RFP 72011424R00004 USAID Green Economy Program.pdf

72011424R00004

SOLICITATION, OFFER AND AWARD

4. TYPE OF SOLICITATION2. CONTRACT NUMBER 3. SOLICITATION NUMBER

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ORDER UNDER DPAS (15 CFR 700)

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(Date)(Hour) local timeuntildepository located in copies for furnishing the supplies or services in the Schedule will be received at the place specified in Item 8, or if hand carried, in the

SOLICITATION

9. Sealed offers in original and

PART IV - REPRESENTATIONS AND INSTRUCTIONS

OTHER STATEMENTS OF OFFERORS

EVALUATION FACTORS FOR AWARD

INSTRS., CONDS., AND NOTICES TO OFFERORS

REPRESENTATIONS, CERTIFICATIONS AND

LIST OF ATTACHMENTS

CONTRACT CLAUSES

PART III - LIST OF DOCUMENTS, EXHIBITS AND OTHER ATTACH.

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and related documents numbered and dated):

amendments to the SOLICITATION for offerors

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designated point(s), within the time specified in the schedule.

by the offeror) from the date for receipt of offers specified above, to furnish any or all items upon which prices are offered at the price set opposite each item, delivered at the

NOTE: Item 12 does not apply if the solicitation includes the provisions at 52.214-16, Minimum Bid Acceptance Period.

OFFER (Must be fully completed by offeror)

IMPORTANT - Award will be made on this Form, or on Standard Form 26, or by other authorized official written notice.

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21. ACCOUNTING AND APPROPRIATION20. AMOUNT19. ACCEPTED AS TO ITEMS NUMBERED

AWARD (To be completed by government)

CODE

REQ-114-24-00002504/26/2024

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720114

USAID/Georgia 00000

0900 D 06/04/2024

Armen Karapetyan akarapetyan@usaid.gov

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Samuel Kraegel

AUTHORIZED FOR LOCAL REPRODUCTION

Previous edition is unusable

STANDARD FORM 33 (Rev. 9-97)

Prescribed by GSA - FAR (48 CFR) 53.214(c)

12. In compliance with the above, the undersigned agrees, if this offer is accepted within _____220_________ calendar days (60 calendar days unless a different period is inserted

Issue Date: April 26, 2024

Question Submission Deadline: May 7, 2024 0900 Tbilisi Time (UTC+4)

Past Performance Submission Deadline: May 28, 2024 0900 Tbilisi Time (UTC+4)

Proposal Submission Deadline: June 4, 2024 0900 Tbilisi Time (UTC+4)

Subject: Request for Proposal (RFP) 72011424R00004 USAID Green Economy Program

Dear Prospective Offerors:

The United States Agency for International Development in Georgia (USAID/Georgia) is seeking proposals from qualified companies and organizations interested in implementing the above-referenced activity for the purpose of enhancing the competitiveness and capacity of priority economic sectors in Georgia.

USAID anticipates awarding one (1) stand-alone Cost-Plus-Fixed Fee (CPFF) completion type contract with a period of performance of five (5) years. The maximum available funding for this contract is $24,500,000.

USAID invites all interested and responsible organizations to submit offers in accordance with the requirements of this solicitation. USAID will conduct this procurement as a full and open competition under which any type of organization may submit a proposal. The procedures set forth in the Federal Acquisition Regulation (FAR) will govern the procurement. The competition will utilize a Highest Technically Rated with Fair and Reasonable Price and Realistic Cost (HTR) selection process.

The principal geographic codes for this contract are 937 and 110; the North American Industry Classification System (NAICS) Code is 541618 Other Management Consulting Services.

Please note that the award of this contract and its period of performance is based on the Section 889 Modified Foreign Assistance (FA) Waiver USAID received from the Director of National Intelligence (DNI), which expires on September 30, 2028. Therefore, although this is anticipated to be a five year period of performance, the base period will be for four years (e.g., 48 months) and an option period for an additional twelve (12) months, if required. If and when the Contractor submits the representation for FAR 52.204-24 Covered Telecommunications Equipment or Services-Representation, that Contractor represents that it does not use covered equipment and services, or there is a renewed or alternative waiver in place before that date, the Contracting Officer will provide written notice of its intent to exercise the option.

USAID Green Economy Program

RFP #72011424R00004

If your organization decides to submit a proposal in response to this solicitation, it must be submitted in accordance with Section L of this RFP. Offerors must also carefully review Section M – Evaluation Factors. Proposals must be submitted to USAID/Georgia no later than the closing date and time stated above, to the email addresses designated in Section L for receipt of proposals. If the proposal is received after the closing date and time, or if it is incomplete, it will neither be accepted nor considered unless authorized by the Contracting Officer pursuant to

FAR 15.208.

Any questions regarding the RFP requirements must be submitted to A&A Specialist Ms. Yana Adelberg via e-mail at yadelberg@usaid.gov, copying TbilisiRCO-EG@usaid.gov no later than the submission deadline set forth above.

