NOFO 72016522RFA00010 - Private Sector Led Growth, Resilience and Response Activity.pdf

Notice of Funding Opportunity (NOFO) Issuance Date: September 15, 2022 Deadline for Questions: October 4, 2022 NOFO Closing Date/Time: October 31, 2022, 4:00 pm Skopje time

Subject: Request for Applications (RFA), Number: 72016522RFA00010

Program Title: Private Sector Led Growth, Resilience and Response Activity

Reference: Catalog of Federal Domestic Assistance (CFDA) Number: 98.001

Potential Applicants:

The United States Agency for International Development (USAID) is seeking applications from qualified entities to implement the Private Sector Led Growth, Resilience and Response Activity, referenced herein as the “Activity”. Eligibility for this award is not restricted.

This Activity aims to support economic growth in North Macedonia driven by the private sector.

The goals of this Activity are to increase micro, small, and medium enterprises’ (MSME) productivity; create demand driven professionals; improve access to finance for micro, small, and start-up firms and facilitate investments for MSMEs; strengthen existing public-private dialogue (PPD) mechanisms; and to improve North Macedonia’s regional economic integration. For this purpose, the implementing partner under this Activity will engage in resource partnerships with the private sector for the development of joint interventions and enterprise-driven solutions.

Post-COVID recovery, Europe’s energy crisis and the war in Ukraine are further constraining economic growth, while future unexpected events may further disrupt growth prospects and predictions. This Activity will shape its interventions in a way that will help the private sector to strengthen its ability to respond to, foresee, adapt to and leverage changing conditions. The vision for resiliency and improved capacity to respond to individual and global challenges must be embedded in the proposed program.

USAID intends to make an award to the applicant(s) who best meets the objectives of this funding opportunity based on the merit review criteria described in this NOFO subject to a risk assessment. Eligible parties interested in applying are encouraged to read this NOFO thoroughly to understand the type of program sought, application submission requirements and selection process.

To be eligible for award, the applicant must provide all information as required in this NOFO and meet eligibility standards in Section C of this NOFO. This funding opportunity is posted on www.grants.gov, and may be amended. It is the responsibility of the applicant to regularly check the website to ensure they have the latest information pertaining to this notice of funding opportunity and to ensure that the NOFO has been received from the internet in its entirety.

NOFO No. 72016522RFA00010 Private Sector Led Growth, Resilience and Response Activity

USAID bears no responsibility for data errors resulting from transmission or conversion process.

If you have difficulty registering on www.grants.gov or accessing the NOFO, please contact the Grants.gov Helpdesk at 1-800-518-4726 or via email at support@grants.gov for technical assistance.

USAID may not award to an applicant unless the applicant has complied with all applicable Unique Entity Identifier (UEI) and System for Award Management (SAM) requirements detailed in Section D.7. The registration process may take many weeks to complete. Therefore, applicants are encouraged to begin registration early in the process.

Please send any questions in the English language to the point(s) of contact identified in Section D. The deadline for questions is shown above. Responses to questions received prior to the deadline will be furnished to all potential applicants through an amendment to this notice posted to www.grants.gov.

Issuance of this notice of funding opportunity does not constitute an award commitment on the part of the Government nor does it commit the Government to pay for any costs incurred in preparation or submission of comments, suggestions, or a full application. Applications are submitted at the risk of the applicant. All preparation and submission costs are at the applicant’s expense.

Thank you for your interest in USAID programs.

Sincerely, Chad Berkowitz Foreign Service Agreement Officer

SECTION A: PROGRAM DESCRIPTION 4

SECTION B: FEDERAL AWARD INFORMATION 16

SECTION C: ELIGIBILITY INFORMATION 18

SECTION D: APPLICATION SUBMISSION INFORMATION 20

SECTION E: APPLICATION REVIEW INFORMATION 35

SECTION F: FEDERAL AWARD ADMINISTRATION INFORMATION 39

SECTION G: FEDERAL AWARDING AGENCY CONTACT(S) 40

SECTION H: OTHER INFORMATION 41

ANNEX 1 - SUMMARY BUDGET TEMPLATE 42

ANNEX 2 - STANDARD PROVISIONS 42

ANNEX 3 – CERTIFICATIONS, ASSURANCES, REPRESENTATIONS, AND OTHER

STATEMENTS OF THE RECIPIENT 42

ANNEX 4 - SALARY RANGE from LOCAL COMPENSATION PLAN 42

SECTION A: PROGRAM DESCRIPTION

This funding opportunity is authorized under the Foreign Assistance Act (FAA) of 1961, as amended. The resulting award will be subject to 2 CFR 200 – Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, and USAID’s supplement, 2 CFR 700, as well as the additional requirements found in Section F.

