JA Contract 72011418C00001 Modification 013.pdf

JUSTIFICATION AND APPROVAL FOR OTHER THAN FULL AND OPEN

COMPETITION (J&A)

TO: Deborah Broderick, Agency Competition Advocate (ACA)

FROM: Marika Olson, Economic Growth Office Director, USAID/Georgia

SUBJECT: Justificationand Approval for Other than Full and Open Competition (J&A)

1. This document sets forth the facts and rationale justifying the use of other than full and open competition, in accordance with AIDAR 706.3:

This document was prepared by USAID/Georgia's Economic Growth Office (EG) to modify the USAID Agriculture Program with theContractor, Cultivating New Frontiers inAgriculture

(CNFA).

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

TheUSAID Agriculture Program was originally awarded onSeptember 24,2018 as a result of a full and open competition for a five-year contract period through September 23,2023. The initial contract amount was$18,244,697, which wassubsequently increased to $23,160,395 in 2019 (Modification 05) and to $24,360,395 inMarch 2022 (Modification 09). In the case of Modification 05, which increased the total estimated cost of the award by $4.9 million, the ACA was consulted and agreed with the CD's determination that competition was not triggered by the proposed action falling within thescope of thecontract. ForModification 09, which increased the cost by $1.2 million under the authority ofAIDAR 706.302-70(b)(3)(i), the ACA was consulted and a Determination and Findings and J&A were approved by the Assistant Administratorfor Europe and Eurasia.

This is a request to approve anon-competitive modification ofthe USAID Agriculture Program contract number 72011418C00001, adding federal supplemental funding in response to the global emergency caused by the war in Ukraine, to:

• Extend the period ofperformance by six (6) months from September 23,2023, to March 22, 2024 and increase the total estimated cost by $2,450,000 from $24,360,395 to $26,810,395, for activities described in item 3 below.

3. Description ofthesupplies or services required, including an estimated value:

The proposed $2,450,000 TEC increase will allow the USAID Agriculture Program to expand ongoing export facilitation and diversification activities in light ofthe significant economic impacts to Georgian agribusinesses as a result ofthe war in Ukraine. This expansion will enable CNFA to increase its impact in critical areas to U.S. foreign assistance objectives such as advancing Euro-Atlantic integration and reducing malign influence. The proposed time and cost increase is envisioned to fund the following areas ofactivity:

• Support Wine Exporters: Over 70 percent of Georgia's wine export market is now compromised as a result of the war in Ukraine. As such, wine will be incorporated as a new value chain into ongoing export diversification activities. Specifically, CNFA will: (i) support the Ministry ofEnvironmental Protection and Agriculture, the National Wine Agency, and the Georgian Wine Association to identify and develop relationships with potential distributors in key export markets; (ii) support participation ofwine exporters in intemational trade exhibitions and, (iii) facilitate linkages between buyers and sellers, identification of new markets, and expansion of existing markets.

• Provide Technical Assistance to Export-Ready Agribusinesses: This technical assistance will focus on preparing agricultural enterprises to meetthe requirements of high-end export markets, suchas branding and marketing support and certifications in internationally recognized food safety and qualitymanagement systems (i.e. BRC, IFC, IS022000, GlobalGAP). Additionally, technical assistance will support participation in two additional intemational trade fairs andtheorganization of visits by potential buyers to Georgia in order to deepen linkages between Georgian agribusinesses andpotential buyers in newmarkets.

• Establish Refhgerated Warehouses in Strategic Export Markets: Export-oriented agribusinesses increasingly require warehouses to facilitate exports for a variety ofperishable products. Working withthe Export Development Association (EDA), CNFA willassess the feasibility ofrenting warehouse space in strategic markets for Georgian companies to facilitate their entry andexpansion into these markets. If deemed viable, CNFA willwork with export-oriented beneficiaries to co-finance a pilot program that can bescaled to other markets.

• National Awareness Campaign to Promote Export Opportunities: Proactive and nation-wide activities are required to diversify exports and reduce dependence onthe Russian market.

CNFA will highlight export-related themes through a multi-media campaign to increase awareness and inform the Georgian public about standards, requirements, and opportunities, encouraging export-oriented agribusinesses to diversify into high-value markets.

The proposed activities are estimated to create an additional $3.5 million in new export sales, $1.5 million in private sector investments, and an additional 10 companies obtaining intemational certification.

4. Statutory authority permitting otherthan fuli andopen competition:

Pursuant toAIDAR 706.302-70(b)(5), full and open competition need not beobtained for "an award for the continued provision of highly specialized services when an award to another resource would result in substantial additional costs to the Govemment or would result in unacceptable delays."

