Diaspora Invest J and A.pdf

MEMORANDUM

DATE: January 28, 2020

TO: Patrick Robison, Contracting Officer

FROM: Boba Vukmanovic, USAID Program Management Specialist

THROUGH: Andrew Boegel, EDO Director

SUBJECT: Justification and approval for the other than full and open competition under AIDAR 706.302-70(b)(5) for the Diaspora Invest Activity in Bosnia-Herzegovina (BiH), Contract # AID-168-C-17-00001

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)(5).

The request meets the exception at (b)(5). “(5) An award for the continued provision of highly specialized services when award to another resource would result in substantial additional costs to the Government or would result in unacceptable delays.” This document is prepared by USAID/Bosnia-Herzegovina.

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

This is a request to approve a modification to expand the scope of contract no. AID-168-C-17- 00001 Diaspora Invest activity, implemented by Financial Markets International, Inc, (FMI), a U.S. small business. The goal of the Diaspora Invest activity is to create new job opportunities for the citizens of BiH through increased diaspora investment. This goal is achieved by the following three components: 1) Leveraging diaspora input, into the development of an institutional policy framework for diaspora investment; 2) Expanding diaspora direct investment by providing technical assistance and grants to eligible, early-stage SMEs and start-ups; 3) Developing a sustainable, local platform to provide business services and facilitation to potential diaspora investors. This contract has an effective date of April 3, 2017 and will expire on April 2, 2022. The contract end date will not be extended by this modification.

The proposed modification is for technical assistance on policy to governments to design and launch financial and non-financial incentive systems for diaspora investors to build upon the successes of The Strategies for Cooperation with Diaspora. This modification will increase the total estimated cost (TEC) by $184,900 from $6,191,337 to $6,376,237.

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

The services expected to be provided by the contractor will support implementation of Diaspora Investment strategies (Component 1).

The activities under this area will build on the work already completed (The Strategies for Cooperation with Diaspora) under the policy Component 1 to provide further technical assistance to the state-level ministries and agencies, entity institutions and local authorities in implementing the Diaspora Strategies. At the state level, the Activity will work with the Ministry of Human Rights and Refugees (MHRR) to deliberate and advise on diaspora and related economic development policies. At the entity level and Brcko District, the Activity will provide technical assistance to the FBiH Government and Brcko District in designing and implementing an incentive system for diaspora investors (both financial and non-financial) as indicated under Strategic objective 3 of the FBiH and Brcko District Strategies. Total estimated amount for the additional work for this is $184,900.

4. Statutory authority permitting other than full and open competition.

AIDAR 706.302-70(a)(2) permits other than full and open competition when such competition would impair or otherwise have an adverse effect on programs conducted for the purpose of foreign aid, relief, and rehabilitation.

AIDAR 706.302-70(b)(5) provides specific authority for “An award for the continued provision of highly specialized services when award to another resource would result in substantial additional costs to the Government or would result in unacceptable delays”.

5. Demonstration that the proposed contractor's unique qualifications or the nature of the acquisition that requires use of the authority cited.

The use of noncompetitive procedures is justified for this request as full and open competition resulting in a new award would result in substantial duplication of cost to the Government that is not expected to be recovered through competition and unacceptable delays in fulfilling the Agency’s requirements. A new award would be uneconomical and inefficient as it would duplicate costs and efforts that could be better utilized otherwise.

FMI competitively won USAID/BiH’s contract for the Diaspora Invest Activity. Accomplishing the contract goals requires significant collaboration and work within all levels of the BiH government. FMI has successfully laid the groundwork and built the necessary relationships with relevant host country government bodies. By selecting FMI to perform the additional activities under the existing Contract, the USAID BiH Mission would immediately benefit from FMI’s extensive knowledge and proven development methodology. The additional work can be included with minimal adjustments to the scope of the contract. The project has also established a strong reputation among diaspora organizations and government institutions through targeted technical assistance to the private sector that directly increases the early profitability of diaspora investments. Finally, the contractors CPARS scores lead to a strong expectation of successful performance throughout the remainder of the Contract, including additional activities.

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].

In accordance with FAR 5.201 and AIDAR 706.302-70(c) (1), a Notice of Intent was published on www.beta.sam.gov on November 17, 2020. USAID/BiH has received no responses to this notice.

