the emergence of the technology-based start-up scene has been a response to restrictions on movement, access, and trade that have kept production and investments in traditional sectors low. It is an early-stage ecosystem with no substantial exits and only a handful of technology-based start-ups that have the potential to thrive.

According to a February 2024 World Bank report, the Palestinian economy experienced one of largest shocks recorded in recent economic history due to the Gaza conflict. In Gaza, GDP plummeted by more than 80 percent in Q4-2023—and an estimated 22 percent contraction in the West Bank’s GDP during the same period, Significant efforts will have to be undertaken to recoup the economic losses wrought by the conflict. In the long term, the Palestinian economy can only reach its full potential once a resolution on final status is reached. Yet, there is much that can be done now to unlock growth and improve the situation of the Palestinian people. Indeed, finding solutions to mitigate the array of microeconomic and macroeconomic risks would yield economy-wide benefits.

b. Linkages to Mission Strategy and U.S. Government (USG)

Fostering a competitive Palestinian private sector is crucial for the USG’s goal of achieving stability in the region and progressing towards a two-state solution. USAID's initiatives to enhance the economy of the WBG underscore the USG's dedication to providing assistance that enhances the well-being of Palestinians and contributes to the establishment of a more democratic, economically viable, stable, and secure region. This Activity aligns with Development Objective (DO) 2 ("Broad-based economic development enabled") of the USAID/WBG Strategic

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Framework, directly contributing to Intermediate Result (IR) 2.2 ("Increased access to local and export markets") and IR 2.1 (“Improved Business and Agricultural Environment”). Furthermore, TIF will strengthen IR 3.3 ("Increased opportunities for youth and women in social and economic development") under DO3 ("Livelihoods and human development advanced"). Additionally, TIF aligns with USAID's Private Sector Engagement Policy by actively seeking market-based solutions for greater sustainability, mobilizing private capital, and fostering increased collaboration with private sector partners.

c. 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, the Netherlands, Japan, and Germany. TIF will build on regular donor discussions relating to SMEs, and the Mission will coordinate activities with other donors and stakeholders to avoid duplication of work and encourage strategic investments. The Mission will also coordinate with 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.

TIF will coordinate with the USAID/WBG’s Small and Medium Assistance for recovery and Transition (SMART) and Building Regional Economic Bridges (BREB) programs where appropriate and to amplify synergies. TIF will also work with USAID/WBG staff to identify and target youth, women, and entrepreneurs.

In addition, the contractor will collaborate closely with the Mission's agriculture and environment program, Build 4 Tomorrow, and Basic Infrastructure Services Mechanism (BISM) to pinpoint any infrastructure requirements that enhance trade facilitation. The Contractor will identify the construction needs and coordinate such needs with USAID through the COR. It is envisioned that the Mission’s engineering mechanisms will execute the identified and mutually agreed-upon construction activities with the prior approval of USAID.

D. STATEMENT OF WORK

The goal of the TIF Activity is to increase trade, exports, and GDP and position the Palestinian economy in the West Bank and Gaza for growth. To achieve this goal, the Activity will boost trade, investment, and access to affordable financial services within the West Bank and Gaza. This will be achieved through the provision of technical assistance and blended finance across diverse areas, including, but not limited to, identifying market opportunities, optimizing supply chain logistics, ensuring compliance with international standards, advocating for policy reforms, promoting both local and foreign direct investments, facilitating access to affordable financial

RFP No. 72029424R00002 19 services, and fostering strategic partnerships and alliances between the WBG and the global community.

Theory of Change:

If systemic barriers to Palestinian trade are mitigated, new markets are fostered, investments are increased, and access to affordable financial services is improved, then trade, exports, and GDP will increase and position the economy for growth. This, in turn, will contribute to enhanced stability within the Palestinian Territories and mitigate the economic drivers of conflict.

Objectives:

Goal: Trade, investment, and access to affordable financial services improved.

This goal will be achieved through the below three objectives:

Objective 1: New Markets Fostered and Systemic Trade Barriers Mitigated Objective 2: Investments in the West Bank and Gaza Increased Objective 3: Access to Finance and Financial Services Improved

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

- Facilitate an approximately $150 million increase in exports to international markets by firms supported by the activity over a five-year period to enhance global economic relationships.

- Cultivate new and diverse market connections between Palestinian and foreign companies, enhance supply chain logistics with the establishment of new routes, and support the successful export of a minimum of 150 products from over 100 Palestinian businesses into previously untapped markets.

- Enhance compliance with international standards, covering both domestic and foreign requirements that exporting companies must adhere to per laws. The objective is to align at least 100 companies with new and foreign laws and standards.

- Promote an increase in foreign direct investment in the WBG region, exceeding $100 million over a five-year period, and increase domestic investments by local firms.

