72051423R00005 Sustainable Economic Transformation (SET).pdf

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SOLICITATION, OFFER AND AWARD

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

72051423R00005

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

07/17/2023 REQ-514-23-000061

X

720514

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

DPO, AA 34004

until 1700 ET local time 08/31/2023

601 275-4175

PAGE(S)

26. NAME OF CONTRACTING OFFICER (Type or print)

William Sedlak

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

William Sedlak

C. E-MAIL ADDRESS

wsedlak@usaid.gov

X

X

X

X

X

X

X x x x x x

X

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 (SOW)

C.1 PURPOSE

C.2 JUSTIFICATION

C.3 THEORY OF CHANGE

C.4 OBJECTIVES

C.5 GEOGRAPHIC FOCUS

C.6 RESULTS

C.7 ACTIVITY FUND (APPLICABLE TO CLIN 001)

C.8 GENERAL ORGANIZING PRINCIPLES

C.9 SUPPLEMENTAL TECHNICAL ASSISTANCE (CLIN 002: 20% OF TOTAL ESTIMATED COST)

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 PERSONNEL

F.8 AUTHORIZED WORKDAY/WEEK

F.9 ORDERING SUPPLEMENTAL TECHNICAL ASSISTANCE 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 ADDITIONAL REQUIREMENTS FOR PERSONNEL COMPENSATION

H.2 AUTHORIZED GEOGRAPHIC CODE

H.3 ELECTRONIC PAYMENTS SYSTEM

H.4 EXECUTIVE ORDER ON TERRORISM FINANCING

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

H.6 GRANTS UNDER CONTRACTS (GUC)

H.7 USAID-FINANCED THIRD-PARTY WEB SITES (NOVEMBER 2017)

H.8 FOREIGN GOVERNMENT DELEGATIONS TO INTERNATIONAL CONFERENCES

H.9 PROHIBITION OF ASSISTANCE TO DRUG TRAFFICKERS

H.10 ENVIRONMENTAL COMPLIANCE

H.11 EXCHANGE VISITORS AND TRAINING

H.12 GOVERNMENT FURNISHED FACILITIES OR PROPERTY

H.13 INHERENTLY GOVERNMENTAL AND CLOSELY ASSOCIATED FUNCTIONS

H.14 PERFORMANCE MANAGEMENT INFORMATION SYSTEM

H.15 PRESS RELATIONS

H.16 SECURITY CONDITIONS

H.17 LIFE SUPPORT AND SECURITY SERVICES

H.18 TITLE TO AND CARE OF PROPERTY

H.19 REQUIREMENTS FOR INFRASTRUCTURE ACTIVITIES

H.20 FAR PART 4.21 PROHIBITION ON CONTRACTING FOR CERTAIN COVERED TELECOMMUNICATIONS AND

VIDEO SURVEILLANCE SERVICES OR EQUIPMENT (SECTION 889) (JUNE 2023)

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 (NOV 2021)

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 52.229-8 TAXES – FOREIGN COST-REIMBURSEMENT CONTRACTS (MAR 1990)

I.10 52.244-2 SUBCONTRACTS (JUNE 2020)

I.11 52.247-67 SUBMISSION OF TRANSPORTATION DOCUMENTS FOR AUDIT. (FEB 2006)

I.12 752.229-71 REPORTING OF FOREIGN TAXES (JUL 2007)

I.13 752.7007 PERSONNEL COMPENSATION (JUL 2007)

I.14 752.228-3 WORKER’S COMPENSATION INSURANCE (DEFENSE BASE ACT) (DEC 1991) [(DEVIATION JUN

2022)] CLASS DEVIATION NO. M-OAA-DEV-AIDAR-22-10C

I.15 LIMITATION ON ACQUISITION OF INFORMATION TECHNOLOGY (APRIL 2018)

PART III – DOCUMENTS AND OTHER ATTACHMENTS

SECTION J - LIST OF DOCUMENTS, EXHIBITS AND OTHER ATTACHMENTS

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 (MAR 2023)

