Pacific American Fund JA (esigned).pdf

JUSTIFICATION AND APPROVAL (J&A) FOR THE PACIFIC AMERICAN FUND

TO: Béatrice M. Condé, Supervisory Contracting Officer, USAID/Philippines, Pacific Islands and Mongolia

CC: Deborah Broderick, Agency Competition Advocate

FROM: John Edgar, Environment Office Chief, USAID/Philippines, Pacific Islands and

Mongolia

DATE: May 4, 2020

RE: The Pacific American Fund activity

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. 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.

The USAID/Philippines, Pacific Islands and Mongolia mission requests approval of a new contract through other than full and open competition to Social Solutions International, Inc to implement the Pacific American Fund activity. The activity will support COVID-19 recovery in a multi-sectoral approach assisting the region’s most vulnerable communities while also building the capacity of recipients and promoting the sustainability of organizations.

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

This activity will be USAID’s primary mechanism to respond to COVID-19 second order impacts in the Pacific and will support COVID-19 recovery by assisting the region’s most vulnerable communities and preventing development backsliding. USAID has an urgent need to mobilize technical, financial, and other resources rapidly to minimize the impact on the health of populations of which have limited capacity to respond quickly during an Outbreak of a Contagious Infectious Disease.

COVID-19 has exacerbated existing economic and development challenges related to climate change and disaster vulnerability, curtailed economic opportunities, limited access to quality health care and education, and created potential democratic governance challenges.

This activity will aid among other things in COVID recovery by supporting civil society organizations with sub-grants to address communities' most pressing development priorities.

Support will be a multi-sectoral approach and will include sub-grants related to a) climate change and disaster risk reduction; b) natural resource governance; c) market-based enterprise development; d) access to quality health care and education; and e) democratic governance.

Potential sub-grants may support livelihoods affected by COVID, bolster disaster response systems burdened by COVID and other shocks and support for health and educational systems strained by COVID.

To effectively respond to this outbreak and other related issues, the Contractor must have an already established network within the region and must be able to immediately begin implementation. The total estimated cost for this activity is $35 million of which 60% or $21 million will be allocated for sub-grants to Pacific Island1 civil society organizations to respond to the impacts of COVID within their communities.

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 use of the authority cited.

The impacts of COVID-19 are dramatic and severe with negative projected growth rates in many countries, collapse of the region’s tourism industry, dramatically reduced labor remittances from overseas workers and reduced oil prices that will constrain the fiscal capacity of the region’s largest and most populous country, Papua New Guinea. USAID/Philippines has received resources from the COVID ESF Supplemental to address second order impacts of COVID, which will be programmed through the Pacific American Fund contract. Without the use of the EPP authority, a full and open competition could take up to one year. This timeline would severely impact USAID’s COVID related assistance to the region while reducing USG’s overall effectiveness.

1 The twelve Pacific Island partner countries covered by USAID assistance: Palau, Federated States of Micronesia, Marshall Islands, Kiribati, Nauru, Fiji, Tuvalu, Tonga, Samoa, Papua New Guinea, Solomon Islands and Vanuatu.

The USAID/Philippines mission is anticipating a contract to Social Solutions International, Inc, the managing member of an existing joint venture, Partners for Global Research and Development (PGRD) that implements USAID/Philippines’ Pacific American Climate Fund (PACAM) activity, which will conclude in September 2020. The PACAM activity supported 32 civil society organizations with over $11 million of sub-grants, while also strengthening organizational capacity of organizations. Under Social Solutions International, Inc’s management, PGRD consistently received strong Contractor Performance Assessment Reporting System (CPARS) ratings from Contracting Officer Representatives including the most recent submission in October 2019, which included one excellent, two very good and one satisfactory rating across evaluation areas.

Many requirements of the Pacific American Fund activity are similar to PACAM, and the proposed contractor has demonstrated strong past performance and unique qualifications.

