Workforce Egypt _ Final.pdf

Request for Proposal (RFP) No.: 72026320R00008 Date Issued: July 10, 2020 Deadline for Questions: August 03, 2020, 11:00am (Eastern Standard Time) Closing Date: September 08, 2020, 2020, 3:00pm (Cairo Local Time)

SUBJECT: Request for Proposals (RFP) No.: 72026320R00008

Workforce Egypt

The United States Government, represented by the U.S. Agency for International Development (USAID)/Egypt, is seeking proposals to provide services to implement the Workforce Egypt Activity as described in the attached Request for Proposals (RFP). Subject to the availability of funds, USAID/Egypt anticipates awarding a Cost-Plus-Fixed-Fee completion-type contract as a result of this solicitation, covering an estimated period of five (5) years. The North American Industry Classification System (NAICS) code for this activity is 541690. The authorized geographic code is 937.

All interested and qualified organizations are invited to submit a proposal in accordance with the requirements of the enclosed RFP No. 72026320R00008. 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 time and the date stated above and in the RFP and be submitted consistent with the requirements in Section L.6.a. 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 https://beta.sam.gov. It is the responsibility of the recipient of this solicitation document to ensure that it has been received from the internet in its entirety;

USAID bears no responsibility for data errors from transmission or conversion processes. It is the offeror’s responsibility to check this site periodically for official updates and amendments to the solicitation. Issuance of this solicitation does not obligate USAID/Egypt to award a contract, nor does it commit USAID/Egypt to pay for costs incurred in the preparation and submission of a proposal. Furthermore, USAID/Egypt reserves the right to reject any and all offers, if such action is considered to be in the best interest of the U.S. Government.

Offerors should read the entire solicitation, which includes all pertinent technical sections and the terms, conditions and instructions required for submitting a proposal. By email only, please submit all questions regarding this RFP no later than the date and time listed above to Mr.

Benjamin Lawrence at blawrence@usaid.gov with a copy to Ms. Mona Beshai at mbeshai@usaid.gov. Oral instructions or explanations given before the award of the contract resulting from this solicitation will not be binding. Answers to all offerors’ questions will be provided in writing.

https://beta.sam.gov/ mailto:blawrence@usaid.gov mailto:mbeshai@usaid.gov

RFP # 72026320R00008

Workforce Egypt Activity

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, Martin R. Fischer Contracting Officer

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

UNDER DPAS (15 CFR 700)

RATING PAGE OF PAGE

(S)

N/A 1 130

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

72026320R00008 ☐ SEALED BID (IFB)

☒ NEGOTIATED (RFP)

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

USAID/ Egypt blawrence@usaid.gov mbeshai@usaid.gov

NOTE: In sealed bid solicitations “offer” and “Offeror” mean “bid” and “bidder”

SOLICITATION

9. Proposals are due electronically to the address shown in section L CAUTION LATE Submissions, Modifications, and Withdrawals: See section L. All offers are subject to all terms and conditions contained in this solicitation.

10. A. NAME B. TELEPHONE NO. (NO COLLECT

CALLS)

C. E-MAIL ADDRESS

FOR

INFORMATI

ON

CALL:

See attached cover letter Intl CODE NUMBER EXT. blawrence@usaid.gov mbeshai@usaid.gov

11. TABLE OF CONTENTS

(x) SEC DESCRIPTION PAGE(S) (x) SEC. DESCRIPTION PAGE(S)

PART I - THE SCHEDULE PART II - CONTRACT CLAUSES

x A SOLICITATION/CONTRACT FORM 3-4 x I CONTRACT CLAUSES 72-85 x B SUPPLIES OR SERVICES AND PRICE/COST 5-8 PART III - LIST OF DOCUMENTS, EXHIBITS AND OTHER ATTACH.

