SOL-514-15-000003_(Rural_Financial_Services).pdf

1. THIS CONTRACT IS A RATED ORDER RATING PAGE OF PAGES

UNDER DPAS (15 CFR 700)

2. CONTRACT NUMBER 3. SOLICITATION NUMBER 4. TYPE OF SOLICITATION 5. DATE ISSUED 6. REQUISITION/PURCHASE NUMBER

SEALED BID (IFB)

NEGOTIATED (RFP)

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

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

9. Sealed offers in original and _____________________________ copies for furnishing the supplies or services in the Schedule will be received at the place specified in Item 8, or if handcarried, in the depository located in until local time _______________________ (Hour) (Date)

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

A. NAME B. TELEPHONE (NO COLLECT CALLS) C. E-MAIL ADDRESS

AREA CODE NUMBER EXT.

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

PART I - THE SCHEDULE PART II - CONTRACT CLAUSES

A SOLICITATION/CONTRACT FORM I CONTRACT CLAUSES

B SUPPLIES OR SERVICES AND PRICES/COSTS PART III - LIST OF DOCUMENTS, EXHIBITS AND OTHER ATTACH.

C DESCRIPTION/SPECS./WORK STATEMENT J LIST OF ATTACHMENTS

D PACKAGING AND MARKING PART IV - REPRESENTATIONS AND INSTRUCTIONS

E INSPECTION AND ACCEPTANCE

F DELIVERIES OR PERFORMANCE

G CONTRACT ADMINISTRATION DATA L INSTR., CONDS., AND NOTICES TO OFFERORS

H SPECIAL CONTRACT REQUIREMENTS M EVALUATION FACTORS FOR AWARD

K

REPRESENTATIONS, CERTIFICATIONS AND OTHER

STATEMENTS OF OFFERORS

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 _180_ 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 (%)

(See Section I, Clause No. 52-232-8)

14. ACKNOWLEDGEMENT OF AMENDMENTS AMENDMENT NO. DATE AMENDMENT NO. DATE

(The offeror acknowledges receipt of amendments to the SOLICITATION for offerors and related documents numbered and dated:

CODE FACILITY

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

ADDRESS

OF OFFEROR

(Type or print)

15B. TELEPHONE NUMBER 17. SIGNATURE 18. OFFER DATE

AREA CODE NUMBER EXT.

15C. CHECK IF REMITTANCE ADDRESS IS DIFFERENT FROM

ABOVE - ENTER SUCH ADDRESS IN SCHEDULE

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

22. AUTHORITY FOR USING OTHER THAN FULL AND OPEN COMPETITION: 23. SUBMIT INVOICES TO ADDRESS SHOWN IN ITEM (4 copies unless otherwise specified)10 U.S.C. 2304(a) ( )

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

24. ADMINISTERED BY (If other than Item 7) 25. PAYMENT WILL BE MADE BYCODE CODE

26. NAME OF CONTRACTING OFFICER (Type or print) 27. UNITED STATES OF AMERICA 28. AWARD DATE

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

(Signature of Contracting Officer)

(REV. 9-97)

10. FOR INFORMATION CALL:

11. TABLE OF CONTENTS

STANDARD FORM 33

SOLICITATION, OFFER AND AWARD

SOLICITATION

OFFER (Must be fully completed by offeror)

AWARD (To be completed by Government)

N/A 2 134

SOL-514-15-000003

X

REQ-514-14-000070

Office of Acquisition and Assistance (OAA) USAID/Colombia Unit 3030 Box 5101

DPO AA 34004

N/A

See SECTION L

Paula Cubillos

011/57-1 275-4175 pcubillos@usaid.gov emarkovs@usaid.gov

See Attached Table of Contents

X

X

X

X

X

X

X

X

X

X

X

X

X

$.00 See G.6 ACCOUNTING AND APPROPRIATION DATA

Controller's Office USAID/Colombia Unit 3030, Box5101

DPO AA 34004

bogotausaidofmpayments@usaid.gov

Harvey Eichenfield

Table of Contents Page

SECTION A - SOLICITATION/CONTRACT FORM

SF 33 SOLICITATION, OFFER AND AWARD

PART I - THE SCHEDULE

SECTION B - SUPPLIES OR SERVICES AND PRICE/COSTS

B.1 PURPOSE

B.2 CONTRACT TYPE

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

B.4 INDIRECT COSTS (DEC 1997)

B.5 COST REIMBURSABLE

B.6 CANCELATION CEILING

SECTION C - DESCRIPTION/SPECIFICATIONS/PERFORMANCE WORK STATEMENT . 10

SECTION D - PACKAGING AND MARKING

D.1 AIDAR 752.7009 MARKING (JAN 1993)

D.2 BRANDING STRATEGY

SECTION E - INSPECTION AND ACCEPTANCE

E.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE ... 30

E.2 INSPECTION AND ACCEPTANCE

E.3 PERFORMANCE STANDARDS

SECTION F - DELIVERIES OR PERFORMANCE

F.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE ... 34

F.2 PERIOD OF PERFORMANCE

F.3 PLACE OF PERFORMANCE

F.4 REPORTS AND DELIVERABLES

F.5 KEY PERSONNEL

SECTION G - CONTRACT ADMINISTRATION DATA

G.1 AIDAR 752.7003 DOCUMENTATION FOR PAYMENT (NOV 1998)

G.2 DESIGNATION OF RESPONSIBLE USAID OFFICIALS

G.3 CONTRACTING OFFICER’S AUTHORITY

G.4 TECHNICAL DIRECTIONS/RELATIONSHIP WITH USAID

G.5 ACCEPTANCE AND APPROVAL

G.6 INVOICES AND PAYMENT

G.7 SOURCE OF FUNDS AND FISCAL DATA

SECTION H - SPECIAL CONTRACT REQUIREMENTS

H.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE .. 45

H.2 AIDAR 752.225-70 SOURCE AND NATIONALITY REQUIREMENTS

(FEB 2012)