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) ... 108

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

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 (JUNE 2023)

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 THE PREPARATION OF PAST PERFORMANCE INFORMATION

L.9 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.3.1 TECHNICAL APPROACH - CLIN 001 (SEE SECTION L.7.3)

M.3.2 MANAGEMENT APPROACH – CLIN 001 (SEE SECTION L.7.4)

M.4 PAST PERFORMANCE

M.5 COST EVALUATION

M.6 DETERMINATION OF COMPETITIVE RANGE

ATTACHMENTS AND OTHER DOCUMENTS

J. 1 – TECHNICAL LINKS FOR REFERENCE

J. 2 – ACRONYMS LIST

J. 3 – SET GEOGRAPHY – LIST OF MUNICIPALITIES

J. 4 – COORDINATION WITH USAID ACTIVITIES

J. 5 – PERFORMANCE INDICATORS

J. 6 - BRANDING AND MARKING - GUIDANCE AND TEMPLATE FOR ACQUISITION AWARDS

J.7 - PAST PERFORMANCE REPORT – SHORT FORM

72051423R00005 – Sustainable Economic Transformation (SET) SECTION B

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 “Sustainable Economic Transformation (SET)” Activity (henceforth ‘the Activity’), as described in Section C.

The purpose of the Activity is to support sustainable economic opportunities and investment in a targeted geography to foster equitable and environmentally sustainable growth, development, and peace implementation, 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, https://www.usaid.gov/sites/default/files/2022-05/Colombia_CDCS_Narrative_Public-Oc7-2020.pdf 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 for 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.6 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 (At least 50% of the TEC of CLIN 001) $TBD Including Infrastructure Activities $5,000,000.00 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 $3,000,000.

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 15,000 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 based on 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]

72051423R00005 – Sustainable Economic Transformation (SET) SECTION C

SECTION C – STATEMENT OF WORK (SOW)

C.1 PURPOSE

The purpose of the Sustainable Economic Transformation (SET) Activity is to support sustainable economic opportunities and investment in a targeted geography to foster equitable and environmentally sustainable growth, development, and peace implementation, as outlined in the Country Development Cooperation Strategy (CDCS).

C.2 JUSTIFICATION

USAID has been assisting the Colombian Government to implement the 2016 Peace Accord. Unfortunately, implementation of the Peace Accords has been slower than expected. As of November 2021, 81 percent of the 104 stipulations1 defined under the Point 1, Comprehensive Rural Reform, had not been initiated or had a minimum level of implementation2. This is a problem because high rural poverty rates, and the lack of profitable licit economic opportunities in rural areas, fuel an illicit economy, insecurity, and deforestation through the expansion of coca crop production and illegal mining3. As of 2020, Colombia had 245,000 hectares of coca, a significant portion (52 percent) of which is planted in national parks and protected areas.4 5 To effectively and sustainably advance comprehensive rural reform and address illicit crop cultivation and other illicit economic activities, eradication actions should be complemented with investments in: 1) environmentally sustainable, climate resilient, and profitable livelihood opportunities; 2) public and productive goods and services;6 and 3) other actions to improve rural competitiveness and climate adaptation planning and actions.7

As it stands, agriculture is the main economic sector in rural Colombia and almost 60 percent of the rural population is employed, formally or informally, in agriculture.8 High reliance on agriculture demonstrates the lack of alternative, non-agricultural productive activities available in

1 The Final Peace Accord contains 578 stipulations demanded as part of an agreement.

2 Initiative, P. A. M. B., & for International Peace Studies, K. I. (2022). Executive Summary, Five Years After the Signing of the Colombian Final Agreement: Reflections from Implementation Monitoring. Peace Accords Matrix Barometer Initiative, Kroc Institute for International Peace Studies, Keough School of Global Affairs. https://curate.nd.edu/downloads/41687h17b57

3 Davalos, E: “New answers to an old problem: Social investment and coca crops in Colombia,” International Journal of Drug Policy, Vol. 31, pp 121-130 (10 pages)

4 https://co.usembassy.gov/ondcp-releases-data-on-coca-cultivation-and-production-in-the-andean-region/

5 https://www.unodc.org/documents/crop-monitoring/Colombia/EXECUTIVE_SUMMARY_19102022.pdf

6 Public goods and services include clean energy, tertiary roads, rural aqueducts, digital connectivity services, and training facilities, among others. Productive goods and services refers to facilities and equipment used in production, collection, and adding-value processes.

