USAID_Egypt EconomyPlus RFP 72026324R00001.pdf

Request for Proposal (RFP) No.: 72026324R00001 Issuance Date: Wednesday, June 12, 2024 Due Date for Questions: Wednesday, June 26, 2024, 3:00 PM (Cairo Local Time) Closing Date for Submission of Proposals: Sunday, July 28, 2024, 3:00 PM (Cairo Local Time)

SUBJECT: Request for Proposal (RFP) No. 72026324R00001 - EconomyPlus activity

The United States Government, represented by the U.S. Agency for International Development’s Mission in Egypt (USAID/Egypt), is seeking proposals to provide services to implement the EconomyPlus activity as described in the attached Request for Proposals (RFP) and intends to award one Cost Plus Fixed Fee (CPFF) completion type contract, with a total estimated cost between $25 - $30 million, covering a potential period of performance of six (6) years (four base years and two one-year option period). Task orders will not be issued with the contract. The North American Industry Classification System (NAICS) code for this acquisition is 541690. The authorized geographic code is 937.

You are invited to submit a proposal in accordance with the requirements of the enclosed RFP.

This procurement will be conducted under full and open competition procedures, pursuant to Part 15 of the Federal Acquisition Regulation (FAR) (48 CFR Chapter 1). Proposals must be received by the Government no later than the local time on the due date stated above and in the RFP and be submitted consistent with the requirements in Section L.6. Proposals received after the closing date and time will be processed in accordance with FAR 15.208.

Prior to the submission of proposals, amendments to this solicitation will be made available through the Government homepage at http://www.SAM.gov. It is the offeror’s responsibility to check this site periodically for official updates and amendments to the solicitation. This solicitation in no way obligates USAID/Egypt to award a contract, nor does it commit USAID/Egypt to pay any cost incurred in the preparation and submission of a proposal in response hereto.

Furthermore, USAID/Egypt reserves the right to reject any and all offers, if such action is considered to be in the best interest of USAID/Egypt.

Offerors should read the entire solicitation, which includes all pertinent technical sections and the terms, conditions and instructions required for submitting a proposal. All questions regarding this solicitation must be submitted in writing via email only to Seham Gries at sgries@usaid.gov with a copy to Nehal Elkhatib at nelkhatib@usaid.gov by the date and time specified above. Oral instructions, answers or guidance from any USAID source prior to the award of the contract shall not be binding.

EconomyPlus - RFP #72026324R00001

We extend our best wishes to all for a successful competition, and certainly want to thank you for your interest in USAID/Egypt activities.

