720AA21APS00004 DiP_Request for CN IUWASH Pasar.pdf

U.S. AGENCY FOR INTERNATIONAL DEVELOPMENT

U.S. Embassy Jakarta

Jl. Medan Merdeka Selatan 3-5 Jakarta 10110, Indonesia

USAID.gov

Issuance Date: August 24, 2021 Closing Date for Questions September 3, 2021 at 4:00 PM Jakarta Time

Closing Date: September 21, 2021 at 4:00 PM Jakarta Time

Subject: Annual Program Statement Number (APS) No.: 7200AA21APS00004

Program Title: Addendum to Diversifying Partnerships in WASH (DiP-WASH), Indonesia Urban WASH Market (IUWASH Pasar)

Catalog of Federal Domestic Assistance: 98.001, Foreign Assistance for Programs

Overseas

Pursuant to the Foreign Assistance Act of 1961, as amended, the United States Government, as represented by USAID/Indonesia, is announcing the Indonesia Urban WASH Market (IUWASH Pasar) Addendum to the Diversifying Partnerships in WASH (DiP-WASH), hereafter known as the DiP-WASH APS.

Through this IUWASH Pasar Addendum, USAID/Indonesia aims to engage eligible partners to expand and amplify the Agency’s work in catalyzing and growing local markets for water, sanitation and hygiene products and services in Indonesia’s vulnerable urban areas. The overall Agency goal is to support partner countries’ progress on their development trajectories, achieve sustainable and resilient results, and catalyze more effective partnering for impact. This Addendum disseminates information to prospective Applicants so they may develop and submit Concept Notes in response and ultimately to be considered for USAID funding. This Addendum describes and provides:

● The type of activities for which Concept Notes will be considered;

● Available funding, process and requirements for submitting Concept Notes and Full

Applications;

● The Criteria for evaluating Concept Notes; and

● Refers prospective Applicants to relevant documentation and resources.

USAID/Indonesia anticipates awarding one (1) grant and/or cooperative agreement under this

Addendum. Issuance of this Addendum does not constitute an award or commitment on the part of the U.S. Government to make an award, nor does it commit the U.S. Government to pay for costs incurred in the preparation and submission of a Concept Note or Application(s).

The actual number of assistance awards, if any, is subject to the availability of funds, as well as the viability of eventual full Applications received.

Based on the submitted Concept Note(s), USAID/Indonesia will determine whether to request a Full Application from an eligible organization. To be competitive under this Addendum to the DiP-WASH APS, Concept Notes and Full Applications must be fully responsive to all https://www.usaid.gov/indonesia

APS No: 7200AA21APS00004 Addendum to DiP-Wash, IUWASH Pasar directions under the Addendum and the overall APS except when specifically noted otherwise in this Addendum.

It is the responsibility of the Applicant to ensure that the entire APS and Addendum

Opportunity has been downloaded from www.grants.gov and USAID bears no responsibility for data errors resulting from transmission or conversion process. If you have difficulty registering on www.grants.gov or accessing the APS, please contact the grants.gov Helpdesk at 1-800-518-4726 or via email at support@grants.gov for technical assistance.

Thank you for your interest in USAID programs.

Sincerely, Mohib Ahmed

Supervisory Agreements Officer Director, Office of Acquisition and Assistance http://www.grants.gov/ mailto:support@grants.gov

U.S. AGENCY FOR INTERNATIONAL DEVELOPMENT

ANNOUNCEMENT

CALL FOR CONCEPT NOTES

Indonesia Urban WASH Market (IUWASH Pasar)

UNDER EXISTING

DIVERSIFYING PARTNERSHIPS IN WASH (DiP-WASH)

Annual Program Statement

No.: 7200AA21APS00004

PLEASE NOTE: This is an Addendum to an existing annual program statement (APS) announcement. All interested organizations should carefully review both the IUWASH Pasar

Addendum AND the full announcement, which can be found here:

<https://www.grants.gov/web/grants/view-opportunity.html?oppId=331500> . Important information contained in the full worldwide announcement is not repeated in the IUWASH

Pasar Addendum.

This activity is authorized in accordance with Part 1 of the Foreign Assistance Act of 1961, as amended.

Through the IUWASH Pasar Addendum to the Diversifying Partnerships in WASH (DiP- WASH) Annual Program Statement (APS) No.: 7200AA21APS00004, the Bureau for

Resilience and Food Security’s Center on Water Security, Sanitation and Hygiene (RFS/CW) and USAID/Indonesia seeks to advance Indonesia's development goals in catalyzing and growing local markets for water, sanitation and hygiene products and services in Indonesia’s vulnerable urban areas.

Subject to the availability of funds, USAID/Indonesia anticipates supporting up to one (1) award of up to $10,000,000 over the life of the award, not to exceed five (5) years. USAID reserves the right to award more or fewer awards than this estimate and is not obligated to make any awards.

