SOL-268-17-000001_LED_RFP.pdf

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

UNDER DPAS (15 CFR 700)

RATING PAGE OF PAGE

(S) N/A 1 129

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

NO.REQ-268-17-000002

SOL-268-17-000001 SEALED BID (IFB)

NEGOTIATED (RFP)

April 5, 2017

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

USAID/Lebanon aruble@usaid.gov , kawalja@state.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

INFORMATION

CALL:

See attached cover letter Intl CODE NUMBER EXT. aruble@usaid.gov kawalja@state.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 1 x I CONTRACT CLAUSES 72 x B SUPPLIES OR SERVICES AND PRICE/COST 8 PART III - LIST OF DOCUMENTS, EXHIBITS AND OTHER ATTACH.

x C DESCRIPTION/SPECS./WORK STATEMENT 11 x J LIST OF ATTACHMENTS 79 x D PACKAGING AND MARKING 23 PART IV - REPRESENTATIONS AND INSTRUCTIONS x E INSPECTION AND ACCEPTANCE 26 x K REPRESENTATIONS, CERTIFICATIONS AND

OTHER STATEMENTS OF OFFERORS

x F DELIVERIES OR PERFORMANCE 28 x G CONTRACT ADMINISTRATION DATA 42 x L INSTRS., CONDS., AND NOTICES TO OFFERORS 90 x H SPECIAL CONTRACT REQUIREMENTS 46 x M EVALUATION FACTORS FOR AWARD 110

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

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 USAID/Serbia Controller's Office 92 Bulevar Kneza Aleksandra Karadjordjevica 11040 Belgrade, Serbia

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

DATE

AARON RUBLE

(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)

SOL-268-17-000001

Lebanon Enterprise Development Project

Contents

ABBREVIATIONS

PART I – THE SCHEDULE

SECTION B – SUPPLIES OR SERVICES AND PRICE/COSTS

B.1 PURPOSE

B.2 CONTRACT TYPE

B.3 TOTAL CONTRACT VALUE AND OBLIGATED AMOUNT

B.4 PRICE/COST SCHEDULE

B.5 PAYMENT OF FIXED FEE

B.6 INDIRECT COSTS (CPFF)

B.7 COST REIMBURSABLE (CPFF)

B.8 MULTI-YEAR CONTRACT AND CANCELLATION CEILING

SECTION C – DESCRIPTION / SPECIFICATIONS/STATEMENT OF WORK

C.1 PURPOSE

C.2 BACKGROUND

C.3 METHODOLOGY

C.4 OBJECTIVES

C.5 CROSS CUTTING TASKS

C.6 OTHER CONSIDERATIONS

C.7 APPLICABLE DOCUMENTS

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 OF 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.9 AIDAR 752.242-70 PERIODIC PROGRESS REPORTS (OCTOBER 2007)

F.10 AIDAR 752.7005 SUBMISSION REQUIREMENTS FOR DEVELOPMENT EXPERIENCE

DOCUMENTS (SEP 2013)

F.11 REPORT ON NON-EXPENDABLE PROPERTY

F.12 REPORT ON USAID PROPERTY IN THE CUSTODY OF CONTRACTORS

SECTION G – CONTRACT ADMINISTRATION DATA

G.1 CONTRACTING OFFICER'S AUTHORITY

G.2 ADMINISTRATIVE CONTRACTING OFFICE

G.3 CONTRACTING OFFICER’S REPRESENTATIVE (COR)

G.4 AIDAR 752.7003 DOCUMENTATION FOR PAYMENT (NOV 1998)

G.5 TECHNICAL DIRECTIONS/RELATIONSHIP WITH USAID

G.6 ACCEPTANCE AND APPROVAL

G.7 INVOICES

G.8 ACCOUNTING AND APPROPRIATION DATA

G.9 CONTRACTOR’S PRIMARY POINT OF CONTACT

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)

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 AIDAR 752.7007 PERSONNEL COMPENSATION (JULY 2007)

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)

H.12 AIDAR 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

H.19 CONSENT TO SUBCONTRACT

H.20 SUBCONTRACTING REQUIREMENTS

H.21 SUB-AWARD REQUIREMENTS (MAR 2012)

H.22 752.209-71 ORGANIZATIONAL CONFLICT OF INTEREST DISCOVERED AFTER AWARD

(JUN 1993)

H.23 LANGUAGE REQUIREMENTS AND REPORTING

H.24 GENDER CONSIDERATION

H.25 ENVIRONMENTAL COMPLIANCE

H.26 TRANSITION OF KNOWLEDGE, SKILLS AND ABILITIES

H.27 AIDAR 752.7032 INTERNATIONAL TRAVEL APPROVAL AND NOTIFICATION

REQUIREMENTS (APRIL 2014)

H.28 AIDAR 752.245-71 TITLE TO AND CARE OF PROPERTY

H.29 STANDARDS OF CONDUCT - IMPROPER BUSINESS PRACTICES

H.30 FOREIGN GOVERNMENT DELEGATIONS TO INTERNATIONAL CONFERENCES

H.31 USAID-FINANCED THIRD-PARTY WEB SITES (AUGUST 2013)

H.32 ADS 302.3.5.21 SUBMISSION OF DATASETS TO THE DEVELOPMENT DATA LIBRARY

(DDL) (October 2014)

H.33 ELECTRONIC SUBMISSION OF DOCUMENTS

H.34 EXECUTIVE ORDER -- CLIMATE-RESILIENT INTERNATIONAL DEVELOPMENT

H.35 AIDAR 752.204-71 PARTNER VETTING (FEB 2012)

H.36 VETTING REQUIREMENTS OF SUB-AWARDEES

H.37 GRANTS UNDER CONTRACT TO U.S. AND NON-U.S. NGOs

H.38 IMPLEMENTATION OF & COMMODITIES PROCUREMENT

H.39 COMMUNICATION AND OUTREACH

H.40 EVALUATION

H.41 FAR 52.203-98, PROHIBITION ON CONTRACTING WITH ENTITIES THAT REQUIRE

CERTAIN INTERNAL CONFIDENTIALITY AGREEMENTS-REPRESENTATION (APR 2015) .. 65

H.42 ELECTRONIC PAYMENTS SYSTEM

H.43 CLOUD COMPUTING (MAY 2016)

H.44 AIDAR 752.231-72 CONFERENCE PLANNING AND REQUIRED APPROVALS (AUG 2013) ... 70

PART II – CONTRACT CLAUSES

SECTION I – CONTRACT CLAUSES

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

I.2 752.252-2 AIDAR CLAUSES INCORPORATED BY REFERENCE (MAR 2015)

I.3 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE

I.4 FAR 52.203-99 PROHIBITION ON CONTRACTING WITH ENTITIES THAT REQUIRE

CERTAIN INTERNAL CONFIDENTIALITY AGREEMENTS (APR 2015) ((DEVIATION 2015-

02)

I.5 FAR 52.204-1 APPROVAL OF CONTRACT (DEC 1989)

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

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

I.8 FAR 52.217-7 OPTION FOR INCREASED QUANTITY -- SEPARATELY PRICED LINE ITEM

(MAR 1989)

I.9 FAR 52.217-9 OPTION TO EXTEND THE TERM OF THE CONTRACT (MAR 2000)

I.10 AIDAR 742.1170-3 POLICY

I.11 AIDAR 752.228-9 CARGO INSURANCE (DEC 1998)

I.12 752.229-71 REPORTING OF FOREIGN TAXES (JULY 2007)

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 BIDDERS

K.1 NOTICE LISTING SOLICITATION PROVISIONS INCORPORATED BY REFERENCE

K.2 FAR 52.204-8 ANNUAL REPRESENTATIONS AND CERTIFICATIONS (JAN 2017)

K.3 FAR 52.209-5 CERTIFICATION REGARDING RESPONSIBILITY MATTERS (OCT 2015)

K.4 FAR 52.209-7 INFORMATION REGARDING RESPONSIBILITY MATTERS (JUL 2013)

K.5 FAR 52.209-11 REPRESENTATION BY CORPORATIONS REGARDING DELINQUENT

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

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

K.7 FAR 52.227-15 REPRESENTATION OF LIMITED RIGHTS DATA AND RESTRICTED

COMPUTER SOFTWARE. (DEC 2007)

K.8 FAR 52.230-1 COST ACCOUNTING STANDARDS NOTICES AND CERTIFICATION

(OCTOBER 2015)

K.9 FAR 52.230-7 PROPOSAL DISCLOSURE--COST ACCOUNTING PRACTICE CHANGES

(APR 2005)

K.10 INSURANCE - IMMUNITY FROM TORT LIABILITY

K.11 SIGNATURE

SECTION L - INSTRUCTIONS, CONDITIONS, AND NOTICES TO OFFERORS

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

1998)

L.2 NOTICE LISTING SOLICITATION PROVISIONS INCORPORATED BY REFERENCE

L.3 FAR 52.215-20 REQUIREMENTS FOR COST OR PRICING DATA OR INFORMATION

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

L.4 FAR 52.216-1 TYPE OF CONTRACT (APR 1984)

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

L.6 AIDAR 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 PROPOSAL

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

COMPLIANCE PLAN (MAR 2015)