Sincerely, Matthew Courtad Contracting Officer

Table of Contents

SECTION A – SOLICITATION FORM 1

SECTION B – SUPPLIES OR SERVICES AND PRICE/COSTS 3

B.1 PURPOSE 3

B.2 CONTRACT TYPE 3

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

B.4 AWARD BUDGET 3

B.5 PAYMENT OF FIXED FEE 4

B.6 INDIRECT COSTS 4

B.7 COST REIMBURSABLE 5

B.8 MULTI-YEAR CONTRACT 5

SECTION C – STATEMENT OF WORK 6

C.1 TITLE OF ACTIVITY 6

C.2 OBJECTIVE 6

C.3 BACKGROUND 7

C.4 SERVICES AND TASKS REQUIRED 12

C.5 OPERATING CONSTRAINTS AND GUIDANCE 17

SECTION D – PACKAGING AND MARKING 23

D.1 AIDAR 752.7009 MARKING (JAN 1993) 23

D.2 BRANDING POLICY 23

D.3 BRANDING STRATEGY 24

D.4 EXCEPTIONS AND WAIVERS TO USAID BRANDING AND MARKING REQUIREMENTS 25

D.5 BRANDING AND MARKING FOR GRANTS UNDER CONTRACT 26

SECTION E – INSPECTION AND ACCEPTANCE 27

E.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE 27

E.2 INSPECTION AND ACCEPTANCE 27

E.3 PERFORMANCE STANDARDS 27

E.4 MONITORING, EVALUATION AND LEARNING 28

SECTION F – DELIVERIES/PERFORMANCE 34

F.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE 34

F.2 PERIOD OF PERFORMANCE 34

F.3 PLACE OF PERFORMANCE 35

F.4 AUTHORIZED WORK DAY/WEEK 35

F.5 KEY PERSONNEL 35

F.6 PERFORMANCE STANDARDS AND EVALUATION 36

F.7 DELIVERABLES AND SCHEDULE 36

F.8 REPORTING REQUIREMENTS 39

F.9 AIDAR 752.7005 SUBMISSION REQUIREMENTS FOR DEVELOPMENT EXPERIENCE DOCUMENTS. (SEP

2013) 44

F.10 SUBMISSION OF DATASETS TO THE DEVELOPMENT DATA LIBRARY (DDL) (OCT 2014) 45

F.11 ELECTRONIC SUBMISSION OF DOCUMENTS 47

SECTION G – CONTRACT ADMINISTRATION DATA 48

G.1 CONTRACTING OFFICER'S AUTHORITY 48

G.2 ADMINISTRATIVE CONTRACTING OFFICE 48

G.3 CONTRACTING OFFICER'S REPRESENTATIVE (COR) 48

G.4 CONTRACTOR’S PRIMARY POINT OF CONTACT 48

G.5 TECHNICAL DIRECTION AND RELATIONSHIP WITH USAID 48

G.6 INVOICES AND PAYMENT OFFICE 50

G.7 AIDAR 752.7003 DOCUMENTATION FOR PAYMENT (NOV 1998) 50

G.8 ACCOUNTING AND APPROPRIATION DATA 52

SECTION H – SPECIAL CONTRACT REQUIREMENTS 53

H.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE 53

H.2 AUTHORIZED GEOGRAPHIC CODE 53

H.3 LANGUAGE 53

H.4 LOGISTICS 53

H.5 INTERNATIONAL TRAVEL (AIDAR 752.7002 AND 752.7032) 53

H.6 PERSONNEL APPROVALS (AIDAR 752.7007 AND 752.7027) 54

H.7 ADS 302.3.5.5 SEXUAL MISCONDUCT (DEC 2020) 55

H.8 GRANTS UNDER CONTRACT 56

H.9 SUBCONTRACTING PLAN, INDIVIDUAL SUBCONTRACT REPORT (ISR) AND SUMMARY SUBCONTRACT

REPORT 57

H.10 CONSENT TO SUBCONTRACT 57

H.11 RESTRICTIONS AGAINST DISCLOSURE (MAY 2016) (DEVIATION NO. M-OAA-DEV-AIDAR-24-05c) 57

H.12 CLOUD COMPUTING (APRIL 2018) (DEVIATION NO. M-OAA-DEV-AIDAR-24-05C) 58

H.13 ENVIRONMENTAL COMPLIANCE 63

H.14 DISCLOSURE OF INFORMATION 64

H.15 COMPLIANCE WITH THE TRAFFICKING VICTIMS PROTECTION REAUTHORIZATION ACT (2017) 65

H.16 EXECUTIVE ORDER ON TERRORISM FINANCING (FEB 2002) 65

H.17 FOREIGN GOVERNMENT DELEGATIONS TO INTERNATIONAL CONFERENCES (JAN 2002) 65

H.18 INHERENTLY GOVERNMENTAL AND CLOSELY ASSOCIATED FUNCTIONS 65

H.19 FAR PART 4.21 PROHIBITION ON CONTRACTING FOR CERTAIN COVERED TELECOMMUNICATIONS AND

VIDEO SURVEILLANCE SERVICES OR EQUIPMENT (SECTION 889) (DECEMBER 2021) 66

SECTION I - CONTRACT CLAUSES 67

I.1 52.252-2 CLAUSES INCORPORATED BY REFERENCE. (FEB 1998) 67

I.2 52.203-19 PROHIBITION ON CONTRACTING WITH ENTITIES THAT REQUIRE CERTAIN INTERNAL

CONFIDENTIALITY AGREEMENTS (JAN 2017) 72

I.3 52.204-30 FEDERAL ACQUISITION SUPPLY CHAIN SECURITY ACT ORDERS —PROHIBITION (DEC 2023) 73

I.4 52.217-8 OPTION TO EXTEND SERVICES. (NOV 1999) 77

I.5 52.217-9 OPTION TO EXTEND THE TERM OF THE CONTRACT. (MAR 2000) 77

I.6 52.229-71 REPORTING OF FOREIGN TAXES. (JUL 2023) 78

I.7 52.229-8 TAXES – FOREIGN COST-REIMBURSEMENT CONTRACTS. (MAR 1990) 78

I.8 752.245-70 GOVERNMENT PROPERTY – USAID REPORTING REQUIREMENTS (OCT 2017) 79

SECTION J - LIST OF DOCUMENTS, EXHIBITS AND OTHER ATTACHMENTS 81

J.1 LIST OF ATTACHMENTS 81

SECTION K - REPRESENTATIONS, CERTIFICATIONS AND OTHER STATEMENTS OF OFFERORS 82

K.1 NOTICE LISTING SOLICITATION PROVISIONS INCORPORATED BY REFERENCE. 82

K.2 52.203-11 CERTIFICATION AND DISCLOSURE REGARDING PAYMENTS TO INFLUENCE CERTAIN FEDERAL

TRANSACTIONS. (SEP 2007) 82

K.3 52.204-3 TAXPAYER IDENTIFICATION. (OCT 1998) 82

K.4 52.204-8 ANNUAL REPRESENTATIONS AND CERTIFICATIONS. (FEB 2024) 84

K.5 52.204-17 OWNERSHIP OR CONTROL OF OFFEROR. (AUG 2020) 87

K.6 52.204-20 PREDECESSOR OF OFFEROR. (AUG 2020) 87

K.7 52.204-24 REPRESENTATION REGARDING CERTAIN TELECOMMUNICATIONS AND VIDEO SURVEILLANCE

SERVICES OR EQUIPMENT. (NOV 2021) 88

K.8 52.204-26 COVERD TELECOMMUNICATIONS EQUIPMENT OR SERVICES- REPRESENTATION. (OCT 2020) 91 K.9 52.204-29 FEDERAL ACQUISITION SUPPLY CHAIN SECURITY ACT ORDERS – REPRESENTATIONS AND