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- Enhance the access of Palestinian enterprises to affordable and sustainable financial services and establish a dynamic and competitive digital financial services market with a wide array of secure and interoperable offerings. The Activity targets securing at least $100 million in additional term loan financing to support capital expenditure and trade activities., with a minimum tenure of three years to support capital expenditure. The Activity aims to support financial inclusion and contribute to at least doubling the number of users of the digital financial services over the lifetime of the contract.

A cross-cutting blended finance facility will support all three objectives and will be used where the initiative of local organizations and conveners has the potential to extend the activity’s reach or augment its results.

Description of Objectives TIF’s Objectives/Components are described below. The Contractor must implement activities under the three core components detailed below:

Objective 1: Fostering New Markets and Eliminating Systemic Trade Barriers

The Palestinian private sector faces a range of barriers, encompassing trade, movement, and access. These obstacles, spanning both physical and administrative realms, not only incur direct costs, but also result in indirect costs in terms of time and missed opportunities. Consequently, they serve as impediments to competitiveness, profitability, trade, and overall economic growth.

The growth and long-term viability of the Palestinian private sector rely heavily on the critical task of broadening market reach. Concurrently, it is essential to ensure compliance with international standards to effectively position the Palestinian private sector in the global marketplace. Adhering to established norms not only fosters trust and credibility but also opens up new opportunities for trade partnerships.

By identifying and tapping into emerging markets, this component aims to enhance the visibility and demand for Palestinian goods and services on a global scale, thereby catalyzing economic growth and prosperity. TIF is dedicated to actively cultivating new markets for Palestinian products, diversifying trade opportunities, nurturing strategic partnerships, reinforcing mechanisms to ensure seamless alignment with international standards in the practices of the Palestinian private sector, promoting regulatory compliance at both the firm and institutional levels, and enhancing the global reputation of Palestinian goods and services. The Contractor should focus on industries positioned for resilience and expansion, taking into account factors such as export potential, profitability, systemic influence, and practicality. Under this Component, the Contractor will also address policy, procedural, and technological challenges, aiming to reduce transaction costs, enhance trade logistics, and facilitate smoother trade processes. In doing so, the Contractor strives to eliminate key hindrances to private sector investment, fostering growth and job creation.

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Anticipated outcomes under this component include: (1) increased market diversification through the identification and entry into new markets, leading to expanded export opportunities and revenue streams for Palestinian businesses; (2) reinforced adherence to international trade standards, resulting in expanded market access, improved product quality, and heightened global competitiveness for Palestinian businesses; and (3) facilitation of expedited movement of goods and people, such as increased cargo traffic and reduced transit times at border crossings. This will ultimately yield cost savings and/or additional revenues for the Palestinian private sector.

Required tasks/ activities:

1. Conduct Market Research to identify potential markets with demand for Palestinian products, and analyze the regulatory requirements needed to access them.

2. Develop targeted campaigns and activities to promote Palestinian products in identified markets and promote business-to-business (B2B) connections.

3. Provide technical assistance to help businesses to tailor products to meet the specific needs of target markets.

4. Promote the use of E-commerce and digital platforms by businesses to enhance their online presence.

5. Provide capacity building programs for businesses and private sector associations to enhance regulatory compliance and understanding of international standards.

6. Build and develop private sector capacity of customs brokers, freight forwarders, and exporters, among others, to ensure a skilled workforce adept at navigating international trade regulations.

Illustrative tasks/ activities (tasks/activities under this component are illustrative and may include, but are not limited to):

1. Logistics Service Hub:

- Provide logistical services to traders that would save them time and cost and consequently improve the quality and the efficiency of their service delivery. Such a hub could provide specialized facilities and services that would be context specific. For example, a hub could provide for the storage of empty containers. Once the model of the logistics hub is proven, it could evolve to provide bonded warehouse services and ultimately could house a one-stop customs/security clearance facility for handling imports and exports.

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- Promote the establishment and operation of privately operated bonded warehouses as a means to facilitate trade and attract investments.

- Develop and implement procedures that ensure the efficient functioning of these warehouses while providing incentives for businesses to utilize them.

2. Enhance Efficiency at Border Crossings:

- Maintain information on all current trade routes and crossings, including involved parties and steps required to traverse goods for current traders, and identify systemic barriers that can be addressed.

- Implement streamlined processes and procedures to minimize delays and import and export procedures and eliminate restrictions on movement and access.

- Target the Allenby/King Hussein Bridge border crossing for facilitative improvements, given its importance for enabling Palestinian businesses to move goods to emerging markets in the Gulf states region.

- Trade between the WBG and Israel is likely to return in importance for Palestinian producers after the Gaza hostilities end. The contractor should also prioritize border crossings between WBG and Israel (e.g. Tarqumia border crossing which serves the more industrialized Hebron area).

3. Technological Integration:

- Where applicable, and in full compliance with USG policies, introduce technology-driven solutions to automate and streamline customs clearance processes, reducing paperwork and processing time.

- Where applicable, and in full compliance with USG policies, establish or strengthen digital platforms and their interoperability for trade-related transactions, facilitating smoother interactions between stakeholders.

