Attachment 2 - 1131PL21RDS21030 - Performance Work Statement Global DS Series.pdf

SECTION D – ANY CONTRACT DOCUMENTS, EXHIBITS OR ATTACHMENTS

D.1. PERFORMANCE WORK STATEMENT (PWS)

GLOBAL CIVIL NUCLEAR ENERGY DESK STUDY SERIES

D.1.1. OVERVIEW

The U.S. Trade and Development Agency (USTDA) is a foreign assistance agency that delivers its program commitments through grants and contracts. The projects supported by USTDA activities represent strong and measurable development priorities in the host country and offer opportunities for the sale of U.S. goods and services. Requests for USTDA assistance are made by either public or private sector project sponsors for implementation in developing and middle income countries.

D.1.2. SCOPE OF WORK

USTDA requires services under this non-personal services Desk Study (DS) contract to support its decision-making relative to the funding of project planning activities in the civil nuclear energy sector globally. Activities for review are expected from Eastern Europe and may include other regions such as Southeast Asia. The Contractor shall:

• Assess and provide a recommendation on whether or not USTDA should provide funding for proposed feasibility studies, technical assistance, pilot projects, or other project planning activities, hereinafter referred to as “activities;”

• Provide supporting analysis for the recommendation in Business Confidential Analysis and Recommendation reports that analyze all relevant issues; and

• Assess the potential of the civil nuclear energy sector and sub-sectors worldwide for U.S.

suppliers of goods and services in a Public Market Report suitable for public distribution.

USTDA intends to contract with a U.S. company (the “Contractor”) to perform a Desk Study Series to review up to five (5) preliminary proposals and/or project concepts and complete five (5) Business Confidential Analysis and Recommendation reports for USTDA funding requests in the civil nuclear energy sector in worldwide. The Contractor shall provide one (1) Final Report in cumulation to USTDA.

For each Business Confidential Analysis and Recommendation report the Contractor shall:

1) assess whether or not the request meets USTDA’s basic funding criteria (see Section D.1.3);

2) develop and recommend the appropriate Terms of Reference (TOR) for the activity;

3) develop an appropriate budget for the TOR recommended for the activity.

For each Business Confidential Analysis and Recommendation report, the Contractor shall also complete prepare a stand-alone Public Market Report that provides current market information about the relevant host country(ies) and sector(s).

a. If Contractor is having difficulty meeting this requirement, the Contractor must discuss the findings of the mission with the Contracting Officer’s Representative (COR) in advance of writing the draft Final Report.

b. The Contractor shall obtain the COR’s written approval before developing any activity beyond the minimum one per country.

USTDA reserves the right to make the final determination on which activities merit consideration for the Project Reports. Each Business Confidential Analysis and Recommendation report, unless otherwise directed by USTDA, shall be labeled clearly on every page as “Business Confidential” and shall be treated accordingly per sections D.1.9, “Confidentiality,” and D.1.10, “Intellectual Property.”

The Contractor will not be paid for reports that are not approved or completed.

The actual number of deliverables/reports against this contract is dependent on the availability of suitable projects. Therefore, not all deliverables may be required or be possible and the figures provided for the Project Reports are not-to-exceed ceiling figures and not actual figures. The Contractor shall only invoice for work/deliverables actually completed. Any unexpended funds will be de-obligated from the contract at close-out.

D.1.3. USTDA FUNDING CRITERIA

The Contractor’s recommendations shall be based upon USTDA funding criteria, which are that the Project(s) must:

a) Be likely to receive implementation financing;

b) Have a procurement process that provides “equal access” to U.S. companies;

c) Represent an opportunity for sales of U.S. goods and services that is many times greater than the initial investment of USTDA assistance;

d) Be a development priority of the Project Sponsor and host country where the Project is located and have the endorsement of the U.S. Embassy in that host country; and

e) Involve U.S. companies that are facing market entry problems and/or strong competition from foreign companies which often receive subsidies and other support from their governments.

The Contractor shall also be required to:

a) Perform preliminary assessments of project viability;

b) Evaluate project implementation financing;

c) Verify U.S. industry competitiveness and assess U.S. export potential;

d) Assess foreign competition and market entry issues;

e) Perform preliminary assessments of environmental and developmental impacts;

f) Perform climate resilience screenings;

g) Analyze potential impacts on U.S. labor; and

h) Assess U.S. firm capabilities and qualifications.

To execute this requirement, the Contractor shall:

1. Meet or have a conference call with the MENA/EE and/or other relevant Regional Team to discuss the desk study series;

2. Identify and evaluate project opportunities and provide recommendations for USTDA funding.

3. Develop Terms of Reference and budgets for five (5) activities for USTDA consideration. All project opportunities proposed by the DS Contractor must be approved by the COR prior to the drafting of a formal funding recommendation.

For each of the five (5) activities to be recommended to USTDA, the Contractor shall develop a stand-alone Project Report. The requirements for the Project Reports are further detailed in the section below.