x C DESCRIPTION/SPECS. /WORK STATEMENT 9-28 x J LIST OF ATTACHMENTS 86 x D PACKAGING AND MARKING 29-31 PART IV - REPRESENTATIONS AND INSTRUCTIONS x E INSPECTION AND ACCEPTANCE 32-35 x K REPRESENTATIONS, CERTIFICATIONS AND

OTHER STATEMENTS OF OFFERORS

87-102 x F DELIVERIES OR PERFORMANCE 36-50 x G CONTRACT ADMINISTRATION DATA 51-55 x L INSTRS., CONDS., AND NOTICES TO OFFERORS 103-124 x H SPECIAL CONTRACT REQUIREMENTS 56-71 x M EVALUATION FACTORS FOR AWARD 125-130

OFFER (Must be fully completed by Offeror)

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

mailto:blawrence@usaid.gov mailto:mbeshai@usaid.gov mailto:blawrence@usaid.gov mailto:mbeshai@usaid.gov

12. In compliance with the above, the undersigned agrees, if this offer is accepted within _____ calendar days (60 calendar days unless a different period is inserted by the Offeror) from the date for receipt of offers specified above, to furnish any or all items upon which prices are offered at the price set opposite each item, delivered at the designated point(s), within the time specified in the schedule.

13. DISCOUNT FOR PROMPT PAYMENT

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

14. ACKNOWLEDGMENT OF AMENDMENTS

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

AMENDMENT NO. DATE AMENDMENT NO. DATE

15A. NAME AND

ADDRESS

OF

OFFEROR

CODE FACILITY 16. NAME AND TITLE OF PERSON AUTHORIZED TO SIGN OFFER (Type or print)

15B. TELEPHONE NUMBER ☐ 15C. CHECK IF REMITTANCE

ADDRESS

IS DIFFERENT FROM ABOVE –

ENTER

SUCH ADDRESS IN SCHEDULE.

17. SIGNATURE 18. OFFER DATE

AREA

CODE

NUMBER EXT.

AWARD (To be completed by Government)

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

All

22. AUTHORITY FOR USING OTHER THAN FULL AND OPEN COMPETITION: 23. SUBMIT INVOICES TO ADDRESS SHOWN IN ITEM

☐ 10 U.S.C. 2304(c) ( ) ☐ 41 U.S.C. 253(c) ( ) (4 copies unless otherwise specified)

24. ADMINISTERED BY (If other than Item 7)

CODE 25. PAYMENT WILL BE MADE BY CODE

Same as Item 7 Office of Financial Management

USAID Egypt

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

DATE

/s/ Martin Fischer Contracting Officer

(Signature of Contracting Officer)

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

AUTHORIZED FOR LOCAL REPRODUCTION

Previous edition not usable.

33-133 STANDARD FORM 33 (Rev. 9-97)

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

SECTION B - SUPPLIES OR SERVICES/PRICES

B.1 PURPOSE

The purpose of this project is to transform the technical education and vocational training (TVET) system to produce the skills needed for a globally competitive Egyptian market, thereby creating sustainable jobs, especially for the youth and females, and institutionalizing structural labor market reforms that can support workforce development now and in the future.

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 provide the deliverables as described in Sections C and F and otherwise comply with all contract requirements.

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: $______. The fixed-fee is $ _. The estimated cost-plus fixed-fee is $______.

(b) Within the estimated cost plus fixed-fee (if any) specified in paragraph (a) above, the amount currently obligated and available for reimbursement of allowable costs incurred by the Contractor (and payment of fee, if any) for performance hereunder is $TBD. The Contractor must not exceed the aforesaid obligated amount in accordance with Federal Acquisition Regulation (“FAR”) 52.232.22, “Limitation of Funds.” [NOTE: The actual amount to be obligated will be determined at the time of award.]

(c) Funds obligated hereunder are anticipated to be sufficient through {TBD based on the date of award}.

