Amend._no._1_LIFE_SOL-268-16-000003.pdf

5. PROJECT NO.

CODE

7. ADMINISTERED BY

2. AMENDMENT/MODIFICATION NO.

CODE

6. ISSUED BY

8. NAME AND ADDRESS OF CONTRACTOR

4. REQUISITION/PURCHASE REQ. NO. 3. EFFECTIVE DATE

9A. AMENDMENT OF SOLICITATION NO.

9B. DATED

PAGE OF PAGES

10A. MODIFICATION OF CONTRACT/ORDER NO.

10B. DATED

BPA NO. 1. CONTRACT ID CODE

FACILITY CODE CODE

Offers must acknowledge receipt of this amendment prior to the hour and date specified in the solicitation or as amended, by one of the following methods:

The above numbered solicitation is amended as set forth in Item 14. The hour and date specified for receipt of Offers

E. IMPORTANT:

is extended

(a) By completing Items 8 and 15, and returning __________ copies of the amendment; (b) By acknowledging receipt of this amendment on each copy of the offer submitted; or (c) By separate letter or telegram which includes a reference to the solicitation and amendment numbers. FAILURE OF YOUR AC- KNOWLEDGMENT TO BE RECEIVED AT THE PLACE DESIGNATED FOR THE RECEIPT OF OFFERS PRIOR TO THE HOUR AND DATE SPECIFIED MAY is not extended.

12. ACCOUNTING AND APPROPRIATION DATA

(REV. 10-83)

is required to sign this document and return ___________ copies to the issuing office. is not, A. THIS CHANGE ORDER IS ISSUED PURSUANT TO: (Specify authority) THE CHANGES SET FORTH IN ITEM 14 ARE MADE IN THE CONTRACT ORDER NO. IN ITEM 10A.

15C. DATE SIGNED

B. THE ABOVE NUMBERED CONTRACT/ORDER IS MODIFIED TO REFLECT THE ADMINISTRATIVE CHANGES SET FORTH IN ITEM 14, PURSUANT TO THE AUTHORITY OF FAR 43.103(b).

RESULT IN REJECTION OF YOUR OFFER. If by virtue of this amendment you desire to change an offer already submitted, such change may be made by telegram or letter, provided each telegram or letter makes reference to the solicitation and this amendment, and is received prior to the opening hour and date specified.

C. THIS SUPPLEMENTAL AGREEMENT IS ENTERED INTO PURSUANT TO AUTHORITY OF: The FAA of 1961, as amended & E.O. 11223

D. OTHER

BY

Contractor

16C. DATE SIGNED

14. DESCRIPTION OF AMENDMENT/MODIFICATION

16B. UNITED STATES OF AMERICA

Except as provided herein, all terms and conditions of the document referenced in Item 9A or 10A, as heretofore changed, remains unchanged and in full force and effect.

15A. NAME AND TITLE OF SIGNER 16A. NAME AND TITLE OF CONTRACTING OFFICER

15B. CONTRACTOR/OFFEROR

STANDARD FORM 30 STANDARD FORM 30

(Type or print) (Type or print)

(Organized by UCF section headings, including solicitation/contract subject matter where feasible.)

(No., street, county, State and ZIP Code)

(If other than Item 6)

(Specify type of modification and authority)

(such as changes in paying office, appropriation date, etc.)

(If required)

(If applicable)

(SEE ITEM 11)

(SEE ITEM 13)

(X)

13. THIS ITEM APPLIES ONLY TO MODIFICATIONS OF CONTRACTS/ORDERS,

IT MODIFIES THE CONTRACT/ORDER NO. AS DESCRIBED IN ITEM 14.

11. THIS ITEM ONLY APPLIES TO AMENDMENTS OF SOLICITATIONS

AMENDMENT OF SOLICITATION/MODIFICATION OF CONTRACT

(Signature of person authorized to sign) (Signature of Contracting Officer)

1 188

Office of Procurement USAID/Egypt 1A Ahmed Kamel St., Off El-laselki St.

New Maadi Cairo, Egypt

To all Offerors/Bidders 268-16-000003

X 04/13/2016

The purpose of this amendment is to revise the Request for Proposal No. SOL-268-16-000003 (see revisions highlighted) issued on April 13, 2016 and to answer questions received regarding the subject RFP. The main changes include:

- changes to the Statement of work in section C;

- changes to the Instructions in section L;

- minor change to section M;

- add a summary of USAID local compensation plan;

- add contractor performance short form and partner information form; and

- add the logical framework and UNHCR Host Communities.

Aaron Ruble

Contracting Officer

04-28-16

Issuance Date: Apr 13, 2016 Deadline for Questions: April 26, 2016, 15:00 (Local Time in Lebanon) Closing Date: May 12, 2016 Closing Time: 15:00 (Local Time in Lebanon)

Subject: Request for Proposals/Solicitation SOL-268-16-000003

USAID/LEBANON – LIVELIHOODS AND INCLUSIVE FINANCE EXPANSION

PROJECT

To All Prospective Offerors:

The United States Government, represented by the U.S. Agency for International Development (USAID), Lebanon, is seeking proposals from qualified organizations to implement one of USAID/Lebanon’s flagship economic growth programs. The purpose of this program is to develop and implement a program to improve livelihoods, support microfinance and expand inclusive finance in Lebanon, as described in Section C of the attached Request for Proposals (RFP).

This procurement will be conducted under full and open competition procedures, pursuant to Part 15 of the Federal Acquisition Regulation (FAR) (48 CFR Chapter 1). All types of organizations are eligible to compete. 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.

Subject to the availability of funds, USAID/Lebanon anticipates awarding a Cost Plus Fixed Fee completion-type contract as a result of this solicitation, covering an estimated period of five (5) base years and two (2) options. One and/or the two options may be exercised within the five year base period of performance and will only be exercised upon availability of funds and the conditions specified in FAR 17.207 are met. The estimated cost range for this procurement is a $10-15 Million base and two $5 Million options. Revealing the estimated cost range for the contract does not mean that Offerors will necessarily strive to meet the maximum amount estimated. Offerors must propose costs that they believe are realistic and reasonable for the work described herein.

USAID encourages the participation to the maximum extent possible of small business concerns, veteran owned small businesses, service-disabled veteran small businesses, HUBZone small businesses, small disadvantaged businesses, and women-owned small businesses in this activity as the prime Contractor or as subcontractors.

