BREB Request for Information .pdf

REQUEST FOR INFORMATION

Subject: Combined Request for Information (RFI) &

Sources Sought Notice (SSN) Issued By: USAID West Bank & Gaza Mission Activity name: Building Regional Economic Bridges (BREB) Activity Date of Issuance: December 16, 2021 Closing Date/Time: January 2, 2022 / 15:00 Tel Aviv Time Responses To Email: hdeldelian@usaid.gov

Request for Information (RFI) No. RFI-001-WBG-BREB

The United States Agency for International Development (USAID) Mission in West Bank & Gaza (WBG) issues this RFI for the BREB Activity to request feedback responding to the draft Statement of Work (SOW) in Attachment No. One (1) and questions identified in Attachment Two (2). Responses to the questions will inform USAID in its design and the final development of the SOW for BREB. This is expected to be a Contract with a Period of Performance of five years.

This RFI is issued solely for information and planning purposes. This is not a Request for Proposal (RFP) and is not to be construed as a commitment by the U.S. Government to issue an RFP or ultimately award a Contract based on this RFI. Issuance of a future RFP for this activity is subject to USAID internal approvals and availability of funds.

Please note the following: (a) responding to this RFI will not give advantage to any organization for any subsequent competition; (b) responses are not offers and cannot be accepted by the U.S.

Government to form a binding award; (c) the U.S. Government will not pay for any information voluntarily submitted as a result of this request; (d) responses may be used by USAID without restriction or limitation, therefore proprietary information should not be sent; and (e) applications, proposals, resumes, or promotional materials will be discarded and should therefore not be included in your response.

Submission Instructions: Responses are limited to four pages, numbered bottom right, 12pt Times New Roman font on A4 paper with one-inch margins. USAID will not respond to any questions or clarifications submitted as part of the RFI submission.

In addition to the RFI, USAID WBG is also issuing the Sources Notice as Attachment Three (3) to this announcement. Detailed instructions for responding to the SSN are included within the subject attachment.

All responses to this request should be submitted by email to hdeldelian@usaid.gov by the response due date specified above. No telephone calls will be accepted. USAID will not respond to any questions submitted regarding this notice.

mailto:hdeldelian@usaid.gov mailto:hdeldelian@usaid.gov

Thank you for your continued partnership in this important development initiative.

Sincerely, /S/

Daniel Harter Contracting Officer

Attachments:

Attachment 1: BREB Draft SOW

Attachment 2: USAID Directed Questions

Attachment 3: BREB Sources Sought Notice

Attachment No. One to Request for Information (RFI) No. RFI-001-WBG-BREB

BREB Draft SCOPE OF WORK (SOW)

Acronym List

AMELP Activity Monitoring, Evaluation, and Learning Plan

BREB Building Regional Economic Bridges

DFC Development Finance Corporation

GDP Gross Domestic Product

GUC Grants under Contract

MEPPA Middle East Partnership for Peace Act M&E Monitoring and Evaluation

NGO Non-Governmental Organization

PMP Performance Monitoring Plan

R&D Research and Development

U.S. United States

USG United States Government

WBG West Bank and Gaza

1. TITLE

Building Regional Economic Bridges (BREB) Activity

2. OVERVIEW

The United States Agency for International Development/West Bank and Gaza (USAID/ WBG) intends to award an acquisition activity through a competitive process, subject to availability of funding. The 60-month BREB activity aims to promote peace between the West Bank and Gaza (WBG) and Israel through expanded economic and research partnerships with the WBG, Israel, and the U.S. The activity will also support expanded trade opportunities for Palestinians across the Middle East and North Africa region.

3. BACKGROUND

3.1 Nita M. Lowey Middle East Partnership for Peace Act (MEPPA)

In 2020, through MEPPA, Congress authorized $250 million of funding over five years for its implementation.

The Legislation sets forth two tracks: (1) the People-to-People Partnership for Peace Fund, implemented by USAID, which will provide funding to qualified organizations that help build the foundation for peaceful co-existence between Israelis and Palestinians for a sustainable two-state solution; and (2) the Joint Investment for Peace Initiative, implemented by the U.S. International Development Finance Corporation (DFC), which will provide investments in, and support to, entities that contribute to the development of the Palestinian private sector economy in the WBG.

Substantial empirical evidence supports the proposition that increasing cross border economic flows, measured in both trade and capital movement, decreases the probability of conflict. Joint economic activity increases the cost of conflict for both sides. While there is currently a large amount of trade, the WBG are not receiving significant capital flows or participating in meaningful knowledge exchange with Israel.