B.4 BUDGET

The Contract contains only one line item, but the following budget for that one line item is provided. The total cost stated for the budget categories specified below may not be adjusted without a modification to the Contract signed by the Contracting Officer. No amounts in excess of the amounts specified for each budget category can be billed to the Contract.

Item Total

Direct Cost $__________

Indirect Cost $__________

Total Cost $__________

B.5 PAYMENT OF FIXED FEE

Payment of the fixed fee will be made as follows. The Contractor’s fixed fee is tied to the accomplishment of performance objectives and deliverables or outputs described in Sections C, D and F that are specified in Table 1 below, subject to inspection and acceptance by USAID/Egypt as specified in section E, and otherwise in compliance with the terms of the contract and in accordance with work planning approved by USAID/Egypt. The contractor will be paid the amount of fee specified for each denoted performance objective, deliverable or output set forth in the table below upon acceptance by the Contracting Officer’s Representative (COR). Because the clause entitled “Allowable Cost and Payment” (FAR 52.216-8) is incorporated into the RFP and applicable to this order, the terms and conditions of this clause apply after total payments of fixed fee reach eighty‐five percent (85%) of the total fixed fee.

Table 1 – Fixed Fee Payment Schedule [Amount of fee to be filled by offerors and results to be filled in by offerors where indicated below and consistent with instructions in Section L.12.a.2]

# Deliverable Reference1 Amount

1 Final MEL Plan E.3, F.7.b $______

2 First Annual Work Plan C.5, F.7.c $______

3 Fifth Quarterly Program Report F.7.d $______

4 Sustainability Plan C.4.c, F.7.j $______

5 15,000 graduates of the Workforce Egypt supported schools receive employment or become self-employed and 10,000 students receive internships

C.5.b.i.B $______

6 Four Model Technical/Applied Technology Schools are supported by Workforce Egypt and are operating according to international standards

C.5.b.i.B $______

7 Skills of at least 500 current workers/ supervisors are upgraded through continuous learning.

C.5.b.ii.B $______

8 One new EPC is operational and is actively engaged in addressing labor market inefficiencies in their governorates

C.5.b.iii.B $______

9 30,000 (cumulative) graduates of the Workforce Egypt supported schools receive employment or become self-employed and 20,000 (cumulative) students receive internships

C.5.b.i.B

1 All deliverables must meet all of the requirements in the referenced section and be approved by the COR before payment will be made.

# Deliverable Reference Amount

10 Fourteenth Quarterly Program Report F.7.d $______

11 Closeout Plan F.7.l $______

12 50,000 (cumulative) graduates of the Workforce Egypt supported schools receive employment or become self-employed and 30,000 (cumulative) students receive internships

C.5.b.i.B $______

13 Eight (cumulative) Model Technical/Applied Technology Schools are supported by Workforce Egypt and are operating according to international standards

C.5.b.i.B $______

14 At least 7 new market- based specializations are introduced, tested and operational in technical schools, four of which pertain to the revamped commercial track

C.5.b.i.B $______

15 Skills of at least 1,000 (cumulative) current workers/ supervisors are upgraded through continuous learning.

C.5.b.ii.B $______

16 At least three Sector Skills Councils are supported and are fully operational

C.5.b.ii.B $______

17 Two new EPCs are operational and are actively engaged in addressing labor market inefficiencies in their governorates

C.5.b.iii.B $______

18 All contract requirements met CO Determination

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 REIMBURSEMENT

Allowable costs will be limited to reasonable, allocable and necessary costs determined in accordance with FAR 52.216-7, Allowable Cost and Payment (JUN 2013), FAR 52.216-8 (JUN 2011), Fixed Fee, if applicable, and AIDAR 752.7003 (NOV 1998), 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 cancelled 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 AND INTRODUCTION

The title of the activity is Workforce Egypt.

C.2 OBJECTIVE

Workforce Egypt’s primary objective is to transform the technical education and vocational training (TVET) system to produce the skills needed for a globally competitive Egyptian market, thereby creating sustainable jobs, especially for the youth and females, and institutionalizing structural labor market reforms that can support workforce development now and in the future.