Along with this RFP, any amendments to this solicitation will be issued and posted on the System for Award Management website (www.sam.gov). Offerors are encouraged to check the website periodically. It is the responsibility of the Offeror to ensure that solicitation or any amendments to it has been received from the Internet in its entirety and USAID bears no responsibility for data errors resulting from transmission or conversion processes.

This RFP in no way obligates the USAID to award a contract, nor does it commit USAID to pay any cost incurred in the preparation and submission of your proposal. Thank you for your interest. We look forward to receiving and reviewing your proposals.

Sincerely, Samuel Kraegel Regional Contracting Officer USAID/Caucasus mailto:yadelberg@usaid.gov mailto:TbilisiRCO-EG@usaid.gov http://www.sam.gov/

Contents:

SECTION B - SUPPLIES OR SERVICES/PRICES

SECTION C - STATEMENT OF WORK (SOW)

SECTION D - PACKAGING AND MARKING

SECTION E - INSPECTION AND ACCEPTANCE

SECTION F - DELIVERIES OR PERFORMANCE

SECTION G - CONTRACT ADMINISTRATION DATA

SECTION H - SPECIAL CONTRACT REQUIREMENTS

SECTION I - CONTRACT CLAUSES

SECTION J - LIST OF ATTACHMENTS

SECTION K - REPRESENTATIONS, CERTIFICATIONS, AND OTHER

STATEMENTS OF OFFERORS

SECTION L - INSTRUCTIONS, CONDITIONS, AND NOTICES TO OFFERORS

SECTION M - EVALUATION FACTORS FOR AWARD

Section B – Page 5

SECTION B - SUPPLIES OR SERVICES/PRICES

B.1 PURPOSE

The purpose of this contract is to provide technical assistance and services described in detail in Section C, Statement of Work, for the implementation of the USAID Green Economy Program.

B.2 CONTRACT TYPE

This is a Cost-Plus-Fixed-Fee (CPFF) completion type contract. For the consideration set forth in the contract, the Contractor must provide the deliverables or outputs described in Sections C and F and comply with all contract requirements.

B.3 ESTIMATED COST, FIXED FEE, AND OBLIGATED AMOUNT

(a) The Total Estimated Cost of the base contract for the performance of the work required hereunder, exclusive of fixed fee, is [ TBD ]. The Total Fixed Fee is [ TBD ].

The Total Estimated Cost Plus Fixed Fee, if any, is [ TBD ].

(b) The Total Estimated Cost for the performance of the work under the option period, if exercised, exclusive of fixed fee, is [ TBD ]. The Total Fixed Fee is [ TBD ]. The Total Estimated Cost Plus Fixed Fee, if any, is [ TBD ].

(c) Within the estimated cost plus fixed fee specified above, the amount currently obligated and available for reimbursement of allowable costs incurred by the Contractor (and payment of fee) for performance hereunder is [ TBD ] . The Contractor must not exceed the aforesaid obligated amount, unless authorized by the contracting officer pursuant to the clause of this contract entitled “Limitation of Funds

(APR 1984)” FAR 52.232-22.

(d) Funds obligated hereunder are anticipated to be sufficient through [ TBD ] .

B.4 BUDGET

(a) The following itemized budget sets forth the estimates for reimbursement of dollar costs for cost categories and the fixed fee.

Base Contract (TBD, 2024 - TBD, 2028)

CLIN Item Total ($)

0001a Direct Costs TBD

Section B – Page 6

0001b Grants under Contract TBD

0001c Catalytic Financial Pool TBD

0001d Indirect Costs TBD

0001e Fixed Fee TBD

Base (CLIN 0001) Total Estimated Cost Plus Fixed Fee

TBD

Option Period (TBD, 2028 - TBD, 2029)

CLIN Item Total ($)

0002a Direct Costs TBD

0002b Grants under Contract TBD

0002c Catalytic Financial Pool TBD

0002d Indirect Costs TBD

0002e Fixed Fee TBD

Option (CLIN 0002) Total Estimated Cost Plus Fixed Fee

TBD

[Note to Offerors: For purposes of offeror proposals, the Base Period will be a total of four years (e.g., forty-eight months) and the Option Period will be for a total of twelve months.

The total period of performance of base plus option year must not exceed five (5) years. The dates for the Base Period and the Option Period will be established at time of award based on award date]

[Note: If the successful offeror represents that the Section 889 FA Waiver is not required, the final award may be altered to have a single CLIN combining the total amounts of the Base Period and Option Period.]

(b) The amounts in the above cost categories may not be adjusted without a written modification signed by the Contracting Officer. The Contractor must not bill any amounts against this contract in excess of the amounts specified for each line item.

B.5 INDIRECT COSTS

Section B – Page 7

The contract clause entitled “Allowable Cost and Payment (JUN 2013)”, FAR 52.216-7, specifies that the indirect cost rates must be established for each of the contractor’s accounting periods that apply to this contract. Pending establishment of revised provisional or final indirect cost rates, allowable indirect costs shall be reimbursed on the basis of the following negotiated provisional or predetermined rates and the appropriate bases.

