DRAFT_USAID_Kosovo_Export_Led Growth_for_Biz_Forecast.pdf

THIS IS A DRAFT DOCUMENT – SUBJECT TO CHANGE. THIS DOES NOT COMMIT THE

GOVERNEMENT TO ISSUE ANY SOLICITATION OR PAY COSTS IN ANTICIPATION OF A

SOLICITATION

Request for Proposals (RFP) No.: 72016720R00005

Issue Date: XXX

Questions Due Date: XXX

Proposals Submission Due Date: March 23, 2020 at 9am, Kosovo local time

SUBJECT: Request for Proposal (RFP) #SOL-72016720R00005 for Export-led Growth in

Kosovo (ELG) activity in Kosovo

Dear Prospective Offeror:

The United States Government, represented by the U.S Agency for International Development (USAID), through the Regional Contracting Office in Kosovo, is seeking proposals from qualified organizations to implement the Export-led Growth (ELG) activity in Kosovo, as described in this solicitation.

Small and large businesses are eligible to compete. USAID encourages the participation to the maximum extent possible of local Kosovar organizations, small business concerns, veteran owned small business, service-disabled veteran small business, HUB zone small business, small disadvantaged business, and women-owned small business concerns and small business concerns in this activity as the prime contractor or as subcontractors. USAID discourages the use of exclusive agreements as this limits USAID’s and

Kosovo’s ability to receive the best services.

This procurement will be conducted under full and open competition, pursuant to Part 15 of the Federal

Acquisition Regulation (FAR) (48 CFR Chapter 1), applying a “Highest Technically Rated with a Fair and Reasonable Price” source selection approach. USAID/Kosovo anticipates awarding one Cost-Plus-

Fixed-Fee (CPFF)-Completion / Cost-Plus Award Fee (CPAF) contract as a result of this solicitation covering an estimated period of five (5) years from the date of contract award. Subject to availability of funds, USAID/Kosovo estimates an award for the activity up to a ceiling price of $12,500,000, as

USAID is employing a build-to-budget approach.

USAID reserves the right to amend or rescind this solicitation at any time. If substantive questions are received which affect the response to the solicitation, or if changes are made to the closing date and time, as well as other aspects of the RFP, this solicitation will be amended and amendments to this solicitation will be issued and posted on the www.beta.sam.gov. In order to be informed of changes that may affect proposal preparations, Offerors are encouraged to check http://www.beta.sam.gov periodically. It is the responsibility of the prospective Offerors of this solicitation to ensure that the solicitation has been received from the internet in its entirety. USAID bears no responsibility for data errors resulting from transmission or conversion processes.

http://www.beta.sam.gov/

SOL-72016720R00005

Export-led Growth (ELG) activity in Kosovo

Questions and proposals must be submitted only electronically via e-mail on or before the due dates and times stipulated above to Urime Abdyli at: uabdyli@usaid.gov and Elyssa Jeter at: ejeter@usaid.gov and must conform to all requirements outlined in the solicitation. This solicitation in no way obligates USAID to award a contract nor does it commit USAID to pay any cost incurred in the preparation and submission of the proposal.

USAID appreciates the time and effort put into preparing proposals in response to this solicitation.

Good luck!

Carter Saunders

Regional Contracting Officer mailto:uabdyli@usaid.gov mailto:ejeter@usaid.gov

Contents

PART I – SCHEDULE

SECTION B – SUPPLIES OR SERVICES AND PRICE/COSTS

B.1 PURPOSE STATEMENT

B.2 CONTRACT TYPE

B.3 ESTIMATED COST, FIXED FEE, AWARD-FEE, AND OBLIGATED AMOUNT

B.4 LINE ITEMS

B.5 INDIRECT COST

B.6 ADVANCE UNDERSTANDINGS ON CEILING INDIRECT COST RATES AND FINAL

REIMBURSEMENT FOR INDIRECT COSTS

B.7 COST REIMBURSABLE

B.8 PAYMENT OF FIXED FEE

B.9 PAYMENT OF AWARD FEE

B.10 MULTI-YEAR CONTRACT AND CANCELLATION CEILING

SECTION C – STATEMENT OF WORK

C.1 TITLE

C.2 PURPOSE

C.3 MARKET SYSTEMS APPROACH

C.4 BACKGROUND

C.5 THEORY OF CHANGE

C.6 OBJECTIVE AND RESULTS

C.7 ACTIVITY PROGRESSION/CYCLE

C.8 IMPLEMENTATION PRINCIPLES

C.9 COORDINATION WITH OTHER USAID PROJECTS, DONORS, AND THE GOK

SECTION D – PACKAGING AND MARKING

D.1 AIDAR 752.7009 MARKING (JAN 1993)

D.2 BRANDING

D.3 BRANDING AND MARKING POLICY

SECTION E – INSPECTION AND ACCEPTANCE

E.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE

E.2 INSPECTION AND ACCEPTANCE

SECTION F – DELIVERIES AND PERFORMANCE

F.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE

F.2 PLACE OF PERFORMANCE

F.3 PERIOD OF PERFORMANCE

F.4 PERFORMANCE STANDARDS

F.5 KEY PERSONNEL

F.6 REPORTS AND DELIVERABLES OR OUTPUTS

F.7 DISTRIBUTION OF PROJECT MATERIALS, PARTICIPATION PARTNER MEETINGS,

AND PUBLIC EVENTS

F.8 AIDAR 752.7005 SUBMISSION REQUIREMENTS FOR DEVELOPMENT EXPERIENCE

DOCUMENTS (SEPT 2013)

SECTION G – CONTRACT ADMINISTRATION DATA

G.1 ADMINISTRATIVE CONTRACTING OFFICE

G.2 CONTRACTING OFFICER'S AUTHORITY

G.3 CONTRACTING OFFICER'S REPRESENTATIVE (COR)