DISCLOSURES. (DEC 2023) 91

K.10 52.209-2 PROHIBITION ON CONTRACTING WITH INVERTED DOMESTIC CORPORATIONS—

REPRESENTATION. (NOV 2015) 92

K.11 52.209-5 CERTIFICATION REGARDING RESPONSIBILITY MATTERS. (AUG 2020) 93

K.12 52.209-7 INFORMATION REGARDING RESPONSIBILITY MATTERS. (OCT 2018) 95

K.13 52.209-11 REPRESENTATION BY CORPORATIONS REGARDING DELINQUENT TAX LIABILITY OR A FELONY

CRIMINAL CONVICTION. (FEB 2016) 96

K.14 52.209-12 CERTIFICATION REGARDING TAX MATTERS. (OCT 2020) 96

K.15 52.222-22 PREVIOUS CONTRACTS AND COMPLIANCE REPORTS. (FEB 1999) 97

K.16 52.222-25 ACTION COMPLIANCE. (APR 1984) 97

K.17 52.222-56 CERTIFICATION REGARDING TRAFFICKING IN PERSONS COMPLIANCE PLAN. (MAR 2015) 97

K.18 52.223-4 RECOVERED MATERIAL CERTIFICATION. (MAY 2008) 98

K.19 52.225-25 PROHIBITION ON CONTRACTING WITH ENTITIES ENGAGING IN CERTAIN ACTIVITIES OR

TRANSACTIONS RELATING TO IRAN-REPRESENTATION AND CERTIFICATIONS. (JUN 2020) 98

K.20 52.230-1 COST ACCOUNTING STANDARDS NOTICES AND CERTIFICATION. (JUN 2020) 99

K.21 52.230-7 PROPOSAL DISCLOSURE--COST ACCOUNTING PRACTICE CHANGES. (APR 2005) 101

K.22 INSURANCE - IMMUNITY FROM TORT LIABILITY. 101

K.23 AUTHORIZED NEGOTIATORS. 101

K.24 SIGNATURE. 102

SECTION L - INSTRUCTIONS TO OFFERORS INSTRUCTIONS, CONDITIONS, AND NOTICES TO OFFERORS 103

L.1 SOLICITATION PROVISIONS INCORPORATED BY REFERENCE 103

L.2 52.216-1 TYPE OF CONTRACT (APR 1984) 103

L.3 WAIVERS UNDER FAR PART 4.2101 PROHIBITION ON COVERED TELECOMMUNICATIONS AND VIDEO

SURVEILLANCE SERVICES AND EQUIPMENT (JUNE 2023) 103

L.4 52.233-2 SERVICE OF PROTEST (SEP 2006) 104

L.5 QUESTIONS AND CLARIFICATIONS 104

L.6 GENERAL INSTRUCTIONS TO OFFERORS 105

L.7 DELIVERY INSTRUCTIONS 105

L.8 INSTRUCTIONS FOR THE PREPARATION OF THE TECHNICAL PROPOSAL 107

L.9 INSTRUCTIONS FOR THE PREPARATION OF THE COST PROPOSAL 113

L.10 INSTRUCTIONS FOR THE PREPARATION OF BRANDING AND MARKING DOCUMENTS. 120

SECTION M - EVALUATION FACTORS FOR AWARD 123

M.1 GENERAL INFORMATION 123

M.2 TECHNICAL EVALUATION FACTORS 123

M.3 PRICE/COST PROPOSAL EVALUATION 126

M.4 EVALUATION OF OPTIONS (JULY 1990) 126

M.5 DETERMINATION OF AWARD 127

M.6 CONTRACTING WITH SMALL BUSINESS CONCERNS 127

72026324R00001

SOLICITATION, OFFER AND AWARD

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

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

ORDER UNDER DPAS (15 CFR 700)

6. REQUISITION/PURCHASE NUMBER

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

NEGOTIATED (RFP)

SEALED BID (IFB)

5. DATE ISSUED

1. THIS CONTRACT IS A RATED RATING PAGE OF PAGES

1 127

C. E-MAIL ADDRESS

EXT.NUMBERAREA CODE

B. TELEPHONE (NO COLLECT CALLS)A. NAME

10. FOR

INFORMATION

CALL:

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

(Date)(Hour) local timeuntildepository located in copies for furnishing the supplies or services in the Schedule will be received at the place specified in Item 8, or if hand carried, in the

SOLICITATION

9. Sealed offers in original and

PART IV - REPRESENTATIONS AND INSTRUCTIONS

OTHER STATEMENTS OF OFFERORS

EVALUATION FACTORS FOR AWARD

INSTRS., CONDS., AND NOTICES TO OFFERORS

REPRESENTATIONS, CERTIFICATIONS AND

LIST OF ATTACHMENTS

CONTRACT CLAUSES

PART III - LIST OF DOCUMENTS, EXHIBITS AND OTHER ATTACH.

I

J

K

L

M SPECIAL CONTRACT REQUIREMENTS

CONTRACT ADMINISTRATION DATA

DELIVERIES OR PERFORMANCE

INSPECTION AND ACCEPTANCE

PACKAGING AND MARKING

DESCRIPTION/SPECS./WORK STATEMENT

SUPPLIES OR SERVICES AND PRICES/COSTS

SOLICITATION/CONTRACT FORM

PART II - CONTRACT CLAUSESPART I - THE SCHEDULE

H

G

F

E

D

C

B

A

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

11. TABLE OF CONTENTS

18. OFFER DATE17. SIGNATURE

SUCH ADDRESS IN SCHEDULE.

IS DIFFERENT FROM ABOVE - ENTER

15C. CHECK IF REMITTANCE ADDRESS

EXT.NUMBERAREA CODE

15B. TELEPHONE NUMBER

(Type or print)AND

ADDRESS

OF

OFFEROR

CODE FACILITY

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

DATEAMENDMENT NO.DATEAMENDMENT NO.

and related documents numbered and dated):

amendments to the SOLICITATION for offerors

(The offeror acknowledges receipt of

14. ACKNOWLEDGEMENT OF AMENDMENTS

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

(See Section I, Clause No. 52.232.8)

13. DISCOUNT FOR PROMPT PAYMENT

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

by the offeror) from the date for receipt of offers specified above, to furnish any or all items upon which prices are offered at the price set opposite each item, delivered at the

NOTE: Item 12 does not apply if the solicitation includes the provisions at 52.214-16, Minimum Bid Acceptance Period.

OFFER (Must be fully completed by offeror)

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

28. AWARD DATE

(Signature of Contracting Officer)

27. UNITED STATES OF AMERICA

25. PAYMENT WILL BE MADE BY

26. NAME OF CONTRACTING OFFICER (Type or print)

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

ITEM

(4 copies unless otherwise specified)

23. SUBMIT INVOICES TO ADDRESS SHOWN IN

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

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

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

AWARD (To be completed by government)

CODE

REQ-263-24-000038

X

720263

USAID/Egypt 1A Ahmed Kamel St.

Off El Laselki St.

