AID-497-RFI-18-000002.pdf

REQUEST FOR INFORMATION

Date of Issuance: November 17, 2017

Reference No.: AID-497-RFI-18-000002

Preliminary Activity Title: ASEAN-U.S. IGNITE: Inclusive Growth in ASEAN through Innovation, Trade and E-Commerce

Deadline to Submit Responses: December 20, 2017; 04:00 PM, Jakarta, local time

Submit Response to: proposals-indo@usaid.gov

Dear Interested Parties:

This is a Request for Information (RFI) only as defined in FAR 15.201(e), to obtain information related to interest, capabilities, and market information from potential offerors. This RFI relates to an activity with the preliminary title of “ASEAN-U.S. IGNITE: Inclusive Growth in ASEAN through Innovation, Trade and E-Commerce.” The purpose of this activity is to promote a vibrant, well-integrated, and inclusive ASEAN Economic Community driven by an enabling environment that spurs increased global and regional trade.

The purpose of this RFI is to:

• Obtain details concerning interest in USAID’s anticipated requirements described herein;

• Obtain information on the level of capacity of potential offerors relative to the objectives and expected results described in the draft Statement of Objectives (SOO); and

• Solicit and obtain input, feedback and questions of the draft SOO.

Please do not submit any proposals at this time; only information requested in this RFI will be reviewed. Responses will be treated as confidential. A Request for Proposals is anticipated to be released in early January 2018 and will be posted on www.fbo.gov.

All responses should be sent using the cover page that is Attachment No. 2 to this RFI. All comments must be submitted electronically via email to proposals-indo@usaid.gov with the subject title “RFI: IGNITE Activity” no later than the date/time stated above.

The issuance of this request will not restrict the Government's ultimate approach, if any.

Respondents are advised that USAID is under no obligation to acknowledge receipt of the information, answer questions or provide feedback to respondents with respect to any information submitted. Any information submitted in response to this notice is voluntary. Not responding to this request does not preclude participation in any future solicitation, if any is issued.

mailto:proposals-indo@usaid.gov http://www.fbo.gov/ mailto:proposals-indo@usaid.gov

Please note that release of this RFI is not to be construed as a commitment by the U.S.

Government to issue any notice of funding opportunity or ultimately award an agreement on the basis of this RFI. USAID is not responsible for any costs incurred in responding to this RFI.

Thank you for your interest in USAID’s programs and we look forward to your comments.

Sincerely, /s/ Alexis McGinness Contracting Officer USAID/Indonesia

Attachments:

1. DRAFT Statement of Objectives

2. Cover Page Response Form

Standard Clause: FAR 52.215-3 Request for Information or Solicitation for Planning Purposes (Oct 1997)

(a) The Government does not intend to award a contract on the basis of this solicitation or to otherwise pay for the information solicited except as an allowable cost under other contracts as provided in subsection 31.205-18, Bid and proposal costs, of the Federal Acquisition Regulation.

(b) Although “proposal” and “offeror” are used in this Request for Information, your response will be treated as information only. It shall not be used as a proposal.

(c) This solicitation is issued for the purpose to 1) obtain details concerning interest in USAID/Indonesia ASEAN Office’s anticipated requirements described herein; 2) obtain information on the level of capability of potential offerors relative to the objectives and expected results described in the draft statement of objectives; and 3) Solicit and obtain input, feedback and questions of the draft statement of objectives.

https://www.acquisition.gov/far/html/Subpart%2031_2.html#wp1095883

Pre-Solicitation Notice

USAID/Indonesia ASEAN Office IGNITE: Inclusive Growth in ASEAN through Innovation, Trade and E-Commerce

Request for Information (RFI) No. AID-497-RFI-18-000002

The United States Agency for International Development Indonesia Mission, Office for the Association of Southeast Asian Nations (USAID) is contemplating issuing a single cost plus fixed fee term form contract for technical services for ASEAN to support the implementation of policies and regulatory frameworks in order to:

1) Reduce non-tariff barriers to trade through implementation of harmonized, regionally and internationally accepted standards, rules, and procedures known to facilitate the cross-border movement of goods and services.

