72051422R00006 - Equitable Finance.pdf

Issuance Date: March 31, 2022 Questions Due Date: April 11, 2022, 17:00 Bogota Local Time Past Performance Due Date: April 25, 2022, 17:00 Bogota Local Time Full Proposal Due Date: May 9, 2022, 17:00 Bogota Local Time

Subject: Request for Proposal (RFP) No 72051422R00006, “USAID Equitable Finance” Activity

Dear Prospective Offerors:

The United States Government, represented by the United States Agency for International Development (USAID)/Colombia, is seeking proposals from U.S. or non-U.S., non-profit or for-profit organizations, to provide services to improve the supply and demand of formal financial services in rural, underserved and conflict regions, and mobilize long-term capital needed to leverage financial sector resources for USAID/Colombia’s programming priorities as outlined in the Country Development Cooperation Strategy (CDCS) and as described in the attached Request for Proposals (RFP).

The Authorized Principal Geographic Code for this solicitation is 937 – Default. The NAICS Code for this solicitation is 541611 - Administrative Management and General management Consulting Services.

USAID anticipates awarding a single Hybrid - Cost plus Fixed Fee (CPFF) Completion - Indefinite Delivery, Indefinite Quantity (IDIQ) Contract. The Total Estimated Cost-Plus Fixed Fee for services under this contract (CLIN 001 & CLIN 002) is estimated to fall within the range of $24.5 million to $28.5 million. This procurement will be conducted under Full and Open Competition procedures, pursuant to Part 15 of the Federal Acquisition Regulation (FAR) (48 CFR Chapter 1). Please refer to Section L for information regarding proposal requirements.

Offerors should consider the expected delivery time required by the proposal transmission method they choose, and they are responsible for ensuring proposals are received at USAID by the due date and time as specified in Section L. Any proposal not received by USAID by the date/time specified in this RFP will not be reviewed or evaluated. Faxed proposals are not acceptable, nor will they be reviewed or evaluated.

Section L of the RFP sets forth all instructions for the preparation and submission of required proposal contents, including critical dates/times for the submission of questions, and the proposal submission closing date and time. Section M states the criteria by which proposals will be evaluated. The competition will utilize a Highest Technical Rated with Fair and Reasonable Price and Realistic Cost (HTR) process, not a tradeoff process. In this process, USAID is concerned with getting the best technical solution that has a fair and reasonable price and realistic cost. There will not be a tradeoff to justify paying a premium for a higher technical rated proposal.

Offerors must carefully review Sections L and M of this RFP for details of this process. Section L of the RFP sets forth all instructions for the preparation and submission of required proposal contents, including critical dates/times for the submission of questions, and the proposal submission closing date and time. Section M states the criteria by which proposals will be evaluated. Oral explanations or instructions given before award of the contract that are not formalized with an amendment will not constitute a formal amendment of the RFP and will not be binding.

This RFP in no way obligates USAID to award a contract or task order nor does it commit USAID to pay any cost incurred in the preparation and submission of a proposal. Award of a Contract under this RFP is subject to availability of funds and other internal USAID approvals.

USAID expects that Offerors will have equal access to all local organizations needed to implement this contract and strongly discourages exclusivity agreements with local organizations.

This RFP can be viewed and downloaded from www.sam.gov. USAID bears no responsibility for data errors resulting from transmission or conversion processes. Further, be aware that amendments to solicitations are occasionally issued and will be posted on the same website from which you downloaded the solicitation. USAID advises to regularly check the above website for amendments.

Interested firms can register and use the Interested Vendor List (IVL) accessible through this solicitation on www.sam.gov, so that firms can contact one another for consideration of teaming arrangements and/or small business subcontracting opportunities in response to this solicitation.

Sincerely, Heather Wirick

Contracting Officer USAID/Colombia http://www.sam.gov/

SOLICITATION, OFFER AND AWARD

4. TYPE OF SOLICITATION2. CONTRACT NUMBER 3. SOLICITATION NUMBER

72051422R00006

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

ORDER UNDER DPAS (15 CFR 700)

6. REQUISITION/PURCHASE NUMBER

NOTE: In sealed bid solicitations "offer" and "offeror" mean "bid" and "bidder".

NEGOTIATED (RFP)

SEALED BID (IFB)

5. DATE ISSUED

1. THIS CONTRACT IS A RATED RATING PAGE OF PAGES

1 1

EXT.NUMBERAREA CODE

B. TELEPHONE (NO COLLECT CALLS)

10. FOR

INFORMATION

CALL:

CAUTION: LATE Submissions, Modifications, and Withdrawals: See Section L, Provision No. 52.214-7 or 52.215-1. All offers are subject to all terms and conditions contained in this solicitation.

(Date)(Hour) depository located in copies for furnishing the supplies or services in the Schedule will be received at the place specified in Item 8, or if hand carried, in the

SOLICITATION

9. Sealed offers in original and

PART IV - REPRESENTATIONS AND INSTRUCTIONS

OTHER STATEMENTS OF OFFERORS

EVALUATION FACTORS FOR AWARD

INSTRS., CONDS., AND NOTICES TO OFFERORS

REPRESENTATIONS, CERTIFICATIONS AND

LIST OF ATTACHMENTS

CONTRACT CLAUSES

PART III - LIST OF DOCUMENTS, EXHIBITS AND OTHER ATTACH.

I

J

K

L

M SPECIAL CONTRACT REQUIREMENTS

CONTRACT ADMINISTRATION DATA

DELIVERIES OR PERFORMANCE

INSPECTION AND ACCEPTANCE

PACKAGING AND MARKING

DESCRIPTION/SPECS./WORK STATEMENT

SUPPLIES OR SERVICES AND PRICES/COSTS

SOLICITATION/CONTRACT FORM

PART II - CONTRACT CLAUSESPART I - THE SCHEDULE

H

G

F

E

D

C

B

A

SEC. DESCRIPTION PAGE(S) (X) DESCRIPTION SEC. (X)

11. TABLE OF CONTENTS

18. OFFER DATE17. SIGNATURE

SUCH ADDRESS IN SCHEDULE.

