RFP_72030618R00024_USAID_Afghanistan_ACEBA_12.18.2018-FINAL.pdf

RFP Number 72030618R00024

RFP Title Afghanistan Competitiveness of Export-Oriented

Businesses Activity (ACEBA)

RFP Issuance Date December 18, 2018

Questions Due Date and Time January 08, 2019, 17:00 Eastern Standard Time

Closing Date January 29, 2019, 17:00 Eastern Standard Time

To All Prospective Offerors:

The United States Government, represented by the U.S. Agency for International Development

Mission in Afghanistan (henceforth referred to as USAID/Afghanistan or the Mission) anticipates awarding one Cost-Plus Fixed Fee (CPFF) completion-type contract with an estimated period of performance of a three-year base period with one two-year option period for the implementation of the Afghanistan Competitiveness of Export-Oriented Businesses

Activity (ACEBA) in Afghanistan. Subject to availability of funds, the estimated cost range for this contract is between $95 million and $110 million. The principal geographic code for this contract is 935. The North American Industry Classification System (NAICS) code for this acquisition is 541990.

This procurement will be conducted under full and open competition, pursuant to Part 15 of the

Federal Acquisition Regulation (FAR) (48 CFR Chapter 1). All types of organizations are eligible to compete; USAID encourages the participation, to the maximum extent possible of local Afghan organizations, small business concerns, veteran owned small business, service-disabled veteran small business, HUB zone small business, small disadvantaged business, and women-owned small business concerns and small business concerns in this activity as the prime contractor or as subcontractors. USAID discourages the use of exclusive agreements as this limits USAID’s and Afghanistan’s ability to receive the best services.

Offerors are encouraged to read the entire solicitation. Special attention must be paid to Section

L – Instructions, Conditions, and Notices to Offerors or Respondents, and Section M –

Evaluation Criteria.

The primary point of contact for this Request for Proposals (RFP) is Contracting Officer Amy

McQuade. Any questions related to this RFP must be submitted by email to kblaidoaaproposals@usaid.gov by the time and date specified above. No questions will be accepted after this date and time. Each e-mail must contain a subject line, which clearly indicates the name of the offeror and the solicitation number.

If questions are received, which affect the responses to the solicitation, or if changes are made to the closing date and time, as well as any other aspects of the RFP, this solicitation will be amended. Any amendments to this solicitation will be issued and posted on the Federal Business

Opportunities (FedBizOpps) website. Offerors are encouraged to check this website

(https://www.fbo.gov) periodically. Oral instructions or explanations given before the award of the contract resulting from this solicitation will not be binding.

mailto:kblaidoaaproposals@usaid.gov https://www.fbo.gov/

SECTION A – SOLICITATION/CONTRACT FORM

Table of Contents

SECTION A – SOLICITATION/CONTRACT FORM

ACRONYMS

PART I – THE SCHEDULE

SECTION B: SUPPLIES OR SERVICES AND PRICES/COSTS

B.1 PURPOSE

B.2 CONTRACT TYPE

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

B.4 CONTRACT BUDGET

B.5 INDIRECT COSTS

B.6 INDIRECT COSTS AND ADVANCED UNDERSTANDING ON CEILINGS

B.6.1 PRIME CONTRACTOR

B.6.2 MAJOR SUBCONTRACTOR(S)

B.7 COST REIMBURSABLE

B.8 PAYMENT OF FIXED FEE (CPFF)

B.9 CANCELLATION CEILING AND MULTI-YEAR CONTRACT

SECTION C: STATEMENT OF OBJECTIVES

SECTION D: PACKAGING AND MARKING

D.1 BRANDING STRATEGY

D.2 AIDAR 752.7009 – MARKING (JAN 1993)

D.3 ANTICIPATED ELEMENTS OF MARKING PLAN

D.4 APPROVAL OF CONRACTOR BRANDING IMPLEMENTATION PLAN & MARKING

PLAN 27

SECTION E: INSPECTION AND ACCEPTANCE

E.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE

E.2 INSPECTION AND ACCEPTANCE

SECTION F: DELIVERIES OR PERFORMANCE

F.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE

F.2 PERIOD OF PERFORMANCE

F.3 PLACE OF PERFORMANCE

F.4 PERFORMANCE STANDARDS

F.5 REPORTS, PLANS, AND OTHER DELIVERABLES

F.6 SUMMARY OF PLANS, REPORTS, AND OTHER DELIVERABLES

F.7 REPORTING FORMAT

F.8 LANGUAGE OF REPORTS AND OTHER OUTPUTS

F.9 PROGRAM PERFORMANCE EVALUATIONS

F.10 AIDAR 752.242-70 PERIODIC PROGRESS REPORTS (OCT 2007)

F.11 AIDAR 752.7005 – SUBMISSION REQUIREMENTS FOR DEVELOPMENT

EXPERIENCE DOCUMENTS (SEP 2013)

F.12 USAID/AFGHANISTAN PUBLIC POSTING (APRIL 2016)

F.13 KEY PERSONNEL

SECTION G: CONTRACT ADMINISTRATION DATA

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

G.2 ADMINISTRATIVE CONTRACTING OFFICE

G.3 CONTRACTING OFFICER’S AUTHORITY

G.4 CONTRACTING OFFICER’S REPRESENTATIVE (COR)

G.5 TECHNICAL DIRECTIONS/RELATIONSHIP WITH USAID

G.6 PAYING OFFICE AND SUBMISSION OF INVOICES

G.7 ACCOUNTING AND APPROPRIATION DATA

G.8 CONTRACTOR’S PRIMARY POINT OF CONTACT

PART II – CLAUSES

SECTION H: SPECIAL CONTRACT REQUIREMENTS

H.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE

H.2 AIDAR 752.7004 EMERGENCY LOCATOR INFORMATION (JUL 1997)

H.3 AIDAR 752.228-3 WORKER’S COMPENSATION INSURANCE (DEFENSE BASE ACT)

H.4 DEFENSE BASE ACT (DBA) INSURANCE (OCT 2017)

H.5 AIDAR 752.228-70 MEDICAL EVACUATION (MEDEVAC) SERVICES (JULY 2007)

H.6 AUTHORIZED GEOGRAPHIC CODE

H.7 CONSENT TO SUBCONTRACT (DECEMBER 2016)