2) Increase the availability within and among AMS of relevant, affordable, and secure digitally-enabled trade in services that reflect international good practices and are conducive for facilitating e-commerce, especially by Small and Medium Enterprises (SMEs).

3) Strengthen institutional structures and policies that provide incentives for increased entrepreneurship and the use of science, technology, and innovation to drive economic growth.

USAID anticipates this activity will have a five (5) year period of performance at a cost range of $10 - $15 million. This procurement is expected to be conducted as a full and open competition.

USAID intends to issue a Statement of Objectives (SOO), from which a Performance Work Statement (PWS) must be submitted that describes the approach to achieve the objectives of this activity. The PWS must enable USAID to assess the performance of the work against specific, clear and measureable performance standards (in terms of quality, quantity, timeliness, etc.) and show the method of assessing the contractor against said standards. In its proposal, the Contractor must identify interventions that will help achieved the aforementioned objectives.

Attachment 1 hereto is a draft version of the SOO.

The RFI offers the opportunity to provide interested individuals and organizations with an opportunity to review the draft SOO and provide any recommendations and/or questions regarding its content that will enable potential offerors adequate information to prepare a proposal in response.

DRAFT_ IGNITE Statement of Objectives _ DRAFT

ATTACHMENT 1: DRAFT STATEMENT OF OBJECTIVES

Program Title: Inclusive Growth in ASEAN through Innovation, Trade, and E-Commerce

(IGNITE)

1.1. PURPOSE

The purpose of this activity is to promote a well-integrated and inclusive ASEAN Economic Community driven by an enabling environment that spurs increased global and regional trade.

This is consistent with ASEAN’s own vision that its “ASEAN Economic Community by 2025 shall be highly integrated and cohesive; competitive, innovative and dynamic; with enhanced connectivity and sectoral cooperation; and a more resilient, inclusive, and people-oriented, people-centered community, integrated with the global economy.”

If ASEAN institutions are able to foster the political will and the capacity to reduce the time and cost of trade, increase the availability of digital services, particularly across borders, and provide incentives for increased use of science and technology, then ASEAN Member States (AMS) will benefit from accelerated and inclusive growth that will be increasingly beneficial to large and small firms alike.

Through a consultative process with relevant stakeholders, USAID has identified three key focus areas for this activity. As such, this activity is intended to provide technical assistance to ASEAN to support the implementation of policies and regulatory frameworks in order to:

1) Reduce non-tariff barriers to trade through implementation of harmonized, regionally and internationally accepted standards, rules, and procedures known to facilitate the cross-border movement of goods and services.

2) Increase the availability within and among AMS of relevant, affordable, and secure digitally-enabled trade in services that reflect international good practices and are conducive for facilitating e-commerce, especially by Small and Medium Enterprises (SMEs).

3) Strengthen institutional structures and policies that provide incentives for increased entrepreneurship and the use of science, technology, and innovation to drive economic growth.

1.2. BACKGROUND

The Asia region has seen tremendous regional growth over the last several decades and major reductions in extreme poverty, however much of the population (up to 60 percent in some countries) still lives below the moderate poverty line. The ten member states of ASEAN have seen high growth rates in recent years, yet a significant development divide exists between the wealthiest ASEAN countries and those with very low GDP per capita—on average less than $3,000 per year—in the Lower Mekong countries of Cambodia, Lao PDR, Myanmar, and Vietnam. And while economic growth and improved social policies have contributed to shrinking gender gaps in educational attainment, significant disparities remain in women’s labour force participation, job quality and earnings, and, where women operate their own businesses, these tend to be micro- and small businesses in the most disadvantaged sectors.

The ASEAN Economic Community—the fifth largest economy in the world—presents a massive economic opportunity for the United States, with whom a diplomatic relationship has existed since 1977. Vibrant cooperation between the U.S. and AMS has occurred via trade of goods and services, economic and social development, people-to-people connections, institutional strengthening, national security, defense, science and technology, and education.

AMS collectively boast the third highest economic growth rate in the world, after China and India. The majority of ASEAN’s population of over 625 million is under the age of 30, and its consumer class is booming—projections suggest a doubling to 125 million households by 2025. Nearly $5.3 trillion in traded goods pass through the South China Sea annually, of which the U.S. share accounts for over $1 trillion. Trade with ASEAN countries supports over half a million U.S. workers, with jobs in each of the 50 states, and American businesses have more capital invested in ASEAN than in China. U.S. firms partner with ASEAN companies to explore and develop technologies and trade opportunities.

SMEs in ASEAN are an important driver of economic activity. Improved SME access to the ASEAN market is a key priority for all ASEAN member-states and the USG. SMEs account for between 95% and 99% of total establishments in AMS and between 51% and 97% of total employment. The contribution of these enterprises to each AMS’s GDP is between 30% and 53% and the contribution of SMEs to exports is between 10% and 29.9%. They are also important suppliers and business partners for U.S. companies. Small farmers, the majority of whom are women, are major producers of the region’s food and represent the majority of those living in extreme poverty. Women-owned SMEs account for a large source of untapped job creation and economic growth in AMS but encounter significantly more barriers to accessing finance, technologies and trade opportunities than their male counterparts. ASEAN leaders are deeply committed to spurring equitable growth and trade in the SME sector and American firms recognize that many of the approaches that unleash SME trade will also positively impact their bottom line. As a result, there is a strong regional constituency that is driving the effort to reduce transaction costs and develop enabling platforms for increasing SME trade in ASEAN and globally. SME engagement in innovation, e-commerce and the digital economy is a particular target of opportunity.

In 2010, the United States established a U.S. Mission to ASEAN (US-ASEAN), with a resident ambassador arriving in 2011. In November 2015, the US-ASEAN relationship was elevated further to a strategic partnership, which is implemented through a US-ASEAN Plan of Action.

The Plan of Action supports ASEAN’s community building and integration process, including its Strategy, ASEAN Community Vision 2025: Forging Ahead Together.

U.S. goals are consistent and aligned with the ASEAN Vision 2025. In this context, USAID has worked to strengthen trade and enhance connectivity in ASEAN through numerous activities and a new guiding framework. For example, USAID’s Connectivity through Trade and Investment Activity (ACTI) has worked to accelerate implementation of the ASEAN Economic Community Blueprint. The activity helps connect the 10 national single windows of member states to the ASEAN Single Window to enable electronic exchange of data for cargo clearance and, ultimately, reduce the cost of doing business. It also has assisted the private sector institute and harmonized business standards in sectors prioritized for integration and trains entrepreneurs, especially women, in Cambodia, Laos, Myanmar, and Vietnam, in business development and operational skills. Among other activities, the project strengthens ASEAN’s capacity to implement its ICT Master Plan. In 2017, USAID created the USAID-ASEAN Development Cooperation Framework (2017), which is aligned with the goals of the three ASEAN Pillar Communities - Socio-Cultural, Economic, and Political-Security - and reflected in the ASEAN 2025 Vision (see additional information on ASEAN and pillar communities below). This framework is a guiding document for all USAID projects with ASEAN.

The United States Government (USG) views a strong and united ASEAN, a key political and economic ally, as a strategic priority in the region. In addition to the clear economic benefits of engagement, a strong ASEAN will protect vital seaways, promote peace and stability in the region, and continue to address development gaps that, if unchecked, will lead to instability and foster violent extremism.

Development Context: ASEAN as an Institution Unlike other regional institutions, ASEAN has no supranational authority over its member states. Rather, it is an organization which provides a framework for collaboration and cooperation among its member states. ASEAN does have a Secretariat (led by a Secretary General and three Deputy Secretaries-General) which serves as a body of oversight, facilitation and influencing priorities when it comes to managing ASEAN bodies, meetings, and administration, but the Secretariat lacks the capacity to implement or enforce ASEAN agreements.