D.1.4. CLIMATE RESILIENCE SCREENING

Per Executive Order (EO) 13677, USTDA is required to consider climate resilience in its international development work. The Agency has determined that in order to be compliant with the EO, climate resilience screenings must be conducted at the project scoping stage for all feasibility studies (FS) and technical assistance (TA) activities. Accordingly, the Contractor shall conduct a climate resilience screening utilizing the guidance provided in Attachment VII.

D.1.5. PROJECT PROFILE

This Desk Study (DS) series would conduct initial reviews of up to five (5) proposals for feasibility studies, technical assistance, or pilot projects in the civil nuclear energy sector in Europe, Eurasia and other potential Regions and fully develop funding recommendations, terms of reference, and final budgets for up to five (5) activities for USTDA consideration. The DS series would assist USTDA in more quickly responding to and evaluating requests for funding in the civil nuclear energy sector. The proposals could cover a range of technology within the civil nuclear energy industry, including large light water reactor technology and Small Modular Reactor (SMR) technology.

Specific proposals that would be reviewed under the DS series may include: 1) a licensing gap analysis of a country’s existing nuclear energy regulations for inclusion of SMR technology in Ukraine; 2) a front-end engineering and design (FEED) study for a large light water reactor new build in Poland; and 3) development of regulatory infrastructure for civil nuclear energy technologies. It is expected that the level of effort (LOE) for three (3) of the proposals could range between 15 to 20 days. A possible fifth proposal would require an LOE that could range between 30 to 45 days.

Ukraine In February 2020, Ukraine's State Scientific and Technical Center for Nuclear and Radiation Safety (SSTC NRS) signed an agreement with NuScale Power to start work on the evaluation of national regulatory and design processes related to the implementation of NuScale small modular reactor (SMR) technology in Ukraine. The SSTC NRS serves as a key advisor to Ukraine's State Nuclear Regulatory Inspectorate on the review and approval of new nuclear technologies. The SSTC NRS also provides technical advice and independent assessment for the SNRIU to verify compliance with rules, regulations, and standards of nuclear safety, and conduct data analysis and reporting on the safety of nuclear energy. Deploying SMR technology in Ukraine requires a licensing gap analysis between U.S. and Ukrainian nuclear safety regulations.

Poland Nuclear energy is a new priority for Poland due to an expected increase in electricity demand, as well as the country’s commitments to global and EU Climate Change agreements. Over 70% of Poland’s electricity is currently sourced from coal-fired plants, which are aging and will be retired due to EU climate rules. Many of the coal-fired plants are expected to come offline by the 2030s. As a result, the Polish Government is seeking a nuclear technology partner and an Engineering, Procurement, and Construction (EPC) provider. Once selected, the Polish Government intends to deploy between 6-9 GWe of the selected technology over the next two years. This first project is expected to be a 3-unit station with an installed capacity of more than 3 GWe. It is expected that the proposed FEED study would help advance the initial on-site work for the new nuclear plant and identify the necessary information to develop a project proposal for the development of a new nuclear plant.

Vietnam In Vietnam, there is interest in implementing SMRs and other civil nuclear power projects.

Potential projects include revising Vietnam’s Atomic Law from 2008 and development of civil nuclear regulatory infrastructure in the country. The Vietnam Atomic Energy Institute (VINATOM) is the key decision maker for future nuclear power projects in Vietnam and would be a potential partner to deploy NuScale’s SMR technology in the country.

Indonesia In September 2019, NuScale signed an NDA with Indonesia Power (IP) and has been working with them on an outage control center and levelized cost of electricity for a 6-module NuScale Power Plant in West Kalimanthan. NuScale has expressed interest in conducting a feasibility study for IP, with USTDA support, using NuScale approved design, and addressing several of IP’s needs for deployment, including economics, grid capability, deployment timeline, integration with renewables, public consensus, etc. This study would help direct options for nuclear power in Indonesia.

D.1.6. NON-DISCLOSURE AGREEMENT AND KICKOFF

Upon award, the Contractor shall be required to sign a Non-Disclosure Agreement. To the extent that the work under this contract requires that the contractor be given access to confidential information or proprietary data from the Government or other companies, the Contractor agrees to treat such information and data as confidential and to use the information only for the contemplated purpose. After signing the Non-Disclosure Agreement, the Contractor shall contact USTDA’s COR to schedule a meeting or call to discuss details of the Contract assignment. The COR shall provide the Contractor with names and addresses of the potential project sponsor(s), other pertinent entities to contact in the United States and overseas, and any other relevant details or proposals that may impact the design and/or evaluation of the proposed activity(ies).

After reviewing these materials, contact the COR at (703) 875-4357 to discuss initial observations and raise any questions or concerns about the proposal and the Project. At this time, USTDA will provide the Contractor with additional guidance on the Agency’s requirements for the preparation of TOR and budget.