SECTION M - EVALUATION FACTORS FOR AWARD

M.1 NOTICE LISTING SOLICITATION PROVISIONS INCORPORATED BY REFERENCE

M.2 GENERAL AND SOURCE SELECTION INFORMATION

M.3 EVALUATION CRITERIA

M.4 COST PROPOSAL EVALUATION

M.5 DETERMINATION OF THE COMPETITIVE RANGE AND CONTRACT AWARD

M.7 CONTRACTING WITH SMALL BUSINESS CONCERNS AND DISADVANTAGED

ENTERPRISES

ATTACHMENT J.1 - BUDGET FORMAT (TEMPLATE)

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

ABBREVIATIONS

AAPD Acquisition & Assistance Policy Directive ADS Automated Directives System AIDAR Agency for International Development Acquisition Regulation AMEG Asia and the Middle East Economic Growth AMEP Annual Monitoring & Evaluation Plan BEO Bureau Environmental Officer CDCS Country Development Cooperation Strategy CCN Cooperating Country National CAS Cost Accounting Standards CAS Central Administration of statistics 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 EFT Electronic Funds Transfer EIB European Investment Bank EIU Economist Intelligence Unit EIT Electronic and Information Technology EMMP Environmental Mitigation and Monitoring Plan ER Environmental Review ERF Environmental Review Form ETF European Training Foundation EU European Union E.O. Executive Order FAPIIS Federal Awardee Performance and Integrity Information

System FAR Federal Acquisition Regulation FBO FedBizOpps FTE Full Time Equivalence GAO General Accounting Office GFP Government Furnished Property GOL Government of Lebanon GUC Grants Under Contract HSPD-12 Homeland Security Presidential Directive-12 IFC International Finance Corporation ILO International Labor Organization IPN Implementing Partner Notices IVL Interested Vendor List IR Intermediate Results IEE Initial Environmental Examination IT Information Technology LED Lebanon Enterprise Development LIFE Livelihoods and Inclusive Finance Expansion LIVCD Lebanon Industry Value Chain Development MEL Monitoring, Evaluation and Learning M/IRM Office of Information Resource Management MEs Micro enterprises MEDEVAC Medical Evacuation

MENA Middle East and North Africa Investment initiative Lebanon MSMEs Micro, Small and Medium Enterprises SMEs Small and Medium Enterprises NAICS North American Industry Classification System NAWW National Average Weekly Wage 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 PWS Performance Work Statement QASP Quality Assurance Surveillance Plan REQ Requisition RFP Request for Proposals SAM System for Award Management SDN Specially Designated Nationals SOW Statement of Work SOO Statement of Objectives 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

PART I – THE SCHEDULE

SECTION B – SUPPLIES OR SERVICES AND PRICE/COSTS

B.1 PURPOSE

The purpose of this contract is to implement the Lebanon Enterprise Development (LED) Project.

B.2 CONTRACT TYPE

This is a Cost-Plus-Fixed-Fee (CPFF) term type contract. For the consideration set forth below, the Contractor shall provide the level of effort described in Section F to accomplish the tasks and results set forth in Section C.

B.3 TOTAL CONTRACT VALUE AND OBLIGATED AMOUNT

Total Contract Value:

I. The estimated cost for the performance of the work required hereunder, exclusive of fixed fee , for the Base Period is $TBD. The fixed fee for the Base Period is TBD. The estimated cost plus fixed fee for the Base Period is $TBD.

II. The estimated cost for the performance of the work required hereunder, exclusive of fixed fee for the Option Period is $TBD. The fixed fee for the Option Period is TBD. The estimated cost plus fixed fee, if any, for the Option Period is $TBD.

The contractor is not restricted from making adjustments between line items (except for Fixed Fee and Grants under Contract budget items), as long as adjustments are within the scope of the Contract.

Obligated Amount:

(a) Within the estimated cost plus fixed fee specified in paragraph (a) above, the amount currently obligated and available for reimbursement of allowable costs incurred by the contractor (and payment of fee) for performance hereunder is $TBD. The contractor cannot exceed the aforesaid obligated amount.

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

B.4 PRICE/COST SCHEDULE

Item

Base Period Total

Option Period

Total Base + Option Period

Salaries and Wages

Fringe Benefits

Overhead

Travel, Transportation and Per Diem

Allowances

Other Direct Costs

Subcontractors

Subcontractor 1 Subcontractor 2

Subcontractor 3

Total Subcontractors

General and Administrative Costs

Grants Under Contract

Total Estimated Cost

Total Fixed Fee

TOTAL ESTIMATED COST & FIXED

FEE

B.5 PAYMENT OF FIXED FEE

Subject to FAR 52.216-8, Fixed Fee, if applicable, payment of fixed fee shall be allocated based upon the proportion of the level of effort (LOE) specified in Section F.8 that was provided by the contractor in the period covered by the invoice. Normally, the contractor will be paid the proportion of the fee specified that corresponds to the proportion of LOE delivered by the Contractor during the period covered by the invoice. In the event that the Contractor does not provide the total LOE stipulated in Section F.8, the total amount of fixed fee will be reduced in similar proportion.