Rather, ASEAN works through each of its different thematic (or “sectoral”) bodies, which consists of the appropriate officials from all 10 member states, supported by ASEAN Secretariat staff. Some of these are designed as permanent institutions, but most are working groups or senior deliberative bodies made up of national-level government Ministers or other officials relevant to the particular sector. The effectiveness of these bodies depends on a number of factors, including the personalities and authorities of given members of these bodies. Nevertheless, when it comes to support for development efforts all decisions come through these ASEAN bodies. Therefore, efforts focused on “building ASEAN institutional capacity” means supporting key ASEAN bodies in their work, either through partnering on specific activities; facilitating expertise to assist them in decision-making or implementing their agreed work plans; or through direct institutional support to the body itself. Naturally, since these ASEAN bodies are made up of national-level government officials, building capacity of these bodies also translates into capacity-building for AMS.

Notable existing programs by USG and other donors

USG and other Donors

Program/Members/ Framework

Purpose and Resources

ASEAN Masterplan on ASEAN Connectivity 2025, Telecommunications and Information Working Group, Trade Facilitation Work Programme, Financial Innovation Network, Center on Cybersecurity, Regional

To build an ASEAN Community that will contribute to a more competitive, resilient and well-connected ASEAN. Link.

http://asean.org/asean/asean-member-states/

Comprehensive Economic Partnership (RCEP) -- not yet in force

Asia-Pacific Economic Cooperation, Osaka Action Agenda

21 member countries, Electronic Commerce Steering Group

To achieve free and open trade and investment in Asia-Pacific. Link.

Australia's Department of Foreign Affairs and Trade

(DFAT)

Australia’s 2017-18 ASEAN and Mekong Program

To promote inclusive regional economic growth and cooperation.

Link.

Canadian Government

Canada-ASEAN Joint Declaration on Trade and Investment (JDTI) -work plan from 2016-2020

To identify and exchange information on trade and investment opportunities and to strengthen commercial engagement. Link.

Office of the United States Trade Representative

ASEAN-U.S. Trade and Investment Framework Arrangement (TIFA) and Expanded Economic Engagement (E3) initiative

To further enhance trade and investment ties between the United States and ASEAN. Link.

United Nations Joint Declaration on Comprehensive Partnership between ASEAN and the United Nations, Shaping Inclusive Finance Transformations (SHIFT) programme, UN Network of Experts on Paperless Trade and Transport in Asia and the Pacific (UNNExT)

To enhance political-security, economic, and socio-cultural cooperation, including on cross-sectoral issues, as well as Secretariat-to-Secretariat [United Nations/ASEAN] collaboration.

Link. Support national, sub-regional and transcontinental Single Window and paperless trade initiatives.

Link. (SHIFT) To catalyze innovative partnerships across financial, policy, data and training markets to accelerate financial inclusion and women’s economic empowerment participation in the developing world. Link.

U.S.-ASEAN

Connect

U.S. Chamber of Commerce, U.S.- ASEAN Business Council, AmCham Singapore, Asia-Pacific Council of American Chambers of

To increase U.S. Government and private sector collaboration in achieving shared economic integration and connectivity goals https://www.apec.org/About-Us/How-APEC-Operates/Action-Plans http://dfat.gov.au/geo/east-asia/development-assistance/Documents/asean-and-mekong-aid-program-brochure.pdf http://www.international.gc.ca/asean/trade_investment-commerce_investissement.aspx?lang=eng https://ustr.gov/countries-regions/southeast-asia-pacific/association-southeast-asian-nations-asean http://asean.org/storage/2012/05/ASEAN-UN-POA-FINAL-AS-OF-5-SEP-2016.pdf https://unnext.unescap.org/ http://shift.uncdf.org/

Commerce with the ASEAN Economic Community. Link.

U.S. Agency for International Development

ASEAN Connectivity through Trade and Investment program (2013 - 2018)

To increase U.S. economic engagement and cooperation with ASEAN countries. Link.

1.3. PERFORMANCE GOALS, OBJECTIVES AND RESULTS

Objective 1: Reduce non-tariff barriers to trade through implementation of harmonized, regionally and internationally accepted standards, rules, and procedures known to facilitate the cross-border movement of goods and services.

Result 1.1: Decreased time and cost of trade as a result of implementation of the ASEAN Trade Facilitation Framework and the WTO Trade Facilitation Agreement.

Result 1.2: Financial sector integration enables SME trade in ASEAN through reduced transaction costs and increased access to capital and insurance.

Result 1.3: Innovative solutions implemented to remove cross-border logistical bottlenecks, particularly barriers that disproportionately affect SMEs.

Result 1.4: Implementation of regionally and internationally harmonized standards for trade of good and services in sectors identified as priorities for ASEAN-U.S.

cooperation.

Objective 2: Increase the availability within and among AMS of relevant, affordable, and secure digitally-enabled trade in services that reflect international good practices and are conducive for facilitating e-commerce, especially for SMEs.

Result 2.1: Foster nimble regulatory approaches for digital finance (or FinTech) that are conducive for consumers and SMEs engaged in cross-border trade and that foster competition and innovation while ensuring appropriate consumer protection.

Result 2.2: Improve regulatory approaches that foster strengthened cyber security of digital infrastructure and ensure data protection in line with international standards and practices.

Result 2.3: Improve universal service obligation (USO) frameworks, as well as regulatory approaches, to enable innovative business models for extending connectivity, affordability, and relevance of mobile and Internet services.

Objective 3: Strengthened institutional structures and policies implemented that provide incentives for increased entrepreneurship and the use of science, technology, and innovation to drive economic growth.

Result 3.1: Increased investments by public and private sector in R&D incentivized and technology transfer enabled to allow for improved SME productivity.

Result 3.2: Human capital in STEM fields enhanced and regional research talent mobility enabled, especially engaging youth and women, to increase economic opportunities for all.

Result 3.3: Strategic cross-border collaborations among academia, government and the private sector fostered in order to align innovation outputs to business needs.

https://www.usaseanconnect.gov/ https://www.usaid.gov/asia-regional/fact-sheets/asean-connectivity-through-trade-and-investment

Result 3.4: Reduced gender-based barriers faced by women entrepreneurs in growing a business, accessing and employing innovations (including digital finance and technical support from business incubators and accelerators) and engaging in cross-border trade.

The Offeror must propose other standard, custom, and/or output/intermediate outcome-level indicators as well as a schedule of deliverables that capture satisfactory performance in achieving the above-mentioned objectives. In addition, the Offeror must propose targets (annual and life-of-activity) for all the indicators for which it proposes to monitor and collect data. These targets shall be incorporated in the successful Offeror’s contract.

The following are illustrative of indicators that may be appropriate depending on the Offeror’s activities.

1. Number of laws, policies, procedures, laws, policies, or programs developed, harmonized, and/or adopted that promote sustainable and inclusive economic growth through trade, innovation, or digital economies.

2. Number of WTO Trade Facilitation Agreement provisions supported by USG assistance.

3. Number of newly simplified procedures for trade adopted that reduce transaction costs for SMEs and e-commerce platforms.

4. Rank of ASEAN developing countries in specific categories the World Bank Doing

Business Annual Report:

• Reduction in time/cost to export/import

5. Reduction in cost of cross-border capital flows

6. Number of new digital financial tools made available to support SME trade.

7. Rank of ASEAN countries on Global Innovation Index.

8. Number of intermediary organizations supported or created to facilitate technology transfer and research commercialization.

9. Number of persons trained with U.S. Government assistance to advance outcomes consistent with gender equality or female empowerment through their roles in public or private sector institutions or organizations.

1.4. GUIDING PRINCIPLES TO INFORM APPROACH

The Contractor will need to build strong relationships with a range of stakeholders to achieve the goal, objectives and results of this activity. The Contractor must maintain strong working relationships with the ASEAN Secretariat and a number of relevant ASEAN bodies; engage closely with a wide range of USG stakeholders, strategic and interested partners; build strong coalitions with interested industry groups; and establish or strengthen formal mechanisms for conducting policy dialogue with women entrepreneurs and their representative organizations to ensure their concerns and issues are integrated into policy and program development.

Given the complexities inherent in working across ASEAN countries with divergent policy contexts, resource capacities, and exigent needs, and given the insights of dialog partners that have achieved results in similar areas, the proposed approach should reflect, where relevant, the following characteristics:

• Strategic alignment with ASEAN: This activity’s engagements must build on and align with the relevant strategies, blueprints, and action plans already agreed to by AMS. By virtue of the USG-ASEAN relationship, the ASEAN Secretariat will have the option to approve certain aspects of the work plan.

Relevant ASEAN documents include the following.

o ASEAN 2025: Forging Ahead Together (“ASEAN Vision 2025”) o ASEAN Connectivity 2025 (the “Digital Innovation” strategic objectives) o ASEAN Economic Community Blueprint 2025 o ASEAN Economic Community Consolidated Strategic Action Plan o The ASEAN Trade Facilitation Framework o The ASEAN Framework Agreement on Services o ASEAN ICT Masterplan 2020 o ASEAN Financial Integration 2016-2025 o ASEAN Plan of Action on Science, Technology, and Innovation 2016 -2025 o ASEAN Strategic Action Plan for SME Development 2016-2025 o ASEAN Committee on Women (ACW) Work Plan 2016-2020

• Strategic Alignment with the interests of the USG: The US-ASEAN relationship is as strong as ever and is girded by a large set of common interests that are defined in the documents that underpin the US-ASEAN strategic partnership. The Contractor must ensure that all support to ASEAN is consistent with these well-defined, shared interests.

Towards that end, the Contractor must work with USAID to ensure that annual work plans are well vetted with the inter-agency.

• Seek ways to apply or translate international standards for adoption and use by

ASEAN stakeholders: This activity, in advancing ASEAN stakeholder priorities, must harness (where applicable) cutting-edge insights, best practices, and widely accepted standards from beyond the region. Every effort should be made to ensure these standards are gender sensitive and avoid development of standards that differ from or contradict standards that have been agreed upon in other fora.

• Employ market facilitation: The Contractor must employ a market-systems development mindset and market facilitation model for engagement. Special attention must be given to identification of obstacles that are holding back systemic-level changes (e.g., policy gaps, stakeholder incentives, stakeholder relationships, lack of capacity, social norms that reinforce gender bias and discrimination and limit women’s access to decision making forums, finance, etc.) and development of sophisticated approaches for making progress. The Contractor must work through stakeholder groups wherever possible to gain traction and ensure the long-term sustainability of relationships critical to achieving end goals and objectives.

• Achieve right balance between flexibility and focus in activity programming: While this activity will need to be flexible if it is to take advantage of moments of opportunity, the Contractor must maintain focus on key long-term policy objectives as too many changes in course will jeopardize overall results.

• Collaborate with other donor programs: The Contractor must collaborate with or strengthen where possible bilateral dialog partner- and donor-supported initiatives, particularly where doing so would ease translation of ASEAN-wide activities into either policy implementation or private sector investment. This must be explored for both USAID bilateral programs and non-USAID programs.

• Foster sustained private sector dialogue: The Contractor must engage with the private sector in order to solicit information on market-level challenges to growth, illuminate policy response options, and generate useful or novel ideas for both policymakers and the private sector. The Contractor must draw upon the private sector perspective to inform policymaking in order to strengthen (and create links between) domestic and regional industry associations focused on specific areas (e.g., FinTech, digital) of interest to ASEAN bodies.

1.5. GRANTS UNDER CONTRACT

This Activity must include a grants component and authorizes grants under contract (GUCs) over the life of the project of up to $500,000. All GUCs must be made in accordance with ADS 302 and 303. The COR will be significantly involved in establishing selection criteria and must approve the actual selection of grantees; the Contractor must apply the same requirements that apply to USAID-executed grants; and USAID retains the right to terminate the grant activities unilaterally in extraordinary circumstances (see ADS 302.3.4.8). The Contractor must be responsible for developing guidelines (subject to the COR and Regional Contracting Officer approval) for submitting grant proposals, establishing specific eligibility criteria and developing procedures for the review and approval of grants and developing procedures for monitoring the funded projects and reporting results.

