SOL-169-17-000002_CSS_Activity_Serbia.pdf

SOL-169-17-000002

SOLICITATION, OFFER AND AWARD

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

7. ISSUED BY CODE 8. ADDRESS OFFER TO (If other than Item 7)

ORDER UNDER DPAS (15 CFR 700)

6. REQUISITION/PURCHASE NUMBER

NOTE: In sealed bid solicitations "offer" and "offeror" mean "bid" and "bidder".

NEGOTIATED (RFP)

SEALED BID (IFB)

5. DATE ISSUED

1. THIS CONTRACT IS A RATED RATING PAGE OF PAGES

EXT.NUMBERAREA CODE

B. TELEPHONE (NO COLLECT CALLS)A. NAME

10. FOR

INFORMATION

CALL:

CAUTION: LATE Submissions, Modifications, and Withdrawals: See Section L, Provision No. 52.214-7 or 52.215-1. All offers are subject to all terms and conditions contained in this solicitation.

(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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L

M SPECIAL CONTRACT REQUIREMENTS

CONTRACT ADMINISTRATION DATA

DELIVERIES OR PERFORMANCE

INSPECTION AND ACCEPTANCE

PACKAGING AND MARKING

DESCRIPTION/SPECS./WORK STATEMENT

SUPPLIES OR SERVICES AND PRICES/COSTS

SOLICITATION/CONTRACT FORM

PART II - CONTRACT CLAUSESPART I - THE SCHEDULE

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SEC. DESCRIPTION PAGE(S) (X) DESCRIPTION SEC. (X)

11. TABLE OF CONTENTS

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IS DIFFERENT FROM ABOVE - ENTER

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16. NAME AND TITLE OF PERSON AUTHORIZED TO SIGN OFFER15A. NAME

DATEAMENDMENT NO.DATEAMENDMENT NO.

and related documents numbered and dated):

amendments to the SOLICITATION for offerors

(The offeror acknowledges receipt of

14. ACKNOWLEDGEMENT OF AMENDMENTS

CALENDAR DAYS (%)30 CALENDAR DAYS (%)20 CALENDAR DAYS (%)10 CALENDAR DAYS (%)

(See Section I, Clause No. 52.232.8)

13. DISCOUNT FOR PROMPT PAYMENT

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

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

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.

28. AWARD DATE

(Signature of Contracting Officer)

27. UNITED STATES OF AMERICA

25. PAYMENT WILL BE MADE BY

26. NAME OF CONTRACTING OFFICER (Type or print)

CODE 24. ADMINISTERED BY (If other than Item 7)

ITEM

(4 copies unless otherwise specified)

23. SUBMIT INVOICES TO ADDRESS SHOWN IN

41 U.S.C. 253 (c) ( 10 U.S.C. 2304 (c) (

22. AUTHORITY FOR USING OTHER THAN FULL AND OPEN COMPETITION:

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

AWARD (To be completed by government)

CODE

11/17/2016 X

USAID/KOSOVO

USAID/Kosovo - RCO Ismail Qemali (Arberia), House no.1 Pristina, Kosovo 10000 00000

1200 AM 01/18/2017

Albert Rexhepi +38 2242

C. E-MAIL ADDRESS

arexhepi@usaid.gov bbulatovic@usaid.gov138-5959

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PAGE(S)

Michael Capobianco

AUTHORIZED FOR LOCAL REPRODUCTION

Previous edition is unusable

STANDARD FORM 33 (Rev. 9-97)

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

Issue Date November 17, 2016 Questions Due Date: November 25, 2016 Proposal Submission Due Date: January 18, 2017

Reference: Request for Proposal (RFP) No. SOL-169-17-000002

Subject: USAID/Serbia - Competitiveness Systems Strengthening (CSS) Activity

To All Prospective Offerors:

The United States Government, represented by the U.S. Agency for International Development (USAID) through its Mission in Serbia (USAID/Serbia), is soliciting proposals from qualified organizations interested in providing the services described in the attached solicitation. All types of organizations are eligible to compete. USAID encourages the participation, to the maximum extent possible, of local Serbian organizations, either as the prime contractor or as subcontractors in a consortium with an international organization. Due to an organizational conflict of interest, ACDI/VOCA is not eligible for this competition as either a prime or any tier subcontractor.

USAID/Serbia anticipates awarding one cost plus award fee type contract with a period of performance of four (4) years. The maximum amount of the contract (including costs and fee) is in the range of $12 and $14 million, subject to the availability of funds. Cost-effective approaches to achieving the results stated in the government requirement are highly encouraged. Offerors must propose costs that they believe are realistic and reasonable for the work. Cost proposals will be evaluated as part of the best value procedure in determining the contract award.

Only electronic proposals will be accepted. Proposals must be sent to Albert Rexhepi at arexhepi@usaid.gov and Branislav Bulatovic at bbulatovic@usaid.gov. Detailed requirements for Offerors’ proposals are outlined in Section L of this solicitation. Proposals must be signed by an official who is authorized to bind the organization and are to be submitted to USAID no later than the closing date and time stated above.

USAID’s anticipated procurement timeline is as follows:

Solicitation Issued: November 17, 2016 Questions Due: November 25, 2016 Answers Posted: November 30, 2016 2nd Questions Due: December 5, 2016 2nd Answers Posted: December 9, 2016 Proposals Due: January 18, 2017 Comp Range (if any): February 15, 2017 Revised Proposals Due: March 1, 2017 Award: March 22, 2017

RFP No. SOL-169-17-000002 USAID/Serbia - Competitiveness Systems Strengthening Activity

Issuance of this solicitation and the submittal of a proposal do not constitute a commitment on the part of the U.S. Government nor USAID to make an award; neither does it constitute an obligation for any costs incurred in the preparation and submission of a proposal.

