Justification for Contract No. AID-167-C-17-00004 -KESS Activity.pdf

J&A for Contract No. AID-167-C-17-00004 USAID/Kosovo KESS Activity

JUSTIFICATION AND APPROVAL FOR OTHER THAN FULL AND OPEN

COMPETITION (J&A)

SUBJECT: Justification and Approval for Other than Full and Open Competition (J&A) for Contract No. AID-167-C-17-00004, Kosovo Energy Security of Supply (KESS) Activity with DT Global, INC

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:

AIDAR 706.302-70(b) permits other than full and open competition “when it would impair or otherwise have an adverse effect on programs conducted for the purposes of foreign aid, relief, and rehabilitation.” AIDAR 706.302-70(b)(5) further states that use of this authority is appropriate for “[a]n award for the continued provision of highly specialized services when award to another resource would …would result in unacceptable delays.”

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

This is a request to approve a non-competitive contract modification to DT Global, Inc (Contractor) to increase the current Total Estimated Cost (TEC) of $8,000,000 by $750,000 to a revised TEC of $8,750,000, and extend the Period of Performance (PoP) by thirteen (13) months from the original end date of August 9, 2022 to a revised end date of September 30, 2023, in accordance with AIDAR 706.302-70(b)(5) for the Kosovo Energy Security of Supply (KESS) Activity.

The TEC increase and extension of period of performance enable USAID to expand activities of the contract scope to capitalize on the momentum in Kosovo in support of renewable energy and energy diversification, cement this burgeoning support for energy sector security and resilience, and further the legal and regulatory environment for energy diversification in Kosovo for which the foundation has already been laid through this Activity. Additionally, the TEC increase and extension will help USAID continue the promotion of private sector investment and development opportunities in the energy sector of Kosovo, including renewable energy development across multiple sectors, further promoting the overall stability and development of Kosovo. The proposed modification would allow the contractor to do more of the scope to solidify the gains already achieved, and bring additional gains anticipated but not yet achieved under the contract to fruition. The summary of the work anticipated for the extension is:

(1) identify and accelerate rapid solar photovoltaic (PV) rooftop development opportunities;

(2) create market linkages and access to finance for solar PV adoption; and

(3) assist the Government of Kosovo (GoK) with efforts to expand the legal and regulatory enabling environment for Renewable Energy Sources (RES) and solar PV expansion.

The relationships built thus far, the recent but significant emphasis on green energy, and the first stable government in years create a perfect environment in which to capitalize and amplify the gains already achieved under this project. The specialized technical and regional expertise of the incumbent Contractor, and the hard won trust of both government and private sector actors, make the current Contractor best placed to effectively utilize this modest TEC increase to significantly impact and solidify gains in the environment for renewable energy in Kosovo.

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

The original contract was awarded on August 10, 2017 to AECOM International Development, INC.

(now DT Global, INC as of July 26, 2019), using full and open competition with a period of performance ending August 9, 2022. No other non-competitive action has been completed for this award. Through the Contractor, USAID supports GoK with a complementary suite of activities aimed at promoting energy sector security and resilience. Specifically, the Contractor identifies and accelerates rapid PV rooftop development opportunities, creates market linkages and access to finance for solar PV adoption, provides public outreach support to promote RES and climate awareness, and assists the GoK with efforts to expand the legal and regulatory enabling environment for RES and solar PV expansion.

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

AIDAR 706.302-70(b) permits other than full and open competition “when it would impair or otherwise have an adverse effect on programs conducted for the purposes of foreign aid, relief, and rehabilitation.” AIDAR 706.302-70(b)(5) further states that use of this authority is appropriate for “[a]n 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. A demonstration that the proposed contractor’s unique qualifications or the nature of the acquisition that requires use of the authority cited:

The Contractor is an international development contractor, working across a wide range of sectors and technical areas in over 90 countries around the world. The Contractor is one of the few firms globally that has the capability, skills, services, and willingness to provide this specialized support in Kosovo for this Activity and contract modification. The Contractor has successfully been implementing USAID-funded energy projects in Kosovo since 2014, focusing directly on regulatory technical assistance and energy security of supply issues.

Competing the expansion of activities planned as part of the proposed modification would result in unacceptable delays towards achieving US government’s strategic development goals in Kosovo to improve energy security through diversifying energy sources and enhancing private sector investments in the energy sector. With the ongoing global energy crisis that is grossly affecting Kosovo, the expansion of the prosumer eligibility will create opportunities for Kosovo businesses to utilize alternative sources of energy with a goal of reducing their electricity bill. Recompeting the activities planned for the modification would also result in losing the momentum for renewable energy in Kosovo, potentially creating new issues impacting the energy sector, and overall disruption of continuity of services and activities already implemented and established by the Contractor promoting renewable energy in Kosovo.

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].

As required by FAR 5.201, on April 28, 2022, a Notice of Intent (NOI) for this proposed action was publicized for 15 days in SAM.gov, in an effort to ensure that offers were solicited from as many potential sources as practicable.

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

Upon approval of this justification, the Contracting Officer will request a full technical and cost proposal from DT Global, INC for the KESS contract for the additional work requested and will conduct a thorough cost analysis of that proposal to ensure that the actual cost to the Government is fair and reasonable.

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

USAID/Kosovo conducted in-house market research on the possibility of rapid mobilization of a team that could take over the tasks that the existing team is performing. USAID/Kosovo concluded that any new procurement would cause delays in the time it would take to get the award and in building relationships with the counterparts once the team is operational.

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

The current energy sector environment in Kosovo is primed to advance RES. With the EU currently expanding its RES targets across Europe, more emphasis has been placed on countries like Kosovo to advance RES projects and create stronger enabling environments for RES generation. This momentum both internally and externally is critical to capture and not extending this contract as proposed would impair this foreign aid program.

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

As required by FAR 5.201, on April 28, 2022, a Notice of Intent (NOI) for this proposed action was publicized for 15 days in SAM.gov, in an effort to ensure that offers were solicited from as many potential sources as practicable. One response was received which was determined not relevant for this activity.

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 future requirements through full and open competition and potentially set aside for small businesses. USAID/Kosovo will also duly consider the use of a Best in

Class (BIC) mechanism to comply with USG requirements of consideration of Category Management.