SOL-72012118R00005_USAID_Economic_Resilience_Activity.pdf

Request for Proposals (RFP) No.

SOL-72012118R00005

Issue Date: April 5, 2018 Questions Due: April 16, 2018, 9:00 am Kyiv local time Pre-Proposal Conference: April 23, 2018, 2:00 pm Kyiv local time Closing Date: May 18, 2018, 4:00 pm Kyiv local time

Subject: Request for Proposal (RFP) No. SOL-72012118R00005 USAID/Ukraine - USAID Economic

Resilience Activity

The United States Agency for International Development (USAID) is seeking proposals to implement the USAID Economic Resilience Activity as described in the attached Request for Proposals (RFP). USAID/Ukraine anticipates awarding one cost plus award fee type contract with a period of performance of five (5) years. The maximum amount of the contract (including costs and fee) is in the range of $60 and $65 million, subject to the availability of funds.

Cost-effective approaches to achieving the results stated in the government requirement are highly encouraged.

Proposals will be accepted from eligible organizations. The principal geographic code for this contract is 110 and 937.

The North American Industry Classification System (NAICS) code for this acquisition is 541990. USAID discourages the use of exclusive agreements with international or regional/local organizations as this limits USAID’s ability to receive the best services.

Please refer to Section L for information regarding proposal requirements. Offerors should take into account the expected delivery time required by the email transmission method, and they are responsible to ensure that proposals are received at USAID by the closing date and time as specified above. Failure to comply with the submission date will deem any submission unacceptable and it will not be reviewed or evaluated. Proposals must be signed by an official who is authorized to bind the organization and are to be submitted to USAID no later than the closing date and time stated above.

Section L of the RFP sets forth all instructions for the preparation and submission of required proposal contents. Section M states the criteria by which proposals will be evaluated. Oral explanations or instructions given before award of the contract will not be binding.

Any questions regarding this solicitation must be submitted in writing via email to Maria Televantos mtelevantos@usaid.gov with a copy to Olga Luchuk-Vysotska at oluchukvysotska@usaid.gov by the date and time specified above.

Only electronic proposals will be accepted. Proposals must be sent to mtelevantos@usaid.gov and oluchukvysotska@usaid.gov

Pre-Proposal Conference: A pre-proposal conference will be held on April 23, 2018 in Kyiv, Ukraine. The purpose of the Pre-Proposal Conference is to ensure an understanding of the RFP’s technical objectives and to review the proposal process. The Conference agenda will include a short presentation of the RFP and a question/answer session based on participants’ review of the RFP. All interested potential Offerors are welcome to attend, but it will be limited to 2 representatives per Offeror and all attendees must register. If you are interested in attending the Pre-Proposal Conference, please send an email to Maria Televantos, via e-mail at mtelevantos@usaid.gov with a copy to Olga Luchuk-Vysotska at oluchukvysotska@usaid.gov by April 16, 2018. Include the name of your organization and the mailto:mtelevantos@usaid.gov mailto:oluchukvysotska@usaid.gov mailto:mtelevantos@usaid.gov mailto:oluchukvysotska@usaid.gov mailto:mtelevantos@usaid.gov mailto:oluchukvysotska@usaid.gov name(s) of the person(s) who will attend. USAID will respond with an email confirming registration, details of the location of the meeting, and a confirmation of the date and time. You must have a registration confirmation in order to be guaranteed entrance. An amendment to the solicitation will be posted shortly after the conference containing the presentation and questions and answers covered during the conference.

This RFP in no way obligates USAID to award a contract nor does it commit USAID to pay any cost incurred in the preparation and submission of a proposal. Award of a Contract under this RFP is subject to availability of funds and other internal USAID approvals.

This RFP can be viewed and downloaded from www.fedbizopps.gov. USAID bears no responsibility for data errors resulting from transmission or conversion processes. Further, be aware that amendments to solicitations are occasionally issued and will be posted on the same website from which you downloaded the solicitation. USAID advises to regularly check the above website for amendments.

Thank you for your interest in working with USAID.

Sincerely, ______/s/_______

Maria Televantos Contracting Officer http://www.fedbizopps.gov/

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 hand carried, 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 FACOTRRS 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 OFFER 15A. 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 BY CODE CODE

26. NAME OF CONTRACTING OFFICER (Type or print)

Maria Televantos

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 N/A

SOLICITATION

OFFER (Must be fully completed by Offeror)

AWARD (To be completed by Government)

X

04/5/2018 REQ-121-18-000031

USAID/Ukraine/Regional Contract Office Department of State 5850 Kyiv Pl.

