West Africa Trade And Investment Hub J And A.pdf

JUSTIFICATION AND APPROVAL (J&A)

TO: Yves Kore, Director, Office Acquisition and Assistance, USAID/Nigeria

FROM: Colin Dreizin, Director, Office of Economic Growth and Environment

DATE: August 7, 2020

RE: Ceiling Increase to West Africa Trade and Investment Hub (Award #:

72062019C00003)

SUBJECT: Justification for Other than Full and Open Competition under the Expedited

Procedures Package (EPP) for Responding to Outbreaks of Contagious Infectious Diseases

We request approval of this justification for use of other than full and open competition pursuant to the authorities under the EPP for Responding to Outbreaks of Contagious Infectious Diseases (the “Expedited Procedures Package”), approved on March 24, 2020. Your approval of this J&A constitutes the justification for other than full and open competition as required by Tab 1 (Determination and Findings (D&F) Authorization for the Use of Other than Full-and-Open Competition in the Award or Modification of Contracts) of the EPP.

a. Nature and/or description of the action being approved.

The total estimated cost of the West Africa Trade and Investment Hub (“the Trade Hub”) is currently $90,268,756 inclusive of a $60,000,000 grant under contract facility to structure catalytic matching-grants directly to the private sector. This is a request to approve a ceiling increase of $50,000,000, bringing the total contract ceiling to $140,268,756 and the grant under contract line item to $97,000,000. This ceiling increase is urgently needed to allow for a rapid scaling of grants to the private-sector across the West Africa region in light of the immediate, significant, and expanding financial distress currently experienced by companies in the region as one of the most urgent secondary economic impacts of COVID-19.

b. A description of the supplies or services required to meet USAID’s needs (including the estimated value).

The severity of the COVID-19 crisis on West Africa cannot be overstated. Economic growth initially projected at more than 4% for the region in 2020, is now anticipated to contract by 2-4% with devastating implications for social welfare. The projected economic outlook for Sub-Saharan Africa has sharply deteriorated from initial estimates made by the International Monetary Fund (IMF) in April 2020. As noted by the IMF on June 29th, 2020, “the risks we highlighted in April all continue to be a concern, but the deterioration of the global outlook has been particularly striking. In line with this new outlook, and consistent with local high-frequency indicators, output in sub-Saharan Africa is now projected to shrink by 3.2 percent this year, more than double the contraction we had outlined in April. Again, this is set to be the worst outcome [economic contraction] on record.”

The increased ceiling will be deployed to structure and manage approximately 50 additional performance-based grants directly to the private sector focused on retaining access to financing, and retaining jobs in response to COVID-19. These grants will support companies to manage disruptions from COVID-19 including maintaining their employees during a period of financial distress, adjusting to the closure of retail markets and/or declining demand in final markets, partial closures of their facilities, disrupted and more expensive logistics resulting from airport and border closures, and difficulty in obtaining commercial financing. Grants will also be structured with financial institutions to de-risk and expand the working capital available to companies in the region, many of which are now struggling with short-term cash flow challenges given significant reductions in revenues and continuing costs associated with rent, salaries, and debt-service. Grants will also be used to rapidly scale-up companies engaged in supporting the COVID-19 response effort, including firms engaged in the local production of personal protective equipment, consistent with USAID policy.

c. Identification of statutory authority permitting other than full and open competition.

AIDAR 706.302-70(b)(3) and 40 U.S.C. §113; See the “Expedited Procedures Package for Responding to Outbreaks of Contagious Infectious Diseases” approved March 24, 2020. The D&F is attached to this file in Tab 1. The EPP can only be used for an Infectious Disease Outbreak, as defined in paragraph 2 of the D&F. The COVID-19 outbreak was declared a Public Health Emergency of International Concern by the World Health Organization (WHO) on January 30, 2020 and therefore the class D&F applies to COVID-19 emergency response activities.

The use of the authority granted by the approved Expedited Procedures Package is appropriate for ensuring a rapid and immediate response to mitigate the secondary economic impacts of COVID-

19. The Expedited Procedures Package approval memo noted that “the flexibility provided by this EPP would allow them (Missions) to respond rapidly to infectious-disease outbreaks in a multisectoral way, including through programs outside of the health sector, such as in education and economic growth.” The D&F similarly identified that “authorization of the use of other than full-and-open competition is necessary, given the urgent need for USAID to mobilize technical, financial, and other resources rapidly to minimize the impact on the health of populations and economic in countries that often have limited capacity to respond quickly to save lives during an Outbreak of a Contagious Infectious Disease.” Furthermore, the D&F noted that “allowing for such rapid procurements would allow the Agency to take advantage of the speed with which the private sector can move through market-based systems to address both the direct and secondary development impacts of an Outbreak of a Contagious Infectious Disease.

This proposed action responds directly and immediately to the secondary impacts of COVID-19 on economic growth and economies in West Africa while utilizing a rapid approach to engage the private sector in advancing market-based mitigation approaches.

d. A discussion of the proposed contractor’s unique qualifications or the nature of the acquisition that requires use of the authority cited.

The services provided through the West Africa Trade and Investment Hub are highly specialized in that it is the only known program based in West Africa with an established and rapid grant-making capability to directly provide financing to the private-sector at scale to urgently mitigate the most severe secondary economic impacts of the COVID-19 pandemic. The contractor has established offices in Nigeria, Senegal and Cote d’Ivoire with bilingual (English/French) staff; an approved grants manual and grant-making process; and has published several competitive solicitations in English and French with corresponding concept notes for review which can be awarded as grants.