PROGRAM DESCRIPTION

Private Sector Led Growth, Resilience and Response Activity

I) INTRODUCTION

USAID/North Macedonia’s vision for the successful transition from a donor-recipient relationship to a strategic partnership is grounded in having local actors take the lead in creating and financing the country’s development goals. Aiming to improve economic competitiveness, USAID/North Macedonia seeks to support the private sector and the government institutions to lead development interventions and to promote growth in productivity and reduce barriers for Euro-Atlantic market integration. Under the current Country Development Cooperation Strategy (CDCS), the Mission will leverage ongoing efforts and focus where USAID’s assistance will make a lasting impact, and by identifying new initiatives that will be based on co-creation and co-investment principles. USAID would like to foster partnerships with the public, private and civil sectors in a meaningful way, as well as for initiatives that have the community’s support.

One of the key elements of those partnerships will be commitment to localization and shifting more leadership, ownership, decision making, and implementation to the local organizations and institutions with the capability, connectedness, credibility, and readiness to drive change in the country.

Through the new Private Sector Led Growth, Resilience and Response Activity , USAID seeks to (1) increase the productivity of micro, small, and medium enterprises (MSMEs) by introducing modern technologies, practices, and tools (including digitalization, e-commerce), and creating demand driven professionals to implement these initiatives, (2) help MSMEs become better qualified to access different sources of financing, (3) strengthen the public-private dialogue (PPD) for successful policy framework implementation, and (4) improve country’s regional economic integration. The applicant should prioritize for technical assistance the sectors and/or sub-sectors mentioned in the Government of North Macedonia endorsed Smart Specialization and the Export strategies.1 Initiatives from other high-potential sectors will be considered based on a justification for their relevance to the Activity goals and expected results. The Private Sector Led Growth, Resilience and Response is a $5.5 million activity over a 5-year period.

This Activity is one of many ongoing and planned USAID-funded activities and resource partnerships that will increase economic competitiveness and regional economic integration. The Activity will work collaboratively with these programs, as well as with programs supporting USAID’s other two development objectives of the CDCS: increased youth contributions to society, and reduced corruption.

1 According to the government officials both documents will be adopted by the end of 2022.

II) BACKGROUND

Economic growth in 2021 underwent a new trend following the 2020 COVID-caused recession.

Private consumption picked up, exports and imports increased, with imports growing faster, thereby worsening the trade balance. On the productivity side, growth was reported in nearly all sectors with the fastest recovery occurring in trade, transport, tourism, manufacturing, and information and communications technology (ICT). However, in 2022 the economic trajectory turned. Europe’s energy crisis and the war in Ukraine constrained economic growth, while future unexpected events may further disrupt growth prospects and predictions. These events further amplify challenges among MSMEs in North Macedonia. Consequently, the low productivity of MSMEs, the lack of a skilled workforce, limited access to finance for micro and small enterprises, and the selective/incomplete implementation of the policy framework remain to be the main challenges that hinder the competitiveness of the Macedonian private sector.

Part of the low productivity of Macedonian MSMEs is due to limited investments in new technologies and in innovations2. The economy’s expenditure on research and innovation is low with only 0.4 percent of GDP compared to the average of 2.19 percent of GDP in EU countries, making the country fall into the ‘emerging innovator’ category, according to the 2021 European Innovation Scoreboard. Low investments in innovations and new technologies resulted in modest economic growth and weak integration of Macedonian companies into global value chains. Also, the key driver for growth as identified by the Government of North Macedonia, is the link between foreign direct investments (FDIs) and local companies is weak because local companies cannot meet the quality standards of products and services that FDIs require.

The objective of the latest government’s Operational Program 2020-2024 is to increase the competitiveness of the economy through increased domestic and foreign direct investments, and introduce innovations, including digitalization, in all sectors that will significantly increase the productivity, quality and added value of products and services.3 Additionally, the Ministry of Economy is working on developing the Smart Specialization strategy that will cover the agri-food (smart agriculture, food value added products); industry 4.0 (metal industry); ICT; and sustainable building materials; and the export strategy.

The Fund for Innovations and Technology Development (FITD) provides financial support to MSMEs to encourage the implementation of innovative solutions and processes, as well as technology transfer. The latest Government of North Macedonia initiative supported by the World Bank (WB) is the ongoing establishment of the MSME Investment Fund that will invest in start-ups in the green/digital sectors. The intent is to diversify the economy and exports towards more value-added products, improved productivity, creation of better paid jobs, and the introduction of non-bank financial products.

Lack of a skilled workforce due to a mismatch between demand and supply. Employers have difficulty filling job vacancies because they are unable to find workers with the appropriate

3 In October 2021, the Government adopted the Growth Acceleration Plan (GAP) for the period 2022-2026, which had been prepared by the Ministry of Finance in cooperation with other relevant Government departments aiming to support the recovery of the economy and the growth of GDP.