H.3 AIDAR 752.228-70 MEDICAL EVACUATION (MEDEVAC) SERVICES

(JULY 2007)

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

H.5 AIDAR 752.7005 SUBMISSION REQUIREMENTS FOR DEVELOPMENT

EXPERIENCE DOCUMENTS (SEP 2013)

H.6 AIDAR 752.7007 PERSONNEL COMPENSATION (JUL 2007)

H.7 PERSONNEL COMPENSATION

H.8 AUTHORIZED GEOGRAPHIC CODE.. …………………………………………………50

H.9 REPRESENTATION BY CORPORATION REGARDING A DELINQUENT TAX

LIABILITY OR A FELONY CRIMINAL CONVICTION (AUG 2014)………………… 50

H.10 REPORTING OF FOREIGN TAXES (JUL 2007)

H.11 NON DISCRIMINATION (JUN 2012)

H.12 USAID DISABILITY POLICY - ACQUISITION (DEC 2004)

H.13 USAID-FINANCED THIRD PARTY WEBSITES (AUG 2013)

H.14 USAID IMPLEMENTING PARTNER NOTICES (IPN) PORTAL FOR

ACQUISITION (JUL 2014)

H.15 SUBMISSION OF DATASETS TO THE DEVELOPMENT DATA LIBRARY(DDL)

(OCT 2014)

H.16 AIDAR 752.7032 INTERNATIONAL TRAVEL APPROVAL AND NOTIFICATION

REQUIREMENTS (APR 2014)

H.17 ELECTRONIC SUBMISSION OF DOCUMENTS

H.18 SECURITY CONDITIONS

H.19 SECURITY PROTOCOL

H.20 SECURITY REPORTING

H.21 LIFE SUPPORT AND SECURITY SERVICES

H.22 OUTREACH AND COMMUNICATIONS SUPPORT

H.23 SUBCONTRACTING PLAN AND THE SF 294 – SUBCONTRACTING REPORT

FOR INDIVIDUAL CONTRACTS AND SF 295 – SUMMARY CONTRACTING

REPORT

H.24 PROHIBITION OF ASSISTANCE TO DRUG TRAFFICKERS

H.25 GRANTS UNDER CONTRACTS (GUCs)

H.26 ENVIRONMENTAL COMPLIANCE

H.27 EXECUTIVE ORDER – CLIMATE RESILIENT INTERNATIONAL

DEVELOPMENT

H.28 USAID LEGAL AND POLICY CONSIDERATIONS

H.29 AIDAR 752.228-3 WORKER’S COMPENSATION INSURANCE (DEFENSE BASE

ACT)

PART II - CONTRACT CLAUSES

SECTION I - CONTRACT CLAUSES

I.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE

I.2 52.204-1 APPROVAL OF CONTRACT (DEC 1989)

I.3 52.209-7 INFORMATION REGARDING RESPONSIBILITY MATTERS (JUL 2013)69

I.4 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 52.217-2 CANCELLATION UNDER MULTI-YEAR CONTRACTS (OCT 1997)

I.7 52.222-50 COMBATTING TRAFFICKING IN PERSONS (FEB 2009)

I.8 52.227-23 RIGHTS TO PROPOSAL DATA (TECHNICAL) (JUN 1987)

I.9 52.252-2 CLAUSES INCORPORATED BY REFERENCE (FEB 1998)

PART III - LIST OF DOCUMENTS, EXHIBITS AND OTHER ATTACHMENTS

SECTION J - LIST OF EXHIBITS/ATTACHMENTS

PART IV - REPRESENTATIONS AND INSTRUCTIONS

SECTION K - REPRESENTATIONS, CERTIFICATIONS AND OTHER STATEMENTS OF

OFFERORS

K.1 NOTICE LISTING SOLICITATION PROVISIONS INCORPORATED

BY REFERENCE

K.2 52.204-8 ANNUAL REPRESENTATIONS AND CERTIFICATIONS (DEC 2014) . 83

K.3 52.209-5 CERTIFICATION REGARDING RESPONSIBILITY MATTERS

(APR 2010)

K.4 SIGNATURE

SECTION L - INSTRUCTIONS, CONDITIONS, AND NOTICES TO OFFERORS

L.1 NOTICE LISTING SOLICITATION PROVISIONS INCORPORATED BY

REFERENCE

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 52.216-1 TYPE OF CONTRACT (APR 1984)

L.4 52.222-46 EVALUATION OF COMPENSATION FOR PROFESSIONAL

EMPLOYEES

(FEB 1993)

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

L.6 52.252-1 SOLICITATION PROVISIONS INCORPORATED BY REFERENCE(FEB

1998)