7 Estrategia de política pública para la gestión integral de riesgos agropecuarios en Colombia, World Bank, Ministry of Agriculture and Rural Development (2018).

8 Otero-Cortez, Andrea (2019): El mercado laboral rural en Colombia, 2010-2019. Documentos de Trabajo sobre Economía Regional y Urbana No. 281, Banco de la República, Bogotá, Colombia.

https://www.usaid.gov/colombia/cdcs https://co.usembassy.gov/ondcp-releases-data-on-coca-cultivation-and-production-in-the-andean-region/ https://www.unodc.org/documents/crop-monitoring/Colombia/EXECUTIVE_SUMMARY_19102022.pdf rural communities, and there is a correlation between low agricultural competitiveness and high rates of rural poverty.910 Non-agricultural opportunities have the potential to diversify, derisk and enhance rural economies, improve the resilience of socioeconomic systems to potential climate impacts, price and other economic shocks, and promote cultural knowledge. Diversification11 is crucial for women, considering that seventy-three (73.7%)12 percent of rural women earn some income from non-agricultural activities. The agricultural sector’s performance is negatively affected by a myriad of factors including: 1) lack of skilled workforce; 2) low value addition for final products; 3) inefficient commercialization practices and high transportation costs;13 4) high informality and inadequate labor practices; 5) lack of productive assets like land, capital, and technology;14 and 6) climate change.15 In cases where agricultural producers are able to access additional land, they often try to compensate for low productivity and economic inefficiencies by expanding their crop area. The practice of trying to produce more through greater plots of cultivated land, rather than improved productivity on the same plot of land, increases deforestation, soil loss, and loss of biodiversity.16 Further complicating these issues is the war in Ukraine and the resulting increase in agricultural input prices, especially fertilizers. In turn, more expensive agricultural inputs translates to lower profit-margins for producers and increased food commodity prices and thus rising food insecurity. As such, sustainable agricultural production systems, like silvopastoral and agroforestry models, are needed to develop a more sustainable and resilient food production system.17 Likewise, greater investment in non-agricultural opportunities, like tourism, would help improve rural incomes and reduce environmental impacts associated with traditional agriculture.

Further, climate change has had, and will continue to have, a negative impact on economic development in Colombia. Climate events, like extreme floods, droughts, and higher temperatures

9 Estrategia de política pública para la gestión integral de riesgos agropecuarios en Colombia, World Bank, Ministry of Agriculture and Rural Development (2018). Parra-Peña et al (2021): Una hoja de ruta para el aumento de la productividad agropecuaria de colombia: desafíos y oportunidades. Consejo Privado de Competitividad, Fedesarrollo, Bogotá, Colombia.

10 Since 1990 the participation of the agricultural sector in the Gross Domestic Product (GDP) has been decreasing, and the growth productivity rate (0,6%) is one of lowest in Latin America and the Caribbean (1,8%), and is below the world average (1,9%)

11 Economic diversification of the rural economy refers to the shift from agriculture to non-farm sector activities within rural areas, or to the diversification of economic outputs within these sectors. Abebe T, Chalchisa T, Eneyew A. The Impact of Rural Livelihood Diversification on Household Poverty: Evidence from Jimma Zone, Oromia National Regional State, Southwest Ethiopia. Scientific World Journal. 2021 Dec 23.