Unless otherwise stated herein, all terms and conditions of the DiP-WASH APS apply (https://www.grants.gov/web/grants/view-opportunity.html?oppId=331500).

https://www.grants.gov/web/grants/view-opportunity.html?oppId=331500 https://www.grants.gov/web/grants/view-opportunity.html?oppId=331500

TABLE OF CONTENTS

LIST OF ACRONYMS 5

SECTION A: PROGRAM DESCRIPTION 6

I. BACKGROUND 6

I.1 Sector Challenge 7

I.2 Alignment with USAID Foreign Policy Goals and USAID/Indonesia CDCS Framework 8

II. PURPOSE 8

III. PROGRAMMATIC AND GEOGRAPHIC FOCUS 10

III.1 Programmatic Focus 10

III.2 Geographic Focus 10

III.3 Monitoring and Evaluation & Collaborating, Learning & Adapting 12

III.4 Refine and Implement Period 13

IV. APPLICATION PROCESS 13

SECTION B: FEDERAL AWARD INFORMATION 14

I. ESTIMATE OF FUNDS AVAILABLE 14

II. START DATE AND PERIOD OF PERFORMANCE FOR FEDERAL AWARD 14

III. TYPE OF INSTRUMENT 14

SECTION C: ELIGIBILITY INFORMATION 15

SECTION D: APPLICATION AND SUBMISSION INFORMATION 16

I. AGENCY POINT OF CONTACT 16

II. APPLICATION PROCESS 16

III. QUESTIONS AND FURTHER ASSISTANCE 19

SECTION E: INFORMATION ON THE REVIEW OF APPLICATIONS 20

I. REVIEW OF CONCEPT NOTES 20

II. MERIT REVIEW CRITERIA AND CONSIDERATIONS 20

III. ADDITIONAL CONSIDERATIONS 21

SECTION F: INFORMATION ON THE ADMINISTRATION OF FEDERAL AWARDS 22

I. FEDERAL AWARD NOTICES 22

II. TYPE OF AWARD 22

III. AWARD DISCRETION 22

IV. ADDITIONAL INFORMATION ON AWARD ADMINISTRATION 22

SECTION G: FEDERAL AWARDING AGENCY CONTACT(S) 23

APPENDIX I 24

LIST OF ACRONYMS

AO Agreement Officer ADS Automated Directives System

APS Annual Program Statement

B40 Poorest 40 percent of the population BPS Badan Pusat Statistik (Central Bureau of Statistics)

CDCS Country Development Cooperation Strategy CFR Code of Federal Regulation

CLA Collaboration, Learning, and Adapting

DiP-WASH Diversifying Partnership in Water, Sanitation and Hygiene Program

DO Development Objective FAA Foreign Assistance Act

GOI Government of Indonesia

IP Implementing Partner IR Intermediate Result

IUWASH PLUS Indonesia Urban Water, Sanitation and Hygiene Penyehatan Lingkungan Untuk Semua

MEL Monitoring, Evaluation, and Learning

M&E Monitoring and Evaluation NGO Non Governmental Organization

PDAM Perumda Air Minum Local Government Owned Water Utility PIO Public International Organization

POC Point of Contact

RPJMN Government of Indonesia’s National Medium-term Development Plan

TOC Theory of Change SDG Sustainable Development Goals

SME Small Medium Enterprise

STBM Sanitasi Total Berbasis Masyarakat (Community Based Total Sanitation)

US United States USAID United States Agency for International Development

WASH Water, sanitation, and hygiene

SECTION A: PROGRAM DESCRIPTION

I. BACKGROUND

More than 55 percent of Indonesians currently live in urban areas. A 2.3 percent annual increase in the rate of urbanization means that by 2030, more than 73 percent of Indonesians will live in densely populated urban areas, posing a significant challenge to Indonesia’s vision for universal water and sanitation service delivery. Inadequate government investment in water and sanitation has led a large portion of the country to resort to providing for themselves, resulting in just 7.5 percent of the population having access to safely managed sanitation services while only 20 percent have access to piped water on premise.

A 2018 USAID study of households from the poorest 40 percent of the population (B40) found a dire situation in household and community water, sanitation, and hygiene (WASH) facilities1. According to this study, only 13 percent of households that owned toilets attached to septic tanks called for regular desludging services. In addition, 64 percent used rudimentary sanitation facilities and the other 23 percent practiced open defecation. In water supply provision, 62 percent of the B40 population relied on unsafe groundwater sources for drinking purposes, contributing to poor health and nutrition.

Recognizing the need for concerted action to address the needs of the urban WASH sector, the Government of Indonesia (GOI) has set an ambitious course through the adoption of the

United Nations Sustainable Development Goals (SDG) #6, Clean Water and Sanitation for All, which is supported by the GOI’s National Medium-term Development Plan (RPJMN

2020-2024). The GOI aims to provide universal access to safe water and sanitation by 2030.

Given the need for massive investment in infrastructure, governance improvements, increase in financing, institutional capacity building, broad changes in individual and collective behaviors, the GOI is eager to involve communities, households, and the private sector at every stage.

The RPJMN aims to: 1) increase access to improved sanitation by 90 percent, including 15 percent with access to safely managed sanitation services; and 2) reach 100 percent access to improved drinking water, including 20 percent with access to piped water and 15 percent with access to safely managed drinking water. However, this goal remains out of reach due to

Indonesia’s limited fiscal capacity. It is estimated that $18.8 billion of investment is required to achieve RPJMN water and sanitation targets. Over the past five years, the GOI has collectively allocated only $3.5 billion of the national budget to the water and sanitation sector, leaving an investment gap of $15.3 billion. Additional prioritization of public funding, increases in taxes and tariffs, increased accountability and cost effectiveness in the sector, and contributions from the private sector, foreign loans, and grant programs are all needed to close this gap.

Market-based approaches are critical in engaging the local private sector to address the challenges of urban WASH services. The local private sector, consisting of primarily small-medium enterprises that provide improved WASH products and services (drinking water, latrines and septic tanks, septic tank emptying) to unserved and underserved households, are

1 USAID IUWASH PLUS Behavior Change Formative Research, May 2018 https://www.iuwashplus.or.id/cms/wp-content/uploads/2018/07/IUWASH-PLUS-Formative-Research-Final-Report-Final.pdf https://www.iuwashplus.or.id/cms/wp-content/uploads/2018/07/IUWASH-PLUS-Formative-Research-Final-Report-Final.pdf https://www.iuwashplus.or.id/cms/wp-content/uploads/2018/07/IUWASH-PLUS-Formative-Research-Final-Report-Final.pdf the key actors in helping to close the financing gap by leveraging household contributions through payments for WASH services.