Partnerships based around commercial relationships and applied research have the potential to stabilize the region and provide the foundations for peaceful co-existence. These partnerships should promote greater understanding, mutual trust and interest, economic benefits, and cooperation between communities.

Aligning economic incentives will create sustainable partnerships and bonds between Israelis and Palestinians. Economic development supports stabilization by empowering entrepreneurs, growing the middle class, and mitigating unemployment.

3.2 Socio-Economic Background

The Palestinian economy in the WBG is small and fragmented. Since the signing of the Oslo Accord in 1993, the economy of the WBG struggled through more than two decades of war, conflict, and failed peacemaking attempts. Throughout that time, the economy of the Palestinian territories, which continue to be heavily influenced by Israeli security controls and restrictions, moved erratically from periods of rapid expansion and rising employment to periods of slow growth, rising joblessness, and high inflation, with average GDP growth since 1994 offset by an equivalent growth in population. Consequently, Gaza is poorer today than it was in 1994. According to the Palestinian Central Bureau of Statistics (PCBS), unemployment rate reached 27.3 percent in the WBG in quarter 3 of 2021. Youth unemployment stands at over 40 percent and the rate of unemployment for Palestinian youth with a tertiary education is over 63 percent. Private sector growth is limited by extremely low levels of private investment, primarily stemming from numerous constraints on movement, access, and trade, both within the WBG and internationally. To achieve larger political and development goals, strong and consistent economic growth needs to occur in the WBG. Private sector investment and entrepreneurship are critical elements of this growth.

3.3 Linkages to Mission Strategy and U.S. Government (USG)

A competitive Palestinian private sector is essential to the USG objective of reaching a peaceful resolution to the conflict between Israelis and Palestinians. USAID’s efforts to develop the economy of the WBG demonstrate the commitment of the USG to providing assistance that helps to improve the lives of Palestinians and contributes to building a more democratic, economically viable, stable, and secure region.

BREB falls under Development Objective (DO) 2 (“Economic Growth and Infrastructure”) of the USAID/WBG Results Framework and contributes directly to Intermediate Results (IR) 2.2 (“Increased competitiveness of targeted sectors”) and IR 2.3 (“Improved business and investment enabling environment”) of the Mission’s Economic Growth Project (EGP). To the extent that BREB interventions facilitate reforms that reduce barriers to trade, movement, and access, the contract also reinforces IR 2.1 (“Reduced barriers to trade and improved movement and access for people and goods”).

In addition, the contract would reinforce IR 1.3 “Increased constituency for peace among Israelis and Palestinians” under DO1 “Improved Governance and Civic Engagement” and IR 3.1 “Improved student outcomes” under DO3 “Empowered Next Generation of Palestinians”.

BREB would also support the USAID’s Private Sector Engagement Policy by seeking market-based solutions for great sustainability, mobilizing private capital, and increasing collaboration of private sector partners.

3.4 Coordination with other USAID, USG, and Donors Activities

Donors active in economic development in the WBG include the European Union, the World Bank, the United Kingdom, Canada, France, and Germany. BREB will build on regular donor discussions relating to Small and Medium Enterprises (SME), and the Mission will coordinate activities with other donors and stakeholders to avoid duplication and encourage strategic investments. The Mission will also coordinate with the USAID/Jordan and other USAID Missions in the Middle East and North Africa region to leverage activities and enhance trade between countries in the region.

Extensive coordination should take place between BREB and DFC. In addition, BREB will work closely with international financial institutions, such as the European Bank for Reconstruction and Development (EBRD) and the International Finance Corporation (IFC), to secure financing for some of the assisted firms that DFC cannot support. The Department of Commerce’s Foreign Commercial Service will be another key partner within the USG. Coordination is also expected to take place with the USAID/WBG’s Small and Medium Assistance for recovery and Transition (SMART) program. BREB will also work with USAID/WBG staff to identify and target youth and entrepreneurs.

4. STATEMENT OF WORK

The goal of BREB is to promote peace between the WBG and Israel through expanded economic, commercial, and applied research partnerships between the WBG, Israel, and the U.S.

Theory of Change:

If USAID fosters greater economic collaboration between Israelis and Palestinians and enhances their respective economic development and integration into Middle East and North Africa economies then this will improve economic growth in the WBG, resulting in a more conducive environment for peace between Israelis and Palestinians.