12 Misión para la transformación del campo, El Campo Colombiano: Un camino hacia el bienestar y la paz, 2016

13 According to a survey done to 600 micro, small and medium enterprises in PDET municipalities, 60% of the participants mentioned the transportation cost as the second barrier they face. This survey was part of a Private Sector Landscape Assessment published by USAID/Colombia in 2022.

14 https://sac.org.co/pleno-empleo-en-el-campo-realidad-o-ficcion/ and Otero (2019).

15https://climateknowledgeportal.worldbank.org/sites/default/files/2021-07/15520-WB_Colombia%20Country%20Profile- WEB%20%283%29.pdf

16 Benin, J: Agriculture and Deforestation in the Tropics: A Critical Theoretical and Empirical Review, Ambio Journal Vol. 35, No. 1 (Feb., 2006), pp.

9-16 (8 pages)

17 Ben Hassen, T.; El Bilali, H.: “Impacts of the Russia-Ukraine War on Global Food Security: Towards More Sustainable and Resilient Food Systems?

Foods 2022, 11, 2301. https://doi.org/10.3390/foods11152301 https://pdf.usaid.gov/pdf_docs/PA00Z4G2.pdf https://sac.org.co/pleno-empleo-en-el-campo-realidad-o-ficcion/ https://climateknowledgeportal.worldbank.org/sites/default/files/2021-07/15520-WB_Colombia%20Country%20Profile-WEB%20%283%29.pdf https://climateknowledgeportal.worldbank.org/sites/default/files/2021-07/15520-WB_Colombia%20Country%20Profile-WEB%20%283%29.pdf https://www.jstor.org/stable/i399725 https://doi.org/10.3390/foods11152301 negatively affect agricultural and livestock production and increase poverty, conflict, instability, and food insecurity.18 For example, the 2010 La Niña in Colombia resulted in economic losses equal to two percent of the country's Gross Domestic Product (GDP).19 Moreover, climate change is expected to reduce annual agricultural production in Colombia by 7.4 percent between 2010 and 2100.20 According to the World Bank, climate change events will negatively affect 80 percent of Colombia’s crops, including important exports like coffee, by 2050.21 Climate events also hinder rural communities’ access to public goods and services, like health centers, and can prevent producers from accessing markets. For example, during the 2022 hurricane season regional flooding prevented over 30,000 indigenous households in Uribia, La Guajira from accessing food, drinking water, and other essential resources.22 Recognizing the impact of climate change on economic growth and rural development, current and future investments in rural communities need to understand and account for the changing climate.

Finally, years of conflict have impaired trust within communities, and have eroded social norms that facilitate coordination and cooperation to achieve common goals and mutual benefits.2324 For example, a lack of trust in communities can hinder business growth by discouraging local actors from establishing business agreements and alliances. 25 As such, socially, economically, and environmentally sustainable development in rural areas can only occur if community, public, and private actors work together through participatory processes that build trust and encourage citizen participation in decision making.

C.3 THEORY OF CHANGE

IF there is rural economic diversification and competitiveness, led by communities, and target regions have the ability to adapt to economic shocks, including climate change, THEN there will be a better foundation for a sustainable peace.

18 Naveen,S., Bhawna A., Surendra S., Arshad K. (2019): “Mainstreaming climate adaptation in Indian rural developmental agenda: A micro-macro convergence”

19 BID, CEPAL. 2013. Valoración de Daños y Pérdidas. Ola Invernal en Colombia 2010-2011.

20 DNP-BID (2014). Impactos Económicos del Cambio Climático en Colombia – Síntesis. Bogotá, Colombia, Impactos económicos del cambio climático en Colombia | Publications (iadb.org)

21 https://climateknowledgeportal.worldbank.org/sites/default/files/2021-07/15520-WB_Colombia%20Country%20Profile- WEB%20%283%29.pdf

22 https://www.zoa-international.com/noodhulp-per-schip-in-colombia-na-overstromingen

23 Skaperdas & Arjona in Rubio, Melissa (2014), The Effect of Armed Conflict on Social Capital in Colombia – Gothenburg, Sweden.