Further, the contract with FMI for the Diaspora Invest Activity was competitively sourced prior to award in 2017 as required by FAR Part 5.2 (AIDAR 705.002).

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

The anticipated costs for the proposed additional services under the subject action plan are found to be reasonable. This is based on a comparison of the proposed detailed budget submitted by FMI, the original approved budget, historical costs of similar interventions, and the Government estimate that was prepared when the contract was originally solicited. The contracting officer has determined that awarding this TEC increase to FMI will be at a substantially reduced cost and duration in comparison to conducting a new full and open competition.

As the current contractor for the Diaspora Invest Activity, FMI has established mechanisms and fielded a team to conduct the work required. FMI has developed the networks, trust and confidence of BiH counterparts necessary to successfully perform the contract, including the expanded work. A new contractor would need to propose costs for fielding a new team and would also need significant time (and associated resources) to structure relationships with the counterparts who are vital to contract success.

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

As described in point 7 above, the Mission based its recommendation on a comparison between the proposed costs for the action plan by FMI, the historical costs related to the same types of services, and the Government cost estimate developed during the design process of the activity. Furthermore, a quick survey about market rates in the country for similar types of consultancy and technical assistance proved that the proposed cost by FMI is acceptable and of benefit to the Government.

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

Pursuant to Section F.8 (Pg. 30) of the Contract, in 2019 USAID commissioned a Mid-term evaluation of the activity, that was conducted as described in USAID’s Evaluation Policy (http://www.usaid.gov/evaluation/policy). Based on the recommendation of the performance evaluation, the contractor requested a modification for the activities described under Section 2. Above. USAID /BiH believes that procuring the services through another contract would impose unnecessary costs as described above and cause unacceptable lost time.

The Diaspora Invest Activity is quite innovative, and no other similar activities have been implemented in BiH prior to this activity. During the first four years of implementation, FMI demonstrated a strong understanding of the circumstances and contextual realities of working with BiH Diaspora and the different levels of the BiH Government.

The fact that USAID competitively awarded FMI in 2017 instilled confidence in the Mission that the organization can effectively carry out additional activities under the existing Contract.

The Strategies for Cooperation with Diaspora have been, for the first time in country history, adopted by the Federation of BiH and the Brcko District Governments. Most of the measures proposed by the Diaspora Invest team were included in the documents which is a great achievement. The strategies’ adoption at these two levels have provided a groundwork for USAID Diaspora Invest to scale up its assistance in implementing the strategies and action plan through this requested additional technical assistance for policy development.

The other reason to use a J&A is to be responsive to the governments of the Federation of BiH, Brcko District and State Level Ministry of Human Rights and Refugees who have asked for immediate technical assistance.

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

A Notice of Intent for the proposed non-competitive addition of these activities to FMI was posted on www.beta.sam.gov on November 17, 2020. USAID /BiH has received no response to this notice.

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:

If additional diaspora sector requirements arise beyond the scope and duration of the FMI award, as modified, USAID /BiH will acquire the services through full and open competition, or potentially set aside for small businesses.

12. Technical or requirement personnel certification:

In accordance with FAR 6.303-1(c), I hereby certify that the technical statements included above and which form a basis for the justification are complement and accurate.

__Dobrila Vukmanovic___________________ __Certified on 1/29/2021________

Technical Office Representative Date

13. Contracting Officer Certifications:

[As required see AIDAR 706.302-70(c)(2 & 4)]

I hereby certify that the justification is accurate and complete to the best of my knowledge and belief.

Contracting Officer Date

14. Approved/Disapproved

[As required: see FAR 6.304 and AIDAR 706.302(c) (3 &4) or Expedited Procurement Procedures]

Approved Disapproved

Approving Official Date Patrick E. Robison, Contracting Officer

1. Clearance

____Rebecca Hammel_________ 1/29/2021________________

[Rebecca Hammel, Resident Legal Officer] Date

2. Clearance

[Deborah Broderick, Agency Competition Advocate] Date

DEBORAH RYAN

BRODERICK (affiliate)

Digitally signed by DEBORAH RYAN BRODERICK (affiliate) Date: 2021.03.04 09:00:29 -05'00'