Washington D.C. 20521-5850

16:00 (Kyiv LT) 05/18/2018

Olga Luchuk-Vysotska

380445215431 oluchukvysotska@usaid.gov See Attached Table of Contents

X 1

X 8-10

X 11-29

X 30-31

X 32

X 33-44

X 45-49

X 50-71

X 72-91

X 92

X 93-101

X 102-116

X 117-119

USAID/Ukraine/Regional Contract Office

USAID/Ukraine/Office of Financial Management

4 Igor Sikorsky Street, Kyiv 04112, Ukraine; Phone: +380 (44) 521 5000; Fax: 521-5245; http://ukraine.usaid.gov

TABLE OF CONTENTS

PART I – THE SCHEDULE

SECTION B – SERVICES AND PRICE/COSTS

B.1 PURPOSE

B.2 CONTRACT TYPE AND CONTRACT SERVICES

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

B.4 CONTRACT BUDGET AND CEILINGS

B.5 INDIRECT COST

B.6 ADVANCE UNDERSTANDING ON CEILING INDIRECT COST RATES AND

FINAL REIMBURSEMENT FOR INDIRECT COSTS

B.7 PAYMENT OF AWARD FEE

B.8 MULTI-YEAR CONTRACT AND CANCELLATION CEILING

SECTION C – DESCRIPTION/SPECIFICATIONS/STATEMENT OF WORK

C.1 TITLE OF ACTIVITY

C.2 PURPOSE

C.3 CONTEXT AND BACKGROUND

C.4 ACTIVITY APPROACH AND OBJECTIVES

C.5 IMPLEMENTATION PRINCIPLES

C.6 GEOGRAPHIC TARGETING

C.7 MONITORING, EVALUATION, AND LEARNING

SECTION D – BRANDING AND MARKING

D.1 AIDAR 752.7009 MARKING (JAN 1993)

D.2. BRANDING STRATEGY (BS)

D.3 BRANDING AND MARKING POLICY AND CREATION AND DEVELOPMENT OF

WEBSITE

D. 4 BRANDING IMPLEMENTATION PLAN (BIP) AND MARKING PLAN (MP) .. 31

SECTION E – INSPECTION AND ACCEPTANCE

E.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE

E.2 INSPECTION AND ACCEPTANCE

SECTION F – DELIVERIES OR PERFORMANCE

F.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE

F.2 PERIOD OF PERFORMANCE

F.3 PLACE OF PERFORMANCE

F.4 PERFORMANCE STANDARDS

F.5 AUTHORIZED WORK WEEK

F.6 DELIVERABLES

F.7 KEY PERSONNEL

F.8 AIDAR 752.7005 SUBMISSION REQUIREMENTS FOR DEVELOPMENT

EXPERIENCE DOCUMENTS (September 2013)

F.9 GEOSPATIAL REPORTING REQUIREMENTS

SECTION G – CONTRACT ADMINISTRATION DATA

G.1 CONTRACTING OFFICER’S AUTHORITY

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

G.3 CONTRACTING OFFICER’S REPRESENTATIVE (COR)

G.4 PAYING OFFICE

G.5 INVOICING INSTRUCTIONS

G.6 ACCOUNTING AND APPROPRIATION DATA

G.7 TECHNICAL DIRECTIONS/RELATIONSHIP WITH USAID

USAID Economic Resilience Activity

G.8 CONTRACTOR’S PRIMARY POINT OF CONTACT

G.9 AWARD FEE EVALUATION

G.10 AIDAR 752.216-70 AWARD FEE (MAY 1997)

SECTION H – SPECIAL CONTRACT REQUIREMENTS

H.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE

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

H.3 ADS 302.3.5.19 USAID-FINANCED THIRD-PARTY WEB SITES (NOV 2017) ... 51

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

LIBRARY (DDL) (OCT 2014)

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

H.6 AIDAR 752.7007 PERSONNEL COMPENSATION (JULY 2007)

H.7 ADDITIONAL REQUIREMENTS FOR PERSONNEL COMPENSATION

H.8 AIDAR 752.228-70 MEDICAL EVACUATION (MEDEVAC) SERVICES (JUL 2007)

H.9 AIDAR 752.222-70 USAID DISABILITY POLICY (DEC 2004)

H.10 AUTHORIZED GEOGRAPHIC CODE

H.11 EXECUTIVE ORDERS ON TERRORISM FINANCING

H.12 COMMUNICATIONS AND OUTREACH APPROVAL REQUIREMENTS

H.13 GOVERNMENT FURNISHED FACILITIES OR PROPERTY

H.14 FOREIGN GOVERNMENT DELEGATIONS TO INTERNATIONAL

CONFERENCES

H.15 LOGISTICAL SUPPORT

H.16 LANGUAGE REQUIREMENTS

H.17 AIDAR 752.7032 INTERNATIONAL TRAVEL APPROVAL AND NOTIFICATION

REQUIREMENTS (APR 2014)

H.18 FRAUD REPORTING

H.19 ENVIRONMENTAL COMPLIANCE

H.20 DISCLOSURE OF INFORMATION

H.21 FACILITIES USED FOR RELIGIOUS ACTIVITIES

H.22 GRANTS UNDER CONTRACT

H.23 INSURANCE AND SERVICES

H.24 CONSENT TO SUBCONTRACT

H.25 CLOUD COMPUTING (MAY 2016)

H.26 ORGANIZATIONAL CONFLICT OF INTEREST

H.27 CONFLICT OF INTEREST

H.28 ELECTRONIC PAYMENT SYSTEM

H.29 AIDAR 752.204-72 ACCESS TO USAID FACILITIES AND USAID'S INFORMATION

SYSTEMS (MAY 2016) (DEVIATION NO. M/OAA-DEV-AIDAR-16-2c)