New Maadi, 11435, Egypt 11435

1400 B 07/28/2024

Seham Gries sgries@usaid.gov

X

X

X

X

X

X

X

X

X

X

X

X

X

PAGE(S)

Matthew Courtad

AUTHORIZED FOR LOCAL REPRODUCTION

Previous edition is unusable

STANDARD FORM 33 (Rev. 9-97)

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

1-2 3-5

6-22 23-26 27-33 34-47 48-52 53-66

67-80

82-102

103-122

123-127

12. In compliance with the above, the undersigned agrees, if this offer is accepted within _____0_________ calendar days (60 calendar days unless a different period is inserted

ITEM NO. SUPPLIES/SERVICES QUANTITY UNIT UNIT PRICE AMOUNT

NAME OF OFFEROR OR CONTRACTOR

2 127

CONTINUATION SHEET

REFERENCE NO. OF DOCUMENT BEING CONTINUED PAGE OF

72026324R00001

(A) (B) (C) (D) (E) (F)

0001 EconomyPlus activity

OPTIONAL FORM 336 (4-86)

Sponsored by GSA

FAR (48 CFR) 53.110

NSN 7540-01-152-8067

SECTION B – SUPPLIES OR SERVICES AND PRICE/COSTS

B.1 PURPOSE

The purpose of this contract is to provide technical assistance and other services as outlined in the Objectives specified in the Statement of Work (SOW) under Section C for the implementation of the EconomyPlus activity.

B.2 CONTRACT TYPE

This is a Cost-Plus-Fixed-Fee (CPFF) Completion type contract. For the consideration set forth below, the Contractor must achieve the performance objectives and must furnish supplies, facilities, services, deliverables and perform all activities necessary for, or incidental to, the performance of work described in Section C.

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

(a) The estimated cost for the performance of the work required hereunder, exclusive of fee is [$$ To Be Determined]. The fixed-fee is [$$ TBD]. The total estimated cost plus fixed-fee is [$$ TBD].

(b) Within the estimated cost plus fixed-fee (if any) specified in paragraph (a) above, the amount currently obligated and available for reimbursement of allowable costs incurred by the Contractor (and payment of fee, if any) for performance hereunder is (TBD at the time of award). The Contractor must not exceed the aforesaid obligated amount in accordance with Federal Acquisition Regulation (FAR) 52.232-22, “Limitation of Funds.”

(c) Funds obligated hereunder are anticipated to be sufficient through (TBD at the time of award).

*NOTE: The actual amount to be obligated will be determined at the time of award.

B.4 AWARD BUDGET

The total costs for the budget categories are specified below. No amounts in excess of the amounts specified for each activity shall be billed against the Contract.

Item Description Base Period (4 years)

Option 1 (1 year)

Option 2 (1 year)

Personnel $___________ $___________ $___________

Fringe Benefits/Allowances $___________ $___________ $___________

Travel $___________ $___________ $___________

Equipment & Supplies $___________ $___________ $___________

Contractual $___________ $___________ $___________

Miscellaneous Direct Costs $___________ $___________ $___________

Total Direct Costs $___________ $___________ $___________

Grants Under Contracts $800,000.00 $200,000.00 $200,000.00

Indirect Costs $___________ $___________ $___________ Total Estimated Cost $___________ $___________ $___________

Fixed Fee $___________ $___________ $___________

Total Estimated Cost with Fixed Fee $___________ $___________ $___________

The Contractor is not allowed to exceed any Contract Line Item nor is authorized to shift funding between Contract Line Items without prior written approval of the Contracting Officer. The fee is fixed according to the Price/Cost Schedule and the terms of this Contract.

USAID/Egypt will not allow the Contractor to earn fees on the portion of the budget set aside for Grants Under Contracts (GUCs). Contractors may calculate direct and indirect costs based on the administration of GUCs and fees related to those costs.

B.5 PAYMENT OF FIXED FEE

$TBD is the maximum fixed-fee to be paid in accordance with Section B.4. Subject to FAR 52.216- 8 “Fixed-Fee”, the Contractor will be paid the proportion of the fixed-fee that corresponds to the proportion of allowable direct costs incurred by the Contractor during the period covered by the invoice, provided that the Contracting Officer withholds a reserve not to exceed 15 percent of the total fixed-fee, or $TBD, whichever is less, to protect the Government’s interest.

If the Contracting Officer determines that this fixed fee payment method results in paying a disproportionately higher ratio of fixed-fee than the percentage of work that the Contractor has completed, then the Contracting Officer may suspend further payment of any fixed fee until the Contractor has made sufficient progress to justify further payment. Subject to the Contracting Officer’s discretion, if the Contractor subsequently completes the delayed work such that costs incurred are proportionate to work completed, the Contracting Officer may approve payment of the amount of the fee that was suspended.

B.6 INDIRECT COSTS

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

Description* Period** Rate Base***

* Description or type of rate indicated as a percentage, e.g., G&A ** Period, e.g., CY 2009 *** Base, e.g., Direct Labor for Labor Overhead

[RATES WILL BE INSERTED AT THE TIME OF AWARD]

B.7 COST REIMBURSABLE

The 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, and 52.232-20 and 52-232-22 Limitations of Cost and Limitations of Funds, if applicable, and AIDAR 752.7003, Documentation for Payment.

B.8 MULTI-YEAR CONTRACT

The Contract is considered non-severable and is therefore a multi-year contract as defined in FAR

17.103. Therefore, this RFP is subject to the requirements of FAR 17.106. However, this is a CPFF 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 canceled in accordance with FAR 52.217-2. The cancellation ceiling for each cancellation date is $0 and there is no requirement to include cancellation dates in the contract.

[END OF SECTION B]

SECTION C – STATEMENT OF WORK

C.1 TITLE OF ACTIVITY

The title of this activity is – EconomyPlus.