G.4 TECHNICAL DIRECTIONS/RELATIONSHIP WITH USAID

G.5 PAYMENT AND INVOICES

G.6 ACCOUNTING AND APPROPRIATED DATA

SECTION H – SPECIAL CONTRACT REQUIREMENTS

H.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE

H.2 FOREIGN GOVERNMENT DELEGATIONS TO INTERNATIONAL CONFERENCES

H.3 AIDAR 752.225-70 SOURCE AND NATIONALITY REQUIREMENTS (FEB 2012)

H.4 INSURANCE AND SERVICES

H.5 AUTHORIZED GEOGRAPHIC CODE

H.6 LOGISTIC SUPPORT

H.7 EXECUTIVE ORDER ON TERRORISM FINANCING

H.8 PROHIBITION AND ASSISTANCE TO DRUG TRAFFICKING

H.9 AIDAR 752.7007 PERSONNEL COMPENSATION (JUL 2007)

H.10 ADDITIONAL REQUIREMENTS FOR PERSONNEL COMPENSATION

H.11 LANGUAGE REQUIREMENTS

H.12 CONFIDENTIALITY AND OWNERSHIP OF INTELLECTUAL PROPERTY

H.13 CONSENT TO SUBCONTRACTS

H.14 INTERNATIONAL TRAVEL APPROVAL

H.15 GOVERNMENT FURNISHED FACILITIES OR PROPERTY

H.16 ENVIRONMENTAL COMPLIANCE AND REQUIREMENTS

H.17 CROSS-CUTTING THEMES

H.18 USAID IMPLEMENTATION OF SECTION 508 OF THE REHABILITATION ACT OF 1973

AND FEDERAL ACQUISITION CIRCULAR (FAC) 97-27 "ELECTRONIC AND INFORMATION

TECHNOLOGY ACCESSIBILITY

H.19 AIDAR 752.222-70 USAID DISABILITY POLICY - ACQUISITION (DEC 2004)

H.20 ADS 302.3.5.17 LIMITATION ON SUBCONTRACTING TO NON-LOCAL ENTITIES

(JULY 2014)

H.21 ADS 302.3.5.19 USAID-FINANCED THIRD-PARTY WEB SITES (NOV 2017)

H.22 ADS 302.3.5.21 SUBMISSION OF DATASTS TO DEVELOMENT DATA LIBRARY (OCT

2014) 47

H.23 ELECTRONIC PAYMENTS SYSTEM

H.24 LIMITATION ON ACQUISITION OF INFORMATION TECHNOLOGY (DEVIATION

NOs. M/OAA-DEV-FAR-18-2c and M/OAA-DEV-AIDAR-18-2c) (APRIL 2018)

H.25 AIDAR 752.229-71 REPORTING OF FOREIGN TAXES (JULY 2007)

H.26 ACTIVITY ADAPTATIONS

H.27 GRANTS UNDER CONTRACT

PART II CONTRACT CLAUSES

SECTION I – CONTRACT CLAUSES

I.1 FAR 52.252-2 CLAUSES INCORPORATED BY REFERENCE (FEB 1998)

I.2 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE

1.4 FAR 52.204-1 APPROVAL OF CONTRACT (DEC 1989)

1.5 FAR 52.247-67 SUBMISSION OF TRANSPORTATION DOCUMENTS FOR AUDIT (FEB

2006) 57

1.6 AIDAR 752.245-70 GOVERNMENT PROPERTY – USAID REPORTING REQUIREMENTS

(OCT 2017)

PART III LIST OF DOCUMENTS, EXHIBITS, AND OTHER ATTACHMENTS

SECTION J – LIST OF ATTACHMENTS

PART IV REPRESENTATIONS AND INSTRUCTIONS

SECTION K - REPRESENTATIONS, CERTIFICATIONS AND OTHER STATEMENTS OF

OFFERORS

K.1 NOTICE LISTING SOLICITATION PROVISIONS INCORPORATED BY REFERENCE

K.2 FAR 52.204-3, TAXPAYER IDENTIFICATION (OCT 1998)

K.3 FAR 52.204-8 ANNUAL REPRESENTATIONS AND CERTIFICATIONS (JAN 2020)

K.4 FAR 52.204-24 REPRESENTATION REGARDING CERTAIN TELECOMMUNICATIONS

AND VIDEO SURVEILLANCE SERVICES OR EQUIPMENT (DEC 2019)

K.5 FAR 52.209-7 INFORMATION REGARDING RESPONSIBILITY MATTERS (OCT 2018) 67

K.6 FAR 52.209-13 VIOLATION OF ARMS CONTROL TREATIES OR AGREEMENTS –

CERTIFICATION (JUN 2018)

K.7 FAR 52.230-1 COST ACCOUNTING STANDARDS NOTICES AND CERTIFICATION

(OCT 2015)

K.8 FAR 52.230-7 PROPOSAL DISCLOSURE--COST ACCOUNTING PRACTICE CHANGES

(APR 2005)

SECTION L – INSTRUCTIONS TO OFFERORS

L.1 FAR 52.252-1 SOLICITATION PROVISIONS INCORPORATED BY REFERENCE (FEB

1998) 73

L.2 FAR 52.216-1 TYPE OF CONTRACT (APR 1984)

L.3 FAR 52.233-2 SERVICE OF PROTEST (SEP 2006)

L.4 GENERAL INSTRUCTIONS TO OFFERORS

L.5 GENERAL INSTRUCTIONS TO OFFERORS

L.6 INSTRUCTIONS FOR THE PREPARATION OF THE TECHNICAL PROPOSAL

L.7 INSTRUCTIONS FOR THE PREPARATION OF THE COST PROPOSAL

SECTION M – EVALUATION CRITERIA

SECTION M – EVALUATION FACTORS FOR AWARD

M.1 GENERAL INFORMATION

M.2 TECHNICAL EVALUATION CRITERIA

M.3 EVALUATION OF PAST PERFORMANCE

M.4 COST PROPOSAL EVALUATION

M.5 DETERMINATION OF COMPETITIVE RANGE

M.5(a) STANDARD DEVIATION

M.6 SOURCE SELECTION

PART I – SCHEDULE

SECTION B – SUPPLIES OR SERVICES AND PRICE/COSTS

B.1 PURPOSE STATEMENT

The purpose of the Export-led Growth Activity is to promote resilient, self-sustaining market systems, and to facilitate the private sector’s improved competitiveness in local, regional, and global markets.

B.2 CONTRACT TYPE

This is a Cost-Plus-Fixed-Fee (CPFF)-Completion / Cost-Plus Award Fee (CPAF) contract for an estimated duration of five (5) years. For the consideration set forth below, the Contractor shall provide the services and deliverables described in Sections C and F, and comply with all contract requirements.

B.3 ESTIMATED COST, FIXED FEE, AWARD-FEE, AND OBLIGATED AMOUNT

(a) The estimated cost for the performance of the work require hereunder, exclusive of fee, if any, is

$TBD. The fixed fee, if any, is $TBD. The maximum award fee, if any, is $TBD. The total estimated cost plus fixed fee and award fee, if any, is $TBD.

(b) The contractor will not be paid any sum in excess of the total estimated cost.

(c) Within the estimated cost plus fixed fee and award fee, specified in paragraph (a) above, the amount currently obligated and available for reimbursement of allowable costs incurred by the Contractor

(and payment of fee, if any) for performance hereunder is $[To be added upon award]. The Contractor must not exceed the aforesaid obligated amount unless authorized by the Contracting Officer pursuant to the clause of this contract entitled "Limitation of Funds" (FAR 52.232-22).

(d) Funds obligated hereunder are anticipated to be sufficient through [TBD].

B.4 LINE ITEMS

Line Item Total

Direct Cost $[.]

Indirect Cost $[.]

Fixed Fee $[.]

Award Fee (see B.9) $[.]

Ceiling Price $[.]

These amounts may not be adjusted without a written modification signed by the Contracting Officer. The contractor will not bill any amounts against this contract in excess of the amounts specified for each line item as illustrated above.

B.5 INDIRECT COST

Pending establishment of revised provisional or final indirect cost rates, allowable indirect costs shall be reimbursed on the basis of the following negotiated provisional or predetermined rates and the appropriate bases:

Description Rate Base Type Period

% 1/ 1/ 1/

% 2/ 2/ 2/

% 3/ 3/ 3/

1/Base of Application:

Type of Rate:

Period:

2/Base of Application:

3/Base of Application:

B.6 ADVANCE UNDERSTANDINGS ON CEILING INDIRECT COST RATES AND FINAL

REIMBURSEMENT FOR INDIRECT COSTS

(a) Reimbursement for indirect costs shall be at the lower of the negotiated final (or predetermined) rates or the following ceiling rates:

Description Rate Base Period

% 1/ 1/

% 2/ 2/

% 3/ 3/

1/ Base of Application:

2/ Base of Application:

3/ Base of Application

Period

(b) The Government will not be obligated to pay any additional amount should the final indirect cost rates exceed the negotiated ceiling rates. If the final indirect cost rates are less than the negotiated ceiling rates, the negotiated rates will be reduced to conform to the lower rates.

(c) This understanding shall not change any monetary ceiling, obligation, or specific cost allowance or disallowance. Any changes in classifying or allocating indirect costs require the prior written approval of the Contracting Officer.

B.7 COST REIMBURSABLE

The U.S. dollar costs allowable will be limited to reasonable, allocable, and necessary costs determined in accordance with FAR 52.216-7, “Allowable Cost and Payment,” and FAR 52.232-22, “Limitation of

Funds,”, and AIDAR 752.7003, “Documentation for Payment.”

B.8 PAYMENT OF FIXED FEE

a. USAID will pay a proportion of the contractor’s fixed fee pursuant to FAR 52.216-8, “Fixed Fee,” upon the receipt of an invoice deemed proper by the USAID Financial Management Office. The fixed fee will be paid based on the reasonable achievement of the activities’ performance standards to be verified by the COR and in accordance with the below fee schedule.

b. In the event the Contractor does not submit required deliverables in accordance with the terms and conditions of the contract, the Contracting Officer may adjust the fixed fee proportionately to the deliverables accepted.

c. The Contractor is not eligible for any payment of Fixed Fee until target results are established and incorporated into the award. [*The only exception is in the below note*]

[Insert Fee Schedule after completion of Section C.7.3, and *as proposed/accepted per Section

L.7(b)(1)(ii) and inserted here at award*]

B.9 PAYMENT OF AWARD FEE

The Contractor may earn and be paid all or a portion of an award fee for performance under this contract.

The Government's purpose in granting an award fee is to encourage and reward superior contract performance.

The maximum award fee shall be made available for payment to the Contractor in two (2) increments: after the second year of implementation and at the end of implementation, coinciding with the two (2) evaluation periods expected under the contract as specified below:

Period of

Performance

Period*

(Start/End date)

Amount of Award fee available

Years 1 - 2 /2020 - /2022 TBD

Years 3 - 5 /2022 - /2025 TBD

Maximum Award

Fee Available

TBD

* Period will be completed upon contract award.

The determination of the award fee, if any, earned by the Contractor shall be in accordance with the Award

Fee Evaluation Plan. Unearned award fee cannot rollover from the first award fee increment to the second award fee increment.

Payment of any award fee earned by the Contractor shall not be subject to the withholding provisions of the clause of this contract entitled "Allowable Cost and Payment" (FAR 52.216-7) clause.

B.10 MULTI-YEAR CONTRACT AND CANCELLATION CEILING

USAID/Kosovo considers this contract non-severable and is therefore a multi-year contract as defined in

FAR 17.103. Therefore, this contract is subject to the requirements of FAR 17.106. However, as a cost-reimbursement contract, USAID/Kosovo will authorize the reimbursement for all allowable costs incurred by the Contractor pursuant to FAR 52.216-7, “Allowable Costs and Payment.” The Contractor will not incur any costs that require amortization or substantial upfront investment over the contract’s period of performance in the event that the Contracting Officer cancels the contract pursuant to FAR 52.217-2. Thus, $0 will serve as the cancellation ceiling for each cancellation date. Accordingly, no requirement to include cancellation dates in the contract exists.

[END OF SECTION B]

SECTION C – STATEMENT OF WORK

STATEMENT OF WORK

Export-led Growth in Kosovo (ELG) (the “Activity”).

C.1 TITLE

USAID Export-led Growth (the “Activity”).

C.2 PURPOSE

The purpose of the USAID Export-led Growth activity is to promote resilient, self-sustaining market systems and to facilitate the private sector’s improved competitiveness in local, regional, and global markets.

C.3 MARKET SYSTEMS APPROACH

Market systems development is USAID’s evolved thinking around private sector development. Market systems are composed of vertically and horizontally linked firms and the relationships embedded in these linkages. These systems can be local, national, regional, or global. A market system includes end markets, input, and support service (technical, business, financial, etc.) markets; and the environments in which they operate, which may include sociocultural, geographic and political factors, infrastructure, and institutions.1

A strong market system is one that’s able to independently adapt over time, as needed, to sustain the benefits accrued by system actors as a whole. This approach is aligned with the Agency’s Private-Sector

Engagement Policy, a mandate to work hand-in-hand with the private sector and pursue market-based approaches and investment as a means to accelerate countries’ progress toward self-reliance.

To succeed in global markets and to respond effectively to market needs, producers must be able to identify opportunities matching their current potential, and upgrade2 to deliver a product more efficiently, with better quality, in higher quantities, and/or in a more unique form, and at a competitive cost. As Kosovo becomes increasingly integrated within the global economy, firms - even in the domestic market - need to upgrade and compete with firms all over the world. The ability to do so depends on the entire health of the market system in which the firms operate, from conception to production to sale in their final markets.

To promote competitiveness through market system development, constraints that hinder private sector competitiveness should be assessed to identify how they can be eliminated or mitigated. At the same time, “positive deviants3” within the system must be examined to assess how and why they overcame these constraints, and whether those positive deviance can be augmented or replicated. The market systems approach recognizes that in order for a firm or stakeholder to invest in growth, that firm should understand

1 https://www.marketlinks.org/sites/marketlinks.org/files/resource/files/Market_Systems_Framework.pdf

2 In the context of firms and sectors, upgrading is defined as change, improvement or innovation that increases competitiveness by delivering a product more efficiently, with better quality, higher quantities, and/or in a more unique form.

3 Positive deviance (PD) is an approach to behavioral and social change based on the observation that in any community there are people whose uncommon but successful behaviors or strategies enable them to find better solutions to a problem than their peers, despite facing similar challenges and having no extra resources or knowledge than their peers.

https://www.usaid.gov/sites/default/files/documents/1865/usaid_psepolicy_final.pdf https://www.usaid.gov/sites/default/files/documents/1865/usaid_psepolicy_final.pdf the opportunity, as well as the incentives to invest by foreseeing an adequate return (whether that be decreased risk, increased revenues, and/or otherwise). The impacts from this approach are intended to support the health of the entire supply chain system, not only at the firm level.

C.4 BACKGROUND

Please see Attachment 1, Development Landscape for USAID’s understanding of the development landscape underlying the selection of objectives and results under this Contract.

In line with Kosovo’s Journey to Self Reliance and the USAID Private Sector Engagement policy, USAID/Kosovo is seeking to shift its support for private sector competitiveness to an increasingly facilitative approach. Experience in Kosovo and elsewhere has shown that partnering with and empowering existing capable organizations and institutions is more likely to yield sustainable results than direct firm interventions4. Now that more potential partners exist in Kosovo or abroad, this approach will leverage and strengthen actors within the relevant market system. The USAID Export-led Growth activity will work to empower firms, organizations, and institutions to improve market systems. In an environment of donor saturation, this will require a careful, informed, and targeted approach. This facilitative approach is a key tenet of market systems development, and is intended to help move Kosovo toward the eventual goal of self-sustaining private sector development.

C.5 THEORY OF CHANGE

In order to have sustainable, transformative change, this Activity must address key elements of the market system in a holistic manner: 1) examination of relevant actors involved and influencing target sectors, and

2) some actors must be engaged to address points of leverage.

If this activity leverages and develops existing capacities and relationships within targeted systems in order

(1) to eliminate or mitigate constraints in the market system, and (2) to promote the incentives that facilitate growth, then private sector performance will be upgraded, leading to improved competitiveness in local, regional, and global markets. Addressing these root causes of constraints will stimulate enterprise growth, promote job creation, and increase capacities to foster great market penetration.

While the Contractor must focus on a limited number of sectors, activities that will be designed are expected to serve as a model for other sectors and for actors within selected sectors the Activity does not directly support. Kosovo’s private sector is relatively small, and in this close proximity, the impact of the demonstration effect could be exponential. Employing strategic communication and public outreach will help this activity inspire ripple effects, whether the replication of the USAID Export-led Growth activity and its partners’ successes, and/or the growth of investment both within and outside the selected sectors.

As is envisioned by the market systems development approach, this activity’s theory of change must be updated and refined following the Contractor’s initial market system analysis - in consultation with, and with the approval of USAID - and should be evaluated and adapted as needed throughout the course of implementation.

C.6 OBJECTIVE AND RESULTS

4 Direct firm interventions include those that affect, for example, only the assisted firm without the impact extending materially beyond that assisted firm.

The USAID Export-led Growth activity’s objective is to sustainably increase the competitiveness of selected export-oriented sectors of the economy.

Identifying and controlling for impediments and constraints across the market system will allow for more sustainable, scalable, and systemic change to stimulate enterprise growth, job creation, and increased capacities to engage in the market.

Expected results across selected sectors include:

1) Market systems strengthened to increase sector competitiveness

2) Market actors within those market systems are more productive and competitive

Achievements will be measured through indicators of both: 1) tangible economic benefits, and 2) market systems that are growing more competitive, resilient, and inclusive, as touched on by the following illustrative, but not limited to the following, indicators:

● USD sales of firms receiving USG-funded assistance

● Increased net value of exports attributable to USG-funded assistance

● Number of new employment opportunities generated as a result of USG assistance (disaggregated by target populations)

● Value of new private and public sector investment leveraged as a result of USG assistance

C.7 ACTIVITY PROGRESSION/CYCLE

The Activity must incorporate the following interrelated steps and parameters:

1. Sector Selection (completed at the time of contract award)

2. Market System and Constraints Analysis

3. Baseline Assessments, Target Results, and Action Plans

4. Activity Implementation

5. Monitoring, Evaluation, and Learning

6. Collaborating, Learning, and Adapting\\

Steps 2 and 3 will constitute an initial Inception Phase during which the required rigorous analysis will be carried out, and specific priority interventions can be considered and recommended based on those findings.

1. Sector Selection

The Contractor must focus its interventions under the USAID Export-led Growth activity in three sectors only. [Prior to award, the Contractor will elaborate and provide analyses/bases for the proposed sectors using relevant data and criteria elaborated per the Instructions Section of this RFP. The chosen sectors will be included here at time of award]. The Activity’s sectors are [XXX].

If USAID/Kosovo determines during implementation that additional sector(s) could be added to expand the sustainable impact of activities, this expansion may be taken beyond the original analysis findings/activities and may include providing additional financial resources. See H.26.

No expansion of activities beyond approved sector(s) and/or requiring additional resources (such as an increase in the Total Contract Price) shall be undertaken without prior written approval of the Contracting

Officer. Depending on the nature of the above noted refocusing efforts, USAID may require Steps 1 - 3 to be repeated by the Contractor.

Further, the Contractor shall seek to take timely advantage of windows of opportunity, about which the

Contractor may become aware during performance, for limited interventions that may result in positive, “quick win” impact but do not fit within the selected sectors. Interventions for “quick wins” shall be performed only with the prior consent of the USAID Contracting Officer. The Contractor shall promptly inform the USAID Contracting Officer’s Representative (COR) of such opportunities.

2. Market System and Constraints Analysis

A critical initial phase of the Activity will be to further analyze and understand system dynamics within the selected sectors, and where the Activity might best intervene via a facilitative approach to create systemic change. The exact scope and methodology of the analysis will be agreed upon by the Contractor and the

USAID COR, but must consider the following items in analyzing the market system and networks to assess:

● the current performance and potential capacity of the vertically and horizontally linked firms operating within a sector;

● the nature of relationships between these actors, including their levels of cooperation and competition;

● current and potential end markets (including assessing export market potential and barriers to exploiting that potential);

● the performance and potential capacity of available relevant support services (technical, business, and financial) and resources;

● the state of institutions, technology, and other production conditions;

● the political economy and context, including policy constraints limiting development; and/or

● the formal and informal rules which drive the behaviors of stakeholders within the applicable market system.

The analysis must include an evaluation of all material constraints specific to the sectors being examined, seeking to identify if, why, and how constraints impact competitiveness based on an assessment of the market system as a whole. The analysis must also account for the extent to which sector focus overlaps, the extent to which interventions can be concentrated within specific subsectors, and consider what specific risks during activity implementation would undermine overall activity progress.5

Based upon this analysis, the Contractor must recommend interventions and Action Plans (see below) with the greatest potential to achieve the USAID Export-led Growth activity’s objective through interventions taking a facilitative approach to strengthening the market system. USAID seeks to maximize the impact of interventions and thus the Contractor shall seek to focus proposed interventions on as limited number of sectors as possible that provide the greatest economic return on investment.

3. Baseline Assessments, Target Results, and Action Plans

Following completion of Step 2, collaborative work planning (with USAID and key stakeholder inputs) will seek to appropriately design, scale, and sequence these interventions to create maximum effect, while employing an iterative and adaptive approach throughout the term of the Activity. During this phase, the

Contractor must develop a methodology and conduct baseline assessments in the approved sectors. These baseline assessments, along with the market system analysis performed in Step 2, will inform both the target results the Contractor proposes and the Action Plan that identifies the interventions the Contractor will implement in Step 4 in order to achieve those target results.

5 https://www.marketlinks.org/sites/marketlinks.org/files/resource/files/Portfolio_Approach_to_PSD.pdf https://www.marketlinks.org/sites/marketlinks.org/files/resource/files/Portfolio_Approach_to_PSD.pdf

The baseline survey must collect quantitative data and present an analysis of the situation prior to the

Contractor’s interventions showing the changes in the baseline situation and the impact of the project in subsequent years. The Contractor must propose target results at minimum for the overall contract as well as by sector/year that the Contractor will achieve based on the Action Plan and directly address the expected results under Section C.6. The target results must be approved by the COR and incorporated into Section

F prior to starting any interventions in Step 4. The target results must be ambitious but achievable.

The Contractor must also develop an Action Plan for COR approval describing how it will achieve its target results through interventions by approved sector. Both the target results and the Action Plans must reflect a facilitative, market systems approach, along with the implementation principles outlined in Section C.

The Action Plans must expressly identify and detail interventions and activities in each selected sector. The

Action Plans function as the strategy for each sector and will be placed as integral annexes to the annual work plan (see Section F). Each Action Plan must contain a causal model6 (i.e. theory of change), proposed interventions, projected contribution to target results, and a sustainability strategy. Each Action Plan must be approved by the COR prior to the execution of interventions and activities.

The Acton Plans, similar to the annual work plans are living documents and updates to these plans can occur throughout the life of the contract. At a minimum, changes and updates must be captured and incorporated into the annual work plans and are due according to the annual work plan schedule.

4. Activity Implementation

Once USAID and the Contractor have negotiated and incorporated target results and USAID has approved

Action Plans, implementation of activities described in that Action Plan will begin.

The Contractor may be authorized to utilize a Grants Under Contract (GUC) mechanism as part of its interventions to upgrade the selected sectors. If the successful offeror’s award includes a GUC program or a GUC program is subsequently approved by USAID, a GUC manual shall be submitted and approved per

Section H.27.

All interventions performed must be approved by the COR under the previously described Action Plans and/or the Annual Work Plans. However, as described below, those documents shall be revised based on

ELG’s continuous learning process.

5. Monitoring, Evaluation, and Learning

The market systems development approach requires the practice of adaptive management to allow for continual adjustment to changing contexts. The contractor must emphasize investment in continuous monitoring, evaluation, and learning to assist local partners and USAID to capture where results are being achieved, and to understand how and why. To promote the Activity’s success in this, USAID anticipates the Contractor to employ a flexible approach in implementation, and to adapt based on context and experience while ensuring USAID’s objectives are achieved.

In addition to traditional performance-based monitoring and periodic evaluations, the Contractor is expected to examine non-linear change pathways, and understand the direct and indirect effects on actors.

The Contractor must continually assess the effectiveness of interventions, and evaluate whether and why those interventions are succeeding, or not.

6 DEVELOPING A CAUSAL MODEL FOR PRIVATE SECTOR DEVELOPMENT PROGRAMS IMPACT

ASSESSMENT PRIMER SERIES PUBLICATION # 4

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As part of the Monitoring, Evaluation, and Learning Plan (MELP) (see link https://usaidlearninglab.org/library/how-note-activity-monitoring%2C-evaluation%2C-and-learning-plan) submitted for COR approval (as described in Section F), the Contractor must include a methodology identifying its approach to integrate collaborating, learning, and adapting (as described in the section below) throughout contract implementation: how the Contractor captures how results are achieved - both toward quantitative targets and toward improvements in incentives, relationships, etc. - and how the Contractor integrates the results of ongoing analysis, as well as feedback from partners, stakeholders and beneficiaries.

The theory of change, Action Plans, Annual Work Plans, and the MELP must be reassessed regularly and updated as needed according to ongoing contextual analysis and implementation experience.

6. Collaborating, Learning, and Adapting (CLA)

The Contractor is expected to advance the USAID/Kosovo commitment to a multi-faceted CLA ( see link https://usaidlearninglab.org/cla-toolkit) approach to development. The CLA approach is based on the understanding that development efforts yield more effective results if they are coordinated and collaborative, test multiple promising, new approaches in a continuous yet also rapid manner, and build on what works and eliminate what does not. The Contractor is expected to actively foster an enabling environment for CLA throughout inception, implementation, and periodic iteration, including a culture of openness, incorporating CLA into decision-making processes, and allocating resources to CLA actions.

For this award, the Contractor is expected to incorporate CLA throughout the Activity’s monitoring, evaluation, learning, human resource management, on-the-ground implementation, and business processes and other practices, while identifying specific opportunities to tailor and enhance CLA practices that optimally advance results as defined in the Activity purpose and intended outcomes.

C.8 IMPLEMENTATION PRINCIPLES

● Focus on systemic change: The Contractor must focus on root causes by addressing the underlying incentives of constraints that are binding, but amenable to change, and within USAID’s manageable interest.

● Evidence-based programming: In developing its interventions to promote systemic change, the

Contractor must be informed by available historical evidence to identify approaches that have a demonstrated and cost-effective impact. The Contractor is also encouraged to question and examine “common knowledge” that is not supported by evidence.

● Freedom to fail: In a complex market system like Kosovo’s, the results of interactions among the elements of that system can be unpredictable and difficult to replicate. As such, the Contractor should experiment with innovative approaches and pathways to achieve the Activity’s objective, paying attention to possible patterns in retrospect. Where appropriate, the Contractor should first test those approaches as pilots before scaling up.

● Portfolio approach:7 As noted, the Contractor should take an implementation approach that balances innovation and experimentation with evidence-based interventions.

● Facilitating change through the local system: As experience has demonstrated in Kosovo8 and elsewhere, while there is ample evidence that direct firm-level support is effective in changing the targeted firms, that approach has not demonstrated widespread success in stimulating systemic change. As such, the Contractor must utilize a facilitative approach, without taking direct interventions in the market system, and focus on partnering with local actors both to improve their

7 https://www.marketlinks.org/sites/marketlinks.org/files/resource/files/Portfolio_Approach_to_PSD.pdf

8 See the 2017 USAID Kosovo PAD Evaluation, which notes evidence that firms in Kosovo consider firm-level grants to be useful but not necessary for growth.

https://usaidlearninglab.org/library/how-note-activity-monitoring%2C-evaluation%2C-and-learning-plan https://usaidlearninglab.org/cla-toolkit https://pdf.usaid.gov/pdf_docs/PA00MZS2.pdf internal capacity and to facilitate their contribution to, and integration with, the relevant market system. Interventions should promote local ownership. Partners could include - but are not limited to - support institutions or organizations (for example, local business consultants, accounting firms, etc.), scientific and research and development institutions, financial institutions, institutions which affect the legal/regulatory enabling environment, and the enterprises themselves

(for example, working with “anchor firms” to reach input enterprises or actors).

