RFP_72030619R00007.pdf

RFP Number 72030619R00007 RFP Title Air Export Program (AEP) RFP Issuance Date March 14, 2019 Questions Due Date and Time March 28, 2019, 17:00 Eastern Standard Time Closing Date April 23, 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 Air Export Program (AEP) in Afghanistan. Subject to availability of funds, the estimated cost range for this contract is between $85 million and $96 million. The principal geographic code for this contract is 935. The North American Industry Classification System (NAICS) code for this acquisition is 541990. The small business size standard is $15,000,000.

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.

In response to this Request for Proposal (RFP), offerors will submit a Performance Work Statement (PWS) which will replace the Statement of Objectives (SOO) in Section C.

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

Table of contents

ACRONYMS

PART I – THE SCHEDULE

SECTION B: SUPPLIES OR SERVICES AND PRICES/COSTS

SECTION C: STATEMENT OF OBJECTIVES

SECTION D: PACKAGING AND MARKING

SECTION E: INSPECTION AND ACCEPTANCE

SECTION F: DELIVERIES OR PERFORMANCE

SECTION G: CONTRACT ADMINISTRATION DATA

PART II – CLAUSES

SECTION H: SPECIAL CONTRACT REQUIREMENTS

SECTION I: CONTRACT CLAUSES

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

SECTION J: LIST OF ATTACHMENTS

SECTION K: REPRESENTATIONS, CERTIFICATIONS AND OTHER STATEMENTS OF

OFFERORS

SECTION L: INSTRUCTIONS, CONDITIONS, AND NOTICES TO OFFERORS

SECTION M: TECHNICAL EVALUATION CRITERIA

ACRONYMS

AAPD Acquisition & Assistance Policy Directive AEP Air Export Program ACO Administrative Contracting Officer (ACO) ACAA Afghan Civil Aviation Authority ADS Automated Directives System AIDAR Agency for International Development Acquisition Regulation AMELP Activity Monitoring, Evaluation and Learning Plan ANSP Afghanistan National Security Forces APPF Afghanistan Public Protection Force ATAR Afghanistan Trade and Revenue (project) ASYCUDA Automated System of Customs Data AWP Annual Work Plan BEO Bureau Environmental Officer BIP Branding Implementation Plan CAS Cost Accounting Standards CCN Cooperating Country National CDCS Country Development and Cooperation Strategy CF Coalition Forces CFAO Cognizant Federal Agency Official CFR Code of Federal Regulation CIO Chief Information Officer CO Contracting Officer COR Contracting Officer’s Representative CPARS Contractor Performance Assessment Reporting System CPC Critical Priority Country CPFF Cost-Plus-Fixed-Fee DBA Defense Base Act DDL Development Data Library DEC Development Experience Clearinghouse DO Development Objective DOC Development Outreach and Communications Office DOD Department of Defense DUNS Data Universal Numbering System EMMP Environmental Mitigation and Monitoring Plan EPZ Export Processing Zone eSRS Electronic Subcontracting Reporting System FAPIIS Federal Awardee Performance and Integrity Information System FAR Federal Acquisition Regulation FISMA Federal Information Security Management Act FIPS Federal Information Processing Standards FOIA Freedom of Information Act FSN Foreign Service National GAAS Generally Accepted Auditing Standards GAO General Accountability Office GIROA Government of the Islamic Republic of Afghanistan GoA Government of Afghanistan GPS Global Positioning System HG Host Government

HUB Historically Underutilized Business IEE Initial Environmental Evaluation IDF Indirect Fire IED Improvised Explosive Device IPN Implementing Partner Notices IR Intermediate Result IRS Internal Revenue Service IT Information Technology LOA Letters of Authorization LOE Level of Effort M&E Monitoring and Evaluation M&M Mitigation and Monitoring MP Marking Plan MEDEVAC Medical Evacuation MEO Mission Environmental Officer MoIC Ministry of Industry and Commerce MOU Memorandum of Understanding MP Marketing Plan MS Microsoft MSME Micro, Small and Medium-sized Enterprise NDAA National Defense Authorization Act 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 OSDBU Office of Small and Disadvantaged Business Utilization PDF Portable Document Format POA&M Plan of Action and Milestones PIRS Performance Indicator Reference Sheets PII Personally Identifiable Information PLSO Partner Liaison Security Officer PPR Performance Plan and Report PPIRS Past Performance Information Retrieval System PWS Performance Work Statement QASP Quality Assurance Surveillance Plan R&R Rest and Recuperation RCE Request for Categorical Exclusion RFP Request for Proposals SAM System for Award Management SB Small Business SF Standard Form SMAF Self-Reliance through Mutual Accountability Framework SOO Statement of Objectives SPOT Synchronized Pre-deployment and Operational Tracker SP Special Publications