H.8 USAID/AFGHANISTAN RIGHT TO PROCURE FROM OTHER SOURCES (AUGUST

2016) 50

H.9 USAID/AFGHANISTAN MAXIMIZING USE OF LOCAL ENTITIES (AUGUST 2016) ... 51

H.10 USAID/AFGHANISTAN SUB-AWARD REQUIREMENTS (APRIL 2016)

H.11 USAID/AFGHANISTAN VETTING REQUIREMENT (APRIL 2016)

H.12 USAID/AFGHANISTAN USE OF SYNCHRONIZED PRE-DEPLOYMENT AND

OPERATIONAL TRACKER (SPOT) FOR CONTRACTORS SUPPORTING A DIPLOMATIC OR

CONSULAR MISSION OUTSIDE THE UNITED STATES (SUPPLEMENT TO FAR 52.225-19)

(AUGUST 2016)

H.13 SERIOUS INCIDENT REPORTING (SIR) IN AFGHANISTAN (AUGUST 2016)

H.14 USAID/AFGHANISTAN SMART TRAVELER ENROLLMENT PROGRAM (STEP)

(JANUARY 2016)

H.15 USAID/AFGHANISTAN HOST COUNTRY TAXES AND DUTIES (NOVEMBER 2016) . 55

H.16 ADS 302.3.8.8 REPORTING OF FOREIGN TAXES (AUG 2016)

H.17 ELECTRONIC PAYMENTS SYSTEM (JULY 2014)

H.18 COMPENSATION FOR COOPERATING COUNTRY NATIONALS (CCNs) IN

AFGHANISTAN – ACQUISITION (OCT 2017)

H.19 ADDITIONAL REQUIREMENTS FOR PERSONNEL COMPENSATION (DECEMBER

2016) 57

H.20 PRESS RELATIONS (JANUARY 2017)

H.21 USAID/AFGHANISTAN RESTRICTIONS ON CONTRACTORS EXECUTING

AGREEMENTS WITH GOVERNMENT OF NATIONAL UNITY OF AFGHANISTAN (AUGUST

2016) 59

H.22 SUBMISSION OF DATASETS TO THE DEVELOPMENT DATA LIBRARY (DDL)

(OCTOBER 2014)

H.23 USAID/AFGHANISTAN DATABASE and GIS/GPS REPORTING REQUIREMENTS

(MARCH 2017)

H.24 AIDAR 752.7036 USAID IMPLEMENTING PARTNER NOTICES (IPN) PORTAL FOR

ACQUISITION (JULY 2014)

H.25 ENVIRONMENTAL COMPLIANCE

H.26 IMPLEMENTATION OF EXECUTIVE ORDER 13224 ON TERRORISM FINANCING

(AUGUST 2016)

H.27 COMPLIANCE WITH ADS 206 PROHIBITION OF ASSISTANCE TO DRUG

TRAFFICKERS (DECEMBER 2016)

H.28 NONEXPENDABLE PROPERTY PURCHASES (APRIL 2017)

H.29 USAID/AFGHANISTAN COMPLIANCE WITH EXECUTIVE ORDER 13559

FACILITIES USED FOR RELIGIOUS ACTIVITIES (FEBRUARY 2016)

H.30 COMPLIANCE WITH SECTION 508 OF THE REHABILITATION ACT OF 1973, AS

AMENDED (AUGUST 2016)

H.31 FOREIGN GOVERNMENT DELEGATIONS TO INTERNATIONAL CONFERENCES

(AUGUST 2016)

H.32 AIDAR 752.231-72 CONFERENCE PLANNING AND REQUIRED APPROVALS

(AUGUST 2013)

H.33 COMPLIANCE WITH ADS 252 & 253 - TRAINING AND RESULTS AND

INFORMATION NETWORK (TRAINET) (AUGUST 2016)

H.34 USAID DISABILITY POLICY (DEC 2004)

H.35 LIMITATION ON ACQUISITION OF INFORMATION TECHNOLOGY (DEVIATION

NOs. M/OAA-DEV-FAR-18-2c and M/OAA-DEV-AIDAR-18-2c) (APRIL 2018)

H.36 ADS 302.3.5.9 NON-DISCRIMINATION (JUNE 2012)

H.37 AIDAR 752.231-71 SALARY SUPPLEMENTS FOR HOST GOVERNMENT (HG)

EMPLOYEES (MAR 2015)

H.38 INTERNATIONAL TRAVEL APPROVAL

H.39 AIDAR 752.7007 PERSONNEL COMPENSATION (JUL 2007)

H.40 AIDAR 752.7031 LEAVE AND HOLIDAYS (OCT 1989)

H.41 LOGISTIC SUPPORT GOVERNMENT FURNISHED FACILITIES OR PROPERTY

H.42 STANDARDS OF CONDUCT -- IMPROPER BUSINESS PRACTICES

H.43 DISCLOSURE OF INFORMATION

H.44 CLOUD COMPUTING (MAY 2016)

H.45 CONSIDERATIONS FOR GRANTS UNDER CONTRACT

H.46 GENDER CONSIDERATION

SECTION I: CONTRACT CLAUSES

I.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE

I.2 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE

I.3 52.203-3 GRATUITIES (APR 1984)

I.4 FAR 52.203-13 CONTRACTOR CODE OF BUSINESS ETHICS AND CONDUCT (OCT

2015) 88

I.5 FAR 52.209-13 Violation of Arms Control Treaties or Agreements-Certification (JUNE 2018)

I.6 752.209-71 ORGANIZATIONAL CONFLICTS OF INTEREST DISCOVERED AFTER

AWARD (JUN 1993)

I.7 52.215-19 NOTIFICATION OF OWNERSHIP CHANGES. (OCT 1997)

I.8 52.216-24 LIMITATION OF GOVERNMENT LIABILITY (APR 1984)

I.9 52.217-2 CANCELLATION UNDER MULTI-YEAR CONTRACTS (MAY 1997)

I.10 52.217-8 OPTION TO EXTEND SERVICES (NOV 1999)

I.11 52.217-9 OPTION TO EXTEND THE TERM OF THE CONTRACT (MAR 2000)

I.12 52.222-36 EQUAL OPPORTUNITY FOR WORKERS WITH DISABILITIES. (JUL 2014)

I.13 FAR 52.222-50 COMBATING TRAFFICKING IN PERSONS (MAR 2015)

I.14 FAR 52.222-50 COMBATING TRAFFICKING IN PERSONS Alternate I (MAR 2015) ... 103

I.15 52.227-23 RIGHTS TO PROPOSAL DATA (TECHNICAL) (JUN 1987)

I.16 52.229-8 TAXES--FOREIGN COST-REIMBURSEMENT CONTRACTS (MAR 1990) ... 103

I.17 52.230-6 ADMINISTRATION OF COST ACCOUNTING STANDARDS (JUNE 2010)

I.16 52.243-7 NOTIFICATION OF CHANGES (APR 1984)

I.18 752.219-8 UTILIZATION OF SMALL BUSINESS CONCERNS AND SMALL

DISADVANTAGED BUSINESS CONCERNS (MAR 2015)

I.19 AIDAR 752.219-70 USAID MENTOR-PROTÉGÉ PROGRAM (JULY 2007)

I.20 AIDAR 752.219-71 MENTOR REQUIREMENTS AND EVALUATION (JULY 2007)

I.21 AIDAR 752.225-70 SOURCE AND NATIONALITY REQUIREMENTS (FEB 2012)

I.22 752.7037 CHILD SAFEGUARDING STANDARDS (AUG. 2016)

I.23 AIDAR 752.7013 CONTRACTOR-MISSION RELATIONSHIPS. (M/OAA-DEV-AIDAR-

18-04c) 113

PART III- LIST OF DOCUMENTS, EXHIBITS, & OTHER ATTACHMENTS

SECTION J: LIST OF ATTACHMENTS

SECTION K: REPRESENTATIONS, CERTIFICATIONS AND OTHER STATEMENTS OF

OFFERORS 116

K.1 NOTICE LISTING SOLICITATION PROVISIONS INCORPORATED BY REFERENCE

K.2 52.203-11 CERTIFICATION AND DISCLOSURE REGARDING PAYMENTS TO

INFLUENCE CERTAIN FEDERAL TRANSACTIONS (SEP 2007)

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

K.4 52.204-5 WOMEN-OWNED BUSINESS (OTHER THAN SMALL BUSINESS). (OCT 2014)

K.5 52.204-8 ANNUAL REPRESENTATIONS AND CERTIFICATIONS (OCT 2018)

K.6 52.209-2 PROHIBITION ON CONTRACTING WITH INVERTED DOMESTIC

CORPORATIONS-REPRESENTATION (NOV 2015)

K.7 52.209-5 CERTIFICATION REGARDING RESPONSIBILITY MATTERS (OCT 2015) 122

K.8 52.209-7 INFORMATION REGARDING RESPONSIBILITY MATTERS (OCT 2018) ... 124

K.9 52.215-6 PLACE OF PERFORMANCE (OCT 1997)

K.10 52.222-22 PREVIOUS CONTRACTS AND COMPLIANCE REPORTS (FEB 1999)

K.11 52.222-25 AFFIRMATIVE ACTION COMPLIANCE (APR 1984)

K.12 52.222-38 COMPLIANCE WITH VETERANS' EMPLOYMENT REPORTING

REQUIREMENTS (FEB 2016)

K.13 52.222-56 CERTIFICATION REGARDING TRAFFICKING IN PERSONS

COMPLIANCE PLAN (MAR 2015)

K.14 FAR 52.225-20 – PROHIBITION ON CONDUCTING RESTRICTED BUSINESS

OPERATIONS IN SUDAN--CERTIFICATION (AUG 2009)

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

RESTRICTEDCOMPUTER SOFTWARE (DEC 2007)

K.16 52.209-11 REPRESENTATION BY CORPORATION REGARDING A DELINQUENT

TAX LIABILITY OR A FELONY CRIMINAL CONVICTION UNDER ANY FEDERAL LAW

(FEB 2016)

K.17 52.230-1 COST ACCOUNTING STANDARDS NOTICES AND CERTIFICATION (OCT

2015)

K.18 52.230-7 PROPOSAL DISCLOSURE--COST ACCOUNTING PRACTICE CHANGES

(APR 2005)

K.19 CONTRACTOR PURCHASING SYSTEM REVIEW

K.20 SIGNATURE

SECTION L: INSTRUCTIONS, CONDITIONS, AND NOTICES TO OFFERORS

L.1 FAR 52.252-1 SOLICITATION PROVISIONS INCORPORATED BY REFERENCE (FEB

1998) 132

L.2 FAR 52.216-1 TYPE OF CONTRACT (APR 1984)

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

L.4 L.2 52.215-1 INSTRUCTIONS TO OFFERORS—COMPETITIVE ACQUISITION (JAN

2017) 133

L.5 GENERAL INSTRUCTIONS TO OFFERORS

L.6 INSTRUCTIONS FOR THE PREPARATION OF THE TECHNICAL PROPOSAL

L.7 INSTRUCTIONS FOR THE PREPARATION OF THE COST/BUSINESS PROPOSAL . 148

L.8 INSTRUCTIONS FOR THE PREPARATION OF BRANDING IMPLEMENTATION AND

MARKING PLANS

L.9 AIDAR 752.204-70 PARTNER VETTING PRE-AWARD REQUIREMENTS (FEB 2012)161

SECTION M: TECHNICAL EVALUATION CRITERIA

M.1 52.252-1 SOLICITATION PROVISIONS INCORPORATED BY REFERENCE (FEB 1998) 164

M.2 SOURCE SELECTION

M.3 AWARD WITHOUT DISCUSSIONS

M.4 TECHNICAL EVALUATION FACTORS

M.5 EVALUATION OF COST

M.6 DETERMINATION OF COMPETITIVE RANGE

M.7 CONTRACTING WITH SMALL BUSINESS CONCERNS AND DISADVANTAGED

ENTERPRISES

ACRONYMS

AAPD Acquisition & Assistance Policy Directive

ABADE Assistance in Building Afghanistan by Developing Enterprises

ACEBA Afghanistan Competitiveness of Export-Oriented Businesses Activity

ACO Administrative Contracting Officer (ACO)

ADS Automated Directives System

AIDAR Agency for International Development Acquisition Regulation

AMELP Activity Monitoring, Evaluation and Learning Plan

APPF Afghanistan Public Protection Force

ATAR Afghanistan Trade and Revenue (project)

BDS Business Development Services

BEO Bureau Environmental Officer

BIP Branding Implementation Plan

CCR Central Contractor Registration

CDCS Country Development and Cooperation Strategy

CFR Code of Federal Regulation

CLA Collaboration, Learning and Adapting

CO Contracting Officer

COR Contracting Officer’s Representative

CPFF Cost-Plus-Fixed-Fee

D&B Dun and Bradstreet, Inc.

DBA Defense Base Act

DDL Development Data Library

DEC Development Experience Clearinghouse

DESC Description

DO Development Objective

DOC Development Outreach and Communications Office

DUNS Data Universal Numbering System

EFT Electronic Funds Transfer

FAR Federal Acquisition Regulation

GAO General Accounting Office

GC General Counsel

GDP Gross Domestic Product

GIROA Government of the Islamic Republic of Afghanistan

GoA Government of Afghanistan

GPS Global Positioning System

HSPD-12 Homeland Security Presidential Directive-12

HUB Historically Underutilized Business

IEE Initial Environmental Evaluation

IFC International Finance Corporation

IR Intermediate Result

IT Information Technology

ITC International Trade Center

M&E Monitoring and Evaluation

M/IRM Office of Information Resource Management

MP Marking Plan

MEDEVAC Medical Evacuation

MEO Mission Environmental Officer

MOU Memorandum of Understanding

MS Microsoft

MSME Micro, Small and Medium-sized Enterprise

NES National Export Strategy

OIG Office of the Inspector General

OMB Office of Management and Budget

OP Operational Plan

OPPD Office of Program and Project Development

ORCA Online Representations and Certifications Application

OSDBU Office of Small and Disadvantaged Business Utilization

PDF Portable Document Format

PIV Personal Identity Verification

PPR Performance Plan and Report

PriSEC Private Sector Development Executive Committee

PWS Performance Work Statement

RFP Request for Proposals

RLO Resident Legal Officer

SAM System for Award Management

SF Standard Form

SMAF Self-Reliance through Mutual Accountability Framework

SME Small and Medium-sized Enterprise

SOO Statement of Objectives

TBD To Be Determined

TIN Taxpayer Identification Number

UNDP United Nations Development Program

US United States of America

USAID United States Agency for International Development

USAID/W USAID Washington

USG United States Government

WB World Bank

PART I – THE SCHEDULE

SECTION B: SUPPLIES OR SERVICES AND PRICES/COSTS

B.1 PURPOSE

The purpose of this contract is to procure the services of a contractor for the implementation of the activity entitled “Afghanistan Competitiveness of Export-Oriented Businesses

Activity (ACEBA).”

B.2 CONTRACT TYPE

This is a Cost-Plus-Fixed-Fee (CPFF) completion-type contract of a three-year base period and one two-year option period. For the consideration set forth below, the Contractor must provide the deliverables or outputs described in Section F in accordance with the performance standards outlined in Section C and comply with all contract requirements.

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

(a) THREE-YEAR BASE PERIOD:

The estimated cost for the performance of the work required for the three-year base period, exclusive of fixed fee, if any, is $TBD. The Fixed Fee, if any, is $TBD and the total estimated cost plus fixed fee, if any, is $TBD.

(b) TWO-YEAR OPTION PERIOD:

The total estimated cost for the performance of the work required for a two year option period, exclusive of fixed fee, if any, is $TBD. The fixed fee, if any, is $TBD and the total estimated cost plus fixed fee, if any, is $TBD.

(c) The Total estimated cost for the performance of the work required for the base period and option period (five years), exclusive of fixed fee, if any, is $TBD. The total fixed fee for the base period and the two-year option period, if any, is $TBD. The estimated cost plus fixed fee for the base period and the two-year option period, if any, is $TBD.

(d) Within the estimated cost plus all possible fee (if any) specified in paragraph (a) above, the amount currently obligated and available for reimbursement of allowable and allocable 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 provisions of this solicitation entitled “Limitation of

Funds” (FAR 52.232-22) as indicated in Section I of this contract.

(e) Funds obligated hereunder are anticipated to be sufficient through [date to be added upon award].

B.4 CONTRACT BUDGET

The budget for this contract is as follows:

Line Item Description

Three-Year Base

Period ($)

Two-Year

Option Period

Total 5

Years ($)

(Base Plus

Option

Years)

Year

Year

Year 3 Option

Year 4

Option

Year 5

Salaries and Wages $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

Fringe Benefits $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

Consultants $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

Travel/Transportation/Per

Diem

$0.00 $0.00 $0.00 $0.00 $0.00 $0.00

Allowances $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

Non-Security Equipment $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

Other Direct Cost $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

Grants under Contract* $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

Security Costs $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

Total Direct Costs $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

Indirect Costs $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

Fixed Fee (if any) $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

Total Estimated Cost $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 *The offeror must propose a minimum of 40% of their total estimated cost for Grants under Contract.

The inclusion of any costs in the above budget does not obviate the requirement for prior approval from the Contracting Officer of cost items designated as requiring prior approval by any of the terms and conditions of this contract, including the applicable cost principles (see

FAR 52.216-7 Allowable Cost and Payment (AUG 2018)); nor does it constitute a determination of allowability by the Contracting Officer of any item of cost, unless specifically stated elsewhere in this contract.

B.5 INDIRECT COSTS

B.5.1 PRIME CONTRACTOR

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

Description Rate Base Type Period

TBD TBD 1/ 1/ 1/

TBD TBD 2/ 2/ 2/

TBD TBD 3/ 3/ 3/

1/Base of Application:

Type of Rate: Predetermined/Provisional

Period:

2/Base of Application:

3/Base of Application:

B.5.2 MAJOR SUBCONTRACTOR(S)

For each of the major subcontractor(s)* and any subcontractor that proposes a Negotiated

Indirect Cost Reimbursement Agreement.

Description Rate Base Type Period

TBD TBD 1/ 1/ 1/

TBD TBD 2/ 2/ 2/

TBD TBD 3/ 3/ 3/

1/Base of Application:

2/Base of Application:

3/Base of Application:

*“Major subcontractors” are those subcontractors whose proposed cost exceeds 10% of the offeror’s total proposed cost.

B.6 INDIRECT COSTS AND ADVANCED UNDERSTANDING ON CEILINGS

B.6.1 PRIME CONTRACTOR

Ceilings are not applicable to Small Business Offerors or local organizations serving as the prime or a subcontractor.

Reimbursement for indirect costs will be at the lower of the negotiated final pre-determined rates or the following ceiling rates:

Description 2019 2020 2021 2022 2023

[Rate 1 description to be inserted] __% ___% ___% ___% ___%

[Rate 2 description to be inserted] __% ___% ___% ___% ___%

[Rate 3 description to be inserted] __% ___% ___% ___% ___%

The government will not be obligated to pay any additional amount on account of indirect costs above the ceiling rates established in the contract. This advance understanding will not change any monetary ceiling, cost limitation, or obligation established in the contract.

B.6.2 MAJOR SUBCONTRACTOR(S)

Reimbursement for indirect costs will be at the lower of the negotiated final pre-determined rates or the following ceiling rates:

Description 2019 2020 2021 2022 2023

[Rate 1 description to be inserted] __% ___% ___% ___% ___%

[Rate 2 description to be inserted] __% ___% ___% ___% ___%

[Rate 3 description to be inserted] __% ___% ___% ___% ___%

The Contractor and major subcontractor(s) will make no change in its established method of classifying or allocating indirect costs that impacts this contract without the prior written approval of the Contracting Officer

The government will not be obligated to pay any additional amount on account of indirect costs above the ceiling rates established in the contract. This advance understanding will not change any monetary ceiling, cost limitation, or obligation established in the contract.

B.7 COST REIMBURSABLE

Allowable costs will be limited to reasonable, allocable and necessary costs determined in accordance with FAR 52.216-7 Allowable Cost and Payment (AUG 2018), FAR 52.216-8

Fixed Fee (JUNE 2011), if applicable, and AIDAR 752.7003 Documentation for Payment.

(b) In addition, the requirement and conditions concerning estimated cost and funding apply as detailed in FAR 52.232-22 Limitation of Funds (APR 1984).

B.8 PAYMENT OF FIXED FEE (CPFF)

Pursuant to FAR 16.306 (d) Cost-Plus-Fixed-Fee Contracts, payment of the fixed-fee will be divided between fixed payments (twenty-five percent) and payments based on the completed

Fixed-fee Schedule (seventy-five percent). The fixed fee payable under this contract will be tied to the completion of the reports and deliverables specified in Section F.5 of the contract and in accordance with the fixed fee payment schedule.

[Selected Offeror’s Fixed Fee Schedule to be inserted at time of Award – See Section L.7.2

Instructions (b) Proposed Costs/Prices: Fixed Fee]

Both payments fixed fee and performance fee are subject to the inspection and acceptance by

USAID as specified in Section E of the same and in compliance with the terms of this contract. Upon successful completion of a deliverable, the Contractor must provide evidence of its achievement to the Contracting Officer’s Representative (COR). Upon receipt of concurrence by the COR, the Contractor shall submit an invoice for the amount of the fee associated with the deliverable.

In the event of discontinuance of the work in accordance with the clause of the contract entitled FAR 52.249-6 Termination (Cost Reimbursement), 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.

Pursuant to FAR 52.216-8 Fixed Fee, after payment of 85 percent of the fixed fee, further payment of the fee will be withheld until a reserve is set aside not to exceed 15 percent of the total fixed fee or $100,000, whichever is less.

B.9 CANCELLATION CEILING AND MULTI-YEAR CONTRACT

The costs for this contract are considered non-severable and are therefore multi-year contracts as defined in FAR 17.103 Definitions.” This contract is subject to the requirements of FAR

17.106 Procedures.

a. Performance under this contract during the second and subsequent years is contingent upon the appropriation of funds. All program years except the first are subject to cancellation. Cancellation shall occur by the dates specified below if the Contracting

Officer:

Notifies the Contractor that funds are not available for contract performance for any subsequent program year or

Fails to notify the Contractor that funds are available for performance of the succeeding program year.

b. Cancellation Ceiling:

This is a CPFF type contract where the Contractor is authorized to be reimbursed for all costs which are allowable in accordance with FAR 52.216-7 Allowable Costs and

Payment. Therefore, the Contractor will not incur any costs which would have been amortized over the life of the contract should the contract be cancelled in accordance with FAR 52.217-2 Cancellation under Multi-Year Contracts.

The Government’s liability for cancellation charges shall not exceed [$TO BE

DETERMINED BY CO]. This amount will be reduced in accordance with FAR

17.106-1(c)(1) at the conclusion of each program year, as follows:

Cancellation Dates and Ceiling:

Program Year Cancellation Date Cancellation Ceiling

Year 1 N/A N/A

Year 2 $TBD before award

Year 3 $TBD before award

Year 4 $TBD before award

Year 5 $TBD before award

[END OF SECTION B]

SECTION C: STATEMENT OF OBJECTIVES

[Selected Offeror’s Performance Work Statement will replace Statement of Objectives at the time of award execution]

I. SCOPE

This Statement of Objectives (SOO) describes the objectives of USAID/Afghanistan for an acquisition that will enhance capacities of Afghanistan exporters and micro, small, and medium-sized enterprises (MSMEs) associated with export-oriented value chains and clusters, such as carpets, marble and granite, precious stones and jewelry, textiles, and cashmere to create commercially sustainable jobs. This SOO does not state how the work is to be accomplished, but provides potential Offerors with the flexibility to develop cost-effective solutions and the opportunity to propose innovative approaches to meet the stated objectives and results.

Based on this SOO, Offerors will submit a Performance Work Statement (PWS) which describes a market-based and transaction-driven approach to achieve the objectives of the activity and economic impact of proposed interventions. The PWS must enable USAID to assess the performance of the work against specific, clear, and measurable performance standards (i.e., in terms of quality, quantity, timeliness, etc.) and show the method of assessing contractor performance against the performance standards.

II. PURPOSE

USAID seeks to provide technical assistance and services through the Afghanistan

Competitiveness of Export-oriented Businesses Activity (ACEBA), henceforth referred to as the “Activity” or “ACEBA.” The purpose of ACEBA is to enhance the competitiveness of

Afghan export-oriented businesses as a means of promoting sustainable economic growth, and increasing employment. “Competitiveness,” as defined by the World Economic Forum, is “the set of institutions, policies and factors that determine the level of productivity of a country.” This SOO allows Offerors to propose and price a solution that achieves the outlined objectives and contributes to measurable improvements in productivity factors that will facilitate greater access to international markets for Afghan exporters, promote investment in better technologies, strengthen operational and marketing capacities, and strengthen exporters’ supply chains. Special emphasis should be placed on achieving gender equality and women’s empowerment, and integration of youth . The Activity should ensure that Afghan workers have the requisite skills (workforce and entrepreneurship) to meet the demand for jobs within export-oriented value chains.

III. PERIOD AND PLACE OF PERFORMANCE

(a) Period of Performance: ACEBA’s period of performance from the date of contract award is three with one two-year option period. The Activity will build upon the results of previous USAID activities that resulted in a stronger private sector, expanded exports, and increased employment in Afghanistan. (See Annexes 1-3).

The USAID definition of ‘youth’ is those aged between 10-29, while Afghanistan defines ‘youth’ as those aged 18-35. This activity will use the USAID definition and focus on those aged between 15-29.

(b) Place of Performance. The activity will be implemented in market centers throughout

Afghanistan as security constraints permit and therefore will be flexible and adaptable to adapt to any change in country context. However, it is imperative that the exporters will be located in Kabul and four other major business hubs of Afghanistan: Herat, Mazar-e-

Sharif, Jalalabad, and Kandahar.

IV. BACKGROUND

Despite an average two-to-three percent growth in Gross Domestic Product (GDP) over the past four years preceded by a 10 year period of continuous per capita GDP growth, Afghanistan’s GDP per capita has fallen by roughly 10 percent since 2012 alone . The estimated 400,000 youth entering the labor market every year coupled with the return of over

500,000 Afghans from abroad has led to historically high unemployment rates (40 percent or higher

Since Afghanistan is highly dependent on imports in meeting its basic needs, the trade deficit has become massive (over $6.5 billion) with approximately $7.2 billion in imports against about $700 million in exports in 2017 . The reliance on imports, absence of job opportunities and growing rate of “brain drain” has stifled the ability of MSMEs to innovate and pursue competitive opportunities in regional and global markets.

There is strong empirical evidence demonstrating that increased exports leads to economic growth, private sector expansion, and job creation. By focusing on exports, countries are able to utilize their comparative advantages and concentrate investments in the most efficient sectors of the economy. International markets permit much greater business expansion and economies of scale that will lead to greater sales and job creation. Through increased exports, MSMEs in Afghanistan will be exposed to greater competition in international markets which forces them to improve productivity. This in turn will lead to a stimulation of foreign and domestic investment while encouraging technology flows and exposure to best practices in management techniques.

Afghanistan has a long history of exporting handmade carpets, precious and semi-precious gemstones, and agricultural produce. Afghanistan also has significant production of many other products which have high global demand including cashmere, silk, lamb, animal skins, marble, hing spice also known as asafoetida, and many types of handicrafts. However, decades of conflict have damaged the economy and isolated it from international markets.

Very few Afghan products are making their way into the hands of international buyers directly.

Afghan traders often sell unfinished products at below market rates to neighboring countries that conduct the value-added processing and marketing (e.g. carpet washing and cutting).

These traders do not fully see the potential benefits of investing in value-added processing of their products and would rather take advantage of immediate and tangible revenues. This has a dampening effect on Afghan businesses’ willingness to invest in producing export quality

See: https://data.worldbank.org/indicator/NY.GDP.PCAP.CD?locations=AF

UNDP Afghanistan. UNDP About Afghanistan. See:

http://www.af.undp.org/content/afghanistan/en/home/countryinfo.html IMF Country Report #18/127, May 9, 2018. See:

https://www.imf.org/~/media/Files/Publications/CR/2018/cr18127.ashx https://data.worldbank.org/indicator/NY.GDP.PCAP.CD?locations=AF http://www.af.undp.org/content/afghanistan/en/home/countryinfo.html https://www.imf.org/~/media/Files/Publications/CR/2018/cr18127.ashx finished goods. Moreover, due to political reasons, neighboring countries regularly close their borders for Afghan exporters resulting in substantial delays and additional costs, because traditionally, land routes to neighboring country ports were the primary mode of transporting goods. This limited access to regional and international markets by a broad swath of Afghan

MSMEs reinforces their lack of marketing knowledge and commitment to invest in value-added processing.

The specific challenges that Afghanistan exporters and MSMEs face today include, but are not limited to the following:

1. Limited understanding of and capacity to meet Afghanistan’s export and target countries’ import regulatory requirements.

2. Limited understanding of the international market demand and lack of appropriate firm-level export strategies to capitalize on opportunities.

3. Insufficient marketing, distribution, and product development capacities to meet international market requirements (quality, consistency, packaging, etc.)

4. Weak value chains and enterprise clusters

5. Lack of access to appropriate equipment and new technologies.

6. Variable quality of Afghan business development service (BDS) providers and business associations and a lack of willingness among businesses to pay for their services.

7. Mismatch between labor market skills and the needs of MSMEs.

8. Inadequate access to appropriate finance.

9. Limited availability of job placement, career counseling, and entrepreneurship support services for youth.

This Activity links directly to USAID/Afghanistan’s 2019 – 2023 Country Development

Cooperation Strategy (CDCS):

Development Objective 1 (DO1) "Private Sector-Driven and Export-led Economic

Growth Accelerated”;

● Intermediate Result (IR) 1.1: “International Trade and Connectivity Increased”

○ Sub-IR 1.1.3 “Export Promotion Improved:"

● IR1.2 “Competitiveness of Value Chains Increased”;

○ Sub-IR 1.2.1 Commercial Viability of Businesses Increased”;

● IR 1.3: “Employment Opportunities Increased”. (See Annex 4).

The central focus of the USAID/Afghanistan’s Plan for Transition Strategy is improving opportunities for private sector-led economic growth to replace donor assistance and increase

Government of Afghanistan (GoA) revenue. The strategy also recognizes the GoA’s commitment to promote employment opportunities as an essential component in achieving sustainable economic growth.

The activity is also linked to the priorities of the Government of Afghanistan. The vision of the new Afghanistan’s 2018-2022 National Export Strategy (NES) is “Peace through

Prosperity, Prosperity through Trade.” (See Annex 4) The focus of this comprehensive five-year strategy is positioning export competitiveness as a mean of fostering overall growth.

A cluster is a geographic concentration of interconnected businesses, suppliers, and associated institutions in a particular field. Clusters can lead to increases in firm-level productivity and increase a company’s ability to compete.

The NES identified major export sectors and designed strategic paths to activities that achieve faster economic results and build confidence, with special emphasis on small and medium-sized enterprise development. The Activity will directly contribute to achieving the

NES Strategic Objective 1: Nurture emergency of a productive, resilient private sector known for quality and innovative products, and the Strategic Objective 3: Enhance in-market support and strengthen enterprise capabilities to harness information and market intelligence.

The 2017 – 2021 Afghanistan National Peace and Development Framework focuses on increasing governmental self-reliance and the overall welfare of the Afghan people on the premise of building a productive and broad-based economy that creates jobs. It aims to change the structure of the economy from one of import and distribution to one based on a thriving private sector that can manufacture a full range of domestic goods and successfully export Afghan products to regional and global markets.

The 2015 Self-Reliance through Mutual Accountability Framework (SMAF ) consolidates the Tokyo Mutual Accountability Framework and the 2014 Realizing Self-Reliance

Commitments to Reforms and Renewed Partnerships paper. SMAF Area 5 emphasizes the goal of enabling the environment for private sector development and investments leading to energizing of productive sectors in the economy, including extractives, and services for inclusive economic growth and development.

V. PERFORMANCE GOAL, OBJECTIVES, AND TARGETS

The overarching goal of this Activity is to expand Afghanistan’s exports and create sustainable full-time jobs through stimulating the market-driven growth of Afghan MSMEs associated with export-oriented value chains and enterprise clusters in the country.

The development hypothesis behind this activity is: If export-oriented or export willing

Afghan MSMEs are able to increase their understanding of export procedures; have access to information about foreign market preferences and import requirements; are able to access the necessary capital for improving processes and infrastructure to meet the requirements of an export-oriented strategy; are assisted to adapt their products to meet foreign market expectations; and are linked with motivated international buyers, Then, these MSMEs will improve their productivity and the quality of their products; they will be able to gear their supply chains to meet the demand; they will create new jobs; they will increase sales; and

Afghanistan will accelerate its economic development and decrease its trade deficit.

The Activity will work with current exporters that are willing to expand or diversify their exports; MSMEs with a good record of domestic sales that have capacity and interest to export; and value chain actors that support the above identified exporters (e.g., input suppliers, distributors, logistics companies, financial institutions, BDS providers, business associations, and others). The Activity may also partner with local organizations to provide demand-driven entrepreneurship support services.

End of Activity Results:

See: http://extwprlegs1.fao.org/docs/pdf/afg148215.pdf

See: https://www.mofa.go.jp/mofaj/files/000102254.pdf http://extwprlegs1.fao.org/docs/pdf/afg148215.pdf https://www.mofa.go.jp/mofaj/files/000102254.pdf

Results from USAID and other donors’ activities and studies in Afghanistan and in other countries with similar business ecosystems were taken into account when defining the expected results of the Activity.

Over a five-year period, the $105 million USAID’s Assistance in Building Afghanistan by

Developing Enterprises (ABADE) created 17,800 full-time sustainable jobs . By sustainable we mean jobs that will sustain after the life of the activity. The $98 million World Bank and

IFC Special Economic Zone support project facilitated $113 million investments that resulted in 15,000 jobs in Bangladesh, and 14,000 jobs were created as a result of $129.8 million

WB’s value chain support project in Madagascar.

According to ITC/Trade Map data Afghanistan’s total export grew at 9 percent annually from

$429 million in 2012 to $596 million in 2016, while export of non-agriculture products (excl.

fruits, nuts and vegetables) grew at 15 percent annually from $153 million in 2012 to $272 million in 2016

At a minimum, the Contractor must provide support to the following value chains: Carpets, Precious Stones and Jewelry, Marble and Granite, and Cashmere and at a minimum must achieve the following results by the end of the base period:

● Increase of 8,000 full-time equivalent employment in beneficiary firms, including

5,000 youth and 2,000 women (Standard Indicator EG.5-2).

● Exports increased by at least 25 percent for each targeted value chain (export sector).

● Targeted exporters’ sales increased by an average of 40 percent (Standard Indicator

EG.5-1).

● An average 25 percent increase in sales for MSMEs, other than exporters, supported within the targeted value chains. (Standard Indicator EG.5-1)

If the option period is allowed, the Contractor at a minimum must achieve the following results by the end of the option period (these results reflect the total results expected from the base period and the option period combined):

● Increase of 18,000 full-time equivalent employment in beneficiary firms, including

8,000 youth and 5,000 women (Standard Indicator EG.5-2).

● Exports increased by at least 50 percent for each targeted value chain (export sector).

● Targeted exporters’ sales increased by an average of 70 percent (Standard Indicator

EG.5-1).

● An average 50 percent increase in sales for MSMEs, other than exporters, supported within the targeted value chains. (Standard Indicator EG.5-1)

In pursuit of the activity’s overarching goal and End of Activity Results, the Contractor must achieve the following performance objectives and intermediate results identified by USAID.

See: Attachment J.1a: Annex 1: Assistance in Building Afghanistan by Developing Enterprises Project Final

Report, October 2012-July 2018.

See: http://www.worldbank.org/en/results/2013/04/03/developing-competitiveness-increasing-productivity-creating-jobs-and-reducing-inequality

See: https://www.trademap.org/Product_SelCountry_TS.aspx?nvpm=1|004||||TOTAL|||2|1|1|2|2|1|1|1|1 http://www.worldbank.org/en/results/2013/04/03/developing-competitiveness-increasing-productivity-creating-jobs-and-reducing-inequality http://www.worldbank.org/en/results/2013/04/03/developing-competitiveness-increasing-productivity-creating-jobs-and-reducing-inequality

Objective 1: Exporters’ Linkages with International Markets Strengthened

Specific results to be achieved under this objective will include, but not be limited to the following:

● targeted export value chain analyses with assessments of formal and informal exports and recommendations for legalization of informal exports are updated or prepared;

● exporters’ ability to meet regulatory requirements is improved; exporters’ import/export processing time and cost reduced; exporters’ participation in international trade events and one to one meetings with potential buyers increased;

● exporter’s understanding of market/buyers’ requirements for their products improved; exporters’ network of international buyers diversified and expanded;

● BDS providers have the ability to support exporters through tailored assistance.

