RFIs for 773444-21-Q-0040 - 6.2.21.pdf

Solicitation: 773444‐21‐Q‐0040 Private Equity Advisors Services ‐ OIF & OEI

Amendment 2

Question Answer Please confirm we need a minimum of three separate examples showing our work conducting fund diligence, direct equity investment diligence, and strategic planning?

See bottom of page 48 of the solicitation. Minimum requirement is 3 in each service category, but no more than 5.

Can we only provide one description by a proposed teaming partner in total or in each service category? Does each description have to be a government serviced role?

Description shall be for each service category. No, each description does not have to be a government serviced role.

Is the requirement for Private Equity Investment Advisors a new requirement or is their an incumbent(s) that is currently providing these services to DFC?

There are IDIQ contractors inplace now, but they are on the final option year.

Page 51 of the RFQ states that the “Government anticipates awarding at least two contracts to small business.” How many total awards does DFC anticipate?

6 to 10 IDIQ contracts

Page 48 of the RFQ outlines the requirement for a five‐page Quality Control Plan. How will the Quality Control Plan be evaluated? Will the Quality Control Plan be evaluated under Factor 1: Technical? There is no reference to this requirement in the evaluation factors in RFQ section M.4

It will only be evaluated under our administrative criteria as being present at the time of submission. All vendors must submit their plan to ensure quality performance throughout the course of the IDIQ, the government will not evaluate the content but has the expectation that it will be followed should the offeror receive an award.

Page 48 of the RFQ states that “Quoters are only required to propose a minimum of one category to be considered for award.” Should a quoter choose to respond to only one or two service categories, how will the quoters submission be evaluated vis‐à‐vis quoters that submit for all three service categories? Should a quoter choose to respond to only one or two service categories, will a resulting IDIQ award limit that quoter to participating only in those service categories for which they submitted projects for consideration?

Quoters will be evaluated on a best value basis, based on the breadth and depth of their quote. DFC is looking for offerors who are able to quote on multiple categories, as well as the niche experts quoting on one or two areas. Overall awardees will represent the best value to DFC. Under the fair opportunity guidelines outlined in industry day, submissions will constitute capabilities. IDIQ orders under the Simplified Acquisition

Threshold will only be competed to those determined capable per the IDIQ level submissions.

The RFQ requires quoters to submit a “firm fixed price rate per project.” Please clarify.

What projects does the RFQ refer to?

See answer to question 19.

Could we present a region‐specific proposal, focused only on Latin America, or are you only requiring global‐reach Advisory services?

No, DFC is requesting quotes by service category.

Does the ceiling dollar amount of US$ 5,000,000 presented in the services description encompass advisory‐related expenses?

Yes

If the offeror provides a cover page to Volume 2 will it be counted in the page limit? Yes

Can DFC please confirm that the NAICS code for this solicitation is 523930 with a small business size standard of $41,500,000 in annual revenue?

Yes

Given that the third service category does not necessarily involve a transaction, will the

DFC confirm that relevant past projects to be submitted as part of Section 1: Equity

Fund/Co‐Investment Experience Project Experience may include portfolio construction, strategic planning, and other non‐transaction examples?

Yes

Page 7, A. 1. states: “The Contractor should factor in their bid price due diligence meetings domestically and overseas, if such visits are deemed necessary to complete the Scope of Work.” Can DFC confirm that the bid price referenced here is for specific task orders, not for the IDIQ price proposal?

Correct. Travel cost will be determined at each individual Task Order level.

Page 49 states: “Quoters with different labor categories shall map them to those listed in Attachment 2.” Would DFC please confirm that quoters are free to map their own labor categories based on the category title alone? Or is there a DFC labor category catalogue of requirements we should be referring to?

Labor categories are not to be altered.

Page 49, Section 1 – Price Matrix states: “The Quoter shall submit both a firm fixed price rate per project and fully burdened ceiling hourly rates for each labor category in

Attachment 2: Price Matrix.” We note cell D6 of Attachment 2: Price Matrix is highlighted to be filled in for this. Can DFC provide guidance on how offerors are to form the basis of estimate per project during this IDIQ proposal stage given that it seems that different task orders will have significantly different requirements?