24 Putman & Dasgrupta in Rubio, Melissa (2014), The Effect of Armed Conflict on Social Capital in Colombia – Gothenburg, Sweden.

25 This has been well documented in recent USAID programs’ evaluations, like the Consolidation and Enhanced Livelihoods Initiatives (CELIs) and the Community Development and Licit Opportunities (CDLO) evaluations.

https://climateknowledgeportal.worldbank.org/sites/default/files/2021-07/15520-WB_Colombia%20Country%20Profile-WEB%20%283%29.pdf https://climateknowledgeportal.worldbank.org/sites/default/files/2021-07/15520-WB_Colombia%20Country%20Profile-WEB%20%283%29.pdf https://www.zoa-international.com/noodhulp-per-schip-in-colombia-na-overstromingen

C.4 OBJECTIVES

Objective 1:

Increased rural business growth and diversification

Objective 2:

Enhanced environment for rural economic competitiveness

IR 1.1: Improved business performance

IR 2.1: Improved local development planning using climate information

IR 1.2: Increased inclusive private sector investment

IR 2.2: Increased investment in climate resilient infrastructure

Special IR 1.3: Increased access to financial services

IR 2.3: Improved community capacity to maintain and use infrastructure

Shared IR 1.4/2.4: Enhanced evidence for systems and policy change

Objective 1: Increased rural business growth and diversification

Under Objective 1, the Contractor will consider and leverage natural, cultural, and productive sectors in the targeted regions to promote licit, equitable, profitable, climate-resilient, and sustainable economic opportunities. The Contractor will strengthen local businesses and value chains, both agricultural and non-agricultural, to improve firm level competitiveness and support rural economic diversification.

For agricultural activities, the Contractor will consider climate smart, regenerative agriculture, value addition, and other sustainable productive models, like permaculture, agroforestry and silvopastoral agriculture. For the SET Activity, rural economic diversification refers to those economic opportunities that are feasible, offer sustainable economic alternatives to reduce the expansion of the agricultural frontier, and mitigate potential impacts and vulnerabilities to climate change.26 Development models supported under this objective by the Contractor must:

1) follow a market driven approach: 2) be tailored to community skills and interests; and 3) incentivize inclusive investments that support climate resilience, and prevent deforestation and biodiversity loss.

26 The “Assessment of value chains in some PDET regions” document identifies potential local businesses and value-chains with growing market opportunities that could be supported under SET to enhance the rural economic environment in targeted regions. This document will serve as guidance to define potential economic opportunities to be supported although it should be complemented by the contractor.

IR 1.1: Improved business performance.

Under this IR, the Contractor will strengthen the competitiveness of existing businesses and value chains, and will support the development of new economically, socially, and environmentally sustainable, climate-resilient income generating activities. This will include efforts to strengthen businesses and value chains’ operational and administrative capacities, in addition to climate awareness and climate resiliency. For interventions under this IR, the Contractor will consider economic diversification potential in each target region, and include non-agricultural activities, like sustainable tourism, that generate income while incentivizing environmental protection. The Contractor’s interventions must also develop the capacities of for-profit community-based organizations (CBO), like producer associations, to equitably: 1) strengthen and expand business opportunities; 2) establish market-driven business alliances; 3) negotiate business terms with private sector partners; and 4) improve community resilience to climate change.

IR 1.2: Increased inclusive private sector investment

Under this IR, the Contractor will mobilize and leverage investment from micro, small, medium, and large private sector companies from diverse sectors to support socially and environmentally sustainable businesses and value chains. The Contractor will identify opportunities and facilitate private sector monetary and non-monetary investments that align with core business interests. For example, food sector businesses will be encouraged to invest in sustainable and climate resilient agricultural models, like silvopastoral systems, to strengthen quality and reliability of production. Private sector investment may include but is not limited to capacity building; technology transfer; market knowledge transfer; productive infrastructure; and business or other innovation, expansion, and financial investments. The goal of private sector investment will be to grow and enhance the economic, environmental, and social sustainability of local businesses, value chains, and to strengthen the local economic environment. The Contractor will also incentivize investment in interventions that promote the sustainable use of natural and cultural assets, mitigate deforestation, and promote biodiversity protection and climate adaptation. In addition to alignment with core business interest investments, the Contractor will also leverage strategic long term Corporate Social Responsibility (CSR) programs, especially if those CSR programs relate to public goods and services provision.