If substantive questions are received, which affect the response to the solicitation, or if changes are made to the closing date and time, as well as any other aspects of the RFP, this solicitation will be amended. Any amendments to this solicitation will be issued and posted on the Federal Business Opportunities (FedBizOpps) website. Offerors are encouraged to check this website (http://www.fbo.gov) periodically.

http://www.fbo.gov/

An Interested Vendor List is not included in this solicitation. Offerors can register and use the Interested Vendor List (IVL) on the FBO page, so that firms can contact one another for consideration of teaming arrangements and/or small business subcontracting opportunities in response to this solicitation.

It is the responsibility of the recipient of this solicitation to ensure that the solicitation has been received from the Internet in its entirety. USAID bears no responsibility for data errors resulting from download or conversion processes.

If your organization decides to submit a proposal in response to this solicitation, it must be submitted by the designated date and time indicated in this cover letter and in Block 9 of the RFP cover page (Standard Form 33). Proposals received after the closing date and time will be processed as late and handled in accordance with FAR 15.208.

Only electronic submissions will be accepted, at the following two addresses, arizk@usaid.gov, and aruble@usaid.gov (please include both addresses in your submissions). No other forms of submission will be accepted. Please note that the designated initial point of entry to the Government infrastructure for the proposal submissions is the USAID/Washington internet server.

NAICS code for this action is 541990 and Geographic Code is 937.

Any questions regarding this RFP are to be submitted in writing to the attention of Mr. Aaron Ruble via email to both: aruble@usaid.gov and Abeer Rizk at arizk@usaid.gov, by the date and time specified above.

Oral instructions or explanations given before the award of the contract resulting from this solicitation will not be binding. Answers to all offerors’ questions will be provided in writing.

Please pay careful attention to, and complete in full, RFP Section K - Representations, Certifications and Acknowledgements. You can find the steps to register as a Federal Contractor using the following link, https://www.usaid.gov/work-usaid/get-grant-or-contract/grant-and-contract-process, or https://www.sam.gov.

Offerors will also carefully consider Section L - Instructions to Offerors and Section M - Evaluation Factors for Award. Sections B through I of the solicitation will become a substantive part of the anticipated contract with omissions to be completed by the Contracting Officer upon award. Proposals must be signed by an official who is authorized to bind the Offeror’s organization.

Issuance of this solicitation does not in any way obligate the U.S. Government to award a contract nor does it commit the U.S. Government to pay for costs incurred in the preparation and submission of a proposal.

Furthermore, the Government reserves the right to reject any and all offers, if such action is considered to be in the best interest of the U.S. Government. USAID anticipates award of one contract under this solicitation.

Thank you for your interest in USAID programs.

Sincerely, Signed Aaron Ruble Contracting Officer

Encl: SOL-268-16-000003 mailto:arizk@usaid.gov mailto:aruble@usaid.gov mailto:aruble@usaid.gov mailto:arizk@usaid.gov mailto:arizk@usaid.gov https://www.usaid.gov/work-usaid/get-grant-or-contract/grant-and-contract-process https://www.sam.gov/

ABBREVIATIONS

AAPD Acquisition & Assistance Policy Directive ADS Automated Directives System AIDAR Agency for International Development Acquisition Regulation BEO Bureau Environmental Officer CDCS Country Development Cooperation Strategy CCN Cooperating Country National CAS Cost Accounting Standards CCR Central Contractor Registration CFR Code of Federal Regulation CO Contracting Officer COP Chief of Party COR Contracting Officer’s Representative CPAR Contractor Performance Assessment Reporting CPARs Contractor Performance Assessment Reporting System CPFF Cost-Plus-Fixed-Fee CPI Contractor Performance Information.

CPII Contractor Performance and Integrity Information D&B Dun and Bradstreet, Inc DBA Defense Base Act DCA Development Credit Authority DCOP Deputy Chief of Party DDL Development Data Library DEC Development Experience Clearinghouse DO Development Objective DUNS Data Universal Numbering System EIU Economist Intelligence Unit EIT Electronic and Information Technology ER Environmental Review ERF Environmental Review Form E.O. Executive Order EFT Electronic Funds Transfer FAPIIS Federal Awardee Performance and Integrity Information System FAR Federal Acquisition Regulation FBO FedBizOpps GAO General Accounting Office GFP Government Furnished Property GOL Government of Lebanon GUC Grants Under Contract HSPD-12 Homeland Security Presidential Directive-12 IPN Implementing Partner Notices IVL Interested Vendor List IR Intermediate Results IEE Initial Environmental Examination IT Information Technology LIFE Livelihoods and Inclusive Finance Expansion LIM Lebanon Investment in Microfinance Program LMA Lebanese Microfinance Association

LIVCD Lebanon Industry Value Chain Development M&E Monitoring & Evaluation M/IRM Office of Information Resource Management MEs Micro enterprises MEDEVAC Medical Evacuation MENA Middle East and North Africa Investment initiative Lebanon MFI Microfinance Institutions MSMEs Micro, Small and Medium Enterprises MSEs Micro and small-sized enterprises/entrepreneurs NAICS North American Industry Classification System NCAT Network Capacity Assessment Tool NGOs Non-Governmental Organizations (NGOs) OAA Office of Acquisition and Assistance OCI Organization Conflict of Interest OFAC Office of Foreign Assets Control OMB Office of Management and Budget ORCA Online Representations and Certifications Application PDF Portable Document Format PIV Personal Identity Verification PMP Performance Monitoring Plan REQ Requisition RFP Request for Proposals SAM System for Award Management SDN Specially Designated Nationals SOW Statement of Work TIN Taxpayer Identification Number TCN Third Country National US United States of America USAID United States Agency for International Development USAID/W USAID Washington USG United States Government

SOLICITATION, OFFER AND AWARD 1. THIS CONTRACT IS A RATED ORDER

UNDER DPAS (15 CFR 700)

RATING PAGE OF PAGE

(S) N/A 1 181

2. CONTRACT NO. 3. SOLICITATION NO. 4. TYPE OF SOLICITATION 5. DATE ISSUED 6. REQUISITION/PURCHASE

NO.REQ-268-16-000003

SOL-268-16-000003 SEALED BID (IFB)

NEGOTIATED (RFP)

04/13/2016

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

USAID/Lebanon aruble@usaid.gov arizk@usaid.gov

NOTE: In sealed bid solicitations “offer” and “Offeror” mean “bid” and “bidder”

SOLICITATION

9. Proposals are due electronically to the address shown in section L CAUTION LATE Submissions, Modifications, and Withdrawals: See section L. All offers are subject to all terms and conditions contained in this solicitation.