The fixed price estimate would be based on level of effort estimation i.e., if the level of effort is estimated for 25 hours to complete a task then you would calculate how much you would charge to complete that task at a fixed price. Task could be simple and straightforward in nature.

Are you able to confirm whether 6‐10 IDIQ awards are anticipated under this IDIQ? We have found that a smaller number of awards for similar IDIQs increases competition among bidding firms that are able to provide transaction advisory services across a range of industries and/or sectors. Therefore, we recommend that this IDIQ consider a more limited number of awards.

Correct, 6 to 10 are anticipated under this solicitation.

Can you describe the internal staff that you have available to work with consultants on these mandates?

OIF has 2 origination directors and 6 directors. See Industry Day Presentation on FBO.

OEI has 6 Senior Investment Officers who would lead the projects and determine consultant deliverables. The OEI Operations Manager would operate as COR.

Can you please provide examples of funds, direct investments, and co‐investments that you currently invest in?

OIF ‐ Refer to DFC's active projects https://www.dfc.gov/our‐impact/all‐active‐projects.

OEI cannot Provide information. OEI assess deals in a variety of sectors coordinated to

Agency development goals. Stage is currently targeted at Series B+.

What is the volume of research a selected consultant would be expected to perform in a given year?

Dependent on front office priorities and political and social focus. Each item would be a separate task order.

Does each description have to be an international transaction example? No.

Section I of the RFQ incorporates contract clause 52.203‐16 (Preventing Personal

Conflicts of Interest) but does not address corporate and institutional conflicts of interest. Please clarify if fund managers, investment funds, and other investment and financial institutions that currently or in the future may financially participate with DFC private equity and debt structured deals are eligible to participate as a prime and/or subcontractor.

This is allowable to quote on the IDIQ pending the restrictions in place on the firm per the individual deal. This may restrict the firm from participating at the order level on conflicting deals.

Please clarify the estimated period of performance for each task. How long does DFC anticipate each task will take to complete?

For OIF 2‐6 weeks or more depending complexity of the transaction. For OEI 4‐6 weeks.

If we were awarded with the contract, what are the conflicts‐of‐interest policies, that would apply to limit the participation in future projects with the DFC?

See answer to question 25.

The scope of services broadly mentions due diligence services as one of the three tasks.

Can you provide an indicative level of effort or the extent of the analysis requested for each capital investment? Related to this, can you provide an example deliverable, i.e. a due diligence report, for the services requested under this IDIQ?

OIF ‐ Due diligence reports can be any format as long as the required infromation is included. In the past, gatekeepers have provided their own report formats. OEI ‐

Advisors can expect to have phone conferences with OEI staff, participate in teleconference DD sessions, conduct research and analysis and culminate in a written report reviewing the investment's merits and risks

Considering the fact that the IDIQ task orders will be US‐based, do you envision that an awardee will be able to leverage foreign, locally‐based resources to reduce costs and expedite the delivery of services?

DFC defers to the vendors to present an approach they believe would be the best value to the agency.

What is the average number of task orders anticipated to be issued annually under this

IDIQ? If you are unable to comment on the first part of this question, can you provide a historical average number of task order issuances for similar IDIQs?

We cannot. The DFC equity program is new and growing, there's no histroical analysis in place to present these types of overall averages.

We currently work with commercial and public sector clients to provide our advisory services on various capital investment amounts. Is there a range of capital investment amounts that will be considered/targeted for this IDIQ?

OIF ‐ The IDIQ will cover several fiscal years. Funding for capital investment is dependent on CBO budget allocations. OEI ‐ 10‐25M placements. DFC does not currently lead rounds and may not own more than 30% of an entity.

Is each consultant required to bid on each Task Order it receives from DFC? It is not required but encouraged. If the IDIQ contractor holder choses not to bid on a particular task then they are most notify the TO‐CO in writing.

Can you describe the difference between co‐investment due diligence and direct equity investment due diligence? We typically rely on information and data from the GP in relation to co‐investments; will there be similar information and data provided in the case of direct equity investments? Are the direct investments alongside a GP or is DFC sourcing these opportunities independent of fund managers?

OIF ‐ Some direct investments are alongside an existing DFC GP. Others are sourced by

DFC independently . OEI ‐ OEI is sourcing deals independent of an existing GP relationship. Engagements may be with Investment Target's Financial advisor and potential co‐investors. Situation may vary on a transaction by transaction basis.