I.1 Sector Challenge

Government support is key to establishing the overall enabling environment for improved availability of WASH products and services, such as latrines, septic tanks, regular desludging services, decentralized drinking water services, and financial products for small business and extending household credit. However, achieving universal access to safe water and sanitation services solely from government financing is a challenge as highlighted above.

As a result, a robust WASH market is critical to meeting Indonesia’s urgent need for clean water, sanitation, and hygiene. The WASH market is the exchange of goods (e.g. latrines, septic tanks, and handwashing stations) and services (e.g. drinking water kiosks, septic tank emptying) between households (or customers) and entrepreneurs (or sellers). The WASH market operates within a broader business and enabling environment that includes government regulation and sources of finance (e.g. microfinance institutions, cooperatives, or business offering supplier credit). Outside of local government owned utilities, like water utilities (PDAMs), most WASH products and services are most effectively provided by the private sector, whose participation is vital to long-term sector sustainability and growth on

Indonesia’s development trajectory. Government has a role in the market as a regulator and catalyst in the WASH marketplace. However, the tendency of the national government to widely issue grants and subsidies without a specific result or target population in mind has undermined private sector initiatives in the past.

During USAID/Indonesia’s implementation of a WASH activity, IUWASH PLUS2, the GOI has been supportive of the roll-out of market-based sanitation as an approach to achieve safely managed sanitation services. USAID IUWASH Pasar seeks to bring together three key elements that will result in increased sales and use of water and sanitation products and services at the household level: 1) effective social and behavior change programming to increase demand for WASH products and services; 2) appropriate financial solutions to address availability of capital for small medium enterprises (SMEs) and increase the affordability of WASH products and services; and 3) technical support for the capability and viability sanitation product and service providers.

While there is a vibrant community of Indonesian businesses that could play an important role in improving the availability of appropriate products and services, these businesses require considerable assistance in both identifying opportunities within the growing market for WASH products and services and improving their business acumen to effectively respond to this market and to attract commercial investment.

The COVID-19 Pandemic heavily impacted the growth of sanitation markets. According to a

USAID IUWASH PLUS households’ survey on the effect from COVID-19 (June 2020)3, 64 percent of households have experienced a decrease in income of at least 50 percent since

March 2020 when the first case of COVID-19 was reported in Indonesia. In light of these

2 https://www.iuwashplus.or.id/?lang=en

3 https://www.iuwashplus.or.id/cms/wp-content/uploads/2021/08/Dampak-COVID-19-terhadap-Kondisi-Finansial-Mitra- USAID-IUWASH-PLUS.pdf https://www.iuwashplus.or.id/?lang=en challenges, 60 percent of households were the recipients of special funds from the Government for essential items (e.g., personal protective equipment, food, etc.). COVID-19 has also impacted sanitation entrepreneurs, with 79 percent of micro, small, and medium enterprises reporting a 50 percent decrease in sales with the greatest impact in urban areas.

For example, in Malang city, sanitation entrepreneurs reported an 80 percent drop in sales. In addition, some microfinance institutions reported that 60 percent of their current loan recipients requested refinancing.

The pandemic has also resulted in an increased percentage of households that qualify for the

GOI social protection program. According to a study by SMERU Research Institute in May

2021, COVID-19 pandemic severely impacted the lives of many Indonesians, in particular, vulnerable communities with an increased number of people living under the poverty line from 25 million people (9.4 percent of the population) in March 2019 by up to 55 million people (20.6 percent of the population) entering poverty. As a result, the GOI will be required to allocate additional resources to expand its social protection program and invest in sectors other than WASH. This has a dual effect of reducing the GOI’s ability to invest in the WASH sector as well as decreasing consumer’s affordability and willingness to pay for urban water and sanitation services.

I.2 Alignment with USAID Foreign Policy Goals and USAID/Indonesia CDCS

Framework

USAID IUWASH Pasar contributes to the 2020-2024 USAID Indonesia Country Development Cooperation Strategy (CDCS) Development Objective (DO) 3, Environmental

Sustainability Improved, Intermediate Result (IR) 3.2 Urban Environmental Management

Strengthened. This Activity will support Indonesia’s 2020-2024 National Medium-Term Development Plan (RPJMN), to reduce inequality and improve infrastructure for basic services (National Priorities 2, and 5). It will also support Indonesia to achieve the Sustainable Development Goals (SDG) targets, to ensure access to water and sanitation for all

(SDG 6). Collectively, these outcomes will promote Indonesia’s Development Trajectory , to become a high-income country by 2045, the time Indonesia commemorates its 100 years of independence.

USAID IUWASH Pasar aligns with the Water for the World Act of 2014, which requires

USAID to prioritize increasing sustainable access to safe drinking water and sanitation with an emphasis on local ownership and sustainability. Moreover, the Activity aligns with the U.S. Government’s 2017 Global Water Strategy and reflects USAID’s Water Development

Plan, Climate Change and Development Strategy, Urban Policy, “Sustainable Service Delivery in an Increasingly Urbanized World.”

II. PURPOSE

The overall goal of USAID IUWASH Pasar is to advance Indonesia's development goals in catalyzing and growing local markets for water, sanitation and hygiene products and services in Indonesia’s vulnerable urban areas.