2 Empirical research demonstrates that the effectiveness of investments in new technologies depends on the ability of firms and individuals to use the technologies, therefore it is important to consider pairing financial investments with capacity building (technical and managerial skills).

https://openknowledge.worldbank.org/handle/10986/28341 technical, communication, management, and/or interpersonal skills required for the job. The missing collaboration link between educational institutions (vocational education [VETs] and faculties) and the private sector results in outdated curricula and the production of professionals that are unable to respond to labor market needs. This places a significant financial burden on companies in organizing on-the-job training and/or certification programs for their new employees, as well as on the job seekers who need to enroll in non-formal education programs (training providers) to obtain skills that the market demands.

There are a few positive examples of partnerships between the private sector, mostly FDI and VETs/faculties that have resulted in targeted training based on the needs of the companies, and in investments in new labs in the schools. The technical schools/faculties are more progressive in this regard, mostly because of the sectors where FDI operates. Additionally, the accelerators, hubs, private academies, and the chambers of commerce offer variations of training on a commercial basis. The results of these partnerships have been three-fold: job creation, workforce skills improvement, and teachers’ professional development.

Access to Finance (AtF) is difficult for the micro, small, and start-up firms in a financial environment that overemphasizes bank-financing in North Macedonia. The most important factors for success in obtaining loans are good collateral and solid financial accounts. Banks lend only to MSMEs with at least three years of good business and financial records. Usually, they require a hard collateral because of deficiencies in the law on contracts and problematic enforcement. Savings houses and microfinance institutions serve the micro firms, but their reach is limited. Factoring and leasing are not yet sufficiently developed, partially due to the lack of an appropriate legal framework and partially due to the lack of awareness among the firms for these services. Business angels and investment funds are present in the financial market, but their full capacity is yet to be achieved since the investment readiness and the knowledge on how to apply for alternative financial instruments - and most of all to equity, quasi-equity and venture capital instruments - is still low. The Development Bank of North Macedonia (DBNM) provides lending to SMEs (export credit financing, working capital, microfinancing); credit insurance (domestic accounts receivable, export accounts receivable); factoring; and custom guarantees.

In principle, North Macedonia’s policy framework is EU compliant, but implementation is selective and incomplete. The public-private dialogue (PPD) is not yet in full-force, despite many attempts from donors to support an all-inclusive, evidence-based dialogue. The USAID-supported PPD dialogue platform was commended by all four chambers of commerce, the founders, as a tool that brings the private and the public sectors closer together.

In the past couple of years, it became evident that the Western Balkan countries have recognized the need for regional integration to enhance the region’s competitiveness in the context of EU accession and globalization. There are several ongoing regional initiatives aiming to improve regional economic integration and cooperation such as Berlin Process and Open Balkan. The framework exists for increased regional integration and some work has been done to advance the efforts; however challenges remain, such as political differences among the WB6 and a lack of coordinated efforts to improve the quality of infrastructure, misaligned policies and trade barriers.

III) STRATEGIC FOUNDATION AND DEVELOPMENT HYPOTHESIS

The goals of the Private Sector Led Growth, Resilience and Response Activity is to “increase MSMEs productivity, create demand driven professionals, improve access to finance for micro, small and start-up firms and facilitate investments for MSMEs, strengthen the existing public-private dialogue (PPD) mechanisms and improve country’s regional economic integration prospects''. For this purpose, USAID/North Macedonia seeks to engage in resource partnerships with the private sector for the development of joint interventions and enterprise-driven solutions.

A resource partner4 is an entity able to identify, create/co-create, invest/co-invest, and lead a joint intervention and/or enterprise-driven solution together with the implementing partner. The main objective of the Activities to increase and deepen the collaboration with private sector resource partners (business associations, chambers of commerce, companies, accelerators, centers of excellence, incubators, technological parks, investment funds, business angels, commercial banks, non-bank financial institutions, training centers, academic institutions, and similar), while leveraging public sector leadership on the initiatives that facilitate investment and stimulate mobilization of the country’s public resources, and collaborating with the civil sector on promoting effective, transparent, and accountable expenditure of those resources.

This Activity is based on the understanding that IF MSMEs introduce new technologies and innovations (including digitalization, e-commerce); education institutions, training centers, centers of excellence, and business support organizations collaborate with the private sector to develop modern training and certification programs; companies improve their financial and operational management; businesses elevate their interaction with the government through an evidence-based requests for policy reform; and the barriers for interregional trade and cooperation are eased and the value chain competitiveness strengthened through innovative and targeted solutions, THEN MSMEs will improve their productivity; the labor force will meet the private sector demands; companies will access finance and attract new investments; the regulatory framework will support the businesses’ growth and the country’s regional economic integration will improve.

The Activity will help achieve the CDCS Development Objective 1 (DO1): Economic Competitiveness Improved, Intermediate Results 1.1: Productivity increased and 1.2: Integration in Euro-Atlantic regional markets expanded, and it will directly contribute to the following indicators from the mission’s Planning and Monitoring Plan (PMP)5:

- # of private sector firms that have improved management practices or technologies as a result of USG assistance (F-EG5.2-2).