L.7 EXPLANATION TO PROSPECTIVE OFFERORS

L.8 GENERAL INSTRUCTIONS TO OFFERORS

L.9 INSTRUCTIONS SPECIFIC TO LOCAL ORGANIZATIONS

L.10 PROPOSAL FORMAT AND CONTENT

L.11 INSTRUCTIONS FOR THE PREPARATION OF THE TECHNICAL PROPOSAL 96

L.12 INSTRUCTIONS FOR THE PREPARATION OF THE COST/BUSINESS

PROPOSAL

L.13 BRANDING IMPLEMENTATION PLAN AND MARKING PLAN

SECTION M - EVALUATION FACTORS FOR AWARD

M.1 NOTICE LISTING SOLICITATION PROVISIONS INCORPORATED

BY REFERENCE

M.2 METHOD OF EVALUATION

M.3 EVALUATION FACTORS

EXHIBITS/ATTACHMENTS

EXHIBIT 1

IDENTIFICATION OF PRINCIPAL GEOGRAPHIC CODE NUMBERS

EXHIBIT 2

USAID FORM 1420-17 - CONTRACTOR BIOGRAPHICAL DATA SHEET

EXHIBIT 3

SMALL BUSINESS SUBCONTRACTING PLAN

EXHIBIT 4

BRANDING IMPLEMENTATION PLAN AND MARKING PLAN

ATTACHMENT 1

SF LLL - DISCLOSURE OF LOBBYING ACTIVITIES

ATTACHMENT 2

PAST PERFORMANCE QUESTIONNAIRE……………………………………….133

ATTACHMENT 3

BUDGET TEMPLATE

Electronic version is uploaded as a separate Microsoft Excel file in http://www.fedbizopps.gov/

ATTACHMENT 4

U.S. MISSION COLOMBIA LOCAL COMPENSATION SALARY TABLE

Electronic version is uploaded as a separate Adobe Acrobat (pdf) file in http://www.fedbizopps.gov/

ATTACHMENT 5

OLGOONIK, ACCESS TO FINANCIAL SERVICES IN RURAL AREAS –

MARKET STUDY, JULY 2014

Electronic version is uploaded as a separate Adobe Acrobat (pdf) file in:

http://www.fedbizopps.gov/ Electronic version can also be found in:

https://dec.usaid.gov/dec/content/Detail.aspx?ctID=ODVhZjk4NWQtM2YyMi00 YjRmLTkxNjktZTcxMjM2NDBmY2Uy&rID=MzU1ODE5

ATTACHMENT 6.a

UT ECONOMETRIA MARULANDA CONSULTORES, ASSESSMENT OF

RURAL AND AGRICULTURAL FINANCIAL SERVICES IN COLOMBIA,

AUGUST 2014

ATTACHMENT 6.b

UT ECONOMETRIA MARULANDA CONSULTORES, ESTUDIO DE

SERVICIOS FINANCIEROS RURALES Y AGRICOLAS EN COLOMBIA,

AGOSTO 2014

Electronic versions are uploaded as a separate Adobe Acrobat (pdf) file in http://www.fedbizopps.gov/ Electronic versions in English and Spanish can also be found in:

https://dec.usaid.gov/dec/content/Detail.aspx?ctID=ODVhZjk4NWQtM2YyMi00 YjRmLTkxNjktZTcxMjM2NDBmY2Uy&rID=MzU0MDI2

ATTACHMENT 7.a

OLGOONIK, USAID SUPPORT FOR FINANCIAL DEVELOPMENT IN

COLOMBIA 2004-2013, NOVEMBER 2014

ATTACHMENT 7.b

OLGOONIK, APOYO DE USAID AL DESARROLLO FINANCIERO EN

COLOMBIA 2004-2013, NOVIEMBRE 2014

Electronic versions are uploaded as separate Adobe Acrobat (pdf) files in http://www.fedbizopps.gov/ Electronic versions in English and Spanish can also be found in:

https://dec.usaid.gov/dec/content/Detail.aspx?ctID=ODVhZjk4NWQtM2YyMi00 YjRmLTkxNjktZTcxMjM2NDBmY2Uy&rID=MzU1ODIw

USEFUL LINKS:

1. DOING BUSINESS WITH USAID: http://www.usaid.gov/work-usaid/get-grant-or-contract/trainings-how-work-usaid

2. US AGENCY FOR INTERNATIONAL DEVELOPMENT: http://www.usaid.gov

3. USAID AUTOMATED DIRECTIVES SYSTEM (ADS): www.usaid.gov/pubs/ads.

4.. SF-1034 FORM (VOUCHER FOR PUBLIC SERVICES OTHER THAN PERSONAL):

http://www.usaid.gov/sa/usaidsa/sf1034.pdf

ACRONYMS AND DEFINITIONS

ADS Automated Directive Systems BEO Bureau Environment Officer CAF Corporacion Andina de Fomento CCN Cooperating Country Nationals CDCS Country Development Cooperation Strategy CELI Consolidation and Enhanced Livelihoods Initiative CO Contracting Officer COP Chief of Party COR Contracting Officer’s Representative CPFF Cost Plus Fixed Fee CPM Connecting Producers to Markets CST Contractor Salary Threshold DCOP Deputy Chief of Party DCA Development Credit Authority DDL Development Data Library DEC Development Experience Clearinghouse DO Development Objective EA Environmental Assessment EEO Equal Employment Opportunity ELN Ejército de Liberacion Nacional EMMP Environmental Monitoring and Mitigation Plan ERF Environmental Review Form FAR Federal Acquisition Regulation FARC Revolutionary Armed Forces of Colombia FINAGRO Financiamiento del Sector Agropecuario FSC Financial Superintendence of Colombia GDP Gross Domestic Product GOC Government of Colombia GUC Grant Under Contract IADB Inter-American Development Bank IEE Initial Environmental Examination IFC International Finance Corporations IVL Interested Vendor List LAC Latin American and Caribbean Region LCP Local Compensation Plan LGTBI Lesbian, Gay, Bisexual, Transgender and Intersex LTTA Long Term Technical Assistance MIDAS More Investment for Sustainable Alternative Development MOU Memorandum of Understanding NGO Non-governmental organization PEA Programmatic Environmental Assessment PIF Private Financial Intermediaries PWS Performance Work Statement RCE Request for Categorical Exclusion

SOL-514-15-000003 RURAL FINANCIAL SERVICES (RFS) SECTION B

RCT Randomized Control Trial RFP Request for Proposal RFS Rural Financial Services SB Small Business SES Superintendence of Solidarity Economy SFA Senior Financial Advisor STTA Short Term Technical Assistance TCN Third Country Nationals

PART I - THE SCHEDULE

SECTION B - SUPPLIES OR SERVICES AND PRICE/COSTS

B.1 PURPOSE

USAID/Colombia plans is seeking assistance for a five-year project (2015 – 2020) in the range of USD $20 – $23 Million that will improve inclusive financial intermediation in selected conflictive areas to promote the provision of market-based rural financial services for micro, small and medium size producers and businesses. Through rural financial services, the project intends to reduce the exclusion of certain sectors of the population and improve the conditions for economic growth which are critical in reducing poverty and inequality that are the root causes of the internal conflict.