B.6 INDIRECT COSTS (CPFF)

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 Indirect Cost X % 1/ 1/ 1/ Indirect Cost Y % 2/ 2/ 2/ Indirect Cost Z % 3/ 3/ 3/

1/Base of Application:

Type of Rate:

Period:

2/Base of Application:

Type of Rate:

Period:

3/Base of Application:

Type of Rate:

Period:

(1) 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.

(2) 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.7 COST REIMBURSABLE (CPFF)

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

In addition, the requirement and conditions concerning estimated cost and funding apply as detailed in:

FAR 52.232-20 Limitation of Cost (applies while the contract is fully funded), incorporated by reference in Section I of this contract, and

FAR 52.232-22, Limitation of Funds (applies while the contract is funded in an amount less than the ceiling price), incorporated by reference in Section I of this contract

B.8 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 FAR 52.217-2, “CANCELLATION UNDER MULTI-YEAR

CONTRACTS (OCT 1997)” occurs, the contractor will be paid a cancellation charge not over the cancellation ceiling defined as follows:

ProgramYear Cencellation Date Cancellation Ceiling

Base yr 2 September 29, 2018 Base yr 3 September 30, 2019 Option yr 4 September 30, 2020 Option yr 5 September 30, 2021

The Government’s liability for cancellation charges shall not exceed $ TBD. 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/STATEMENT OF WORK

Title: Lebanon Enterprise Development

C.1 PURPOSE

The purpose of the Lebanon Enterprise Development (LED) project is to increase employment opportunities for Lebanese citizens. The contract will facilitate the provision of business development services and solutions to Lebanese firms (hereafter “client firms”), enabling them to expand their activities, increase sales and create jobs.

C.2 BACKGROUND

a. Development Challenge

One of the major challenges facing the Lebanese economy is job creation, particularly for the youth, university graduates, and women.

Notwithstanding the weakness of the statistical base, there is little doubt that employment generation constitutes a major development challenge for Lebanon. The labor market is characterized by low activity and employment rates, limited participation of women, a large informal sector, a high influx of foreign workers, and a large number of skilled Lebanese people seeking and obtaining employment abroad. Data analysis and findings from various sources1 can be summarized as follows:

Job creation: About 23,000 people enter the labor market each year. From 2004 to 2007, the economy created an average of 3,400 jobs annually. Lebanon would need to create six times more jobs to absorb all new entrants.

Between 2006 and 2016, employment growth was mainly in low-productivity sectors.

Foreign labor undertook most new work (of all new employment, 47.3% took place in trade, 34.7% in services, public and private, and 10% in agriculture). Growth in productive activities such as communications, financial services, agriculture, and industry was marginal.

Competition between Lebanese and Syrian refugees is increasing. In addition to working at lower-skill levels, Syrian refugees are reportedly taking higher-skill jobs.

Brain drain: Since 2005, an average of 15,000 Lebanese has emigrated each year. Emigration is explained partially by the inability of the labor market to absorb a high number of high school and university graduates.

Long transition period from school to work: Unemployment is increasing, particularly among youth (youth unemployment is 30% vs. 10% nationally).

Low participation rate of women in the economy. The female activity rate stands at 25.6%2

In most economies, employment growth comes not from microenterprises, but from firms larger in size. In Lebanon, most observers recognize that SMEs are the logical place to look for economic dynamism and employment generation, but also recognize that a legion of problems – both firm-specific and more broadly

– make business expansion far from easy.3 Each analysis differs somewhat in how it looks at the gamut of constraints, but overall they converge on a set of key problems. These problems fall into two broad and

1 World Bank, 2012, Republic of Lebanon: Good Jobs Needed. The Role of Macro, Investment, Education, Labor and Social Protection Policies ("Miles"). Report No. 76008-LB; World Bank, 2013, Lebanon: Economic and social impact Assessment of the Syrian conflict; International Labor Organization (ILO), 2015, Towards Decent Work in Lebanon:

Issues and Challenges in Light of the Syrian Refugee Crisis; European Training Foundation (ETF), 2015. Labor Market and Employment Policy in Lebanon; Central Administration of Statistics (CAS), 2011, The Labor Market in Lebanon.

2 EFT, Labour market and employment policy in Lebanon, 2015 3 Ministry of Economy and Trade, Republic of Lebanon, “Lebanon SME Strategy – A Roadmap to 2020,” 2014; USAID Asia and the Middle East Economic Growth Best Practices Project (AMEG), “Increasing Economic Growth and Jobs in Lebanon,” 2015; and World Bank, “Doing Business, Economy Profile: Lebanon,” 2014.

sometimes overlapping categories: transactional problems that firms can address on their own and systemic problems that relate to the business environment and typically call for collective action by the business community, by the government, or, oftentimes, by both.

Below are major enterprise-specific problems that emerge from the studies4.