- % of participants who are youth in USG-assisted programs designed to increase access to productive economic resources (F).

5 Note: Once the activities are developed the indicators from the mission’s Planning and Monitoring Plan (PMP) may be revised to better reflect the impact of the activities on the ground.

4 Resource partnerships are defined as formal agreements or collaborations with targeted stakeholders from the private sector, the host government, and/or civil society, employing USAID and local actors’ investments, which can include financial, human capital, and/or other types of contributions. These partnerships are intended to ensure that local partners are in the lead in defining and advancing solutions for development.

- # of private sector enterprises with improved participation in the local economy as a result of USG assistance.

- % change in net exports in targeted industries

IV) PROGRAM OBJECTIVES

Objective 1. Increased productivity of MSMEs

The Activity will cooperate with resource partners to introduce modern technologies/practices/tools (including digitalization, e-commerce); develop support programs for MSMEs interested in becoming FDI suppliers; improve the investment readiness of MSMEs (sales, marketing expansion, product development, management skills); and to create a demand driven workforce capable of implementing these interventions.

Potential resource partners: Accelerators, hubs, centers of excellence, technological parks, chambers of commerce, companies, VETs, universities, and others as applicable.

Expected Results:

- Improved MSMEs capacity to produce quality and value-added products and services.

- Improved MSMEs investment readiness.

- Increased sales as a result of technical assistance at targeted MSMEs.

- Improved skills of the workforce to respond to market demands.

Illustrative Indicators:

- # of MSMEs that maintained existing and/or established new contracts with FDIs.

- # of new technologies/practices/tools introduced in supported MSMEs.

- # of MSMEs that improved their investment readiness capabilities.

- Increased value of sales in targeted MSMEs.

- # of jobs retained and/or created as a result of market driven training and certification programs.

- # of new training and certification programs developed and/or introduced as a result of partnerships between private sector and education institutions, training centers, centers of excellence and business support organizations.

Objective 2. Improved MSMEs financial management capacity to access finance

The Activity will cooperate with resource partners to increase the use of the available commercial and alternative sources of financing. The technical assistance under this objective, in part, is closely related to the investment readiness support efforts in Objective 1.

Resource partners: NBFIs, Development Bank of North Macedonia, commercial6 banks, FITD, USAID/Catalyze.

Expected Results:

- Strengthened MSME financial management that leads to easier access to finance and/or investments.

- Raised awareness of the NBFI products among MSMEs.

Illustrative Indicators:

- Value of loans obtained from the banks and/or non-bank financial institutions.

- Value of new investments (equity, quasi-equity, venture capital) in supported MSMEs.

- # of modern financial practices introduced as a result of USG assistance.

Objective 3. Strengthened public-private dialogue (PPD)

The Activity will provide targeted support to MSMEs on advocacy and lobbying through the PPD platform that was established by the Economic Chamber of Commerce of North Macedonia, the MASIT-ICT Chamber of Commerce, Economic Chamber of North-West Macedonia, and the Macedonian Chambers of Commerce, and supported by USAID.

Resource partners: Economic Chamber of Commerce of North Macedonia, MASIT-ICT Chamber of Commerce, Economic Chamber of North-West Macedonia, and Macedonian Chambers of Commerce through the PPD platform.

Expected Results:

- Strengthened collaboration between the public and the private sectors.

- Improved quality of private sector requests for policy reforms.

Illustrative Indicators:

- # of policy reforms (law, sub-law, procedure, and other) introduced and/or implemented as a result of USG assistance.

Objective 4. Improved regional economic integration7

7 NOTE: USAID has partnered with the Economic Chamber of North Macedonia (ECNM) for implementation of activities that are in line with this objective. More specifically, this partnership will aim to improve regional and international business cooperation of Macedonian companies with the Western Balkan and EU markets and to increase the competitiveness of export oriented companies and their integration into the regional and global value chains. Applicants will need to propose complementary activities that will not overlap with or contradict the programmatic activities that will be implemented by the ECNM.

6 Note, there exist (digital) tools that significantly lower the financial education skills threshold (automated cost accounting, dashboards, etc.) according to user-friendly technology interfaces.

https://www.mchamber.mk/

Through a partnership with a local organization, the Activity will foster regional economic integration of North Macedonia’s private sector through innovative8 market-driven solutions. The work under this objective will address existing trade barriers and limitations and will aim to establish a conducive environment for regional trade. The efforts may include strengthened capacities of the institutions, bodies, and business support organizations to improve services and solve trade-related issues. In addition, this effort may target improved compliance with the World Trade Organization Trade Facilitation Agreement, Central European Free Trade Agreement and overall compliance of the private sector and government institutions with EU standards, particularly related to the EU Green Deal and proposed tax on carbon emissions. In addition, to build up competitive value chains that can increase productivity and expand markets, this activity will support the ability of the private sector to improve their capacity for digitalization/modernization, for green transitioning, for promotion of domestic potential to foreign investors and identification of the regional market opportunities. Efforts may include improved knowledge on targeted markets in the region, for example through assistance in standardization and required certification as well as eased access to adequate finance.