D.1.7. DELIVERABLES

The Contractor shall provide verbal updates to the COR on a regular basis. The deliverables may also take the form of information, advice, opinions, alternatives, analyses, evaluations, recommendations, Final Reports, or other oral or written work products needed for successful performance. The Contractor shall respond in a timely manner to reasonable requests for updates and information from the COR.

The Contractor shall provide the following reports to USTDA:

(a) Evaluation Summaries for up to five (5) proposals or project concepts reviewed by the Contractor (See Section D.1.7.1)

(b) Business Confidential Analysis and Recommendation reports for up to five (5) USTDA funding requests in the civil nuclear energy sector in Europe, Eurasia, and other potential Regions. The Business Confidential Analysis and Recommendation reports must conform to the outline found in Attachment I and provide the requested information and analysis unless otherwise agreed to in writing by USTDA (See Section D.1.7.2).

Additionally, the Contractor shall provide a Public Market Report for each Business Confidential Analysis and Recommendation report. The Public Market Reports must conform to the outline found in Attachment II and, unless otherwise agreed to in writing by USTDA, provide the requested information and analysis in sufficient detail to be useful to prospective U.S. equipment and service providers. The Public Market Reports must be suitable for public distribution and must not contain any confidential information. (See Section D.1.7.3).

Note that USTDA may publish the Contractor’s Public Market Report on its website and/or in other media. The Contractor shall ensure that Public Market Report is suitable for publication and public distribution.

Project Report (s) shall be submitted to the COR and appropriate Country Manager, if applicable, not to finalreports@ustda.gov.

(c) Final Report. The Final Report shall consist all of the Project Reports, inclusive of the Required Budget in individual Microsoft Excel files, that have been approved by USTDA must conform to the outline found in Attachment I and provide the requested information and analysis, unless otherwise agreed to in writing by USTDA. Further Final Report requirements are detailed in section D.1.7.2, Final Report.

Unless otherwise agreed to by USTDA, the Contractor shall submit all reports under this Contract to the COR within at least two months prior to the end of the contract period of performance. If it is anticipated that Project Report(s) cannot be provided within this timeframe, the Contractor shall immediately contact the COR to discuss the reasons for the delay.

D.1.7.1. EVALUATION OF PRELIMINARY PROPOSALS

The Contractor shall assist USTDA in the review of up to five (5) preliminary proposals and/or project concepts. The preliminary proposals and concept papers may be in various formats, stages of readiness/completeness, and may originate from foreign public or private sector project sponsors and/or U.S. companies. USTDA will notify the Contractor when a preliminary proposal or project concept is ready for review. To complete the review of each preliminary proposal or project concept, the Contractor shall review the preliminary proposal or project concept and supporting documentation, then arrange a call or meeting with the COR to discuss the proposed activity. Following the discussion with the COR, the Contractor shall contact the project sponsor(s) and relevant third parties, as needed, to discuss the proposed activity and request any additional information necessary to complete an initial evaluation of the preliminary proposal or project concept. Based on the information reviewed in the preliminary proposal or project concept, the discussions with the COR, project sponsor(s) and relevant third parties, and any additional information received, the Contractor shall provide a written statement (“Evaluation Statement”) to USTDA that includes, but is not limited to: (1) a summary of the proposed project and request for USTDA assistance; (2) a high-level assessment of whether or not the proposed project meets USTDA’s basic funding criteria (see Section D.1.2.1); and (3) a recommendation on whether or not USTDA should undertake a full evaluation of the proposed activity, including the identification of any outstanding information, documentation, and/or other criteria that should be met before a full proposal evaluation can proceed.

In the event that the Contractor does not recommend a proposed activity for further consideration or it is not competitive with other proposals under evaluation, the Contractor’s Evaluation Statement shall identify the specific factors leading to this determination. The Contractor’s feedback in the assessment may be used by USTDA to inform the project sponsor(s) of the areas for improvement in their proposals and/or technical factors that may make the proposed activity not suited for further consideration by USTDA.

All deliverables submitted pursuant to this Desk Study Series shall incorporate all mutually agreed upon materials, revisions, and supporting documentation. The deliverables shall be grammatically and factually correct in all respects, internally consistent, and all statements and tables shall be clear and easily understood by a competent reader, and contain no typographical errors. The deliverables shall also be paginated and clearly labeled. Upon direction from the COR, the Contractor shall submit an electronic copy of the final deliverable to USTDA via email (PDF file) at the following email address: finalreports@ustda.gov. No hardcopy submissions mailto:finalreports@ustda.gov will be accepted. The email subject line must include the title and USTDA activity number of the Desk Study Series so that it is easily identifiable.

Upon government acceptance of a final deliverable, the Contractor shall submit the corresponding invoice to USTDA.

D.1.7.2. BUSINESS CONFIDENTIAL ANALYSIS AND RECOMMENDATION

REPORTS

Upon direction from the COR, the Contractor shall complete up to five (5) full Business Confidential Analysis and Recommendation reports for USTDA funding requests in the civil nuclear energy sector in Europe, Eurasia, and other Regions in accordance with the guidelines provided in this Statement of Work and the Business Confidential Analysis and Recommendation Outline (Attachment I). The Contractor shall consult with USTDA for further guidance on developing the Business Confidential Analysis and Recommendation reports.

