Class DandF and JandA Ukraine ESF.pdf

FOR OFFICIAL USE ONLY

ACTION MEMO FOR ADMINISTRATOR POWER

Date: July 26, 2022

From: Maura Barry, A-AtA/RFS

Subject: 1) Class Determination and Findings (D&F) per AIDAR 706.302-70(b)(3)(ii);

and 2) Justification and Approval (J&A) of Ceiling Increases for Activities to Prevent and Respond to Food Insecurity

Recommendation: That you approve the D&F at Tab 1 that compliance with full and open competition for the proposed modifications to increase current award ceilings and/or modify scopes of work for the programs included in this memorandum would impair U.S.

foreign assistance objectives and be inconsistent with the fulfillment of the Agency’s foreign assistance mandate. This D&F memorandum covers both those programs identified in Tab 3 that will receive Fiscal Year (FY) 2022 Economic Support Fund (ESF) resources to prevent and respond to food insecurity under the Additional Ukraine Supplemental Appropriations Act, 2022 (AUSAA) as well as those not listed but funded with FY 2022 ESF funding for food insecurity under the AUSAA.

Approve______________ Disapprove______________

BACKGROUND:

Russia’s unprovoked war in Ukraine is not only causing immense suffering for the

Ukrainian people, but is also resulting in global food, fuel, and fertilizer shortages and rising food prices around the world. The war is exacerbating already high levels of global food insecurity that have resulted from a combination of the COVID-19 pandemic, climate shocks, protracted conflict and humanitarian crises, and above-average global food prices. Up to 40 million additional people could be pushed into poverty and food insecurity in 2022 due to the secondary impacts of Russia’s war in Ukraine. The World Bank estimates that for every 1 percent increase in food prices, nearly 10 million more people could be living in extreme poverty.

USAID is driving global efforts to mitigate this crisis and alleviate the immediate challenges of hunger and food insecurity, as well as the medium- and long-term impacts on nutrition and food insecurity around the world. In May 2022 President Biden signed the AUSAA, which provides $760 million of FY 2022 ESF funding to prevent and respond to food insecurity directly in the countries of highest concern, based on pre-existing vulnerability and exposure to price shocks and supply disruptions.

The urgency and severity of the food-security crisis require that USAID Operating Units (OUs) award the FY 2022 AUSAA funding more rapidly than unrestricted competition can

8/23/22 accommodate. In addition, per Office of Management and Budget (OMB) guidance on the AUSAA, OUs are expected to obligate / sub-obligate this funding by the end of FY 2022 (September 30, 2022).

As increasing the total estimated cost, modifying the scope of work, and extending the period of performance of existing awards may be necessary for OUs to meet this deadline and quickly reach those in the greatest need, RFS is requesting a D&F and a class J&A for Other Than Full and Open Competition for OUs receiving FY 2022 AUSAA resources to be able to modify awards and obligate funding as expeditiously as possible. The D&F will support the class J&A in Tab 2 and may also be applied to additional actions not identified in Tab 3. The D&F may be applied to actions using FY 2022 ESF funds made available under the AUSAA to prevent and respond to food insecurity as long as:

● Contract actions not listed in Tab 3 are supported by a J&A certified by the technical officer, cleared by the cognizant GC/ Resident Legal Officer (RLO), and approved by the contracting officer;

● The J&A supporting the action is executed no later than September 30, 2022;

● The non-competitive action is consistent with the approved Congressional Notification of these funds; and

● Any contract action made using this D&F does not extend the period of performance beyond two years from September 30, 2022, unless Agency Competition Advocate clearance is received.

By approving the D&F and the class J&A, you will enable OUs to expedite those contract actions identified in Tab 3 without further non-competitive justification. For those actions that were not identified in time for inclusion in the class J&A, your approval of the D&F will provide a significantly streamlined process for OUs to execute non-competitive actions for this purpose.

AUTHORITIES:

Pursuant to the authority in AIDAR 706.302-70(a)(2), “Full and open competition need not be obtained when it would impair or otherwise have an adverse effect on programs conducted for the purposes of foreign aid, relief, and rehabilitation.” The authority in AIDAR 706.302-70(b)(3)(ii) may be used for awards for countries, regions, projects, or programs for which the Administrator of USAID makes a formal written D&F that compliance with full and open competition procedures would impair foreign assistance objectives and would be inconsistent with the fulfillment of the foreign assistance program.

RESOURCE IMPLICATIONS:

Approval of this class J&A will result in approximately 45 work hours of savings per use.