Thank you for your interest in working with USAID/Serbia.

Sincerely, /s/

Michael Capobianco Regional Contracting Officer USAID/Kosovo

USAID/Serbia - Competitiveness Systems Strengthening Activity

TABLE OF CONTENTS

PART I – THE SCHEDULE

SECTION B – SERVICES AND PRICE/COSTS

B.1 PURPOSE

B.2 CONTRACT TYPE AND CONTRACT SERVICES

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

B.4 CONTRACT BUDGET AND CEILINGS

B.5 INDIRECT COST

B.6 ADVANCE UNDERSTANDING ON CEILING INDIRECT COST RATES AND FINAL

REIMBURSEMENT FOR INDIRECT COSTS

B.7 PAYMENT OF AWARD FEE

SECTION C – DESCRIPTION/SPECIFICATIONS/STATEMENT OF WORK

C.1 TITLE OF ACTIVITY

C.2 PURPOSE

C.3 BACKGROUND

C.4 THEORY OF CHANGE

C.5 OBJECTIVE

C.6 ACTIVITY PROGRESSION

C.7 COORDINATION WITH OTHER USAID PROJECTS AND STAKEHOLDERS

SECTION D – BRANDING AND MARKING

D.1 MARKING AND BRANDING STRATEGY

D.2 AIDAR 752.7009 MARKING (JAN 1993)

SECTION E – INSPECTION AND ACCEPTANCE

E.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE

E.2 INSPECTION AND ACCEPTANCE

SECTION F – DELIVERIES OR PERFORMANCE

F.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE

F.2 PERIOD OF PERFORMANCE

F.3 PLACE OF PERFORMANCE

F.4 PERFORMANCE STANDARDS

F.5 AUTHORIZED WORK WEEK

F.6 DELIVERABLES

F.7 KEY PERSONNEL

SECTION G – CONTRACT ADMINISTRATION DATA

G.1 CONTRACTING OFFICER’S AUTHORITY

G.2 AIDAR 752.7003 DOCUMENTATION FOR PAYMENT (NOV 1998)

G.3 CONTRACTING OFFICER’S REPRESENTATIVE (COR)

G.4 PAYING OFFICE

G.5 ACCOUNTING AND APPROPRIATION DATA

G.6 TECHNICAL DIRECTIONS/RELATIONSHIP WITH USAID

G.7 CONTRACTOR’S PRIMARY POINT OF CONTACT

G.8 CONTRACTOR’S PAYMENT ADDRESS

SECTION H – SPECIAL CONTRACT REQUIREMENTS

H.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE

H.2 AIDAR 752.225-70 SOURCE AND NATIONALITY REQUIREMENTS (FEB 2012)

H.3 ADS 302.3.5.19 USAID-FINANCED THIRD-PARTY WEB SITES (AUG 2013)

H.4 ADS 302.3.5.22 SUBMISSION OF DATASETS TO THE DEVELOPMENT DATA

LIBRARY (DDL) (OCT 2014)

H.5 AIDAR 752.7004 EMERGENCY LOCATOR INFORMATION (JUL 1997)

H.6 AIDAR 752.7007 PERSONNEL COMPENSATION (JULY 2007)

H.7 ADDITIONAL REQUIREMENTS FOR PERSONNEL COMPENSATION

H.8 AIDAR 752.7031 LEAVE AND HOLIDAYS (OCT 1989)

H.9 AIDAR 752.228-70 MEDICAL EVACUATION (MEDEVAC) SERVICES (JUL 2007)

H.10 AIDAR 752.222-70 USAID DISABILITY POLICY (DEC 2004)

USAID/Serbia - Competitiveness Systems Strengthening Activity

H.11 AUTHORIZED GEOGRAPHIC CODE

H.12 EXECUTIVE ORDERS ON TERRORISM FINANCING

H.13 NONEXPENDABLE PROPERTY PURCHASES AND INFORMATION TECHNOLOGY

RESOURCES

H.14 GOVERNMENT FURNISHED FACILITIES OR PROPERTY

H.15 FOREIGN GOVERNMENT DELEGATIONS TO INTERNATIONAL CONFERENCES 37

H.16 LOGISTICAL SUPPORT

H.17 LANGUAGE REQUIREMENTS

H.18 AIDAR 752.7032 INTERNATIONAL TRAVEL APPROVAL AND NOTIFICATION

REQUIREMENTS (APR 2014)

H.19 FRAUD REPORTING

H.20 ENVIRONMENTAL COMPLIANCE

H.21 DISCLOSURE OF INFORMATION

H.22 FACILITIES USED FOR RELIGIOUS ACTIVITIES

H.23 GRANTS UNDER CONTRACT

H.24 INSURANCE

PART II – CONTRACT CLAUSES

SECTION I

I.1 52.252-2 CLAUSES INCORPORATED BY REFERENCE (FEB 1998)

I.2 AIDAR 752.252-1 AIDAR SOLICITATION PROVISIONS INCORPORATED BY

REFERENCE (MAR 2015)

I.3 FAR 52.204-1 APPROVAL OF CONTRACT (DEC 1989)

I.4 FAR 52.229-8 TAXES – FOREIGN COST-REIMBURSEMENT CONTRACTS (MAR 1990)

…………………………………………………………………………………………………….46

I.5 AIDAR 752.209-71 ORGANIZATIONAL CONFLICTS OF INTEREST DISCOVERED

AFTER AWARD (JUN 1993)