Once the COR has indicated that a full Business Confidential Analysis and Recommendation report should be completed for a proposed activity, the Contractor shall review the proposal, then arrange a call or meeting with the COR to discuss the proposed activity. Following the discussion with the COR, the Contractor shall contact the project sponsor(s) and relevant third parties, as needed, to discuss the proposed activity and request any additional information, documentation, and/or clarifications necessary to complete the Business Confidential Analysis and Recommendation. The Contractor shall provide to USTDA a copy of any such requests or correspondence with the project sponsor(s) and/or third parties.

Based on the Contractor’s review of the proposed activity and any additional information, documentation, and/or clarifications provided by the project sponsor(s) and relevant third parties, the Contractor shall prepare and provide to USTDA a first draft Business Confidential Analysis and Recommendation report via email (Microsoft Word/Excel files). The DS Contractor shall provide the first draft Business Confidential Analysis and Recommendation report to USTDA within three (3) weeks of receiving direction from USTDA to complete the report.

The first draft report must be clearly marked “First Draft” on the cover. If it is anticipated that the draft cannot be provided within three (3) weeks, the Contractor shall immediately contact the COR to explain the specific reasons for the delay and establish a new target date for submission of the draft report. USTDA will review the first draft Business Confidential Analysis and Recommendation report and provide comments.

The Contractor shall provide to USTDA and the project sponsor(s) for review and comment a second draft Business Confidential Analysis and Recommendation report that incorporates USTDA’s comments on the first draft Business Confidential Analysis and Recommendation report via email (Microsoft Word/Excel files) within one (1) week of receiving USTDA’s comments on the first draft Business Confidential Analysis and Recommendation report. The second draft report must be clearly market “Second Draft” on the cover.

The Contractor shall discuss the comments from the project sponsor(s) and any third parties with the COR and, based on that discussion, prepare and provide to USTDA within one (1) week a final Business Confidential Analysis and Recommendation report. The Contractor shall also email the final Business Confidential Analysis and Recommendation report to the COR (both Microsoft Word/Excel files and a combined PDF file). The final Business Confidential Analysis and Recommendation report shall be grammatically correct and free of typographical errors. The Contractor may submit an invoice upon completion of each final Business Confidential Analysis and Recommendation report approved by USTDA.

D.1.7.3 PUBLIC MARKET REPORT

The Public Market Report must conform to the outline found in Attachment II, “Desk Study Public Market Report Requirements,” and, unless otherwise agreed to in writing by USTDA, provide the requested information and analysis in sufficient detail to be useful to prospective U.S. equipment and service providers. USTDA anticipates that much of this information will also form a part of the Business Confidential Analysis and Recommendation. However, as this report may be widely distributed by USTDA, it shall not contain any confidential, sensitive, or non-public information.

USTDA may publish the Public Market Report on its website and/or in other media platforms.

Thus, the Public Market Report shall be suitable for publication.

Upon direction from the COR, the Contractor shall submit electronic copy of Public Market Report to USTDA. Reports must be paginated, clearly labeled, and submitted electronically in Adobe PDF format to USTDA via the following email:

finalreports@ustda.gov

The email subject line must include the title of the desk study and the project number so that it is easily identifiable.

The Contractor shall submit the Public Market Report under this Contract to the COR on or about one week following of receiving USTDA’s approval of the final Business Confidential Analysis and Recommendation report.

The Contractor shall not include any business confidential information in the Public Market Report and shall include the following confidentiality certification in the final invoice:

“I hereby certify that the Public Market Report contains no business confidential information.”

D.1.8. QUALITY CONTROL AND PERFORMANCE ASSESSMENT:

D.1.8.1. Quality

The deliverables shall be grammatically and factually correct in all respects, internally consistent, and all statements and tables shall be clear and easily understood by a competent reader, and contain no typographical errors. The Contractor is responsible for quality control actions necessary to achieve quality in the delivery of the required services, which may include the services of a professional editor. The COR will reject any deliverable that does not conform in all respects to the Contract requirements, including but not limited to, the written quality of the Final Report. The Contractor shall correct all deficiencies at no additional cost to the Government.

D.1.8.2. Performance Assessment

During the course of contract period, the COR will track Contractor’s performance. At the end of the performance period, the COR will assess the Contractor’s performance in accordance with FAR 42.15 and report to the Contracting Officer for submission to the Contractor Performance Assessment Reporting System (CPARS).

The COR will consider all pertinent information during the preparation of the Contractor’s performance assessment. The Contractor will be afforded the opportunity to identify factual errors. The COR’s assessment is not subject to negotiation and the COR will not engage in discussions with the Contractor. Any errors identified by the Contractor will be addressed by the Reviewing Official. A copy of the final performance assessment will be available in the Past Performance Information Retrieval System (PPIRS).