Specifically, the project issued a COVID-19 response request for applications (RFA) in May 2020.

More than 140 companies submitted applications as of July 15th, 2020 with grant concept requests exceeding $80 million. Mitigating the most dire economic impacts of COVID-19 requires action to be taken quickly which cannot be done through procurement of new mechanisms. It is not possible for another contractor to mobilize and award grants without significant delays due to the absence of presence in the region, staff, relationships with the private-sector, and an active pipeline of partnership opportunities. The incumbent contractor, Creative Associates, is the only company that can realistically execute by awarding a significant number of grants to the private-sector across the West Africa region.

Alternatively, the other available option is to pursue a full-and-open competitive award which will take a minimum of 268 days to award. Companies in the West Africa region are not in a financial position to survive until USAID establishes alternate mechanisms. Companies are faced with real-time decisions on whether to lay-off staff, close offices, and postpone investments. As referenced in the Determination and Findings (D&F) Authorization for the Use of Other than Full-and-Open Competition in the Award or Modification of Contracts) of the EPP, responding quickly is essential for working with potential private-sector partners with which USAID could scale solutions rapidly and will allow the Agency to take advantage of the speed with which the private sector can move through market-based systems to address the secondary development impacts of an Outbreak of a Contagious Infectious Disease.

Based on this information, the time to design, compete and award a follow-on requirement will take too long to ensure an effective response to the secondary economic impacts posed by COVID-

19. This ceiling increase will allow the West Africa Trade and Investment Hub to issue the first COVID-19 mitigation grants prior to September 30, 2020 with all grants anticipated to be awarded and disbursing prior to September 30, 2021. There are no other known USAID mechanisms with the capability to rapidly execute this number of grants to the private sector to sustain jobs and livelihoods during this crisis.

e. A description of efforts made to ensure that offers are solicited from as many potential sources as is practicable.

Publication of a notice is not required per AIDAR §705.202(b). Accordingly, the Contracting Officer did not post any notice to increase the TEC and consequently no sources expressed any written interest in the acquisition.

f. A determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable.

The Contracting Officer will evaluate the contractor’s proposed cost against the government’s independent cost estimate and historical costs to determine cost and price reasonableness prior to making the award.

g. A description of the market research conducted (see FAR Part 10) and the results or a statement of the reason(s) market research was not conducted.

Initial market research was conducted for this activity in December 2018 that resulted in the award of the current contract. Additional market research was conducted more recently in the development of the continental trade activity which included the release of an RFI in January 2020 that received 11 responses from industry. While in active design and procurement planning, the new mechanism for services similar to the West Africa Trade and Invest Hub will not be awarded before September 2021 adhering to full and open competition requirements. Given the urgency of this requirement in response to the COVID-19 crisis, it is not feasible to select another contractor with the capability to rapidly stand-up and implement a similar activity to provide direct financial support to a large number of companies across the region.

h. A listing of the sources, if any, that expressed, in writing, an interest in the acquisition.

Publication of a notice is not required per the determination at AIDAR §705.202(b) and no sources submitted a written expression of interest in this acquisition. However, the USAID Nigeria Mission utilized information obtained via the Agency’s RFI for the continental trade activity that included services similar to services provided under the West Africa Trade and Investment Hub.

While the RFI demonstrated that there are companies interested in performing similar work, a new project cannot be mobilized in time to be responsive during the critical period of the next 3-6 months. The immediate, significant, and expanding financial distress currently experienced by companies in the region is one of the most urgent secondary economic impacts of COVID-19. As highlighted above, it is not feasible for a new contractor to respond in a timely manner to the economic impacts of COVID-19. The current contractor is in the best position to provide the services.

i. A statement of the actions, if any, USAID may take to remove or overcome any barriers to competition before any subsequent acquisition of the supplies or services required.

No barriers to entry are foreseen. USAID is in the planning phase of a continental trade activity for services similar to those currently being provided and inclusive of the geographical area currently being serviced under the West Africa Trade and Investment Hub. This acquisition will be competed utilizing full and open competition. Category Management solution, with Best-in- Class vehicle, and new partner initiative for local partners will be afforded opportunities to submit proposals.

RECOMMENDATION

It is recommended that you approve this justification for use of other than full and open competition pursuant to the “Expedited Procedures Package for Responding to Outbreaks of Contagious Infectious Diseases”, approved on March 24, 2020. Your approval of this J&A constitutes the justification for other than full and open competition as required by Tab 1 (D&F for the Authorization of Less than Full and Open Competitive Procedures in the Modification or Award of Contracts) of the EPP.

CERTIFICATION:

The requirement for technical certification at FAR 6.303-1(c) is fulfilled through:

a. The signature of the Technical Officer below certifying the specific supporting data for this J&A; and

b. The D&F Authorization for the Use of Other than Full-and-Open Competition in the Award or Modification of Contracts under the Expedited Procedures Package for Responding to Outbreaks of Contagious Infectious Diseases” approved on March 24, 2020. (attached in Tab 1).

The Contracting Officer is the Approving Official based on the authority given under the EPP.

However, a separate Contracting Officer certification is not required per AIDAR 706.302-70(c)(1).

Technical Officer:

I hereby certify that the supporting data which form a basis for the justification are complete and accurate to the best of my knowledge and belief.

Technical Officer, Cory O’Hara Date

August 7, 2020

APPROVAL:

Contracting Officer, Yves Kore Date:

August,07,2020

CLEARANCE FOR WEST AFRICA TRADE AND INVESTMENT HUB J&A:

RLO, Jonathan Cone Date: