BAA-OAA-PCM-2017,_Questions_&_Answers.pdf

The United States Agency for International Development’s (USAID) Broad Agency Announcement (BAA) for Catalyzing Private Investment

BAA-OAA-PCM-2017

Questions & Answers

1. Whether companies from Outside USA can apply for this? (like,from India or Canada)

Answer: Groups from outside the United States are welcome to submit an Expression of Interest.

2. Whether we need to come over there for meetings?

Answer: Per Addendum 02, for invited groups, the co-creation event will take place in Washington, D.C., the week of June 19, 2017.

3. Can we perform the tasks (related to RFP) outside USA? (like, from India or Canada)

Answer: USAID expects tasks to be implemented in USAID presence countries.

4. How many parties do you expect to be 'awardees'?

Answer: USAID is unable to determine at this time how many awards will be made.

5. Can a single organization be a prime on one EOI and a subcontractor on a separate EOI?

Answer: Yes, a single organization can be a prime on one EOI and a subcontractor/subawardee on a separate EOI.

6. Can a single organization be a prime on one EOI and a subcontractor on multiple, separate EOIs?

Answer: Yes, a single organization can be a prime on one EOI and a subcontractor/subawardee on multiple separate EOIs.

7. Can we submit the proposals via email?

Answer: Yes, please submit your Expression of Interest to the PCMBAAAddendum02@usaid.gov email address found on page 3, under Section IV Submission Instructions.

mailto:PCMBAAAddendum02@usaid.gov

8. Can a firm/consortium submit more than one EOI response/concept for this Addendum?

Answer: Yes, a firm/consortium may submit more than one Expression of Interest in response to this Addendum.

9. Can a single organization submit multiple EOIs?

Answer: See answer to question 8 above.

10. USAID notes in the BAA Addendum that organizations should include in their EOIs ideas and approaches relevant to the different regions and sectors in which USAID operates. Given the diversity of these regions and sectors, it can be expected that an organization whose concept note receives funding will at some point need to source niche technical or regional expertise to complete select activities. With this in mind, will USAID permit organizations that are invited to submit concept notes to add consortium members to their concept note that were not in that organization’s original EOI? Separately, will USAID permit organizations who are invited to submit concept notes to add consortium members to their concept note that were not in attendance at the co-creation workshop?

Answer: Consortia may stay the same as the original EOI or may add or remove members as a result from the co-creation event. However, organizations that did not submit an EOI or attend the co-creation event are unable to be added as a consortium member.

11. If selected to the co-creation process, can a firm/consortium partner with another firm for the concept note that was part of a submitting EOI, but the EOI not selected for the co-creation event?

Answer: See answer to question 10 above.

12. If selected to the co-creation process, can a firm/consortium partner with another firm for the concept note that was not part of the co-creation event?

Answer: Only those groups that were invited to participate in the co-creation event are eligible to submit concept papers.

13. The call for EOIs seems to imply a preference for individual parties to apply - are we interpreting that correctly, or is there a preference for parties to form consortia prior to bidding?

Answer: USAID does not have a preference for Expressions of Interest submitted by individual parties or consortia. However, please note that the Broad Agency Announcement process strongly encourages stakeholders to collectively come together to jointly development new solutions to a challenge.

14. Are you able to provide an overview of the estimated time line from the co-creation workshop until award?

Answer: USAID plans to make an award by September 30, 2017. However, per the BAA Addendum 02, USAID is not obligated to issue an award as a result of this Addendum.

15. Page 4, Section V, Item 2b, Process, states, the steps in the process leading to an apparent awardee, however does not indicate an anticipated timeline. Question: The Offeror respectfully requests USAID to share its anticipated schedule to reach an Apparently Successful Partner?

Answer: See answer to question 14 above.

16. When are the financing awards expected to be awarded?

Answer: See answer to question 14 above.

17. Page 2, Section II, Collaboration, Item 3, Co-invest states, “Co-investing does not require equally shared resourcing (such as 1:1 leverage), but rather resource contributions that are appropriate to the specific project’s objectives […]” Question: The Offeror respectfully requests insight to the prior BAA co-investments for which USAID has come to an awarded agreement. How is the level of leveraging/investing determined?

Answer: Prior awards issued under the BAA process are not relevant to this Addendum.

Organizations are encouraged to consider providing reasonable cost-sharing, leverage or other exchange of resource arrangements, and are encouraged to suggest creative approaches to resourcing projects.

18. Can you please provide an indication of the total budget that has been allocated for this initiative?

Answer: A budget has not been established for this Addendum - one will be developed during the co-development process.

19. What is the total funding USAID anticipates providing under this BAA Addendum?

Answer: See answer to question 18 above.

20. What is the indicative or projected budget for this solicitation and its subsequent actions? If a budget is not known then when will the budget for this program or initiative be made available?

21. What is the potential budget for these awards and the upper range of these awards?

22. Is there a limitation on the number of applicants selected that will result in revenue for the applicant? If so, what is the maximum projected revenue per applicant under this program?