Special IR 1.3: Increased access to financial services

Under this Special IR, the Contractor will improve businesses and local value chains’ access to financial services, like credit, savings accounts, digital payment services, and other new and relevant financial tools and services. Micro, small, and medium-sized businesses (MSME), service, and logistics providers all need access to a variety of financial services to maintain and grow their businesses. The Contractor will achieve this IR by linking businesses, including relevant women-led businesses, with existing financial institutions, services, and products, primarily by closely coordinating and collaborating with the USAID’s Equitable Finance Activity and Climate Finance Activity. To this end, the Contractor will supplement and complement the work done by these USAID financial activities. For example, the Contractor will provide bankability readiness support to businesses to help them apply for, receive, and manage credit or other financial services. In case no USAID activity could provide the connection to financial complementary services, SET will take the lead to link businesses to financial service providers.

Objective 2: Enhanced environment for rural economic competitiveness

Under Objective 2, the Contractor will nurture the enabling environment needed to support sustainable economic activities in rural areas. The Contractor will foster a more competitive, resilient, and attractive rural economic landscape for investment, will promote open dialogues between the CBOs, private sector actors, and local and national governments, and will create and sustain links to municipal, departmental, and national markets. The contractor will use climate information and mobilize public and private sector investment to develop climate resilient public and productive infrastructure. Climate resilient infrastructure is infrastructure that is designed, built, delivered, and/or operated in a way that anticipates and adapts to changing climate conditions, and withstands potential shocks. Examples of climate resilient infrastructure that could be supported under this objective include but are not limited to tertiary road improvements; crop collection and processing centers; flooding control works; and water source protection. The use of climate information in identifying and prioritizing investments in infrastructure can help prevent supply chain disruptions, improve productivity, facilitate uninterrupted access to markets, and reduce economic losses. The Contractor will also support digital connectivity interventions as improved digital connectivity is needed to facilitate regional actors’ access to climate and market information.27 Finally, for interventions under this objective, the Contractor will prioritize, and support businesses and value chains identified under Objective 1.

IR 2.1: Improved local development planning using climate information

Under this IR, the Contractor will improve community, public, and private actors’ ability to plan effectively by encouraging and enabling these actors to use relevant, best available climate information and technologies in local planning, including production. Climate information includes data like changes in precipitation patterns, temperature fluctuations, timing of frost, heat waves, and more. As such, climate information serves as an essential input for planning and management related to: 1) finance and budgets; 2) infrastructure, like roads and collection centers; and 3) services, like electricity and irrigation. For example, climate information can help private sector actors make informed decisions on input sourcing and facility siting.

Under this IR, the Contractor will work with local actors to use climate information when making productive and managerial decisions and solving relevant issues affecting their development.

Moreover, the Contractor will engage all forms of CBOs, including producer organizations, cooperatives, and community enterprises, in the planning process to define local investment priorities, and to develop regional development plans that consider climate adaptation. Access

27 Digital connectivity infrastructure supported under SET must be climate resilient itself.

to climate information will need digital connectivity in rural areas; therefore, the Contractor will support actions under IRs 2.2 and 2.3 accordingly.

IR 2.2: Increased investment in climate resilient infrastructure

Under this IR, the Contractor will improve the conditions of small-scale public and productive infrastructure and will leverage and mobilize private and public investments in climate resilient infrastructure, including public and productive goods and services.28 Through these investments, the contractor will improve the quality, productivity, ability to add value, market connectivity, and climate resilience of target businesses and value chains. Public and productive goods and services provide benefits to rural communities in general, and the Contractor’s interventions under this IR will follow a market-oriented approach, which will be linked to existing businesses and value chains, and to new opportunities. Moreover, support for local actors’ analysis, planning, and prioritization of infrastructure investment and opportunities will be informed by climate information under IR 2.1. For instance, climate projections about precipitation and temperature will help guide investment decisions on whether water reservoirs will be needed.

IR 2.3: Improved community capacity to maintain and use infrastructure.

Under this IR, the Contractor will improve community capacity to maintain, use, and prioritize climate resilient infrastructure investments that positively impact local businesses, value chains, and economic competitiveness. Specifically, the Contractor will: 1) enhance CBOs’ abilities to advocate for infrastructure needs in public decision making spaces; 2) increase the active participation of rural communities in the establishment, implementation, and monitoring of public goods and services; and 3) help municipal and departmental governments access resources needed to provide public goods and services, such as tertiary road improvements and community-led irrigation systems.29 The Contractor will work through local systems and institutions to facilitate communities’ participation through a learning-by-doing approach that leads to strengthened local capacities in the long term, and enables communities to continue managing and improving local infrastructure once the activity ends. Using this approach, the Contractor will increase local ownership, maintenance, and sustainability of climate resilient infrastructure delivered. The Contractor will also collaborate with other USAID activities, like Responsive Governance, to help municipal governments access resources needed to provide public goods and services, such as royalties funds and to make positive changes so the system of accessing infrastructure is more straightforward.

Shared IR 1.4/2.4: Enhanced evidence for systems and policy change.

Under this shared IR, the Contractor must create or strengthen sustainable mechanisms for inclusive dialogue among local communities, between local communities and the state (local, departmental and national), create networks of community organizations and advocacy groups, 28 Public goods and services include clean energy, tertiary roads, rural aqueducts, digital connectivity services, and training facilities, among others. Productive infrastructure refers to facilities and equipment used in production, collection, and adding-value processes.

29 As decisions made regarding infrastructure must take into consideration climate information.

and as necessary and appropriate, utilize local, regional and national media as public relations messaging tools to complement activities implemented in the regions.

The Contractor will also use these inclusive dialogue mechanisms to provide inputs and insights for structural and systemic changes required to sustainably enable the economic dynamics in targeted regions. Also, the Contractor will make recommendations to improve existing policy implementation in order to make policies and processes more responsive to communities’ needs and to private sector and market incentives. Through this work, the Contractor will transmit CBO experiences, needs, and priorities to government actors, so that community level perspectives can be considered and addressed in municipal, departmental, and national public decision-making spaces, and improving inclusion through participatory mechanisms. While implementing interventions under Objectives 1 and 2, the Contractor will gather evidence-based information and experiences from the public and private sectors and communities and will then share this information to inform select regional and national public policy development and/or adjustments related to rural economic development planning and implementation, including rural climate adaptation efforts. Such efforts will ultimately serve to increase local relevance, inclusion, and participation of local communities in their own regional development and incorporate local needs into local, regional, and national development plans.

C.5 GEOGRAPHIC FOCUS

This Activity will target municipalities that have: 1) been historically neglected; 2) been affected by Colombia’s armed conflict; 3) the presence of illicit crops; and 4) increasing economic vulnerability to climate change. The goal of targeting these municipalities is to assist communities in the development of resilient economic opportunities, thereby providing them with a path out of poverty while building tools to combat and mitigate climate change.

The following additional criteria were used to define specific municipalities within the geographic regions of focus:

• Rural and/or PDET municipalities.30

• Municipalities impacted by violence, coca, and/or other illicit activities.

• Municipalities with economic sectors that have increased vulnerability to climate change impacts.

• Municipalities in which other USAID activities, such as Equitable Finance, Destination

Nature, Land for Prosperity, and others, are active;31 and

• Municipalities with previous USAID interventions that could be leveraged and strengthened to achieve the development tipping point.