Objectives/Components:

BREB will have three main objectives/components as follows:

Objective/Component 1: Facilitate Cooperative Exchange and Knowledge Sharing Objective/Component 2: Foster New Markets Objective/Component 3: Enhance the Capacity of Targeted Entities

At a minimum, BREB will help achieve the following main outcomes/results:

- Economic relationships at the regional level are strengthened through $350 million in additional trade.

- Enhance cooperative technological exchanges, and knowledge sharing between the WBG, Israel, other regional economies, and/or the U.S., defined by 50 partnerships.

- Create new market connections between Israeli and Palestinian companies, with at least 75 Palestinian businesses exporting into new markets.

- Develop a $35 million pipeline of projects that meet the requirements for DFC’s potential investment in the WBG.

Description of Objectives/Components:

The BREB activity will promote joint initiatives that expand regional economic activity and cooperation.

Potential joint initiatives could involve firms, research institutes, trade organizations, non-profit organizations, and individuals. The purpose of these initiatives will be to deepen economic linkages, building the foundations of peace.

BREB’s Objectives/Components are described as follows:

Objective/Component 1: Facilitate Cooperative Exchange and Knowledge Sharing

Sub-Objective/Component 1.1: Support Technology Transfer from Israel and United States to West Bank and Gaza

Israel’s position as a technology leader in multiple sectors means it is well placed to build lasting and mutually beneficial partnerships with Palestinian companies. Israel was previously the beneficiary of such technological exchange with the U.S. BREB would utilize and expand on this model throughout implementation.

The Contractor must promote domestic and foreign investment in Palestinian firms and take advantage of Israeli’s innovation and technology in productive sectors, including, but not limited to, agriculture, manufacturing, water, and energy. Palestinian firms will benefit from transfer technologies and expertise, resulting in increased efficiency and productivity. These advancements will, in turn, drive increased profitability and employment.

Israeli firms will not only benefit financially from this technological exchange, but such partnerships can open new regional trade opportunities for both Israelis and Palestinians. U.S. firms have a similar ability to transfer technology and know-how to Palestinian firms. Firms will be selected based on their potential for growth and ability to enter new markets.

The Contractor must support technology transfer either through direct technology purchases, joint ventures, licensing agreements, or other methods. The Contractor must focus on technology transfers that have positive environmental impacts which could include efficient water use, reduced energy consumption and green energy.

The Contractor must utilize a Grants Under Contract (GUC) mechanism to help fund activities under this sub-component.

Illustrative Activities (activities under this component are illustrative and may include, but are not limited to):

● Foster commercial ventures among Palestinian and Israel and/or U.S. companies;

● Finance licensing and cross-licensing agreements between Palestinian and Israel and/or US companies;

● Finance the purchasing of existing technology from Israeli and/or U.S. companies; and

● Promote the adoption of Research and Development (R&D) agreements among Palestinian and

Israel and/or U.S. companies.

Expected Results

● Strengthened regional economic relationships through $350 million in additional trade.

● Enhance commercial technological exchanges, and knowledge sharing between the WBG, Israel, other regional companies, and/or the U.S., defined by 75 partnerships.

Sub-Objective/Component 1.2: Partnerships on Research and Development and Business Associations

Research institutions play an important role in scientific and technological development. These same institutions play a role in disseminating this research to a wider audience and development of commercial applications. Bringing together Israeli, Palestinian, U.S., and/or regional research institutions can help identify research opportunities. They can develop solutions tailored to the specific country context, and explore opportunities to increase women’s participation in the economy.

Business associations play an important role in supporting cross border trade and cooperation. These associations advocate for policy and regulatory change. They also serve as training and service providers that can enable cross border trade and cooperation.

The Contractor must support enhanced collaboration of businesses associations and support for joint Israeli, Palestinian, and/or regional business associations, with a focus on youth and women’s business networks and associations. These associations support and advocate for ease of movement between Israel and the

WBG.

The Contractor must support enhanced collaboration of research institutions at all levels for work. The implementer may utilize a GUC mechanism to help fund scholarships and partnerships under this sub-component.

Illustrative Activities (activities under this component are illustrative and may include, but are not limited to):

● Establish research partnerships on applied research and experimental development among

Palestinian and Israeli and/or U.S. institutions;

● Develop and/or expand student exchange programs;

● Develop and implement faculty exchange programs;

● Develop and expand exchange programs focused on women’s economic participation;

● Facilitate communication among businesses associations to advocate for enhanced movement for goods and services;

● Improve services (e.g., networking, referrals, professional development programs) at existing business associations to enhance cross-border commerce

Expected Results

● Five research partnerships established among Palestinian and Israeli and/or U.S. institutions.