Attachments:

Tab 1—Determination and Findings Tab 2—Justification and Approval for Other Than Full and Open Competition Tab 3—List of Contracts

CLEARANCE PAGE

Drafter: M/OAA: Boryana Boncheva: (202) 916-2600; RFS/PO: Mike Reilly: (202) 344-5905 Approved: RFS/Acting Assistant to the Administrator: Maura Barry, (7/25/2022)

Bureau Level Clearances Clearance Status Date RFS/DAA: MMichener clear 7/22/2022

RFS/A-DAA: LMcElroy clear 7/22/2022

RFS/A-DAA: JGoldberg clear 7/22/2022

RFS/FO: SBiswas INFO 7/22/2022

RFS/FTFCT: JMarch

RFS/OCS: SRey

Clear clear

7/22/2022

7/21/2022

RFS/PO: GRowland clear 7/22/2022

GC: JJin clear 7/29/2022

M/OAA/E: J.Norling clear 7/21/2022

ACA: D. Broderick clear 7/21/2022

M/OAA/OD: M. Walther clear 7/21/2022

AA/M: CAllen clear 7/25/2022

ES: MParse clear 7/29/2022

ES: EBakely clear 7/29/2022

ES: ECarr clear 8/3/2022

AFR/AA:DPutman INFO

ASIA/AA: AYastishock INFO

E&E/AA: EMcKee INFO

LAC/AA:MEscobari INFO

ME/AA:APlitt INFO

DCOS: NBurroughs Clear 8/16/22

DA-MR: PAdams-Allen Clear 8/17/22

U.S. AGENCY FOR INTERNATIONAL DEVELOPMENT

DETERMINATION AND FINDINGS (D&F)

FOR ACTIVITIES TO PREVENT AND RESPOND TO FOOD INSECURITY

1. Nature and description of the action being approved:

This is a request to approve non-competitive changes to the scopes of work and/or increases of the total estimated cost and/or the period of performance for the contracts listed in Tab 3, as well as for those contracts not listed but funded with additional amounts made available to prevent and respond to food insecurity under the Additional Ukraine Supplemental Appropriations Act (AUSAA), 2022, Economic Support Fund (ESF), when justified as described in this determination.

2. Citation of the legal authority upon which this D&F is based:

Pursuant to AIDAR 706.302-70(b)(3)(ii), full and open competition need not be obtained for awards for countries, regions, projects, or programs for which the Administrator of USAID makes a formal written D&F that compliance with full and open competition procedures would impair foreign assistance objectives and would be inconsistent with the fulfillment of the foreign assistance program.

3. Findings:

Russia’s unprovoked war in Ukraine is not only causing immense suffering for the Ukrainian people, but is also resulting in global food, fuel, and fertilizer shortages around the world. The war is exacerbating already high levels of global food insecurity that have resulted from a combination of the COVID-19 pandemic, climate shocks, protracted conflict and humanitarian crises, and above-average global food prices. Up to 40 million additional people could be pushed into poverty and food insecurity in 2022 due to the secondary impacts of Russia’s war in Ukraine, and the World Bank estimates that for every additional 1 percent increase in food prices, nearly 10 million more people could be living in extreme poverty.

USAID is driving global efforts to mitigate this crisis and alleviate the immediate challenges of hunger and food insecurity, as well as the medium- and long-term impacts on food insecurity around the world. In May 2022 President Biden signed the AUSAA, which provides $760 million of FY 2022 ESF to prevent and respond to food insecurity directly in the countries of highest concern, based on pre-existing vulnerability and exposure to price shocks and supply disruptions: $655 million of this FY 2022 funding is to be programmed by USAID through 49 Operating Units (OUs).

The urgency and severity of the food-security crisis intensified by Russia’s invasion of Ukraine and the resulting challenges of hunger and food insecurity require that the OUs award this FY 2022 ESF funding more rapidly than unrestricted competition can accommodate. In addition, per OMB guidance on the AUSAA, OUs are expected to obligate or sub-obligate this funding by the end of FY 2022. In numerous cases, increasing the total estimated cost of existing awards is necessary for OUs to meet this deadline and quickly reach those in the greatest need.

The specific details for each one of the affected awards (contract number, contractor name, period of performance, total estimated cost increase, etc.) are listed in Tab 3. Additionally, awards to mitigate this crisis and alleviate the immediate challenges of hunger and food insecurity that are not listed in Tab 3, may use this D&F for actions using FY 2022 AUSAA funds appropriated to prevent and respond to food insecurity as long as:

● Contract actions not listed on Tab 3 are supported by a J&A certified by the technical officer, cleared by the cognizant RLO/GC, and approved by the contracting officer;

● The J&A supporting the action is executed no later than September 30, 2022;

● The non-competitive action is consistent with the approved Congressional Notification of these funds; and

● Any contract action made using this D&F does not extend the period of performance beyond two years from September 30, 2022, unless Agency Competition Advocate clearance is received.