STEP SMART TRAVELER ENROLLMENT PROGRAM

STTA Short-Term Technical Assistance TBD To Be Determined TCN Third Country National

TIN Taxpayer Identification Number ToS Terms of Service

TRAINET TRAINING AND RESULTS AND INFORMATION NETWORK

US United States of America USAID United States Agency for International Development USAID/W USAID Washington USG United States Government WTO World Trade Organization

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 “Air Export Program (AEP).”

B.2 CONTRACT TYPE

This is a performance-based completion-type Cost-Plus-Fixed-Fee (CPFF) contract of a three-year base period and one two-year option period. For the consideration set for the below, the Contractor will provide the performance deliverables or outputs described in Sections C and F, in accordance with the performance standards specified in Section E.

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 contract 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

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

Sub-contracts $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

*To include cost for proposed security equipment and security-related communication equipment. For further information on types of potential proposed security equipment, see Section L.7.2 Instructions: (b) Proposed Costs/Prices Part 3. Budget Line Item Definitions and Illustrations 8. Security Costs. Please note that USAID may provide UUSG-owned and furnished security equipment, if available, (including helmets, armored vests, satellite phones, GPS equipment, etc) and USG-owned armored vehicles to the Contractor, if available.

However, as it is not known at this time whether this equipment will be available, offerors should include these costs, if applicable, in the cost proposal. Should these items become available at a later date at or after contract execution, then the budget will be adjusted accordingly.

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:

Type of Rate: Predetermined/Provisional Period:

3/Base of Application:

Type of Rate: Predetermined/Provisional Period:

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:

Period:

2/Base of Application:

Period:

3/Base of Application:

Type of Rate: Predetermined/Provisional Period:

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

B.6 INDIRECT COSTS AND ADVANCED UNDERSTANDING ON CEILINGS

B.6.1 PRIME CONTRACTOR

Ceilings are not applicable to Small Business Contractors 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 for activity deliverables (twenty-five percent) and fixed payments based on the completed performance deliverables (seventy-five percent) found in the Fixed-Fee Schedule. 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 (See Section L.7.2- Cost Instructions (b)- Proposed Costs/Prices Part 3. Budget Line Item Definitions and Illustrations 11. Fixed Fee, for required template).

[Selected Offeror’s Fixed Fee Schedule to be inserted at time of Award]

All fixed fee payments 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 in accordance with performance standards specified in Section E 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

This is a multi-year contract as defined in FAR 17.103. Therefore, this contract is subject to the requirements of FAR 17.106. n the event that the Government cancels requirements for services in subsequent program years under this contract, the following conditions will apply:

[Amount and dates to be filled in at time of award]

Cancellation Dates:

Contract Year 2: DATE TBD, [Award year + 1 year] Cancellation Ceiling: TBD

Contract Year 3: DATE TBD, [Award year + 2 years] Cancellation Ceiling: TBD

Contract Year 4: DATE TBD, [Award year + 3 years] Cancellation Ceiling: TBD

Contract Year 5: DATE TBD, [Award year + 4 years] Cancellation Ceiling: TBD

The cancellation dates and ceiling amounts will be established at the time of award. The amounts will be based on the nonrecurring costs to be incurred by the awardee, which would be applicable to, and which normally would be amortized over the life of the contract, and the items or services to be furnished under the multi-year requirement. This is a CPFF type contract, pursuant to which all costs for which the contractor seeks reimbursement must be allowable in accordance with FAR 52.216-7, “Allowable Costs and Payment.”