10. A. NAME B. TELEPHONE NO. (NO COLLECT

CALLS)

C. E-MAIL ADDRESS

FOR

INFORMATI

ON

CALL:

See attached cover letter Intl CODE NUMBER EXT. aruble@usaid.gov arizk@usaid.gov

11. TABLE OF CONTENTS

(x) SEC

DESCRIPTION PAGE(S) (x) SEC. DESCRIPTION PAGE(S)

PART I - THE SCHEDULE PART II - CONTRACT CLAUSES

x A SOLICITATION/CONTRACT FORM x I CONTRACT CLAUSES x B SUPPLIES OR SERVICES AND PRICE/COST PART III - LIST OF DOCUMENTS, EXHIBITS AND OTHER ATTACH.

x C DESCRIPTION/SPECS./WORK STATEMENT x J LIST OF ATTACHMENTS x D PACKAGING AND MARKING PART IV - REPRESENTATIONS AND INSTRUCTIONS x E INSPECTION AND ACCEPTANCE x K REPRESENTATIONS, CERTIFICATIONS AND

OTHER STATEMENTS OF OFFERORS

x F DELIVERIES OR PERFORMANCE x G CONTRACT ADMINISTRATION DATA x L INSTRS., CONDS., AND NOTICES TO OFFERORS x H SPECIAL CONTRACT REQUIREMENTS x M EVALUATION FACTORS FOR AWARD

OFFER (Must be fully completed by Offeror) NOTE: Item 12 does not apply if the solicitation includes the provisions at 52.214-16, Minimum Bid Acceptance Period.

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

13. DISCOUNT FOR PROMPT PAYMENT

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

14. ACKNOWLEDGMENT OF AMENDMENTS

(The Offeror acknowledges receipt of amendments to the

SOLICITATION

for Offerors and related documents numbered and dated:

AMENDMENT NO. DATE AMENDMENT NO. DATE

15A. NAME AND

ADDRESS

OF

OFFEROR

CODE FACILITY 16. NAME AND TITLE OF PERSON AUTHORIZED TO SIGN OFFER (Type or print)

15B. TELEPHONE NUMBER 15C. CHECK IF REMITTANCE

ADDRESS

IS DIFFERENT FROM ABOVE –

ENTER

SUCH ADDRESS IN SCHEDULE.

17. SIGNATURE 18. OFFER DATE

AREA

CODE

NUMBER EXT.

AWARD (To be completed by Government)

19. ACCEPTED AS TO ITEMS NUMBERED 20. AMOUNT 21. ACCOUNTING AND APPROPRIATION

All mailto:aruble@usaid.gov

22. AUTHORITY FOR USING OTHER THAN FULL AND OPEN COMPETITION: 23. SUBMIT INVOICES TO ADDRESS SHOWN IN ITEM

10 U.S.C. 2304(c) ( ) 41 U.S.C. 253(c) ( ) (4 copies unless otherwise specified)

24. ADMINISTERED BY (If other than Item 7)

CODE 25. PAYMENT WILL BE MADE BY CODE

Same as Item 7 Office of Financial Management USAID Egypt

26. NAME OF Contracting Officer (Type or print) 27. UNITED STATES OF AMERICA 28. AWARD

DATE

(Signature of Contracting Officer) IMPORTANT: Award will be made on this Form, or on Standard Form 26, or by other authorized official written notice.

AUTHORIZED FOR LOCAL REPRODUCTION

Previous edition not usable.

33-133 STANDARD FORM 33 (Rev. 9-97) Prescribed by GSA FAR (48 CFR) 53.214(c)

SECTION B - SUPPLIES OR SERVICES/PRICES

B.1 PURPOSE

B.2 CONTRACT TYPE

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

B.4 CONTRACT BUDGET

B.5 FEE SCHEDULE

B.6 INDIRECT COSTS (DEC 1997)

B.7 ADVANCE UNDERSTANDINGS ON CEILING INDIRECT COST RATES AND FINAL

REIMBURSEMENT FOR INDIRECT COSTS

B.8 COST REIMBURSMENT

B.9 MULTI-YEAR CONTRACT AND CANCELLATION CEILING

SECTION C - Description/Specifications

C.1 PURPOSE

C.2 BACKGROUND

C.2.1. Development Challenge C.2.2. Donor Support to the Microfinance Sector and in Livelihoods

C.3 OBJECTIVE

C.4 STATEMENT OF WORK

C.4.1. Overview of Components and Technical Approach

C.5 RELATIONSHIP TO MISSSION OBJECTIVE AND OTHER USAID PROGRAMS

C.6 RESULTS

C.6.1 Statement of Results/Outcomes C.6.2 Illustrative Activities (to be updated upon award):

C.6.3 Required and Illustrative Indicators

C.7 MANDATORY COMPLIANCE AND REVIEWS

C.7.1 Gender Consideration C.7.2 Persons with Disabilities C.7.3 Environmental Compliance and Reviews C.7.4 Leverage opportunities to build local Systems capacity:

C.7.5 Sustainability

C.8 CONTRACT MANAGEMENT

C.8.1 Overall Staffing C.8.2 Sub-Contracts

SECTION D - Packaging and Marking

D.1 AIDAR 752.7009 MARKING (JAN 1993)

D.2 BRANDING AND MARKING POLICY

D.3 BRANDING STRATEGY

SECTION E - Inspection and Acceptance

E.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE

E.2 INSPECTION AND ACCEPTANCE

E.3 PERFORMANCE STANDARDS

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 TECHNICAL DIRECTION AND DESIGNATION OF RESPONSIBLE OFFICIALS

F.5 AUTHORIZED WORK DAY / WEEK

F.6 REPORTS AND DELIVERABLES

F.7 KEY PERSONNEL

F.8. 752.7005 SUBMISSION REQUIREMENTS FOR DEVELOPMENT EXPERIENCE

DOCUMENTS (SEP 2013)