Use of this D&F will allow OUs receiving FY 2022 AUSAA resources to modify contracts and obligate funding as expeditiously as possible.

4. Determination:

To prevent and respond to food insecurity as mandated by FY 2022 ESF under the AUSAA, USAID OUs must resume and sometimes expand implementation of prior activities as quickly as possible. Approval of this request would enable immediate response, reaching a larger number of beneficiaries, and a larger geographic footprint for our interventions. The ceiling increases and changes to scopes and periods of performance may be awarded without full and open competition based on the determination and findings that compliance with full and open competition procedures would create a gap in critical services and impair USAID's support to USG foreign assistance objectives.

5. Expiration date of the D&F, if required.

This D&F is effective immediately upon my authorization and will remain valid until September 30, 2022.

DETERMINATION AND FINDINGS BY THE USAID ADMINISTRATOR

As the authorized official, based on the findings described above, I have determined that the proposed action is justified in accordance with AIDAR 706.302-70(b)(3)(ii).

Samantha Power Date USAID Administrator

CONFIRMATION OF CONSULTATION WITH THE AGENCY COMPETITION ADVOCATE

AIDAR 706.302-70(c)(4) requires prior consultation with the Agency Competition Advocate before executing the written determination and finding. The undersigned Agency Competition Advocate certifies that consultation took place before executing the written determination and finding. The Agency Competition Advocate comments have been adequately addressed in this document

______________________/S/______________ _7/20/2022___________________ Deborah Broderick Date Agency Competition Advocate

Tab 2

CLASS JUSTIFICATION AND APPROVAL FOR OTHER THAN

FULL AND OPEN COMPETITION (J&A)

TO: Administrator Power

FROM: Maura Barry, A-AtA/RFS

SUBJECT: Justification and Approval for Other Than Full and Open Competition

1. This document sets forth the facts and rationale justifying the use of other than full and open competition, in accordance with AIDAR 706.302-70(b)(3)(ii) Impairment of foreign aid programs for awards for countries, regions, projects, or programs for which the Administrator of USAID makes a formal written Determination and Findings (D&F) that compliance with full and open competition procedures would impair foreign assistance objectives and would be inconsistent with the fulfillment of the foreign assistance program.

2. The nature and/or description of the action being approved:

This is a request to approve revisions to scopes of work, ceiling increases, and/or extensions of the period of performance of the contracts listed in Tab 3. Under this action, the Agency will provide critical assistance to counter the global food-security impacts of Russia’s invasion of Ukraine.

3. Description of the supplies or services required, including an estimated value:

USAID is programming FY 2022 Economic Support Fund (ESF) resources under the Additional Ukraine Supplemental Appropriations Act, 2022 (AUSAA) (P.L. 117-128) to prevent and respond to food insecurity resulting from Russia’s invasion of Ukraine. Funding is programmed directly in the countries of highest concern based on vulnerability and exposure to price shocks and supply disruptions resulting from Russia’s invasion of Ukraine. The specific amounts and/or extensions of the period of performance for the awards covered by this J&A are detailed in Tab 3.

4. Legal authority permitting other than full and open competition:

This request is in accordance with AIDAR 706.302-70(b)(3)(ii) Impairment of foreign aid programs for awards for countries, regions, projects, or programs for which the Administrator of USAID makes a formal written D&F that compliance with full and open competition procedures would impair foreign assistance objectives and would be inconsistent with the fulfillment of the foreign assistance program.

5. A demonstration that the proposed contractor’s unique qualifications or the nature of the acquisition that requires use of the authority cited:

Up to $760 million of FY 2022 ESF funding provided under the AUSAA is meant to address urgent global food-security needs arising from Russia’s invasion of Ukraine. USAID OUs have existing awards in place that can be immediately leveraged to use this funding, so that interventions reach beneficiaries and produce results as quickly as possible. These awards are implemented through contractors who have established operations on the ground and ongoing relationships with local communities and authorities. Given the urgency of country-level needs and the speed with which FY 2022 ESF funds under the AUSAA need to be deployed, it is in the Agency’s interest in most situations to use existing awards to the maximum extent possible, rather than having to compete, evaluate, and award new contracts. These existing contractors have already established relationships with host-country counterparts and intended beneficiaries that would be unlikely to be quickly replicated by a new contractor. Some examples include the following:

● MALAWI: USAID/Malawi’s flagship agricultural activity, the Feed the Future Agricultural Diversification Activity, implemented by Palladium, has four local partners that work extensively on farmer financing. These include WORLEC, One Acre Fund, Pyxus, and CoFi. Each of these local partners have a proven track record of scaling up their activities and have done so in a positive fashion over the past six years under the Contractor's guidance. Together these four local organizations have provided farmer financing to over 27,000 farmers each year. Therefore the contractor is well-positioned to quickly respond to the food crisis. With supplemental funding, the contractor will promote the use of additional drought resistant, nutrient-rich, and high-yield seeds to increase food production and mitigate seed and food price shocks caused by the conflict.

