Justification and Approval for Georgia Economic Governanace Program Extension.pdf

JUSTIFICATION FOR AN EXCEPTION TO FAIR OPPORTUNITY

TO: Deborah Broderick, Agency Competition Advocate (ACA)

FROM: David Tsiklauri, COR of the USAID Economic Governance Program

SUBJECT: Justification and 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 706.302-70(b)(5), Highly Specialized Services.

This document was prepared by USAID/Georgia Economic Growth Office documenting the facts and rationale to extend the period of performance for Task Order 72011420F00001 by 12 months, from December 17, 2024, to December 17, 2025, and to increase the total estimated cost by $3,900,000 from $18,972,172 to $22,872,172.

This J&A is being prepared using AIDAR Part 706 authority as the proposed extension will modify the subject task order outside of the material terms and conditions of the IDIQ award

(7200AA18D00009).

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

This is a request to approve a non-competitive modification of the Task Order Number 72011420F00001 awarded to Deloitte Consulting LLP (Deloitte) under IDIQ Contract Number 7200AA18D00009 to extend the period of performance by 12 months and increase the total estimated cost by to $3.9 million from $18,972,172 to $22,872,172.

The Economic Governance Program was awarded competitively on December 18, 2019, as a five-year, $18,972,172 Cost-Plus-Fixed-Fee (CPFF) completion type task order under the USAID Public Financial Management II IDIQ (PFM-2) (200AA18D00009) to Deloitte Consulting LLP.

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

This extension will allow the existing program to better serve U.S. Government interests and support USAID/Georgia’s Development Objective 3 in two ways. First, by ensuring an experienced team is in place to support Parliament’s transition through the October 2024 elections and to ensure that Public Private Dialogue continues between the private sector and civil society organizations (CSOs), Parliamentarians, and Government officials. Second, the current program will also have sufficient time to complete support to ongoing key reforms and regulations in line with the EU Association Agreement.

The proposed modification to the USAID Economic Governance Program will extend the program’s current activities, focused on facilitating Public Private Dialogue and strengthening the private sector and CSOs to affect the development, implementation and enforcement of economic policies, laws, and regulations. In addition, assistance will continue for laws and regulations in support of Georgia’s EU Association Agreement and Western integration, for an additional 12 months. This extension will allow the program to achieve several critical objectives, including providing continuity of support following the 2024 elections in Georgia, which will create a new government and Parliament. This support includes demonstrating the value of established systems, such as ReforMeter, public-private dialogue systems and regulatory impact assessments to the new Parliament, in line with USAID-supported best practices. The program will also have sufficient time to strengthen the capacity of the new government stakeholders to lead the development, implementation, and enforcement of economic policies, laws, and regulations.

Moreover, the program will be able to complete several ongoing key reforms, such as E- Commerce, Tourism, and Water, in line with USAID’s support for Georgia’s EU trajectory.

These reforms would otherwise stall without consistent USAID support. It is critical that the existing project continues pushing these reforms now not to lose the momentum because they have already developed relationships with the Government of Georgia (GOG) and other stakeholders and have established required systems.

The successful completion of these tasks will require the program to continue implementation at its current pace and expenditure rate, which necessitates increasing funding by $3.9 million. Annex #1 attached provides summary of priority technical activities and updated PMP of the USAID Economic Governance Program for the extended one-year period.

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

Pursuant to AIDAR 706.302-70(b)(5), full and open competition need not be obtained 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 Government or would result in unacceptable delays.”

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

The USAID Economic Governance Program is USAID/Georgia’s flagship economic policy program that supports economic governance and leadership in Georgia. Program supports the GOG to lead the development, implementation, and enforcement of policies, laws, and regulations that promote a transparent economic environment. In addition, the Program supports business associations and civil society to drive Georgia’s reform processes and ensure that there are feedback loops to help shape policy formulation. The Program also provides technical assistance to the GOG to ensure evidence-based policymaking that accounts for the needs of all key stakeholders and in response to Georgia’s EU Association Agreement and Western integration.

Through its long tenure in Georgia, Deloitte has cultivated strong relationships with GOG agencies that have leveraged into current partnerships designed to advance the economic policy environment through improved and transparent regulations and procedures. This extension will continue provision of highly specialized services such as ReforMeter, public-private dialogue systems and regulatory impact assessments to the new Parliament and Government. In addition, the program will complete development of technical regulations for highly specialized and comprehensive reforms, such as Public Procurement, E-Commerce, Tourism, and Water Resources management. Conducting a full and open competition would delay these planned actions beyond the existing window of opportunity. Furthermore, a change in contractors would make replicating these partnerships and systems within the remaining time frame of the Program near impossible.

And finally, designing and awarding a separate program to another resource would result in substantial additional costs to the Government. Lauch of new activity of this scale would require around 4-5 months for program mobilization, conducting initial assessments, establishing relationships with GOG Government, and early planning work. Therefore, estimated additional cost would be in the range of the 30-40% of the requested additional funding, namely in the range of $1-1.5m. Similar additional time and cost would be associated with an award to a local organization, a limited pool of which are available with the organizational capacity .

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 FAR 5.2

[AIDAR 705.2].

In accordance with FAR 5.201, a Notice of Intent was posted on www.sam.gov, outlining the proposed extension and activities included in it. This Notice was posted on November 7, 2023, and provided interested parties with fifteen (15) calendar days to submit expressions of interest. The open period for responses expired on November 22, 2023. In accordance with FAR 6.305(a), this justification will also be made publicly available within 14 days after the modification to the contract is signed.

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

From experience and the competitive process for award of the initial task order contract, other competitive processes of the same nature, and market knowledge, USAID/Georgia’s Regional Contracting Office possesses the tools and knowledge to ensure that the negotiated costs are fair and reasonable. Additionally, 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 expansion.

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

The Mission has not conducted market research considering Deloitte is the only vendor capable of meeting the time constraints and other considerations, including building of partnerships and trust in the country, for implementation of this task. This conclusion is further confirmed by the lack of expressions of interest received in response to USAID’s Notice of Intent.

9. Other facts supporting the use of exception to fair opportunity:

Deloitte Consulting LLP is highly qualified and uniquely positioned to implement the proposed extension of the USAID Economic Governance Program. Under the existing activity, they have consistently met Program targets and received Satisfactory or higher overall ratings.

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

A Notice of Intent was posted on www.sam.gov on November 7, 2023, inviting expressions of interest in this proposed modification within 15 days of publication. No submissions were received in response.

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 any future requirements through full and open competition.

12. Technical or Requirement Personnel Certification

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

David Tsiklauri, COR of the USAID Economic Governance Program Date USAID/Georgia Economic Growth Office

13. Contracting Officer Certification

In accordance with FAR 6.303, I hereby certify that the justification is accurate and complete to the best of my knowledge and belief.

Samuel Kraegel, Contracting Officer Date

14. Approved:

Deborah Broderick, Date Agency Competition Advocate

Internal Agency Clearance(s)

Clearance:

Ali Nader, Resident Legal Officer Date: 12/26/2023

Michelle Koscielski, Director of the Economic Growth Office Date: 1/08/2024