H. 30 ELECTRONIC AND INFORMATION TECHNOLOGY ACCESSIBILITY (MAY

2016) 70

PART II – CONTRACT CLAUSES

SECTION I – CONTRACT CLAUSES

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

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

REFERENCE (MAR 2015)

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

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

1990) 75

I.5 AIDAR 752.7025 APPROVALS (APR 1984)

I.6 AIDAR 752.7101 VOLUNTARY POPULATION PLANNING ACTIVITIES (JUNE

2008) 76

I.7 AIDAR 752.229-71 REPORTING OF FOREIGN TAXES (JULY 2007)

I.8 AIDAR 752.222-71 NONDISCRIMINATION (JUNE 2012)

I.9 AIDAR 752.231-72 CONFERENCE PLANNING AND REQUIRED APPROVALS

(AUG 2013)

I.10 AIDAR 752.7036 USAID IMPLEMENTING PARTNER NOTICES (IPN) PORTAL

FOR ACQUISITION (JUL 2014)

I.11 52.203-13 CONTRACTOR CODE OF BUSINESS ETHICS AND CONDUCT (OCT

2015) 79

I.12 52.203-19 – PROHIBITION ON REQUIRING CERTAIN INTERNAL

CONFIDENTIALITY AGREEMENTS OR STATEMENTS (JAN 2017)

I.13 52.217-2 CANCELLATION UNDER MULTI-YEAR CONTRACTS. (OCT 1997) 83

I.14 52.222-50 -- COMBATING TRAFFICKING IN PERSONS (MAR 2015)

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

SECTION J – LIST OF ATTACHMENTS

PART IV – REPRESENTATIONS AND INSTRUCTIONS

SECTION K - REPRESENTATIONS, CERTIFICATIONS, AND OTHER STATEMENTS

OF OFFERORS

K.1 NOTICE LISTING SOLICITATION PROVISIONS INCORPORATED BY

REFERENCE

K.2 FAR 52.204-8 ANNUAL REPRESENTATIONS AND CERTIFICATIONS (JAN 2018)

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

2015) 95

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

2013) 97

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 52.222-22 PREVIOUS CONTRACTS AND COMPLIANCE REPORTS (FEB

1999) 98

K.7 FAR 52.222-25 AFFIRMATIVE ACTION COMPLIANCE (APR 1984)

K.8 FAR 52.225-2 BUY AMERICAN CERTIFICATE (MAY 2014)

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

CERTIFICATION (OCT 2015)

K.10 FAR 52.230-7 PROPOSAL DISCLOSURE—COST ACCOUNTING PRACTICE

CHANGES (APR 2005)

K.11 INSURANCE—IMMUNITY FROM TORT LIABILITY

K.12 AUTHORIZED NEGOTIATORS

K.13 SIGNATURE

SECTION L – INSTRUCTIONS, CONDITIONS, AND NOTICES TO OFFERORS

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

(FEB 1998)

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

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

L.4 GOVERNMENT OBLIGATION

L.5 GENERAL INSTRUCTIONS TO OFFERORS

L.6 PROPOSAL SUBMISSION

L.7 FORMAT AND PRESENTATION

L.8 INSTRUCTIONS FOR THE PREPARATION OF THE TECHNICAL PROPOSAL

L.9 INSTRUCTIONS FOR THE PREPARATION OF THE COST PROPOSAL

SECTION M – EVALUATION FACTORS FOR AWARD

M.1 GENERAL INFORMATION

M.2 TECHNICAL EVALUATION CRITERIA

M.3 COST PROPOSAL EVALUATION

M.4 DETERMINATION OF COMPETITIVE RANGE

M.5 SOURCE SELECTION

ATTACHMENT J.1 AWARD FEE PLAN

ATTACHMENT J.2 RECOMMENDED RESOURCES

PART I – THE SCHEDULE

SECTION B – SERVICES AND PRICE/COSTS

B.1 PURPOSE

The purpose of this contract is to provide technical assistance and other services as described in detail in Section C for the implementation of USAID/Ukraine’s program entitled “USAID Economic Resilience Activity.”

B.2 CONTRACT TYPE AND CONTRACT SERVICES

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

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

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

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

B.4 CONTRACT BUDGET AND CEILINGS

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

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

ITEM Total

PROGRAM COSTS*

GUC $15,000,000.00

TOTAL MINUS FEE

BASE FEE

MAXIMUM AWARD FEE

TOTAL ESTIMATED COST

*Program Costs include direct costs and indirect costs excluding GUCs.

B.5 INDIRECT COST

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

Description Rate Base Type Period

% 1/ 1/ 1/

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

1/ Base of Application:

Type of Rate:

Period:

2/ Base of Application:

Type of Rate:

Period:

3/ Base of Application:

Type of Rate:

Period:

B.6 ADVANCE UNDERSTANDING ON CEILING INDIRECT COST RATES AND

FINAL REIMBURSEMENT FOR INDIRECT COSTS

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

Description Rate Base Period

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

1/ Base of Application:

Period:

2/ Base of Application:

Period:

3/ Base of Application Period:

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

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

B.7 PAYMENT OF AWARD FEE

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

The maximum award fee must be made available to the Contractor in six (6) increments, with the first evaluation occurring six months after the award date, and the remaining five evaluations occurring annually, on the anniversary of the award date, as specified below:

Period of Performance Period*

(Start/End date) Amount of Award Fee Available

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

* Period will be completed upon contract award.