D.1.9. CONFIDENTIALITY:

The proposal of the U.S. firm is a proprietary document and should not be distributed without permission from USTDA and the U.S. firm. The Contractor shall treat any proposal and supporting information submitted by the U.S. firm as business confidential in its entirety, unless otherwise stated in writing by the U.S. firm. The Contractor shall not include any business confidential information in the Public Market Report and shall include the following confidentiality certification in the final invoice:

“I hereby certify that the Public Market Report contains no business confidential information.”

D.1.10. INTELLECTUAL PROPERTY:

This Contract is funded by the United States Government. All intellectual property generated and/or delivered pursuant to this Statement of Work shall be subject to appropriate federal acquisition regulations which entitle the Government to unlimited rights to technical data developed exclusively with Government funds. The Government may: (1) use; (2) disclose; (3) reproduce; (4) prepare derivative works; (5) distribute copies to the public; (6) perform publicly;

and (7) display publicly, the “data” in any manner and for any purpose, and have or permit others to do so (i.e., the Government may sublicense these rights to another contractor). See FAR 52.227-14(a).

D.1.11. IMPARTIALITY:

It is essential that the DM be conducted with complete impartiality and objectivity and that the Contractor and its Subcontractors not obtain an unfair competitive advantage in USTDA-funded activities resulting from this Contract. In accordance with the principles of FAR Subpart 9.5 and USTDA policy, the Contractor and its Subcontractors, if any, for this Contract shall be ineligible to compete for, as a prime or subcontractor or otherwise, USTDA-funded activities that result from this Contract, unless USTDA through its Office of Acquisition Management, shall have granted a waiver, based upon FAR 9.503, that preclusion of the Contractor or its Subcontractors from the follow-on activity would not be in the Government’s interest. This restriction shall remain in effect for three (3) years from the termination of this Contract or until the awarding of a USTDA-funded feasibility study resulting from this contract. The Contractor is responsible for including this restriction in all subcontracts under the Contract.

D.1.12. COORDINATION WITH OTHER CONTRACTORS:

The government may award other contracts for additional work not prescribed in this contract. The Contractor shall fully cooperate with such other contractors in performance of the requirement herein, and as directed by the Contracting Officer. The Contractor shall not commit or permit any act, which will interfere with the performance of work by any other USTDA Contractor.

D.1.13. PERIOD OF PERFORMANCE:

The Period of Performance for this Contract shall be twenty-four (24) months from the date of the Contracting Officer's signature on the Contract.

D.1.14. PLACE OF PERFORMANCE:

The places of performance shall be at the Contractor’s facility.

D.2. ATTACHMENTS

ATTCH/ TITLE

EXHIBIT

I Project Report Outline II Impact on U.S. Labor Statement III USTDA Nationality Requirements IV Required Budget Format V Task Completion Schedule VI Budget Narrative Requirements VII Guidance on Climate Resilience Screening VIII U.S. Companies Contacts

Attachment I – 1

Attachment I

Project Report Outline: Business Confidential Analysis and Recommendation

A. Executive Summary.

The Definitional Mission contractor (“Contractor”) shall provide an executive summary of the Contractor’s findings and recommendations.

B. Project Description.

The Contractor shall hold meaningful discussions with appropriate contacts to determine how USTDA’s funding can be used most effectively to support the implementation of the project(s) identified in the host country.

The Contractor shall provide a brief description and history of the project (the “Project”). The Contractor shall describe the proposed technology from the U.S. firm to be used in the Project.

The Contractor shall gauge the interest of potential project financiers and potential U.S. suppliers and assess whether the proposed USTDA activity(ies) will help accomplish the project(s) goals.

The Contractor shall provide relevant information to potential project sponsors regarding USTDA’s evaluation criteria, timeline, and due diligence requirements. The Contractor shall describe whether the proposed U.S. solution is technically viable and/or commercially available.

If the Contractor finds the proposed U.S. solution is not technically viable and/or commercially viable, the Contractor shall discuss these issues with USTDA program staff before providing a recommendation.

The Contractor shall describe relevant issues to the Project [e.g. host country and/or other stakeholders, sector, Project location, source of raw materials, infrastructure requirements, proposed technological approach, legal and regulatory framework (licenses, permits, etc.), implementation schedule, economic fundamentals (estimated capital cost, operating costs, interest expense, taxes, expected revenues, etc.), the specific objectives of the proposed activity, how the proposed USTDA activity supports the Project implementation process, and any other variables or issues the Contractor deems critical as part of a thorough activity/Project evaluation.]

C. Project Sponsor’s Capabilities and Commitment.

This section describes the Project sponsor’s commitment and capabilities to undertake the activity and the subsequent Project. The purpose is to understand the experience of the Project sponsor and any previous work undertaken by the Project sponsor in the sector. This section should also include a discussion of any potential risks of working with the Project sponsor that could delay Project implementation. This can take many forms but should at a minimum address the applicable points below:

• A thorough description of the host country Project sponsor, including its structure, capabilities, operations, and decision-making ability pursuant to the Project, and

Attachment I – 2

• An assessment of the Project sponsor’s commitment and ability to implement the Project (e.g. the Project sponsor’s previous experience, current commitments, responsiveness, business activities, and government mandate).