IS DIFFERENT FROM ABOVE - ENTER

15C. CHECK IF REMITTANCE ADDRESS

EXT.NUMBERAREA CODE

15B. TELEPHONE NUMBER

(Type or print)AND

ADDRESS

OF

OFFEROR

CODE FACILITY

16. NAME AND TITLE OF PERSON AUTHORIZED TO SIGN OFFER15A. NAME

DATEAMENDMENT NO.DATEAMENDMENT NO.

and related documents numbered and dated):

amendments to the SOLICITATION for offerors

(The offeror acknowledges receipt of

14. ACKNOWLEDGEMENT OF AMENDMENTS

CALENDAR DAYS (%)30 CALENDAR DAYS (%)20 CALENDAR DAYS (%)10 CALENDAR DAYS (%)

(See Section I, Clause No. 52.232.8)

13. DISCOUNT FOR PROMPT PAYMENT

designated point(s), within the time specified in the schedule.

by the offeror) from the date for receipt of offers specified above, to furnish any or all items upon which prices are offered at the price set opposite each item, delivered at the

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

OFFER (Must be fully completed by offeror)

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

28. AWARD DATE

(Signature of Contracting Officer)

27. UNITED STATES OF AMERICA

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

ITEM

(4 copies unless otherwise specified)

23. SUBMIT INVOICES TO ADDRESS SHOWN IN

41 U.S.C. 253 (c) ( 10 U.S.C. 2304 (c) (

22. AUTHORITY FOR USING OTHER THAN FULL AND OPEN COMPETITION:

21. ACCOUNTING AND APPROPRIATION20. AMOUNT19. ACCEPTED AS TO ITEMS NUMBERED

AWARD (To be completed by government)

CODE

03/31/2022 REQ-514-22-000054

X

720514

USAID/Colombia Office of Acquisition & Assistance Unit 3030, Box 5101

DPO, AA 34004

34004 until 1700 ET local time 05/09/2022

601 275-4175

PAGE(S)

26. NAME OF CONTRACTING OFFICER (Type or print)

Heather Wirick

AUTHORIZED FOR LOCAL REPRODUCTION

Previous edition is unusable

STANDARD FORM 33 (Rev. 9-97)

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

See Section L

12. In compliance with the above, the undersigned agrees, if this offer is accepted within _____0_________ calendar days (60 calendar days unless a different period is inserted

A. NAME

Heather Wirick

C. E-MAIL ADDRESS

hwirick@usaid.g ov

X

X

X

X

X

X

X x x x x x

X

72051422R00006 – Equitable Finance Activity SECTION B

Table of Contents

PART I – THE SCHEDULE

SECTION B – SUPPLIES OR SERVICES AND PRICES/COSTS

B.1. PURPOSE

B.2. CONTRACT TYPE AND SERVICES

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

B.4. CONTRACT BUDGET AND CEILINGS

B.5. OTHER DIRECT COST LIMITATIONS UNDER CLIN 002

B.6. LEVEL OF EFFORT (CLIN 002)

B.7. INDIRECT COST

B.8. COST REIMBURSABLE

SECTION C – STATEMENT OF WORK

C.1. PURPOSE

C.2. BACKGROUND

C.3. COUNTRY DEVELOPMENT COOPERATION STRATEGY ALIGNMENT

C.4. OVERALL ACTIVITY VISION

C.5. TASKS

C.6. PRIVATE SECTOR ENGAGEMENT (PSE)

C.7. GENERAL ORGANIZING AND CROSS-CUTTING PRINCIPLES

C.8. ACTIVITY FUND (APPLICABLE TO CLIN 001)

C.9. SUPPLEMENTAL TECHNICAL ASSISTANCE (CLIN 002)

SECTION D – PACKAGING AND MARKING

D.1. AIDAR 752.7009 MARKING (JAN 1993)

D.2. BRANDING IMPLEMENTATION PLAN AND MARKING PLAN

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 CLAUSES INCORPORATED BY REFERENCE

F.2. PERIOD OF PERFORMANCE

F.3. PLACE OF PERFORMANCE

F.4. PERFORMANCE STANDARDS

F.5. REPORTS AND DELIVERABLES

F.6. FIXED FEE PAYMENT SCHEDULE [CLIN 001]

F.7. KEY AND NON-KEY PERSONNEL

F.8. AUTHORIZED WORKDAY/WEEK

F.9. ORDERING SUPPLEMENTAL TECHNICAL ASISTANCE CLIN 002

SECTION G– CONTRACT ADMINISTRATION DATA

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

G.2. CONTRACTING OFFICER – CONTRACTING OFFICER’S REPRESENTATIVE

G.3. CONTRACTOR’S PRIMARY POINT OF CONTACT

G.4. PAYING OFFICE

G.5. ACCOUNTING AND APPROPRIATION DATA

G.6. CONTRACTOR’S PAYMENT ADDRESS

G.7. CONTRACTING OFFICER'S AUTHORITY

G.8. TECHNICAL DIRECTION/RELATIONSHIP WITH USAID

SECTION H – SPECIAL CONTRACT REQUIREMENTS

H.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE

H.2 AIDAR 752.7007 PERSONNEL COMPENSATION (JUL 2007)

H.3 ADDITIONAL REQUIREMENTS FOR PERSONNEL COMPENSATION

H.4 AUTHORIZED GEOGRAPHIC CODE

H.5 DEFENSE BASE ACT INSURANCE RATES

H.6 EXECUTIVE ORDER ON TERRORISM FINANCING

H.7 ELECTRONIC PAYMENTS SYSTEM

H.8 SUBMISSION OF DATASETS TO THE DEVELOPMENT DATA LIBRARY

(DDL) (OCTOBER 2014)

