JOBS J and A signed.pdf

JUSTIFICATION AND APPROVAL (J&A)

TO: David Arnett, Contracting Officer

CC: Agency Competition Advocate

(justificationsanda@usaid.gov and outbreak_EPP@usaid.gov)

FROM: Luis Hernandez, Economic Growth Office Director, USAID Tunisia

DATE: May 4, 2022

RE: USAID Tunisia JOBS Contract No: AID-664-C17-00001

SUBJECT: Justification for Other than Full and Open Competition under the Expedited Procedures

Package (EPP) for Responding to Outbreaks of Contagious Infectious Diseases

We request approval of this justification for use of other than full and open competition pursuant to the authorities under the EPP for Responding to Outbreaks of Contagious Infectious Diseases (the “Expedited Procedures Package”), approved on March 24, 2020, for five years. Your approval of this J&A constitutes the justification for other than full and open competition as required by Tab 1 (Determination and Findings (D&F) Authorization for the Use of Other than Full-and-Open Competition in the Award or Modification of Contracts) of the EPP.

a. Nature and/or description of the action being approved.

To increase the time and cost of the JOBS Contract as follows:

1. Increase the Contract’s Total Estimated Cost (TEC) from $69,602,104 to $74,602,104, a total net increase of $15,000,000.

2. Increase the Contract’s Performance Period end date from June 1, 2023 to May 31, 2024

b. A description of the supplies or services required to meet USAID’s needs (including the estimated value).

COVID-19 drastically changed Tunisia’s economic growth outlook. The country entered the pandemic with slow growth and rising debt levels and as a result, experienced a steeper economic decline than most of its regional peers. Tunisia’s GDP contracted by 6.6 percent in 2019 and 8.8 percent in 2020.

Unemployment stands at more than 18 percent. For women, the unemployment rate is 24.9 percent and for youth, 40.8 percent. The country’s economic outlook remains uncertain, and the recovery is slower than expected due to an escalation of COVID-19 in mid-2021, the heightened political uncertainty, the rising inflation, and the continued disruption of market supply chains. The estimated 2.3 percent 2021 GDP growth rate is not nearly enough to offset the sharp economic downturn. About half of the surveyed mailto:justificationsanda@usaid.gov mailto:outbreak_EPP@usaid.gov small businesses report three months or less in cash to maintain operations. Private sector job creation has stagnated, and tens of thousands of enterprises and small businesses continue to struggle and are at risk of failure.

The proposed increase in the Contract’s time and cost will tackle these challenges and help mitigate the pandemic’s economic impact on the Tunisian private sector. More specifically, the Contract will build on existing nationwide efforts, institutional partnerships, and implementation infrastructure to expand and deliver immediate support for Tunisian micro, small, and medium-sized enterprises. (MSMEs) in underserved regions.

To specifically address the negative effects resulting from the prolonged COVID-19 pandemic on the Tunisian economy, the activity will put efforts into the following areas:

a) Grants: In partnership with Tunisia Microfinance Institutions (MFIs) the grants program will deliver a relief grant-loan package for at least 2,000 vulnerable micro and small businesses in underserved regions and at risk of failure due to the drastic economic downturn caused by COVID-19. At least 40 percent of the relief grants program will target women-owned enterprises. Grant activities also include grants of up to $25,000 each for local agriculture cooperatives and rural SMEs in underserved regions.

b) Tailored business solutions and technical assistance to SMEs: With a target of at least 80 percent of beneficiaries in underserved regions, the Contract will deliver services and goods to accelerate the growth, increase sales, expand exports and markets, attract investment, and facilitate access to credit for at least 2,000 Tunisian SMEs.

c) Workforce development and curriculum reform: The extension period will allow for the expansion of the ongoing curriculum reform efforts to train 400 trainer-of-trainers and accelerate the dissemination and adoption of the new curricula for business, IT, and entrepreneurship developed in the last two years for the benefit of about 5,000 young graduates.

Moreover, the Contract will expand workforce activities to place at least 1,000 youth in internships, equip 2,500 youth with the technical and professional skills for private sector employment, and match 1,000 youth with new employment opportunities.

d) Business Enabling Environment: During the extension period, the Contract will consolidate ongoing investments to reduce the cost and time of doing business and streamline export and investment permits with digital tools and IT solutions. This effort includes facilitating the adoption and use of the tools delivered with additional pilot tests, training, and data dashboards.

e) Communications and Outreach: The extension will build on existing efforts to increase Tunisian awareness of USAID-funded results nationwide through social media, radio, video, events, and online content.

c. Identification of statutory authority permitting other than full and open competition.

AIDAR 706.302-70(b)(3) and 40 U.S.C. §113; See the “Expedited Procedures Package for Responding to Outbreaks of Contagious Infectious Diseases” approved March 24, 2020. The D&F is attached to this file in Tab 1. The EPP can only be used for an Infectious Disease Outbreak, as defined in paragraph 2 of the D&F (Tab 1). The COVID-19 outbreak was declared a Public Health Emergency of International Concern by the World Health Organization (WHO) on January 30, 2020, and therefore the class D&F applies to COVID-19 emergency response activities.

d. A discussion of the proposed contractor’s unique qualifications or the nature of the acquisition that requires the use of the authority cited.