Answer: There is no limit on the potential number of awards. A budget has not been established for this Addendum, and will be developed during the co-development process.

23. Based on our observation of and participation in select BAAs, USAID has historically been open to the type of contracting mechanisms used to award funding. For this particular BAA, does USAID envision using a specific type of contracting mechanism to award funding to organizations whose concept notes are successful?

Answer: USAID has not determined the type of mechanism that will be awarded.

24. Page 2, Section II, Collaboration, Item 2, Co-design states, “At this point, the Contracting Officer or Agreement Officer may determine the general nature of the award type or the specific award type, depending on the nature of the project, to facilitate project design.” Question: Does USAID have an anticipated schedule for when the award mechanism will be discussed/presented?

Answer: Discussion of appropriate mechanism type will take place during Stage 4 following the Peer and Scientific Review Board.

25. Page 2, Section II, Collaboration, Item 2, Co-design states, “Co-design occurs after the Peer and

Scientific Review Board recommends the project for further development […]” Question: The Offeror respectfully requests additional information about the mission and composition of the Peer and Scientific Review Board.

Answer: Concept Papers developed during Stage 2 will be reviewed by the Peer and Scientific Review Board, which could be comprised of experts from USAID, partners, and/or outside parties. The Peer and Scientific Review Board will review Concept Papers and recommend which applicants should be considered Apparently Successful Partners.

Using its technical expertise, the Peer and Scientific Review Board will recommend whether to move forward with the project including revisions/additions to the project, and potential partners and resources.

26. Addendum 2 File name, refers to the addendum as number 2. Question: Did USAID issue an addendum 01 previously – no such document can be found in the document in Grants.gov relevant to this BAA.

Answer: Addendum 01 was issued on November 24, 2015 closed on January 22, 2016. The BAA process for Addendum 01 was completed in Fiscal Year 2016.

27. Page 4, Section V, Item 2b, Process, states, that the travel costs to the co-creation workshop will not be reimbursed by USAID. Question: Please confirm what, if any costs, will be reimbursable prior to the award since the co-creation phase can take some significant technical contribution of the offeror.

Answer: USAID will not reimburse any costs associated with the BAA process.

28. Page 5, Section V, Item 2e, Process, states, successful concept papers will be recommended for award. Question: If new USAID-funded opportunities result from the ideas/approaches developed under Addendum 02 to the BAA on Catalyzing Private Investment, and are advanced through the award resulting from this Addendum, will the partner organization(s) implementing Addendum 02 be excluded from bidding on future solicitations that incorporate those ideas/approaches?

Answer: This will depend on future programming considerations. Organizations submitting EOIs will not be excluded from other funding opportunities. Potential conflicts with other funding opportunities will be dealt with on a case by case basis following the EOI acceptance stage.

29. Can USAID confirm whether Addendum Number 02 to the Catalyzing Private Investment BAA, FY17 Expanding Use of Blended Finance Solutions to Support USAID Priorities, which was released on April 17, is the same opportunity as the FY17 Private Capital Mobilization Project, which was previously listed on the USAID Business Forecast, but seems to have been removed?

Answer: Yes, the BAA “Expanding Use of Blended Finance Solutions to Support USAID Priorities” is the same opportunity as the Private Capital Mobilization Project.

30. Has the PCMP opportunity been taken off indefinitely, or is it being redesigned and later to be re-inserted into the Washington Forecast?

Answer: See answer to question 29 above.

31. If the PCMP opportunity has in fact been removed from the Washington Forecast, is the new

BAA for Expanding Use of Blended Finance Solutions to Support USAID Priorities a substitution for the PCMP opportunity?

Answer: See answer to question 29 above.

32. What is the anticipated scope for the eventual awardee(s)? Is the focus on finding and developing a solution, or also on identifying and appointing the party to drive and manage that solution into the future?

Answer: There is no pre-determined scope for the BAA. The focus, rather, is to gather the best ideas from applicants on how they would approach the problem presented, and partner with a selected subset of them to refine one or several of these ideas. The focus is both on finding and developing an approach, process and framework and, in the end, appointing a party or consortia of parties to drive and manage that approach.

33. At the end of the BAA process, does USAID anticipate working with successful applicants by i) providing capital towards innovative blended finance approaches or opportunities, or ii) providing support to enable analysis or advise to facilitate blended finance approaches or opportunities

Answer: The focus of the BAA is identifying a consortium of participants that can research and develop the best methodologies and processes to identify, cultivate, and develop blended finance solutions and networks. One or more successful applicants will be expected to deploy, test and refine those strategies. While a specific finance structure may be executed as part of that strategy, the BAA is NOT looking for specific blended capital solutions in specific sectors or geographies, but rather a better way to scale solutions across USAID presence countries, taking into account the organizational constraints of USAID, and the attributes of the global investment community.

