Amendment No.01 Questions and Answers 03.01.2022. (1).pdf

USAID Southern Africa Mobilizing Investment

RFP Question & Answers

1. Is this considered a new requirement or is there an incumbent? If there is an incumbent, would you be able to share the vendor and contract number so that I can identify it in

FPDS?

Answer: This is a new requirement.

2. The Responses due date under the General Information section of sam.gov record is March 24, 2022? Can you confirm the closing date?

Answer: Closing date for proposals is March 28, 2022, 9:00am SAST.

3. Page 9 / Budget: Please could you advise on the Independent Government Estimate for the total cost of this program?

Answer: The total estimated LOE for this activity is 38,000 days. We acknowledge that the pre-solicitation notice and the Business Forecast provided estimated ranges.

However the RFP only will provide the LOE estimate.

4. Page 19 / Due diligence support: Please confirm if the $5m co-investment challenge fund can only be applied to external transaction advisory fees (subject to 1:1 matching by the private sector entity), or whether it could also be applied to cover certain other costs (subject to 1:1 matching), e.g. if a transaction advisory firm that seeks to enter a new market would incur internal costs for market analysis and pipeline building, travel, setting up legal entities/office infrastructure etc.

Answer: USAID is seeking creative ideas on how the contractor will determine the 1:1 match from the private sector. The Annual Program Statement for the $5m co-investment challenge fund will be used to identify solutions for new incentive structures for financial models between capital providers and capital seekers.

5. Page 19 / Due diligence support: Please could you elaborate further on how USAID intends the co-investment challenge fund to operate in terms of identifying transactions and matching them with advisory firms in order to be supported under this fund? Does USAID envisage the Contractor to identify a limited pool of service providers to originate a deal pipeline and review inbound requests for transaction advisory support, e.g. via an open call?

http://sam.gov/

Answer: USAID is seeking creative ideas on how the contractor will use the co-investment challenge fund. Please review the text in C. 3.1. and C.3.3.3. from the

RFP.

6. Page 20, Facilitate connections between U.S. and Southern Africa capital providers:

Please clarify if the pool of technical assistance referenced could also include tailored advisory support to address challenges of specific transactions that are advanced between U.S. and Southern African capital providers. Please also clarify if activities under this component could (i) extend to connections between U.S. capital providers and Southern African asset managers and/or project sponsors, and (ii) if U.S. capital providers are limited to institutional investors or could also include corporates, family offices or other investors

Answer: It is up to the offeror to propose a pool of technical assistance and USAID is seeking creative ideas. Capital providers are defined in the RFP in the footnote on page 13.

7. The SAM link for this solicitation states the due date is March 24, 2022, but the RFP states the due date is March 21, 2022. Please confirm the correct submission date for this offering is March 24, 2022.

Answer: See question 2.

8. In the Cover Letter, USAID states that under 13 CFR 121.201, the U.S. Small Business size standard for NAICS code of 541990 for this activity is $15 million. According to the CFR website: https://www.ecfr.gov/current/title-13/chapter-I/part-121/subpart-A/subject-group-ECFRf12a11421b08a31/section-121.201 the size of the U.S. Small Business for this NAICS code is $16.5 million. Please confirm the correct size.

Answer: The size of the U.S. Small Business for the NAICS code 541990 is $16.5 million.

9. B.3 (p. 141) – Please confirm that the budget range stated in the pre-solicitation notice of $28 million -$32 million is still the correct range. If not, could USAID respectfully provide offerors with a current range?

Answer: See question 3.

10. Please confirm that the $13 million Grants under Contract (GUC) pool should be allocated as follows:

a. $8M to support blended finance funds and Fund of Funds that combine USAID catalytic funding with private capital (C.3.3.1, p. 15)

i. $4M of this will need to be designated for agricultural funding.

ii. $1.6M of this will focus specifically on issues of lack of venture capital https://www.ecfr.gov/current/title-13/chapter-I/part-121/subpart-A/subject-group-ECFRf12a11421b08a31/section-121.201 https://www.ecfr.gov/current/title-13/chapter-I/part-121/subpart-A/subject-group-ECFRf12a11421b08a31/section-121.201 https://www.ecfr.gov/current/title-13/chapter-I/part-121/subpart-A/subject-group-ECFRf12a11421b08a31/section-121.201

b. $5M for co-investment challenge fund (C.3.3.3. p.19)

i. $2.5M of this is designated agricultural funding

Answer: Yes. This is correct.