To achieve the overall goal, the Activity will focus on the following three main objectives:

1. Improve business environment to foster greater private sector contribution for WASH services and products

USAID IUWASH Pasar will work with national and selected local governments, civil society, academic institutions, and the private sector to identify and address barriers to private investment and involvement in provision of WASH services.

The Activity should consider all aspects of the business environment and barriers to viability for provision of WASH services by the private sector including, but not limited to, elements of financing, policy, regulations, business administration, and mentoring. The activity shall also seek to establish and regularly update market understanding by key stakeholders. The activity must further consider market segmentation in reaching the extreme poor (B40).

2. Enhance viability of WASH businesses and increase availability of affordable, desirable WASH products and services to underserved market segments.

USAID IUWASH Pasar will support the viability of WASH enterprises, across

WASH supply chains to include, but not limited to, masons, building-material shop owners, small drinking water suppliers, septic tank emptiers, and business associations. The Applicant shall provide tailored technical assistance to supply chain actors to increase the viability of their operations, to expand and strengthen the WASH product and service market, and to provide products and services to under/unserved households. The applicant's support may include, but are not limited to, support for strategic marketing and sales approaches, business planning and development, and financial management, product research and development, and delivery model improvements. This activity will also strengthen technical capacity and enhance credit worthiness of WASH entrepreneurs and enterprises to access financing. The activity shall also seek to support women’s empowerment and decision making in the provision of WASH services where appropriate. The activity will not include construction or engineering services. Any small-scale construction shall be financed with funds leveraged from the private or public sectors.

3. Improved key WASH behaviors for increased demand with correct and consistent use of WASH products and services.

Unlocking household demand for WASH products and services requires behavior change within the family, community and society that is supported by a change in individual and household behaviors, as well as a shift in social norms to support those behaviors. Building on USAID’s support to the Government of Indonesia in improving key hygiene behaviors under the national program of Community Based Total Sanitation (STBM); USAID IUWASH Pasar will collaborate with the

Ministry of Health, local health units and community organizations to build awareness of the benefits of adopting improved WASH behaviors, such as latrines upgrading, calling for fecal sludge management services, and handwashing with soap. As most of the municipal/community level health volunteers are women, USAID IUWASH Pasar will enhance men’s participation in advocacy activities while enhancing women's decision- making power. Female-targeted training will be provided for WASH marketing approach, methods, and opportunities to pursue better gender representation in decision making and in WASH businesses and marketing. USAID IUWASH Pasar will also explore the idea that women consumers will respond better to female sales agents and may be more willing to buy from women-owned businesses. The development of gender disaggregated indicators for monitoring impacts will also be developed, especially with respect to participation in decision making, and involvement in interventions.

III. PROGRAMMATIC AND GEOGRAPHIC FOCUS

III.1 Programmatic Focus

Because it is USAID/Indonesia’s desire to solicit creative implementation solutions from

Applicants, the Addendum’s theory of change consists of key assumptions that must be considered in the proposed concept. Concept papers should include an integrated approach in each of the three objectives under Sub Section A Purpose. Applicants should submit only the information and materials requested, and in the format specified in the APS. If a concept paper is accepted for further consideration, the theory of change (TOC) will be expanded and clarified during continued co-creation by applicant(s), Government of Indonesia partners and USAID, and further refined after award during work planning, as activity design and

Monitoring, Evaluation, and Learning (MEL) design are developed together.

IF Indonesia strengthens the viability and expands the reach of private sector actors involved in the provision of affordable, desirable water, sanitation, and hygiene (WASH) products and services for underserved market segments, and

IF the business environment for WASH services is strengthened, and

IF municipalities and communities support strategies and programs to increase demand for and use of improved WASH services, THEN access to WASH services will be improved and expanded AND correct and consistent use of WASH services will increase, THEN cities will be more productive, healthy, and resilient.

III.2 Geographic Focus

Under USAID Indonesia’s five-year Country Development Cooperation Strategy (CDCS), the three sets of Mission focus provinces in Indonesia are:

● High Priority Provinces: DKI Jakarta, East Java, Banten, North Sumatra, South

Sulawesi, East Nusa Tenggara, Papua, and West Kalimantan.

● Urban-based Provinces: West Java, Central Java, Bali Province and DI Yogyakarta

● Rural-based Provinces: Aceh, Central Sulawesi, West Papua, Central Kalimantan, North Maluku, and Maluku.

USAID/Indonesia conducted a geographic analysis in 2019 to help focus the targeting of municipalities where local private businesses and suppliers are likely to be able to deliver affordable sanitation products and services to B40 households. The analysis assessed three key factors within the CDCS high-priority and urban priority provinces in Indonesia:

improved drinking water access, improved sanitation access (Figure 1), and potential on building on sanitation marketing initiatives in 22 municipalities (Figure 2)4. As a result, five Tier 1 provinces (North Sumatra, Jakarta, Banten, East Java, South Sulawesi, and Papua) and two Tier II provinces (West Java, Central Java) were identified. During the co-creation, ENV and the implementer organization(s) for the shortlisted concept notes will consult with the

Government of Indonesia WASH Technical Team to finalize the site selection process.

Figure 1: Water and Sanitation Access in USAID High Priority and Urban Priority Provinces (Susenas BPS 2015-2018, USAID/Indonesia CDCS 2020-2025, FY 2020 J2SR Provincial

Roadmap)

4 IUWASH PLUS sanitation market-based approach is ongoing in: Medan City, Deli Serdang District, Pematang Siantar City, Tebing Tinggi City (North Sumatera), Tangerang District (Banten), DKI Jakarta, Probolinggo City and District, Lumajang District, Malang District (East Java), Bogor City, Bekasi City (West Java), Magelang City and District, Surakarta City, Sukoharjo District, Salatiga City (Central Java), Makassar City, Barru District (South Sulawesi), Ternate City (North Maluku), Jayapura City and District (Papua).