Evidence that these objectives have been achieved will be reflected in the following outcomes:

1. At least 50,000 TVET graduates employed in medium to high skill jobs;

2. Workers’ turnover is reduced in at least 30 companies by at least 10%;

3. Higher female labor market participation rates in the sectors covered by

Workforce Egypt;

4. Sustainable private sector engagement in the TVET system; and

5. Firms are utilizing modern human resource strategies to retrain and retain employees.

C.3 BACKGROUND

This Section sets forth background information relating to: a. USAID/Egypt’s Trade and Investment promotion in Egypt (TIPE) Project; b. Problem Statement; c. Prior USAID Activities;

d. Other Relevant USAID Activities; and e. Other Donor Assistance Programs.

C.3.a USAID/Egypt’s TIPE Project

Workforce Egypt will be part of USAID/Egypt’s TIPE Project. USAID/Egypt began the TIPE Project to achieve the development objective: “Rapid, Inclusive, and Sustainable Economic Growth” through Micro, Small, and Medium-sized Enterprise (MSME) growth. The purpose of TIPE 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.”

TIPE is expected to create new jobs and generate additional income for Egyptian small business owners, laborers, and entrepreneurs, especially women and youths. Here, youths are individuals aged between 15 and 29 years.

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.” Workforce Egypt contributes to sub-purpose (2).

C.3.b Problem Statement

The GOE is committed to undertaking far-reaching reforms to grow the economy for the benefit of all Egyptians. In 2016, the GOE embarked on a comprehensive reform program supported by a $12 billion fund facility from the International Monetary Fund (IMF). To date, successful implementation of the reform agenda has reduced the fiscal deficit, attracted more foreign direct and portfolio investment, and increased tourism receipts and merchandise exports. However, greater efforts are needed to upgrade labor skills and encourage enterprise formation, growth, and competitiveness -- to create jobs and ensure all share in Egypt’s prosperity. The World Economic Forum (WEF) highlights Egypt’s challenges: WEF’s 2018 Inclusive Development Index ranked Egypt very low (70th of 77 emerging economies) due to a highly unequal distribution of wealth, high public debt, and high unemployment rates among youths and the more educated graduates. As a result, improving labor’s skills, productivity and employability is critical to improving economically competitive and inclusive growth.

Egypt has a young and growing population that needs jobs. There are over 2.3 million unemployed Egyptians, of whom nearly 67% are youths and nearly 800,000 more Egyptians enter the workforce each year. Many do not find jobs, become discouraged and leave the labor market, unable to make a living. The female labor force participation rate has grown modestly in the last 20 years but remains particularly low at 23 percent; with women representing around 75% of the 2.3 million unemployed. The structure and level of Egypt’s unemployment combines with its rapid population growth to present significant challenges to the nation’s stability and security.

The unemployment problem relates to a lack of private sector competitiveness, which limits inclusive, private sector-led growth. This lack of competitiveness has two interrelated causes: 1) insufficient business investment in productivity-enhancing technologies; and 2) a mismatch between the skills of the unemployed, especially youths, and the needs of modern/formal businesses. The 2019 Global Talent Competitiveness Index ranked Egypt 96th of 125 countries while the relevance of the education system to the economy is even lower at 120th of 125.

Analysis of the unemployed labor force reveals imbalances and disparities with respect to gender, age, and educational attainment. Since the 1970s, unemployment in Egypt has been increasingly concentrated among youths, particularly among 15- to 24-year-olds, whose unemployment rate reached 34.4% in 2017.

Unemployment and low job quality affect youths, females, and technical secondary school graduates more severely than others. Improving the technical capacity of these segments of the labor force and enhancing their ability to meet the needs of private sector employers is one of the main challenges for Egypt’s labor market. A skilled labor force will improve private sector performance, enhancing both growth and development -- critical concerns to sustain GOE commitment to difficult reforms.