SECTION G - Contract Administration Data

G.1 CONTRACTING OFFICER’S AUTHORITY

G.2 CONTRACTING OFFICER’S REPRESENTATIVE

G.3 TECHNICAL DIRECTION AND RELATIONSHIP WITH USAID

G.4 ACCEPTANCE AND APPROVAL

G.5 INVOICES

G.6 AIDAR 752.7003 DOCUMENTATION FOR PAYMENT (NOV 1998)

G.7 ACCOUNTING AND APPROPRIATION DATA

G.8 CONTRACTOR’S PRIMARY POINT OF CONTACT

G.9 CONTRACTOR’S PAYMENT ADDRESS

SECTION H – Special Contract Requirements

H.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE

H.2 AUTHORIZED GEOGRAPHIC CODE

H.3 AIDAR 752.225-70 SOURCE AND NATIONALITY REQUIREMENTS (FEB 2012)

(Pursuant to Class Deviation No. OAA-DEV-12-01c)

H.4 AIDAR 752.7004 EMERGENCY LOCATOR INFORMATION (JUL 1997)

H.5 AIDAR 752.228-3 WORKER’S COMPENSATION INSURANCE (DEFENSE BASE ACT)

DEC 1991

H.6 INSURANCE AND SERVICES

H.7 PERSONNEL COMPENSATION (APRIL 2006) (PURSUANT TO CLASS DEVIATION .. 68

H.8 ADDITIONAL REQUIREMENTS FOR PERSONNEL COMPENSATION

H.9 AIDAR 752.231-71 SALARY SUPPLEMENTS FOR HOST GOVERNMENT (HG)

EMPLOYEES (MAR 2015)

H.10 AIDAR 752.7031 LEAVE AND HOLIDAYS (OCT 1989)

H.11 AIDAR 752.228-70 MEDICAL EVACUATION (MEDEVAC) SERVICES (JUL 2007) ... 73

H.12 752.222-70 USAID DISABILITY POLICY (DEC 2004)

H.13 EXECUTIVE ORDER ON TERRORISM FINANCING

H.14 NONEXPENDABLE PROPERTY PURCHASES AND INFORMATION TECHNOLOGY

RESOURCES

H.15 LOGISTIC SUPPORT

H.16 LOGISTIC SUPPORT GOVERNMENT FURNISHED FACILITIES OR PROPERTY

H.17 USAID IMPLEMENTATION OF SECTION 508 OF THE REHABILITATION ACT OF

1973 AND FEDERAL ACQUISITION CIRCULAR (FAC) 97-27 "ELECTRONIC AND

INFORMATION TECHNOLOGY ACCESSIBILITY

H.18 SUBCONTRACTING PLAN AND THE SF 294 – SUBCONTRACTING REPORT FOR

INDIVIDUAL CONTRACTS AND SF 295 – SUMMARY CONTRACTING REPORT ... 76

H.19 CONSENT TO SUBCONTRACT

H.20 SUBCONTRACTING REQUIREMENTS

H.21 SUB-AWARD REQUIREMENTS (MAR 2012)

H.22 REPORTING OF FOREIGN TAXES (JUL 2007)

H.23 752.209-71 ORGANIZATIONAL CONFLICT OF INTEREST DISCOVERED AFTER

AWARD (JUN 1993)

H.24 LANGUAGE REQUIREMENTS AND REPORTING

H.25 GENDER CONSIDERATION

H.26 ENVIRONMENTAL COMPLIANCE-IEE

H.27 TRANSITION OF KNOWLEDGE, SKILLS AND ABILITIES

H.28 AIDAR 752.7032 INTERNATIONAL TRAVEL APPROVAL AND NOTIFICATION

REQUIREMENTS (APRIL 2014)

H.29 AIDAR 752.245.71 TITLE TO AND CARE OF PROPERTY

H.30 STANDARDS OF CONDUCT -- IMPROPER BUSINESS PRACTICES

H.31 FOREIGN GOVERNMENT DELEGATIONS TO INTERNATIONAL CONFERENCES 86

H.32 ADS 302 USAID-FINANCED THIRD-PARTY WEB SITES (AUG 2013)

H.33 ADS 302 USAID IMPLEMENTING PARTNER NOTICES (IPN) PORTAL FOR

ACQUISITION (JUL 2014)

H.34 SUBMISSION OF DATASETS TO THE DEVELOPMENT DATA LIBRARY (DDL)

(OCT 2014)

H.35 ELECTRONIC SUBMISSION OF DOCUMENTS

H.36 EXECUTIVE ORDER -- CLIMATE-RESILIENT INTERNATIONAL DEVELOPMENT 90

H.37 752.204-71 PARTNER VETTING (FEB 2012)

H.38 VETTING REQUIREMENTS OF SUB-AWARDEES

H.39 GRANTS UNDER CONTRACT TO U.S. AND NON-U.S. NGOs

H.40 IMPLEMENTATION OF & COMMODITIES PROCUREMENT

H.41 COMMUNICATION AND OUTREACH

H.42 EVALUATION

H.43 52.203-98, PROHIBITION ON CONTRACTING WITH ENTITIES THAT REQUIRE

CERTAIN INTERNAL CONFIDENTIALITY AGREEMENTS-REPRESENTATION (APR

2015)

H.44ADS 302.3.5.9 NONDISRIMINATION (JUN 2012)

H.45 ELECTRONIC PAYMENTS SYSTEM

SECTION I - Contract Clauses

I.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE

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

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

I.4 FAR 52.209–9 UPDATES OF PUBLICLY AVAILABLE INFORMATION REGARDING

RESPONSIBILITY MATTERS. (JUL 2013)

I.5 52.216-7 ALLOWABLE COST AND PAYMENT (JUN 2013)

I.6 52.216-24 LIMITATION OF GOVERNMENT LIABILITY (APR 1984)

I.7 52.217-2 CANCELLATION UNDER MULTI-YEAR CONTRACTS (OCT 1997)

I.8 52.222-21 PROHIBITION OF SEGREGATED FACILITIES (FEB 1999)

I.9 52.222-50 COMBATING TRAFFICKING IN PERSONS (MAR 2015)

I.10 52.227-23 RIGHTS TO PROPOSAL DATA (TECHNICAL) (JUN 1987)

I.11 52.230-3 COST ACCOUNTING STANDARDS (OCT 2015)

I.12 52.230-4 DISCLOSURE AND CONSISTENCY OF COST ACCOUNTING PRACTICES –

FOREIGN CONCERNS

I.13 52.247-67 SUBMISSION OF TRANSPORTATION DOCUMENTS FOR AUDIT (FEB 2006) ...