I.6 AIDAR 752.242-70 PERIODIC PROGRESS REPORTS (OCT 2007)

I.7 AIDAR 752.7025 APPROVALS (APR 1984)

I.8 AIDAR 752.7101 VOLUNTARY POPULATION PLANNING ACTIVITIES (JUNE 2008) 48

I.9 AIDAR 752.229-71 REPORTING OF FOREIGN TAXES (JULY 2007)

I.10 AIDAR 752.222-71 NONDISCRIMINATION (JUNE 2012)

I.11 AIDAR 752.231-72 CONFERENCE PLANNING AND REQUIRED APPROVALS

(AUG 2013)

I.12 AIDAR 752.7036 USAID IMPLEMENTING PARTNER NOTICES (IPN) PORTAL FOR

ACQUISITION (JUL 2014)

I.13 AIDAR 752.7037 CHILD SAFEGUARDING STANDARDS (AUG 2016)

I.14 FAR 52.203-99 PROHIBITION ON CONTRACTING WITH ENTITIES THAT REQUIRE

CERTAIN INTERNAL CONFIDENTIALITY AGREEMENTS (APR 2015)

PART III – LIST OF DOCUMENTS, EXHIBITS, AND OTHER ATTACHMENTS

SECTION J – LIST OF ATTACHMENTS

PART IV – REPRESENTATIONS AND INSTRUCTIONS

SECTION K - REPRESENTATIONS, CERTIFICATIONS, AND OTHER STATEMENTS OF

OFFERORS

K.1 NOTICE LISTING SOLICITATION PROVISIONS INCORPORATED BY REFERENCE

……………………………………………………………………………………………………55

K.2 FAR 52.203-98 PROHIBITION ON CONTRACTING WITH ENTITIES THAT REQUIRE

CERTAIN INTERNAL CONFIDENTIALITY AGREEMENTS-REPRESENTATION (APR 2015)

……………………………………………………………………………………………………55

K.3 FAR 52.204-8 ANNUAL REPRESENTATIONS AND CERTIFICATIONS (APR 2016) ... 56

K.4 FAR 52.209-5 CERTIFICATION REGARDING RESPONSIBILITY MATTERS

K.5 FAR 52.209-7 INFORMATION REGARDING RESPONSIBILITY MATTERS (JUL 2013)

……………………………………………………………………………………………………60

K.6 FAR 52.209-11 REPRESENTATION BY CORPORATIONS REGARDING

DELINQUENT TAX LIABILITY OR A FELONY CONVICTION UNDER ANY FEDERAL

LAW (FEB 2016) ............................................... ……………………………………………………….61

K.7 FAR 52.222-22 PREVIOUS CONTRACTS AND COMPLIANCE REPORTS (FEB 1999) ...

USAID/Serbia - Competitiveness Systems Strengthening Activity

…………………………………………………………………………………………………...61

K.8 FAR 52.222-25 AFFIRMATIVE ACTION COMPLIANCE (APR 1984)

K.9 FAR 52.225-2 BUY AMERICAN CERTIFICATE (MAY 2014)

K.10 FAR 52.230-1 COST ACCOUNTING STANDARDS NOTICES AND CERTIFICATION

(OCT 2015)

K.11 FAR 52.230-7 PROPOSAL DISCLOSURE—COST ACCOUNTING PRACTICE

CHANGES (APR 2005)

K.12 INSURANCE—IMMUNITY FROM TORT LIABILITY

K.13 AUTHORIZED NEGOTIATORS

K.14 SIGNATURE

SECTION L – INSTRUCTIONS, CONDITIONS, AND NOTICES TO OFFERORS

L.1 FAR 52.252-1 SOLICITATION PROVISIONS INCORPORATED BY REFERENCE

(FEB 1998)

L.2 FAR 52.216-1 TYPE OF CONTRACT (APR 1984)

L.3 FAR 52.233-2 SERVICE OF PROTEST (SEP 2006)

L.4 GENERAL INSTRUCTIONS TO OFFERORS

L.5 PROPOSAL SUBMISSION

L.6 INSTRUCTIONS FOR THE PREPARATION OF THE TECHNICAL PROPOSAL

L.7 INSTRUCTIONS FOR THE PREPARATION OF THE COST PROPOSAL

SECTION M – EVALUATION FACTORS FOR AWARD

M.1 GENERAL INFORMATION

M.2 TECHNICAL EVALUATION CRITERIA

M.3 EVALUATION OF PAST PERFORMANCE

M.4 COST PROPOSAL EVALUATION

M.5 DETERMINATION OF COMPETITIVE RANGE

M.6 SOURCE SELECTION

USAID/Serbia - Competitiveness Systems Strengthening Activity

PART I – THE SCHEDULE

SECTION B – SERVICES AND PRICE/COSTS

B.1 PURPOSE

The purpose of this contract is to provide technical assistance and other services as described in detail in Section C for the implementation of USAID/Serbia’s program entitled “Competitiveness Systems Strengthening Activity (CSS).”

B.2 CONTRACT TYPE AND CONTRACT SERVICES

This is a cost plus award fee (CPAF) contract. For the consideration set forth below, the Contractor must achieve the performance objectives and deliverables or outputs described in this contract.

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

a) The estimated cost for the performance of the work required hereunder, exclusive of award fee and base fee, is $TBD. The base fee is $TBD. The maximum award fee is $TBD. Total estimated cost plus all fees, if any, is $TBD.

b) Within the estimated CPAF specified in paragraph a) above, the amount currently obligated and available for reimbursement of allowable costs incurred by the Contractor (and payment of fee, if any) for performance hereunder is $TBD. The Contractor must not exceed the aforesaid obligated amount.