Figure 2: Target Municipalities of USAID IUWASH PLUS Sanitation Marketing Roll-Out

III.3 Monitoring and Evaluation & Collaborating, Learning & Adapting

Monitoring and Evaluation (M&E) is a critical part of USAID’s programming. According to the 2011 USAID Evaluation Policy, the Agency “uses[s] evaluation findings to strengthen our efforts and sharpen our decision-making … and to inform resource allocation.”

Consistent with USAID’s Evaluation Policy, alliances are encouraged to incorporate a structured monitoring and evaluation component from the onset of award. The monitoring, evaluation, and learning (MEL) system should use USAID’s Collaboration, Learning, and

Adapting (CLA) principles (see ADS 201.3.5.19) to effectively integrate real time monitoring and learning back into the project strategy and program implementation and ensure knowledge is shared with the broader host country community.

Furthermore, effective WASH product and service providers will not be able to effectively operate on quarterly or annual data alone. Interventions, especially, in partnership with

SMEs will require regular rapid data on sales, marketing, and profits to be effective. It is critical the applicant consider approaches to rapid and frequent feedback mechanisms in their support to private sector actors.

It is also imperative that interventions in the WASH market seek to understand overall market dynamics and changes over time. It is expected that applicants will consider more than traditional sales indicators as part of their M&E plan to include measures of overall market strength, resilience, and growth, and of changes in the market system.

A critical aspect of this principle/strategy is documenting what works and what does not to foster learning for sustainable results. USAID/Indonesia seeks activities that will extract lessons learned from the portfolio of funded alliances and will share these with a range of stakeholders focused on enabling markets for sanitation services. Proposed alliance partners must be open to sharing key learnings as a public good and should identify ways in which they can make data available to the broader WASH community.

Concepts submitted under this Addendum will be expected to incorporate one or more of these questions into their project design and monitoring and evaluation approaches.

● What market-based approaches serve as the most effective methods for enabling

WASH enterprises to grow, attract investment, and thus deliver greater development impact?

● How can microfinance and other financing mechanisms be used to expand access to water and sanitation in high-interest rate environments?

● How can we improve domestic resources, mobilization of public resources for WASH and leverage more private sector investments?

● How do you professionalize WASH service providers?

● What are the best opportunities to increase women’s participation in decision making and engagement as WASH service provider professionals?

● How do the existing WASH technologies support lasting/sustainable behavior change?

III.4 Refine and Implement Period

USAID/Indonesia anticipates that during the first six-month of the award, the Activity will engage with USAID, relevant Government of Indonesia partners, and the other USAID partners to 1) refine its theory of change, approach and interventions, 2) develop plans for joint activities with other USAID partners, 3) conduct necessary analyses, and 4) hire and train its own staff. The analytical work required during this period will be essential to developing effective market strengthening strategies and interventions. This might include, but is not limited to, the market assessment, and consumer and enterprise/service market assessments in each target geography. Given the extensive and fragmented geographic scope and other constraints, this preliminary analytical work will be essential for the success of the activity. Findings and recommendations from the inception period will allow the awardee, following discussions with USAID and subject to USAID’s approval, to enhance the focus of the activity so that the activity is targeting the areas of greatest need.

IV. APPLICATION PROCESS

USAID outlined the application process in Section D of this Addendum. Please see Section D: Application and Submission Information of the USAID DiP-

WASH APS for additional information.

[END OF SECTION A]

SECTION B: FEDERAL AWARD INFORMATION

I. ESTIMATE OF FUNDS AVAILABLE

Subject to the availability of funds, the total estimated shared ceiling budgeted for an award to be issued under this Addendum is $10,000,000. All terms and conditions of the USAID DiP-WASH APS apply.

II. START DATE AND PERIOD OF PERFORMANCE FOR FEDERAL AWARD

The anticipated period of performance for an award made under the Indonesia Urban

WASH Market (IUWASH Pasar) to the DiP-WASH APS will be five-years.

III. TYPE OF INSTRUMENT

The award(s) that result from this APS Addendum may take the form of a grant (including but not limited to a fixed-amount award) or cooperative agreement5 (including, but not limited to, framework agreements or Leader with Associates awards). USAID reserves the right to determine the type of award after merit review of concept paper or full application or no awards at all through this APS.

[END OF SECTION B]

5 For definitions and descriptions of these types of agreements, please see ADS 303.

https://www.usaid.gov/ads/policy/300/303

SECTION C: ELIGIBILITY INFORMATION

U.S. and non-U.S. public, private, for-profit, and non-profit organizations (NGOs), as well as institutions of higher education (especially minority-serving institutions), and public international organizations (PIOs)6 of any size are eligible to submit a concept note. Further, the organization must be a legally recognized organizational entity in Indonesia. USAID values the partnership of new, underutilized and local partners and locally established entities.

Applicants are encouraged to form partnerships when developing Concept Notes, especially with local entities. Please note that Applicants can serve as sub-awardees, members of a consortium or supporting partners on multiple Concept Notes. However, all eligible interested organizations are restricted to submitting only one Concept Note as the

Prime Applicant at any given time. Please see Eligibility Information of the USAID DiP-

WASH APS for additional information.