I.14 742.1170-3 POLICY

I.15 752.242-70 PERIODIC PROGRESS REPORTS (OCT 2007)

SECTION J - List of Documents, Exhibits and Other Attachments

SECTION K - Representations, Certifications, and Other Statements of Bidders

K.1 NOTICE LISTING SOLICITATION PROVISIONS INCORPORATED BY REFERENCE ... 122

K.2 FAR 52.203-99 PROHIBITION ON CONTRACTING WITH ENTITIES THAT REQUIRE

CERTAIN INTERNAL CONFIDENTIALITY AGREEMENTS (APR 2015)

K.3 52.204-8 ANNUAL REPRESENTATIONS AND CERTIFICATIONS (FEB 2009)

K.4 52.209-5 CERTIFICATION REGARDING RESPONSIBILITY MATTERS (OCT 2015)

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

K.6. 52.209-11 REPRESENTATION BY CORPORATIONS REGARDING DELINQUENT TAX

LIABILITY OR A FELONY CONVICTION UNDER ANY FEDERAL LAW (FEB 2016) .. 130

K.7 52.215-6 PLACE OF PERFORMANCE. (OCT 1997)

K.8 52.227-15 REPRESENTATION OF LIMITED RIGHTS DATA AND RESTRICTED

COMPUTER SOFTWARE. (DEC 2007)

K.9 52.230-1 COST ACCOUNTING STANDARDS NOTICES AND CERTIFICATION

(OCTOBER 2015)

K.10 52.230-7 PROPOSAL DISCLOSURE--COST ACCOUNTING PRACTICE CHANGES (APR

2005)

K.11 INSURANCE - IMMUNITY FROM TORT LIABILITY

K.12 SIGNATURE

SECTION L - Instructions, Conditions, and Notices to Bidders

L.1 52.252-1 SOLICITATION PROVISIONS INCORPORATED BY REFERENCE (FEB 1998)

L.2 52.215-20 REQUIREMENTS FOR COST OR PRICING DATA OR INFORMATION OTHER

THAN COST OR PRICING DATA - ALTERNATE IV (OCT 2010)

L.3 FAR 52.216-1 TYPE OF CONTRACT (APR 1984)

L.4 52.222-46 EVALUATION OF COMPENSATION FOR PROFESSIONAL EMPLOYEES (FEB

1993)

L.5 FAR 52.233-2 SERVICE OF PROTEST (SEPT 2006)

L.6 752.204-70 PARTNER VETTING PRE-AWARD REQUIREMENTS (FEB 2012)

L.7 GENERAL INSTRUCTIONS TO OFFERORS

L.8 EXPLANATION TO PROSPECTIVE OFFERORS

L.9 PROPOSAL SUBMISSION

L.10 INSTRUCTIONS SPECIFIC TO LOCAL ORGANIZATIONS

L.11 PROPOSAL FORMAT AND CONTENT

L.12 INSTRUCTIONS FOR THE PREPARATION OF THE TECHNICAL PROPOSAL

L.13 INSTRUCTIONS FOR THE PREPARATION OF THE COST/BUSINESS PROPOSAL

L.14 52.222-56 CERTIFICATION REGARDING TRAFFICKING IN PERSONS COMPLIANCE

PLAN (MAR 2015)…………………………………………………………………………. 158

SECTION M – Evaluation Factors for Award

M.1 EVALUATION OF OPTIONS (JUL 1990)

M.2 GENERAL INFORMATION

M.3 EVALUATION FACTORS FOR AWARD

M.4 COST PROPOSAL EVALUATION

M.5 SOURCE SELECTION

M.6 DETERMINATION OF COMPETITIVE RANGE

M.7 CONTRACTING WITH SMALL BUSINESS CONCERNS

ATTACHMENTS

ATTACHMENT J.2 - PAST PERFORMANCE INFORMATION (PPI)

ATTACHMENT J.3 - USAID FORM 1420-17

ATTACHMENT J.4 - MODEL SUBCONTRACTING PLAN OUTLINE

ATTACHMENT J.5 – MATRIX OF BRANDING AND MARKING PLAN FOR CONTRACTS

ATTACHMENT J.9 – COUNTRY DEVELOPMENT COOPERATION STRATEGY

ATTACHMENT J.12 – LOGICAL FRAMEWORK ………………………………………separately ATTACHMENT J.13 – UNHCR HOST COMMUNITIES SORTING ……………………separately

ATTACHMENT J.14 – LEBANON LOCAL COMPENSATION PLAN SUMMARY……………...183

ATTACHMENT J.15 – CONTRACTOR PERFORMANCE REPORT SHORT FORM……………. 185

ATTACHMENT J.16 – PARTNER INFORMATION FORM………………………………………..186

SECTION B - Supplies or Services/Prices

B.1 PURPOSE

The United States Government (USG) represented by the U.S. Agency for International Development (USAID)/Lebanon, seeks to develop and implement a program to improve livelihoods, support microfinance and expand inclusive finance in Lebanon, titled Livelihoods and Inclusive Finance Expansion (LIFE).

The overall goal of this program is to strengthen microfinance associations and member institutions’ services and enhance entrepreneurs’ business skills. This will be accomplished through providing the results and performing the services specified in Section C – Statement of Work of this document.

B.2 CONTRACT TYPE

This is a Cost-Plus-Fixed-Fee (CPFF) Completion-type contract. For the consideration set forth below, the Contractor will provide the performance requirements described in Section C and the deliverables or outputs described in Section F of this document.

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

(a) The estimated cost for the performance of the work required hereunder, exclusive of fixed fee, if any, is: $TBD. The fixed fee, if any, is $TBD. The estimated cost plus fixed fee, if any, is $TBD.

(b) Within the estimated cost plus fixed fee (if any) 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, and in accordance with Section B.5 below for performance hereunder is $TBD. The Contractor must not exceed the aforesaid obligated amount in accordance with Federal Acquisition Regulation (“FAR”) 52.232.22, “Limitation of Funds.”

(c) Funds obligated hereunder are anticipated to be sufficient through TBD.