B.7 PAYMENT OF FIXED FEE

USAID will pay a proportion of the Contractor’s fixed fee each month pursuant to FAR 52.216-8, “Fixed Fee,” upon the receipt of an invoice deemed proper by the USAID/Georgia Office of Financial Management. The paying office is USAID/Georgia, Office of Financial Management, as specified in Section G.7.

B.8 COST REIMBURSABLE

The U.S. dollar costs allowable will be limited to reasonable, allocable, and necessary costs determined in accordance with FAR 31 (Contract Cost Principles and Procedures), FAR 52.216-7 Allowable Cost and Payment, FAR 52.216-8 Fixed Fee, FAR 52.232-20 Limitation of Cost, FAR 52.232-22, Limitation of Funds, if applicable, and AIDAR 752.7003 Documentation for Payment.

END OF SECTION B

Section C - Page 8

SECTION C - STATEMENT OF WORK (SOW)

C.1 PURPOSE

The purpose of the USAID Green Economy Program (“Program”) is to 1) enhance the competitiveness and capacity of target economic sectors; 2) integrate with Western markets; 3) create remunerative employment opportunities; and 4) reduce those sectors’ environmental footprint.

C.2 BACKGROUND

C.2.1. General Background and Problem Analysis

Georgia’s economy has demonstrated significant resilience in the face of global economic challenges, including Russia’s invasion of Ukraine, the COVID-19 epidemic, and the manipulation of key economic sectors by Russia and its allies for political gain. Further, while Georgia’s economy has grown, it has not benefited all citizens equally, leading to a shortage of high-value employment opportunities. USAID has identified the following sectors as most likely to help generate inclusive employment and/or environmentally friendly economic growth for Georgia: 1) tourism and hospitality; 2) light manufacturing; 3) digital industries; and 4) solid waste management. The continued success of Georgia’s economy relies heavily on protecting its natural resources, especially in the tourism and hospitality industries. To increase access to Western markets and protect economic drivers, Georgia must also reduce its environmental footprint.

In 2021, the tourism and hospitality sector accounted for 7.2 percent of GDP. To maximize the potential in this sector, there is a clear need for Georgia to continue pursuing high-value travelers. This pursuit demands enhancements in service and product quality, broadening the spectrum of offerings, and further development of tourism infrastructure. The forthcoming EU Association Agreement's tourism legislation in 2023-2024 promises to introduce new regulatory standards and requirements and will continue to shape the sector's future.

There have been recent efforts to modernize and increase competitiveness of Georgia’s light manufacturing sector. All value chains in this sector demonstrated positive nominal growth in 2022 compared to 2021, with the highest growth observed in the construction materials value chain (21.6%). The Information and Communications Technology (ICT) sector in Georgia is also witnessing an evolution, largely due to digital transformation initiatives, the expansion of e-governance, and improved access to high-speed internet and other digital services. These advancements promote economic growth, generate more jobs, and raise the overall living standards of the Georgian population. For example, the ICT software value chain income value in 2022 was 6 times higher compared to income in 20201.

1 USAID supported Sector and Value Chain Analytics: https://pmcg-i.com/publication/sector-and-value-chain-analytics-2022/ https://pmcg-i.com/publication/sector-and-value-chain-analytics-2022/ https://pmcg-i.com/publication/sector-and-value-chain-analytics-2022/

Section C - Page 9

Moreover, significant strides have been made in Georgia's solid waste management (SWM) sector, including recycling, with an emphasis on environmental sustainability and public health.

Progress in this sector has been achieved through a combination of technical assistance, policy changes, capacity building, and infrastructure development. This sector underpins success in others, as the ability to manage waste and protect the environment is required to sustain the tourism and hospitality industry, and can supply additional resources to the light manufacturing and ICT sectors through recycling and resource recovery activities. Furthermore, introducing circular economy principles in all targeted sectors would benefit environmental sustainability as well as make those sectors more resilient.

C.2.2. Relationship to the USAID/Georgia’s Country Development Cooperation Strategy

(CDCS)

The Program will support Development Objective 3: Inclusive High-Value Employment Opportunities Provided through Increased Economic Growth. The majority of the Program will directly support Intermediate Result (IR) 3.2: Competitiveness of Key Sectors Increased. A portion of the work will also support IR 3.1 Last Gaps in Euro Atlantic Oriented Economic Reforms Addressed, as additional regulations are needed to improve competitiveness, access Western markets, and reduce the environmental footprint of Georgia’s key economic sectors to support the EU Association Agreement and eventual EU Accession. Additionally, the Program will counter malign influence by diversifying Georgia’s economy making it less vulnerable to economic manipulation.

C.2.3. Development Hypothesis

IF enterprises in target sectors sustainably improve their productivity; IF enterprises in target sectors increase their capacity to meet Western market requirements; IF additional private sector investment and appropriate financing is leveraged in target sectors; IF the transformation of Georgia’s economy to an environmentally sustainable model is supported;

and, IF Georgia’s capacity to meet its environmental and climate targets is strengthened; THEN Georgia’s economy can take full advantage of changing economic circumstances to improve the balance of trade, provide gainful employment opportunities, move closer to EU Association Agreement requirements, while meeting its international environmental commitments.