[END OF SECTION B]

SECTION C: STATEMENT OF OBJECTIVES

[Selected Contractor’s Performance Work Statement will replace Statement of Objectives at the time of award execution, and will include relevant paragraphs of

Section C below]

I. SCOPE

This Statement of Objectives (SOO) describes the objectives of USAID/Afghanistan for an activity that will result in significant boost in export of Afghan goods, generation of new employment, reduction of trade deficit, and sustained economic growth and welfare of Afghan citizens. 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 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. See Section L.6(c)(2) 2.1 PWS.

II. PURPOSE

USAID seeks to provide technical assistance and advisory services through the “Air Export Program (AEP)” activity, henceforth referred to as the “Activity” or “AEP.” The purpose of this three-year base period and one two-year option period activity is to support export facilitation that will lead to increased income for Afghan exporters and generate new jobs.

This will be achieved through interventions aimed at improving air cargo policies and procedures, and attracting private investment in developing and operating export processing areas such as Export Processing Zones (EPZs) and modernizing Afghan airports.

III. BACKGROUND

Afghanistan is a landlocked country. Its geopolitical position and security situation continue to pose a serious obstacle for Afghanistan for accessing regional and global markets. In addition, transportation of Afghan goods to international export destinations through ground transport is exacerbated by a myriad of complex issues, ranging from poor road infrastructure, red tape barriers imposed by neighboring countries, attacks by insurgents, rent-seeking behavior on the part of Afghan security forces, customs inefficiencies and other related factors that make Afghan exports through ground transportation inefficient, expensive, and insecure. These circumstances stimulate smuggling and illegal exports, and contribute to lost opportunities and a huge and unsustainable trade deficit.

Historically, Afghanistan has been a major exporter of products to Asia and the Middle East.

It is renowned for its beautiful handmade products, such as carpets, precious and semi-precious gemstones, cashmere, and silk; and specialty food items, including dried fruits and nuts, spices, saffron, fresh grapes, and pomegranates. In addition, Afghanistan has over $900 billion in untapped raw natural resources including copper, iron, minerals, natural gas, and oil. The financial potential of these untapped resources and high-end exports is critical for the country’s future economic growth and sustainability. Overall the country is showing amazing progress with exports, which surpassed $750 million in 2017, up from $500 million in 2016, with an additional 25 percent increase expected in 20181. Over the same period, air cargo exports have more than doubled, from 1,877 tons in 2016 to more than 4,200 tons in 2017, with the total value of exported goods jumping by 55 percent, from $249 million to $391 million in 2017.2

The rationale for shifting from ground transport to air transport is clear: in 2016 only 27 percent of Afghanistan exports were transported by air cargo, while in 2017 over 50 percent of products were exported via this method, leading to increased revenue. These figures clearly demonstrate the economic power that air cargo can have for the country. To support the objective of boosting Afghan exports through air transport, USAID/Afghanistan’s Air Export Program will focus on supporting the expansion and growth in five market centers where major airports are located – Kabul, Kandahar, Mazar, Herat, and Jalalabad where major airports are located. The support will include opening windows of trade through improving airports located in these major market centers and accelerating exports of Afghan products through air corridors.

The Activity will build upon the results of USAID’s Afghanistan Trade and Revenue (ATAR) activity3 that represented a substantial USAID commitment to supporting GoA authorities in developing pro-export policies, expanding exports through improving air transport infrastructure and effective implementation of World Trade Organization (WTO) legislation, and increasing trade and investment opportunities in Afghanistan.

One of the top priorities of the GoA is to increase regional trade and expand exports to achieve sustainable economic growth. Recognizing the potential of legal trade in terms of creating employment and increasing private investment (including Foreign Direct Investment (FDI)), the GoA intends to initiate several major projects under the new National Export

1 Automated System of Customs Data (ASYCUDA) managed by Afghanistan Customs Department.

2 Id.

3 ATAR final report attached as Attachment J.1a_SOO Annex 1.

Strategy (NES)4. In line with both the NES and the U.S. South Asia Strategy5, a major effort of the GoA is to develop and increase air transport capacity of the five major airports listed above, as a reliable channel to increase exports, jobs, and revenue. The Activity is linked to the priorities of the GoA of Afghanistan. The vision of the new Afghanistan’s 2018-2022 NES is “Peace through Prosperity, Prosperity through Trade.” The focus of this comprehensive five-year strategy is positioning export competitiveness as a mean of fostering overall growth. 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 2: Foster the development of a conducive business and investment climate; and Strategic Objective 3: Enhance in-market support and strengthen enterprise capabilities to harness information and market intelligence.