Is the request at the moment limited to Private Equity (PE) funds or can legal advisers also apply?

Yes, it is limited to Private Equity.

Are there any restrictions on third country nationals working on this solicitation? for example we have staff members located overseas (South Africa, Kenya, Nigeria, Asia) who are investment banking experts but non US citizens?

There are no restrictions, however the rates should be reflected accordingly. Also the requirement shall be stated at the Task Order level.

Can you please describe the specific qualifications and backgrounds you seek for these roles? Is it PE background and banking only, or can development or finance professionals also qualify?

Yes, they can work on the project. The gatekeeper/consultant is responsible in doing due diligence on their staff working/assigned to their project.

Are the labor categories likely resticted to the 4 positions listed there? Partner, Senior

Analyst, Analyst, Associate. or were these just guidelines?

Yes, the labor categories are restricted to the 4 stated. If the need to add another labor category is detertmined later, then it will be added to the IDIQ contract by amendment. See page 49 of the solicitation.

Is the transit time not considered part of the billable labor hours? Correct.

Review of proposals submitted online by pool of applicants ("Candidates"); As assigned, DFC may require a Scoring Matrix and/or Summary Reviews of select Candidates.

Correct. DFC will use adjectival ratings.

Will this presentation be available after this? Yes, it will be added to the solicitation attachments on BetaSAM

Do you already have a set pool of consultants (incumbents) that you prefer to work with? Is this solicitation an opportunity for new companies who haven't worked with

OPIC/ DFC in the past to come on board?

This solicitation is full and open. Vendors under the NAICS code 923930 are encouraged to submit a quote.

What is the transaction pipeline and will each one get its own gatekeeper? please describe the pipeline.

Current pipeline is approximately 10 funds. This will vary based on annual budget allocation. The task orders will be issued for each fund, or if the funds represent a similar region or strategy, for a small cohort of funds.

Is it accurate to say that the pool of consultants will bid on each task (whether strategic research, due diligence on a fund, or co‐investment) as they are released?

Yes, but DFC will use fair opportunity procedures where appliable to determine the qualified pool for bidding. See page 21 and 22 of the solicitation.

Considering that there are less than 3 Black‐owned investment consulting firms in the country, how are you being intentional about diversity, equity and inclusion regarding selecting investment consultants? How do you define "qualified" consultants?

The solicitation is full and open. We will award to at least 2 small business. The qualification will be evaluated per the evaluation factors in Section M of the

Solicitation.

If you are a small business, do you still have to come up with a small business plan? No. See RFQ section H.12 regarding small business subcontracting plans.

Will past performance be based on the vendor's past performance or will it be based on the personnel performing the work's past performance?

Vendor's. Employees working for the vendor will be considers as verdor's past performance.

To clarify, 25 hours over the full six week? or 25 per week? Rough estimate of 25 hrs per project (total)

Is there any need to transact any foreign exchange for non‐domestic investments? You mentioned potential investments in Africa for instance.

OIF ‐ Gatekeepers may be asked to provide input on currency risk, but not provide currency exchange. OEI ‐ DFC is contemplating Local currency investments, however, the majority of Equity and Debt placements have been in USD and it is likely anticipated to continue in USD.

Will there be two RFPs one for OIF and one for OEI. For the IDIQ contract there is One solicitation for both. RFQ for the Task Orders will be at the individual requirements.

Will there be limits set for the number of investment reviews per vendor? No.

When is 77344421Q0040 being issued? The solicitation is currently posted on beta.sam

Is the Due Deligence estimates in total or for each gatekeeper? Total estimates across all projects & gatekeepers.

So you plan to select the awardee ahead of time based on qualifications and not through competitive RFTOPs?

DFC will use fair oportunity procedures when appliable to determine the qualified vendor(s) from the overall IDIQ awardee pool who are able to quote on a task order.

These qualifications will be based on capabilities submitted and assessed in this IDIQ award. See page 21 of the solicitation.

Does that mean that all IDIQ holders will receive the PWS or only those that DFC selects based on capabilities submitted?

See answer to question 49.

Will the consultants not selected during the bidding process get feedback on rejection criteria?