● Public outreach and strategic communication: The Contractor must proactively communicate opportunities, efforts, and successes to the public, via its own communications and its partners.

This should not only ensure a more diverse partner base for the USAID Export-led Growth activity, but also promote the demonstration effect within and outside the selected sectors. Good public communications will be key to building buy-in from market system actors in Kosovo’s environment of donor saturation.

● Promoting Financing Self-Reliance: Financing self-reliance (FSR) is a key USAID priority that advances partner countries’ Journeys to Self-Reliance by strengthening their ability to finance their own development plans and strategies. The Contractor must actively explore opportunities to co-finance project interventions by actively seeking private sector engagement for additional leverage.

C.9 COORDINATION WITH OTHER USAID PROJECTS, DONORS, AND THE GOK

As part of the holistic systems approach to market development, the USAID Export-led Growth activity must collaborate strategically and intentionally with other USAID activities, as well as the GOK and other development partners’ programs.

The Contractor must take advantage of the opportunity to communicate with and learn directly from other recent and current activities and stakeholders. The Contractor shall tailor its cooperation with other donors, ongoing USAID activities, and other stakeholders based on the identified needs of the selected sectors and approved Action Plans.

For example, USAID/Kosovo has recently launched the USAID Economic Governance Activity primarily targeting government entities in order to improve the policies, laws, regulations, procedures, and practices that affect the business enabling environment (BEE), including cross-border trade. However, the USAID

Economic Governance Activity has its own objectives, and cannot address every BEE issue. Given that the market systems approach could encompass BEE issues, the USAID Export-led Growth activity may work to address BEE issues affecting the activity’s targeted sectors that would require close coordination and consultation with the USAID Economic Governance Activity. Beyond this specific potential intersection, the USAID Export-led Growth activity may be a valuable channel for information from and access to the private sector for the USAID Economic Governance Activity, and vice versa, as it may provide information from and access to relevant government entities.

Among other issues, USAID/Kosovo manages a number of activities addressing education and workforce development, energy, and local governance, any or all of which may require close coordination with the

USAID Export-led Growth activity. The USAID-supported Kosovo Credit Guarantee Fund is another potential resource.

Although the U.S. Government, including through USAID, has historically played a leading role in this landscape, many donors are active in Kosovo, and active donor coordination is vital. The European Union

(EU) is very active. The European Bank for Reconstruction and Development’s Trade Facilitation

Programme facilitates trade finance through local banks (for example, grant/loan combos with 15 percent grants). Other relevant programs include, but are not limited to: Germany’s GiZ supports a private sector development project implementing project finance by Ministry of Finance, which seeks to create employment through export promotion, and it co-finances an Innovation Fund with the GOK’s Ministry of

Innovation; and Norway’s support primarily focuses on approximation to the EU, but priority areas include job creation/competitiveness. Additionally, USAID has partnered with the Swedish International

Development Cooperation Agency through competitiveness programming.

The GOK has historically been an enthusiastic partner in USAID interventions. Although it is anticipated that the USAID Economic Governance Activity will work more closely with the GOK and other government entities than the USAID Export-led Growth activity, the Contractor should anticipate communicating, coordinating, and possibly partnering with the GOK or other government entities where adequate to advance the objective of the USAID Export-led Growth activity.

In addition to intentional coordination, the Contractor should regularly pursue and identify potential opportunities for synergies with potential partners.

[END OF SECTION C]

SECTION D – PACKAGING AND MARKING

D.1 AIDAR 752.7009 MARKING (JAN 1993)

(a) It is USAID policy that USAID-financed commodities and shipping containers, and project construction sites and other project locations be suitably marked with the USAID emblem. Shipping containers are also to be marked with the last five digits of the USAID financing document number. As a general rule, marking is not required for raw materials shipped in bulk (such as coal, grain, etc.), or for semi-finished products which are not packaged.

(b) Specific guidance on marking requirements should be obtained prior to procurement of commodities to be shipped, and as early as possible for project construction sites and other project locations. This guidance will be provided through the cognizant technical office indicated on the cover page of this contract, or by the Mission Director in the Cooperating Country to which commodities are being shipped, or in which the project site is located.

(c) Authority to waive marking requirements is vested with the Regional Assistant Administrators, and with

Mission Directors.

(d) A copy of any specific marking instructions or waivers from marking requirements is to be sent to the

Contracting Officer; the original should be retained by the Contractor.

D.2 BRANDING

The Offeror shall comply with the requirements of the USAID branding policies available at:

www.usaid.gov/branding and appropriately mark all deliverables and public communications with the

USAID brand.

Note: USAID receives “exclusive branding and marking” for the work conducted under all acquisition awards. This means that the foreign assistance delivered is clearly credited to the American people. It also means that competing logos or identities are excluded unless otherwise indicated in the award (Contract).

Program name: This Program will be named the “Export led Growth” (ELG) activity in Kosovo. It is anticipated that the Final Report under this Award will be visibly branded as a USAID project utilizing the appropriate USAID/Kosovo templates

Desired level of visibility: All publications, public materials and documents, public communication, media releases, press conferences and public events should incorporate the USAID identity. Approval by the

USAID Mission Development Outreach and Communication Officer to be obtained through COR should be received before using any materials which incorporate the USAID identity.