H.9 GRANTS UNDER CONTRACTS (GUC)

H.10 USAID-FINANCED THIRD-PARTY WEB SITES (NOVEMBER 2017)

H.11 FOREIGN GOVERNMENT DELEGATIONS TO INTERNATIONAL CONFERENCES

H.12 PROHIBITION OF ASSISTANCE TO DRUG TRAFFICKERS

H.13 LIMITATION ON ACQUISITION OF INFORMATION TECHNOLOGY (APRIL 2018)

(DEVIATION NOS. M/OAA-DEV-FAR-20-3C AND M/OAA-DEV-AIDAR-20-2C) (APRIL 2020)

H.14 ENVIRONMENTAL COMPLIANCE

H.15 EXCHANGE VISITORS AND TRAINING

H.16 GOVERNMENT FURNISHED FACILITIES OR PROPERTY

H.17 INHERENTLY GOVERNMENTAL AND CLOSELY ASSOCIATED FUNCTIONS

H.18 PERFORMANCE MANAGEMENT INFORMATION SYSTEM

H.19 PRESS RELATIONS

H.20 SECURITY CONDITIONS

H.21 LIFE SUPPORT AND SECURITY SERVICES

H.22 TITLE TO AND CARE OF PROPERTY

PART II - CONTRACT CLAUSES

SECTION I – CONTRACT CLAUSES

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

I.2 752.252-2 AIDAR SOLICITATION PROVISIONS INCORPORATED BY REFERENCE (MAR 2015)

I.3 52.203-13 CONTRACTOR CODE OF BUSINESS ETHICS AND CONDUCT (NOV 2021)

I.4 52.204-1 APPROVAL OF CONTRACT (DEC 1989)

I.5 52.204-25 PROHIBITION ON CONTRACTING FOR CERTAIN TELECOMMUNICATION AND

VIDEO SURVEILLANCE SERVICES OR EQUIPMENT (AUG 2020)

I.6 52.216-18 ORDERING (AUG 2020) (CLIN 002)

I.7 52.216-19 ORDER LIMITATIONS (OCT 1995) (CLIN 002)

I.8 52.216-22 INDEFINITE QUANTITY (OCT 1995) (CLIN 002)

I.9 52.223-9 9 ENSURING ADEQUATE COVID-19 SAFETY PROTOCOLS FOR FEDERAL

CONTRACTORS (OCT 2021)-ALTERNATE 70 (OCT 2021) (M/OAA-DEV-FAR-22-01C)

I.10 52.229-8 TAXES – FOREIGN COST-REIMBURSEMENT CONTRACTS

I.11 52.244-2 SUBCONTRACTS (JUNE 2020)

I.12 52.247-67 SUBMISSION OF TRANSPORTATION DOCUMENTS FOR AUDIT. (FEB 2006)

I.13 752.229-71 REPORTING OF FOREIGN TAXES

PART III – DOCUMENTS AND OTHER ATTACHMENTS

SECTION J - LIST OF DOCUMENTS, EXHIBITS AND OTHER ATTACHMENTS

J.1. TECHNICAL LINKS FOR REFERENCE

J.2. ACRONYMS LIST

J.3. BRANDING AND MARKING TEMPLATE

J.4. CONTRACTOR PERFORMANCE REPORT - SHORT FORM

J.5. BUDGET GUIDANCE AND TEMPLATE

J.6. AMELP TEMPLATE

J.7. AMELP GUIDANCE

J.8. INITIAL ENVIRONMENTAL EXAMINATION (IEE)

J.9. GUIDANCE FOR MONITORING USAID/COLOMBIA’S ENGAGEMENT WITH STAKEHOLDERS

J.10. IMPACT AND PERFORMANCE EVALUATION OF THE USAID/COLOMBIA RURAL FINANCE

INITIATIVE (RFI)

J.11. REGIONAL INTEGRATION STRATEGY GLOSSARY

J.12. ASSESMENT OF STATUS AND CHALLENGES OF FINANCIAL INCLUSION IN COLOMBIA

BETWEEN 2016 AND 2021 (EXECUTIVE SUMMARY)

J.13. ASSESMENT OF STATUS AND CHALLENGES OF FINANCIAL INCLUSION IN COLOMBIA

BETWEEN 2016 AND 2021 (ENGLISH VERSION)

J.14. ASSESMENT OF STATUS AND CHALLENGES OF FINANCIAL INCLUSION IN COLOMBIA

BETWEEN 2016 AND 2021 (SPANISH VERSION)

J.15. ASSESMENT OF STATUS AND CHALLENGES OF FINANCIAL INCLUSION IN COLOMBIA

BETWEEN 2016 AND 2021 – FINANCIAL PAPERS REPOSITOTY

J.16. PRIVATE SECTOR MAPPING IN USAID PRIORITY MUNICIPALITIES IN COLOMBIA

(SPANISH VERSION ONLY)

J.17. SECTION 889 RULE GUIDANCE

J.18. BIOGRAPHICAL DATA SHEETS

J.19. SMALL BUSINESS SUBCONTRACTING PLAN TEMPLATE

J.20. NON-U.S. ORGANIZATION PRE-AWARD SURVEY GUIDELINES AND SUPPORT

J.21. STANDARD INDICATORS

PART IV – REPRESENTATION AND INSTRUCTIONS

SECTION K – REPRESENTATIONS, CERTIFICATIONS AND OTHER STATEMENTS OF OFFERORS

K.1. NOTICE LISTING SOLICITATION PROVISIONS INCORPORATED BY REFERENCE

K.2. 52.204-8 ANNUAL REPRESENTATIONS AND CERTIFICATIONS (NOV 2021)

K.3. 52.204-24 REPRESENTATION REGARDING CERTAIN TELECOMMUNICATIONS AND VIDEO

SURVEILLANCE SERVICES OR EQUIPMENT (NOV 2021)

K.4. 52.204-26 COVERED TELECOMMUNICATIONS EQUIPMENT OR SERVICES-

REPRESENTATION. (OCT 2020)