● Business associations develop or improve 10 services to support cross-border exchanges.

Sub-Objective/Component 1.3: Strengthen Internship and Professional Development/Mentorship Programs

Developing professional connections between the Palestinian businesspersons and entrepreneurs and their Israeli and/or U.S. counterparts can foster long-term business relationships. These relationships can be especially impactful when geared toward Palestinian youth. They provide the youth with valuable skills and connections, while also expanding the pool of educated labor for Israeli and U.S. companies.

The Contractor must develop an internship program with established companies in Israel and the U.S., that allow Palestinians to benefit from on-the-job training. These experiences allow individuals to develop practical skills and build an employment history. In addition, Palestinians will establish connections with individuals and companies in their field. Israeli and U.S. firms will also benefit from valuable new talent.

These internships will allow employees of the firms to see how Palestinians can be brought into their company and create value.

The Contractor must develop a professional development and mentorship plan that establishes a program through which Palestinian entrepreneurs can learn from established entrepreneurs in Israel and the US.

Established entrepreneurs will share their knowledge, skills, and experience, rather than having others learn through a process of trial and error. They will benefit from exposure to new viewpoints and perspectives.

The Contractor must support people-to-people economic exchanges (e.g., academic exchanges, research collaboration, mentorship programs) to enhance mutual understanding and cooperation. The Contractor must, where appropriate, strengthen existing programs and develop new ones that will facilitate these interactions.

Illustrative Activities (activities under this component are illustrative and may include, but are not limited to):

● Support and development exchanges between Israeli and/or U.S. companies and Palestinian

Universities, emphasizing the participation of youth and women-led companies or employees;

● Support and develop internship programs for current and recent Palestinian University student and graduates; and

● Support and develop business and professional mentorship programs for entrepreneurs and business owners.

Expected Results

● 5,000 Palestinian graduates receive internships with Israeli or other international firms.

● Firms and universities establish 25 recurring exchange programs.

Objective/Component 2: Foster New Markets

Israeli and Palestinian companies have the potential to jointly enter new markets that might not be available to them individually. Palestinians have unique business connections to markets with limited Israeli trade.

Israel has the infrastructure to get goods to market. Working together to enter new markets will provide benefits for both sides.

Sub-Objective/Component 2.1 Increase Access to Regional and International Markets

The Contractor must support new market connections between Israeli and Palestinian companies, regionally and internationally. It will build trust between buyers and sellers in the region through information sharing and joint events.

The Contractor must identify new markets, regionally and internationally. The Contractor must support businesses, including youth and women-led businesses, to market their products to these markets. The Contractor may utilize a GUC mechanism to support this sub-component.

Illustrative Examples (activities under this component are illustrative and may include, but are not limited to):

● Conduct export market studies;

● Support trade missions to targeted markets; and

● Support product displays, showrooms, trade fairs, and many other virtual platforms.

Expected Results

● Five new markets opened to businesses.1

Sub-Objective/Component 2.2 Export Support Services

Exporting presents businesses with a host of new challenges. These include compiling customs and border requirements, managing logistics, meeting quality standards, dealing with local legal requirements, and many more. Even with a market and buyer identified, experienced firms can have trouble exporting their product.

The Contractor must develop and implement a program to train businesses and equip them with the skills to export to new markets. This will include supporting first time exports, as well as expanding and continuing to support firms that have exported previously. The implementer may utilize a GUC mechanism to support this sub-component.

Illustrative Activities (activities under this component are illustrative and may include, but are not limited to):

● Strengthen exports to service providers by establishing additional services, including insurance and logistics;

● Provide export training courses to target businesses;

● Assist businesses in sustaining growth and exports; and

● Expand and augment existing export toolkits to support new products and markets.

Expected Results

● 50 businesses or joint ventures export to a new market over a prolonged period of time.

Objective/Component 3: Support Capacity Development of Entities to Enable Cooperative Exchanges

Businesses, organizations, and other entities that could engage in peace building through cooperative activities lack the capacity to take full advantage of exchange opportunities. This lack of capacity could be a result of a number of different factors, including financial, market access, product development among others. Component 3 provides a set of interventions focused around developing the capacity of these entities.

1 For the purpose of this document, the term “businesses” refers to Palestinian firms, or joint Israeli/U.S., and Palestinian ventures.