There are currently 1.9 million students in the technical secondary education system under the Ministry of Education and Technical Education (MOETE), studying in one of four major specializations: industrial track, agricultural track, commercial track, and the tourism track. The following table describes the composition and distribution of the 2500 technical schools and the

1.9 million students in the technical education sector, by track. Of these schools, only 104 schools are five-year schools while the rest are three-year schools. While most technical education graduates face difficulties finding jobs, graduates from the commercial track, most of whom are females, are the most disadvantaged as the curricula they are taught are obsolete and totally detached from the market needs.

Industrial Commercial Agricultural Tourism

Number of Schools 1,321 835 244 117

Percent from the total 52% 33% 10% 5%

Number of students 900,000 700,000 210,000 60,000

Percent from the total 48% 37% 11% 3%

International donors have worked with the GOE to improve technical secondary education and strengthen its ties to the private sector. Projects targeting TVET reform, economic development, and labor market efficiency have been implemented by USAID through the Workforce Improvement and Skills Enhancement (WISE) project, the European Union, the International Labor Organization (ILO), the World Bank, the German International Cooperation Agency (GIZ), Global Affairs Canada, and other donor agencies. Current donor activities are summarized under C.3.3.

TVET institutions lack capacity yet are committed to improve the following shortcomings:

● The GOE rarely coordinates with the private sector to identify and deliver those TVET system reforms that will enable students to graduate with the market-driven technical and job-readiness skills that private sector companies need.

● Fragmented TVET governance systems mean many players with differing policies and objectives complicate the oversight and coordination of TVET institutions and programs.

● Without a functioning labor market information system, TVET institutions lack the contextual understanding of demographic and market trends to train students to meet current needs.

● Without a TVET quality assurance system (e.g., national qualifications framework, skills standards, accreditation, certification, assessments), TVET training lacks coherence, structure, transparency, and consistency and produces TVET graduates of variable quality which undermines the utility, reputation, and social perception of the TVET system.

● Shortages of qualified and certified TVET trainers (e.g., instructors, teachers, master trainers, assessors, verifiers, curriculum developers) amplifies the lack of private sector engagement and, in turn, compromises the effective performance of TVET systems.

● Inadequate infrastructure in most schools, especially workshops, tools and equipment, constrains student ability to gain current, practical skills.

● Lack of focus on innovation and student-centered education.

● Beyond technical skills, firms need more effective human resource skills and strategies to improve productivity, on-the-job training, and reduce worker turnover.

● Regulatory reforms are required to improve labor market efficiency, including female participation, labor and factor mobility, and productivity

To address most of these problems, the MOETE recently developed a new comprehensive strategy for TVET reform (TE 2.0) and requested the assistance of the different development partners to implement this strategy.

The MOETE TE 2.0 strategy is based on five pillars, namely:

● Establishing a transformed and high quality technical education system,

● Upgrading teachers’ skills,

● Adopting the competency-based curricula for all specializations, and revamping the current outdated commercial education (which cover 33% of technical education students, the majority of which are females),

● Establishing a number of Modern Technical Schools based on private sector engagement and international standards and serving as hubs for other schools in their vicinity, and

● Changing the social perception of TVET.

To support the first two pillars, Egypt’s President approved the establishment of two new institutions: the Egyptian Technical Quality Assurance and Accreditation Network (ETQAAN) and the Technical & Vocational Education Teachers Academy (TVETA). The MOETE has also decided to establish a Center for the Enhancement of Quality Assurance in Technical Education (CIQAT) to spearhead the reform process and assist schools in obtaining the accreditation from ETQAAN once it becomes operational.