In addition to targeted technical assistance to GoA counterparts, a key aspect of AEP will be to leverage investment primarily from private sector interested in investing in the development of the necessary infrastructure in and around these airports to facilitate exports and create much needed jobs. Global connectivity of Afghanistan is a key factor for improving the Afghan brand internationally and increasing demand for Afghan goods in global markets. It is expected that USAID investments through this activity will generate millions of dollars of private investment funding in developing airport infrastructure as well as significant and sustained increase in Afghan exports and jobs. Major airport-related infrastructure funding is expected to be leveraged from private sector investment and some from public funding. Through this activity, USAID also expects to leverage investment from GoA authorities at the central and provincial levels to ensure sustainability and ownership.

USAID will support these efforts with expert advice and technical assistance on the legal, technical, and institutional requirements for air cargo development and operationalization of EPZs as well as other necessary elements for efficient transportation of Afghan goods to international markets. These interventions may include, but are not limited to, conducting feasibility studies, master planning design studies, supporting WTO-related requirements, establishing customs one-stop-shop facilities to improve efficiency, etc.

This Activity links directly to USAID/Afghanistan’s proposed 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 1.1.2 “Export infrastructure improved”

○ Sub-IR 1.1.3 “Export promotion improved:"

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

○ Sub-IR 1.2.4 “Transportation and energy services improved”;

AEP is also linked to the GoA’s 2017 – 2021 Afghanistan National Peace and Development Framework6 which 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

4 Afghanistan’s National Export Strategy 2018-2022 “Peace through Prosperity. Prosperity through Trade”, 5 https://www.whitehouse.gov/briefings-statements/remarks-president-trump-strategy-afghanistan-south-asia/ 6 http://extwprlegs1.fao.org/docs/pdf/afg148215.pdf 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.

AEP is necessary to support this shift by ensuring that airport infrastructure is sufficient to support increased exports.

The Activity also links to the 2015 Self-Reliance through Mutual Accountability Framework7 (SMAF) consolidates the Tokyo Mutual Accountability Framework and the 2014 Realizing Self-Reliance Commitments to Reforms and Renewed Partnership8 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. AEP envisions support to the development of EPZs that will allow for greater private investment and private sector development.

IV. PERFORMANCE GOAL, OBJECTIVES, AND TARGETS

The overarching objective of this activity is to increase Afghan exports and generate new jobs through providing targeted technical assistance and expertise in improving air cargo facilities for the Afghan private sector; supporting the establishment and operationalization of the export processing areas (e.g., EPZs) at five key major airports, which include Kabul, Kandahar, Mazar-e-sharif, Jalalabad, and Herat; and supporting the GoA in formulating and implementing a business-friendly policy framework for trade and investment in accordance with the WTO and other international standards (including adoption of international standards in food safety and implementation of a WTO-compliant food safety policies and supporting trade facilitation through implementation of standardization and certification requirements for exports), and implementing reforms and anti-corruption measures at the customs offices. AEP will support the Afghan private sector to pursue and realize the advantages of increased exports, greater regional and global trade linkages, and regional economic integration.

The development hypothesis behind this Activity is: IF the Government of Afghanistan continues to support reforms that generate export-oriented economic growth and to improve the business environment to attract the private sector in developing and operating export processing areas (such as EPZs) in major Afghan airports; if the quality of Afghan products meets international standards demanded in the international marketplace; if there is an efficient way to transport Afghan goods to market destinations in a transparent manner; if the opportunities for rent-seeking behavior on the part of Afghan officials involved with clearing Afghan exports in airports is reduced; THEN, Afghan exports will increase significantly thus generating more demand, increasing production and productivity, generating new jobs, and contributing to accelerated and sustained economic growth, reduced trade deficit, and improved welfare for Afghans.

The Activity will work with GoA counterparts, business associations, other donors and stakeholders engaged in improving enabling environment for export-focused private sector-led economic growth by boosting air exports through significant investment and improvements in major Afghan airports. The Activity may also partner with local organizations to provide demand-driven export-related support services.