D. Implementation Financing.

This section describes the Project sponsor’s plans to secure financing to implement the Project.

This can take many forms but should at a minimum address the points below:

• An assessment of the overall cost estimate of the Project;

• For Projects involving potential equity investment, the Project’s proposed debt-equity structure to ensure that it corresponds to the requirements of the prospective lenders (this aspect is critical to USTDA’s decision making); and

• A review of the financing options for Project implementation.

The Contractor is required to contact officials from the potential financing institutions, including, where appropriate, multilateral lending institutions, Export Import (Ex-Im) Bank, Overseas Private Investment Corporation (OPIC), and private/commercial sources, to ensure that the Project sponsor(s) has adequately explored all financing options. The Contractor shall provide names and phone numbers of contacts at the potential financing institutions and summarize their comments. The Contractor must determine the most likely source(s) of implementation financing for the Project. The Contractor must ensure that the Terms of Reference (TOR) for the activity fulfill the requirements of the most likely financing source(s).

E. U.S. Export Potential.

This section describes the U.S. export potential that may result if the Project is implemented.

The purpose is to estimate the U.S. export potential in order to justify USTDA funding for the activity. This can take many forms but should at a minimum address the points below:

The Contractor shall provide a best estimate of potential procurement of U.S. goods and services for Project implementation. This estimate should be supported by a breakdown by category and dollar value of goods and services likely to be imported for the Project and an illustrative list of potential U.S. suppliers of the goods and services for those goods and services listed as likely U.S. exports. The Contractor shall include U.S. content in their evaluation of U.S. exports, including an analysis of U.S. manufacturing and services sourced from the United States that would most likely be used for the Project. The Contractor shall cross-check the U.S. firm’s estimates of U.S. export potential with independent relevant sources, such as:

- USTDA program staff and USTDA’s evaluations data;

- The U.S. Department of Commerce’s International Trade Administration;

- Industry and trade associations; and

- Outreach with other U.S. suppliers in the sector.

Attachment I – 3

The Contractor shall describe how procurements are typically conducted: 1) in the sector; 2) by the Project sponsor; and 3) in the host country. The Contractor shall confirm whether there are local content requirements or procurement restrictions in this sector or for the Project and whether a local provider/distributor will be or is likely to be involved in Project implementation.

The Contractor shall also list any import licensing requirements or permits needed by U.S.

companies to participate and supply goods for the Project. The Contractor shall also identify any U.S. companies already working with the Project sponsor or working in the respective sector in the host country.

The Contractor shall provide a report that summarizes its discussions with U.S. companies that provide goods or services for the Project, and their level of interest in the Project should also be included. The Contractor shall take note on not only the U.S. company’s general interest in the relevant sector or country, but also interest in the specific Project. The Contractor shall analyze how competitive the U.S. company’s goods or services would be if the Project reaches the implementation stage. To ensure no one is given unfair advantage to compete for USTDA’s funding or the Project implementation, the Contractor should be sensitive to disclosing information about the proposed USTDA activity.

The Contractor shall submit a complete list of U.S. companies and other entities contacted, with the name and contact information of individuals interviewed and their responses.

F. Foreign Competition and Market Entry Issues.

This section describes foreign competition and market entry issues in the host country. The purpose is to demonstrate why USTDA funding may be needed in order to level the playing field for U.S. companies. This can take many forms but should at a minimum address the points below.

The Contractor shall provide a discussion of the foreign competition for goods and services likely to be procured for Project implementation by category. The Contractor shall include a discussion of U.S. industry competitiveness in each category, taking into account geographic factors, host country industry capabilities, technology and licensee issues, past procurement tendencies of the Project sponsor, and how the procurement is likely to be conducted. Where relevant, the Contractor shall discuss the extent to which market entry issues impede exports and trade and how the activity will help overcome these obstacles.

G. Evaluation Strategy.

This section describes the strategy by which the Project, if implemented, should be evaluated.

The purpose is to concisely describe the baseline goals and objectives of the Project, along with any potential risks or timeline hindrances, so the actual implementation results can be evaluated accordingly. This can take many forms but should at a minimum address the points below:

• Goals and objectives:

o Clearly define the goals of the Project and identify what will constitute success

Attachment I – 4

Ex: For trade capacity building or legal project, any change in law as result of Project o Identify key sources for information needed to determine if USTDA’s activity attained its objective o Identify potential methods of measurement for evaluation specific to the Project

• Process and Timeline:

o What is the step-by-step process the Project will follow to be implemented, following USTDA’s funding?

o What is the anticipated Project development timeline? This may change, but it is important to know what the original goal is as it will influence USTDA’s evaluation effort.

o How are procurements typically conducted in the sector for this host country?

o Will there be local content requirements?

o Will a local provider/distributor be involved?

o Will there be one big procurement or several smaller ones? Will other entities be involved if the procurements are small?