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

The USAID Agriculture Program is a USAID/Georgia flagship program focused on accelerating the growth ofagricultural subsectors that demonstrate strong potential to create jobs and increase incomes and revenues ofmicro, small, and medium enterprises (MSMEs). With agriculture employing over half of Georgia's population, the USAID Agriculture Program plays an important role in achieving U.S. foreign assistance objectives. The goal ofUSAID/Georgia's 2020-2025 Coimtry Development Cooperation Strategy (CDCS) is to strategically partner with Georgia in order to advance Euro-Atlantic integration and strengthen resilience to malign influence. The USAIDAgriculture Program specifically supports Development Objective 3, whichseeks to createhigh-value employment opportunities through increased economic growth.

The Republicof Georgiais a critical ally of the UnitedStates in the region. Export diversification focused on reducing dependency on Russian markets in favorof EU and other non-malign markets is a key piece of theProgram's strategy to achieve thisdevelopment objective andalso to contribute to broader U.S. foreign assistance objectives aroimd countering malign influence andadvancing Euro-Atlantic integration. Thewar in Ukraine hasheightened the urgency for increased efforts in this area.

CNFA isa competent and valued USAID partner with over a decade ofexperience implementing agricultural programs inGeorgia. CNFA has a highly qualified team with the requisite technical knowledge inniche agricultural fields. Asa result, CNFA has consistently demonstrated its ability toprovide quality technical assistance to the Government ofGeorgia (GOG) and other beneficiaries; this isevidenced by the numerous requests for assistance the Program receives fi-om government entities, such as providing continual support toEnterprise Georgia, the GOG's export promotion agency. Through its long tenure in Georgia, CNFA has cultivated relationships with GOG entities that have been leveraged into current partnerships designed toadvance the agricultural sector through new market linkages, export promotion, and modem production practices. Ongoing partnerships with the Rural Development Agency and Enterprise Georgia to diversify agricultural export markets will be strengthened through the proposed time and ceiling increase. Thus, a change incontractor would make replicating these partnerships within the remaining time frame of theProgram near impossible.

Conducting a full and open competition would delay these planned actions beyond the existing window ofopportunity. Not implementing the proposed additional activities focused on export facilitation would hamper the Program's goals ofdiversifying export markets away from Russia and would likewise reduce the number ofagricultural enterprises that are able toreach new and more lucrative markets, like the EU. As a result, U.S. foreign assistance objectives aimed at reducing malign influence and advancing Euro-Atlantic integration would be impaired.

Adirect award to a local contractor was not considered given the lack oflocal entities capable of implementing the entirety ofthe proposed activities itself. The scope ofthe expansion requires deepening linkages with intemational markets, which is not an area ofexpertise for local organizations in Georgia.

6. Description oftheefforts made toensure thatoffers aresolicited from as many potential sources aspracticable, including whether a notice was publicized as required by

FAR 5.2 [AIDAR 705.2].

In accordance with FAR 5.201, a Notice of Intent was posted on www.sant.uov. outlining the proposed e.xtension and activities included in it, This Notice was posted on October 12, 2022.

and provided interested parties with fifteen (15) calendar days to submit expressions of interest.

The open period for responses expired on October 27, 2022.

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

An independent government cost estimate (IGCE) has been completed using existing and historical costs under the existing project to estimate the cost to the government for this proposed modification. The Contracting Officer will use this and the existing activity's historical expenditure information to make a determination about proposed costs.A cost analysis will also be conducted on proposed costs for the extension period,

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

The Mission considered the potential for other vendors to beable to perform the required work in light of theneed for a rapid response to the impacts of Russia's invasion of Ukraine in Georgia, and found CNFA to be the only vendorcapable of meeting the time constraints and other considerations, including building of partnerships and trust in the country, for implementation of this emergency funding. This conclusion is further confirmed by the lack ofmeaningful expressions of interest received in response to USAID's Notice of Intent.

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

CNFA is highly qualified and uniquely positioned to implement the proposed expansion of the USAID Agriculture Program. It continues to meet Program targets and consistently receives positive ratings on key metrics in its performance reports.

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

ANotice ofIntent was posted on www.sam.iiov on October 12, 2022, inviting expressions of interest inthis proposed modification within 15 days ofpublication.

Three messages were received in response to this Notice, two before the October 27 deadline and a third several days after the deadline. The CO reviewed each carefully and determined that none ofthe firms or individuals expressing interest demonstrated an ability to meet the government's requirements. Similarly, no subcontracting opportunities were identified from this notice of contract action.

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 Mission will consider full and open competitionfor any future requirements similar to the activities under this award. The time remaining before the end of the period of performance for this awardprovides ample opportunity to designand competitively procurea future program.

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