The determination of the award fee, if any, earned by the Contractor must be in accordance with the Award Fee Evaluation Plan. Per FAR 16.401(e)(4), unearned award fee cannot rollover from one award fee increment to the next award fee increment.

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

B.8 MULTI-YEAR CONTRACT AND CANCELLATION CEILING

This contract is considered non-severable, and is therefore a multi-year contract as defined in FAR

17.103. Therefore, this contract is subject to the requirements of FAR 17.106.

a. Performance under this contract during the second and subsequent 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:

This is a CPAF type contract where the Contractor is authorized to be reimbursed for all costs which are allowable in accordance with FAR 52.216-7, “Allowable Costs and Payment.”

Therefore, the Contractor will not incur any costs which would have been amortized over the life of the contract should the contract be cancelled in accordance with FAR 52.217-2.

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

Program Year Cancellation Date Cancellation Ceiling

Year 1: 2018/2019 N/A N/A Year 2: 2019/2020 DATE TBD, 2019 $TBD Year 3: 2020/2021 DATE TBD, 2020 $TBD Year 4: 2021/2022 DATE TBD, 2021 $TBD Year 5: 2022/2023 DATE TBD, 2022 $TBD

[END OF SECTION B]

SECTION C – DESCRIPTION/SPECIFICATIONS/STATEMENT OF WORK

C.1 TITLE OF ACTIVITY

The title of this USAID/Ukraine activity is the USAID Economic Resilience Activity.

C.2 PURPOSE

The purpose of the USAID Economic Resilience Activity (ERA) is to improve the overall economic resilience of eastern Ukraine in response to Russian aggression, which has disrupted critical market linkages, catalyzed the economic decline of previously dominant industries, and caused massive population disruption. Resilience is “the ability of people, households, communities, countries, and systems to mitigate, adapt to, and recover from shocks and stresses in a manner that reduces chronic vulnerability and facilitates inclusive growth.” This activity aims to improve the economic resilience of eastern Ukraine through accomplishing the following objectives:

• OBJECTIVE 1: Provide assistance to stabilize the Economy of Eastern Ukraine

• OBJECTIVE 2: Support the Sustainable Development of small and medium enterprises (SMEs) in Eastern Ukraine

• OBJECTIVE 3: Build Confidence in the Future of the Eastern Ukrainian Economy

By accomplishing these objectives, the economy of eastern Ukraine will be more diversified, more integrated with the rest of Ukraine, less dependent on Russia, and the region’s residents will be better equipped to compete for the jobs of the future, thereby improving the economic resilience of the region.

The activity will work primarily in the oblasts most affected by Russia’s aggression, Donetsk and Luhansk—together known as the “Donbas” region—but will also be active in the surrounding oblasts and throughout Ukraine as required to achieve the objectives. See C.6 Geographic Targeting for a more comprehensive definition of “eastern Ukraine.”

C.3 CONTEXT AND BACKGROUND

In the wake of Ukraine’s 2013 EuroMaidan protests and 2014 Revolution of Dignity, the country set out on a path of ambitious, European-oriented reforms to revitalize the Ukrainian economy. These include ongoing and future reforms related to anti-corruption, the pension system, the financial sector, the energy sector, public procurement, decentralization, the health system, and potentially land reform, among others. These efforts have nevertheless been hampered by Russia’s unbridled aggression in the east. In February 2014, Russia launched an unprecedented intervention into Ukraine, illegally annexing the Ukrainian territory of Crimea, then sending military forces into Ukraine’s Donbas region, initiating a war that has taken thousands of Ukrainian lives, induced massive population displacement, and destabilized the country’s economy.

C.3.1 Impacts of Russia’s Aggression in Ukraine

While the impacts of Russia’s aggression are manifest throughout Ukraine, they are particularly visible in Donbas, the surrounding oblasts, and Crimea. Since the onset of conflict in spring 2014 up to November 2017, over 10,000 Ukrainians have been killed, according to the Office of the United Nations High Commissioner for Human Rights (UNHCR). According to USAID’s Office of Foreign Disaster Assistance (OFDA), as of January 2018, 3.4 million people are in need of humanitarian assistance and 1.6 million people are considered internally displaced persons (IDPs) as a result of the conflict.

https://docs.google.com/document/d/1kIS6Oh-rEKGMbgTniYV_DW8iCuSB7f8u6Xt1jjVLi9M/edit#bookmark=id.gkj1mdj5prxf

Credible reports by the UNHCR, the Organization for Security and Co-operation in Europe (OSCE) Special Monitoring Mission (SMM), and watchdog groups show that despite efforts to achieve peace in Donbas, the parties have failed to comply with the Minsk II peace agreements, with grave human rights consequences for the conflict-affected population, especially those living near the contact line and in non-government controlled areas (NGCAs).