B.4 CONTRACT BUDGET AND CEILINGS

a) The contract budget found herein is based on the Contractor’s original proposal and/or final proposal revision, which was accepted by USAID through award of this contract.

b) The following itemized budget sets forth the estimates for individual line items of cost:

TBD

B.5 INDIRECT COST

Pending establishment of revised provisional or final indirect cost rates, allowable indirect costs must be reimbursed on the basis of the following negotiated provisional or predetermined rates and the appropriate bases:

Description Rate Base Type Period

% 1/ 1/ 1/ % 2/ 2/ 2/ % 3/ 3/ 3/

1/ Base of Application:

Type of Rate:

USAID/Serbia - Competitiveness Systems Strengthening Activity

Period:

2/ Base of Application:

Type of Rate:

Period:

3/ Base of Application:

Type of Rate:

Period:

B.6 ADVANCE UNDERSTANDING ON CEILING INDIRECT COST RATES AND

FINAL REIMBURSEMENT FOR INDIRECT COSTS

Reimbursement for indirect costs must be at the lower of the negotiated final (or predetermined) rates or the following ceiling rates:

Description Rate Base Period

% 1/ 1/ % 2/ 2/ % 3/ 3/

1/ Base of Application:

Period:

2/ Base of Application:

Period:

3/ Base of Application Period:

The Government will not be obligated to pay any additional amount should the final indirect cost rates exceed the negotiated ceiling rates. If the final indirect cost rates are less than the negotiated ceiling rates, the negotiated rates will be reduced to conform to the lower rates.

This understanding must not change any monetary ceiling, obligation, or specific cost allowance or disallowance. Any changes in classifying or allocating indirect costs require the prior written approval of the Contracting Officer.

B.7 PAYMENT OF AWARD FEE

The Contractor may earn and be paid all or a portion of an award fee for performance under this contract. The Government's purpose in granting an award fee is to encourage and reward superior contract performance.

The maximum award fee must be made available to the Contractor in five (5) increments, with the first evaluation occurring six months after the award date, and the remaining four evaluations occurring annually, on the anniversary of the award date, as specified below:

USAID/Serbia - Competitiveness Systems Strengthening Activity

Period of Performance Period*

(Start/End date) Amount of Award

Fee Available First Six Months TBD at Award TBD First Year TBD at Award TBD Second Year TBD at Award TBD Third Year TBD at Award TBD Fourth Year TBD at Award TBD Maximum Award Fee Available

TBD

* Period will be completed upon contract award.

The determination of the award fee, if any, earned by the Contractor must be in accordance with the Award Fee Evaluation Plan (see section J). Unearned award fee cannot rollover from one award fee increment to the next award fee increment.

Payment of any award fee earned by the Contractor must not be subject to the withholding provisions of the clause of this contract entitled "Allowable Cost and Payment" (FAR 52.216-7) clause.

[END OF SECTION B]

USAID/Serbia - Competitiveness Systems Strengthening Activity

SECTION C – DESCRIPTION/SPECIFICATIONS/STATEMENT OF WORK

C.1 TITLE OF ACTIVITY

Competitiveness Systems Strengthening Activity (CSS)

C.2 PURPOSE

The overall goal of the CSS activity is to eliminate obstacles to Serbia’s competitiveness in order to generate export-led growth, and greater integration with European and global markets.

C.3 BACKGROUND

Detailed background information relevant to this activity can be found in Attachment 1 of this solicitation (“Development Challenges”).

C.4 THEORY OF CHANGE

As described in USAID’s Value Chain Development Wiki, and for purposes of this contract, value chains encompass the full range of activities and services required to bring a product or service from its conception to sale in its final markets – whether local, national, regional, or global. Value chains include input suppliers, producers, processors, and buyers, as well as the support services and enabling environments that form a dynamic market system.

To succeed in global markets and to respond effectively to market opportunities, entire sectors must be able to deliver a product to the consumer more efficiently, with a higher quality and/or in a more unique form. Even in local markets, firms need to upgrade and create a competitive advantage in order to be able to compete with firms and industries from across the globe. The globalization of markets ties the sustainability of firms to the competitiveness of the sectors in which they participate.

In this way, competitiveness at the firm and sector levels is interdependent. Increasing the competitiveness of the firm is only effective and sustainable when the competitiveness of the industry is raised by interventions at all levels of the value chain.

Upgrading1 at the sector level focuses on increasing the competitiveness of all activities involved in the production, processing, and/or marketing of a product or service and mitigating the constraints that influence value chain performance. However, essential to upgrading are both the opportunities and abilities to learn and the incentives for firms to invest in upgrading; if firms do not foresee viable benefits to investments, like higher incomes, secure markets or lower risks, they are unlikely to spend time or resources on upgrading.

This is possible to achieve only by having an efficient system in place with a multi-dimensional process that goes beyond the value chain participants and involves all related

1 Upgrading is defined as change, improvement or innovation that increases firm and/or value chain competitiveness in any of the following categories: Process upgrading (such as improving product quality, but defined broadly to include any changes that result in the final product being able to command a higher final price because it is more valuable to the consumer); Functional upgrading (such as moving to a new, higher value-added level in the value chain that moves the firm closer to the final consumer, requires the firm to take on new functions, and positions the firm to receive a higher unit price for the product);

Channel upgrading (such as selling into a new market channel within the value chain, or operating in more than one channel at the same time); Chain (inter-sectoral) upgrading (such as moving to a new value chain).