11. In section C.3.3.1 page 16, USAID states that “the first loss tranche of capital allocation in the blended finance vehicle(s) is intended to support risk taking required to attract institutional investors via a blended capital structure.” Will USAID also allow first loss tranches to be used to attract other non-institutional investors?

Answer: Yes.

12. In Section C.3.3.2, USAID notes the challenges of lack of inclusion and diversity of South African private equity and venture capital and the underdevelopment of VC as an asset class. It does not, however, note the same challenge for Southern Africa PE and VCs. To what extent can tasks under this component focus as well on developing private equity and venture capital beyond South Africa in other southern African countries, including on aspects of inclusion and diversity?

Answer: In the paragraphs marked a) and b) on page 18 of the RFP, USAID replaces “South Africa” with “Southern Africa”.

13. In section C.3.3.3 page 17-18, USAID describes activities to strengthen the capacity of fund managers. May the offeror use the $13M grants pool to also include subcontracts and activities, for instance to develop the capacity of fund managers under C.3.3.3 to facilitate greater engagement of private sector actors?"

Answer: No. Strengthening the capacity of fund managers activities are defined in section C.3.3.2. and does not include the use of GUCs.

14. In section C.3.3.4 page 19-20, USAID talks about using a pool of technical assistance to “research potential structures or other ideas the U.S. and Southern African capital providers can use to overcome challenges identified through the peer-to-peer connections that are inhibiting potential investments.” Would USAID consider the use of resources allocated to the GUC facility for this type of intervention?

Answer: No. Section C.3.3.4 does not include the use of GUCs.

15. In section H.17 page 47, USAID stated that “An Environment Monitoring and Mitigation Plan (EMMP) will be developed to ensure that all environmental mitigations and monitoring measures proposed in the IEE or developed as a result of environmental monitoring processes during project implementation are adhered to. The EMMPs will be part of the project work plans/budgets and will be reviewed by the MEO and COR. The contractor will be required to regularly report on activities’ environmental compliance as part of the fixed schedule of reporting that will be set by the COR”. Can USAID clarify if the offerors should prepare a separate tab in the proposal budget that includes EMMP related costs?

Answer: The EMMP cost should not be in a separate tab within the proposal budget.

16. In section J.6. on page 92, USAID included SF LLL: Disclosure of Lobbying Activities.

Can USAID clarify if this section should be included as part of the Annex of the Cost Proposal?

Answer: Yes, The SF LLL: Disclosure of Lobbying Activities should be included as part of the cost proposal Annexes.

17. L.4 (p. 122) – As with charts and graphs, may the offeror use a font no smaller than 9 point for textboxes?

Answer: For charts and graphs no smaller than 9 point font. All other portions of the technical proposal (including text boxes) must be no smaller than 11 point font.

18. L.4 (p. 122-124) – On page 122, USAID indicates that “the technical proposal must be organized according to the evaluation factors in Section M” which includes: 1) technical approach, 2) staff and management plan and 3) past performance. However, on page 124 USAID indicates that Past Performance Information Sheets are to be submitted under Annex E. Is USAID asking the offeror to highlight past performance in both the technical proposal and past performance annex? If so, can USAID please provide a page allocation for the Past Performance Section in the technical proposals?

Answer: Offerors must summarize past performance in the body of the technical proposal. This is limited to one page. Offerors must provide past performance information sheets in the Technical Proposal as an Annex.

19. L.5 (p. 125) - Please confirm the offeror may adjust the budget template provided by USAID under Attached J.2 to fit the offeror’s proposal?

Answer: Offerors must retain the items identified in the budget template and include separate sheets for the prime and subs, but may make other adjustments as needed.

20. (Page 9, B.3 Estimated Cost) In the previous USAID Business Forecast, the budget range was projected to be in $25-50M range. The Pre-solicitation adjusted the anticipated range to $28-$32M. Section B.3 Estimated Cost indicates the range as TBD. Can USAID kindly confirm that the budget range is $28-32M?

Answer: See question 3.

21. (Page 9, B.4 Budget; Page 15, C.3.3.1 Catalytic Capital GUC Facility; Page 9, Work with Businesses) The RFP states that the total Grants under Contract pool amount is $13M (B.4) and that the Catalytic Capital GUC Facility amount is $8M (C.3.3.1). It further states that offerors will work with businesses and capital providers to establish a $5M co-investment challenge fund (C.3.3.3). Can USAID kindly confirm the composition of the GUC facility as:

Catalytic Capital Grants ($8M), which includes

a. $4M for agricultural grants

b. $1.6M focused on increasing venture capital

Co-investment Challenge fund ($5M)

a. With 1:1 match minimum

b. With $2.5M focused on agriculture grants

Answer: Yes. This is correct.

22. (Page 12, C.1.2. Problem Statement, footnote 1; Page 24, F.3 Place of Performance) The footnote defines the 11 countries that fall within the Southern Africa Development Community (SADC) as aligning to “Southern Africa”. (C.1.2 footnote) The place of performance is defined as “Southern Africa”. (F.3) Can USAID kindly indicate any prioritized countries beyond South Africa where the project will be headquartered?

Answer: The project will be headquartered in Johannesburg or Pretoria. That location will be proposed by the contractor and will include the key personnel at a minimum. The offeror must propose a complete staffing and management plan as defined in section L.4.

23. (Page 12, C.1.2. Problem Statement, footnote 1; Page 24, F.3 Place of Performance) The footnote defines the 11 countries that fall within the Southern Africa Development Community (SADC) as aligning to “Southern Africa”. (C.1.2 footnote) The place of performance is defined as “Southern Africa”. (F.3) . As a regional program, does USAID anticipate that SAMI will receive funding from multiple missions?

Does USAID envision mission-level buy-in prior to financing grants, beyond COR approval?

Answer: No.

24. (Page 13, C.3.1. Implementation Principles) The implementation principles include “Use a Market Systems Approach.” We note that a typical market system can include supporting regulatory/policy functions such as working with governments or industry regulators. Does USAID anticipate that the SAMI implementor will work in the regulatory or policy space?

Answer: No

25. (Page 16, C3.3.1. Mobilize Catalytic Capital, 1. SA SME Fund of South Africa) In the Services/Components section, the RFP references the SA SME Fund of South Africa.

Does USAID anticipate that the SA SME Fund established in 2020 will be available for adding to SAMI funds? If so, does USAID anticipate that the SAMI implementor will have access to this facility?

Answer: No

26. (Page 41, H.6.a.1 Additional Requirements for Personnel Compensation) The RFP states that “Salaries and wages may not exceed the Contractor's established policy and practice, including the Contractor's established pay scale for equivalent classifications of employees, which shall be certified to by the Contractor. Nor may any individual salary or wage, without approval of the Cognizant Contracting Officer, exceed the employee's current salary or wage, or the highest rate of annual salary or wage received during any full year of the immediately preceding three (3) years.)”. The highlighted text appears to conflict with/predates USAID’s Initiative Promoting Market-based Salary Equity (and the subsequent removal of salary history from Contractor Employee Biographical Data Sheet). Would USAID consider removal of the highlighted text?

Answer: USAID will remove the highlighted text “Nor may any individual salary or wage, without approval of the Cognizant Contracting Officer, exceed the employee's current salary or wage, or the highest rate of annual salary or wage received during any full year of the immediately preceding three (3) years.)”

27. (Page 42, H.9 AIDAR 752.245-71 Title to and Care of Property) Section (b)(2) states:

“For non-expendable property titled to the Cooperating Government, the Contractor shall, within 90 calendar days after completion of this contract, or at such other date as may be fixed by the Contracting Officer, submit an inventory schedule covering all items of non-expendable property under its custody, which have not been consumed in the performance of this contract.” The Contractor shall also indicate what disposition has been made of such property.) Would USAID consider revising the requirements of the highlighted text to ensure all work is conducted/completed within the authorized period of performance / aligns with the reporting requirements in Section F.6 (e.g., Closeout and Disposition Plan)?

i. Suggested update for consideration: For non-expendable property titled to the Cooperating Government, the Contractor shall, within 180 calendar days prior to the completion date of the contract, or at such other date as may be fixed by the Contracting Officer, submit an inventory schedule covering all items of non-expendable property under its custody, which have not been consumed in the performance of this contract.

Answer: USAID is not going to change the calendar days listed in this RFP.

28. (Page 75, H.35 Grants Under Contract) The RFP states that an individual grant to a US organization will not exceed the Simplified Acquisition Threshold (SAT). Given a perceived priority placed on connecting the US and Southern Africa capital providers:

Would USAID consider revising the threshold value of grants issued to U.S.-based organizations to exceed the Simplified Acquisition Threshold (SAT)?

Answer: No. (As per Code of Federal Regulations 48 CFR 2.101)

29. Would USAID kindly confirm that the total cost is expected to fall within the range of $28-$32 million listed in the pre-solicitation? Without a range, offerors could submit cost proposals that vary considerably, impairing fair and reasonable comparative-price or cost-realism analysis as well as risking implementation under budgeting

Answer: See Question 3.

30. Section L.6 states: “Fixed Fee will be applied as appropriate in accordance with B.7 ‘PAYMENT OF FIXED FEE’…” Can USAID confirm that this text should instead read “Fixed Fee will be applied as appropriate in accordance with B.6 ‘PAYMENT OF

FIXED FEE’…”?

Answer: Section L.6 is updated as follows: “Fixed Fee will be applied as appropriate in accordance with B.6 ‘PAYMENT OF FIXED FEE’...”

31. In the Detail Prime tab of Attachment J.2, USAID presents grants under contract (GUC) both under “Supplies” and as a separate line item. Per L.5. Part 2, “Proposed Costs/Prices” (pages 126- 7), GUC appears as a separate line item (Subsection I). Could USAID confirm that the intention is for GUC to appear as a unique line item in the detail prime budget and not under supplies? Additionally, the Detail Prime tab of Attachment J.2. presents subcontracts to local NGOs under “Supplies” whereas the Summary tab presents these under “Other Direct Costs.” Could USAID confirm where subcontracts should be budgeted?

Answer: GUC’s will be removed from the supplies list and retained as a unique line in the prime budget. “Subcontract to Local NGO’s” is removed as a subcategory under Supplies .

32. The RFP states the closing date is March 21, 2022, 09:00am SAST. The sam.gov posting states the original date offers are due is March 24, 2022, 09:00am SAST. Can USAID please clarify which is the closing date?

Answer: See question 2.

33. Section B.2, page 9 of the RFP states, “The Total Estimated Cost (TEC) for the performance of the work required hereunder, exclusive of fixed fee, if any, is $TBD. The fixed fee, if any, is $TBD. The estimated cost-plus fixed fee, if any, is $TBD.” Can USAID please confirm the Total Estimated Cost (TEC) that is estimated for this proposal?

Answer: See question 3.

34. Section B.5, page 10 of the RFP states, “The Contractor must provide a total of [TBD - to be filled in at the time of award] days of level of effort to implement the Statement of Work. The Contractor must not exceed the total level of effort of person days, which are allocated as follows [in the proceeding table].” Can USAID please advise the total estimated level of effort required for this contract?

Answer: See question 3.

35. Section B.6, page 10 states that a fixed fee will be paid in proportion to the level of effort delivered during the invoice period. Since the estimated level of effort and total estimated costs is not stated in the RFP and there is a deliverable schedule stated in section F.6, page 28, would USAID consider a deliverable-based fixed-fee payment schedule consistent with FAR 52.216-8.

Answer: This RFP is being amended to include an estimated level of effort. The RFP will not include a deliverable-based fixed-fee schedule. See question 3.

36. Section B.6, page 10 of the RFP states that fixed fee will be paid in proportion to the level of effort delivered during the invoice period. Since the estimated level of effort and total estimated costs is not stated in the RFP, can USAID please clarify: What counts as qualifying labor towards the overall target? Is it all direct labor under the contract?

Answer: This RFP is being amended to include an estimated level of effort. See question 3. The LOE estimate includes all categories of labor under the contract, but the fixed fee will only be associated with the LOE of key personnel.

Does administrative or support LOE count?

Answer: Yes.

https://sam.gov/opp/6c4cbf5cc2f64fd9a706b6b2918c866c/view https://sam.gov/opp/6c4cbf5cc2f64fd9a706b6b2918c866c/view

Does directly billed leave time of project employees count? Or is it just labor of certain individuals/labor categories?

Answer: Yes.

Does the LOE of subcontractors count?

Answer: Yes.

37. Section C.1.1., page 12 of the RFP states, “The USAID Southern Africa Mobilizing Investment activity will be headquartered in Pretoria.” Can USAID please clarify: Is it a contractual requirement that the activity be headquartered in Pretoria?

Answer: USAID modifies “Pretoria” in section C.1.1. to “Pretoria or Johannesburg”.

Does USAID envision project offices in all the countries enumerated in the footnote on page 12 of the RFP?

Answer: The offerors must propose a complete staffing and management plan as required in section L.4.

38. Section C.1.2., page 12 of the RFP states, “Southern Africa includes Angola, Botswana, Eswatini, Lesotho, Madagascar, Malawi, Mozambique, Namibia, South Africa, Zambia, and Zimbabwe.”Does USAID have any preference for the proportion of capital flows or emphasis of project activities in relationship to the countries named in the Southern Africa region?