Sub-Objective/Component 3.1: Firm level assistance to achieve sustainability partnership

Establishing and maintaining partnerships with Israeli or U.S. companies requires a high level of technical sophistication. There are several Palestinian and Israeli firms that, with some additional support, could achieve that level of technical capability.

The Contractor must analyze barriers to cooperative exchanges and provide direct firm-level assistance to companies to build their internal capacity.

Illustrative Activities (activities under this component are illustrative and may include, but are not limited to):

● Diagnostic on firm-level barriers for Palestinian and Israeli business to form partnerships; and

● Capacity development to improve Palestinian competitiveness within regional and global markets.

Expected Results

● Report on barriers to regional partnerships and present USAID with an action plan of mitigating those barriers.

● 25 Palestinian firms increase profitability and regional and global linkages.

Sub-Objective/Component 3.2: Develop a pipeline of bankable projects to support the DFC

The Joint Investment for Peace Initiative part of MEPPA envisions DFC support to Palestinian and Israeli ventures.

The Joint Investment for Peace Initiative aims to attract private investment that promotes Palestinian economic development, increases economic cooperation between Palestinians and Israelis, as well as between Palestinians and American businesses, and contributes to the greater integration of the Palestinian economy into the international, rules-based business system.

The Contractor must develop an action plan for identifying potential Palestinian firms and provide technical assistance to those firms during their application process.

Illustrative Activities (activities under this component are illustrative and may include, but are not limited to):

● Identify companies that can benefit from the Joint Investment for Peace Initiative;

● Develop a pipeline of projects to support DFC investments;

● Provide technical assistance to support companies’ applications; and

● Identify alternative or additional financing sources for Palestinian businesses, either other donors or financial institutions.

Expected Results

● Develop a $35 million pipeline of projects that meet the requirements for DFC’s potential investment in the WBG.

● Assist a minimum of 50 firms to meet the requirements for DFC or other finance institution support.

5. GUIDING PRINCIPLES

The guiding principles listed below will be integrated as part of BREB learning agenda and the Activity Monitoring, Evaluation, and Learning Plan (AMELP), and is expected to be tracked through performance and context data as well as other information such as narrative or geospatial formats.

A. Stakeholder involvement and capacity building

The Implementing Partner will coordinate with all stakeholders to optimize planning and implementation of BREB activities. Project activities will be identified through consultations with relevant stakeholders, including representatives of USAID/WBG Mission. Upon awarding this contract, USAID may choose to set up an advisory board to provide strategic advice on BREB activities.

B. Gender Equality and Female Empowerment

Gender equality and women’s empowerment are fundamental human rights elements and are key to achieving effective and sustainable development outcomes. Women’s economic equality exists when all women and girls have the same opportunities as men and boys for education, economic participation, decision-making, and freedom from violence. In trade, this requires collectively addressing barriers to commercial activity and labor market participation, such as cultural norms; lack of trade-related capacity;

infrastructure and technology challenges; unequal access to distribution networks; and trade information.

According to USAID’s Gender Equality and Female Empowerment Policy, USAID Trade Policy and USAID’s Private-Sector Engagement Policy, trade cross border activities should address challenges unique to women by ensuring a solid gender analysis to identify the gaps that USAID’s assistance can reduce in all forms of cross border trade work. Implementing Partners will be evaluated on their capacity in integrating women and gender equality standards in the different activities. Implementing Partners will propose women economic empowerment opportunities and engagement approaches in all activity results while reflecting specific targets and impacts in proposals to address women economic empowerment and gender equality challenges and barriers.

C. Youth

According to the Palestinian Central Bureau of Statistics (PCBS), West Bank and Gaza’s youth (ages 15-

19) unemployment rate was 43.2 percent in quarter 3 of 2021.

With informal employment generally the norm for virtually every young employed person in the WBG and with only 5.1 percent of them being employed in the formal economy, jobs for youth are a critical development challenge2. As such, the Implementing Partner will integrate youth considerations in day-to-day operations. In pursuant of competitiveness opportunities, the Implementing Partner will engage youth whenever practicable in economic activities that will help to facilitate their entry into the labor market including provision of life and work skills, career guidance and entrepreneurship support, internships, mentorships and help youth access finance for joint new startups. The Implementing Partner will collaborate with the private sector and key stakeholders to help address increased employment for youth and inform youth about options for obtaining skills and jobs, particularly those offered by this activity’s client firms. The Implementing Partner will develop a youth strategy (based on USAID’s Positive Youth Development framework) that incorporates practical ways in the WBG to increase employment among youth with specific focus on graduating university students and TVET graduates.