B.2 CONTRACT TYPE

This is a Cost-Plus-Fixed-Fee (CPFF) completion contract. For the consideration set forth below, the Contractor must provide the deliverables or outputs described in Sections C and F in accordance with the performance standards specified in Sections C and F.

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 _________. The fixed fee, if any, is ________. The estimated Cost Plus Fixed- Fee, if any, is _________.

(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) for performance hereunder is _________. The Contractor must not exceed the aforesaid obligated amount.

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

B.4 INDIRECT COSTS (DEC 1997)

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/

SOL-514-15-000003 RURAL FINANCIAL SERVICES (RFS) SECTION B

2/ 2/ 2/ 3/ 3/ 3/ 1/Base of Application:

Type of Rate: Predetermined Period:

2/Base of Application:

Type of Rate: Predetermined Period:

3/Base of Application:

Type of Rate: Predetermined Period:

B.5 COST REIMBURSABLE

The U.S. dollar costs allowable 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.

B.6 CANCELLATION CEILING

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

(a) 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:

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

(b) 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]

SOL-514-15-000003 RURAL FINANCIAL SERVICES (RFS) SECTION C

SECTION C - DESCRIPTION/SPECIFICATIONS/PERFORMANCE WORK STATEMENT

RURAL FINANCIAL SERVICES1 PROJECT (RFS)

C.1. PURPOSE

USAID/Colombia plans to launch a five-year project (2015 – 2020) that will improve inclusive financial intermediation in selected conflictive areas to promote the provision of market-based rural financial services for micro, small and medium size producers and businesses. Through rural financial services, the project intends to reduce the exclusion of certain sectors of the population and improve the conditions for economic growth which are critical in reducing poverty and inequality that are the root causes of the internal conflict.

Adequate access to financial services is critical for achieving inclusive rural economic growth.

There is increasingly robust evidence2 that access and use of appropriate financial services improves household welfares and spurs household enterprise activity, offering greater opportunities and choices to poor families.

The program consists of three main components:

1. Improved Rural Financial Intermediation

2. Reduced Barriers to Rural Financial Services

3. Modernized Financial Environment

By the end of the program, expected results include the following:

At least 200,000 new clients in marginalized rural areas of Colombia with a total disbursement of at least $500 million in formal financial services.

Selected financial intermediaries with strengthened capacity.

At least 85% utilization of a USAID DCA guarantee and similar DCA mechanism developed tailored to Colombian needs in rural marginalized areas.

At least 10 new or improved financial products or services developed with high potential to be scaled up, including but not limited to value chain finance and insurance.

Knowledge products disseminated with key Colombian financial sector actors including

PFIs, government entities and other donors.

USAID/Colombia welcomes proposals from any offeror, including Local organizations3 to

1 The term rural financial services involve financial services (not just credit) provided to agricultural and non-agriculture entrepreneurs and rural households. These may involve micro, small and medium enterprises.

2 Consultive Group to Assist the Poor (CGAP), FY 2014-2018, Advancing Financial Inclusion to Improve the Lives of the Poor.

3 To qualify as a “local organization” for the purpose of this RFP, an entity must: a) be organized under the laws of the recipient country; b) have its principal place of business in the recipient country; c) be majority owned by individuals who are citizens or lawful permanent residents of the recipient country or be managed by a governing body, the majority of whom are citizens or lawful permanent residents of a recipient country; and d) not be controlled by a foreign entity or by an individual or individuals who are not citizens or permanent residents of the recipient country.

The term “controlled by” means a majority ownership or beneficiary interest as defined above, or the power, either directly or indirectly, whether exercised or exercisable, to control the election, appointment, or tenure of the organization’s managers or a majority of the organization’s governing body by any means, e.g., ownership, contract, or operation of law. “Foreign entity” means an organization that fails to meet any part of the “local organization” definition.

achieve the goals for this program. This also includes proposals that reflect alliances or teaming approaches between different types of organizations. USAID expects that offerors will have equal access to all local organizations needed for this contract, and strongly discourages exclusivity agreements with local organizations.

C.2. BACKGROUND

Colombia with a population of more than 48 million persons is emerging from decades of internal conflict. It is a middle-income country with the third largest economy in Latin America after Brazil and Mexico. According to the World Bank, the country’s estimated 2013 Gross Domestic Product (GDP) stood at $378.33 billion with per capita GDP of $7,830. Despite the internal conflict the economy has grown at an average of 4.3% from 2009 to 2013 and foreign direct investment has grown tenfold during the same period. Colombia’s development however has been hampered by the internal conflict and the deep inequalities that are more evident in the rural regions. The Gini coefficient, which measures inequity on a scale of zero to one, stands at 0.539 placing Colombia at number 19 among the world’s most unequal countries (and seventh in Latin America). Land ownership is highly unequal with just 1.2% of the population controlling 52% of the land. Furthermore, the latest figures show that one-third of Colombians are poor (living on less than $2 a day) and 10% are extremely poor (living on less than $1.25 a day). Extreme poverty in rural areas is much worse, at 23%. And the geography of the conflict has meant that vulnerable groups living in those areas, particularly Afro-Colombians, indigenous, and more remote rural populations, have suffered disproportionally.