K.5. 52.209-7 INFORMATION REGARDING RESPONSIBILITY MATTERS (OCT 2018)

K.6. 52.209-12 CERTIFICATION REGARDING TAX MATTERS (OCT 2020)

K.7. 52.209-13 VIOLATION OF ARMS CONTROL TREATIES OR AGREEMENTS CERTIFICATION

(NOV 2021)

K.8. 52.230-1 COST ACCOUNTING STANDARDS NOTICES AND CERTIFICATION (JUN 2020) . 113

K.9 52.230-7 PROPOSAL DISCLOSURE—COST ACCOUNTING PRACTICE CHANGES (APR 2005)

K.10 INSURANCE - IMMUNITY FROM TORT LIABILITY

K.11 SIGNATURE

SECTION L - INSTRUCTIONS, CONDITIONS, AND NOTICES TO OFFERORS

L.1. NOTICE LISTING CLAUSES INCORPORATED BY REFERENCE

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

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

L.4. WAIVERS UNDER FAR PART 4.2101 PROHIBITION ON COVERED TELECOMMUNICATIONS

AND VIDEO SURVEILLANCE SERVICES AND EQUIPMENT

L.5. GENERAL INSTRUCTIONS TO OFFERORS

L.6. GENERAL SUBMISSION INSTRUCTIONS

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

L.8. INSTRUCTIONS FOR PREPARATION OF THE COST/BUSINESS PROPOSAL

SECTION M – EVALUATION FACTORS FOR AWARD

M.1. GENERAL INFORMATION

M.2. METHOD OF EVALUATION

M.3. TECHNICAL EVALUATION CRITERIA

M.4. COST EVALUATION

M.5. DETERMINATION OF COMPETITIVE RANGE

ATTACHMENTS AND OTHER DOCUMENTS

J. 1 – TECHNICAL LINKS FOR REFERENCE

J. 2 – ACRONYMS LIST

J. 3 - BRANDING AND MARKING - GUIDANCE AND TEMPLATE FOR ACQUISITION AWARDS

J.4 - PAST PERFORMANCE REPORT – SHORT FORM

PART I – THE SCHEDULE

SECTION B – SUPPLIES OR SERVICES AND PRICES/COSTS

B.1. PURPOSE

The purpose of this contract is to provide the services described in the Statement of Work (SOW) to implement the “USAID Equitable Finance” Activity (henceforth ‘the Activity’), as described in Section C.

The purpose of the Activity is to acquire and direct Agency-specified services to improve the supply and demand of formal financial services in rural, underserved and conflict regions, and mobilize long-term capital for USAID/Colombia’s programming as outlined in the Country Development Cooperation Strategy (CDCS).

B.2. CONTRACT TYPE AND SERVICES

This is a FAR 16.102(b) combination award consisting of a Cost-plus Fixed Fee (CPFF) Completion (CLIN 001) and a single-award Indefinite Delivery/Indefinite Quantity (IDIQ) type contract (CLIN 002) for the purpose of providing supplemental technical assistance.

Under the CPFF portion of the contract, which represents 80% of the total estimated cost, (CLIN 001), the Contractor must furnish all personnel, materials, equipment, supplies, facilities, services (except as expressly set forth in this contract as furnished by the U.S. Government (USG)) and perform all activities necessary for, or incidental to, the performance of work described in Section C and other sections of the contract not specifically identified under CLIN 002 as the IDIQ Supplemental Technical Assistance.

Under the IDIQ portion of the contract, which represents 20% of the total estimated cost, (CLIN 002), the Contractor must furnish additional supplemental technical assistance arising out of or related to the completion portion of the contract as required by USG-issued Level of Effort (LOE) Task Orders.

For the consideration set forth below, the Contractor must achieve the performance objectives and deliverables, or outputs described in Sections C and F, and otherwise comply with all contract requirements.

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

The Total Estimated Cost (TEC) for CLIN 001 and CLIN 002 is [TBD].

a. Estimated Cost and Fixed Fee for CLIN 001

The Total Estimated Cost for this CLIN is [TBD], exclusive of fixed fee, if any. The fixed fee, if any, is [TBD]. The estimated Cost-Plus-Fixed-Fee, if any is [TBD].

b. Estimated Cost and Fixed Fee for CLIN 002

The total estimated ceiling cost of this CLIN is [TBD], exclusive of the associated maximum fee of [TBD]. The total estimated ceiling cost and maximum fee is [TBD].

c. Payment of Fixed Fee

CLIN 001: Pursuant to FAR 16.306(d), the fixed fee is payable under CLIN 001 and will be tied to the conditions and completion of the deliverables specified in Section F.5 of this contract and in accordance with the amounts in B.3.a.

CLIN 002: Payment of the corresponding fixed fee for each Task Order will be negotiated at the task order level upon receipt of a proper invoice and must directly correspond to the percentage of level of effort being paid. In no event, the fixed fee percentage of the Task Orders under CLIN 002 will exceed the fee percentage negotiated under CLIN 001.

d. Amount Obligated

CLIN 001: Within the estimated cost-plus fixed fee (if any) specified in paragraph a) above, the amount currently obligated and available for reimbursement of allowable costs incurred by the Contractor (and payment of fee, if any) for performance hereunder is [TBD]. The Contractor must not exceed the aforesaid obligated amount nor will the United States Government (USG) be responsible for costs incurred should the Contractor do so.

Funds obligated hereunder are anticipated to be sufficient through [TBD].