Resource partners: Relevant government institutions, business support organizations, consulting companies, marketing agencies, companies and other organizations on a national or regional level that can contribute toward the achievement of results.

Expected Results:

- Eased trade barriers9

- Strengthen value chain competitiveness10

Illustrative Indicators:

- Increased value of export in targeted MSMEs.

- % of intra-regional exports.

10 The focus areas may include but are not limited to: Improved companies’ capacities for digitalization; Increased investments in new products, innovative technologies, green transition (particularly related to the EU Green Deal and WB6 Green Agenda), waste management and recycling, skilled workforce; Improved access to adequate finance that aims to support value chain competitiveness; Promoted climate-resilient value chains; Improved knowledge on targeted markets/consumers in the region; Strengthened regional marketing strategies and the abilities of the companies to identify regional market opportunities; Improved operations and productivity within the export oriented value chains; Improved standardization and required certification of businesses; Improved capacity to promote the potential of the value chains to foreign investors; Improved networking and linkages with the buyers from the region.

9 The focus areas may include but are not limited to: Addressed trade barriers and limitations (e.g., non-tariff/parafiscal fees) and improved ease of doing regional business (e.g., make it cheaper, easier and faster); EU economic compliant private sector and government institutions and more informed and responsive export-oriented companies on all regional and EU trade aspects (particularly related to the EU Green Deal and proposed trade tax on carbon emissions); Improved environment for regional e-commerce (e.g., improved intraregional payments, harmonization of postal operations, etc.); Supported implementation of the draft national smart specialization strategy that will set priorities to build competitive advantage; Strengthened institutions that are involved in realizing the CRM Action Plan; Improved compliance with the World Trade Organization Trade Facilitation Agreement and Central European Free Trade Agreement

8 For the purposes of this activity innovation can be technology, idea, process, policy, tool, service, new approach, etc.

https://api.pks.rs/storage/assets/Common%20Regional%20Market%20Action%20Plan%202021-2024.pdf

- # of improved policies, reforms, practices or services for trade facilitation.

Partnership fund. One million USD ($1 million) from the total estimated budget will be dedicated to partially funding the joint interventions and/or enterprise-driven solutions under all four objectives. This will be contingent on the private sector and other stakeholder contributions.

The successful applicant will be responsible for developing a plan that describes the type of entities that qualify for funding, the type of interventions/enterprise-driven solutions proposed, the eligibility criteria, the contribution percentages, and the overall management of the fund in the first three months of implementation. The Agreement Officer will approve the plan.

Resource partners. In July 2021, USAID signed a Memorandum of Understanding (MOU) with the Fund for Innovation and Technological Development, FITD (https://fitr.mk/) to increase the productivity of MSMEs by supporting the investment in technology and new product development; incentivizing cross-sector collaboration for improved MSME productivity through automation and digitalization; advancing access to finance for startups; developing mentorship programs for MSMEs to broaden and sustain their businesses; promoting new models of financing through various initiatives; and continue supporting Startup Macedonia in its effort to sustain and expand.

In August 2021, USAID signed an MOU with the fx3x company (https://fx3x.com) to jointly work on providing attractive training and employment opportunities for youth, and on improving the employability skills of youth through increased investments in human resources and technology. Some of the development initiatives that could take place include improving youth competencies for jobs in 3D animation, visual effects, and production-related careers;

strengthening collaboration between the education system and the private sector to improve the digital skills of students; providing on the job training for requalification and specialization of youth and adults to equip them for better jobs, and targeted advanced training for digital and information and technology careers; and advocating for policy changes to improve the legislative environment for the private sector, including the digital media industry.

Additionally, USAID has conducted market research to identify other potential resource partners to the Activity. USAID will share the findings from the market research and the names of the entities once the activity is awarded. The successful applicant is encouraged to engage in partnerships with the entities that were identified and to use this research to identify others.

V) GUIDING PRINCIPLES

Private Sector Led Growth, Resilience and Response Activity must adhere to the following principles:

1. The Activity must partner with the private sector that will take the lead of the joint interventions and/or enterprise-driven solutions that will be based on the co-creation and co-investing principles. The overall activity must align with the USAID Private Sector Engagement Policy to the maximum extent possible.

2. The Activity must collaborate with the relevant government institutions that play a critical role in promoting growth in productivity and reducing barriers to expansion into Euro-Atlantic markets.

https://fitr.mk/ https://fx3x.com 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

3. The Activity must be results-oriented and foster effective partnerships that will last beyond USAID’s engagement. Sustainability of results and continuation of effective interventions are key.

4. The Activity must take into the consideration the new Agency Climate Strategy and help support global goals of reducing negative climate impacts and supporting environmental protection.