[THIS SPACE LEFT INTENTIONALLY BLANK]

B.4 CONTRACT BUDGET

No. CLIN

Base Period Option

Base Period Option

Base Period Base

Period Options

TOTAL Year 1 Year 2 Year 3 Year 4 Year 5 Total Total

Financial Inclusion $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

2 Microcredit $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 3 Livelihoods $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 GUCs $ 800,000 $ 800,000 $1.5M $ 800,000 $1.5M $ 800,000 $ 800,000 $4M $3M $7M

Sub-Total $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Fixed-Fee $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Total $ $ $ 0 $ $ $ $ $ $ $

(a) The inclusion of any costs in the above budget does not eliminate the requirement for prior approval by the Contracting Officer of cost items designated as requiring prior approval by any of the terms and conditions of this contract, including the applicable cost principles (see FAR 52.216- 7, “Allowable Cost and Payment”); nor, does it constitute a determination of allowability by the Contracting Officer of any item of cost, unless specifically stated elsewhere in this contract. Also, the Contractor must not adjust these amounts by more than 10% per CLIN without a written modification signed by the Contracting Officer. For a CLIN adjustment of 10% or less, a written notification to the Contracting Officer is required. The Contractor must not bill any amounts against this contract in excess of the amounts specified for each line item.

(b) The Contractor agrees to furnish data that the Contracting Officer may request on costs expended or accrued under this contract.

(c) Without the prior written approval of the Contracting Officer, the Contractor must not exceed the total estimated cost set forth in the budget or the total obligated amount, whichever is less.

B.5 FEE SCHEDULE

(a) Fixed Fee under this Contract is [TBD]. Pursuant to FAR 16.306(d)(1), USAID/Lebanon will pay a portion of the contractor’s fixed fee upon the receipt of the deliverables listed in Section F. The portion of fee allocated to each result/deliverable is listed in the table at F.6 and in accordance with approved fee Schedule below. In the event the contractor does not fulfill a deliverable/result, then the contractor will not be entitled to the corresponding fee.

(b) In accordance with FAR clause 52.216-8 “Fixed Fee -”, USAID reserves the right to withhold a reserve not to exceed 15% of the total fixed fee or $100,000 whichever is less, to protect the Government’s interest. The Contracting Officer shall release 75% of all fee withholds under this contract after receipt of an adequate certified final indirect cost rate proposal covering the year of physical completion of this contract, provided the Contractor has satisfied all other contract terms and conditions, including the submission of the final patent and royalty reports, and is not delinquent in submitting final vouchers on prior years’ settlements. The Contracting Officer may release up to 90% of the fee withholds under this contract based on the Contractor’s past performance related to the submission and settlement of final indirect cost rate proposals.

Numbering of Deliverables: The numbering on the Fixed Fee Schedule, must follow the same numbering of the number in Section F.6. (E.g. F.6.1.) and the agreed Fixed Fee for each deliverable will be incorporated in this section upon award.

Deliverable Number

Description Fixed Fee

F.6.1 F.6.1.1 F.6.1.2 F.6.1.3 F.6.1.4 F.6.1.5 F.6.1.6 F.6.1.7 F.6.1.8 F.6.1.9 F.6.1.10 F.6.1.11 F.6.1.12 F.6.1.13 F.6.2 F.6.2.1 F.6.2.1.1 F.6.2.1.2 F.6.2.1.3 F.6.2.1.4 F.6.2.2.

F.6.2.2.1 F.6.2.2.2 F.6.2.2.3 F.6.2.2.4 F.6.2.2.5 F.6.2.2.6 F.6.2.3 F.6.2.3.1 F.6.2.3.2 F.6.2.3.3 F.6.2.3.4 F.6.2.3.5 F.6.2.4 F.6.2.4.1 F.6.2.4.2 F.6.2.4.3 F.6.2.4.4 F.6.2.5

F.6.2.5.1 F.6.2.5.2 F.6.2.5.3 F.6.2.5.4

B.6 INDIRECT COSTS (DEC 1997)

The contract clause entitled “Allowable Cost and Payment (JUN 2013)”, FAR Subpart 52.216-7, specifies that the indirect cost rates will be established for each of the Contractor’s accounting periods which apply to this contract. Pending establishment of revised provisional or final indirect cost rates, allowable indirect costs will 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: Provisional Period:

2/Base of Application:

Type of Rate: Provisional Period:

3/Base of Application:

Type of Rate: Provisional Period:

B.7 ADVANCE UNDERSTANDINGS ON CEILING INDIRECT COST RATES AND FINAL

REIMBURSEMENT FOR INDIRECT COSTS

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

Description Rate Base Type Period 1/ 2/ 3/ 1/ 2/ 3/

(2) 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 costs are less than the negotiated ceiling rates, the negotiated rates will be reduced to conform to the lower rates.

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

B.8 COST REIMBURSMENT

Allowable costs will be limited to reasonable, allocable and necessary costs determined in accordance with FAR 52.216-7, Allowable Cost and Payment (JUN 2013), FAR 52.216-8, Fixed Fee (JUN 2011), if applicable, and AIDAR 752.7003, Documentation for Payment (NOV 1998).

B.9 MULTI-YEAR CONTRACT AND CANCELLATION CEILING

This contract is subject to the requirements of FAR 17.106.

(a) Performance under this contract during the second and subsequent program years is contingent upon the appropriation of funds. All program years except the first are subject to cancellation.

Cancellation shall occur by the dates specified below if the Contracting Officer:

1. Notifies the Contractor that funds are not available for contract performance for any subsequent program year, or

2. Fails to notify the Contractor that funds are available for performance of the succeeding program year.

(b) Cancellation Ceiling:

In the event that the Government cancels requirements for services in subsequent program years under this contract, the following conditions will apply.

(c) If cancellation under the clause at 52.217-2, “Cancellation Under Multi-year Contracts” occurs, the contractor will be paid a cancellation charge not over the cancellation ceiling defined as follows:

ProgramYear Cencellation Date Cancellation

Ceiling 2 September 28, 2018 $ 106,871 3 September 30, 2019 $ 87,434 4 September 30, 2020 $ 59,299 5 September 30, 2021 $ 27,713

The Government’s liability for cancellation charges shall not exceed $281,317. This amount will be reduced accordance with FAR 17.106-1 (c) (1) at the conclusion of each program year as follows:

The cancellation ceiling shall be the amount allotted to this contract under the Limitation of Funds clause (FAR 52.232-22(b)) at the time the cancellation notice is issued by the Contracting Officer.