USAID/Serbia - Competitiveness Systems Strengthening Activity stakeholders that influence the industry —from input suppliers to end market buyers; the support markets that provide technical, business and financial services to the industry; and the business environment in which the industry operates. For the purpose of the CSS activity, as implemented by the Contractor, we define these actors, the relationships between them, the financial and non-financial resources they make available, including technical, business and financial services, and the formal and informal rules which drive the behaviors of these actors and the results they produce as the competitiveness system. There are many different types of organizations interacting within this system, including firms, cooperatives, associations, clusters, business service providers, R&D institutions and the like, including both governmental agencies and non-governmental organizations (NGOs). The quality of relationships between different stakeholders is a key factor affecting the functioning of the system.

In turn, the CSS activity, as implemented by the Contractor, must seek to leverage the relationships and capacities that accrue to the selected value chains to improve cooperation and coordination among value chain actors in order to upgrade the products and services they produce. As discussed further in the Development Challenges (Attachment 1), as well as the Competitiveness Assessment and Political Economy Analysis referred to in Attachment 1, small and medium-sized enterprise (SME) productivity constraints are exacerbated by the anemic development of value chains and low levels of trust among firms. CSS, as implemented by the Contractor, must focus on improving the formal and informal linkages between value chain actors to reduce transaction costs, create economies of scale, and enable the sharing of skills and resources to enhance product quality through common production standards. Improving these linkages will facilitate collective learning and risk sharing while increasing the potential for upgrading and innovation gains.

The CSS activity, as implemented by the Contractor, must also focus on identifying the competitiveness system related to the value chains that will be the focus of the activity, and strengthening the capacities of and relationships between system actors in order to improve the productivity and competitiveness2 of key value chains within this sector. The project’s theory of change is that if the relationships within and around these value chains are strengthened, and if the capacities of actors within and beyond these value chains are improved, the program will improve incentives for upgrading throughout the sector and increase the competitiveness of the sector and the SMEs within it. While the Contractor must focus on selected value chains within one sector only, project activities are expected to create a model for strengthening the competitiveness of key sectors, which could produce a “ripple effect” inducing private investments and replication of project successes demonstrated or opportunities identified in other sectors, as well.

C.5 OBJECTIVE

The purpose of the CSS activity is to enable Serbian SMEs to upgrade and become more competitive in local, regional and international markets. This will be achieved through one main objective, which is to increase the competitiveness of selected value chains.

The Contractor’s interventions under this objective must be aimed at identifying gaps within the current competitiveness system and strengthening these through capacity development and the facilitation of partnerships among system actors, and leveraging these advances to improve productivity and competitiveness.

2 Competitiveness is defined as the ability and performance of a firm, sub-sector or country to sell and supply goods and services in a given market, in relation to the ability and performance of other firms, sub-sectors or countries in the same market.

USAID/Serbia - Competitiveness Systems Strengthening Activity

C.6 ACTIVITY PROGRESSION

In order to achieve the objective, the Contractor must incorporate the following steps into its performance of the statement of work under the CSS contract:

Step 1: Sector Selection (done at time of contract award) Step 2: Value Chain Selection Analysis and Value Chain Selection Step 3: Baseline Assessment of Selected Value Chains and Development of Value Chain

Action Plans Step 4: Implementation of Activities

Step 5: Continuous Learning

While the above list is sequential, the steps above will interrelate with one another; for example, the implementation of activities drives improvements within the value chains, and continuous learning drives the refinement of activities toward those that are most effective in strengthening the selected value chains and readjusts activities to respond to changes in the competitiveness system. The steps and how they interrelate are discussed in greater detail below.

C.6.a Step 1: Sector Selection

The Contractor must focus its interventions under the CSS activity on selected value chains in one sector only. The chosen sector is (to be inserted at time of award).

C.6.b Step 2: Value Chain Selection Analysis and Value Chain Selection

The Contractor must conduct an analysis to select a minimum of two value chains to upgrade. For purposes of setting the targets for the Contractor’s interventions in Step 3, the targets to be set for each value chain will be dependent upon the number of value chains selected. Less ambitious targets will be required per value chain if more than two value chains are selected.

The exact scope of the analysis will be agreed upon by the Contractor and the Contracting Officer’s Representative (COR), but must consider the following issues:

the firms and actors that operate within the sector;

the nature of relationships between these actors, including their levels of cooperation and competition;

the state of institutions, technology, service providers, and other production conditions;

policy constraints limiting development;

the financial and non-financial resources available, including technical, business and financial services; and the formal and informal rules, which drive the behaviors of these actors.

Based upon this analysis, the Contractor must recommend, with the COR approving, those value chains within the sector with the greatest potential to contribute to sustainable upgrading of the selected sector as a whole.

USAID/Serbia - Competitiveness Systems Strengthening Activity

C.6.c Step 3: Baseline Assessment of Selected Value Chains and Development of Value Chain Action Plans

The Contractor must develop a methodology and conduct a baseline assessment of the selected value chains, proposed targets, and develop the value chain action plans that identify the interventions the Contractor will implement in Step 4. A baseline survey collects quantitative data that presents an analysis of the situation prior to the Contractor’s interventions, which permits an analysis of the changes in the baseline situation and the impact of the project in subsequent years.

The Contractor must propose the target that the Contractor will achieve based on the action plan.

The target must be approved by USAID prior to starting any interventions in Step 4. The target must be measured as an increase in sales for the value chain, measured in US dollars and adjusted for currency fluctuations. An independently verifiable method for measuring achievement of the target must be utilized, e.g. an established index.