5. The Activity must incorporate interventions that can address increasing economic opportunities for youth. (Please see section: XI - Synergies with other USAID-funded activities).

6. The Activity must consider how activities reduce corrupt practices and mitigate vulnerabilities to corruption. (Please see section: XI - Synergies with other USAID-funded activities).

7. The Activity must work within local systems towards sustainable results that are locally owned.

VI. CORE TEAM, KEY PERSONNEL QUALIFICATIONS AND DUTIES

This activity includes the following required key personnel positions: Chief of Party (CoP), Deputy Chief of Party (DCoP), and component leads.

(a) The Chief of Party (CoP) is responsible for the overall management, oversight, implementation, and reporting in accordance with the award and approved work plans. S/he must possess the following experience and qualifications, verifiable from his/her Curriculum Vitae (CV) (maximum 3 pages).

● S/he must have experience in managing activities focusing on private sector development, private sector engagement, workforce development, and/or business enabling environment.

● S/he must have at least seven years of experience successfully leading complex projects and effectively managing a team of senior subject matter specialists.

● S/he must also have a proven ability to coordinate and collaborate with a broad and diverse set of stakeholders while maintaining effective working relationships with government officials, public agencies, companies, CSOs, members of academia, and other development partners.

The Chief of Party can either be an expatriate or a local hire. However, if the Chief of Party is an expatriate, s/he must mentor a locally hired Deputy Chief of Party (DCoP)/Component Lead from the start of the project to take over full management responsibility from the expatriate CoP by the end of the second year of the activity.

(b) The applicant has to design one of the component lead positions to serve also as the Deputy Chief of Party and to provide extensive support and leadership for the operational and administrative implementation of the Activity. The Deputy Chief of Party must have extensive previous project experience and must have in depth familiarity with donor requirements as well as local legislation and regulations. The Deputy Chief of Party will also be responsible for the duties of the Chief of Party when necessary, and thus must have project management experience and the ability to collaborate with other donors and projects, and the ability to https://www.usaid.gov/sites/default/files/documents/USAID-Climate-Strategy-2022-2030.pdf integrate different project components under an overarching objective. To be successful, the DCoP must also have the ability to communicate effectively on the technical aspects of implementation among multiple parties on multiple different levels.

(c) In the event that the applicant selects an expat Chief of Party, then the Deputy Chief of Party will take over leadership at the beginning of year three. At this time of transition, the project must hire a replacement component lead to manage thematic responsibilities that the DCoP is transitioning out of.

The applicant should maintain a non-exclusivity and should not provide CVs for the DCoP and the Component Leads at the application phase. The applicant, though, will have to explain the skills, knowledge and experience each component lead will possess. The DCoP/Component Leads should be seasoned subject matter experts who have adequate experience and qualifications to successfully carry out the work and achieve the expected results listed in the RFA under the three Activity objectives. Once the activity is awarded, the applicant will identify the component leads who will be subject to approval by the Agreement Officer’s Representative (AOR).

VII. LOCAL PARTNER FOR OBJECTIVE 4

The Activity applicant must identify a local partner under Objective 4: Improved Regional Economic Integration.

The local partner will be responsible for management of this component and will incentivize local actors to propose authentic and innovative ideas and market-based solutions for this development challenge; be willing to co-create in a collaborative process and be flexible to partner with relevant institutions to achieve results.

VIII. MONITORING, EVALUATION, AND LEARNING (MEL)

The Activity will establish in the first 90 days a project performance monitoring, evaluation and learning plan (MELP) that incorporates an Adaptive Management approach. The MELP will outline the systematic process of collecting and analyzing performance data and other information to track progress toward planned results and to proactively learn and adapt for future interventions. The MELP will be based on a baseline data that is determined in the first year. The Adaptive Management approach will promote collaborative learning and exchanges with development partners, beneficiaries, and stakeholders; coordinate efforts to increase synergies among the Activity development partners, and with the partners from the other USAID-funded activities; and it will support sharing lessons learned and best practices of partnering with the private sector.

IX. GENDER CONSIDERATIONS

In line with the USAID Gender Equality and Women’s Empowerment Policy (2020), which aims to equally empower women like men to secure better lives for themselves, their families, their communities, and their countries, the Activity will utilize a gender-sensitive approach throughout its implementation. The activity will ensure that the role of women is recognized and enhanced in its interventions, such as partnering with private businesses owned and led by women, and women participating in workforce skills training and programs. When gender gaps arise, they will be addressed by ensuring that both women and men benefit from this Activity. PSLGRRA will be inclusive and represent the interests of both women and men.

X. ENVIRONMENTAL SUSTAINABILITY AND CLIMATE RESILIENCE

CONSIDERATIONS

Per ADS Chapter 204, all USAID activities are required to consider environmental sustainability and climate resilience issues in its design. An Initial Environmental Examination (IEE) including a climate risk management section will be prepared for this activity. The Activity will support green and environmentally friendly technologies, which will serve as pilot activities for promoting climate resilience, energy saving, cleaner production, and more efficient use of natural resources in targeted sectors and/or sub-sectors.

