DFC CPP Implementation and Training draft SOW 05.06.24.docx

Statement of Work (SOW) U.S. International Development Finance Corporation (DFC) Project Title: DFC Client Protection Procedures Implementation & Training

1.0 GENERAL INFORMATION

The U.S. International Development Finance Corporation (DFC) is financing solutions to the most critical challenges facing the developing world today. Working with businesses, we mobilize private capital to invest in projects that create jobs and opportunities in emerging markets, including building critical infrastructure, expanding access to telecommunications, and providing small business financing for women entrepreneurs. Launched in 2019, DFC helps to advance America's foreign policy by partnering with projects that create economic stability, protect sovereignty, and ensure transparency. DFC investments adhere to high U.S. business standards and respect the environment, human rights, and worker rights.

2.0 BACKGROUND

As the U.S. Government's development finance agency, the United States International Development Finance Corporation (DFC) mobilizes U.S. private capital to help solve critical development challenges while advancing U.S. foreign policy interests. DFC works with the U.S. private sector to help gain footholds in emerging markets, catalyzing revenues, jobs, and growth opportunities at home and abroad. DFC achieves its mission by providing investors with financing, loan guarantees, political risk insurance, support for private equity investment funds, and direct equity investments.

Client Protection Principles (CPPs) are the minimum standards that end-clients should expect to receive when doing business with a Financial Service Provider (FSP) or embedded finance companies that are providing products to consumers on credit (e.g., off-grid solar companies). The CPPs were originally developed by the Center for Financial Inclusion (CFI) Smart Campaign, an independent thinktank at the time, housed at ACCION. In 2020, the Smart Campaign ended. While CFI will maintain the CPPs, the development of the subsequent standards and their implementation (including the certification program and community of experts) was transferred to long-time partners Social Performance Task Force (SPTF) and CERISE.

Although the CPPs were initially developed for the microfinance industry, the CPPs can be applied to all banking and non-banking financial institutions and companies providing finance to natural persons and/or micro-enterprises, including (but not limited to) banking and non-banking financial institutions providing microfinance, consumer finance, micro-leasing, digital credit, and companies selling on credit (e.g., financial intermediary in the off-grid solar sector). DFC has examined CPP best practices and incorporated an internal strategy designed to assess client protection risk, provide a tailored analysis for each financial service provider to determine alignment to best CPP practices, and inform investment committee decisions.

3.0 SCOPE

DFC requires a contractor to recommend and implement a comprehensive plan to further incorporate appropriate CPP strategy into the investment process from origination through underwriting, informed by benchmarking against other development finance institutions. The contractor shall also subsequently provide various virtual and hybrid interactive training courses to educate responsible parties, including DFC personnel and potentially DFC applicants, on their roles and responsibilities to include detailed training on the CERISE+SPTF client protection auditing process and interpretation of data submitted in the CERISE+SPTF Client Protection Self-Assessment. The contractor shall provide virtual/hybrid training, develop course material, and conduct participant evaluations.

4.0 REQUIREMENTS

The contractor shall perform the following tasks:

4.1 Task Area 1: Client Protection Procedure Benchmarking and Assessment

a. Kick-off meeting with the Contracting Officer (CO), Contracting Officer’s Representative (COR) and selected personnel from relevant DFC departments.

b. The contractor shall identify and gain understanding of existing DFC client protection approach including both formal and informal practices throughout the underwriting process through review of documents and targeted stakeholder discussions with DFC staff.

c. The contractor will benchmark other development finance institution (DFI) client protection procedures, including roles and responsibilities, tools and resources supporting the DFI and client assessment and implementation, internal systems, and protocols.

4.2 Task Area 2: Guidance on DFC Systems Development

a. Support DFC to enhance integration of client protection principles in DFC’s screening, due diligence, and risk assessment processes.

b. Provide DFC with tailored guidance on enhancing systems and protocols to evaluate the applicability, risks, and appropriate mitigations associated with client protection practices in diligence, monitoring, and, as needed, corrective action.

c. Recommend internal strategy alignment for roles and responsibilities for diligence, assessment, and verification of client protection process and documentation.

d. Support development of internal and external materials to support clients in understanding DFC’s requirements for client protection and protocols for assessment and monitoring.

4.3 Task Area 3: Program Delivery, Training, and Implementation

a. Support DFC in enhancing written protocols for DFC to address client protection, and support DFC in implementation and training of staff on protocols and associated systems.

b. Provide training to DFC staff and potentially DFC applicants on outcomes of Task 1 and 2 above, with a focus on review of material, management structures, systems to support DFC’s assessment of client’s ability to implement appropriate client protection practices and monitoring of same. The training shall include detailed training on the CERISE+SPTF client protection auditing process and interpretation of data submitted in the CERISE+SPTF Client Protection Self-Assessment. The training will also cover the DFC protocols the contractor enhanced. The contractor shall provide virtual/hybrid training, develop course material, and conduct participant evaluations.

5.0 KEY PERSONNEL

The key personnel specified below are essential to work performance. At least 30 days prior to diverting any of the specified individuals to other programs or contracts (or as soon as possible, if an individual must be replaced, for example, as a result of leaving the employ of the Contractor), the Contractor shall notify the Contracting Officer and shall submit comprehensive justification for the diversion or replacement request (including proposed substitutions for key personnel) to permit evaluation by the Government of the impact on performance under this contract. The Contractor shall provide complete resumes for proposed substitutes, and any additional information requested by the Contracting Officer. Proposed substitutes should have comparable qualifications to those of the persons being replaced.

The Contracting Officer will notify the Contractor within 15 calendar days after receipt of all required information regarding the consent on substitutions. No change in fixed unit prices may occur as a result of key personnel substitution. The Contractor shall not divert or otherwise replace any key personnel without the written consent of the Contracting Officer. The Government may modify the contract to add or delete key personnel at the request of the contractor or Government.

*Alternate labor categories may be proposed by the vendor.

Desired qualifications of the key personnel:

a. Ten of more years’ experience supporting DFIs and/or multilateral development banks in the development and implementation of environmental and social policies and procedures.

b. Experience developing financial inclusion metrics with various financial service providers.

c. Experience with DFI incorporation and implementation of client protection principles in screening, diligence, and monitoring.

d. Knowledge of past and present client protection paradigms and data resources including the SMART Campaign, CERISE+SPTF, MFR Global Rating, ATLAS, and others.

e. Knowledge of global contextual and legal requirements related to client protection.

f. In depth knowledge and expertise of various client protection principles including appropriate product design and delivery, preventing over-indebtedness, transparency, responsible pricing, fair and respectful treatment of clients, privacy and confidentiality of client data, mechanisms for complaint resolution, and governance and human resources.

g. Familiarity with the IFC Performance Standards and related environmental, social, and human rights standards applied in the development finance context.

h. Excellent verbal and written communication and grammatical skills.

6.0 DELIVERABLES

The contractor shall provide the following deliverables:

Number

No later than one month following the kick-off meeting.

No later than one week after completion of deliverable number 3.

Within four months after the kick-off meeting.

Within four months after the kick-off meeting.

To be determined.

7.0 TRAVEL

Travel will not be required.

8.0 PLACE OF PERFORMANCE

The place of performance will be either the contractor’s site or the DFC office building located at 1100 New York Ave. NW, Washington, DC 20527.

9.0 HOURS OF OPERATIONS

DFC standard hours of operation:

Monday - Friday, 9:00 AM – 6:00 PM Eastern Time

10.0 PERIOD OF PERFORMANCE (POP)

The period of performance shall be for two years from the award date. The award date is anticipated on or about July 29, 2024.

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