The Contractor’s implementation of the CSS activity must be grounded in an understanding of the competitiveness system in its totality, which will drive the selection of project interventions. The Contractor must update this analysis throughout project implementation to account for changes within the system as well as the broader economic, institutional and political environment, to enable the CSS activity to shift approaches and resources from where progress is unlikely to areas where there is interest and willingness to engage.

C.6.d. Step 4: Implementation of Activities

Once USAID has approved the proposed value chain targets, implementation of activities will begin.

The Contractor must propose methods of intervention consistent with the following principles:

1) Focus on root causes. The Contractor must place emphasis on those constraints to competitiveness that are both binding and amenable to change. Alleviating these particular constraints will allow for more systemic change to stimulate SME growth.

2) Facilitate change through the local system. Over time it has been observed that the prior firm-level approach, while effective at creating change within those individual firms, has not been able to stimulate broader change at a systemic level. Therefore the Contractor must use a facilitation approach3 in its implementation. The Contractor must seek to strengthen the system for SME development in Serbia by facilitating the growth of relationships among SMEs, and between SMEs, support institutions, scientific and research and development institutions, and financial institutions. The quality of these relationships is key to facilitating investments in upgrading and improving investments. Thus the focus of the Contractor’s interventions must be on directly investing in the capacity and network development of these key local actors through a self-selection process with USAID and its partners. By facilitating through local actors, which is consistent with USAID’s Local Systems Framework4, the relationships formed and capacities developed will inherently rest within the local system and will be more likely to be sustained over time.

3 More information on how to use a facilitation approach for market systems and value chains can be found at www.microlinks.org.

4 Found at https://www.usaid.gov/policy/local-systems-framework.

USAID/Serbia - Competitiveness Systems Strengthening Activity

3) Let local partners self-select. The self-selection process of partnership is critical to the success of a facilitation approach. This principle can be utilized at a more macro level through a competitive selection process for sectors, value chains, or areas of focus. At a more micro level, an open collaboration offer can be extended, but the Contractor must work with those that have the most enthusiastic response within the competitiveness system, whether these are anchor firms in a value chain, local economic development offices, Regional Development Agencies, business associations, or clusters. If the original local partners come to find the collaboration is no longer of interest for their investment, the Contractor will be free to let them go and seek interest elsewhere. The desire to invest in the change must come from within the local system.

4) Leverage local resources. This approach also uses USAID resources more strategically, deploying them only when local actors also invest. The Contractor and its implementing partners must seek this effect to leverage additional resources from the private sector, the GoS, or other donors, as appropriate. As the USAID investment declines over the life of the CSS activity, the local actors have a precedent of investment and will be more prepared to continue that investment after the CSS activity ends.

The Contractor is encouraged to suggest innovative ideas and pathways to achieve the CSS activity’s main objective, and to invest project resources in piloting and refining approaches to improve the competitiveness system over the course of project implementation.

The Contractor is authorized to utilize a Grants Under Contract (GUC) mechanism as part of its interventions to upgrade the selected value chains.

All of the Contractor’s interventions in performance of this statement of work under the CSS contract must be approved by the COR via the Annual Work Plans and Value Chain Action Plans.

C.6.e. Step 5: Continuous Learning

While USAID’s Evaluation Policy calls for evaluative activities that focus on performance and impact, learning can also include activities between monitoring and impact evaluation and can underscore the need for mid-course corrections, while improving the results of project implementation. The CSS activity has been designed to enable adaptive approaches to achieving objectives, informed by ongoing systems and contextual analysis. The Contractor must continually assess the effectiveness of the interventions, evaluate whether those interventions are succeeding, apply lessons learned and adapt work appropriately.

In addition to presenting a Performance Monitoring and Evaluation Plan (PMEP), the Contractor must implement a methodology, approved by USAID, that identifies the Contractor’s approach to integrating monitoring, evaluation and learning throughout contract implementation, how they will capture how results are being achieved and how they will integrate the results of ongoing analysis as well as feedback from partners, stakeholders and beneficiaries into project implementation.

USAID/Serbia recognizes that the success of the CSS Activity will depend on the contributions of actors directly and indirectly engaged with the project, as well as well as institutions and processes beyond the manageable interests of the Contractor, and that changes in the local context may have implications for the achievement of results. Significant shifts within the system or the broader country context may require the adaptation of approaches and the revisiting of indicators to address these changes. As discussed above, the Contractor must regularly revisit the baseline assessment and

USAID/Serbia - Competitiveness Systems Strengthening Activity the value chain action plans referred to in Section F.6.b below to assess progress and whether assumptions continue to hold, and may request changes to the PMEP with the concurrence of

USAID.

If necessary, the Contractor must collaborate with an external USAID team to assist in the process of designing a robust, high-quality and efficient monitoring and evaluation (M&E) system that can adequately support the data needs of USAID/Serbia and a mandatory formal external evaluation process over the life of the project.

C.7 COORDINATION WITH OTHER USAID PROJECTS AND STAKEHOLDERS

The Contractor must implement the contract in close coordination with other USAID and other donor-supported projects in Serbia, and regionally to the extent there is alignment with the contract’s objectives. In particular, these other projects include the Business Enabling Project (BEP) and any successor activity focused on strengthening the networks, processes and capacities of key Serbian government and private sector actors to develop and implement business environment reforms that have been identified as priorities by the private sector. For example, both BEP and CSS might be engaged in interventions to address SME access to finance, with BEP focused on addressing the overall regulatory environment and supply side issues and CSS seeking to improve SME access to finance within the selected value chains as part of its overall efforts to improve SME competitiveness through value chain strengthening.