Populations in eastern Ukraine harbor perceptions of being left out, marginalized, or rebuked for allegedly being Russian-leaning. This population is also the group most unaware and skeptical of Ukraine’s reform process. As a result, they are less accepting of the national government’s proclamations and policies than other parts of the country. Since the Revolution of Dignity, early progress has been made in implementing reforms. However, especially in the east and South, enduring governance, economic growth, and service delivery challenges, along with the impact of Russia’s attempts to propagate divisive narratives and exploit existing social divisions, are undermining greater support for Ukraine’s democratic transition and European future.

C.3.2 Eastern Ukrainian Economy

The economic fortunes of the eastern Ukraine are important to the future of Ukraine. The Donbas economy was in decline before the onset of the conflict, with a lack of investment and inefficiencies in state-owned enterprises necessitating unsustainable government subsidies to the region. Russia’s intervention in the region has catalyzed that decline. Nearly four years after Russian-led forces took control of the eastern part of the region, the economy in areas controlled by the Ukrainian government— known as government controlled areas (GCAs)—remains stalled. Critical market and industrial linkages have been disrupted leaving smallholder farmers without access to markets. Finance is all but unavailable due to the risk inherent in investing or lending in an active conflict zone. Large industries have closed, small businesses have difficulty starting up and growing, close to a fifth of the workforce is unemployed, and young people are leaving for better prospects elsewhere. Surveys show that residents in Ukrainian-controlled territory are alienated—they have little trust in the government in Kyiv and little hope that their lives will improve.

Trade in the region has also been disrupted. On the international stage, trade restrictions imposed by Russia, many of which specifically target the predominant sectors in eastern Ukraine—machine-building enterprises, agriculture, and metallurgical products—have caused the region’s exports to fall. Local trade between the GCAs and NGCAs in the region has also been contentious. After separatists from the NGCAs moved to seize control of steel, mining, and other enterprises in March 2017, Ukrainian authorities in Kyiv imposed a ban on rail and road cargo links between the GCAs and NGCAs.

As noted earlier, over 1.6 million Ukrainians have become IDPs, representing not just a mass exodus of human capital, but an enormous demographic and socio-economic shift within the country. “Brain drain” is a threat to the economy’s future, as is the high number of elderly people in the region in need of assistance. According to the 2018 Humanitarian Response Plan for Ukraine, “The elderly constitute a significant proportion of the conflict-affected population in Ukraine, making up almost 30 percent of the

3.4 million people in need of humanitarian assistance and protection, and half the total number of registered IDPs.” This is the largest percentage of elderly people affected by conflict in a single country, and reflects the unique demographics of the crisis in the east.

C.3.3 Scenario Planning

Given the status of the war, any number of scenarios could emerge over the next five years. These include the war continuing at current levels; a further distancing and alienation of populations in these regions; an intensification of the conflict; or the opposite—greater access to parts of Donbas not currently under the Government of Ukraine’s (GOU’s) control. Multiple scenarios should be anticipated, including when opportunities arise to work across the present-day “line of contact” to rebuild social and cultural ties. See section C.4.4 Flexibility in implementation for more details.

C.3.4 Relation to USAID’s Strategy

USAID/Ukraine is currently developing its five-year Country Development Cooperation Strategy (CDCS) for the 2018-2023 period. The draft results framework for this forthcoming CDCS is included below and reflects U.S. Government strategic priorities to tackle corruption, mitigate the impacts of Russia’s aggression, strengthen democracy, and improve Ukraine’s economic prospects.

ERA will contribute to USAID/Ukraine’s Development Objective 2 (DO2): Impacts of Russian Aggression Mitigated, and the Intermediate Result (IR): Conditions Improved for Reintegration. This IR refers generally to improving the governance and economic conditions of eastern Ukraine in order to align the region with the democratic, European trajectory of the rest of the country.

Russia’s intervention into Ukraine has disrupted critical market linkages, catalyzed the economic decline of previously dominant industries, and caused massive population disruption. In addition, the conflict has exposed fundamental weaknesses in the regional economy including an overdependence on Russia as a trading partner, an overreliance on big business for employment, and an undiversified economy. This activity will improve the resilience of the eastern Ukrainian economy by stabilizing the regional economy, strengthening and increasing the number of small and medium enterprises (SMEs), and building confidence in a the regional economy. Under DO2, an early focus of activity in the GCAs of Donetsk and Luhansk oblasts is expected, but this could change in connection with fluctuations in the conflict (see C.6 Geographic Targeting).

C.3.5 Programmatic Linkages

Achieving the objectives of ERA will require coordination with the assistance portfolios of the U.S.

Government, the Ukrainian government, as well as the international donor community. The contractor must coordinate and collaborate with the stakeholders as discussed below.

C.3.5.1 Relationship to the new Democracy and Governance Activity

Concurrently with ERA, USAID is procuring a new democracy and governance activity focused on eastern Ukraine. ERA and this new activity must work in close coordination to address the economic and governance challenges facing eastern Ukraine in a holistic fashion. See C.4.5 Joint Planning Sessions for more details. These activities will comprise USAID’s core investments in eastern Ukraine.

C.3.5.2 Relationship to Office of Foreign Disaster Assistance and Office of Transition Initiatives Programs

USAID is also seeking to build on the successes of USAID’s humanitarian relief and stabilization programs, implemented respectively by the Office of Foreign Disaster Assistance (OFDA) and the Office of Transition Initiatives (OTI).

Since the crisis in eastern Ukraine began in FY 2014, the U.S. government has provided more than $160 million in humanitarian assistance for Ukraine. This funding supports international organizations, non-governmental organization (NGO) partners, and United Nations (UN) agencies, operating in both government-controlled and non-government-controlled areas of Ukraine. OFDA’s major areas of assistance include emergency shelter, provision and distribution of relief commodities, children and elderly protection activities, psychosocial support, repair to water infrastructure, and support for short-term job creation for internally displaced persons.

With respect to USAID’s stabilization program, OTI’s Ukraine Confidence Building Initiative (UCBI), among other objectives, supports interventions that foster entrepreneurship and engagement in the new economy among youth. Among OTI’s accomplishments is a network of creative spaces across the east where young, reform-minded Ukrainians can foster their skills in information and technology (IT) or learn how to start a small business. As work proceeds under this contract, the Contractor must leverage the relationships, networks, and counterparts in the region established by OTI and OFDA. Much of the initial coordination with the UCBI activity must be facilitated via the joint work-planning sessions referenced in C.4.5 Joint Planning Sessions.

C.3.5.3 Relationship to Other U.S. Government Activities

More broadly, the U.S. Government maintains a complex portfolio of activities in economic growth, energy, health, and democratic governance that contributes to the objectives described above. A number of these activities will increasingly work in eastern Ukraine or are engaged in similar interventions to support reform and European integration. The contractor’s coordination with activities in eastern and southern Ukraine is critical, as USAID’s strategic approach presumes cross-activity leveraging to achieve intended development results.

Current and planned USAID/Ukraine Office of Economic Growth (OEG) activities for eastern Ukraine are listed in the box below:

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USAID OEG Activities Working in Eastern Ukraine

Ongoing Activities

• Economic Opportunities for People Affected by Conflict (EOPAC): $2 million activity helping people affected by the conflict to establish or relocate small businesses. Main activities include business skills trainings, a grants program, and capacity building for SMEs.

• The Municipal Energy Reform Project (MERP): $16.5 million activity working with five partner cities and three associated partner cities in the Donbas region to plan and identify energy development priorities related to thermal modernization, clean energy, and renewable energy.

• Agriculture and Rural Development Support (ARDS): $21.5 million country-wide activity providing targeted assistance in Luhansk and Donetsk oblasts to rural communities, farmers, and rural non-agricultural SMEs.

• Financial Sector Transformation (FST): $24.3 million activity working country-wide to build public confidence in Ukraine’s financial sector and improve access to finance through non-bank financial institutions and digital finance.

• Credit for Agriculture Producers (CAP): $5 million country-wide activity expanding agriculture producers' access to finance via credit unions (CUs) by working with individual CUs as well as their associations, the regulator, and policymakers. CAP is working with eight credit unions in eastern and southern Ukraine.

• Development Credit Authority (DCA) Support for Credit Unions: USAID has a DCA with Oikocredit to increase access to finance for microfinance institutions and SMEs, also active country-wide.

Planned Activity

• Competitive Economy Program (CEP): A new USAID activity that will improve Ukraine’s global competitiveness. In addition to working with the Government of Ukraine (GOU) to improve Ukraine’s business enabling environment, CEP will develop a municipal competitive index that will include principal Donbas municipalities.

In addition to OEG’s portfolio, the Contractor must actively seek out opportunities to leverage the work of other USAID activities working on decentralization, health reform, anti-corruption, among others.

C.3.5.4 Relationship to the Work of Humanitarian and Development Partners

The Contractor must coordinate extensively with relevant stakeholders funded by other donors and must propose to the USAID Contracting Officer’s Representative (COR) how to adapt contract activities over time to match with the changing character of these projects. Given the large number of humanitarian assistance providers that began working in Ukraine following the onset of the conflict in 2014, it will be important for ERA to establish relationships and coordinate work with humanitarian implementers through the United Nations Office of the Coordination of Humanitarian Affairs (OCHA).

In addition, a number of development agencies are currently or planning to implement programs in eastern Ukraine. These development actors include—among others—the EU, Canada, Japan, the United Nations Development Programme (UNDP), United Kingdom, KfW, GIZ, the International Organization for Migration (IOM), the World Bank, the European Investment Bank (EIB), and the European Bank for Reconstruction and Development (EBRD). The GOU, including the Ministry of Temporarily Occupied Territories (MTOT), oblast administrations, and other government actors are also planning initiatives.

The depth of coordination will depend on the relevancy of the project in question. However, the Contractor must conduct a broad range of coordination efforts, from joining coordination bodies, to one-on-one engagement, to joint planning. The Contractor must coordinate appropriately and include information in the quarterly report on that coordination. In addition to coordination, the Contractor must also leverage non-U.S. Government funds specifically.