C.2 OBJECTIVE

The objective of this Activity is to improve the resilience of Egypt's economy by assisting concerned Government of Egypt (GOE) institutions to address selected macroeconomic challenges. The International Monetary Fund defines macroeconomic resilience as the ability of countries to withstand shocks (instantaneous resilience) and recover quickly towards potential growth (dynamic resilience). The more resilience to existential threats, including climate change, is integrated into Egypt’s macroeconomic framework, the more stable and stronger Egypt’s economy will become.

To achieve this objective, the Contract will provide technical services to relevant counterparts/stakeholders related to three main economic components: fiscal and monetary systems; external sector policies; and regulatory and structural economic policies.

As a result of this assistance, the Activity expects to achieve the following:

● Improved fiscal and monetary policies to better manage economic fluctuations and support price stability;

● Strengthened external policy framework to reduce balance of payment deficit shortages in selected accounts; and

● Improved regulatory and structural economic policies to foster broad base private sector-led development and attain sustainable economic growth.

The Contract will focus on supporting the GOE with its economic strategies, tools, and systems to improve its economic resilience and stability through improved capacities of concerned GOE authorities to adopt and implement business friendly and evidence-based policies. A key area is assisting the GOE to apply good governance principles (accountability, transparency, and efficiency) in macroeconomic decisions. Adaptation to and mitigation of climate change is a priority area across the three components for this contract.

The technical services under this Contract will address the imbalances in the economy that are negatively impacting the ability of enterprises to grow and become more competitive. The contract will ensure, through various tools and interventions, that the recommended reforms meet the needs of a private sector led economy.

Theory of Change

IF the technical assistance provided builds the GOE capacity to issue and adopt effective macroeconomic fiscal and monetary policies, improve the external sector policy framework to yield more foreign exchange resources, and improve the regulatory and structural economic policies to encourage a private sector-led economy, THEN an improved resilient macroeconomic structure will be in place that can absorb external shocks and hence stabilize the economy.

C.3 BACKGROUND

This Section sets forth background information related to: a. CDCS; b. the TIPE agreement; c. the Problem Statement; and d. USAID’s Current and Prior Activities.

C.3.a USAID/Country Development Cooperation Strategy (CDCS)

This five-year USAID/CDCS takes a long-term “foundational” approach toward rebuilding and redefining the development partnership with the GOE and is expected to establish the pre-requisite conditions for success of this strategy as well as a follow-on five-year CDCS (2026- 2031). This CDCS fully aligns with the development priorities of the GOE under Egypt’s SDS Vision 2030 strategy. Thus, a notional ten-year time horizon allows USAID to support the necessary building blocks that will result in the development impacts and Sustainable Development Goals (SDGs) Egypt strives to accomplish over the next decade.

During this five-year CDCS, USAID expects to strengthen and support the Commitment and Capacity of the GOE to deepen key structural reforms as well as to increase the opportunities for inclusion of civil society, academia, the private sector, and citizens in the economy. This is Egypt’s first CDCS. USAID has made strategic choices to inform both our approach and programming to support the Goal of “A More Inclusive and Globally Competitive Economy for the Benefit of all Egyptians.”

This activity contributes to the Development Objective (DO 3) “inclusive Economic Development Accelerated”.

C.3.b USAID/Egypt’s Trade and Investment Promotion in Egypt (TIPE) Bilateral Agreement

One of USAID/Egypt’s main development objectives is to promote inclusive economic growth.

USAID and the GOE have a defined partnership in this area through the TIPE bilateral assistance agreement, through which the EconomyPlus activity will be funded. The purpose of TIPE agreement is “to promote inclusive economic growth and improve the competitiveness of the private sector in Egypt through the development of MSMEs, entrepreneurship, and workforce skills.” It is expected to create new jobs and generate additional income for Egyptian small business owners, laborers, and entrepreneurs, especially women and youth. TIPE has three sub-purposes: (1) MSME Development and Entrepreneurship Supported; (2) Technical Education and Vocational Training and Workforce Development Improved; and (3) Macroeconomic foundations for growth improved. This activity falls under Sub-purpose 3.

C.3.c Problem Statement

Egypt is currently facing severe economic and macroeconomic challenges across multiple areas (i.e., fiscal and monetary policies, the external sector, and the real sector, as defined in section C.4.b.1), resulting in high inflation, ongoing pressure on its currency, and leading to mounting questions about the long-term sustainability of its public-debt-fueled economic growth model.

Additionally, climate change is exacerbating existing challenges and placing new financial and non-financial demands on the GOE. For these and other reasons, USAID/Egypt estimates that Egypt has lower macroeconomic resilience than many other economies in the Middle East and North Africa region.

Egypt’s macroeconomic framework determinants: Over the past several years, COVID-19, Russia’s ongoing war in Ukraine, and rising global interest rates revealed Egypt’s continued vulnerability to external economic shocks. These external stressors, combined with long-standing domestic issues, have placed Egypt in an increasingly difficult economic position as reflected in the deterioration of many of its macroeconomic indicators.

The following bullets highlight the main factors pertaining to the macroeconomic situation.

● Level of Debt:

o Debt from both external and internal sources, has been used to respond to economic shocks and fund social and economic objectives. As a result, mounting debt and increased debt service costs from higher interest rates are now reducing space for the GOE and private sector firms alike to fund additional investment.

o Persistent cycles of budget deficits contribute directly to the public debt and often play a large role in Egypt’s exchange rate volatility. Egypt’s historically low domestic resource mobilization and accompanying budget deficits allow very little space for fiscal stimulus when external shocks hit.

o Increased public spending on infrastructure and other investments across sectors has fueled national debt and crowded out private investment.

o Together, the high spending and low tax revenues allow very little space to support the needs of a growing population, address new policy priorities such as climate change, or provide fiscal stimulus when external shocks hit.

● Monetary Policies:

o Egypt’s interest rate policy primarily focuses on attracting foreign portfolio investments and incentivizing lending to the government through public bond sales while penalizing those seeking to make investments in private ventures.