Many Lebanese companies want to hire more people, but they cannot find workers with skills matching their requirements.

The bulk of SMEs are family-owned. Owner/operators are reluctant to engage in business relationships with people they do not know, and they make major decisions with limited market information and technical knowledge.

Most firms face managerial challenges, hampering them from growing into robust medium or larger-sized enterprises.

Many SMEs are out of step with consumer preferences and market conditions. They do not necessarily know where to look for market intelligence in general, and for buyers, in particular.

Although access to finance is not a major constraint for well-established SMEs, new enterprises with the potential for growth are habitually short of working capital, making them vulnerable operationally and limiting their response to new market opportunities.

SMEs lack the technical know-how to assess the merits of and use improved technology, putting a damper on their productivity and competitiveness.

Historically and culturally, SMEs have been reluctant to work in groups, share information and experience, and obtain peer support.

The major business environment problems that emerge from the studies are the following:

Lebanon’s pool of trained, experienced, qualified personnel is shrinking, especially for management and skilled trade positions. By regional standards, the country has a highly educated workforce, but it produces graduates who are not “work-ready”. For their part, many skilled young people do not look first to local firms for work, but to foreign markets where salaries are higher and more opportunities exist for upward mobility.

Regional conflicts have dampened investor confidence. The continuing influx of migrant workers depresses wages both for low-productivity/unskilled jobs and for work requiring vocational training and experience.

The protracted hostilities in Syria and other regional conflicts have rendered Lebanon’s road transportation links and overland trading routes unreliable, insecure, and costly.

High land prices and energy costs drive up the cost of Lebanese enterprises doing business.

The political environment remains complicated and it is not clear if the Lebanese Government will take actions in making policies and support organizations more conducive to business expansion and job creation.

Government bureaucracy is burdensome, especially for importers and exporters.

Taxes relatively are high. For employers, the social security payroll tax comes to 21.5%.

Lebanon ranks 123th out of 167 countries on the Corruption Perceptions Index in 2016

(https://www.transparency.org/cpi2015/#results-table).

Lebanon ranks 126th globally and 11th among Arab countries on ease of doing business regressing four spots from 122nd in 2016 (World Bank doing business 2017 report cited in Byblos Bank LTW issue 467 October 2016).

C.3 METHODOLOGY

LED will apply a problem solving buyer-led as a demand driven firm based approach5 to the key constraints that stand in the way of Lebanese small and medium enterprises (SMEs) consummating sales

4 Ministry of Economy and Trade, Republic of Lebanon, “Lebanon SME Strategy – A Roadmap to 2020,” 2014; USAID Asia and the Middle East Economic Growth Best Practices Project (AMEG), “Increasing Economic Growth and Jobs in Lebanon,” 2015; and World Bank, “Doing Business, Economy Profile: Lebanon,” 2014.

transactions, growing, and hiring more people. In some cases, business associations may be the most appropriate vehicle for SMEs to resolve those constraints. When binding constraints result from the business environment, it is likely that associations will play an advocacy role (Sub-IR 2.1.1). The major part of LED’s work will be transactional, which is, helping SMEs solve their binding business problems as business problems. As a practical matter, such work will involve increasing business and trade linkages (Sub-IR 2.1.2). In addition, and in certain instances, LED will help SMEs fill open jobs for which they have had difficulty identifying qualified candidates (Sub-IR 2.1.3). LED will facilitate the provision of technical assistance and problem-solving services to Lebanese firms to enable them to expand their sales and growth. Increases in sales will result in the creation of new jobs and in increasing incomes, thereby contributing to private sector growth and a more inclusive economy.

LED shall apply a buyer-led, demand driven approach. It is a disciplined, problem-solving, results-oriented, market-driven approach to generating jobs. It starts with the market, nurturing lasting relationships between buyers and suppliers. Normally, businesses hire more people when they expand sales. Implementers of this approach give businesses a reason to grow, generating new permanent jobs. Using this approach, the starting point is the buyer rather than the supplier. Businesses receive support when they produce goods or services for a known market. The support is transactional and action-oriented, focusing squarely on making transactions happen. It helps businesses solve their obstacles to growth. It is results-oriented because the measure of success is jobs created. To ensure a high return on investment, it typically applies a quantitative rule of thumb to each transaction before moving forward and is thus cost effective. It is problem-solving as it diagnoses clients problems and solves them rather than coming with predetermined solutions looking for problems.

LED is envisioned to be a flexible, responsive, and sector-neutral project with a primary focus on job creation through tailored technical assistance at the firm level covering all Lebanon. LED can also respond to potential policy reform through advocacy with the private sector or assist in trade facilitation, export promotion, or other regulatory or non-regulatory aspects if it relates to job creation. LED may also facilitate job matching and internships/apprenticeships as well as enterprise-led work force development. The focus of the project will be on transactional activities, meaning enterprise-level support.

Under LED, a job is defined as one-year full time employment, applying full-time equivalence (FTE) methodology. Under this methodology, two people working six months each will count as one job. In the same vein, one person working two years full time will count as two jobs6. Jobs created should be disaggregated by new versus continuing. (New: The FTE job was newly created during the reporting year with USG assistance. Continuing: The FTE job during the reporting year was created in a previous reporting year with USG assistance.)

In LED, it will be important to capture not only full-time employment but part-time and seasonal employment as well. For example, some support activities will generate full-time employment on the factory floor and part-time employment among the factory’s suppliers. Both are rightfully attributable to the project. LED will therefore apply the FTE methodology to measure jobs.

The Contractor will collaborate with other development partners, donors, business associations and other USAID programs to build synergies and benefit from new opportunities for achieving optimum results. A list of known activities is provided below for information, but it should not be considered conclusive and defining of the universe requiring collaboration.

USAID Activities:

Livelihoods and Inclusive Finance Expansion

5 For detailed information on the buyer led approach, see “We Do Know How”, J. Riordan, 2010. Mr. Riordan was contracted by USAID Lebanon to help develop this scope of work. Please note that per FAR 6.101(a), any offer should not name anyone that was substantially involved in the development of this scope of work in order to preserve and promote fair competition.

6 It is anticipated that all jobs generated directly with clients will be formal jobs. Jobs generated among suppliers to the clients may be informal.

The Livelihoods and Inclusive Finance Expansion (LIFE) project is a five-year, $15 million awarded in September 2016. Implemented by Palladium International, LIFE will strengthen livelihoods, advance the microfinance industry, and expand inclusive finance in order to improve economic opportunities for under-served entrepreneurs and recipients of microfinance services. LIFE will support inclusive finance that will bring more clients into the financial ecosystem by promoting significant policy/institutional reforms and building the capacity of the Lebanese Microfinance Association. The project will help microfinance institutions expand their range of products and services to more vulnerable populations, particularly low-income women, youth, and the physically disabled in conflict-prone rural areas. Support will be provided to entrepreneurs and microenterprises to build their business capacity, access formal financial services, and establish sustainable livelihoods.

Middle East and North Africa Investment Initiative The $15 million Middle East and North Africa Investment Initiative (MENA II) provides support to early stage businesses to create and sustain jobs, advance and develop the investment ecosystem, and encourage increased equity investment in early stage businesses. Lebanon is one of four MENA countries participating in this regional initiative. To implement the program, Berytech, the grantee, created a fully-owned subsidiary called Insure and Match Capital, which identifies potential investments in the early stage markets in Lebanon and partners with qualified members of the startup community to provide matching investment capital, investment insurance, and technical assistance.

Lebanon Industry Value Chain Development The Lebanon Industry Value Chain Development (LIVCD) is a five-year, $41.7 million project and part of the USG Feed the Future initiative launched in 2012. Implemented by DAI Global, LLC, LIVCD strengthens the agriculture and agro-processing sectors through technical support, by enhancing access to finance for rural small businesses and by stimulating innovation and private sector investment. Supported value chains include olives, honey, grapes, avocados, cherries and apples. In addition, LIVCD assists the food processing industry and rural tourism activities to enhance economic benefits for rural communities.

Other Donor Activities:

European Union (EU): Currently operating under the “Single Support Framework,” the EU provides support for: (a) improved legislation and regulations for business operations, especially of micro, small, and medium enterprises; (b) enhanced coordination among ministries with the aim of promoting private sector development and generating quality jobs for target populations; (c) increased and sustained access to finance for micro, small, and medium enterprises; (d) improved business support services; and (e) increased competitiveness of the Lebanese private sector to access regional and international markets.

The EU has a history of supporting SMEs. Previous programs have included: the Lebanon Integrated Small and Medium Enterprises Support Programme (€17 million); the facility to support SME energy-efficiency investments (€15 million); support to Kafalat to guarantee loans to SMEs (€3 million);

Reinforcement of Private Sector Competitiveness to support SMEs (€14 million); Job Creation Component

– Economic and Social Fund for Development (€21 million) (ongoing); Support to the Business Incubation Association in Tripoli (€853,000); and Support to the South Business Innovation Centre (€721,0000).

European Investment Bank (EIB): The EIB has provided both equity capital and financing for loans. In 2011, it subscribed $6.75 million to the Lebanon Growth Capital Fund. This fund, which targets equity and quasi-equity investments in privately held SMEs, achieved a first closing of $30 million, attracting quality co-investors such as Cisco. The Bank has also invested in four regional private equity funds (Euromed and the Euromena I, II, and III funds) that have made several investments in Lebanese SMEs.