To promote increased nutrition through diversified diets, the Activity will make available improved seeds to include, but not limited to maize, soy, and peanuts. The contractor is already active on the ground and has established trust and productive relationships, over the years, with key stakeholders in government and private sector, which would facilitate quick response.

● SOUTH SUDAN: USAID’s primary agriculture activity in South Sudan, the Resilience through Agriculture in South Sudan (RASS) Activity, implemented by DAI, aims to increase food production in 13 counties by providing smallholder farmers with high-quality seeds and training on topics such as improved seeds, fertilizer use, climate-smart agricultural practices, and small-scale irrigation. Thus, the contractor is well-positioned to quickly respond to the food crisis. With supplemental funding, the contractor will promote the use of drought-resistant, nutrient-rich, and high-yield seeds to increase food production and mitigate seed and food price shocks caused by the conflict.

To promote increased nutrition through diversified diets, RASS will extend a variety of seeds including sorghum, maize, cowpea, bean, and vegetables. The contractor is already active on the ground and has established local connections, which would facilitate quick response. They have already identified 1,785 members and formed 70 producer groups in Akobo, Wau, Jur River and Kapoeta North as participants in the activity.

● NEPAL: Knowledge-Based Integrated Sustainable Agriculture in Nepal (KISAN II , implemented by Winrock International, aims to increase the resilience, inclusiveness, and sustainability of income growth through agricultural development. KISAN II strengthens Nepal’s agricultural market system by facilitating market actors to adopt new business strategies that improve the efficiency and productivity of smallholder farmers in existing programs. With additional funds, the activity will mitigate shocks stemming from global and domestic fuel price increases on agricultural supply chains by increasing the efficiency of transportation, logistics, warehousing, and storage. It will build the resilience of the agricultural market system by expanding the use of appropriate post-harvest technologies like hermetic dryers and cool bots to reduce food loss and waste. KISAN II will also increase fertilizer use efficiency through promotion of nano urea and drone technology, and by intensifying access to irrigation through technology transfer and improved water resource management practices. The current activity is ongoing and well positioned to quickly respond to the emergent needs faced in Nepal due to the war in Ukraine.

● EGYPT: Abt Associates is the implementing partner for the Egypt Rural Agribusiness Strengthening (ERAS) activity. The goal of the ERAS activity is to improve the agribusiness sector’s ability to respond to domestic and international buyer demand and strengthen the industry’s competitiveness by applying a market-driven, systems-strengthening approach. ERAS is enhancing the capacity of smallholder farmers, processors, producer organizations, and other stakeholders in selected value chains, thus raising employment and incomes for vulnerable Egyptians and enhancing food security throughout the country. With the supplementary funds, ERAS will decrease chronic waste and spoilage by upgrading local agriculture collection centers, building modern silos, improving post-harvest handling among farmers and grain handlers, and providing modern technical assistance to help wheat farmers. It will work with Egyptian institutions to increase the number of tons of wheat and flour distributed to the most vulnerable Egyptians. Complementary efforts on production will incorporate sustainable climate-resilient practices in collaboration with local associations and cooperatives reaching 50,000 beneficiaries supporting more efficient use of water, fertilizers and chemicals. ERAS is uniquely positioned to quickly respond to this crisis due to established trusted relationships and signed MoUs the activity has with key stakeholders, including the Government of Egypt, Egyptian Agriculture Bank, private and public institutions associations, cooperatives, and groups of farmers throughout Egypt where trusting relationships have been built by regular technical assistance provided during the last four years. At a minimum, a two-year extension is needed for the medium and long-range agricultural assistance interventions that will increase sustainability while reducing the need for future short-term assistance. In particular, we estimate that the silos will require at least two years to obtain approvals, get materials, complete construction, and have adequate time to ensure that they are running efficiently.

These few examples highlight the kinds of effective activities that can be quickly brought to scale by expanding and or redirecting our existing activities. The full list of awards are provided in Tab 3.