XI. SYNERGIES WITH OTHER USAID-FUNDED ACTIVITIES

Under the current strategy USAID is tackling key national needs for: (1) greater economic growth through improved competitiveness, (2) increased youth engagement to lower unemployment and disenfranchisement, which is resulting in dramatic levels of emigration and inertia, and (3) reduced corruption that is eroding faith in public institutions and the culture of accountability.

Applicants should demonstrate an understanding of these USAID/North Macedonia priorities and how they have become a barrier to entry for investment in the private sector.

Corruption in North Macedonia is caused by a combination of factors that include weak political will, lack of rule of law, impunity, limited independence of public institutions, limited oversight within institutions and public apathy and acceptance of corruption as part of the system. Along with the lack of meritocracy, heavy politicization, poor public services and pollution, corruption is on the top of the list for reasons for the youth migration. When corruption is embedded in the society, there are larger outflows of highly educated young people and qualified workers, resulting in a brain drain and high levels of migration in general, which lower returns to human capital and slows economic growth. In addition, besides growth, corruption also affects a country's overall attractiveness for investment and cooperation.

The activities under the three DOs are designed to complement and to be mutually reinforcing to achieve better impact. USAID expects close collaboration and identification of synergies between the Activity and other USAID-funded activities, especially the Private Sector Regional Integration Support Activity11, Youth Actively Create Opportunities (YACO)12, and development initiatives focused on the fight against corruption13. The YACO activity will work to increase youth positive contributions to society and collective leadership through creating partnerships in

13 See Partnership Against Corruption (PAC), Request for Proposals (RFP), number 72016522R00003, published on SAM.gov, and Citizens Against Corruption (CAC) Activity Request for Applications (RFA), number 72016522RFA00009, published on Grants.gov.

12 See Youth Actively Create Opportunities (YACO) Activity Request for Applications (RFA), number 72016522RFA00006, published on Grants.gov.

11 NOTE: USAID has partnered with the Economic Chamber of North Macedonia to improve regional and international business cooperation of the Macedonian companies with the Western Balkan and EU markets and to increase the competitiveness of export oriented companies and their integration into the regional and global value chains. Applicants will need to propose complementary activities that will not overlap with or contradict the programmatic activities that will be implemented by the ECNM.

http://sam.gov/ http://sam.gov/ http://grants.gov/ http://grants.gov/ support of economic opportunities attractive to youth; strengthen youths’ competencies for jobs, progressive careers and civic life; and promote values and experiences that underpin self-reliance such as responsibility, independence, lawfulness, strong ethics, civic engagement, and striving for accomplishment. USAID’s assistance to fight against corruption will focus on strengthening the national-level systems to reduce institutional vulnerabilities to corruption by taking action to address corruption when it occurs, and on increasing the citizen, civil society, media and private sector knowledge, engagement and collaboration in the fight against corruption so they can individually and jointly take action and exert pressure for improved government responsiveness and effectiveness in addressing corruption on national and local levels.

XII. DEVELOPMENT PARTNER COORDINATION

To avoid overlaps, to learn from their experiences and to achieve better outcomes, the Activity will establish formal collaboration channels with respective donors that have common development objectives and that have identified similar development problem areas. This primarily refers to the Swiss Agency for Development and Cooperation that among other things works on sustainable economic development in North Macedonia.

SECTION B: FEDERAL AWARD INFORMATION

1. Estimate of Funds Available and Number of Awards Contemplated

USAID intends to award one (1) Cooperative Agreement award pursuant to this notice of funding opportunity. Subject to funding availability and at the discretion of the Agency, USAID intends to provide $5,500,000 in total USAID funding over a five-year period for this program.

This to the extent the applicant’s (full) technical and cost application confirms strict adherence to the cost principles and proposes impactful activities and interventions with associated fair, reasonable, and realistic costs.

2. Start Date and Period of Performance for Federal Awards

The anticipated period of performance is sixty (60) months. The estimated start date will be at or around December/January 2022.

3. Substantial Involvement

USAID shall be substantially involved during the period of the Agreement as set forth below:

a. Approval of Recipient Implementation Plans

b. Approval of specified key personnel

c. Agency and Recipient Collaboration or Joint Participation

d. Approval of Subawards

e. Agency Authority to Immediately Halt a Construction Activity

4. Authorized Geographic Code

The geographic code for the procurement of commodities and services under this program is

937. Geographic Code 937 is defined as the United States, the cooperating/recipient country, and developing countries other than advanced developing countries, and excluding prohibited sources.