D. Sustainability

Sustainability is integral to this activity. Approaches to implementation must be sought to ensure the sustainability and self-reliance of Palestinian enterprises after the activity ends. Firms are defined as sustainable if their expansions are derived from normal market processes and not transfers from government or non-profit actors.

BREB will take a multifaceted approach to sustainability by working at every turn to build lasting relationships, supporting sustainable organizations, identifying champions from the early stages of implementation, and building the capacity of local stakeholders to take on more responsibility for implementation of activities as time passes. All BREB activities will be focused on yielding measurable economic growth impacts, while strengthening overall capacity of local institutions. This will help bring credibility to the process and allow stakeholders to see the value in working together to promote growth.

BREB will integrate sustainability into its implementation plan and the learning agenda of its Monitoring, Evaluation, and Learning Plan. It will develop a well-conceived sustainability plan which describes the resources, technical and managerial capacities, and linkages that will sustain program outcomes and/or activities after the program ends.

E. Inclusive Development

USAID is committed to the inclusion of people who have physical and cognitive disabilities and those who advocate and offer services on behalf of people with disabilities. This commitment extends from the design and implementation of USAID programming to advocacy for and outreach to people with disabilities.

2 ILO publication, “Labor Market Transitions of Young Women and Men in the Occupied Palestinian Territory.” Work4Youth Publication Series No. 20 (September 2014) and Work4Youth Publication Series No. 44 (July 2016).

USAID’s policy on disability is as follows: to avoid discrimination against people with disabilities in programs that USAID funds and to stimulate an engagement of host country counterparts, governments, implementing organizations, and other donors in promoting a climate of nondiscrimination against and equal opportunity for people with disabilities. The USAID policy on disability is to promote the inclusion of people with disabilities both within USAID programs and in host countries where USAID has programs.

USAID therefore requires that the Implementing Partner not discriminate against people with disabilities in program implementation and that it makes every effort to comply with the objectives of the USAID Disability Policy in performing this contract. To that end, and within the scope of the agreement, the Implementing Partner’s actions must demonstrate a comprehensive and consistent approach to including men, women, and children with disabilities.

F. Environment

The Implementing Partner shall apply environmental due diligence on all activities in line with USAID rules and regulations. The Implementing Partner shall identify potential environmental impacts of USAID-financed activities prior to a final decision to proceed and ensure that appropriate environmental safeguards are adopted for all activities.

6. Illustrative Indicators

This section provides illustrative indicators for implementers to consider when developing their proposals.

Standard Indicators

● PS.6.2-1 Number of new groups or initiatives created through USG funding, dedicated to resolving the conflict or the drivers of the conflict.

● ES.2-1 Number of host country higher education institutions receiving capacity development support with USG assistance.

● ES.2-54 Number of USG-supported partnerships that address regional, national, and/or local development objectives through or with higher education institutions

● EG.5.2-1 Number of firms receiving USG-funded technical assistance for improving business performance.

● EG.5.2-2 Number of private sector firms that have improved management practices or technologies as a result of USG assistance.

● GNDR-8 Number of persons trained with USG assistance to advance outcomes consistent with gender equality or female empowerment through their roles in public or private sector institutions or organizations.

● STIR-11 Number of innovations supported through USG assistance with demonstrated uptake by the public or private sector.

Custom Indicators

● Number of collaborative agreements established between Palestinian and Israeli and/or U.S. firms or organizations.

● Number of firms receiving financing from the DFC’s Joint Investment for Peace Initiative.

● Number of individuals participating in professional exchange programs promoting cross border trade and cooperation.

END OF Draft SOW

Attachment No. Two to Request for Information (RFI) No. RFI-001-WBG-BREB

USAID Directed Questions

Partners are requested to provide feedback on the attached draft SOW, Attachment No. 1. As part of the feedback, please respond to the questions below:

1) Is the activity description clear and understandable? If not, which section needs additional clarifications? What elements should USAID consider removing? Which elements do you think are critical to add in order to promote economic stability in the region?

2) Are the requirements of each component of the activity feasible?

3) What improvements and/or recommendations would you suggest to better achieve the activity’s goal and contribute to increasing the economic cooperation in the region?

4) Do you foresee any challenges in supporting any of the activities listed in the attached SOW?