4. Identify Construction Needs

- Identify construction or rehabilitation of trade and transport-related infrastructure, including crossing point infrastructure that ease movement and access of goods and people into and out of the WBG.

- Coordinate with the Mission’s engineering and construction activities, through the COR, to support the construction of the identified infrastructure needs. Any identified construction activity shall not be implemented by the contractor under this contract and may only be implemented via a separate Mission construction mechanism, and thus should be referred to the USAID/WBG Mission for further action and approval.

5. Engage Women

- Engage with women business associations to advocate for changes in laws and policies that constrain potential women traders.

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- Increase women entrepreneurs’ access to innovative trade facilitation technology.

By undertaking these and other suggested interventions, the Contractor will achieve the goals of Objective 1, which aims to increase the penetration of competitive Palestinian products and services to new markets and increase exports from the WBG.

Objective 2: Investments in the West Bank and Gaza Increased

Private investment plays a pivotal role in fostering economic growth. In the context of the WBG, capital inflows have predominantly stemmed from official development assistance and remittances. Notably, foreign direct investment (FDI) has been conspicuously low, indicating a potential vulnerability in the region's investment landscape.

The observed tepidity in domestic private sector investment can be attributed to firms' apprehensions about diminished returns amid political uncertainty. This apprehension prompts businesses to adopt conservative strategies, reducing their exposure to risks and subsequently dampening overall investment levels.

In addition to political uncertainty, inadequate infrastructure further compounds the challenges, diminishing returns on economic activities and acting as a deterrent to investment, thereby impeding economic growth. The West Bank and Gaza grapple with unfavorable geographic characteristics that elevate risks and increase operational costs for businesses. Challenges such as limited access to land and natural resources, coupled with a foreseen escalation in drought and water scarcity in an already water-stressed region, exacerbate the investment risks.

Recognizing these challenges, Component 2 aims to be a cornerstone in fostering economic growth and fortifying the private sector in the West Bank and Gaza. The overarching objective is to cultivate an environment conducive to attracting and sustaining investments. This involves actively promoting investment, engaging more actively with the private sector which can lead to the creation of Public-Private Partnerships (PPPs), enticing FDIs, particularly from the Palestinian Diaspora, and providing support for privately operated industrial zones. The Palestinian diaspora, which is scattered mostly across the region, Europe and the US, presents an opportunity to unlock foreign investment, especially in the short run, to help the West Bank and Gaza rebuild after the cessation of hostilities.

By undertaking these initiatives, the goal is to create a resilient economic landscape that encourages investment and sustainable private sector-led growth in the West Bank and Gaza. Main results of this component would be to increase private investments in the West Bank and Gaza, create jobs, and export.

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Required tasks/ activities:

1. Develop and implement strategic investment promotion campaigns to highlight the opportunities and incentives available for investing in Palestinian businesses.

2. Organize and host investment forums that serve as platforms for potential investors to connect with viable projects in the WBG.

3. Develop outreach programs specifically targeting the Palestinian diaspora to attract investments in the WBG and contribute to economic development, job creation, and technology transfer.

Illustrative tasks/activities (tasks/activities under this component are illustrative and may include, but are not limited to):

1. Public-Private Partnerships (PPPs):

- Facilitate the adoption of PPPs to secure financing and ensure efficient management of major infrastructure projects in the WBG.

- Foster a conducive environment for private sector engagement in key sectors through the establishment of well-structured partnerships.

2. Privately Operated Industrial Zones:

- Develop and implement procedures that ensure the efficient functioning of industrial zones, while providing incentives for businesses to invest there.

3. Diverse Investment Activities:

- Promote and support investments in innovative and technology-driven industries. This involves creating an ecosystem that encourages research and development, fosters entrepreneurship, and attracts investments in cutting-edge technologies.

- Encourage diversification of investments across various sectors to create a resilient and sustainable economy. This includes identifying and promoting emerging industries and ensuring a balanced portfolio of investments for long-term economic stability.

- Consider and promote the use of blended finance to provide smart subsidies to buy-down risk and/or bump yield as necessary for transactions with high development impact.

- Mobilize impact funding, as well as other donor funding, to promote a Palestinian fund that would invest in Small and Medium Enterprises in the WBG.

By undertaking these and other interventions, the Contractor will achieve the goals of Objective 2 which aims to create a thriving investment landscape in the WBG, attracting foreign direct and local investment that will foster economic development, job creation, and innovation, and ultimately contributing to the overall well-being of the Palestinian people.

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Objective 3: Access to Finance and Financial Services Improved

In spite of the availability of credit, a limited segment of the private sector, mainly comprising large firms, depends on formal financial sector funding. Simultaneously, the significance of funding to the public sector is evident in the WBG. Although this doesn't necessarily indicate widespread displacement of the private sector by the public sector, it underscores the significant investment of the financial sector in public sector lending. Consequently, if not addressed, conservative banking practices and a predominant focus on public sector lending could potentially hinder private sector growth.