34. At this EOI stage, should the emphasis be primarily focused on ideas for potential solutions, or rather on the design of a methodology and process to identify, cultivate and develop those ideas?

Answer: See answer to question 33 above.

35. Is USAID looking for ideas that will either immediately or eventually channel direct USAID capital into blended finance mechanisms, or is it looking for ideas focused more on USAID playing a facilitating role and serving as a resource for other capital providers, including private investors and/or development finance institutions?

Answer: See answer to question 33 above.

36. Would USAID prefer proposals that are tailored to a particular sector (such as renewable energy) or a broader idea that can be tailored to a number of areas?

Answer: See answer to question 33 above.

37. Similarly, should we propose a specific idea for one region/country, or a global solution?

Answer: See answer to question 33 above.

38. It is our understanding that rather than propose specific blended capital strategies, we should focus on overviewing our firm’s experience and skillset designing, deploying, and evaluating blended capital approaches in general. Is this correct?

Answer: See answer to question 33 above.

39. The BAA states that USAID is ultimately seeking blended capital solutions “across the different regions and sectors in which USAID operates.” Are there any priority sectors where USAID intends to focus?

Answer: See answer to question 33 above.

40. As part of the EOI, would it be acceptable to propose multiple different ideas in our submission, or would you prefer individual EOIs to focus on a preferred solution?

Answer: For clarity it would be best to focus each EOI submitted on one approach, but multiple EOIs can be submitted by the same organization.

41. While USAID indicates it is not looking for specific transactions or blended finance solutions, is it envisaged that this mechanism may eventually support blended finance transactions – either through a structure established as a result of this BAA, or through direct engagement of transaction advisors to support the development, negotiation and close of blended finance transactions?

Answer: Yes, this is a possibility.

42. Is USAID soliciting support from the partner(s) on the design and setup of any proposed initiatives with the intention for USAID to eventually own the implementation in-house, or is USAID open to proposals involving the long-term involvement of the partner(s) in implementation?

Answer: At the end of the process, PCM will decide whether or not to enter into one or more grant agreements, cooperative agreements or contracts with one or more applicants or a consortia of applicants. These contracting parties might have offered solutions that are internal to USAID, sit outside of USAID but are accountable to it, or a hybrid of both.

43. Does USAID intend for any proposed initiatives to be permanently housed in and managed by the Office of Private Capital and Microenterprise, or another part of the Agency? In other words: is USAID interested in pursuing an Agency-led and -managed initiative, or something more like a multi-stakeholder partnership that is operated outside (but influenced by) USAID?

Answer: See answer to question 42 above.

44. If an organization includes a consortium in its EOI and that EOI is selected by USAID to move forward, will the organization be required to split its allotment of 2 invitations to the co-creation workshop among its consortium or will the organization and each of its consortium members be allowed to bring up to two experienced technical experts to the workshop?

Answer: This will ultimately depend upon the overall size of the co-creation workshop and how many invitees are anticipated. USAID will attempt to encourage robust representation from all selected parties but, reserves the right to keep the co-creation manageable to maximize effectiveness.

45. Please explain how concept notes funded under this BAA will complement the following, similarly focused USAID programs: The Financing Growth Program implemented by Deloitte, The Investment Support Program implemented by Dalberg Advisors, and activities funded under the Office of Private Capital and Microenterprise’s BAA #1.

Answer: The solutions sought under this BAA may complement all of these programs by improving the speed and efficiency of USAID in facilitating blended capital solutions.

46. Can USAID please provide its definition of blended capital?

Answer: Broadly speaking, blended capital is the strategic use of philanthropic and public resources to catalyze private capital flows to emerging and developing markets, resulting in positive results for both investors and communities.

47. Would you consider blended finance solutions that might be linked to a fund or investment strategy that might act as a catalyst for growing private sector capital into emerging and frontier markets and assist in positively contributing to the UN SDG?

Answer: That specific solution does fall within our blended capital definition above, but again, this BAA is focused on providing the methodology for delivering that kind of solution, not the solution itself.

48. Can USAID do direct investment support through first loss guarantees and profit give-ups to attract private sector capital?

Answer: Addendum # 2 to the BAA seeks research and design of a better methodology through which to deliver blended finance solutions rather than specific structures. During the implementation phase, USAID is open to any structures that might catalyze private sector finance. USAID’s Development Credit Authority can guarantee or provide a first loss position (i.e. a reserve fund) on a case by case basis. USAID has and will continue to explore grant structures that may be used to support or mimic equity funds, including providing support for a first-loss position.

49. Could you please clarify if you want proposals on how best to (i) facilitate the design, deployment or evaluation of blended finance approaches/products; or (ii) increase the speed and efficiency of USAID, other donors and investors in accessing expertise to design and deploy blended finance solutions? This wasn’t very clear in the proposal design. This is relation to Criteria #1 "Idea/Approach" on page 4 of Addendum

Answer: USAID is looking for Expressions of Interest that address either area or can address both at the same time.