Answer: No

39. Section C.2, page 13 of the RFP states, "USAID Southern Africa Mobilizing Investment will focus on the following two Intermediate Results (IRs) from the USAID Southern Africa RDCS: IR 1.2: Increased Investment (and) IR 1.3: Expanded Private Sector.” To fairly evaluate proposals, can USAID please clarify how it envisions achieving these high-level IRs and how achieving the IRs will lead to reduced inequality and unemployment, and increased incomes, and for whom?

Answer: Part of the technical approach includes the offeror providing a logical connection between their proposed activities and the IRs.

40. Section F.5, page 26 of the RFP states, “The Contractor must submit written justification to the COR and the Contracting Officer sufficiently detailed to permit evaluation of the proposed candidates against” Can USAID please provide the remainder of this incomplete sentence?

Answer: “...against the requirements below.” This will be amended in the RFP.

41. Section F.5, page 26 of the RFP states, the following positions are designated as Key Personnel: 1. Chief of Party 2. Finance and Investment Advisor 3. Grants Manager. On page 123 the RFP states that offerors may propose and justify an alternate key personnel structure.Can USAID please confirm that this means that offerors can propose alternate qualifications for the key personnel positions required in Section F.5.?

Answer: No. USAID deleted the following sentence from section L.4. on page 123 of the RFP. “The Offeror may propose and justify an alternate key personnel structure.”

Can USAID please confirm that this means that offerors can propose additional KP positions?

Answer: No

42. Section L.2, page 117 of the RFP states, “Proposals signed by an agent shall be accompanied by evidence of that agent’s authority unless that evidence has been previously furnished to the issuing office.” Can USAID please define who would be considered an “agent”?

Answer: “Agent” means any individual, including a director, an officer, an employee, or an independent Contractor, authorized to act on behalf of the organization.

Can USAID please clarify what evidence is required?

Answer: An explanation of which roles in an organization holds authority to bind the organization and demonstration that the person signing has one of those roles.

43. Section L.5, Part 2, section 2, page 125 of the RFP states, that detailed budgets must be submitted for major subcontractors, defined as those exceeding 20% of the budget.

Section L.5, Part 2, section j, page 127 states indirect cost information must be submitted for major subcontractors. Section L.5, Part 9, page 131 states Work-day Work-Week information must be submitted for major subcontractors. However, section L.5, Part H, page 126 states “similar information as submitted by the prime Offerors on the cost proposal must be submitted for all Subcontracts.” Can USAID please confirm offerors are only required to submit the documents or information stated in section L.5 for proposed major subcontractors?

Answer: Yes, that is correct.

44. Section B.4, Page 9 - Can USAID confirm that the estimated value of this contract is $30 million as indicated in the environmental assessment, or provide an updated government estimate?

45. Section B.5, Page 10, Can USAID clarify that the LOE ceiling only pertains to LOE for technical staff and does not include support and administrative (e.g., finance, logistics, procurement) LOE?

46. Section B,5, Page 10, Can USAID provide guidance regarding how LOE from firm fixed price subcontracts should be included in the Total LOE calculation?

Answer: Firm Fixed Price Subcontractors will not be included in the total LOE calculation.

47. Section L4, Page 123, Are Offerors required to address Past Performance as part of the

20-page limit for technical proposal or can Past Performance be addressed entirely in the annex

Answer: See question 18.

48. Section L.5, Page 124, Can USAID please provide exchange rates to use to promote consistency across offers?

Answer: An exchange rate of R14.00 : $1 will be used for this RFP.

49. Section L.5, Page 125, Can USAID please provide the U.S. Embassy Local Compensation Plans for each country where work is anticipated under the procurement?

Answer: We will not be providing the Local Compensation Plan.

50. Section L.5, Part 2, Can USAID please confirm that offerors may use their own budget templates that align to the cost element breakdown included on page L-5 in the solicitation?

Answer: Offerors are encouraged the use of the USAID budget template provided.

See question 19.

51. Section L.10, Page 135, Section L.10 mentions that multiple emails may be sent to accommodate the proposal size, however a maximum size, in MB, is not provided for any single email to USAID. Can USAID provide the maximum size for attachments for a single email?

Answer: The maximum size for the attachments is 25MB for a single email.

52. Section J. Can USAID please confirm that Attachment J.6 – SF LLL – Disclosure of Lobbying Activities can be included as Part 11 of the Cost/business proposal?

Answer: Yes.