• Key Leads:

o Are there US companies that already have business with the Project sponsor or in the sector? If so, what is USTDA’s added value for these companies’ ability to pursue additional business?

o Are there any companies short-listed for procurements? If so, are they short listed via direct sales, distributor, etc.?

• Project Implementation Risks: Please articulate the most prominent risks and the potential risk mitigants that may enable activity and/or project implementation success, for example through the specific design of your TORs.

Support for the Project

• How has the host country government expressed support for the project?

• Is there a stated host country government strategy, policy, or regulation that supports implementation of the project?

• What is the breadth and depth of grantee support/engagement on the activity and project? If only one grantee contact is critical and knowledgeable or engaged on the activity/project, what steps would USTDA or the contractor need to take to respond and mitigate the impact/change of personnel/champion for the activity/project?

Financial Strength and Management Acumen

• Once the TORs are complete, what will be the remaining impediments to financing the project?

• What assurances have you received that the parties have the wherewithal to implement the project?

Attachment I – 5

Regulatory, Legal and Economic Risks

• Which permits, licenses, or government agreements that are required at this stage of the project’s development remain outstanding? What are the expected timelines for these approvals? Are any challenges anticipated to obtaining all required approvals for the project?

• Will any federal/state/local political cycles or other political considerations, such as sanctions, impact implementation of the project?

• Are there contract sanctity challenges in your market, and will these challenges have any bearing on implementation? For example, is there a high likelihood that a power purchase agreement may not be honored if lower energy prices become readily available?

What is the risk profile of the proposed USTDA-funded activity?

• Does the U.S. contractor have a track record working in the host country and industry? With the proposed technology? Bringing early-stage deals with this technology and/or in the host country to financial close?

• What assurances have you received that the parties have the wherewithal to implement the activity?

• Should the U.S. contractor be asked for audited financials? If so, do they have them? If not, what else can the contractor provide to demonstrate financial/operational health?

• What percentage of the contractor’s revenue is represented by the USTDA grant?

• For RTMs: describe the anticipated impact of the RTM on the country from which delegates are being invited, and what strategy will be used for invited entity identification and selection.

What are the potential risk mitigants that may enable project or activity implementation success?

• Are there USTDA-activity specific mitigants (e.g. terms of reference, cost share/success fee structure, USTDA disbursement timing, etc.) that can help mitigate the above risks?

• Are there any performance or completion guarantees or other mechanisms will be incorporated into the activity to mitigate completion risks?

• If the risks cannot be mitigated, what factors do you think make the activity/project likely to be successfully implemented?

H. Developmental Impact.

The COR shall identify at least one viable and quantifiable Development Impact Measure that will result from the Project being implemented based on the recommendations of the USTDA activity. The Contractor shall provide the following information for each indicator identified by the COR for each activity: 1) current status, prior to USTDA’s activity and Project implementation (Baseline); 2) anticipated outcomes should the Project be implemented, based on the recommendations of the USTDA activity; 3) the anticipated timeline for the realization of

Attachment I – 6 these outcomes; and, 4) how such information can be measured and what sources could be utilized to determine whether the outcome was realized.

I. Impact on the Environment.

The Contractor shall provide a statement regarding the likely consequences the proposed Project may have on the environment. The Contractor shall ensure that the TOR for the activity includes, at a minimum, a preliminary review of the Project’s impact on the environment, with reference to local requirements and requirements of potential financing source(s) of the Project.

The Contractor should identify potential negative impacts and discuss the extent to which they can be minimized or mitigated.

The Contractor shall conduct a climate resilience screening utilizing the guidance provided in Attachment VII and, based on climate resilience screening results, provide details, including rationale, on whether (a) an in-depth analysis is recommended; (b) an in-depth analysis is not recommended; or (c) whether or not the climate resilience screening has indicated that a proposed Project should not move forward. If in-depth analysis is recommended, the Contractor shall propose language for the TOR (see section O, #4).

J. Impact on U.S. Labor.

The Contractor shall provide an assessment of the impact of the Project on U.S. labor. The Contractor shall address the legislative prohibitions on the use of Foreign Assistance funds described in Attachment II and any implication such prohibitions may have on the activity and/or Project.

K. Qualifications.

The Contractor shall provide a review of the capabilities of the U.S. firm submitting the proposal and the qualifications of the proposed U.S. firm’s personnel.

L. Justification.

The Contractor shall provide an explanation of why USTDA’s grant funding is needed, including a description of how the Project would support U.S. government policy priorities and promote trade, how USTDA's participation would add value to the Project's development, and how the success of the Project would be measured in terms of trade capacity and development impact.

M. Recommendations.

The Contractor shall provide analysis and recommendations as to whether or not the Project meets USTDA’s basic funding criteria as defined in Section 3 in the Definitional Mission Performance Work Statement.