7 https://www.mofa.go.jp/mofaj/files/000102254.pdf 8 http://afghanistan-un.org/2014/12/realizing-self-reliance-commitments-to-reforms-and-renewed-partnership/

The specific challenges that Afghanistan exporters face and that AEP is expected to touch on at some level include, but are not limited to the following:

● Lack of adequate airport infrastructure

● Inordinately high opportunities for corruption (e.g., customs collections)

● Lack of proper facilities to finish and package export products for transport

● Lack of understanding of WTO-specific requirements, including an understanding of quality standards for international markets

● Policy constraints that prohibit export of certain products (i.e., rough cut gems, unprocessed marble, etc.)

● Absence of freight forwarders or other expert enablers for export products

End of Activity Results:

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.

At a minimum, the Contractor must coordinate with and/or provide support to the following institutions: Ministry of Finance – Customs Administration; Afghan Civil Aviation Authority (ACAA); Ministry of Industry and Commerce (MoIC); Afghanistan Exporters Club;

Afghanistan Chamber of Commerce and Industries (ACCI), as well as other relevant institutions, organization, and agencies as determined by USAID to be important for achieving program deliverables.

The Offeror should propose results and targets tailored to their technical approach, but the following results must be achieved by the end of the base period of the Activity:

● Air Exports increased by at least 30 percent

● Investment attracted for HKIA export processing area.

● At least 2,000 new jobs created as a result of program interventions (standard indicator EG 5-2)9

● At least three new air services agreements opened between Afghan carriers and international destinations.

● WTO-compliance is maintained.

● Customs One-Stop-Shop implemented in one additional airport.

If the option period is exercised, 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):

● Air Exports increased by at least 50 percent.

● Investment attracted to develop export processing areas and contracts signed for at least three major airports.

9 Based on NES targets and lessons learned and results from ATAR. See Afghanistan’s National Export Strategy 2018-2022 “Peace through Prosperity. Prosperity through Trade”, 2018 http://www.intracen.org/uploadedFiles/intracenorg/Content/Redesign/Projects/AAT/AFG_Main%20NES.pdf;

and ATAR final report attached as Attachment _SOO Annex 1.

● At least 5,000 new jobs created as a result of program interventions (Standard Indicator EG.5-2)

● Customs One-stop-shops in all major airports established and operational based on the one-stop shop model at the Kabul International Airport.

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

Objective 1 - Increased Air Cargo Capacity: Specific results to be achieved under this objective will include, but not be limited to the following:

● Enhancing and/or streamlining air cargo operations, including through improved security, and communications resulting in a substantial amount of Afghan goods being exported through air corridors and a significant increase of total exports.

Interventions under Objective 1 will ensure that the five major airports have the supporting systems and flight routes in place to handle increased exports.

● Expanding air services agreements with new partners in traditional and new destinations that will allow Afghan cargo to more easily reach wider markets within partner countries. For example, at the India-Afghanistan Trade and Investment show in 2018, an Afghan air carrier signed an air services agreement to allow the airline to ship cargo beyond just Delhi, India, and reach other domestic Indian markets that have a demand for Afghan goods.

In order to increase air cargo capacity, air cargo logistics and systems need to be improved at each of the five airports, including, but not limited to:

● Supporting the development of a freight forwarding sector: There is currently no private air freight forwarding company operating in the country. The government-owned National Aviation Services (NAS) is not able to adequately respond to private sector needs to transport goods. It is essential that the business enabling environment specifically for air cargo freight forwarding companies be improved.

● Improving existing air cargo facilities or development of new air cargo hubs is also needed to expedite the transport of exports to international markets.

● Under this component, the Contractor must provide technical advisory and expert services to relevant GoA counterparts to develop and implement necessary legal, technical, and regulatory framework for facilitating air cargo and opening new air corridors with export market destination countries.

Objective 2 - Increased Investment to Modernize Airports and Develop Export Processing Capabilities: Specific results to be achieved under this objective include, but not be limited to the following:

● Attracting private sector investment in developing efficient export processing areas (e.g., EPZs) in major Afghan airports and modernizing airport operations:

Interventions under this component will address inefficiencies in air cargo operations of Afghanistan's major airports and establish dedicated product finishing areas, such as EPZs, that add value to Afghan products.

● Attracting foreign investors to a secure place to preview new markets with reduced financial exposure and other risks.

● Supporting GoA authorities in conducting feasibility studies, developing master plans and action plans for airports and export processing areas or EPZs, and identifying investment needs and potentials for development and operationalization of export processing areas or EPZs.

● Creating necessary conditions and securing basic infrastructure for export processing areas or EPZs.

Objective 3 - Improved Policies and Procedures for Export Facilitation: Specific results to be achieved under this objective include, but not be limited to the following:

● Increasing demand for internationally certified, high-end Afghan products that meet required standards for exports.

● Improving the trade enabling environment with the aim of fostering increased investment, exports, cross-border trade and transit, and generating employment and growth.

● Providing legal and policy support related to WTO legislation drafting, implementation, and monitoring, capitalizing on the benefits that the WTO framework provides to increasing Afghan exports and trade connectivity.

● Reforming customs legislation policies and procedures and assisting customs department offices in major airports in implementation of customs one-stop-shops based on the successful experience with the one-stop-shop at the Kabul International Airport supported by USAID’s ATAR program.

V. OPERATING CONSTRAINTS AND CROSS-CUTTING REQUIREMENTS

The Offeror should consider incorporating the following operating constrains and cross-cutting requirements in their technical approach:

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 and poor infrastructure. The Contractor will be expected to identify opportunities within the local context that will help exporters and other MSMEs to mitigate these constraints and challenges. The Contractor will also be expected to work with GoA counterparts to identify and implement private sector-friendly policies and regulations related to export processing areas, customs administration, WTO-compliance, and airport operations.

b) Security: The security environment in Afghanistan continues to be challenging and will have an impact on implementation of the Activity. The Contractor must incorporate 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) 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 government counterparts directly with the objective of strengthening critical policies, processes and competencies.

e) Donor Coordination: USAID assistance to improve business environment and facilitate export-focused economic growth must promote international best practices in trade, competition, compliance with product standards, and business relationships. Support to policy reform related to trade, attracting investment in developing and operating Export Processing Zones, improved clearance procedures at airports, and incorporate transparency and accountability standards will result in improved competitiveness of Afghan goods internationally. To this end, the Contractor must actively look for opportunities to join efforts with other donors involved in the sector and ensure that program interventions generate synergies and avoid duplication of efforts.

f) 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.

g) Internationally Recognized Best Practices and Lessons Learned: The Contractor must incorporate internationally recognized best practices into the implementation of all of its interventions related to WTO requirements and trade promotion. The Contractor 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 Section J.1b_SOO Annex 2_List of Other USAID Trade Activities for further information).

h) Knowledge Management: The Contractor must incorporate a knowledge management approach that promotes learning and exchange with relevant institutions and stakeholders to encourage innovation and sound resource management. It must also support the sharing of lessons learned and best practices and use innovative methods to reach stakeholders.

i) Environmental Best Practices: The Contractor must comply with USAID and USG environmental procedures. An Initial Environmental Evaluation (IEE) for this Activity was approved by the Bureau Environmental Officer (BEO) on May 31, 201810. Most training and capacity building activities under this activity will likely qualify for a categorical exclusion because there will be no impact on the environment. However, some of the WTO-related requirements in terms of standardization and certification of Afghan products will require strict adherence to international best practice and therefore will require mitigation measures to be incorporated during the implementation phase.

Throughout the life of the AEP activity, the Contractor must work with Contracting Officer Representative (COR) and the Mission's Environmental Officer (MEO) to ensure that proper mechanisms are in place to monitor environmental compliance of AEP interventions where appropriate.

j) Gender Equality and Women’s Empowerment: Although women comprise 29 percent of Afghanistan’s labor force, they lack proper education and skills, and they have limited access to markets and other business assets. In addition, cultural barriers and social norms limit women’s mobility, participation in business, and interactions with men. The vast majority of existing research on women’s economic participation is related to female business owners. The barriers they face include the lack of property/land ownership, lack of access to finance, lack of education, and poor access to financial and business trainings. Women business owners experience extraordinary difficulties in penetrating and navigating many sectors and markets in Afghanistan, including local, national, and international. There is a significant amount of supply-side women-generated production that flows into various industry supply chains, from which women receive very limited benefits. In addition, the cartel-type of business behavior that is found across various sectors in Afghanistan has long been controlled by men, who do not welcome women entrants. Other examples of asymmetries and disadvantages not mentioned above may be taken into account as proposals are reviewed and considered.