The Contract has nationwide reach and is on track to deliver and exceed contractual targets. To date, the Contract has provided grant relief support to about 20,000 micro, and small businesses and assisted over 30,000 SMEs to increase sales by about $500 million, access more than $400 million in loans, secure about $120 million in investments, and create nearly 42,000 new jobs. The Contract has also equipped over 10,500 youth with the skills and professional training for private sector employment, launched a new internship program in partnership with Tunisian firms, and placed over 5,000 graduates with private sector firms.

The Contractor, Chemonics International Inc., is uniquely positioned to deliver the services and goods described in section (b) and can expand on existing capabilities to address urgent challenges for the direct benefit of Tunisian MSMEs. Chemonics’ existing implementation infrastructure includes an online grants management system to digitally receive, evaluate, and approve a large volume of applications; an IQC mechanism with 49 Tunisian consulting firms to timely deliver tailored technical assistance to SMEs at a reduced cost; an electronic data collection and digital monitoring and evaluation system to manage a large volume of data, inform progress, assess changes, and validate results; a network of nine regional offices to cover all underserved regions; the communications and outreach platform and tools to develop and disseminate content on-demand; and, a proven and established working relationships with the GoT counterparts and the private sector.

The relationships and existing implementation infrastructure already developed by Chemonics allows them to be best positioned to respond quickly to the immediate threat to the Tunisian economy posed by COVID-19. Any delay in providing this vital economic assistance would not be in the best interest of the Agency or the people of Tunisia.

e. A description of efforts made to ensure that offers are solicited from as many potential sources as is practicable.

The Mission is not aware of any other partner or contractual mechanism which could provide the necessary services in a timely manner. Due to the drastic downturn in the economy and the urgent need of MSMEs for assistance, the Tunisian economy cannot afford any break in service. It is imperative that these services continue in order to provide quick and meaningful support and prevent further deterioration of the Tunisian private sector.

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

As required for the proposed time and cost extension, an IGCE was developed based on historical data and invoiced actual costs. The IGCE total cost is approximately $15 million. These costs are appropriate and reasonable and represent the best value to the U.S. Government. The alternative option of negotiating a new cost structure under a competitive award will increase the costs to USG and result in unacceptable delays, per the points outlined in section (d). Based on these factors, the Contracting Officer determined that the costs to the USG for the proposed modification are fair and reasonable.

g. A description of the market research conducted (see FAR Part 10) and the results or a statement of the reason(s) market research was not conducted.

Market research was not conducted. Given the urgency of this requirement in response to the pandemic-induced economic crisis, it is not feasible to select another contractor who is unfamiliar with the breadth and scope of the work to be undertaken and lacks the implementation infrastructure and reach to timely deliver the required goods and services. Moreover, the 12-month planned implementation for the proposed work would not allow for sufficient time to bring in new partners through a competitive award process.

h. A listing of the sources, if any, that expressed, in writing, an interest in the acquisition.

Publication of a notice is not required per the determination at AIDAR §705.202(b)(1) and AIDAR 706.302-70(b)(3) under the Expedited Procedures Package (EPP) for Responding to Outbreaks of Contagious Infectious Diseases dated March 16, 2020.

i. A statement of the actions, if any, USAID may take to remove or overcome any barriers to competition before any subsequent acquisition of the supplies or services required.

In this urgent response to the COVID-19 outbreak, USAID will intensify efforts to build the technical and institutional capacity of local organizations to participate in key activities, as it is anticipated that strengthening their capacity will expand the pool of potential offerors for future procurements and enable wider competition among local organizations.

If this activity is required past the extension period, the Missions anticipates that the follow-on would be awarded under full and open competition.

RECOMMENDATION

That you approve this justification for use of other than full and open competition pursuant to the “Expedited Procedures Package for Responding to Outbreaks of Contagious Infectious Diseases”, approved on March 24, 2020. Your approval of this J&A constitutes the justification for other than full and open competition as required by Tab 1 (D&F for the Authorization of Less than Full and Open Competitive Procedures in the Modification or Award of Contracts) of the EPP.

Ecl. Tab 1- EPP D&F for the Authorization of Less than Full and Open Competitive Procedures in the Modification or Award of Contracts.

CERTIFICATION

The requirement for technical certification at FAR 6.303-1(c) is fulfilled through:

a. The signature of the Technical Officer below certifying the specific supporting data for this J&A;

and

b. The D&F Authorization for the Use of Other than Full-and-Open Competition in the Award or Modification of Contracts under the Expedited Procedures Package for Responding to Outbreaks of Contagious Infectious Diseases” approved on March 24, 2020. (attached in Tab 1).

The Contracting Officer is the Approving Official based on the authority given under the EPP. However, a separate Contracting Officer certification is not required per AIDAR 706.302-70(c)(1).

Technical Officer:

I hereby certify that the supporting data which form a basis for the justification are complete and accurate to the best of my knowledge and belief.

Luis Hernandez Date Technical Officer

APPROVAL:

David Arnett Date:

Contracting Officer

CLEARANCE:

Warren Leishman1 Date:

RLO

1 While the J&A does not need to be reviewed or cleared by the Agency Competition Advocate, the CO must send a courtesy copy of the J&A to justificationsanda@usaid.gov and to Outbreak_EPP@usaid.gov.

13 May 2022 mailto:justificationsanda@usaid.gov mailto:Outbreak_EPP@usaid.gov