If the recommendation is that USTDA should fund the activity, but in a phased approach or only if certain outstanding issues are resolved or conditions met, those phases, issues or conditions should be clearly delineated and discussed in the recommendation.

Attachment I – 7

N. Contacts.

The Contractor shall provide a list of individuals contacted during the Definitional Mission and fill out Attachment VIII. The list shall include the address, phone and fax numbers, and e-mail address of each individual.

O. Terms of Reference.

For Contractor shall be responsible for submitting to USTDA a Terms of Reference (“TOR”) and budget for the activity that conforms to USTDA’s requirements. This work shall entail working with the U.S. firm and the proposed Project sponsor to develop the TOR and budget for the activity using the U.S. firm’s and Project sponsor’s draft proposal as a basis. The TOR, which must be approved by the Project sponsor and the U.S. firm, should include, at a minimum, the following:

1. Purpose and objective of the activity. This section will contain a concise statement describing the activity.

2. A technical assessment. This section will include relevant background information and analysis that is pertinent to the technical feasibility of the Project (e.g. site selection, gap analysis, data collection, comparative analysis, parameters for pilot project implementation, baseline indicators and key performance indicators, a review of any previous reports or studies related to the Project, and an assessment of technologies to be used in pilot project implementation).

3. An economic analysis of the Project. This section will include a detailed analysis on all of the costs associated with the implementation of the Project, and relevant additional economic analyses relevant to the viability of the Project. This section shall provide all relevant information pertaining to the economic analysis of the Project (e.g. a cash flow analysis, analysis of market conditions, raw material availability, supply agreements, off-take agreements, competing alternative methods of achieving the same or similar Project objectives). This analysis should also include the internal rate of return under a variety of different assumptions (e.g.

different interest rates, depreciation, licensing fees, and import duties).

In addition, in order to provide the Project sponsor with sufficient information to responsibly implement, manage, and maintain the Project for the duration of the investment, this section will provide a Life Cycle Cost Analysis (LCCA) as part of the overall Project cost estimate. The LCCA shall examine the total initial capital costs to plan, design, develop, and build the Project, and also shall include a detailed analysis of the costs associated with the medium-term and long-term operation of the Project, which includes maintaining the facilities, equipment, and other assets financed as part of the Project. Such costs include, but are not limited to, warranties, operation, maintenance, acquisition, installation, refurbishment, and disposal costs that could be encountered throughout the life of the Project.

4. A financing plan for the Project. This section shall provide an analysis on the different types of financing (e.g. equity, debt) available for Project implementation.

Attachment I – 8

This section will assess whether or not potential public and private financing organizations (e.g. the World Bank, relevant regional multilateral development banks, Ex-Im and OPIC) are interested in providing financing for Project implementation. This section shall include a financing plan and a financing strategy, including several approaches to securing financing for the Project based on discussions with the Project sponsor, potential lenders and potential financiers. This section shall outline the rationale for the financing plan and financing strategy and shall take into account a number of relevant factors (e.g. timing, interest rates, and potential financing terms). This section shall also provide a recommendation for the most effective financing sources for the Project.

This section shall include a sensitivity analysis of the return on investment (ROI). The sensitivity analysis shall account for the cost recovery indicators based on different assumptions for key Project variables, such as electricity tariffs, sales volumes, capital and operating cost estimates, and interest rates and investment requirements.

If sources of financing are not yet confirmed, this section shall identify the potential sources of financing. The U.S. firm, with the Project sponsor’s express permission, shall contact the potential sources of financing to assess the likelihood of receiving financing from such sources. This section shall outline the sources including, but not be limited to, bilateral financing institutions, multilateral financing institutions, international financing institutions and local and regional commercial banks.

This section shall also identify any and all Project risk factors and including a risk avoidance/reduction plan for each factor by means of insurance and bonding or other means. The plan shall meet the requirements of the potential financing sources, including host country sources, multilateral financiers, international financing institutions and others.

5. An appropriate preliminary environmental analysis of the Project. This section shall include a preliminary review of the Project’s anticipated impact on the environment with reference to host country requirements and those of potential financiers (e.g. the World Bank). This review would identify potential negative impacts, discuss the extent to which they can be mitigated. The U.S. firm shall develop plans for a full environmental impact assessment if and when the Project moves forward to the implementation stage. This includes the identification of steps that will need to be undertaken by the Project sponsor subsequent to the activity’s completion and prior to Project implementation. Based on the Contractor’s climate resilience screening, if an in-depth analysis for the Project is needed, then the Contractor shall propose language detailing how the U.S. firm should complete such an in-depth analysis for the Project (see Attachment VII).

6. A review of regulatory issues and the legal framework related to the Project.

This section shall include a discussion of the relevant regulatory structure needed, including an assessment of any regulations that would impact the Project's viability, a prognosis to move forward, and a need for additional regulations. Unless otherwise

Attachment I – 9 specified, this review shall include a review of current and…