USAID has emphasized commitment to gender equality in all aspects of its development programs. Interventions under this activity must address gender equality and women empowerment, including identifying opportunities to use affirmative action to support women exporters and women-owned businesses, in particular in those sectors where women comprise the bulk of the workforce and represent an important element for the success of those sectors (e.g., carpet production, jewelry, saffron). The activity must seek ways to engage men’s support in any economic empowerment opportunities aimed at women in order to avoid unintended consequences. It must support the development and growth of women’s business networks by, among other things, assisting them to strengthen their connections, knowledge sharing and business opportunities with regional and international women’s business networks, and by supporting and promoting advocacy initiatives of women business associations.

The Contractor must incorporate a Gender Action Plan into the annual Work Plan that will demonstrate a gender assessment of each policy area or intervention and how it has the potential to affect men and women differently. Under this framework, the Contractor must periodically review and update these assessments as the annual Work Plan is updated and must include them in decision-making with the COR regarding which policy areas to focus. This must be incorporated into the AMELP, and must include indicators to measure the impact of policy reforms and other interventions on men and women traders, entrepreneurs, and clients.

10 See Attachment J.12 for IEE.

k) Youth Integration: The Contractor must focus on enabling youth to access economic and social opportunities, share in economic growth, live healthy lives, and contribute to household, community, and national well-being. The activity will build upon results of current and past USAID trade, private sector, and workforce development projects and will address both demand and supply side of youth employment. It will identify opportunities to include youth in specific activities, and encourage and support youth export-related efforts. Given the key role, challenges, and opportunities facing young people (ages 10 - 29) and ‘youth’ in particular, as defined in Afghanistan as ages 18-35, the activity will contribute to the outcomes specified in the USAID Youth in Development Policy11 .

l) Collaborating, Learning and Adapting (CLA): The Contractor must incorporate a collaborating, learning and adapting approach that: a) generates, captures, shares, and applies information and knowledge to support and improve development outcomes; b) promotes collaborative learning and exchanges with relevant institutions, stakeholders, and development partners; c) coordinates efforts to increase synergies and encourage innovations and sound resource management; and d) supports sharing lessons learned and best practices and using innovative methods to reach stakeholders (e.g. virtual knowledge management platforms.

[END OF SECTION C]

11 Available at https://www.usaid.gov/policy/youth

SECTION D: PACKAGING AND MARKING

D.1 BRANDING STRATEGY

(a) In accordance with ADS 320, USAID policy is to require exclusive branding and marking in USAID direct acquisitions using any source of funds. Contractors and Subcontractors' corporate identities or logos must not be used on USAID-funded program materials. Marking is not required on contractor vehicles, offices, office supplies or other commodities used solely for administration of the USAID-funded program. Marking is not permitted on any communications that are strictly administrative, rather than programmatic, in nature.

USAID’s identity is also prohibited on contractor and recipient communications related to award administration, such as hiring/firing of staff or renting office space and/or equipment.

(b) The contractor must develop a broad Branding Implementation Plan (BIP) and Marking Plan (MP) for the contract to describe how the program deliverables will be branded. The branding strategy for this contract, as specified in USAID ADS 320.3.2.1 is as follows:

Activity Name: Air Export Program (AEP)

Branding: The contractor must use full branding and the USAID tagline “From the American People” on materials and communications, which may be translated into local languages as appropriate. Co-branding and no branding will only be considered on a case-by-case basis as considered appropriate by the Contracting Officer’s Representative (COR) and Contracting Officer (CO).

Desired Level of Visibility: USAID’s identity must be prominently displayed on commodities or equipment; in printed, audio, visual or electronic public communications; in studies, reports, publications, web sites, and all promotional and informational products; and events.

Organizations to Acknowledge:…