(d) In accordance with the Cancellation under Multi-year Contracts clause, the cancellation charge will cover only:

(1) Costs-

(i) Incurred by the contractor and/or subcontractor;

(ii) Reasonably necessary for performance of the contract; and

(iii) That would have been equitably amortized over the entire multi-year contract period but, because of the cancellation, are not so amortized; and

(2) A reasonable profit or fee on the costs.

[END OF SECTION B]

SECTION C - Description/Specifications

C.1 PURPOSE

Title: Livelihoods and Inclusive Finance Expansion (LIFE)

The purpose of the LIFE project is to improve economic opportunities and livelihoods of low income individuals and microenterprises by expanding and strengthening microfinance associations’ and member institutions’ services and enhancing entrepreneurs’ business skills. To this end, LIFE will improve livelihoods, strengthen microfinance activities and advance inclusive finance. Inclusive Finance, also referred to as financial inclusion, is defined as “universal access to a broad range of financial services, at a reasonable cost, provided by a diversity of sound and sustainable institutions.”

LIFE will consolidate the gains made under the Lebanon Investment in Microfinance Program (LIM) and expand inclusive finance to the unbanked and higher-risk, micro business clientele.

C.2 BACKGROUND

C.2.1. Development Challenge

Approximately one-fourth of Lebanon’s population, more than 1.0 million people, live on $4/day, less than one-fifth of the country’s average per capita income. Those people tend to live in remote rural areas where job opportunities and access to municipal and financial services are minimal. Unsurprisingly, these areas were the hardest hit in terms of the refugee influx, which has made living conditions even harder. Growing income disparity, limited job opportunities, due in part to excessive policy constraints to new investments and job creation, and poor public service delivery systems have led to widespread citizen dissatisfaction, thus giving sectarian organizations an opportunity to gain a foothold in the population in exchange for political-confessional loyalty. To the extent possible, this project will seek opportunities in these vulnerable groups. Among these groups, women, youth, and people with disabilities are largely excluded and underserved when it comes to economic empowerment and access to basic financial services. The unemployment rate for persons with disabilities globally is much higher than non-disabled individuals.

Lebanon has an excellent reputation for maintaining high international standards and sound policies in the banking and the financial sector. However, the lack of key conducive policies impedes access to finance and technology by the poor and by low-income micro enterprises (MEs). Also, MEs located in hard-to reach areas experiencing conflict and political instability fare worse. The Economist Intelligence Unit (EIU) has developed a Microfinance Index, which ranks countries based on their ability to develop and expand microfinance services. In 2014, the EIU ranked Lebanon 50th among 55 countries examined, based on its microfinance index. In 2011 only 37% of the population (over age 15) had an account at a formal financial institution. For women in particular, this percentage was lower at 25.9% according to the Global Partnership on Financial Inclusion. Thus, there is a clear need for greater financial inclusion in Lebanon, specifically in rural areas where unemployment exceeds 40%.

Inadequate and ineffective government regulation concerning microfinance and the sub-optimal delivery of financial and business services have led to uneven access to finance and unbalanced economic growth. Micro, small, and medium enterprises (MSMEs) comprise approximately 95% of Lebanese-owned businesses, employ from two to ten persons, mainly draw upon household family members, and borrow at levels of less than $17,000. In contrast, low-income rural microenterprises borrow at much lower levels ($500 - $ 1,700) due to: less borrowing capacity; scarcity of commercial credit at favorable terms and in sufficiently large loan amounts that would support growth; limited technical know-how at the enterprise level and basic business skills; and a non-inclusive financial landscape.1

Not unlike other countries, where the rural population and microenterprises can access lending, microfinance in Lebanon typically has higher rates, shorter terms, and requires high collateral. Compounding this issue, the steady influx of Syrian refugees – estimated at more than 1.5 million, approximately 30% of Lebanon’s population, increases competition for scarce rural jobs and threatens political and social stability.

The availability of microfinance and related entrepreneurial development skills and innovation, provides low-income and poor rural households with economic opportunities to identify new income sources and generate additional income. These essential services are often not available to persons with disabilities for a variety of reasons including physical barriers (i.e. inaccessible buildings and information), institutional barriers (i.e. discriminatory policy or standards), and attitudes/social barriers (i.e. stigma and discrimination at various levels, refusal to provide services). While the Central Bank has approved mobile payments and banks have started to introduce mobile money transfers, these services are presently only available to middle and high-income segments of the business population. High transaction costs associated with loan repayments, the absence of policies conducive to financial inclusion, and the lack of a specialized capacity within the regulatory agencies to foster and accelerate the pace of growth of the microfinance sector continue to impede performance of the sector.

Present efforts to expand inclusive finance in Lebanon are overwhelmingly limited to the provision of microcredit and support for the adoption and scaling-up of best practices. Furthermore, efforts to expand the adoption of new technologies and innovative products in the financial sector are lacking. As a consequence, the financial enabling environment, level of development and competition in the microfinance sector is low, resulting in Lebanon’s low microfinance index ranking. Also, inadequate support for women entrepreneurs widens the gender gap, slows development, and misses an opportunity to stabilize and bolster the resiliency of rural communities for coping with stress. This is especially noticeable in conflict prone areas where, ironically, women are counted on to rebuild their communities, strengthen household resiliency, and provide for the well-being of their families.

MFIs, NGOs, business associations, and other key stakeholders individually do not have the technical, institutional, and financial ability to effectively advocate for policy changes in the microfinance sector. Needed policy reforms include: 1) enabling MFIs to accept savings deposits from their members or develop innovative ways for members to accumulate savings; 2) allowing MFIs to borrow from commercial banks or from the Central Bank to widen and deepen their financial intermediation role and expand their capital and lending base; 3) facilitating sharing of credit information on cross-over borrowing through privately owned and operated credit bureau information exchanges; and, 4) broadening MFIs’ capacities, as well as other institutions, to provide financial inclusion type services that offer new opportunities for low income family micro businesses to improve their livelihoods and resiliency.

Such reforms would reduce barriers to growth and development of the sector bringing Lebanon’s microfinance sector up to par with other countries in the Levant. Moreover, MFIs need assistance to evolve into profit making entities, and develop on-lending arrangements with commercial banks or other international lending facilities to better support the microfinance sector with best practices. Currently and over the near to medium future, the MFIs are the only institutions that can provide the financial

1 UNHCR is constantly updating a risk classification of areas in Lebanon based on the number of hosted registered refugees services to micro businesses and low-income households. The rural poor, particularly women, youth, and the physically impaired, and many of the low income or microenterprise businesses do not have a source or means to improve and advance their entrepreneurship skills or learn best practices as formal educational institutions do not provide continuing education opportunities to low income households or informal microenterprise owners.