Colombia has a broad sophisticated financial system dominated by commercial banks, finance companies, savings and loan cooperatives and unregulated microfinance NGOs. There are 24 commercial banks of which 14 are locally owned and have 76.4% of the total assets of the banking system. Within the local banks there is one public bank (Banco Agrario) that mainly serves rural areas through subsidized loans and three previous microfinance NGOs converted recently into regulated Banks. There are also 22 local financial and leasing companies, some of these are owned by the local financial conglomerates. In 2013 there were 188 cooperatives with approximately 2.8 million members. Within these cooperatives, six are supervised by the Financial Superintendence of Colombia (FSC), one recently converted to a commercial bank (Coopcentral) and the rest are supervised by the Superintendence of Solidary Economy (SES).

There are also 20 microfinance NGOs with an approximate portfolio level of $1.1 billion.

In Colombia there are approximately 4.0 million farmers and only 16% of these have loans4. A market assessment contracted by USAID5 with 29 financial intermediaries (8 banks, 1 financial company, 13 cooperatives and 7 microfinance organizations), found that some of the major constraints include: systematic risk of the agricultural sector, limited collaterals, high cost of client acquisition and lack of understanding of the sector, among others. See figure 1 below for the major issues as identified by the different private financial intermediaries (PFI).

Local offerors interested in applying to this RFP are encouraged to review the virtual training program on the public USAID website page on "How to Work with USAID" (http://www.usaid.gov/work-usaid/get-grant-or-contract/trainings-how-work-usaid ). Specifically, the training module “Effectively Responding to USAID Award Solicitations” (http://www.usaidallnet.gov/partner-learning/3/) explains best practices in drafting a response to a solicitation, such as understanding the various parts of a response, developing a time-conscious approach, and becoming familiar with the evaluation process.

4 Access to Financial Services in Rural Areas Market Study, Diana Parra Correa, OLGOONIK, July 7, 2014.

5 ibid.

Figure 1 - DIFFICULTIES IN RURAL FINANCING

On the other hand, the private financial intermediaries (PFIs) indicated that the factors listed in figure 2 would help their institution in the provision of financial services in rural areas with an emphasis on agriculture.

Figure 2 - FACTORS THAT WILL FACILITATE RURAL FINANCE

In another study contracted by USAID over 1,000 interviews in 20 rural municipalities were performed in order to understand the challenges and opportunities of financial services in rural areas6. This study concluded that financial exclusion in rural areas remains dramatic and is worse in rural households when compared to small businesses (grocery stores, inputs stores, bakeries, mini-markets, etc.). As a result, the use of informal means for credit and savings is the standard practice and the use of insurance is almost non-existent. Some of the factors highlighted by interviewees for not using formal financial products include: long distance to PFIs, high cost associated with the use of bank accounts, and size and timeliness of loans.

Although significant progress has been made in terms of increasing access to finance in Colombia7 there is still a lot to be done, including the optimization in the usage of existing infrastructure in rural areas. Taking into consideration all these factors, new innovative approaches are necessary to achieve a deepening process that allows rural populations to effectively use formal financial services.

C.3 PROGRAM VISION AND APPROACH

C.3.1 USAID/COLOMBIA Country Development Cooperation Strategy (CDCS)

The strategic objective of the CDCS is to strengthen Colombia’s capacity to implement a sustainable and inclusive peace. Progress toward this goal will be achieved through four development objectives (DOs): (DO1) Effective presence of democratic institutions and processes in targeted areas; (DO2) Reconciliation advanced among victims, ex-combatants and other citizens; (DO3) Improved conditions for inclusive, rural economic growth; and (DO4) Environmental resiliency and low-emissions development strengthened. Each of these DOs represents an area where institution and capacity building support by USAID contributes to the GOC’s ability to ensure a durable and equitable peace. The Rural Financial Services (RFS) Project will contribute directly to DO3.

C.3.2 Overall Program Vision

Limited access to finance by rural producers constrains their ability to improve productivity through investment in technological innovation, irrigation and production equipment, seeds and inputs, post-harvesting handling, processing and marketing. As a consequence, it inhibits broad based and sustained economic growth, job creation and exacerbates existing inequalities.

Limited access to finance also affects non-farm entrepreneurs in the service, commerce, handicrafts and agroindustry sectors.

The Contractor will provide technical assistance to strengthen the service capacity of selected financial intermediaries so they may service rural entrepreneurs with financial products that are demanded under market conditions. The Contractor will implement new approaches for expanding access to credit for micro, small and medium producers and businesses in selected geographical rural areas to improve the condition of inclusive rural economic growth in these neglected regions of the country. Special attention will be paid to Afro-Colombians, indigenous and women.

The technical assistance and project implementation contemplated by the Contractor will

6 Assessment of Rural and Agricultural Finance and Financial Services in Colombia, UT Econometria – Marulanda Consultores, July, 2014.

7 Reporte de Inclusión Financiera 2013, Banca de las Oportunidades – Superintendencia Financiera de Colombia, July, 2014 contribute directly to the achievement of the CDCS Development Objective 3, “Improved conditions for inclusive economic growth” and the following intermediate result (IR):

IR 3.2: Increased public and private investment in the rural sector.

Sub IR 3.2.2: Increased private sector investment in target rural communities.

Under this contract, USAID intends to provide the maximum flexibility to each Offeror to propose innovative and feasible approaches to promote the provision of inclusive market-responsive rural financial services in selected rural areas that guarantee sustainability8 in the long run when the program is over. The Contractor will work with sustainable PFIs with feasible approaches within time and resource constraints, specific to the Colombian rural context. The RFS will be sensitive to the financial intermediaries’ policies, market conditions, and designed to mitigate potential risks and reduce the transaction costs of doing business in rural areas with often marginalized communities. Most of the assistance provided to the PFIs will consist of capacity building through technical assistance, training, risk and costs reduction through guarantees and grants (incentive and challenge grants) to offset start-up costs.

C.3.3 General Organizing Principles and Approaches

The design and implementation of all activities must carefully consider and incorporate the general organizing principles and tactics enumerated below. As a whole, these principles must serve to guide the contractor’s overall strategy, design and implementation of the entire program and all relevant activities.

Geographic Focus:

Colombia’s conflict has devastated the rural sector and marginalized generations of its citizens from the economic growth and development experienced mostly in urban areas. Only when the Colombian rural sector is on a sound path of robust inclusive growth will the country be able to move from conflict to peace and stability. USAID will focus on supporting Colombian efforts to improve rural livelihoods. The goal is for Colombians living in historically neglected areas to have licit economic opportunities that provide them with a path out of poverty and a means of avoiding the trap of illicit crops. RFS will be focused on those rural municipalities that have been prioritized by GOC programs over the past 25 years attempting to strengthen/build State presence.

Under the current circumstances where the GOC is negotiating a peace accord with the FARC guerrilla there is uncertainty regarding those municipalities that will be prioritized by Colombian public and private sectors. In this scenario, USAID foresees RFS to be implemented first, in a subgroup of the municipalities selected by the Government of Colombia for the Consolidation policy9. Should a peace accord be reached USAID will support a subgroup of the municipalities

8 Sustainability in this context is understood as “the capacity of a host country entity to achieve long-term success and stability and to serve its clients and consumers without interruption and without reducing the quality of services after external assistance ends”. For USAID this is possible if there is sufficient involvement and empowerment of local organizations and if products and services are market responsive.

9 Over the past four years USAID has focused attention in 40 municipalities that are part of the National Consolidation effort: Ataco, Chaparral, Planadas, Rioblanco in Tolima; Pradera, Florida in Valle del Cauca; Caloto, Corinto, Miranda, Santander de Quilichao, Toribio in Cauca; El Carmen de Bolivar, San Jacinto in Bolivar; Ovejas, San Onofre in Sucre; Anori, Briceño, Caceres, Caucasia, El Bagre, Ituango, Nechi, Taraza, Valdivia, Zaragoza in Antioquia;

Montelibano, Puerto Libertador, Tierralta, Valencia, San Jose de Ure in Cordoba; La Macarena, Mesetas, Puerto Rico, San Juan de Arama, Uribe, Vista Hermosa in Meta; Cartagena del Chaira, La Montañita, San Vicente del Caguan in Caqueta; and Tumaco in Nariño.

prioritized by the GOC, following the request of the GOC. USAID expects the offeror to be flexible to be able to expand to new municipalities if a peace accord is signed. USAID is also aware that the provision of market-responsive rural financial services will be sustainable only if there are market opportunities for PFI to invest and thus is open to work in adjacent municipalities or regions that will facilitate the delivery of financial services. The offeror will need to provide arguments explaining the rural areas prioritized for RFS and the rationale behind that choice. Furthermore, for the first year Work Plan the final choice of targeted areas will have to be discussed and approved by the CO/COR.

Under RFS, the contractor is not expected to open regional offices in various areas. Instead, the contractor is expected to tap into the regional networks of the PFIs it will work with, in order to achieve greater impact.

Gender and Vulnerable Populations:

A gender and vulnerable populations strategy must be due in draft along with the first annual work plan draft. The document will address how gender and vulnerable populations have been integrated into the design and implementation of strategies that encourage and include women and vulnerable groups (indigenous persons, Afro-Colombians, persons with disabilities and the LGBTI community) in accessing financial services. At a minimum, the document should address major existing inequalities and a plan to guard against exacerbating these.

Coordination with other USAID/Colombia Programs:

USAID foresees the RFS activity to mutually complement other activities in the USAID/Colombia mission. The selected Contractor will coordinate closely with the USAID’s Equity Finance Programs and the Connecting Producers to Markets (CPM) Project so that a significant percent of their client base may have access to financial services. In addition, coordination is envisioned with the USAID’s Victims program, the Afro Colombian and Indigenous Program (ACIP) and the Consolidation and Enhanced Livelihoods Initiative (CELI) programs. Part of the USAID strategy in supporting DO3 (Improved Conditions for Inclusive Rural Economic Growth) is to address both the supply and demand side challenges which restrict access to finance and thus, collaboration is also expected with the USAID Regional Governance Activity.

The intention of USAID is to improve the capacity and appetite within the supply side – financial intermediaries and the financial sector infrastructure within which they operate (credit bureaus, payment systems, mobile financial services platforms, collateral registry, regulators and regulations, etc.). This will entail direct and indirect strategies for lowering transaction and capital costs and risks associated with lending or investing in the rural areas. The Connecting Producers to Markets Project will bridge the gap between entrepreneurs and the financial intermediary by enhancing the bankability of producers and businesses to improve the capacity within the demand side so these rural entrepreneurs have access to financial services and credit or equity to finance their growth. USAID expects that by virtue of the shared geographic coverage of RFS and CPM, the supply of and demand for rural financial services will be well synchronized to strengthen value chains, sales and income for small farmers in these areas.