C.3 SCOPE OF WORK

The Program has two mutually reinforcing components. These two components are interwoven and designed to mutually reinforce each other to enhance the competitiveness and capacity of priority economic sectors and targeted enterprises to create remunerative employment opportunities; support their integration with Western markets; and reduce those sectors’ environmental footprint. The two components for this program are:

Component 1: Improving the productivity and export capacity of individual enterprises.

Section C - Page 10

Component 2: Facilitating the economic ecosystem to meet the needs of Georgian enterprises.

The Contractor must consider uneven growth between rural and urban areas and adjust programming, as appropriate, to help bridge this divide. The Contractor must also take into account and meaningfully apply USAID’s policies around gender and vulnerable populations to ensure equitable access to program opportunities.

C.3.1. Detail Description of Components

Component 1: Improving the productivity and export capacity of individual enterprises.

Under Component 1, the Contractor must improve productivity and economic competitiveness, while decreasing the environmental impact of individual firms within the targeted sectors. This includes introducing lead mitigation efforts in relevant targeted sectors, to the extent feasible.

The aim would be to sustainably increase the capacity of firms in targeted sectors to provide high-value employment.

The Contractor must identify and assist firms with strong growth potential to increase sales, exports, productivity, and investment. Assistance interventions might include finding new buyers and entering new markets, upgrading production techniques, improving quality control systems, improving management practices, securing financing to expand operations, etc. The Program must take into account USAID’s strategies on gender and vulnerable populations and every effort must be taken to ensure equitable access to program opportunities.

Reducing the environmental footprint and introducing circular economy principles must be integrated into the Program’s approach at all levels. The Contractor must identify and support practices, technologies, and strategies that seek to modernize and transform targeted sectors to be climate-resilient and reduce the environmental impact. With the above in mind, the Contractor must also take into account Georgia’s 2030 Climate Change Strategy2, EU Association Agreement, and the updated Nationally determined contributions (NDC) supporting low-carbon development.

Leveraging private sector investment is an important aspect of this activity. As such, the Contractor’s assistance must be designed not only to incentivize firms to invest in their own growth but also mobilize financing to remove systemic barriers that hinder the development of functioning market systems and value chains. Coordinating with USAID’s Financial Innovation Program will be important, with the goal of leveraging private sector financing. In some cases, firms may only need technical assistance from USAID. But in many cases firms will require additional assistance, such as equipment upgrades, standards certifications, training or other activities designed to improve a firm’s competitiveness. In providing support to firms, the Contractor must coordinate and engage relevant Government and other development stakeholders. In addition, the Contractor must seek ways to forge public private partnerships to catalyze private sector resources for targeted interventions that advance the core business

2 Georgia’s 2030 Climate Change Strategy http://mepa.gov.ge/En/Files/ViewFile/50123

Section C - Page 11 interests of a partner company and provide tangible benefits to an increased number of market players by closing critical market gaps, addressing economic and social inclusion and accessibility issues, and reducing barriers to investments.

Additional and specified interventions to achieve the expected results and perform the tasks identified under Component 1 will be incorporated into the activity work plans.

The expected outcomes under Component 1 are to strengthen the competitiveness and capacity of individual firms; facilitate the creation of high-value employment opportunities;

support export diversification, primarily with Western markets; and reduce the environmental footprint of beneficiary firms. Success in achieving the above objectives will be measured in accordance with the following indicators, for which the Offeror must propose ambitious, yet realistic targets:

Mandatory Contextual Measures

● Share of new jobs created with USG assistance in target sectors as percent of all employment available in Georgia’s private sector.

● Share of USG-facilitated sales as percent of all sales in target sectors.

● Share of investments mobilized by USG as percent of all investments in target sectors.

● Percent change in value of imports in target sectors

● Percent change in value of exports in target sectors

● Value added generated in targeted sectors

● Share of Georgia’s trade with EU/Russia/China in target sectors

● Share of trade with Russia/Europe/China of USG beneficiaries in target sectors

Mandatory Direct Measures

● Value of investment facilitated by USG in target sectors

● Value of sales of USG-supported enterprises (domestic and exports)

● Number of new full-time equivalent jobs created with USG assistance

● Number of small, and medium-sized enterprises supported by USG

● Number of private sector enterprises with increased access to finance due to USG assistance

● Value of private sector resources leveraged by the USG to support U.S. Foreign

Assistance Objectives

● Enterprises in the target sectors with improved environmental practices and/or improved climate resilience

● Greenhouse gas (GHG) emissions, estimated in metric tons of CO2 equivalent, reduced, sequestered, or avoided with USG assistance (EG.12-6)

● Amount of investment mobilized (in USD) for climate change adaptation as supported by USG assistance

Component 2: Facilitate an economic ecosystem to meet the needs of Georgian enterprises.

Under Component 2, the Contractor must focus on increasing the ability of Georgia’s economic

Section C - Page 12 ecosystem, including public and private sector stakeholders, to support the development of individual enterprises and economic sectors. The aim is to increase Georgia’s ability to capitalize on changing global market conditions, improve Georgia’s balance of trade, reduce Georgia’s market dependence on single source / malign markets, meet Georgia’s EU Association Agreement requirements, and reduce priority sectors’ environmental footprint.