C.4 ACTIVITY APPROACH AND OBJECTIVES

This section describes the orientation of the activity, including the theory of change, objectives, and what USAID believes should be the priority areas of work under each objective. The Contractor’s approach must be responsive to the implementation principles described in C.5. The Contractor must closely coordinate with the COR to develop an approach through the workplanning process. It will be subsequently re-assessed in joint planning sessions held regularly in consultation with USAID as described in C.4.5.

C.4.1 Theory of Change

The Theory of Change for the overall activity described in this SOW is as follows:

IF USAID:

• Provides assistance to stabilize the economy of eastern Ukraine; and

• Supports the sustainable development of SMEs in eastern Ukraine; and

• Builds confidence in the future of the eastern Ukrainian Economy—

THEN:

• Improved confidence in the future of the eastern Ukrainian economy will induce more Ukrainians to make investments in eastern Ukraine, to invest in their human capital, and to start their own businesses;

• Investors, entrepreneurs, and firms will be encouraged to consider new business activities that increase incomes and employment in eastern Ukraine;

• The number of SMEs and entrepreneurs will increase, expanding the regional private sector and making the regional economy less dependent on big businesses;

• Increased economic activity in the region and stronger economic ties to the rest of the country and the EU will reduce eastern Ukraine’s dependence on Russia as a trading partner;

• Perceptions about the economic downturn of eastern Ukraine will be improved;

• All of which will make the region’s economy more resilient and less susceptible to economic shocks and Russian pressure.

BECAUSE:

• Russia’s intervention into the Donbas has made it clear that over dependence on Russia, Russian-influenced oligarchs, and outdated industries must change for Ukraine to be secure, independent, and prosperous.

C.4.2 Objectives

The overarching goal of this activity is to improve the overall economic resilience of eastern Ukraine exacerbated by Russia’s aggression. This goal must be attained through achieving three objectives:

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• OBJECTIVE 1: Provide Assistance to Stabilize the Economy of Eastern Ukraine

• OBJECTIVE 2: Support the Sustainable Development of SMEs in Eastern Ukraine

• OBJECTIVE 3: Build Confidence in the Future of the Eastern Ukrainian Economy

The activity objectives are complementary and aligned with other USAID programming as described in section C.3.5. Activities will initially be centered in Donbas, understood here as all of Donetsk and Luhansk oblasts, but may extend to other parts of Ukraine, as described in section C.5.1 below.

These objectives are sequenced in terms of the short-, medium-, and long-term priorities of the region.

Objective 1 must address the immediate short-term economic needs of the region resulting from the conflict with the goal of jump starting an economic recovery. Interventions under Objective 1 must closely dovetail the work begun by OTI, OFDA, and other related USAID activities to focus on creating economic opportunities for conflict-affected persons, addressing the needs of conflict-affected businesses, and rehabilitating small-scale infrastructure in the region as quickly as possible.

Objective 2 addresses the medium-term constraints to sustainable economic growth in eastern Ukraine.

Under Objective 2, the Contractor must work with entrepreneurs and SMEs with a strong potential for growth in eastern Ukraine, while at the same time working to cultivate stronger economic ties to Western Ukraine, and international markets. An improved enabling environment for SMEs in eastern Ukraine made possible through investments in key human capital institutions, support for policies for SME development, and increased access to finance must lay the foundation for Objective 3.

Objective 3 is oriented to the long-term economic trajectory of the region. The conflict—in combination with global market forces—has made the traditional industries of eastern Ukraine no longer competitive.

This collapse is depriving the region of its economic security and identity. For eastern Ukrainians to have confidence in their economic futures, the Contractor must support the region to develop new innovative growth sectors, find new approaches to activating the economic potential of the industrial infrastructure that is already in place, establish a new vision for the future of the regional economy, and take steps toward making that vision a reality.

These three objectives are complementary. Advances under one objective must inform programming under the others. To the extent possible, feedback loops must be developed for maximum impact. Some of the businesses, for example, provided with immediate support under Objective 1 may "graduate" to receiving assistance under Objective 2. Furthermore, the economic vision developed under Objective 3 must inform the policy changes under Objective 2, and successes under Objective 2 must help build confidence in the regional economy. The combined impact of achieving these objectives must be an elevated role for SMEs in the regional economy, and a national economy that is more closely integrated, more resilient, and therefore less susceptible to economic shocks stemming from Russia’s intervention, Russian trade sanctions, and regional volatility.

C.4.2.2 OBJECTIVE 1: Provide Assistance to Stabilize the Economy of Eastern Ukraine

Objective 1 addresses the short-term economic recovery needs of eastern Ukraine related to the conflict in order to jumpstart the economic recovery of the region. Where the other objectives look to the medium- and long-term economic recovery of the reasons, the focus of Objective 1 is “quick-wins” that yield immediate results. In order to accomplish this, the Contractor must mobilize its key personnel and core staff and submit activity registration documents within 30 days of contract award. Under Objective 1, the Contractor must create economic opportunities for conflict-affected people, provide assistance to conflict-affected businesses, and rehabilitate small-scale infrastructure in the region as it pertains to economic growth. The Contractor's approach to achieving Objective 1 must be especially flexible given that the economic recovery needs of the region will vary with the trajectory of the conflict.

Under Objective 1, the Contractor must increase the number of economic opportunities available to IDPs, returnees, and other vulnerable populations (see C.5.5). Approximately 4 million Ukrainians need humanitarian assistance, and 1.6 million people have been displaced internally as a result of the conflict, many to the GCAs of the Donbas region and the surrounding oblasts. Many of these IDPs, as well as other vulnerable populations, have not fully integrated into their communities due to their lack of economic opportunities. The GOU's IDP Strategy, for example, states that less than a third of "able-bodied IDPs have permanent jobs." Other conflict-affect populations include smallholder farmer who have lost their markets in the NGCA or urban industrial workers who have been laid off. The humanitarian Food Security and Livelihood Cluster in September 2017 estimated that more than 360,000 unemployed people within Donbas, and 44,000 IDPs outside of Donbas, are unable to cover essential basic needs and are in need of livelihood support.

SMEs in the region are also struggling to recover from the conflict. Many report a loss of business revenue due to damaged infrastructure, equipment, and inventories. Under Objective 1 the Contractor must rapidly assess and provide for the immediate needs of SMEs in eastern Ukraine, with an eye toward stimulating an immediate rebound of economic activity and creating jobs. The Contractor must address small-scale infrastructure needs in the region, and must have the ability to rapidly and flexibly respond to such needs.

Expected Results Under Objective 1

• Increased economic opportunities for conflict-affected populations and businesses in eastern Ukraine;

• Targeted small-scale infrastructure rehabilitated;

• Targeted small-scale infrastructure bottlenecks addressed;

• Conflict-affected inventories and equipment for SMEs restored to pre-conflict levels through an economically-sustainable approach;

Minimum Indicators Under Objective 1

• Number of jobs created as a result of USAID-provided assistance

• Number of beneficiaries receiving improved infrastructure services due to USG assistance

C.4.2.3 OBJECTIVE 2: Support the Sustainable Development of SMEs in Eastern Ukraine

Objective 2 looks to the medium-term economic recovery needs of the region by supporting the sustainable development of SMEs in eastern Ukraine. Under Objective 2, the Contractor must support the growth and development of SMEs with strong growth potential in eastern Ukraine, while facilitating their access to markets in eastern Ukraine, the EU, and international markets. At the same time, the Contractor must improve the SME enabling environment, which includes improving the human capital development resources in the region, enhancing the competitiveness of the regional policy environment, and increasing SME access to finance in eastern Ukraine.

The Contractor must support entrepreneurs and SMEs in the region with a strong potential for growth after working with USAID to identify sectors of engagement-possibly value chains-based on the implementation principles outlined in C.5. The Contractor must take into account inclusive growth and the potential of new growth sectors, but also consider innovative approaches to activating the economic potential of the industrial infrastructure that is already in place.

The Contractor must also support smaller businesses, including those that benefited from assistance provided under Objective 1, or USAID’s humanitarian and transition assistance programs. Other recipients of assistance under Objective 2 must include businesses from elsewhere in Ukraine or the European Union and U.S. that seek to invest in eastern Ukraine or establish commercial relationships.

For older businesses in the region, ERA must help redirect operations to new products or services with growing markets locally, elsewhere in Ukraine and abroad.

The conflict has severed the GCAs from their traditional markets and further disruption is anticipated in light of the ongoing conflict. The Contractor must mitigate these impacts by facilitating economic connections between firms in eastern Ukraine and Western Ukraine. The Contractor must also seek out opportunities to increase eastern Ukrainian SMEs access to EU and international markets, though interventions related to international trade should be carefully coordinated with USAID’s CEP program.

Reforming and supporting human capital resources in the region must be a key part of achieving Objective 2. The Contractor must help workers in eastern Ukraine adapt old skills to new industries and develop new workers prepared for the industries that will drive the region’s future. The Contractor must work with local human capital institutions such as universities, trade schools, centers of excellence, co-working spaces, and other vocational schools to align their curricula to the needs of the region.

The ability of new and SME businesses to grow in the eastern Ukraine depends to a large degree on the quality of the local policy environment. The Contractor must work with local governments to identify new or improve existing policies that will make the region more competitive. When operational, work in this area must be coordinated closely with USAID’s CEP activity, which will develop a competitiveness survey and index for all principal municipalities in Ukraine and will use it annually to rank municipalities in order to encourage and assist them to improve their business climates. CEP will include Kramatorsk and Severodonetsk in the survey but may have limited resources to follow up in these regions.

As the Contractor works to support the creation and growth of SMEs by working with entrepreneurs and existing firms, inevitably there will be a need for finance. Under the current set of circumstances, however, access to debt or equity finance is tight given the riskiness of lending or investing in an active conflict zone. Under the final component of Objective 2, the Contractor must increase access to finance for entrepreneurs and SMEs in eastern Ukraine. In the immediate post-conflict environment, it is likely that a significant grants component will be needed to restart economic activity.