1.6. GENERAL CROSS CUTTING REQUIREMENTS

Building ASEAN institutional capacity The Contractor must focus on building ASEAN institutional capacity by supporting key ASEAN bodies in their work, either through partnering on specific activities, facilitating expertise to assist them in decision-making or implementing their agreed work plans, or through direct institutional support to the body itself. Naturally, since these ASEAN bodies are made up of national-level government officials, building capacity of these bodies also translates into capacity-building for AMS. To the extent possible, this will also require the Contractor to continue to build the relationships between the ASEAN sectoral bodies, the private sector and civil-society organizations. When prioritizing technical assistance provision, the Contractor must take into account whether the relevant sectoral body has demonstrated the ability to absorb the technical assistance and the commitment to continue the work once the activity ends.

Gender Equality and Female Empowerment As ASEAN continues to grow, significant progress has been made over recent years in terms of female educational attainment and ASEAN governments’ commitment to address gender inequalities across Southeast Asia. However, much more can be done to address the full range of barriers to the sustainability and growth of women employment and entrepreneurship and women’s roles in policy decision making at all levels of society. As such, the Contractor must identify and address priority “gender gaps” related to gender equality, gender-based violence and female empowerment, identified through a gender analysis, that could affect the achievement of this project’s objectives.

SMEs Improved SME access to the ASEAN market is a key priority for all ASEAN member-states and the USG. SMEs account for between 95% and 99% of total establishments in AMS and between 51% and 97% of total employment. The contribution of these enterprises to each AMS’s GDP is between 30% and 53% and the contribution of SMEs to exports is between 10% and 29.9%.

Small farmers, the majority of whom are women, are major producers of the region’s food and represent the majority of those living in extreme poverty. While it is notoriously challenging to successfully link small businesses to regional and international trade opportunities, there are numerous lessons learned about what works and what doesn’t. A successful bidder will show a clear awareness of those lessons learned and craft a proposal that avoids widely identified landmines.

Given resource limitations, the bulk of assistance provided by this activity must be focussed on reducing transaction costs for SME trade in ASEAN. Assistance in this area could focus on implementation of simplified trading regimes and/or development of trade requirements and processes that can be more easily utilized by SMEs. Logistical hurdles and bottlenecks must be addressed if SMEs are to access regional/international markets effectively. The enabling environment for SMEs can also be positively impacted by improvement in cross-border payment systems that reduce time and cost of trade as well as through operation of e-commerce structures that are allowed to function on a regional basis. Every component of this activity must clearly demonstrate how it will reduce transaction costs and level the playing field for SMEs who want to access international markets.

As this activity will work regionally, it must not provide direct assistance to individual SMEs.

However, there may be instances - particularly in Cambodia, Laos, and Myanmar - where SMEs are not getting good information about how to access regional and international markets from existing service providers. In such instances, it may be reasonable to consider partnering with other donors and/or ASEAN member-states to fill the gap. This kind of trade capacity building (TCB) support must be provided through professionals who are widely acknowledged to be at the cutting-edge of their field to build the capacity of regional (wherever possible) or bilateral service providers that are successfully providing assistance to SMEs already. Such TCB assistance should be limited in scope and designed to yield demonstrable increases in the capacity of SMEs to trade. Baselines and clear indicators of progress must be established before such assistance is provided.

[END]

ATTACHMENT 2

Response Form

Request for Information (RFI) No. AID-497-RFI-18-000002 IGNITE

GENERAL INFORMATION

Name of the Organization:

Contact Person

Name:

Position Title:

E-mail address:

Type of Organization:

US Organization, Large Business

US Organization, Small Business

Other (Please indicate: ____________________)

1. Technical Feedback on SOO. Please provide comments and/or questions regarding the proposed Statement of Objectives.

2. Is the work achievable given the estimated budget for this activity ($10M - $15M)?

3. How should the results detailed within each objective of this SOO be prioritized given the limited availability of funds in order to maximize impact?