Donor Coordination and Public/Private Partnerships:

The Contractor must plan and carry out program activities with a clear understanding of the scope and impacts of other donor or lender efforts in the financial sector so as to avoid duplication or inconsistencies in efforts, leverage maximum impact, and identify opportunities for joint implementation or collaboration. International donors working in the financial sector include the World Bank, the International Finance Corporation (IFC), the Inter-American Development Bank (IADB) and the Corporacion Andina de Fomento (CAF).

In addition, the contractor must seek and notify USAID of potential relevant opportunities for public/private partnerships and alliances under this program to further leverage impact.

Flexibility:

The Contractor must ensure financial, technical and programmatic flexibility within and across program components to respond to changing circumstances in the areas covered by this program. The Contractor may also propose to the USAID Contracting Officer additional or different approaches within the scope of this contract to demonstrate flexibility to accommodate changes. Should a peace accord be signed between the GOC and the FARC and/or ELN guerrillas RFS will need to be prepared to accommodate programmatic changes as directed by the CO and COR.

Build on Achievements to Date:

The Contractor must build upon and learn from project activities already completed and relationships already established over the course of the past ten years with support provided under the More Investment for Sustainable Alternative Development (MIDAS) Program and the Public Policy Program, including publications and materials produced, as well as persons trained. To the extent possible, those activities and relationships should provide a resource for continuing and future initiatives10.

Performance Evaluation:

The RFS Project may be subject to performance evaluation, fully compliant with the requirements of USAID’s 2011 Evaluation Policy, which can be found on the following web site:

http://www.usaid.gov/evaluation/. Offerors who respond to this Request for Proposals (RFP) should be familiar with the content and requirements of this policy.

Moreover, the Contractor will be required to cooperate with and facilitate the work of an independent organization that would design and implement the evaluation. The suggested approach includes mixed methods, whereby the information is both quantitative and qualitative to strengthen its findings. USAID encourages the involvement of relevant stakeholders, therefore the Contractor can be asked to coordinate meetings and provide logistics support in the field.

The Contractor may also be required to cooperate with an independent organization if the Mission decides to conduct a more rigorous sector evaluation or impact study across the Development Objective 3, including baseline and mid-term evaluation.

The performance evaluation may take place a year and a half before the project’s termination, in order to give the implementing partner the opportunity to make course corrections if these are relevant. In consequence, it is important for the contractor to incorporate the findings, 10 The document “USAID’s Support to the Development of the Financial Sector in Colombia” summarizes USAID activities in the Colombian financial sector between 2004 and 2013.

conclusions and recommendations in the project cycle.

Integrate best practices and lessons learned:

To learn from this program, the Contractor will document best practices and lessons learned and share this information with practitioners, donor organizations, the financial sector, the development community, stakeholders and the GOC. The Contractor will measure and document project achievements and shortcomings so that USAID’s multiple stakeholders gain an understanding of the returns from the investment in this activity. The crosscutting component for learning, knowledge management and communications seeks to build USAID’s expertise and connect stakeholders to the latest field findings, best practices and lessons learned.

C.4 TASKS

The Contractor must achieve the expected results listed under each of the following components. Activities must be closely coordinated with selected financial intermediaries (commercial banks, finance companies, savings and loan cooperatives and financial NGOs).

The Contractor will focus on the broad spectrum of potential finance users, ranging from the smallest economic actors and traditionally excluded that have limited or no access to financial services, to the engines of growth, i.e.; rapidly growing rural enterprises and farms with requirements for more sophisticated and longer-term financing instruments.

C.4.1 Component 1: Improved Rural Financial Intermediation

This project component seeks to strengthen the financial intermediation capacity to service rural entrepreneurs, advance and incorporate new and innovative products that respond to market demand. The Contractor will examine strategies for expanding the availability and range of financial services. The component priority is to build financial retail capacity in selected rural areas.

Problem Statement

Colombia has an adequate and sophisticated banking system and infrastructure, but rural financial intermediation is not working well due to serious distortions caused by the existing public approaches to rural financial services with an outdated model of subsidized intervention and the lack of innovative products to service rural areas. Lessons learned over a period of years indicate that subsidized credit programs distort rural financial markets and crowd-out the participation of PFIs which are essential to promote financial deepening and sustainability to underserved clients. PFIs need to create innovative financial services products and delivery systems and reduce the transaction costs to successfully penetrate rural markets. Rural financial markets are also affected by the PFIs lack of understanding of the agricultural sector, high transaction costs due to client dispersion, perceived high risk, lack of adequate collateral, security issues and PFIs urban-bias.

Illustrative Activities

The first step to tap into the rural market is to better understand the needs of the financial sector (supply-side) as well as those of the rural clientele (demand-side). The financial services needs of low income rural households are not homogenous and require a different suite or menu of financial products. The following are illustrative examples of activities that could be supported under Component One Improved Rural Financial Intermediation. This list of activities is not intended to limit the types of activities that can occur in the different phases of project implementation or proscribe that all of these activities should be part of the contract. Rather this illustrative list demonstrates the range of programming that may be possible. At contract award, the Statement of Work will contain final required activities.

PFI partner selection based on a matrix of financial performance indicators, geographic coverage, strategic interest in rural financial services, and management commitment, amongst other measurements. Once selected in collaboration with USAID, an MOU11 may be developed with the PFIs to set the expectations, responsibilities and activities under this program.

Provide technical assistance to selected PFIs for the design of new financial products for agriculture lending, warehousing, leasing, value chain finance, savings, remittances and insurance. As the utility of these products is highly specific, their development should be responsive to on-the-ground needs/demand.

Accelerating the adoption of mobile financial services, payments systems and developing digital solutions and applications to reduce the transaction costs, expand geographic coverage and attract a diverse client base.