Regular interaction with private sector firms and other stakeholders will inform the Contractor about systemic issues that constrain the private sector in the targeted sectors. Depending on the type of identified constraints, the Contractor must prioritize and collaborate closely, as appropriate, with other USAID activities in addressing them.

As determined by a critical gap analysis, the Contractor may design interventions that improve the capacity of government entities, business service providers and associations (both sectoral and cross-cutting) to provide tailored services to Georgian enterprises and targeted sectors.

Likewise, the Contractor may need to design tailored activities to address critical skill gaps in targeted sectors. Recognizing that economic growth in Georgia has not translated into improved livelihoods, the Program must facilitate efforts to ensure equitable access to skills training so that more Georgians can take advantage of higher-value employment opportunities.

The Contractor must take into account USAID’s strategies on gender and vulnerable populations and ensure that women, youth, persons with disabilities, ethnic and religious minorities, and LGBTQI+ communities representatives are given equitable opportunities to benefit from Program activities and skills training. In addition, specific attention must be given to improving entrepreneurship and innovation as a cross-cutting approach.

Additional and specified interventions to achieve the expected results and perform the tasks identified under Component 2 will be incorporated into the activity work plans.

The expected outcomes under Component 2 are to identify and address critical systemic gaps in targeted sectors, by improving the regulatory environment, better tailoring government and private sector services, and strengthening intersectoral cooperation.

The Contractor must use the following indicators to measure its progress and achievement of these outcomes:

● Number of institutions with improved capacity

● Number of strategies, policies, plans, or regulations developed and implemented, to advance development of priority sectors

Key Contractual Results The Contractor must address how the Program will work to reach the contractual targets listed below.

● At least $100 million in new exports going to identified strategic markets.

● At least $200 million in new sales by assisted enterprises.

● At least $50 million in new investment facilitated in the target sector.

Section C - Page 13

● At least 4,000 new full-time equivalent jobs created by program beneficiaries.

● At least $5 million of non-donor resources mobilized for local development priorities.

For indicators where a baseline does not exist, the Contractor must perform a baseline assessment.

C.3.2. Adaptive Management

Georgia has long positioned itself as an attractive tourist destination as well as offering investment opportunities, especially in light manufacturing and ICT. However, Russia’s invasion of Ukraine, the COVID-19 pandemic, and other geopolitical changes have created new opportunities and challenges. In addition, complexity of the program leaves many unknown factors that will not be evident until the Program is in implementation and assessments are undertaken. While keeping the contractor focused on identified sectors, as opportunities emerge, the contractor must be flexible to incorporate additional high-impact sectors.

Further, given the dynamic nature of the private sector and in anticipation of changing economic and political conditions, the Contractor must utilize adaptive management practices built around evidence-based decision making, reflection points, feedback loops with USAID, and close collaboration with Program stakeholders. In order to maintain relevance, the Contractor must be able to pivot and adapt interventions to capture opportunities and address complexities as they emerge. This may include periodic adjustments to tasks and targets based on performance and learning. Furthermore, the Contractor must remain agile and open to ideas from potential beneficiaries (both private and public actors) as a means of safeguarding the innovative nature of the Program.

The Contractor must use an approach that incorporates mechanisms and tools to provide evidence to support adjustments in implementation and includes adaptive management practices and contingency plans to ensure responsive programming. Further, the Contractor must be agile to take requests from USAID to address changing circumstances and unanticipated events. Monitoring, Evaluation and Learning (MEL) and collaboration, learning and adapting (CLA) efforts will be key components of the activity’s approach to adaptive management and its CLA agenda. The Contractor must develop a systematic method of collecting and analyzing performance data and other information to track progress toward planned results, ensure effective management and oversight, and enable data-based decision-making and refinements to the activity.

The Contractor must provide sufficient human and financial resources for MEL and CLA, including the development and launch/release of outreach materials to promote activity accomplishments and replication of success.

C.3.3. Climate Priority Requirements

Section C - Page 14

The U.S. Government has set substantial, ambitious targets for reductions in climate- impacting emissions, targeting a 50 percent reduction from 2005 levels in economy-wide net greenhouse gas pollution in 2030, and a net zero carbon economy by 2050. USAID is also making concerted efforts to support a lead-free future.3 Investments made under this Program are expected to comply with the spirit of these commitments, and, where possible and appropriate, support the development of a cleaner, greener economy and take into account lead mitigation strategies.

The Contractor must integrate best practices and approaches from USAID’s Climate Change Strategy across all components. Where possible, interventions should be proposed and designed in a way that accelerates and scales targeted climate actions and catalyzes transformative shifts to net-zero and climate-resilient pathways, thereby contributing to both Strategic Objectives (SO) 1 and 2 of USAID’s Climate Strategy4.