Objective 2: Capacity of Targeted Afghan Exporters Enhanced

Specific results achieved under this objective will include, but not be limited to the following:

● the targeted exporters identify firm-level factors that have challenged them in generating and maintaining growth in exports and develop and implement tailored firm-level export strategies;

● exporters are aware of and able to comply with international market requirements and product standards; exporters invest in and improve their business processes, operations, management, technologies, quality control and marketing;

● exporters are able to meet the requirements for accessing credit from local and/or international financial institutions.

Objective 3: Targeted Value Chains Strengthened

Specific results achieved under this objective will include, but not be limited to the following:

● major constraints within targeted exporters’ supply chains which limit exporters’ access to reliable and consistent supply of high quality inputs, are identified and mitigated;

● exporters’ linkages and relationships with supply chain MSMEs strengthened and enhanced; MSMEs and exporters invest in and improve MSMEs’ business processes, operations and management practices, technologies, and quality control;

● business associations (e.g., Afghanistan Exporter’s Club) are able to capably support and advocate for exporters and associated value chain actors to increase sales and productivity and enhance business environment; Public-

Private mechanisms such as the GoA’s Private Sector Development Executive

Committee (PriSEC) are better able to respond to private sector reform priorities that are favorable to export value chains;

● BDS providers have improved capacity to respond to the needs of exporters and other value chain actors; MSMEs’ access to finance improved;

● career counselling, job placement services, and entrepreneurial support for youth improved.

VI. Partnership Approach – Grants Under Contract (See Section H.45)

The Contractor will be authorized to use grants under contract (GUCs) to issue grants to support the activities under the relevant components of the ACEBA. The Contractor must reserve a minimum of 40 percent of total project funds for grants under contract to locally registered for-profit and nonprofit organizations. Groups not registered with the Government of Afghanistan, specifically non-governmental organizations not registered with Ministry of

Economy, will not be eligible for grants under contract (See ADS 302.3.4.13). USAID must be significantly involved in establishing grants guidelines and selection criteria and must approve the grant recipients in accordance with the approved Grants Manual, to be submitted in accordance with Section F.5. All requirements that apply to USAID-executed grants in

ADS 302.3.4.13, will also apply to grants executed by the contractor. USAID does not authorize contractors to execute or administer agreements on its behalf.

The Contractor must set-aside funds for grants under contract and subcontracts to support activities under the three objectives of the Activity. These set-aside funds may also support cost of assessments and research of Afghanistan’s export market and its potential and analyses of export-oriented value chains as deemed necessary by the contractor to inform activity’s implementation. These reports will also be shared with Afghanistan private sector, GoA, and other donors to inform their strategies and activities. Grants benefiting for-profit firms should be market driven, inclusive, competitive, and require a minimum of 40 percent cost share contribution from a benefiting company or organization.

VII. OPERATING CONSTRAINTS AND GENERAL CROSS-CUTTING

REQUIREMENTS

a) Business Enabling Environment: Afghanistan’s economy is a complex mix of informal, formal, illicit, and assistance sustained elements, the product of a decades-long convergence of protracted conflict, low government capacity, foreign interference, and donor dependence. The formal Afghan private sector suffers from the trade and competition barriers of a landlocked country surrounded by often uncooperative neighbors, as well as slow progress in increasing productivity and value. Economic growth is also constrained by crippling government bureaucracy and trade policies, poor infrastructure, infant industries and undeveloped business development services. The PWS will be expected to identify opportunities within the local context that will help exporters and other MSMEs to mitigate these constraints and challenges.

b) Security: The security environment in Afghanistan continues to be challenging and will have an impact on implementation of the Activity. The PWS must incorporate a description of how the implementation methodology has been developed to mitigate, to the extent possible, the constraints that the security situation places upon implementation.

c) Budget: Activity funding will be approved annually through the USAID/Afghanistan

Operational Plan (OP). The activity will be expected to provide adequate budget, narrative, and results information to meet the planning and reporting demands of the Mission’s CDCS.

d) Coordination: The Activity must consistently and effectively coordinate with USAID and other donor funded private sector support and export promotion activities (see Annex 5) as well as relevant local public and private sector players to the greatest extent possible to avoid duplication, ensure complementarity, create synergies, and maximize impact.

e) Market Distortion: USAID assistance to the private sector must promote competition, prevent market distortion, and avoid favoritism. Support to exporters, value chain actors, BSP and business associations must encourage competition among them and avoid any activities that may hinder private sector initiatives or distort the market.

f) Local Capacity/Sustainability: USAID emphasizes the importance of the utilization of local systems. Emphasis must be placed on the human and institutional capacity development of local institutions/companies by taking a facilitation role and delivering the majority of assistance through existing local business associations, business service providers, education institutions, and academia. Partnerships with local and/or regional institutions and advisors must be used to the greatest extent possible.

Sustainability must be considered a top priority. Host country partners and beneficiaries must be empowered and have the capacity to take ownership of development processes and maintain the activity’s results and impacts beyond its life. To implement the interventions envisioned in this activity, the contractor must work with Afghan businesses directly and where possible through export-oriented business service providers and associations, with the objective of strengthening critical business processes and competencies.

g) Innovation: USAID promotes innovation in the design and implementation of interventions to enhance development impact (e.g. building on the initiative and lessons learned from the USAID Global Development Lab https://www.usaid.gov/GlobalDevLab), Global Development Alliance (https://www.usaid.gov/gda), and Development Credit

Authority (https://www.usaid.gov/what-we-do/economic-growth-and-trade/development-credit-authority-putting-local-wealth-work), enhancing public private partnerships, new technologies, utilization of local Afghan human and institutional expertise, and other innovative initiatives.

h) Internationally Recognized Best Practices and Lessons Learned: ACEBA must incorporate internationally recognized best practices into the implementation of all of its interventions related to firm’s competitiveness, value chain development and trade promotion. ACEBA must examine lessons learned from past and current donor-funded private sector support and export facilitation activities in Afghanistan to ensure that it addresses and avoids repeating previous mistakes. (See Annexes).

i) Knowledge Management: The PWS must incorporate a knowledge management approach that promotes learning and exchange with relevant institutions and stakeholders to encourage innovation and sound…