Replication and scale-up of projects – guidance on interventions based on available evidence for overcoming the last mile problem in mobile financial services.

Developing shared branching network to reduce transaction costs and increase points of services.

Providing technical assistance to PFIs in the financial deepening process (downscaling).

Developing credit selection and scoring mechanisms to improve initial risk assessment, reduce client acquisition costs and loans in arrears.

Introducing the use of electronic cards (credit & debit) to reduce transaction costs and sharing networks to expand access to terminals.

Capacity building resources – prototype resource materials to facilitate financial intermediaries to reduce transaction costs and manage portfolio risk when entering specialized lending areas in agriculture and rural businesses.

Providing technical assistance to facilitate the implementation of recent reforms that allow mobile collateral to be used as credit guarantee.

Diagnostic resources –identify key socio-economic constraints to Women’s entrepreneurship, Afro-Colombians, Indigenous and other vulnerable populations that have suffered disproportionately in the internal conflict so that these groups increase access to financial services.

Expected Results and Deliverables

1. At least two hundred thousand (200,000) new clients in selected rural areas that reflect the demographic diversity of those areas (i.e. Afro-Colombians, Indigenous, Women, LGTBI, etc).

2. A total of five hundred million ($500,000,000) disbursed in selected rural areas attributed to RFS.

3. MOUs and activity plans with at least twelve PFIs introducing financial services in previously underserved rural areas.

4. Rural clients mentioned in point 1 above effectively using at least ten (10) formal financial products including but not limited to savings accounts, small-amount savings

11 USAID will decide on a case by case basis if the MOU is signed between the PFI and USAID directly, or between the contractor and the PFI.

accounts, several insurance and micro-insurance products, value chain financial instruments and leasing.

5. PFIs with new points of service, or enhanced existing points of service.

C.4.2 Component 2: Reduced Barriers to Rural Financial Services

The second component seeks to extend the frontier of formal financial services to rural areas using the principle of profitability, sustainability and replicability by helping to reduce and remove entry barriers. RFS will help reduce risk and offset transaction cost and capital costs through two types of grants:

Incentive grants: the first grant fund will be used to reduce the costs of entry barriers of PFIs to service rural clients. The Offeror must budget two million for this fund. This grant fund will be leveraged on a 1:3 ratio, i.e., for every dollar USAID grants, the PFI will cost share with $3 additional dollars (both monetary and in kind). Potential grants could include market studies, opening pilot branches, developing a pipeline of loans (origination processes), training, as well as other innovative activities that lower the transaction cost of breaking-in the rural market. The Contracting Officer’s Representative (COR) will have substantial involvement in approving selection criteria and must approve the selection of recipients. In the proposal, the Offeror must present a one page annex, outlining the proposed methodology for selecting sub-award recipients.

Challenge grants: the second grant mechanism will be similar to USAID’s Development Innovation Ventures (DIV)12 and will be established by the Contractor. The Offeror must budget five million for this challenge grant mechanism. DIV seeks innovative ideas to significantly accelerate positive changes in expanding rural finance to selected geographical regions of Colombia. The challenge grants will encourage innovators to find new ways to bring financial services to farmers and rural enterprises through sustainable and scalable solutions that will create more and better economic opportunities in rural Colombia. The DIV model rests on three fundamental principles:

Cost Effectiveness – A truly innovative development project will be able to achieve greater development impacts per dollar than standard practice.

Rigorous Testing – In order to know what works and what does not, development projects need to credibly show their impact through collected evidence. The process of collecting evidence often takes the form of a randomized control trial (RCT) or another rigorous form of determining impact.

Pathways to Scale – Projects that can change the landscape of development will need to eventually reach a large number of people. The sub-awardee must demonstrate a clear strategy for achieving scale and some credible steps towards executing that plan.

Innovative solutions may include new technologies, new service delivery practices, financial service methodologies or products, more cost-effective variations of existing methodologies or products, or new practices. These solutions may be at various stages of development. Newer projects will need to pilot efforts to see if there is any adoption while more developed initiatives that require more funding will be ready to thoroughly and rigorously test for impact or rapidly expand implementation. This grant fund will be leveraged on a 1:1 ratio; 50% with USAID’s

12 http://www.usaid.gov/div/about funds and 50% cost-shared by the organization. The COR will have substantial involvement in approving selection criteria and must approve the selection of recipients.

Risk reduction will primarily take place through the utilization of a DCA guarantee instrument issued by USAID. The guarantee risk assessments will be conducted directly by USAID but the Contractor will provide technical support in identifying PFIs that want to improve their retail capacity in rural areas and facilitate the gathering of the appropriate financial data as requested by USAID. The selected Contractor will be responsible for promoting the usage of the guarantee by supporting a pipeline of potential rural projects and working with the PFI credit officers to improve the loan origination and credit risk processes.

Problem Statement

Colombia has a financial system that adequately serves the urban areas but does not provide adequate or sufficient financial services to rural areas. The rural areas are primarily served by a public financial model (FINAGRO – a second tier lending facility and BAC - Banco Agrario de Colombia) that uses subsidized loans with limited results, reaching only 16% of the smaller farmers. The amount of the portfolio dedicated to rural customers since the year 2000 represents 4% to 5% of total Agriculture GDP and is one of the lowest in the region as may be observed in figures 3 and 4. PFIs are crowed-out by the subsidized loan policy from the public entities. This component seeks to lower the transaction cost so that PFIs rural retail capacity may be strengthened and its overall risk reduced through USAID guarantees and grants.

Figure 3 Evolution of % GDP Agri /Total GDP and Figure 4 Comparison with LAC

% Agri Portfolio/Total Portfolio

Source: FINAGRO.