5. Nature of the Relationship between USAID and the Recipient

The principal purpose of the relationship with the Recipient and under the subject program is to transfer funds to accomplish a public purpose of support or stimulation of the Private Sector Led Growth, Resilience and Response Activity, which is authorized by Federal statute. The successful Recipient will be responsible for ensuring the achievement of the program objectives and the efficient and effective administration of the award through the application of sound management practices. The Recipient will assume responsibility for administering Federal funds in a manner consistent with underlying agreements, program objectives, and the terms and conditions of the Federal award.

6. Selection of Instrument

USAID/North Macedonia determined that there are sufficient sources that can meet the agency's needs. The Mission assessed that the key element in deciding on an assistance instrument was flexibility and innovation that is needed in the implementing approach in order for Private Sector Led Growth, Resilience and Response Activity to fulfill its goals. As a result, USAID/North Macedonia determined that the assistance instrument - cooperative agreement - best fits the Mission’s needs under EG.5 Program Area - Private Sector Productivity, as it will provide an opportunity to improve policies, laws, regulations, and administrative practices affecting the private sector’s ability to compete nationally and internationally.

SECTION C: ELIGIBILITY INFORMATION

1. Eligible Applicants

Eligibility for this NOFO is not restricted.

USAID is interested in working with organizations with the potential to successfully implement the project in North Macedonia to support local efforts to address the challenges discussed above.

We are encouraging coalitions and partnerships, as well as applications that aim to leverage USAID resources with other funding sources. While strong coalitions and partnerships are encouraged, any assistance agreement awarded under this funding opportunity will be issued to a lead prime implementing partner.

Local organizations, as defined below, are also eligible for the award.

When determining if an entity is a “local organization” for the purposes of this RFA, USAID will consider:

● Whether the entity is legally organized under the laws of North Macedonia.

● Whether the entity has its principal place of business or operations in North Macedonia.

● Whether the entity is majority owned and controlled by individuals who are citizens or lawful permanent residents of North Macedonia.

● Whether the entity is managed by a governing body, the majority of whom are citizens or lawful permanent residents of North Macedonia.

Entities which do not meet the above-listed “local organization” criteria will be considered ineligible to participate in the further award process.

While not an exhaustive list and provided for illustrative purposes only, the following types of non-U.S. organizations are encouraged to participate:

● Business associations and chambers

● Business support organizations

● Non-governmental organizations

● Private businesses

● Consulting companies

● Faith-based organizations

● Foundations

● Trade associations

USAID also welcomes applications from organizations that have not previously received financial assistance from USAID but will not prefer one type of organization over another.

Faith-based organizations are eligible to apply for federal financial assistance on the same basis as any other organization and are subject to the protections and requirements of Federal law.

Please note that public/government organizations can contribute to this Activity, but are not able to apply for, or be party to, the award as either a prime or sub-awardee. Programs may not be partisan or political in nature.

USAID will not accept applications from individuals.

Public International Organizations are not eligible to apply for funding under this program as a prime applicant, and may not serve as a prime implementing partner.

All applicants must be legally recognized organizational entities under applicable law.

To be eligible for award, the applicant must provide all information as required in this NOFO and meet eligibility standards in Section C of this NOFO. This funding opportunity is posted on www.grants.gov, and may be amended. It is the responsibility of the applicant to regularly check the website to ensure they have the latest information pertaining to this notice of funding opportunity and to ensure that the NOFO has been received from the internet in its entirety.

USAID bears no responsibility for data errors resulting from transmission or conversion process.

If you have difficulty registering on www.grants.gov or accessing the NOFO, please contact the Grants.gov Helpdesk at 1-800-518-4726 or via email at support@grants.gov for technical assistance.

2. Cost Sharing or Matching

There is no cost share requirement under this notice of funding opportunity. However, cost share can be provided on a voluntary basis, but will not be a factor in determining who will be receiving the award.

3. Other

a) An applicant may submit only one application as a prime under this notice of funding opportunity.

b) Applicants must have established financial management, monitoring and evaluation processes, internal control systems, and policies and procedures that comply with established U.S. Government standards, laws, and regulations. The successful applicant(s) may be subject to a responsibility determination assessment (Pre-award Survey) by the Agreement Officer. The applicant’s accounting and procurement systems, audit issues, and management capability may be reviewed as part of this process. If notified by USAID that a pre-award survey is necessary, applicants must prepare in advance the required information and documents. Prospective NGO applicants should refer to ADS Chapter 303.3.9.1 for additional information about pre-award surveys. A pre-award survey does not commit USAID to make an award to any entity.

http://www.grants.gov mailto:support@grants.gov

SECTION D: APPLICATION SUBMISSION INFORMATION

1. Agency Point of Contact

Title Foreign Service Agreement Officer Mail Address: USAID/Kosovo’s Regional Office of Acquisition & Assistance

U.S. Agency for International Development Embassy of the United States of America Rr. 4 Korriku Nr. 25 Arberia, Pristina, Kosovo 10000

2. Questions and Answers

Questions regarding this NOFO should be submitted by e-mail, in English language, to Rade Knezevic at rknezevic@usaid.gov and…