The Contractor must coordinate closely with the EU and its implementing partners; areas of potential complementarity may include the provision of technical assistance to support partner SMEs in their efforts to access funds through the EU-funded guarantee facility or grants, coordinating with the European Bank for Reconstruction and Development (EBRD) and the implementer of the EU’s new Local Economic Development project in their efforts to support the development of a local business advisory market, and engaging the Belgrade Science and Technology Park in efforts to connect partner SMEs within with research and development institutions.

Other donors beyond the EU that are expected to be active in areas complementary to CSS are GIZ, SDC and SECO, and the World Bank. Opportunities for achieving synergies must be reviewed regularly by the Contractor; in particular with SDC and SECO in the areas of value chain strengthening and vocational skills training and with the World Bank in the areas of technology transfer and sector policy development. Alignment with and buy-in from GoS entities, including the Ministry of Economy (MoE), Development Agency of Serbia (RAS), Regional Development Agencies (RDAs) and Local Economic Development Offices (LEDOs), during implementation will also be important to longer-term success and replication possibilities.

In addition, the private sector will be a significant partner in this implementation approach.

Therefore, coordination and dialogue with anchor firms, representative SMEs, and relevant industry bodies will be essential throughout the life of the CSS activity. The Contractor may pursue these partnerships through the solicitation of sub-contractors, grants under contract, memoranda of understanding, or co-funding of project interventions where feasible (including options for incorporating Development Credit Authority models). The Contractor’s partnerships with the private sector and other key stakeholders are a necessary condition for successfully addressing the contract’s main objective.

[END OF SECTION C]

USAID/Serbia - Competitiveness Systems Strengthening Activity

SECTION D – BRANDING AND MARKING

D.1 MARKING AND BRANDING STRATEGY

The Contractor shall submit a final branding implementation plan and marking plan no later than 30 days after award. The plan must be in accordance with ADS 320.3.2. The plan must be submitted to the COR for approval.

The Contractor shall comply with the requirements of the policy directives and required procedures outlined in USAID Automated Directive System (ADS) 320.3.2 “Branding and Marking in USAID Direct Contracting” at http://www.usaid.gov/policy/ads/300/320.pdf; and USAID “Graphic Standards Manual” available at www.usaid.gov/branding or any successor branding policy.

Anticipated elements of marking plan: Deliverables to be marked, include products, equipment and inputs delivered; places where program activities are carried out; external public communications, studies, reports, publications and informative and promotional products; and workshops, conferences, fairs, media related activities and any such events. Publications authored by Contractors or other non- USAID employees must include the following disclaimer on the title page: “The author’s views expressed in this publication do not necessarily reflect the views of the United States Agency for International Development or the United States Government.” Threats and restrictions to the security of the program need to be identified and assessed in order to request any necessary exception from the marking requirement in accordance with ADS 320.3.2.

USAID’s web page contains the electronic version of the Graphic Standards Manual that is compulsory for all Contractors. Marking under this contract shall comply with the “USAID Graphics Standards Manual” available at http://www.usaid.gov/work-usaid/branding/acquisition-awards.

D.2 AIDAR 752.7009 MARKING (JAN 1993)

a) It is USAID policy that USAID-financed commodities and shipping containers, and project construction sites and other project 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 project construction sites and other project 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 project site is located.

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

c) 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.

[END OF SECTION D]

USAID/Serbia - Competitiveness Systems Strengthening Activity

SECTION E – INSPECTION AND ACCEPTANCE

E.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE

The following Contract clauses pertinent to this section are hereby incorporated by reference (by Citation Number, Title, and Date) in accordance with the clause at FAR "52.232-2 CLAUSES INCORPORATED BY REFERENCE" in Section I of this Contract. See FAR 52.252-2 for an Internet address (if specified) for electronic access to the full text of a clause.

NUMBER TITLE DATE

FAR (48 CFR Chapter 1)

52.204-14 SERVICE CONTRACT REPORTING

REQUIREMENTS JAN 2014

52.246-5 INSPECTION OF INSPECTION OF

SERVICES--COST-REIMBURSEMENT APR 1984

E.2 INSPECTION AND ACCEPTANCE

USAID inspection and acceptance of services, reports and other required deliverables or outputs shall take place at principal place of performance or at any other location where the services are performed and reports and deliverables or outputs are produced or submitted. Unless otherwise stated, the designated Contracting Officer's Representative (COR) has been delegated authority to inspect and accept all services, reports and required deliverables or outputs.

[END OF SECTION E]

USAID/Serbia - Competitiveness Systems Strengthening Activity

SECTION F – DELIVERIES OR PERFORMANCE

F.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE

In accordance with FAR "52.252-2 CLAUSES INCORPORATED BY REFERENCE" in Section I of this contract, the following contract clauses are hereby incorporated by reference, with the same force and effect as if they were given in full text. See http://acquisition.gov/far/index.html and http://www.usaid.gov/sites/default/files/documents/1868/aidar_0.pdf for electronic access to the full text of a clause.

FEDERAL ACQUISITION REGULATION (48 CFR Chapter 1)

NUMBER TITLE DATE

52.242-15 STOP-WORK ORDER AUG 1989

ALTERNATE I APR 1984

F.2 PERIOD OF PERFORMANCE

The period of performance is four (4) years from date of contract award.

F.3 PLACE OF PERFORMANCE

The place of performance is Serbia.

F.4 PERFORMANCE STANDARDS

USAID will evaluate the Contractor’s performance in accordance with FAR 42.15, corresponding USAID procedures, and the Contractor’s adherence to the annual work plan, reporting against its Performance Monitoring and Evaluation Plan (PMEP), and quality reports described in Section F.6 below. USAID will evaluate the Contractor’s performance during the initial, intermediate, and final periods of the contract in accordance with the Contractor Performance Assessment Reporting System (CPARS). The Contracting Officer and the COR will jointly conduct the evaluation of the Contractor’s overall performance. This evaluation will form the basis of the Contractor’s permanent performance record under this contract.