Specifically, the Program is designed to support SO 1 Targeted Direct Action first by reducing the emissions related to the targeted economic sectors, while also increasing access to finance for investments related to greening the sectors. It aims to reduce emissions and waste generated by the target sectors, and encourage an environmentally-sound approach to further development. Further, interventions must be designed in a way that decreases the carbon footprint required in targeted sectors by increasing energy efficiency and promoting renewable energy opportunities. This required the Contractor to also coordinate with USAID Securing Georgia’s Energy Future Program. The Program must also engage with enterprises to modernize their operations methodologies for increased efficiency in line with international standards.

To advance SO 2 Systems Change, the Program must focus on transforming the overall approach to economic development, catalyzing a shift towards low-carbon, climate resilient pathways. Such transformation requires an emphasis on reducing resource usage and maximizing recycling and circular systems opportunities for key industries. This will be done primarily by strengthening recycling enterprises and sustainability linking them with the municipal SWM companies. By increasing the capacity of Georgia’s SWM sector, the Program will contribute to transforming the whole of Georgia’s economy, even beyond the target sectors, to be cleaner, greener, and more resilient.

C.3.4. Private and Public Sectors

As the engine of economic growth, the private sector should drive the implementation of this program. In-depth USAID consultations with related enterprises revealed opportunities for private sector-led partnerships and their readiness for co-creating solutions that will unlock investment. At the same time, many of the system-wide challenges may involve stakeholders from multiple Georgian ministries and institutions. As such, the Contractor will act as a facilitator, catalyst, and convener, bringing together the public and private sectors to

3 Lead-Free Future: https://www.usaid.gov/leadfreefuture 4 https://www.usaid.gov/sites/default/files/2022-11/USAID-Climate-Strategy-2022-2030.pdf https://www.usaid.gov/sites/default/files/2022-11/USAID-Climate-Strategy-2022-2030.pdf https://www.usaid.gov/sites/default/files/2022-11/USAID-Climate-Strategy-2022-2030.pdf https://www.usaid.gov/leadfreefuture https://www.usaid.gov/sites/default/files/2022-11/USAID-Climate-Strategy-2022-2030.pdf

Section C - Page 15 collaborate in identifying constraints and designing solutions. The Contractor’s approach should ensure the realities of the local context are accounted for while instilling greater private sector ownership and investment, fostering the environment for public private partnerships, and strengthening replicability and scalability.

The Contractor is expected to proactively and continually engage and collaborate with strategic stakeholders to implement the Program for maximum impact and sustainability.

USAID Private Sector Engagement (PSE) Policy:

USAID’s PSE Policy5 calls for USAID staff and partners to actively assess the role of the private sector and use market-based approaches in addressing development issues for more sustainable development outcomes. Implementing partners play a vital role in advancing the PSE Policy by actively engaging relevant private sector partners, embracing market-based approaches, and integrating the unique capabilities of the private sector in addressing development challenges across sectors.

As per the USAID PSE Policy, the Contractor must closely consult, strategize, align, and collaborate with the private sector for greater scale, sustainability, and effectiveness of activity outcomes. The Contractor must rely on public- and private-sector-led strategies to identify opportunities for catalytic, systemic-change- driving interventions, with an eye towards supporting long term public private partnerships (PPP) and catalyzing additional public and private sector investments.

C.4 Other Stakeholder Coordination

A wide variety of donors are also engaged in these proposed sectors. The Contractor must leverage these investments, building upon past achievements, and incorporating lessons learned. The Contractor must ensure the best use of policy and legislative reforms, investments, lines of credit, guarantees, technical assistance and other types of support by the EU and different European Donors, and International Financial Institutions. The Contractor must coordinate closely with the above-mentioned donors, among others, in order to ensure complementarity and avoid duplication of efforts.

Coordination with the Government of Georgia, other USAID Programs, Other USG and Donors The Contractor must closely coordinate with the Government of Georgia (GoG), the private sector, other ongoing USG activities, and other donor-led initiatives to support the continued development of the target economic sectors in Georgia.

Strategic Alignment with GoG Policies and Priorities:

The Contractor must work closely with the Ministry of Economy and Sustainable Development, the Ministry of Environmental Protection and Agriculture, and other GoG Ministries and Agencies with a mandate related to economic growth and environmental impact reduction.

5 https://www.usaid.gov/sites/default/files/2022-05/usaid_psepolicy_final.pdf https://www.usaid.gov/sites/default/files/2022-05/usaid_psepolicy_final.pdf

Section C - Page 16

Activities should be aligned with the GoG’s strategies, priorities, and EU Association Agreement requirements. The Contractor must closely follow related developments in the country and region, including political priorities, economic trends, and foreign direct investments in order to ensure that Program activities respond to immediate and long-term sectoral development needs.

Cooperation with USG-funded Programs Where possible, the Contractor must collaborate and work with ongoing USG programs to attract investments in the targeted sectors; address critical skills gaps; support enabling policy environment and climate resilient development; and engage communities and business supporting organizations. It is also expected that the Contractor will collaborate with USAID programs from neighboring countries, as well as with the regional programs funded by USAID/Washington.