B.4. CONTRACT BUDGET AND CEILINGS

CLIN 001

Direct Costs $TBD Activity Fund (6.3M at a minimum out of CLIN 001) $TBD Indirect Costs $TBD Total Costs $TBD Fixed Fee $TBD Total Estimated Cost-Plus Fixed Fee $TBD

CLIN 002

Direct Costs $TBD Indirect Costs $TBD Maximum Fee $TBD Total Ceiling $TBD

Total Estimated Cost-Plus Fixed Fee CLIN 001 and CLIN 002: $TBD

B.5. OTHER DIRECT COST LIMITATIONS UNDER CLIN 002

The estimated cost of this CLIN includes estimates for material, equipment, subcontracts, travel, and training required for performance of the total amount of work that can be ordered by the government under this CLIN during the life of this contract. The amount of ordered Other Direct costs will not exceed $2,000,000.00.

B.6. LEVEL OF EFFORT (CLIN 002)

a. In performing Government orders for Technical Assistance under CLIN 002, the Contractor is obligated to provide up to a maximum of 10,000 person-days.

b. The CLIN 002 fee set forth in B.3.b is based upon furnishing the level-of-effort specified in B.6.a. The total estimated cost and fixed fee will be established in the individual Government-issued Task Order and will not exceed the amounts set forth in Section B.4.

B.7. INDIRECT COST

The contract clause entitled “Allowable Cost and Payment (AUG2018)”, FAR Subpart 52.216-7, specifies that the indirect cost rates must be established for each of the Contractor’s accounting periods which apply to this contract. Pending establishment of revised provisional or final indirect cost rates, allowable indirect costs shall 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:

Period:

2/ Base of Application:

Type of Rate:

Period:

3/ Base of Application:

Type of Rate:

Period:

B.8. COST REIMBURSABLE

Allowable costs shall be limited to reasonable, allocable and necessary costs determined in accordance with FAR 52.216-7, Allowable Cost and Payment, FAR 52.216-8, Fixed Fee, if applicable, and AIDAR 752.7003, Documentation for Payment.

[END OF SECTION B]

72051422R00006 – Equitable Finance Activity SECTION C

SECTION C – STATEMENT OF WORK

C.1. PURPOSE

The United States Agency for International Development in Colombia (USAID/Colombia) is seeking to implement a five-year Equitable Finance Activity (EF). The purpose of the EF activity is to acquire and direct Agency-specified services to improve the supply and demand of formal financial services in rural, underserved and conflict regions, and mobilize long-term capital needed to leverage financial sector resources for USAID/Colombia’s programming as outlined in the Country Development Cooperation Strategy (CDCS).

The activities designed under this project will be market-led and focus on meeting the expectations of end markets, to ensure sustainability and increased profitability for rural producers and businesses with special attention to underserved groups of the population1. Priority will be given to the areas included in the Development Plans with Territorial Approach (Spanish Acronym:

PDETs) that USAID/Colombia is targeting under the CDCS.

USAID will support a financial system operated under market conditions that focuses on those that are the most disadvantaged and facilitate the mobilization and allocation of funds for productive investments in agriculture and enterprises through viable and sustainable financial intermediaries (FIs). Emphasis will be placed on building the capacity of the supply side to respond to households and businesses of the underserved population, with products that address their needs.

On the demand side, EF will support demand driven business development services (BDS) to help households and enterprises meet the requirements of the financial intermediaries to enable them to access their services. This may include technical assistance and training to develop business plans, financial data, improve management performance, and technical support to overcome other types of barriers. EF will forge alliances with stakeholders and facilitate capacity building through technical assistance and training, performance grants and guarantees.

The EF has three primary objectives with a supporting special objective (SO) that include:

1. Increased financial capacity in target communities.

2. Increased provision of financial services in target communities.

3. Improved ecosystem for the financial inclusion of the underserved populations

4. SO, Increased mobilization of long-term (LT) financial capital in USAID’s priority sectors.

The expected results at the conclusion of the Activity are the following:

Equitable Finance Activity Framework and Expected Results Objective 1: Increased financial capacity in target communities.

IR 1.1 Increased financial capacity among targeted individuals.

● At least 100,000 persons have participated in financial education/literacy activities through the implementation of a sustainable and cost-effective methodology.

1 Underserved groups include women, victims, indigenous, youth, Afro-Colombians, migrants, and LGBT.

https://www.usaid.gov/colombia/cdcs

IR 1.2 Increased financial capacity among MSMEs.

● At least 1 sustainable and scalable business development service/model operationalized or adopted, that has been tested by the market, that will increase the business management capacity of underserved population owned businesses.

Objective 2: Increased provision of financial services in target communities.

IR 2.1: Increased capacity to provide services among financial service providers.

● At least 10 financial services providers have increased their capacity to provide financial services in target geography

● At least 10 financial products that target underserved populations have been strengthened/created. At least one rural target insurance product has been implemented/strengthened

IR 2.2: Expanded presence of financial service providers in target communities.

● At least $500 million in financial services have been mobilized towards target geography and population. At least 80% of financial services will be productive loans.

● At least 200,000 new underserved customers have been financially included in target geography. 50% of those new customers must be women or women-owned businesses.

IR 2.3: Increased provision of digital services by financial providers.

● At least 10 digital finance products (new or existing) have been developed, deployed and/or strengthened. The utilization rates of those financial products have increased by at least 30%

Objective 3: An improved ecosystem for the financial inclusion of underserved populations.

IR 3.1: Improved collection and use of financial consumer data.

● Develop a robust framework/guideline in coordination with the GOC, Banca de Las Oportunidades, and financial intermediaries covering the quantity, usage, and quality of data for measuring financial inclusion.

● Implement a comprehensive and sustainable data management system that facilitates the analysis of information for financial and economic inclusion of at least two underserved population segments.

IR 3.2: Enhanced regulatory framework for financial inclusion.

● Adoption by the GOC of at least one set of regulatory recommendations that promote underserved populations’ financial inclusion.

Special Objective: Increased mobilization of long-term financial capital for USAID’s priority sectors.

● Facilitate the access and mobilization of at least $100 million in FINAGRO’s 2nd tier facility after agreement is reached with FINAGRO and GOC.