30 Programas de Desarrollo con Enfoque Territorial (PDET)

31 The purpose of working in the same municipalities as other USAID/Colombia activities is to support regional integration and cooperation, in alignment with USAID’s Regional Integration Strategy (RIS).

The geographic regions of focus for this activity include rural areas of 30 municipalities in six departments: 1) Cauca; 2) Guaviare; 3) Guajira; 4) Meta; 5) Nariño; and 6) Putumayo. The list of specific municipalities where work will be implemented is provided in Section J.3. These municipalities may be updated over the life of the contract due changing circumstances. Any potential changes to the target municipalities will be discussed with USAID/Colombia considering relevant factors such as security conditions, political changes, and Mission’s priorities.

C.6 RESULTS

The results of SET implementation will be measured according to specific metrics. At a minimum, the SET is expected to achieve the following:

1. At least 300 businesses in the target geography with improved performance.

2. At least 700 local community organization’s representatives actively participate in and influence local and regional peace implementation and development mechanisms like the municipal and departmental committees on peace, productivity, food, and nutrition.

3. At least 62 million dollars of private-public funds leveraged for advancing local development initiatives prioritized by communities.

4. At least 30 municipalities with social and productive infrastructure activities completed after actively using community participation mechanisms.

5. At least 70% (min. 210) of the businesses supported under objective 1 using formal financial services.

6. At least 90% (min. 270) of the supported business plans include climate-change adaptation actions.

7. At least 150 public-private partnerships established.

8. At least 400 development proposals presented by CBOs and local supported businesses to government actors, like municipal and departmental administrations, and potential private partners for funding consideration.

C.7 ACTIVITY FUND (APPLICABLE TO CLIN 001)

To achieve the expected results, SET will have an Activity Fund that will be made available to co-finance eligible activities that are functional, sustainable (economically, socially, and environmentally) and scalable. Funds will be used to develop licit economic opportunities, improve local economic competitiveness through public and private investment in goods and services, improve CBOs engagement and participation in local development and discuss and implement climate-change adaptation actions.

The Activity Fund will be used as an incentive mechanism to:

1. support the diversification and improve the competitiveness of prioritized rural and sustainable economic activities.

2. increase investment by the public and private sector in productive activities that expand licit economic and improve climate-change resilience.

3. support the improvement of climate-resilient public and productive infrastructure needed to provide services to targeted communities.

4. provide assistance to strengthen CBOs capacities; and

5. conduct climate-change adaptation strategies.

The Activity Fund must complement efforts from other relevant stakeholders and will encourage product and process innovation, attract new public and private funding sources, and help align the private and development sector interests. Activities to be funded must be prioritized using a Market Systems Development approach. The Activity Fund can be used for subcontracts, grants under contract (GUCs), and short-term technical assistance (STTA) contracts that demonstrably assist the contractor in the achievement of the SET’s programmatic objectives and results. The size of the Activity Fund over a five-year period must be at a minimum 50% of the total USAID financed CLIN 001 budget. When necessary, potential grants will be delivered in-kind and may include equipment, training, technical assistance, etc. The Contractor will also use these funds for provisional technical assistance activities in pursuit of the SET objectives. In these situations, there may be limited leverage, but the Contractor remains responsible for the overall leveraging targets. The Contractor is responsible for negotiating, awarding, and monitoring any awards under the Activity Fund in accordance with USAID policies. Pursuant to ADS 302.3.4.13, USAID must be significantly involved in establishing the selection criteria and must approve the subcontractors/recipients. Potential eligible applicants for the grant fund include national, regional, and local producers; US and local NGOs; foundations and universities; private businesses, business chambers, local, regional and central government projects. Government entities are not eligible to directly receive USAID funding with the exception of in-kind assistance.

SET will use the Activity Fund and work with communities, producer associations, municipal and regional governments, the national government, the private sector and other relevant stakeholders to get the required 1:2 leverage. Subcontracts, GUCs and STTAs must be used to demonstrably assist the Contractor in the achievement of the Activity’s programmatic objectives and sustainable results.