On the lending side, the EIB has provided €50 million, together with advisory services, to support private sector development through credit lines targeting energy efficiency and renewable energy technology; €15 million in credit lines to the Bank of Lebanon to finance projects carried out by SMEs; €90 million to develop local businesses with fewer than 500 employees and create jobs through loans from Byblos Bank and Fransabank; and $15 million to First National Bank to finance SMEs and job creation.

World Bank: In 2011, the World Bank financed the “Supporting Innovation in Small and Medium Enterprise in Lebanon Project” to encourage the equity investment market to increase the supply of early-stage investment finance for financially viable new and existing innovative firms. The project provided development grants to stimulate idea generation and concept development ($2.5 million) and equity investment to support the early-stage growth of firms ($25 million).

Currently, the Bank’s country partnership framework has two foci: (a) expand access to and quality of service delivery; and (b) expand economic opportunities and increase human capital. Objectives under the latter focus that complement the LED project include: improved environment for private investment through legal and regulatory reform; improved access to finance for micro, small, and medium enterprises (MSMEs); and improved delivery of education services and skills development, particularly as it applies to facilitating labor market entry for unemployed youth through employment services combining life skills training, job search techniques, counseling, and practical on-the-job training.

International Finance Corporation (IFC): IFC’s investment portfolio in Lebanon has more than doubled over the past country partnership period as perceptions of increased risk have impacted other sources of long-term financing. To date, IFC has committed around $374 million in 15 companies. Its focus is on the financial sector (including microfinance) to increase access to finance for MSMEs. Through selective investments, it has also sought to create jobs in the infrastructure and manufacturing sectors.

C.4 OBJECTIVES

The development hypothesis for LED is that increased private sector employment will contribute to stronger stability in Lebanon through job creation.

The theory of change for this activity is that private sector job opportunities have not kept pace with the growing numbers of Lebanese looking for work because of constraints to growth for existing private enterprises. Firms which are able to either grow the demand for their products and services or identify new products, services or markets, will experience an associated need to expand their workforce.

USAID’s approach is to directly engage in private sector, firm level, demand driven, buyer-led job creation primarily by helping firms grow their businesses.

The rationale for the LED flows directly from the Mission’s Country Development Cooperation Strategy for 2014-18. LED relates to Development Objective (DO) 2, “inclusive economic growth enhanced”, IR 2.1 “increased private sector competitiveness.”

For its part, Intermediate Result 2.1 has three Sub-Intermediate Results:

Sub-IR 2.1.1: Strengthened business association services and policy advocacy Sub-IR 2.1.2: Increased business and trade linkages Sub-IR 2.1.3: Increased workforce development linked to job opportunities

LED has three objectives:

Objective 1: Create jobs by increasing the competitiveness and enhancing growth of Lebanese client firms

Objective 2: Improve Lebanon’s business enabling environment

Objective 3: Communicate results through outreach and share project knowledge with the public and private sectors

The primary objective of the LED project is to increase job opportunities for Lebanese citizens. LED shall improve job creation by the private sector and increase sales and foster growth for Lebanese enterprises allowing them to create jobs. LED’s primary approach is to work with private sector firms to identify and overcome specific business constraints to make them more competitive, generate an increased demand for their products and services, and lead to new hiring.

LED’s second and third objectives are subsidiary to the first to the extent they support the primary objective and the overall activity purpose of job creation. The three objectives described below will be implemented in parallel in a tightly integrated fashion to achieve the purpose of job creation.

Objective 1: Create jobs by increasing the competitiveness and enhancing growth of Lebanese client firms

The purpose of Objective 1 is to help selected client firms become more competitive, identify new sources of demand, increase their capacity to meet that demand by, for example, increasing their production, and thereby grow their sources of revenue, which should increase their demand for labor. In this way, expanded private sector activity will lead directly to job creation.

This project will deliver tailored technical assistance to enterprises/client firms, enabling them to expand their activities, increase sales, and create jobs.

Objective 1 is the project’s main component. It is anticipated that at least 75% of the LOE and subcontracts will be expended on this objective. To build trust with client firms, LED must have physical contact with those firms. For this reason, the Contractor will have proper engagement with firms through its central office and antennas covering regions of Lebanon in which economic activity takes place:

Beirut/Mount Lebanon, Northern Lebanon, South Lebanon, and Bekaa. Through business promotion specialists, the Contractor will establish contact with a broad range of enterprises, diagnose with them their binding constraints to growth, develop with them strategies for addressing those constraints, and help firms put strategies into practice. In principle, strategies can take on a multiplicity of forms such as finding new buyers, upgrading production techniques and quality control systems to meet the requirements of more demanding markets, improving management practices so that firms can in fact grow, securing financing to expand operations, etc. The Contractor will not come with preconceived ideas of what a firm’s binding constraints and corresponding solution strategies will be. Rather, it will tailor its solutions to the individual challenges it finds in each case.