5) How do you see the linkages of this activity with the Nita Lowey Middle East Partnership for Peace Act? Do you recommend any other additions to strengthen these linkages?

6) What do you think of the sustainability factor of this activity? Will regional partnerships continue after this activity ends? If not, what can be done to enhance sustainability?

7) What are the biggest risks in implementing this project, and what do you propose to mitigate them?

8) How can USAID encourage further innovative solutions in this design?

9) Are the proposed indicators realistic? What other indicators could be used to measure project performance?

End of Directed Questions

Attachment No. Three to Request for Information (RFI) No. RFI-001-WBG-BREB

SOURCES SOUGHT NOTICE (SSN)

BACKGROUND

In 2020, through MEPPA, Congress authorized $250 million of funding over five years for its implementation. The Legislation sets forth two tracks: (1) the People-to-People Partnership for Peace Fund, implemented by USAID, which will provide funding to qualified organizations that help build the foundation for peaceful co-existence between Israelis and Palestinians for a sustainable two-state solution;

and (2) the Joint Investment for Peace Initiative, implemented by the U.S. International Development Finance Corporation (DFC), which will provide investments in, and support to, entities that carry out projects that contribute to the development of the Palestinian private sector economy in the West Bank and Gaza (WBG).

Substantial empirical data exists that supports the proposition that increasing cross border economic flows measured in both trade and capital movement decreases the probability of conflict. Joint economic activity increases the cost of conflict for both sides. While there is currently a large amount of trade, WBG is not receiving significant capital flows or participating in knowledge exchange with Israel.

Partnerships based around commercial relationships and applied research have the potential to stabilize the region and provide the foundations for peaceful co-existence. These partnerships should promote greater understanding, mutual trust and interest, economic benefits, and cooperation between communities.

Aligning economic incentives provides a bond that will create sustainable partnerships and the business bonds between Israelis and Palestinians. Beyond individual bonds, economic development supports stabilization by empowering entrepreneurs, growing the middle class, and mitigating unemployment.

SERVICES AND TASKS REQUIRED

The United States Agency for International Development (USAID)/West Bank and Gaza Mission is seeking a partner to implement the BREB Activity. The aim of BREB is to promote peace and cooperation among the WBG, the United States (U.S.), and Israel through expanding economic and research partnerships. The activity will also support expanded trade opportunities for Palestinians across the Middle East and North Africa region.

The BREB implementing partner will use flexible, innovative, and adaptive systems to promote cooperation among the WBG, U.S., and Israel to promote peace through expanding economic, commercial and applied research partnerships. Partnering with local institutions and consultants is encouraged in completing tasks in the implementation of the statement of work (SOW) below and attached.

USAID’s BREB activity is in the design process and pending approval. USAID will not issue a solicitation until all activity approvals are completed. Major components of the SOW are highlighted below:

1: Facilitate Cooperative Exchange and Knowledge Sharing

BREB will promote domestic and foreign investment in Palestinian firms and take advantage of Israeli’s innovation and technology in productive sectors, including, but not limited to, agriculture, manufacturing, water, and energy.

Palestinian firms would benefit from transfer technologies and expertise, resulting in increased efficiency and productivity. These advancements will, in turn, drive increased profitability and employment. Additionally, the WBG will benefit from the positive spillover effects of this technology. Israeli firms will not only benefit financially from this technological exchange, but such partnerships can open new regional trade opportunities. U.S. firms have a similar ability to transfer technology and know-how to Palestinians firms. Firms will be selected based on their potential for growth and ability to enter new markets. The Contractor must support technology transfer either through direct technology purchases, joint ventures, licensing agreements, or other methods. The Contractor must focus on technology transfers that have positive environmental impacts which could include efficient water use, reduced energy consumption and green energy.

Research institutions play an important role in scientific and technological development. These same institutions play a role in disseminating this research to a wider audience and development of commercial applications. Bringing together Israeli, Palestinian, U.S., and/or regional research institutions can help identify research opportunities. They can develop solutions tailored to the specific country context and explore opportunities to increase women’s participation in the economy. The Contractor must support enhanced collaboration of research institutions at all levels for work.

Business associations play an important role in supporting cross border trade and cooperation. These associations advocate for policy and regulatory change. They also serve as training and service providers that can enable cross border trade and cooperation. The Contractor must support enhanced collaboration of businesses associations and support for joint Israeli, Palestinian, and/or regional business associations, with a focus on youth and women’s business networks and associations. These associations can serve to support and advocate for ease of movement between Israel and the WBG.