[END OF SECTION C]

6 Please see ADS 308 for USAID policy on defining PIOs.

https://www.usaid.gov/ads/policy/300/308 https://www.usaid.gov/ads/policy/300/308

SECTION D: APPLICATION AND SUBMISSION INFORMATION

I. AGENCY POINT OF CONTACT

Questions regarding this Addendum should be submitted in writing to applications-indonesia@usaid.gov with a copy to Ikke Tristianti at itristianti@usaid.gov and Ross

Barnard at rbarnard@usaid.gov by the deadline on the cover page. Specific questions in English about this Addendum should be directed only to the email addresses identified above. The subject of each email should read as follows:

APS No.: 7200AA21APS00004 IUWASH Pasar Addendum

II. APPLICATION PROCESS

All pre-award activities under this Addendum, will be managed by USAID/Indonesia7.

USAID/ Indonesia will be responsible for the review of Concept Notes and Full

Applications and management of any subsequent awards issued under this Addendum.

Applicants are required to follow the Concept Paper instruction set forth in the USAID DiP-

WASH APS and submit Concept Note using the Concept Note Template (Appendix I).

The application process for IUWASH Pasar Addendum will happen in three phases:

1. An open call for a brief (5-page) Concept Note and review of concept notes by

USAID as outlined below;

2. Virtual co-creation discussions and/or workshop(s) with selected Concept Note(s), by invitation only; and

3. Submission and review of Full Application(s), by invitation only.

Additional information about each phase of the Application and Review process is provided below.

Concept Note Review

Concept notes will be reviewed based on the proposed approach, feasibility and alignment with the above- referenced purpose of the Indonesia Urban Water Sanitation and Hygiene Market (IUWASH Pasar) Addendum. Additionally, concepts should be consistent with USAID legal and policy restrictions, including those set forth in USAID’s Automated Directive System (ADS) and in the Foreign Assistance Act of

1961. All terms and conditions of the USAID DiP-WASH APS apply.

Co-Creation Process

Under the USAID DiP-WASH APS, USAID POCs can have extensive and highly detailed design discussions with prospective private-sector partners with regard to potential alliance

7 Other USAID personnel may also participate in reviewing the concept paper; however, concept paper reviews must involve one or more pertinent technical officers or someone designated by the technical office as having the relevant technical knowledge and expertise.

mailto:applications-indonesia@usaid.gov mailto:applications-indonesia@usaid.gov mailto:rbarnard@usaid.gov ideas and activities, so long as that partner is not seeking to receive and manage award funding from USAID. Such discussions help foster the co-creation that is core to the APS approach. They also help create significant flexibility for how USAID and the private-sector partner might ultimately co-create investment opportunities that leverage the relative strengths of all involved parties to achieve the addenda goals in the most effective manner.

These discussions also help the private-sector partner work with its potential Implementing Partners (IP) in developing and submitting a relevant concept paper.

As described in detail in the USAID DiP-WASH APS, continued co-creation after a concept paper is reviewed allows USAID and the proposed partners to clarify the objectives and approach outlined in the concept paper, confirm shared value, and ensure the applicant is well-prepared to provide a full application, if requested.

During this stage of co-creation, the prospective applicant, private-sector partner(s), and the Mission team will refine a situation model and theory of change, explore options for and requirements associated with experimental and quasi-experimental design, and discuss how to develop indicators to support monitoring, adaptive management, evaluation and learning. If co-creation results in a mutually acceptable and a set of specific activities that advance the objectives of the addendum, USAID/Indonesia will request a full application.

By applying to the IUWASH Pasar Addendum, applicants give USAID/Indonesia the right to share concept notes with appropriate external partners for the purposes of evaluation or co-creation. All parties privy to the contents of submitted concept notes, whether within or outside of USAID, will be required to keep contents in confidence. Additional information about the co-creation process can be found in the Application And Submission Information section of the umbrella USAID DiP-WASH APS and through USAID’s Co-creation Toolkits8.

Activity Design, Monitoring, Evaluation and Learning

The ability to effectively monitor activities, evaluate their impact, and learn from the experience depends on a thoughtful and methodologically rigorous approach to activity design. USAID seeks solutions that demonstrate robust design grounded in an efficient and logical theory of change (TOC), tightly linked to appropriate activities and corresponding performance and impact indicators.

As an initial step, concept papers should include a high-level TOC in narrative format that guides actions and monitoring. Applicants may also include a one-page diagram of their high-level TOC as an attachment. This one-page diagram should follow the general TOC guidance listed above, showing at a high level how proposed activities will synergize for the proposed outcomes, and how activities might be monitored to detect problems and/or report progress. A draft Monitoring, Evaluation, and Learning (MEL) plan is also expected as part of the full Application.

Note that, regardless of the designed activities, proposed activities will be designed to be able to report on USAID indicators. Exactly which indicators will serve this purpose will be determined through co-creation and activity design for each area, and their appropriateness will depend on local context and the nature of the activity.

8 https://www.usaid.gov/sites/default/files/documents/EPPR_Co-Creation_Field_Guide-Oct-30-2020.pdf https://www.usaid.gov/sites/default/files/documents/EPPR_Co-Creation_Field_Guide-Oct-30-2020.pdf https://www.usaid.gov/sites/default/files/documents/EPPR_Co-Creation_Field_Guide-Oct-30-2020.pdf

Communication and Submission

Please note that USAID communication with applicant entities seeking to receive and manage award funding from USAID under this Addendum is initially limited to publicly available information. While that allows for extensive and robust discussions, it does not allow USAID to engage in highly specific or detailed activity design discussions until entities seeking USAID award funding submit a qualifying concept paper. By contrast, USAID is free to engage in more detailed design discussions with the private sector and other partners not seeking to receive and manage a USAID award. Questions regarding the nature and scope of partner discussions prior to the submission of a concept paper can be directed to the Agency POC’s as listed above in Section I.

The period after submission of concept papers permits further flexibility and opportunities for co-creation with USAID, the private-sector partner and the proposed IP(s). The full process after submission of concept papers is described in the USAID DiP-WASH APS and, given the objectives of this Addendum, may take 3-5 months.

Please note that non-private sector applicants must include a letter of support directly from the prospective applicant’s private-sector partners. For U.S based Non-Governmental

Organizations, 2 CFR 2009 and 2 CFR 70010 are applicable. For non-U. S based Non-

Governmental Organizations, ADS 303mab Standard Provisions for Non-US Non- Governmental Organizations apply.

Applicants are required to follow the concept paper instructions set forth in the USAID DiP-

WASH APS and submit Concept Note using the Concept Note Template (Appendix I) addressing the objectives and criteria outlined in this Addendum and in the umbrella APS.

USAID/Indonesia will review the concept papers in 30 days after the submission deadline.

Please do not inquire regarding the status of a concept paper until after that time.

USAID/Indonesia appreciates applicants’ patience and understanding with regard to these timelines. USAID reserves the right to fund any, some, or none of the full applications that ultimately result from submitted concept papers and the co-creation process under the APS.

Note: Communication with USAID/Indonesia during the concept note/co-creation phase should NOT be interpreted as a commitment to funding or guaranteed request for a full application. Any expenses incurred by applicants during this time are solely the responsibility of the applicants, unless otherwise stated in writing by USAID/Indonesia.

Full Application

If USAID/Indonesia decides to continue with the proposed activities following the co-creation phase, USAID/Indonesia will request a full application from applicants, inclusive of all modifications, expansions, discussions, etc. resulting from the co-creation phase and will provide a full application template for completion.

9 https://www.govinfo.gov/app/details/CFR-2014-title2-vol1/CFR-2014-title2-vol1-part200/context

10 https://www.govinfo.gov/app/details/CFR-2015-title2-vol1/CFR-2015-title2-vol1-part700 https://www.govinfo.gov/app/details/CFR-2014-title2-vol1/CFR-2014-title2-vol1-part200/context https://www.govinfo.gov/app/details/CFR-2014-title2-vol1/CFR-2014-title2-vol1-part200/context https://www.govinfo.gov/app/details/CFR-2015-title2-vol1/CFR-2015-title2-vol1-part700 https://www.govinfo.gov/app/details/CFR-2015-title2-vol1/CFR-2015-title2-vol1-part700

USAID/Indonesia will only accept full applications from applicant(s) invited to continue in the application process. It is expected that full applications will expand upon their concept note and incorporate any discussions, ideas, plans, feedback or changes from USAID/Indonesia and other partners discussed during the co-creation phase.

III. QUESTIONS AND FURTHER ASSISTANCE

NOTE: This Addendum to the APS serves primarily to outline the goals and priorities of USAID/Indonesia in making an award that advances water, sanitation and hygiene outcomes.

More comprehensive information regarding the application and review processes (including

Concept Note submission, Co-Creation, Full Application, and Evaluation stages) can be found in the USAID DiP-WASH APS. Applicants are advised to refer extensively to both documents in preparing Concept Papers.

Questions regarding the substance and objectives of this Addendum should be directed to the

USAID/Indonesia POCs identified in Section D.I. Please indicate in the email subject line “APS No.: 7200AA21APS00004 Indonesia Urban WASH Market (IUWASH Pasar)

Addendum.”

Questions regarding the substance and terms of the USAID DiP-WASH APS should be directed to Jason Hoppe via email at jhoppe@usaid.gov.

For additional information regarding guidelines and procedures to submit a concept paper, please refer to the USAID DiP-WASH APS and the Co-creation toolkit11.

[END OF SECTION D]

11 https://www.usaid.gov/sites/default/files/documents/EPPR_Co-Creation_Field_Guide-Oct-30-2020.pdf

SECTION E: INFORMATION ON THE REVIEW OF APPLICATIONS

I. REVIEW OF CONCEPT NOTES

USAID will evaluate concept papers and decide whether to engage applicants in further co-creation.

In addition, a highly competitive concept paper addresses most if not all of the following:

● Includes a clear and logical theory of change;

● Proposes clear and realistic technical approaches to achieve activity’s goals and objectives and how they will be sustained;

● Defines a clear and realistic monitoring and learning plan;

● Proposes efficient and effective management approach, including a staffing plan and organizational chart, that demonstrate the capability to successfully implement the proposed technical approaches;

● Maximizes the partnership and leverage of local institutions and experts, relevant other sector initiatives, and demonstrates how the activity will form strong partnership with the Government of Indonesia on all levels; and

● Demonstrates the capacities (e.g. past performance) to conduct the proposed interventions.

NOTE: If USAID/Indonesia requests a full application after evaluation of the initial concept paper, applicants will be given additional, specific evaluation criteria that speak to the subject matter of the concept.

II. MERIT REVIEW CRITERIA AND CONSIDERATIONS

Concept papers will be evaluated based on the general criteria set forth in Section V.A of the USAID DiP-WASH APS and detailed below. USAID will evaluate concept papers and decide whether to engage applicants in further co-creation.

Full applications to the Indonesia Urban WASH Market (IUWASH Pasar) Addendum will be assessed according to the following merit review criteria on an adjectival system (Exceptional, Very Good, Satisfactory, Marginal and Unsatisfactory).

Criterion 1 - Technical Approach

The extent to which the approaches articulated in the Concept Note (a) offer a credible, evidence-based development hypothesis for the Objectives or Intermediate Objectives identified in the Program Description and (b) demonstrate credible approaches to addressing the DiP-WASH Principles (sustainability; use of systems approaches; understanding of local context; equity and inclusion, and leveraging; local capacity development) as relevant.

Criterion 2 - Institutional Capability

The extent to which the Applicant demonstrates institutional capacity to (a) perform proposed activities, (b) build and manage relationships with host country stakeholders and with the

U.S. Government, and (c) assemble high quality teams.

Criterion 3 - Staffing Plan

The extent to which the Applicant’s Staffing Plan with potential key personnel positions demonstrates the capability to successfully implement the proposed Technical Approach.

Note: More comprehensive information regarding the application and review processes

(including concept note submission, co-creation, full application, and merit review stages) can be found in the umbrella USAID DiP-WASH APS, located at grants.gov12. Applicants are advised to refer to both the umbrella APS and this addendum in preparing concept notes and full applications, as applicable.

III. ADDITIONAL CONSIDERATIONS

In addition to aligning with the USG Global Water Strategy13 applicants should ensure that their concept note is aligned with other relevant USAID strategies, policies, and priorities.

Proposed activities should include best practices in market-based approaches for WASH programming that are highlighted in relevant USAID’s series of technical series briefs14.

[END OF SECTION E]

12 https://www.grants.gov/web/grants/search-grants.html?keywords=DiP%20WASH

13 https://www.usaid.gov/sites/default/files/documents/1865/Global_Water_Strategy_2017_final_508v2.pdf

14 https://www.globalwaters.org/water-and-development-technical-series https://www.grants.gov/web/grants/search-grants.html?keywords=DiP%20WASH https://www.grants.gov/web/grants/search-grants.html?keywords=DiP%20WASH https://www.usaid.gov/sites/default/files/documents/1865/Global_Water_Strategy_2017_final_508v2.pdf https://www.usaid.gov/sites/default/files/documents/1865/Global_Water_Strategy_2017_final_508v2.pdf https://www.globalwaters.org/water-and-development-technical-series https://www.globalwaters.org/resources/blogs/new-series-usaid-briefs-provide-technical-guidance-wash-programming

SECTION F: INFORMATION ON THE ADMINISTRATION OF FEDERAL

AWARDS

I. FEDERAL AWARD NOTICES

The USAID Agreement Officer (AO) is the only individual who may legally commit the U.S, Government to the expenditure of public funds. Applicants are prohibited from charging or incurring costs to the proposed award prior to receipt of either a fully executed award or a specific, written authorization from the AO. USAID will administer awards in accordance with Parts 700 and 200 of Title 2 of the Code of Federal Regulation (CFR), and Standard

Provisions for U.S./non-U.S. organizations.

II. TYPE OF AWARD

USAID has a number of assistance award types to choose when providing funds under this

Annual Program Statement to successful Applicants. The type of award and terms and conditions included therein depends upon the type of recipient organization, programmatic factors, and other due-diligence matters (including responsibility determinations.)

III. AWARD DISCRETION

USAID reserves the right to make, or not to make, awards through this Addendum to the

USAID DiP-WASH APS. The actual number of assistance awards, if any, under this

Addendum is subject to the availability of funds, the interests and requirements of USAID, and the viability of Concept Notes/Applications received.

IV. ADDITIONAL INFORMATION ON AWARD ADMINISTRATION

● ADS Chapter 201 Program Cycle Operational Policy:

https://www.usaid.gov/sites/default/files/documents/201.pdf

● ADS Chapter 204 Environmental Procedures:

https://www.usaid.gov/sites/default/files/documents/204.pdf

● ADS Chapter 205 - Integrating Gender Equality and Female Empowerment in USAID’s Program

Cycle:https://www.usaid.gov/sites/default/files/documents/205.pdf

● ADS Chapter 303 Standard Provisions for Non-U.S. Non-governmental Organizations: https://www.usaid.gov/sites/default/files/documents/303mab.pdf

● ADS Chapter 303 Standard Provisions for U.S. organizations:

https://www.usaid.gov/sites/default/files/documents/1868/303maa.pdf

● ADS Chapter 318 Intellectual Property Rights:

https://www.usaid.gov/sites/default/files/documents/1876/318.pdf

● ADS Chapter 579 USAID Development Data:

https://www.usaid.gov/sites/default/files/documents/1868/579.pdf

● Grant and Contract Process: https://www.usaid.gov/work-usaid/get-grant-or-contract/grant-and- contract-process

● USAID Graphic Standards Manual and Partner Co-branding Guide:

https://www.usaid.gov/sites/default/files/documents/1869/USAID_GSM-

02_04_2020.pdf

[END OF SECTION F]

https://www.usaid.gov/sites/default/files/documents/1870/201.pdf https://www.usaid.gov/sites/default/files/documents/1870/201.pdf https://www.usaid.gov/sites/default/files/documents/201.pdf https://www.usaid.gov/sites/default/files/documents/204.pdf https://www.usaid.gov/sites/default/files/documents/204.pdf https://www.usaid.gov/sites/default/files/documents/205.pdf https://www.usaid.gov/sites/default/files/documents/303mab.pdf https://www.usaid.gov/sites/default/files/documents/1868/303maa.pdf https://www.usaid.gov/sites/default/files/documents/1868/303maa.pdf https://www.usaid.gov/sites/default/files/documents/1868/303maa.pdf https://www.usaid.gov/sites/default/files/documents/1876/318.pdf https://www.usaid.gov/sites/default/files/documents/1876/318.pdf https://www.usaid.gov/sites/default/files/documents/1868/579.pdf…