F.5 AUTHORIZED WORK WEEK

The standard work week is from Monday through Friday. No overtime or premium pay is authorized under this Contract. The Contractor is authorized up to a five-day work week for long-term staff. A six-day work week may be authorized on a case by case basis with the prior written approval of the designated Contracting Officer’s Representative (COR).

F.6 DELIVERABLES

In addition to other required reports and deliverables in this contract, the Contractor must deliver the following for the approval of the Contracting Officer’s Representative (COR). The Contractor will allow at least 10 business days for review and comments from the COR on any draft report submission.

USAID/Serbia - Competitiveness Systems Strengthening Activity

All reports and plans are subject to written approval by the COR, except for the Closeout plan and the Property Disposition plan, which are subject to Contracting Officer’s approval.

F.6.a Value Chain Selection Analysis

The Contractor may select the tool or tools for analysis of these relationships (e.g. value chain analysis, political economy analysis, organizational network analysis). The analysis must explain the rationale for selection of the value chains, how each value chain operates, and the analysis of relationships within the selected value chains must explain why the chains function in the way that they do. The sector analysis must be completed within 60 days after Contract award.

F.6.b Baseline Assessment and Value Chain Action Plans

The Contractor may select the tool or tools for the baseline assessment of the selected value chains.

The assessment must identify the current baseline of the value chain, the target for upgrading that the Contractor will reach, the interventions needed to address the constraints identified, and assess the feasibility of addressing each constraint in a sustainable manner. The assessment must also validate the probability of realizing independent investment and replication of project successes as well as indicate the degree to which successes are scalable independent of project interventions. The Contractor must provide updates on the baseline assessment over the course of project implementation and consider the implications of this assessment for project interventions in quarterly reports or in discussion with the COR.

The value chain action plans must expressly identify and detail interventions and activities in each selected value chain. The value chain action plans function as the strategy for each value chain and the Contractor must complete all activities included in the annual value chain action plans. These value chain action plans will be placed as annexes to the annual work plan (see below). The action plans, as with the annual work plans, are living documents and updates to these plans can occur throughout the life of the contract. At a minimum, changes and updates must be captured and incorporated into the annual work plans and are due according to the annual work plan schedule.

Each value chain action plan must contain a causal model5 (i.e. theory of change), interventions, annual targets, and a sustainability strategy. Each value chain action plan must be approved by the COR prior to the execution of interventions and activities.

Both the baseline analysis and value chain action plans must be completed within 60 days after value chain selections are agreed upon by USAID.

F.6.c Annual Work Plans

Annual Work Plan – Year 1: Within 30 days after Contract award, the Contractor must submit an initial-six month work plan to the COR. No later than 150 days after contract award, the Contractor must submit a second six month work plan that adequately reflects findings from the value chain selection analysis, the value chain baseline analyses, along with the final Performance Monitoring and Evaluation Plan. The work plan will be developed in consultation with relevant CSS partners and stakeholders.

5 See Attachment, Developing a Causal Model for Private Sector Development Programs, for guidance.

USAID/Serbia - Competitiveness Systems Strengthening Activity

Subsequent Annual Work Plans: Within 60 days before the completion of the first year of the Contract, the Contractor must provide an annual work plan that includes the value chain action plans as annexes and any additional activities planned for the upcoming year (e.g. addition of any new value chains, analyses, etc.).

Annual work plans are living documents, and may be amended to on an as needed basis to address changes in context over the course of project implementation at the initiative of the Contractor or USAID and with the approval of the COR.

F.6.d Performance Monitoring and Evaluation Plan (PMEP)

The PMEP must specify indicators, targets, and methodologies that allow the Contractor and USAID/Serbia to monitor the progress of project activities towards achieving expected results and targets related to project objectives and accountability. Measuring specific outputs, outcomes and impacts will facilitate a better understanding of which approaches are working under which conditions, and which activities need to be refined or strengthened within each of the respective components of the project. The final PMEP must be submitted no later than 150 days after contract award.

In developing the PMEP, the Contractor must report on relevant indicators defined under USAID/Serbia’s CDCS Results Framework (Attachment 2) to the extent CSS activities address these indicators. In addition, USAID is mandated to measure and update various other result frameworks, these include: the Balkan Regional Economic Growth (B-REDI) results framework, the Microenterprise Results Reporting (MRR) and Trade Capacity Building (TCB) Survey. The Contractor must familiarize themselves with these results frameworks and incorporate key indicators from them into the proposed CSS PMEP to the extent CSS activities and results address the above mentioned frameworks.

The Contractor is encouraged to propose additional, specific metrics that uniquely capture the effectiveness and impact of the CSS activity. Specifically, the Contractor is encouraged to consider including indicators deriving from Social Network Analysis (SNA) or Organizational Network Analysis (ONA) that will be able to monitor the progress of efforts to strengthen relationships within the competitiveness system, and the impact of these efforts on the behaviors and relationships of system actors.

For each indicator proposed in the PMEP, a brief narrative must be provided that includes the following:

Data collection method;

Data reliability and timeliness (i.e., intrinsic data quality); and Indicator validity (i.e., the relationship between the indicator and the desired output or result).

Wherever possible and appropriate, the PMEP must be presented in tabular and/or graphical forms that portray progress over time, affording an executive audience an immediate sense of progress or the lack thereof.

F.6.e Quarterly Progress Reports

USAID/…