Client firms will share the cost of the solutions they implement with project support. LED will not underwrite all costs for them. The Contractor must apply a clear method or quantitative rule of thumb each time it partners with a client to assess beforehand if the project’s support is likely to generate sales and jobs well in excess of the cost of the support itself.

The Contractor may introduce a performance bonus system to align the incentives of LED business advisors with the incentives of their clients. Under such a system, business advisors may receive incentives as a function of the degree to which the client sales and jobs generated as a result of their work exceed targets established at the beginning of each year. The Contractor will have a fee system tied to the number of jobs created.

The Contractor and its business advisors may be incentivized based on the numbers of jobs created and the percentage of jobs created for women. The Contactor can receive a premium if more than 35% of jobs created are for women on the condition that the Contractor reaches the target for total number of jobs created.

The Contractor will identify and propose appropriate and capable enterprises and organizations to partner with for USAID assistance. Engagement with the Lebanese diaspora for job creation activities is encouraged.

The Contractor shall use sub-contracts and consultants to deliver tailored technical assistance and other approaches as deemed appropriate. The Contractor may strategically use grants as a tool to implement actions in partnership with business associations and other entities as deemed appropriate.

Illustrative Activities:

Develop criteria and process for identifying and selecting SMEs/client firms from different

Lebanese regions to receive firm-level technical assistance, business mentoring, skills training and support.

Through technical assistance, enable firms to grow their businesses, establish new buyer deals and create jobs by, for example, assisting in the identification of new products, services or markets and improving firm competitiveness.

Assist client firms to improve their business operations (i.e., sales, profitability, and market share), maintain high quality products and services, and meet export market requirements.

Assist client firms to increase their capabilities to access loans or equity investment.

Support client firms, including services firms, in identifying international markets, exporting their business models, franchising, adopting new technologies, and finding partners to increase their productivity and growth if it leads to job creation in Lebanon.

Coordinate with banks and Kafalat (a Lebanese loan guarantee organization) to improve lending processes to SMEs.

Analyze constraints to private sector expansion for use in Objective 2, the business enabling environment.

Expected Results – Base period:

Improved business performance of client firms (e.g. increased productivity, improved competitiveness, increased sales) enabling them to add jobs.

Permanent jobs added by client firms that are attributable to USAID assistance.

FTE jobs created in the base period of at least 1,600 (new and continuing).

Client firms are able to obtain financing as necessary.

Expected Results - Option Period 1:

Continued improved business performance of client firms (e.g. increased productivity, improved competitiveness, increased sales) enabling them to add jobs.

Permanent jobs added by client firms that are attributable to USAID assistance.

FTE jobs created in the first option period of at least 3,400 (new and continuing).

Client firms are able to obtain financing as necessary.

FTE job creation targets Year (12-month period) Number of FTE jobs (new-during reporting year) Number of FTE jobs (new and continuing) Base One 100 100 Two 450 540 Three 450 960 Option 1 Four 600 1,500 Five 600 1,900 Five-year total 2,200 5,000

The total jobs created during base plus one option period, will be of at least 5,000 (new and continuing) FTEs.

In LED, it will be important to capture not only full-time employment but part-time and seasonal employment as well. For example, some support activities will generate full-time employment on the factory floor and part-time employment among the factory’s suppliers. Both are rightfully attributable to the project. LED will therefore apply the FTE methodology to measure jobs.

Objective 2: Improve Lebanon’s business enabling environment

Objective 2 is not the main component of LED and is anticipated to be flexible based on needs and opportunities to achieve results. It is not expected for this component to use more than 10% of the LOE, but it can use strategic grants and sub-contracts with business associations or other entities to achieve results. The purpose of this objective is to improve the business enabling environment in selected areas, through private sector advocacy, leading to new investments, and enabling companies to expand, become more productive and competitive, and create jobs. The project will promote reform at the policy and regulatory levels through a bottom-up approach by identifying and prioritizing policy and institutional problems and delivering technical assistance to help implement solutions. Systemic support will be implemented when there is a high likelihood that the reform will lead to growth and job creation.

LED can respond to potential policy reform through advocacy with the private sector, or assist in trade facilitation, export promotion that does not compete with US exports, or goods, or other regulatory or non-regulatory aspects if it relates to job creation. The project can strengthen the role of private sector and business associations in effectively advocating and contributing in policy, regulatory and non-regulator reforms that affect most job creation. The priority regulatory, non-regulatory, policy and institutional problems will be identified from intelligence derived from clients receiving transactional assistance of Objective 1.

Periodically analyze business enabling environment based on problems encountered with assisted firms and conduct independent research to determine possible reforms and bottlenecks to doing business as a means of prioritizing reforms along with engaging business associations and local business groups.

Compile a list of sector-specific impediments to exports/imports from the work under Objective 1 and for coordinated action.

Assist with strengthening the role of private sector and business associations in effectively…