● Development of at least two concrete innovative/alternative finance instruments proposals, such as equity investment, syndicated loans, blended finance facilities or investment capital funds, that can be implemented to support the mobilization of long-term financial capital towards USAID’s priority sectors (CDCS).

C.2. BACKGROUND

Colombia with a population of nearly 51 million is the fourth largest economy in Latin America after Brazil, Mexico, and Argentina. As all countries in the region, Colombia has been severely affected by the Covid-19 pandemic resulting in an 8.6% GDP drop from 2019 to 20202. Like many governments around the world, Colombia provided funds to mitigate the social crisis, and ensure that the productive apparatus continued to operate. The economy is starting to rebound but continues to be affected by mobility restrictions and the logistical problems caused by social unrest. The Organization for Economic Co-operation and Development (OECD) estimates that GDP will grow by 7.6% in 2021 and then ease to 3.5% in 2022.

The historic Colombia peace agreement ending the country’s 52-year armed conflict signed on November 24, 2016, provides the opportunity to mitigate the conditions that contribute to poverty and initiate the process of incorporating millions into mainstream economic activities.

According to the World Bank, the Gini Index comparison which measures inequality among individuals and households, ranks Colombia in the 16th position out of 159 countries, as being one of the most unequal countries, placing fourth in Latin America. In 2018, the top 10% of the country’s earners received 39.7% of the country’s income while the lowest 20% of the population received 4.0%. Approximately 1.7 million rural properties currently exist without formal property records3. The Central Bank and Colombia’s Statistical Agency, DANE, report that poverty levels have risen from 30.4% to 42.5% from 2019 to 2020. In rural areas, poverty rates for 2020 are higher and affect 48% of the population. The poverty levels continue to disproportionately affect women, Afro-Colombians, indigenous, and the more remote rural populations.

Colombia has improved financial access for much of its adult population over the past decade.

According to the Economist Intelligence Unit’s Global Microscope, a survey that assesses the 55 countries’ financial inclusion enabling environment, Colombia ranked as a top country for financial points of access and product improvement. Advances in Colombia’s financial service access were also evidenced by Banca de Oportunidades and the Superintendencia Financiera’s 2019 financial inclusion report. This report stated that 82.5 percent of Colombia’s adult population has access to at least one financial product, like a loan or savings account. This number is substantially lower in rural areas, where only 55.7 percent of rural adults have access to at least one financial product. Digital savings products have increased citizens’ use of financial products, and national government programs, like Familias en Acción and Ingreso Solidario, are using digital savings accounts to direct social payments to rural areas.

There are still significant financial inclusion challenges in Colombia. For example, over 200 municipalities lacked access to a financial branch in 2019. There are also significant disparities in financial service access between Colombian men and women. Gender disparities undermine women’s economic empowerment and impede overall economic growth. Moreover, there is a correlation between domestic abuse and low levels of financial access, and many individuals that suffer physical abuse also suffer from economic abuse. Colombia’s migrant population also lacks access to financial services needed for entrepreneurship and to effectively contribute towards the Colombian economy.

2 Source: GDP Table from the “Dirección de Síntesis y Cuentas Nacional y Banco de la República”.

3 Source: Colombia | LandLinks (land-links.org) http://wdi.worldbank.org/table/1.3 https://www.land-links.org/country-profile/colombia/#1528464012065-5a95fe57-0dc7

MSMEs also inconsistently access and use financial service products. MSMEs make up 95 percent of businesses in Colombia and contribute 50 percent of national employment, but only 18 percent of MSMEs applied for a credit product in 2019. Identifying and reducing the barriers MSMEs face in formal financial services access would enhance business growth and create new employment opportunities. The emergence of COVID-19 demonstrates the need to improve MSMEs access to financial services. A recent survey from Colombia’s National Administrative Department of Statistics (DANE) found that during 2020, the number of operational MSMEs decreased by 7.3 percent. The number of operational women-owned MSMEs declined by even more, 10.6 percent. Financial service access is a key component of economic recovery efforts, especially for underserved populations and businesses.

The “Assessment on status and challenges of financial inclusion in Colombia” attachments found in Section J, provide additional information related to the Colombian financial ecosystem and current challenges for financial inclusion.

C.3. COUNTRY DEVELOPMENT COOPERATION STRATEGY ALIGNMENT

The 2020-2025 CDCS goals support implementation of the Peace Accord, which presents a tremendous opportunity for peace, stability, and prosperity in Colombia. The CDCS’ first Development Objective (DO) consolidates peace gains by creating a more cohesive and inclusive society, thereby mitigating the conditions that contribute to violence. The second DO does this by engaging citizens and making government systems more accessible and responsive to citizen needs. The third DO will expand licit economies and create new opportunities for Colombians to prosper by contributing to the national economy. The CDCS’ approach is to make governance more inclusive by strengthening transparency and responsiveness of state systems to citizen needs and increase citizen participation and migrants in the state systems. The CDCS is aligned with the Government of Colombia’s (GOC) peace geography as laid out in the PDETs

The EF Activity will advance CDCS Development Objective (DO) 3: Promote Equitable and Environmentally Sustainable Economic Growth. The Activity will contribute to this objective by facilitating and enhancing financial services access, and by creating greater economic equality and a healthier financial environment. The Activity will also contribute towards IR 3.2 More Competitive Licit Economies and IR 3.2.2 Increased private sector investment and access to financial services. It will do this by providing incentives for the private sector to invest in rural and conflict-affected areas where the private sector has previously been reluctant to invest. In turn, enhanced private sector investment will increase underserved communities’ access to financial services, and will lead to licit opportunities and long-term job creation. Finally, the Activity will create long-term, sustainable solutions for financing in Colombia, so that the country can achieve its own development goals.

C.4. OVERALL ACTIVITY VISION

EF will operate in a complex and challenging environment where urban and rural differences are stark, and commercial markets and opportunities are limited in the PDET areas, due to the country’s past armed conflict. There are many gaps that inhibit access to acquire strategic assets to improve the livelihood opportunities of the underserved groups. In addition, issues with regards to security, infrastructure, digital connectivity, trust, energy and telecommunications, education and health services accentuate the rural and urban divide. The underserved population and those living in conflict affected regions lack access to financial services and markets, limiting their ability to improve their licit livelihood opportunities.