Developing professional connections between the Palestinian businesspersons and entrepreneurs and their Israeli and/or U.S. counterparts can foster long-term business relationships. These relationships can be especially impactful when geared toward Palestinian youth by providing valuable skills and connections and Israeli companies through introducing a new pool of education labor.

Through internships with established companies in Israel and the U.S., Palestinians can benefit from on-the-job training at established companies. These experiences allow individuals to develop practical skills and build an employment history. In addition, Palestinians will establish connections with individuals and companies in their field. Israeli and U.S. firms will benefit from exposure to the new supply of labor and the ability to spot new talent. These internships will allow employees of the firms to see how Palestinians can be brought into their company and create value.

Through a professional development and mentorship program, Palestinian entrepreneurs can learn from established entrepreneurs in Israel and the US. Established entrepreneurs share their knowledge, skills, and experience rather than having others learn through a process of trial and error. Established entrepreneurs will benefit from exposure to new viewpoints and perspectives.

The Contractor must support people-to-people exchanges based on an economic basis. The Contractor must either strengthen existing programs or develop new ones that will facilitate these interactions.

2: Foster New Markets

Israeli and Palestinian companies have the potential to enter new markets that might not be available to them individually. Palestinians have unique business connections to markets with limited Israeli trade. Israel has the infrastructure to get goods to market. Working together to enter new markets will provide benefits for both sides. The Contractor must directly support businesses to export to new markets.

This will include supporting first time exports, as well as expanding and continuing to support firms that have exported previously.

Exporting presents businesses with a host of new challenges. These include compiling customs and border requirements, managing logistics, meeting quality standards, dealing with local legal requirements, and many more. Even with a market and buyer identified, experienced firms can have trouble exporting their product. The Contractor must support new market connections between Israeli and Palestinian companies, regionally and internationally. It will build trust between buyers and sellers in the region through information sharing and joint events.

The Contractor must directly support the identification of new markets regionally and internationally. The implementation will support businesses, including youth and women-led businesses, to market their products to these markets.

3: Support Capacity Development of Entities to Enable Cooperative Exchanges

Businesses, organizations, and other entities that could engage in peace building through cooperative activities could lack the capacity to fully take advantage of exchange opportunities due to a variety of factors.

Establishing and maintaining partnerships with Israeli or U.S. companies requires a level of technical sophistication. There are several Palestinian firms that are not quite at that level, but with support could be viable partners.

The Contractor must provide direct firm-level assistance to companies to build their internal capacity.

The Joint Investment for Peace Initiative part of MEPPA envisions DFC support to Palestinian and Israeli ventures. The Joint Investment for Peace Initiative aims to attract private investment that promotes Palestinian economic development, increases economic cooperation between Palestinians and Israelis, and between Palestinians and American, and contributes greater integration of the Palestinian economy into the international rules-based business system.

The Contractor must support the identification potential Palestinian companies and support them during their application process.

CAPABILITY STATEMENT REQUIREMENTS

A full and open contract is anticipated for this activity.

Potential Contractors are requested to provide capability statements that provide relevant examples of both governmental and non-governmental contracts under which the firm has performed. Firms are requested to demonstrate ability to serve as a prime and sub-awardees/sub-contractors.

The items below must be addressed in the response:

1.Up to a two-page statement describing the firm’s capability to execute the services and tasks described in this notice, with specific emphasis on managing activities remotely and operating in the Middle East and North Africa.

2. Up to a two-page statement describing the firm’s experience in relation to the services being required, with specific emphasis on managing activities remotely and operating in the Middle East and North Africa.

3. One-page table (Sample Table A below) of this notice with a list of between three and seven past or current projects demonstrating relevant work experience in the items listed under the Services and Tasks Required section above at the prime or subcontractor level.

4. For Small Business, include a statement identifying the applicable small business and socioeconomic designation in accordance with FAR 19.3.3, if applicable

TABLE A

Project Overview Country Year

(From – To)

Point of Contact Phone Email

Responses must not exceed five (5) pages, including Table A. Any organization responding to this Sources Sought Notice should ensure that its response is complete and sufficiently detailed to allow the government to determine the organization's qualifications to perform this work.

Written capability statements must be received by the time and date specified in the cover letter. These submissions must be sent via email ONLY to the following address: hdeldelian@usaid.gov. Fax and hand carried submissions will not be accepted. Phone inquiries will not be entertained.

END of SSN