Lebanon must expand its inclusive finance in order to expand its microfinance sector to be on the same plane with global best practices. To illustrate, only 37% of the population (over age 15) had an account at a formal financial institution in 2011, and women and youth (aged between 18 and 35) comprise a large percentage of microenterprise borrowers.2 The history of microfinance shows that innovations will stem from supply side insights together with a fresh in-depth understanding of the financial lives of poor households. Due to the small number of sustainable MFIs, lack of regulation governing the microfinance sector, and a proliferation of low-cost approaches for disseminating improved and affordable technologies and services, there is substantial room for progress towards greater financial inclusion in Lebanon. For instance, mobile banking, online money transfers and greater application of digitalization can reduce costs and increase the quality of services significantly in Lebanon.

From the supply side, financial inclusion and microfinance are means to advance opportunities for microenterprises in rural areas of Lebanon. Looking at the demand side, i.e. individuals and/or microenterprises in rural areas of Lebanon, there exists a good portion of these who do not even qualify for financial services offered by the above-mentioned institutions due to lack of collateral and steady income. This group includes high risk rural, unemployed or low income women, youth and the physically impaired. Microfinance or financial inclusion support for this group is not effective. The type of support needed at this end is a “jump-start” or “livelihoods” support that will first make these individuals or microenterprises productive and economically viable and then at a later stage bring them in the financial ecosystem.

Lebanon’s, physiography, hydrology, and well-developed rural-urban market linkages demonstrate promise for economic growth opportunities especially within the low-income rural areas. Furthermore, Lebanon is endowed with temperate and tropical climatic conditions suited to the cultivation of a diverse range of fruit, vegetable, grain, and niche market crops, and livestock. Its abundant coastal marine resources and fisheries, a relatively well-maintained physical infrastructure throughout the country, significant irrigated and high-input agricultural production systems, and proven Lebanese entrepreneurship hold promise for robust economic growth, especially in the rural areas3.

C.2.2. Donor Support to the Microfinance Sector and in Livelihoods

C.2.2.1. USAID Assistance

Past Accomplishments: USAID pioneered the development of the microfinance and microenterprise sector in Lebanon in the mid- to late-1990s by supporting several local NGOs through the provision of a range of demand- and supply-side services, including the provision of lending capital at commercially prevailing rates. This initiative served as the impetus for the genesis of several local microenterprise institutions, some of which have matured into operationally and financially sound MFIs and NGOs, as evidenced by their audited annual financial statements.

2 The U.S. Library of Congress 3 The Agricultural Sector of Lebanon, UN Economic and Social Commission for Western Asia, Beirut, Lebanon, October 1, 2013

In 2009, USAID launched the Lebanon Investment in Microfinance program (LIM). Through specialized technical assistance and the forging of strategic alliances with Lebanese institutions and philanthropic foundations, LIM contributed to strengthening nine MFIs and NGOs, six of which demonstrated a sustained commitment to providing market-based financial products and non-financial services to micro- and small-sized enterprises/entrepreneurs (MSEs). From 2009 to mid-2014, these nine MFIs and NGOs provided about 12,000 loans having a total value of approximately $26 million.

Challenges: Observations regarding the challenges to and opportunities for continued growth and development of the microfinance and microenterprise industry, as confirmed in focus group discussions with diverse stakeholders during the preparation of the Concept Note, and subsequently during Project Appraisal Document (PAD) design include:

1. MFIs must further improve their financial and non-financial support services capability in order to help existing MSEs better manage their financial resources and grow their firms through expanded productivity, access to new local markets, and a better grasp for the concept, application and adoption of value chains.

2. Mentoring and supporting newly established and existing low-income micro-businesses through business capacity and skills development, and technical know-how can help add value to their products and/or services, expand their market linkages and sales revenue, improve their borrowing capacity, and improve their bottom-line.

3. MFIs that are registered with the Central Bank need to develop strategies for supporting business growth through expanding the range of their lending products and instruments, while engaging the assistance of NGOs or local service entities to provide support for innovative business development approaches and services.

4. MFIs need to increase their capacity to serve and support a wider array and larger pool of MSEs throughout Lebanon, particularly those outside of Beirut and in rural areas affected by unrest and conflict. By expanding their capacity to plan and target their client base, MFIs will also strengthen their own institutional sustainability.

5. MFIs need to acquire and apply best microfinance practices, new technologies, and innovation that will enhance their ability to provide borrowers with microenterprise support services for improved productivity and stronger linkage to markets.

6. The lack of a privately owned and operated credit bureau prevents the sharing of information on borrowers, which has a negative bearing on cross lending. Such information is critical for determining whether a borrower is applying or has applied to several MFIs for multiple loans, their state of indebtedness, and their eligibility for new loans. Strengthening the capacity of the recently established (2014) LMA can fill this gap. The aim is to bring lenders, borrowers, policy makers and facilitators together to develop a shared agenda and to advocate for policy changes and new guidelines for improving the enabling environment.

7. The nascent LMA has an important role to play in advocacy and in articulating microfinance and financial sector reforms including laying the building blocks for a national financial inclusion strategy and action plan, the building of business confidence, and fostering microenterprises’ aspirations to grow, thereby changing business and public sector perceptions of the MSE sector, and in acquiring, applying, and extending new business/market intelligence data. An expected role of the LMA is to develop a national financial inclusion strategy (NFIS).

8. MFIs’ efforts will extend to the adoption of new and improved investment and finance practices and tools, as well as facilitate the adoption of better business practices to improve borrower’s capacity to grow their firms.

There is a need for better data collection and analysis by local institutions and or government (Central Bank) that would allow for effective monitoring of MFI performance, as well as for tracking sector growth and development. Official data is fragmented and not collected at regular intervals.

Illustrative criteria for selecting MFIs are: managerial capacity, financial stability, market readiness, expertise in development of new loan products and provision of business development services, ability to reach out to people in rural areas across Lebanon, and partnerships with banks.

Other Constraints: In addition to the challenges identified in LIM, there are other constraints as identified in the problem statement.

At the same time, efforts by MFIs to expand services and outreach are hampered by: 1) the MFIs’ legal inability to accept…