Moreover, recent increases in interest rates place additional stress on an already overstretched government budget due to increasing interest payments over time.

o Global political and financial market developments have triggered large-scale portfolio outflows and Egypt’s total foreign currency buffers—including Tier 1 (“official reserve assets”) and Tier 2 (“other foreign currency assets”)— dropped abruptly from US$54.5 billion at end-February 2022 to US$42.1 billion at end- March 2022. They continued to decline during 2022 but have since partially recovered, reaching US$34.8 billion at end-June 2023.

o The spike in annual headline urban inflation, which reached 21.3 percent year-on-year in December 2022, and the exchange rate depreciations since March 2022, have led to a significant rise in the cost of domestic and imported inputs in the short term.

o Shortages of foreign currency and limited capabilities of the GOE to attract more foreign currency and diversify the sources, whether from FDI, free zones, diaspora make it difficult to stabilize the economy.

● GOE Capacities:

o Of particular concern for monetary and fiscal systems in Egypt is the continuous need for capacity building programs to compensate for high turnover in the Government Ministries. Macro-fiscal ministries and agencies struggle to offer salaries and benefits that are in line with other opportunities that mid-career and late-career professionals can obtain. Finding and testing creative ways to attract and retain talent within the GOE, as well as ways to automate and improve functions that are underutilized, are thus critical considerations.

● Climate Change:

o The GOE is seeking avenues to address climate change through its monetary-fiscal frameworks and national planning efforts. The challenges related to climate change are varied and across the whole GOE. Lack of resources, an inadequate regulatory framework, and poor coordination among the GOE agencies are key challenges for the implementation of its National Climate Change Strategy 2050, which advocates for delivering climate solutions in partnership with the private sector. To do so, the GOE will need to introduce innovative and diversified ways to finance climate adaptation and mitigation efforts while also funding existing priorities.

● Structural Economic Imbalances:

o State-owned enterprises receive preferential treatment thereby limiting opportunities for private sector firms to grow. Adding, the complex, unpredictable, and ambiguous policy environment have led to the deterioration of the private sector performance, especially the small and medium enterprises that constitute almost 80% of the economy.

● The Recent Regional Events:

o The recent regional events in the Middle East and its unforeseen social and economic impacts on the Egyptian economy.

These factors demonstrate how close linkages among fiscal, monetary, structural, and external sector policies have aggravated the economic problems. In Egypt, like elsewhere, these linkages are complex and involve numerous government agencies and affiliated authorities as well as a wide range of private sector associations and firms.

Notably, the GOE has undertaken several important steps to improve its macroeconomic stability in recent years. In 2016, the GOE launched its ambitious “Egypt Vision 2030” national strategy to modernize the country, achieve its United Nation Sustainable Development Goals, and tackle internal and external challenges. Subsequently, the government successfully completed a reform program supported by the International Monetary Fund’s Extended Fund Facility in 2016-2019.

Under this program, the GOE substantially reduced its fiscal deficit while maintaining critical social spending to reduce poverty. More recently, in December 2022, the GOE signed a new Extended Fund Facility with the IMF to shift to a flexible exchange rate regime, maintain fiscal discipline, and advance structural reforms to promote private sector growth and investment. Up till early 2024, the Egyptian authorities were still in discussions with the IMF about the fulfillment of the program and the request for additional tranche.

As for climate change, in 2022, the GOE launched “Climate Change Strategy 2050.” The strategy is designed to integrate the various climate change dimensions into general planning of all sectors in the country. The strategy contains five key goals and sets directions to achieve each objective.

In addition, the GOE implemented governance reforms and undertook other concrete actions, such as issuing new “green” financial instruments and offering climate incentives to support targeted business activities.

With respect to the external sector, the GOE launched several initiatives and measures to increase sources of foreign exchange like the golden license for investors and several dollar-denominated banking products to attract more foreign currency into the economy. The Cabinet also launched the “let us think” initiative to provide additional solutions for increasing foreign exchange revenues in Egypt. This initiative presented around 40 papers from academia detailing innovative ideas on how to attract foreign currency.

Despite this progress and ongoing donor support on key reform areas, important gaps in Egypt's macroeconomic framework must still be addressed. Therefore, the GOE must develop and implement policies and practices to improve the country’s macroeconomic resilience, including on climate change issues, as the foundation for sustainable economic growth going forward.

C.3.d USAID Current and Prior Activities

Relevant prior and current USAID/Egypt Activities are discussed below.

Macro-Economic Stabilization and Reform (MESR): At the request of the GOE, the MESR activity supports Egypt’s ongoing economic reform by strengthening public financial management and public investment planning. In partnership with the Ministry of Finance, USAID provides training and capacity building to improve fiscal management, budgeting, and expenditure control, as well as to promote greater budget efficiency, transparency, and accountability. In partnership with the Ministry of Planning and Economic Development, USAID works to improve public investment planning, management, implementation, and monitoring to enhance the productivity of public capital assets and the efficiency and effectiveness of public services. The activity started in April 2018 and ends April 2024. The total estimated cost is $22.7 million.

USAID’s Economic Governance Activity (EGA): The EGA supports GOE reforms to increase the efficiency, transparency, and accountability of public institutions and the civil service. Through the EGA, USAID partners with both the public and private sector to combat corruption, develop a more competitive economy, and create an enabling environment for public and private investment. USAID also supports the GOE’s digitalization plan to introduce advanced information technology applications in public service delivery systems. The activity started in August 2020 and is ending in August 2025. The total estimated cost is $40 million.

USAID’s Trade Reform and Development in Egypt (TRADE): The TRADE activity builds on decades of U.S. investments in Egyptian businesses and economic policy with the aim of substantially increasing Egyptian exports from small and medium enterprises. The TRADE activity focuses on six selected sectors: engineering products, food processing, home textiles, ready-made garments, chemicals, and building materials. Through the activity, USAID works with the GOE to improve the trade and investment policy environment and reduce barriers to trade. USAID also partners with business associations and export councils to strengthen the trade services ecosystem for small-and medium-sized exporters, as well as with private companies to help them access new international markets to increase export sales. The TRADE activity tackles many trade and investment-related issues to sustainably increase Egyptian exports and drive economic growth.

The activity started in April 2021 and ends in March 2026. The total estimated cost is $36.3 million.

Commercial Law Development Program (CLDP): For more than 40 years, USAID has worked in partnership with the Egyptian people and government to promote economic prosperity and create an environment that facilitates better trade relations between the United States and Egypt. Currently, through a grant to the U.S. Department of Commerce’s Commercial Law Development Program, USAID provides legal and trade related technical assistance to the GOE and Egyptian private sector. This program provides support in the areas of food safety, trade facilitation, customs valuation, trade engagement, and intellectual property rights. It aims at improving Egypt’s ability to meet the commitments of multilateral agreements in areas such as patent protection, government procurement, and competition policy. The activity started in September 2018 and ends in September 2023. The total estimated cost is $3.97 million.

Business Egypt: USAID’s Business Egypt project supports economic growth in Egypt through a multifaceted and holistic approach. First, Business Egypt supports entrepreneurs to launch and grow competitive, innovative, and revenue-generating businesses by strengthening the entrepreneurship ecosystem. Second, the project assists existing micro-, small-, and medium-sized enterprises (MSMEs) to adapt and grow through linkages to financing, investing, and sustainable buyer-driven value chains. Lastly, Business Egypt furthers the business enabling environment at the governorate and national levels by addressing MSME challenges in sector-specific value chains and strengthening connections to large anchor firms to ensure sustainability and growth. Business Egypt operates in the following sectors: Renewable Energy/Green Economy, Information and Communications Technology, Logistics, and Creative Industries, with additional sectors to be selected in the coming years. Gender, youth, private sector engagement, and digitalization are at the heart of Business Egypt’s work in each sector. The project started in November 2021 and ends in November 2026. The total estimated cost is $34.9 million.

Women’s Economic and Social Empowerment Program (WESEP): The WESEP is designed to engage, leverage, and partner with the private sector as well as public social service initiatives to encourage women’s participation in the workforce; generate demand for financial services;

promote tailored, market-based solutions to women’s economic empowerment; and strengthen Gender-Based Violence (GBV) prevention and response such that women become more economically and socially resilient. The program interventions are designed to support women in priority governorates feeling safe, valued, and empowered at work; aware and able to embrace financial autonomy; and respected and free from violence in their homes, communities, and workplaces. The Program works closely with market-based partners to develop, lead, scale, sustain, and champion innovative solutions, recognizing the economic and social benefits of gender-inclusive, empowering policies and practices. The project started in 2022 and ends in 2027. The total estimated cost is $39,000,000.

C.4 SERVICES AND TASKS REQUIRED

The Contractor must provide the services and deliverables specified below. Services and deliverables shall be provided to achieve the objective set forth above, subject to the guidance and limitations specified herein. Specific services, activities, and deliverables required will be established in the annual work plans approved by the Contracting Officer’s Representative (COR) and, when necessary, through modifications to work plans specified in writing by the COR. Such technical direction must be consistent with all the terms and conditions of the Contract and the determinations of the Contracting Officer.

Accomplishment of the objective of this Contract will require the Contractor to both supply: a.

management and administrative services; and b. technical services. More related guidance on these services is detailed in Sections F and G.

C.4.a Management and Administrative Services

The Contractor must provide all general management and administrative support necessary to perform the Contract. The services authorized include:

● Expatriate, Egyptian, home office support personnel and administrative services. This may include long-term and short-term personnel.

● The Contractor shall procure or lease necessary facilities, supplies, and services as necessary to perform the contract.

● The Contractor shall provide the planning necessary for performance of the contract as well as the necessary oversight, quality control, and general technical support of all services and deliverables provided pursuant to the contract.

C.4.b Technical Services

The objective of this Activity is to assist the Egyptian GOE to improve the resilience of the economy and macroeconomic framework. Generally, the Contractor is expected to support and build the capacities of target groups to formulate, implement, and enforce public policies that will engender a more competitive private sector led economy. The Contractor will also improve the GOE’s legislative processes and procedures to be more responsive to businesses and enhance public private dialogue.

C.4.b.1 Technical Services Focus Areas

The economic determinants are diverse and complex, and their mandates fall under several GOE key counterparts. Thus, this Activity is designed to be demand-driven, based on the GOE commitment and capacities, in support of USAID development objectives as they pertain to economic growth. Climate change issues are cross cutting among the three components and the contractor should consider climate interventions whenever applicable to the ultimate results of each component. The following are the focus areas of technical assistance (TA) that the contractor should work on:

i) Monetary and Fiscal Frameworks: This includes the key strategies, policies, and tools that can be used to influence economic activity and help stabilize the economy in a time of crisis or stimulate growth and the green economy. Illustrative TA areas include but are not limited to:

fiscal and monetary space, the new Unified Fiscal Law, risk management, green procurement, government budgeting and spending, debt management, risk mitigation, debt swap, tax administration, green GDP, or other relevant proposed areas. The main counterparts for this component are: The Ministry of Finance, The Ministry of Planning and Economic Development, and the Central Bank.

ii) External Sector: This includes strategies, policies, and tools that can be used by the GOE to improve external operations and transactions between residents of the country (private and public sector) and the rest of the world with the aim to reduce the balance of payment deficit and diversify sources of foreign exchange. Illustrative TA areas include but are not limited to: foreign direct investment, trade in services, diaspora engagement, trade and investment zones, and other relevant areas proposed. The main counterparts for this component are: The Central Bank, The Ministry of Planning and Economic Development, The Ministry of Finance, General Authority for Investment and Free Zones (GAFI), and the Ministry of Trade and Industry.

iii) Regulatory and Structural Policies: These are strategies, policies, and tools that can be used by the GOE to incentivize private businesses, across high priority sectors, to expand their operations and hence sustain economic growth and create more revenue and employment opportunities. Illustrative TA areas include but are not limited to: economic zones; industrial policy; digitalization; capital markets (including public and private markets); public-private dialogue; and issues affecting private sector growth. This focus area could tackle relevant transformational policy reforms that align with USAID’s sectoral focus areas, depending on GOE requests and USAID’s objectives.