As relevant, the Contractor must cooperate with the USAID local and national governance activities that work with national governments and local municipalities to jointly advance solid waste management, intermunicipal cooperation, climate change, and rural tourism. As well as with the civil society and civic education programming is another area of intersection to advance environmental objectives and climate-related awareness.

The Contractor must also collaborate closely with other ongoing programs from the US Government. This will include, but is not limited to the Commercial Law Development Program’s (CLDP) work on increasing access to Western markets, and the Development Finance Corporation’s (DFC) interest in investing in development-oriented private-sector-led opportunities across the country.

C.5 Grants under Contract (GUC) & Catalytic Financial Pool (Subcontracts)

Program success requires stakeholders in the targeted sectors to make significant changes in their behavior and systems, as well as, to adopt new practices and make significant investments in new resources. In order to encourage and de-risk these changes, the Program will use up to the amount set forth in Section B.6, not to exceed $6 million, in Grants Under Contracts (GUC) as one of the tools that will be used to implement the program.

All grants must have a strong justification, including a clear development purpose and must consider environmental impacts. Grants must require a minimum of 1:1 matching, wherever possible. Where relevant, lower matching requirements can be proposed for vulnerable groups. The Contractor must manage the pool of cost-matching funds in a manner that (a) ensures the desired outcomes; (b) maximizes leverage of non-USAID funds; (c) minimizes the potential for significant market-distortions; and (d) ensures additionality. The Contractor should consider using pay for performance approaches and include the percentage of co-investment as criteria for receiving support.

The Contractor must work with companies, sectoral associations, business service providers, or

Section C - Page 17 similar members of the priority sectors that are administratively capable to receive and utilize USAID’s support for the development of the sectors.

For cases where application of grants is not an effective instrument, the Contractor may use Catalytic Financial Pool (Subawards). This Financial Pool may be used for the establishment of activity-based partnerships between the private sector and the program, as defined by USAID, in the priority sectors. In addition, Catalytic Financial Pool can be used to implement targeted technical assistance to key stakeholders, such as conducting feasibility studies, developing sectoral strategies, organizing Business to Business and investment forums.

There are no limitations on the geographic coverage in the country. Investments under this program, and especially strong applicants, are expected to be bolstered by linkages to the formal banking sector, including the loan portfolio guarantees with the Development Finance Corporation (DFC), and also linkages with the wider capital market, including potentially direct investment from DFC and/or other International Financial Institutions (IFIs).

C.6 Additional Cross-Cutting Requirements and Considerations

C.6.1. Innovation and Digital Solutions

Opportunities for innovation in target sectors are substantial, and even greater when considering environmental solutions. Digital platforms, and platform interoperability, were identified by stakeholders across all sectors as both challenges and opportunities for transformative sectoral development. The Contractor must clearly describe how they plan to identify solutions, with priority given to innovations that improve the competitiveness of the sectors, increase efficiency and profitability, and improve the overall environmental footprint of operations. Due to the level of start-up capital needed for such innovations, investments supporting innovation may be larger than traditional grants. Innovations that introduce, implement, or scale-up digital solutions, including but not limited to interoperable multimodal information systems, e-certification, and electronic information sharing mechanisms should be aligned with the objectives of the USAID Digital Strategy 2020-2024 and with the Principles for Digital Development. Any digital solutions should be cognizant of the importance of cybersecurity and should address data privacy in accordance with USAID policies.

C.6.2. Gender and Vulnerable Populations

The following USAID policies must be taken into consideration in the implementation of this program:

● USAID’s Policy on Promoting the Rights of Indigenous Peoples6: USAID released its policy on Promoting the Rights of Indigenous Peoples (PRO-IP) in March 2020. The overarching goal of this Policy is to improve the measurable impact and sustainability of USAID’s

6 Policy on Promoting the Rights of Indigenous Peoples.

https://www.usaid.gov/policy/indigenous-peoples

Section C - Page 18 programs by ensuring that our staff and implementing partners engage Indigenous Peoples as meaningful partners in development processes; safeguard against harm; and enhance their ability to promote their rights, determine their own priorities, and advance their self-reliance.

● National Strategy on Gender Equity and Equality7: The Biden Administration approved the National Strategy on Gender Equity and Equality in October 2021 that adopts an intersectional approach to tackling the barriers and challenges faced by those experiencing compounding forms of bias and discrimination.

● USAID’s LGBTQI+ Inclusive Development Policy8: The LGBTQI+ Inclusive Development Policy was released in August 2023 and is an update to the 2014 LGBT Vision for Action.

This policy reiterates, guides, and reinforces USAID’s commitment to championing LGBTQI+ inclusive development and the human rights of LGBTQI+ people as part of a coordinated, whole-of-U.S. government effort with our partners on the ground.

Investments made under this activity are expected to comply with the spirit of the applicable priorities - economic security, equality, climate change - and intersectional approach. Where possible and appropriate, the Contractor must integrate best practices and approaches described under the applicable priorities of these strategies. The Contractor will identify gaps in our current analyses in relevant sectors and propose effective ways to address them.

Interventions should be designed in a way that tackles the identified gaps and challenges while contributing to the advancement of the aforementioned strategy priorities.