The contractor will implement viable and sustainable approaches to developing partnerships with intermediaries that will establish a pathway for financial inclusion, with a flexible financial delivery system that will expand the customer base within the target group. On the demand side, the contractor will work with the underserved population to help them understand how the benefits of receiving financial services outweigh the risk and cost of not having them. The target group should be aware how the system will reduce their vulnerabilities and provide investment opportunities for their SMEs and agricultural productive activities that result in higher income generation. On the supply side, the contractor will develop approaches to provide technical assistance through intermediaries4, in order to strengthen and deepen the financial intermediation in Colombia. The contractor will propose actions that reduce financial barriers at the policy, regulatory and program level to create an environment conducive for financial inclusion and enable the mobilization of long-term financing to support USAID’s priority sectors, as described in the

CDCS.

To complement the EF activities, USAID will work closely with the United States International Development Finance Corporation (DFC), to support the subsidies required for guarantees in debt financing, investment funds and equity investment if required. USAID Subsidy Funds can be used to cover liquidity for financial intermediaries, to help address shortfall of private equity funds, and long-term funds. It is possible that USAID guarantees subsidies for clean energy, agricultural production, long-term capital mobilization, microfinance institutions, climate change and other USAID priorities as resources become available. The contractor will provide technical support in identifying financial intermediaries that want to improve their retail capacity in rural areas and facilitate the gathering of the appropriate financial data as requested by USAID.

The contractor will work with sustainable financial intermediaries and organizations to ensure continued services after the end of the project. EF will be sensitive to intermediaries’ policies and promote sustainable market-based activities. Most of the assistance provided to the FIs will consist of capacity building through technical assistance, training, risk and costs reduction through guarantees and grants to offset start-up costs and promote innovation.

C.5. TASKS

The Contractor must achieve the expected results listed under each of the following objectives and/or suggest additional results depending on the strategic approach proposed. Activities must be closely coordinated with selected financial intermediaries (commercial banks, finance companies, savings and loan cooperatives and NGOs). The Contractor will focus on the broad spectrum of potential finance users, ranging from the smallest economic actors that have been traditionally excluded and have limited or no access to financial services, to the engines of growth, i.e., rapidly growing rural enterprises, productive value chains and farms with requirements for more sophisticated and longer-term financing instruments.

4 The Contractor will most likely work with an array of financial intermediaries including, banks, finance companies, public sector financial programs, Savings and Loan Association, Cooperatives, NGOs, and other related institutions.

C.5.1 Development Hypothesis IF financial capacity, access to financial services, and financial inclusion ecosystems are improved for target communities, and more long-term private capital is mobilized towards USAID development objectives, THEN underserved populations and businesses will be able to make informed financial decisions thereby increasing investment and licit economic opportunities in conflict-affected regions.

People and businesses need to have access to affordable financial products that meet their needs to expand and improve their livelihood and business opportunities. A balanced and well-developed financial sector strategy needs to have long-term financing to support its key sectors (MSMEs, agriculture, housing, clean energy, infrastructure, etc.) for an inclusive economic growth strategy.

C.5.2. Objective 1: Increased financial capacity in target communities.

Financial capacity is the combination of skills, attitude, knowledge, and self-efficacy needed to manage financial resources and make financial decisions. Improved financial capability will enable individuals and businesses to confidently: make financial decisions; engage with financial services; and address the misconceptions, disincentives, and consumer behaviors that discourage formal financial service use.

Intermediate Result 1.1. Increased financial capacity among targeted individuals.

Colombia has a financial system that adequately serves most urban areas but does not provide sufficient financial services to rural and underserved areas and sectors. Colombia continues to have a development gap between the urban and rural areas, formal and informal businesses, men and women, youth, elderly, migrants, and other disadvantaged groups. Underserved populations often have a negative perception of financial services providers due to their lack of contact with financial intermediaries.

Many people lack understanding of how the financial sector works, and they prefer to solve their financial needs through informal financial services, like family and friends, savings clubs, pawn shops and money lenders (loan sharks), that are more costly and present risks to personal safety.

Cash continues to be the preferred method of payment in Colombia5. Approximately 88% of adults continue to make their periodic payments (rent, transportation, phone bills,) in cash. Fifty-five percent of adults believe that it is safer to use cash than credit cards. Fifty-seven percent believe that paying in person is more reliable than paying through the internet, and 93% believe that it is safer to save in informal instruments than in banks.

In most of the cases, the first time that a person receives financial education is when they approach a financial institution to request a service or product. Their lack of adequate financial capacity is a barrier for economic inclusion for underserved communities as this limits their ability to determine the type of financial services and financial institutions would be best for them.

Under this IR, the Contractor will improve citizens’ understanding of how to manage their finances, the benefits of financial inclusion, and how the financial sector works in Colombia.

5 USAID financed study: Jaime Arteaga & Asociado, Inclusión Financiera en Colombia, August 2021. Link to full study in Annex J.

https://drive.google.com/file/d/1BuxhFw9vpXhgnLFO-3RNzdG_09XbvLQ0/view?usp=sharing https://drive.google.com/file/d/1BuxhFw9vpXhgnLFO-3RNzdG_09XbvLQ0/view?usp=sharing

Financial education efforts will improve underserved populations’ understanding of, and interest in, the benefits of using formal financial services. Also, the Contractor will test and implement a sustainable and cost-effective methodology to build adequate financial capacity among underserved populations that is not only dependent on the financial institutions’ availability of financial education programs.

At a minimum, the Contractor will implement the following activities:

● Provide technical assistance to the GOC to update/develop a National Finance Inclusion Strategy.

● Support the GOC’s and private sector efforts to implement and expand financial education programs at various levels.