Because of the nature, complexity, interlinkages, changing economic circumstances, and the dynamism of the various elements related to the macroeconomic framework, the exact counterparts, collaboration approaches with other implementing partners and donors, specific interventions, types of technical assistance and expected sub-results and related input, output, and outcome indicators must be proposed by the contractor upon the contract’s award (workplan). This will allow for better focused TA that caters to the actual needs of the GOE at the time of implementation.

Assisting the government to institutionalize appropriate tools, strategies, and policies to improve its macroeconomic resilience is the key objective of this activity. The Contractor is required to consider, to the maximum extent possible, the international best practices and the available evidence-based solutions in the design and implementation phases of any intervention.

C.4.b.2 Activity Components

By the end of the Activity, the Contractor is expected to attain the following three results:

● Improved fiscal and monetary policies to better manage economic fluctuations and support price stability;

● Strengthened external policy framework to reduce balance of payment deficit shortages in selected accounts; and

● Improved regulatory and structural economic policies to foster broad base private sector-led development and attain sustainable economic growth.

This will be achieved through, but not limited to:

(i) Technical assistance, capacity building, and training to relevant stakeholders and counterparts;

(ii) Procurement of key software and equipment that will help to achieve the Activity’s objectives;

(iii) Establishing PPD among counterparts and stakeholders; and

(iv) Grant funds for private sector partners, NGOs, or blended finance initiatives.

The contractor should proactively engage stakeholders to initiate and drive progress on interventions under the activity. In close collaboration with the USAID/Egypt COR, the contractor must engage stakeholders to introduce this activity and build relationships that will serve as a foundation for activity support and collaboration. These meetings will provide an opportunity for early assessment of the current policy framework, national priorities and the existing technical assistance needs. It will also help to identify existing TA gaps relevant to the activity’s objectives and gauge the capacity and commitment of the GOE to undertake reforms, namely:

● Partner institutions and local stakeholders. The activity team must initiate contact with stakeholders within the GOE to introduce the project and familiarize the partners with activity objectives and seek TA realistic needs that fulfill the commitment and capacity pre-condition.

● Other donors and donor-funded projects. Working closely with USAID, the Contractor must begin coordination with other donors—including the IMF and the IFC, World Bank, and the European Union—to establish lines of communication, gain feedback on institutional champions and obstacles, and ensure activities align with the current state of donor support.

● USAID. The contractor must discuss policy reform areas that will need technical assistance and contribute to the overall objective of the contract.

● Private sector, academic institutions, think tanks, research institutions. The Contractor must reach out to national private sector associations, including those representing female entrepreneurs, to identify opportunities for public-private dialogue, connecting also with universities and think tanks to assess their interest and capacity to support analytical and training activities.

Based on these engagements, the Contractor will formulate a realistic comprehensive approach for achieving the three results considering the relevant international best practices successfully applied in countries with similar development contexts. Under each component, the Contractor must come up with focus areas, attributed interventions, relevant GOE partners, expected outcomes for each intervention, and relevant indicators for USAID approval.

Working with the counterparts on the institutionalization of policies and the following of good governance principles are key factors to achieve the contract objectives. For each expected result, the contractor is requested to suggest at least one outcome indicator. (Guidance about the indicators is detailed in Section E).

The contractor must present the different priority reform areas with evidence about its realism in context of the GOE reform plan, resources availability (human and financial, if necessary), and commitment and political will.

The following subsections will set forth the minimum tasks per component and the requirements for the Contractor.

C.4.b.2.i Component 1: Improved fiscal and monetary policies to better manage economic fluctuations and support price stability

Component 1 will improve the ability of the GOE to effectively pursue evidenced based policies and achieve sustainable development objectives through its borrowing and spending activities.

Many challenges to achieving this overarching goal exist, such as food and energy shocks, climate change, pandemics, and regional conflicts. Well-designed and implemented strategies, policies, and analytical tools will help the GOE mitigate the impacts of adverse economic events and recover more quickly in their aftermath, thereby demonstrating improved economic governance.

Under this Component, technical assistance and training will build the GOE’s capacity to regulate economic activity through monetary and fiscal policies to increase economic stability and growth.

The contractor should propose areas related to fiscal and monetary policies where opportunities exist to partner with the GOE to achieve its goals and advance sustainable development objectives, including climate change objectives. The contractor must consider and build on successful initiatives, if they need additional resources, under the previous MESR activity and integrate all lessons learned included in MESR final evaluation report.

The following are the minimum services required under Component 1, (additional requirements will be specified in the annual work plans required under Section F.8.b):

● Support the GOE to enhance its Public Financial Management systems and processes related to budget planning and execution to increase fiscal space and allocative and operational efficiencies.

● Support the GOE to expand its access to sustainable funding sources by developing new, or expanding the use of existing, financing tools and instruments such as green bonds and Islamic Sukuk.

● Support the GOE to integrate and address climate change in its fiscal and monetary policies through areas such as green budgeting, carbon credits, and sustainable public procurements.

● Support the GOE to improve data quality (i.e., accuracy, completeness, reliability, relevance, and timeliness) and data analysis-including climate change data- and to integrate data and information across monetary and fiscal policy making units to improve policy coordination.

C.4.b.2.ii Component 2: Strengthened external policy framework to reduce balance of payment deficit shortages in selected accounts

Component 2 will…