As noted above, vulnerable groups have limited access to information, knowledge, resources, and markets. They do not always have equitable access to opportunities for building and sustaining business and leadership skills that are key to overcoming the social and cultural barriers to their participation. The Contractor must describe how it will implement activities to benefit and meet the unique needs of vulnerable populations, including women, youth, ethnic and religious minorities, persons with disabilities, and LGBTQI+ communities as these pertain to the local context and challenges described above. In doing so, the Contractor will consider effective approaches in advancing the Agency's Diversity, Equity, Inclusion, and Accessibility (DEIA) strategy9. This means identifying gaps in fostering equity with underserved communities and developing plans to address them through result-oriented actions. The proposal must not focus only on beneficiary numbers reached but also how interventions are likely to impact individuals differently based on gender roles and cultural norms. The Contractor must consider how and where it implements a differential approach.

C.6.3. Sustainability

The Contractor must design and implement interventions whose results will be sustainable beyond the life of the Program. Sustainability can be achieved in many ways and will be buoyed

7 National Strategy on Gender Equity and Equality.

8 LGBTQI+ Inclusive Development Policy 9 Diversity, Equity, Inclusion, and Accessibility (DEIA) Strategy https://www.whitehouse.gov/wp-content/uploads/2021/10/National-Strategy-on-Gender-Equity-and-Equality.pdf https://www.usaid.gov/policy/lgbtqi https://pages.usaid.gov/DEIA/deia-resources

Section C - Page 19 by building the capacity of the public sector, focusing on the needs of the private sector, engaging the private sector and GoG (including subnational governments, where appropriate) in the design and implementation of specific interventions, ensuring ownership by local actors, increasing linkages across the country, and requiring all grant and other support applicants to write a sound sustainability plan as part of their proposal. The Contractor must examine the incentives and motivations of key stakeholders in targeted sectors for sustaining interventions and incorporate these findings into intervention designs.

C.7 Organizational Capabilities and Contact Management

The Contractor must have the necessary mix of staff and requisite levels of professional expertise, adapted as needed, to implement the activity and must identify, recruit, hire, and support appropriate candidates for the key personnel positions.

The Contractor’s successful track record must demonstrate that it can ensure the sustainability of intervention outcomes, including proven methodologies for cultivating local ownership, engaging the private sector, replicating and scaling models, promoting knowledge management, pursuing creative approaches, and institutionalizing reform.

The Contractor must have a combination of core staff to manage regularly scheduled work and deliverables as well as short-term advisors, experts, and specialists to conduct periodic or one-off tasks, in accordance with all components. The team collectively must possess a deep cadre of high-level specialists to implement the activity.

Consistent with the Agency Policy of Gender Equality and Women's Empowerment, USAID/Georgia promotes social equity and inclusion in its hiring and management practices.

The Contractor must demonstrate institutional commitment to gender equality and social inclusion and must consider equitable balance in staffing and staff requirements; personnel systems, hiring, and management; and capacity development principles and approaches. It is critical for the sustainability of the activities to be initiated under this program that the Contractor engages local experts. When qualified personnel are available, the Contractor should utilize local personnel with appropriate prior experience and expertise.

Professional-level skills and management practices are required in the performance of this contract. Accordingly, the Contractor must establish an effective quality control program to assure that deliverables and other products meet professional standards and comply with requirements.

END OF SECTION C

Section D - Page 20

SECTION D - PACKAGING AND MARKING

D.1 AIDAR 752.7009 MARKING (JAN 1993)

(a) It is USAID policy that USAID-financed commodities and shipping containers, and program construction sites and other program locations be suitably marked with the USAID emblem.

Shipping containers are also to be marked with the last five digits of the USAID financing document number. As a general rule, marking is not required for raw materials shipped in bulk (such as coal, grain, etc.), or for semi-finished products which are not packaged.

(b) Specific guidance on marking requirements should be obtained prior to procurement of commodities to be shipped, and as early as possible for program construction sites and other program locations. This guidance will be provided through the cognizant technical office indicated on the cover page of this Contract, or by the Mission Director in the Cooperating Country to which commodities are being shipped, or in which the program site is located.

(c) Authority to waive marking requirements is vested with the Regional Assistant Administrators, and with Mission Directors.

(d) A copy of any specific marking instructions or waivers from marking requirements is to be sent to the Contracting Officer; the original should be retained by the Contractor.

D.2 COMPLIANCE WITH BRANDING STRATEGY AND BRANDING IMPLEMENTATION &

MARKING PLANS

(a) The Contractor must comply with the approved Branding Implementation Plan (BIP) and Marking Plan (MP)

(b) The Activity BIP/MP will be incorporated as a material part of the Contract.

(c) The Contractor must comply with the following Branding Strategy:

Program Name: USAID Green Economy Program

Positioning: The project will be positioned as a partnership between USAID and Government of Georgia as well as private enterprises, associations, and other stakeholders that have critical roles in the development and modernization of targeted economic sectors.

Visibility: The project will have high visibility in Georgia among its targeted…