6. Description of the efforts made to ensure that offers are solicited from as many potential sources as practicable, including whether a notice was publicized as required by Federal Acquisition Regulation (FAR) 5.2 [AIDAR 705.2].

According to AIDAR 706.302-70(c)(3) and AIDAR 705.202(b)(1) when the authorities at 706.302-70(b)(3) are used, advance notice of proposed contract action is not required.

7. A determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable:

The estimated cost of the new activities is based on existing contract pricing, which was determined to be fair and reasonable.

8. Description of the market research conducted, and the results or a statement of the reasons market research was not conducted:

Market research was not conducted. Given the urgency of this requirement to respond to the mandate of the AUSAA (to prevent and respond to food insecurity) it is not feasible to select new contractors who are familiar with the breadth and scope of the work to be undertaken.

Additionally, the urgency of the intervention would not allow for sufficient time to bring in new partners through a competitive award process.

9. Other facts supporting the use of other than full and open competition:

Russia’s invasion of Ukraine is resulting in global food, fuel, and fertilizer shortages. The AUSAA specifically authorized emergency supplemental FY 2022 ESF funding to prevent and respond to food insecurity. Full and open competition will delay delivery of this critical assistance and given the emergency nature of this funding, it was clearly the intent of Congress that this assistance be obligated and disbursed as quickly as possible.

10. Sources, if any, that expressed an interest, in writing, in the acquisition:

N/A

11. The actions the Agency may take to remove or overcome any barriers to competition before any subsequent acquisition for the supplies or services required:

The Agency intends to compete future requirements through full and open competition.

12. Technical certification:

In accordance with FAR 6.303, I hereby certify that the technical statements included above and that form a basis for the justification are complete and accurate.

____________/s/_________________________ _______7/27/2022_____________ Maura Barry, A-AtA/RFS Date

13. Approved:

Samantha Power Date USAID Administrator

Tab 3

LIST OF CONTRACTS

USAID

Operating Unit

Contract Number Contractor Amount of the Increase

Period of Performance Extension, if applicable.

End date revised From To

Kenya 7200AA21C00056 Development Alternatives Inc. ( DAI) $12,000,000

Madagascar 72068718C00002 Tetra Tech $4,000,000 5/6/2023 12/31/2023

Malawi AID-612-H-16-00001 Palladium $7,000,000 9/27/2023 3/26/2024

Nigeria 72062020C00001 Winrock International $4,500,000

Nigeria 72062019C00003 Creative Associates Scope change only

Rwanda 720-696-19-C-00001 LAND O'LAKES VENTURE37 $1,800,000

Rwanda 720-696-21-F-00001 RTI INTERNATIONAL $1,600,000

Senegal 72068520C00001 Connexus Corporation $6,000,000 3/10/2023 3/09/2025

Senegal 72068522C00009 RTI INTERNATIONAL $4,500,000

South Sudan 72066821C00007 Development Alternatives Inc. (DAI) $3,000,000

Central Asia 72011521C00002 Development Alternatives Inc. (DAI) $20,000,000

Nepal AID-367-C-17-00001 Winrock International $4,800,000

Haiti 72052121C00002 DAI Global, LLC $2,750,000

Haiti AID-OAA-C-17-00090 DAI Global, LLC $1,000,000

Honduras 72052222C00001 ACDI/VOCA $10,000,000

Egypt 72026318C00004 Abt Associates Inc. $35,000,000 07/31/2023 07/31/2026

Tanzania GS00Q14OADU138/ 72062121N00001

TetraTech $2,000,000

Colombia 72051419F00015 Tetra Tech $2,500,000

RFS Bureau 7200AA20C00054 DAI Global, LLC $15,000,000 6/29/2025 6/29/2026

RFS Bureau 7200AA19C00045 International Development Group $3,250,000

ME Bureau - MEG/Syria

GS00F303CA-AIDOA

AM1700007

The Pragma Corporation $1,500,000 03/30/2023 09/30/2024

Niger 7200AA21C00056 DAI Global, LLC $2,000,000

Sahel Regional Office 7200AA21C00056 DAI Global, LLC $5,500,000

Southern Africa 7200AA21C00056 DAI Global, LLC $11,000,000

Tanzania 7200AA21C00056 DAI Global, LLC $5,500,000

Uganda 7200AA21C00056 DAI Global, LLC $6,000,000

Zambia 7200AA21C00056 DAI Global, LLC $5,000,000

DRC 7200AA21C00056 DAI Global, LLC $7,000,000

Rwanda 7200AA21C00056 DAI Global, LLC $2,100,000