Not selected vendors may request a briefing after receiving a notice of unsuccessful offeror.

As the principal of a veteran owned small business, how can I present my services to assist others meet small business contracting guidelines?

A small business vendor can colaborate with a large business, or they can participate in a mantor‐protégé joint venture program. You can also contact the vendors from the industry day on the list provided.

As you move further into direct equity investments, how much value are you placing on value creation efforts / activities vs. due diligence.

Please Define Value Creation. Activities may include but are not limited to Due

Dilligence, Market Assessment, TAM Assessment, Valuation Analysis for Entry, Exit

Analysis, assessment of Fair Value.

Can an application be submitted for just a specific region; i.e. Africa, Asia, Latin America Quotes are to be submit per the requirments discribed in the soliciation. Specific region is not part of the evaluation criteria.

How much original, primary research‐driven due diligence support is the OEI team looking for? The anticipated LOE seems low for any such new efforts.

A consultant with experience in a targeted region or industry is helpful and would reduce the LOE. Generally, the level of effort involved is high for an advisor. OEI relies on the advisors to provide independent analysis, which includes in depth market research and business valuations in an emerging market. Research, analysis, findings and justifications culminates in a comprehensive written report.

In addition to due diligence are you also looking for an investment consultant to assis with sourcing investment opportunities?

No.

In addition to direct deals are you looking at any funds? All funds for the DFC go through OIF.

The RFQ mentions that some travel may be required. Do you have an estimate of how many or what types of services may require travel? How should quoters factor any potential travel into their cost estimates?

Travel and travel cost will be determined per the individual Task requirement.

Do you forsee consultants doing much on‐site, international travel? See answer to question 62.

How should overhead costs be accounted for in pricing? your labor categories are fully burdened right? They should include overheads, not be seperately priced.

Does the 25 hour per inestment noted include travel time? No.

Please clarify the statement on page 49 of the RFQ that the offer shall submit a firm fixed price rate per project. What do you mean by project? Each service area with the

LOE that you just provided such as the 25 hours per project for the six weeks.

See answer to question 19.

Does your budget for investment advisors over the course of the 5 years represent your total budget for all projects?

Yes.

Does this new IDIQ replace current vendor approved "contracts"? This is a recompete for current IDIQ contracts that are expiring soon. Orders issued under the existing IDIQ will be allowed to continue through the end of the period of performance on the order.

Does personnel have to be in place at the time of the proposal, or will you accept employees contingent upon contract award?

There's no work at the quote level. See ordering procedures H.1.1.(e)2ii on page 22.

Will there be more than one advisor in each of the countries DFC is prioritizing to invest?

Yes. Advisors are chosen based on availability and regional/industry expertise for an individual project. There will likely be overlap of advisors in regions and industry as the year progresses.

Are you looking for sector specialized contractors or multidisciplinary across the sectors you’re aiming for?

OIF ‐ The answer is both. We're looking for niche experts and those with experience across all sectors. See pages 51 and 52 of the solicitation. OEI ‐ Multi‐disciplinary would be the default; sector specific knowledge is welcomed and highly valued if it aligns with a specific DFC project. OEI would be interested in both.

If we submit a proposal by the deadline, will we be able to amend it if solicitation amendments are released afterwards?

If there is an amendment to the solicitation then it will state the revised due date.

I have 2 partners that I would like to joint venture with. Can each of us provide a separate example for the 3 project requirement for experience?

JV will be considered as a single entity.

Does DFC consider time spent in transit to not be part of billable labor hours? Correct. Transit is non‐billable hours.

And did you just mention GSA rates? Is this part of a GSA schedule or a full and open procurement?

It is a full and open solicitation with a small business reserve.

Will a list of all vendors be released? Yes.

Is it a requirement to have a small business designation in order to bid on the Private

Equity Investment Advisors Services bid for Notice ID, 773444-21-Q-0040?

No.

Where can I find the qualifications required to bid on the RFP?

Please listen to the Industry Day recording and read the solicitation in its entirety.

Can a vendor submit a quote while their SAM registration is pending? SAM registration must be completed by the time of quote.

Questions are no longer accepted. Quote due date is extended from June 16, 2021, 12:00pm est to June 23, 2021, 12:00pm est.