Limitations: USAID places limitations on the release of sensitive or confidential information in the materials produced in performing the contract. The contractor should consult through the COR with the

Contracting Officer and the Regional Legal Advisor or Office of the General Counsel

The Marking Plan enumerates the public communications, commodities and program materials and other items that visibly bear or will be marked with the USAID identity (e.g., program sites, evaluations and reports, events, and commodities). It should include a table specifying the expected program deliverables to be produced under this Award and the whether they will be marked or not. The Marking Plan is where requests for exceptions to marking requirements can be made.

News releases/media alerts must be coordinated with COR. In general, all releases/alerts are issued by the U.S. Embassy on behalf of USAID, and USAID only submits these to the U.S. Embassy Public Affairs

Office.

D.3 BRANDING AND MARKING POLICY

In accordance with provision D.2 above, and where applicable, the Contractor shall comply with the requirements of the policy directives and required procedures outlined in USAID Automated Directive

System (ADS) 320.3.2 “Branding and Marking in USAID Direct Contracting” at http://www.

https://www.usaid.gov/ads/policy/300/320; and USAID “Graphic Standards Manual” available at http://www.usaid.gov/branding/, or any successor branding policy and as approved by USAID in the

Contractor’s Branding and Marking Plan.

[END OF SECTION D]

http://www.usaid.gov/policy/ads/300/320.pdf https://www.usaid.gov/ads/policy/300/320 http://www.usaid.gov/branding/

SECTION E – INSPECTION AND ACCEPTANCE

E.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE

The following contract clauses pertinent to this section are hereby incorporated by reference (by Citation

Number, Title, and Date) in accordance with the clause at FAR “52.232-2 CLAUSES INCORPORATED

BY REFERENCE” in Section I of this contract. See the following address

(https://www.acquisition.gov/far/) for electronic access to the full text of a FAR clause.

FEDERAL ACQUISITION REGULATION (48 CFR Chapter 1)

NUMBER TITLE DATE

52.246-5 INSPECTION OF SERVICES COST-REIMBURSEMENT APR 1984

E.2 INSPECTION AND ACCEPTANCE

USAID inspection and acceptance of services, reports and other required deliverables or outputs shall take place at the principal place of performance or at any other location where the services are performed and reports and deliverables or outputs are produced or submitted. The Contracting Officer’s Representative

(COR) listed in Section G has been delegated authority to inspect and accept all services, reports and required deliverables or outputs.

[END OF SECTION E]

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SECTION F – DELIVERIES AND PERFORMANCE

F.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE

The following contract clauses pertinent to this section are hereby incorporated by reference (by Citation

Number, Title, and Date) in accordance with the clause at FAR “52.232-2 CLAUSES INCORPORATED

BY REFERENCE” in Section I of this contract. See the following address

(https://www.acquisition.gov/far/) for electronic access to the full text of a FAR clause.

FEDERAL ACQUISITION REGULATION (48 CFR Chapter 1)

NUMBER TITLE DATE

52.242-15 STOP WORK ORDER ALTERNATE I AUG 1989

F.2 PLACE OF PERFORMANCE

The place of performance under this contract is Republic of Kosovo.

F.3 PERIOD OF PERFORMANCE

The period of performance for this contract is five (5) years, from TBD to TBD.

F.4 PERFORMANCE STANDARDS

Evaluation of the contractor's performance must be conducted in accordance with the performance standards set forth in the contract, the Contractor's overall performance toward achievement of the objectives in Section C and provision of deliverables in Section F, and the Contractor's compliance with all other terms and conditions of the contract, including reporting against the Monitoring, Evaluation, and

Learning Plan. Each evaluation will be conducted jointly by the COR and the CO, and must form the basis of the Contractor's permanent performance record with regard to this contract as required in FAR Part 42.15 and AIDAR 742.15.

The Contractor’s overall performance will be evaluated not only based on the ability to timely submit deliverables in Section F, e.g. draft work plans, but also the quality of draft deliverables and the ability to make the edits necessary to meet the requirements for USAID’s acceptance following initial submission.

The Contractor’s performance will be evaluated annually and at contract completion, utilizing at minimum, the following factors:

1) Technical (quality of product or service).

2) Cost control.

3) Schedule/timeliness.

4) Management or business relations.

5) Small business subcontracting (as applicable).

6) Other (as applicable) (e.g., late or nonpayment to subcontractors, trafficking violations, tax delinquency, failure to report in accordance with contract terms and conditions, defective cost or pricing data, terminations, suspension and debarments).

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F.5 KEY PERSONNEL

(a) The contractor must furnish the following positions deemed key personnel for the performance of this contract.

No. Key Personnel Position

1 Chief of Party

2 Deputy Chief of Party

[TBD]….

(b) The key personnel identified above are considered essential to the work being performed under this contract. The contractor must remain responsible for providing such key personnel for full-time performance for the term of this contract unless otherwise agreed to by the contracting officer.

(c) The failure to provide the key personnel designated above may be considered nonperformance unless such failure is beyond the control, and through no fault or negligence, of the contractor.

(d) The contractor must immediately notify the contracting officer and the COR of any key personnel’s departure and the reasons therefore, as well as anticipated departures in the event the situation permits such forewarning.

(e) The contractor must take steps to immediately rectify this situation and will propose a substitute candidate for each vacated position along with a budget impact statement in sufficient detail to permit evaluation of the impact on the program.

(f) The contractor must not replace any of the key personnel without the written consent of the CO and the

COR whether provided in advance or by ratification.

(g) USAID reserves the right to adjust the level of key personnel during the performance of this contract.

(h) Key personnel under this award may be replaced with written approval of CO based on the responsibilities, qualifications and experience as stated below.

(Requirements and responsibilities for each Key Personnel position will be incorporated up on contract award)

F.6 REPORTS…