Social Solutions International, Inc has an established network throughout the Pacific Island partner countries, holds requisite business registrations and existing staffed offices which can quickly transition to the Pacific American Fund activity. In addition, they have a robust roster of consultants based in the Pacific with expertise in climate change, agriculture, livelihoods, education and health, whose technical expertise is required by the activity.

The Pacific operating environment is challenging and unique therefore past experience is crucial for success. The vast region has limited transportation options, which requires strong partnerships with local organizations and utilization of local expertise to monitor and manage activities. Communities can be wary of outsiders so trusted local connections are essential. The proposed contractor has past experience working with local organizations in all twelve USAID Partner Countries. Social Solutions International, Inc has also previously operated offices in multiple Pacific countries and maintains relationships with potential staff members and consultants.

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

Prior to the signing of the EPP for Responding to Outbreaks of Contagious Infectious Diseases on March 24, 2020, by the USAID Administrator, USAID/Philippines completed a Request for Information (RFI) for the Pacific American Fund. This RFI, posted on Beta.Sam.gov and Grants.gov, closed on February 28, 2020 and received interest and input from potential partners.

The Mission received eleven responses including submissions from contractors, US NGOs and local organizations in the Pacific Region. When analyzing potential partners for the Pacific American Fund activity and deciding on options for EPP, the Mission referred to the RFI submissions.

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

The USAID/Philippines technical team in collaboration with the Mission’s Regional Financial Service Center completed a detailed Independent Government Cost Estimate (IGCE) for the

Pacific American Fund activity. The IGCE was informed by the PACAM contract as well as financial information from existing USAID Pacific Island activities. Anticipated cost to the Government will be determined to be fair and reasonable based on cost analysis and cost realism review of the offeror’s proposed costs.

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.

USAID/Philippines’ market research was informed by the RFI, which is described in section “e.”

The Mission also conducted a market research call with the proposed contractor to gather additional information on their capacities and background. Given the urgency of COVID related needs, the Mission proposes utilization of the EPP authority to negotiate and award the Pacific American Fund activity. A full and open competition would delay assistance and timely response to address urgent COVID-19 second order impacts in the Pacific region. The proposed contractor has the necessary experience to accomplish the breadth and scope of work required and has demonstrated strong past performance. Through the market research, and in reviewing multiple expressions of interests, it was determined that the proposed contractor was best suited for mobilizing quickly and successfully implementing this award.

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

Eleven organizations responded to the RFI 72088720-PACIFIC/RFI-00002. At the time, USAID/Philippines had not yet completed a Selection of Instrument Memo and the Mission considered both assistance and acquisition options.

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.

To urgently respond to the COVID-19 impacts in the Pacific, USAID proposes the utilization of the EPP authority for the selection of the Pacific American Fund contractor. The award will support key USAID A&A Strategy guiding principles including diversifying USAID’s partner base through stronger partnering with locally established organizations. The activity will have a $21 million grant facility to support sub-grants to at least 40 organizations, many of whom will be first time recipients of USAID funding. The Pacific American Fund will strengthen their organization capacity which will increase partnership opportunities with USAID in the future.

RECOMMENDATION

Authorization of the use of other than full-and-open competition is necessary, given the urgent need for USAID to mobilize technical, financial, and other resources rapidly to minimize the impact on the health of populations and economies in Pacific Island partner countries that have limited capacity to respond quickly to save lives during an Outbreak of a Contagious Infectious Disease. Expeditiously providing funds in a responsive manner as possible takes priority over other options that would delay such funding, especially where delay or inflexibility could compromise USAID's ability to provide life-saving support to those affected by an Outbreak of a Contagious Infectious Disease.

It is recommended 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 by USAID Administrator Mark A. Green. 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.

___John Edgar /s/_______________ _5/8/2020____________ Technical Officer Date

APPROVAL:

Supervisory Contracting Officer Date:

CLEARANCE:

Maram Talaat/s/ 5/8/20 RLO Date:

Beatrice Conde Digitally signed by Beatrice Conde Date: 2020.05.22 09:57:51 -04'00'