● Provide technical assistance to design, test, and rollout a financial literacy program for members of savings and credit cooperatives, associations of producers and NGOs.

● Facilitate underserved populations’ understanding about the benefits of actively participating in cashless and digital payments ecosystems and enhance their digital literacy.

● Provide technical assistance for training the trainers in financial literacy.

Expected Results and Deliverables:

● At least 100,000 persons have participated in financial education/literacy activities through the implementation of a sustainable and cost-effective methodology.

Intermediate Result 1.2: Increase financial capacity among MSMEs.

Visiting a bank for a loan is a difficult proposition for many MSMEs. Numerous businesses are informal and do not have accounting systems in place and are unable to clearly express their ideas and develop a business plan. Many MSMEs lack adequate or sufficient collateral, do not have formal credit history, have deficient management skills, and do not clearly understand the formal financial system procedures and requirements. On the supply side, the credit officers making decisions do not have adequate knowledge of the clients and their business activities. This leads to transaction costs that are prohibitively high and sometimes to products that do not match the MSMEs and producers’ needs.

Under this IR, the Contractor will enhance business owners and entrepreneurs’ capacity to develop and present bankable business plans to financial services providers. This IR will improve business owners’ entrepreneurial success to make informed financial decisions and improve access to formal financial services, with adequate coaching, technical assistance, and training from a business development service partner.

The Contractor will work with business development service providers to help MSMEs strengthen their ability to attract future private sector investment through improved business planning, financial management and reporting, marketing, technology transfer, and regulatory compliance. Business Development Services (BDS) providers will help identify market inefficiencies throughout the supply chain helping MSMEs improve their financial and operational performance. Grant funds will be used to partially off-set the cost to the MSMEs, through direct transfer or payment vouchers or other innovative approaches. Technical assistance will also be made available to BDS suppliers to build their capacity to deliver quality, tailored services, coupled with co-investment via performance-based grants/sub-contracts to incentivize results. EF will support the development of a network of BDS and extension service providers and promote linkages with chambers of commerce/producers and financial intermediaries.

At a minimum, the Contractor will implement the following activities:

● Incentivize the creation and strengthening of a sustainable market-based cadre of business development services providers that bridges the management and requirement gaps between MSMEs and financial intermediaries for the underserved population-owned businesses.

● Facilitate the creation and strengthening of community associations and cooperatives that provide technical assistance and build the business management capacity for MSMEs and entrepreneurs.

Expected Results and Deliverables:

● At least 1 sustainable and scalable business development service/model operationalized or adopted by private sector partners or by the Government of Colombia, that has been tested by the market, that will increase the business management capacity of underserved population owned businesses.

C.5.3 Objective 2: Increased provision of financial services in target communities.

With today’s technology and alternative financing options and methodologies, it is no longer an aspirational goal to provide financial services to individuals and enterprises who normally do not have access to the formal financial sector. Financial intermediaries are capable of expanding their geographic coverage and customer base well beyond traditional banking services, through physical branches, mobile offices, cash agents, and digital services with savings, credit, payments, and insurance products, creating a ripple effect that transforms the lives of excluded households in rural and underserved areas, while benefiting the financial intermediary.

Intermediate Result 2.1 Increased capacity to provide services among financial service providers.

Access to financial services is critical for economic growth and poverty reduction. Some of the financial institutions that have traditionally served urban businesses do not have the appropriate lending methodologies and financial instruments needed to serve rural households and agri-business value chains. Many microfinance providers lack the knowledge and technical capacity to evaluate risk of long-term financial instruments or agricultural value chain lending.

In Colombia nearly 236 municipalities6 do not have the presence of a financial intermediary such as a bank, finance companies, finance corporations, cooperatives, or NGOs. Only 38.7% of the municipalities have bank offices. One-hundred-seventy-four of these municipalities have bank correspondence to partially cover their financial needs. On the demand side, 80.7% of the population in the big urban cities have at least one active financial product in use, compared to 44.5% of the population in rural dispersed municipalities.7 To address the limited availability of financial services faced by underserved populations, under IR 2.1, the Contractor will strengthen financial institutions’ capacities to provide financial services

6 Financial Inclusion Report, Banca de las Oportunidades, 2020, page 83.

7 Ibid., page 44.

to underserved groups. Technical assistance may be used to help the financial intermediaries adjust or develop new products, support market penetration studies and strategies, establish linkages with BDS providers, design and invest digital financial service options, and access FINAGRO funds under market conditions (if they are available).

The Contractor will follow a market/demand driven approach, that considers not only credit, but includes, savings, insurance, payment system, remittance, and digital services, as required by the underserved community. Technical assistance may be restricted primarily to sustainable intermediaries.

● Implement models to provide technical assistance to financial services institutions to develop inclusive financial instruments for underserved population access.

● Support the design of value-chain financing methodologies, especially for non-traditional agricultural activities and businesses.

● Provide technical assistance to develop a blended financial system or fund to facilitate financing for high-risk ventures with the potential to generate social benefits.

● Enhance financial institutions’ skills, strategies and communications toward market segments that include underserved populations.

● Increase financial institutions' capacity to prevent and address client grievances.

Expected Results and Deliverables:

● At least 10 financial services providers have increased their capacity to provide financial services in target geography

● At least 10 financial products that target underserved populations have been strengthened/created. At least one rural target insurance product has been implemented/strengthened

● At least one rural target insurance product has been implemented/strengthened.

Intermediate Result 2.2: Expanded presence of financial service providers in target communities This IR seeks to reduce the disincentives and transaction costs associated with providing financial services to underserved populations. Financial institutions must invest considerable resources in personnel, infrastructure, and communication to service rural and underserved communities.

Through this IR, the Contractor will increase the availability of financial points of contact by expanding the physical presence of traditional channels, like cash agents, and promoting alternative financial services, like cooperative branch sharing and digital financial service methods that have the potential of…