As for the labor market, current economic conditions and poor market dynamics impede productivity gains and employment for youths. In this regard, the Economic Freedom Index, intended to measure hiring and firing regulations and minimum wage; centralized collective bargaining; hours regulations; mandated cost of worker dismissal; and conscription, ranks Egypt 147 out of 162 countries. The WEF’s 2018 Global Competitiveness Report, on the other hand, ranked Egypt 130th of 140 countries in labor market efficiency Egypt ranks particularly low in female participation in the labor force (130th of 140), quality of vocational training (136th of 140), erase of finding skilled workers (109th of 140), active labor policies (103rd of 140), reliance on professional management (82nd of 140). And hiring and firing practices (51st of 140). Deficiencies in these areas erode employee productivity and reduce private sector competitiveness.

C.3.c Prior USAID Activities

Relevant prior USAID/Egypt Activities are discussed below.

C.3.c.1 The Workforce Improvement and Skills Enhancement (WISE) project (November 2015-October 2020):

The WISE project aims at achieving the following:

• Improving technical secondary education and labor skills to meet the needs of the market through improving curricula, training teachers, and linking with the private sector;

• Promoting innovation and quality assurance at technical schools;

• Establishing partnerships between businesses and technical schools in order to understand skills needed for employment, create a pool of qualified candidates, and link students with jobs through career centers and employment fairs;

• Improving the performance of the private sector though enhanced labor productivity gained via in-house training and improved human resource strategies that reduce turnover; and

• Building the capacity of business associations to advocate for policy and regulatory reforms related to workforce development and labor market efficiency.

The successful interventions carried out by USAID/Egypt’s Workforce Improvement and Skills Enhancement (WISE) activity that were instrumental in the design of the MOETE’s technical Education 2.0 strategy, include: 1) the introduction of competency-based education to the TVET system; 2) the establishment of School Transition to Employment Units, which provide teacher training, career guidance and entrepreneurship education to students, and employment and internship services to students and graduates; 3) the development of labor information reports identifying the current and future skills needed by the private sector in the 11 governorates covered by WISE; and 4) the identification of constraints affecting labor market efficiency.

To date, WISE main achievements include establishing and building the capacity of 60 School Units for Transition to Employment (SUTEs) and 11 Local Units for Transition to Employment, training 1,000 teachers and school leaders, providing entrepreneurship training to 19,742 students and career guidance and counseling sessions 48,961 students. Moreover, around 13,000 students were linked to private sector firms through in-company internships while 22,500 graduates received employment. In collaboration with the MOETE, WISE introduced competency-based education to the technical education system through development of new market-driven Logistics and New and Renewable Energy curricula programs. The logistics program was successfully piloted in two schools and has been expanded to a third school in 2017/18. The new and renewable energy program has been piloted in three schools in 2017/18 and has been expanded to two other schools in 2019/20 with WISE assistance. WISE partnered with over 100 private sector companies to introduce and implement Ebdaa Rehletak program (a program that prepares and links job seekers to companies), productivity improvement strategies and improve company human resources systems and strategies for employee recruitment, retraining, and retention (3R). To address labor market inefficiencies, WISE conducted a labor market study, identifying constraints affecting labor market efficiency and recommending solutions. Based on the stakeholders’ analysis in the study, WISE established an Enabling Environment Advisory Group (EEAG) at the Egyptian National Competitiveness Council to advocate for reforms that improve labor market efficiency. In addition, and in collaboration with the Ministry of Local Development, WISE established an Economic Partnership Council (EPC) in Beni-Sweif to institutionalize labor market reforms at the regional level.

C.3.c.2 Egypt’s Competitiveness project (ECP) 2010-2014:

ECP worked to improve labor skills and productivity by bridging labor/business skill gaps and promoting entrepreneurship. The “Skills to Market” component of ECP was dedicated to improving the quality of technical education in the secondary schools to increase productivity and employability of beneficiaries. The component worked closely with the Ministry of Education Technical Education Sector to ensure that the education that the students continue to receive will lead to improved employment prospects, either in sustainable jobs or self-employment. Twenty-five School-Based Training Units (SBTUs) and twenty-five School-Based Employment Units (SBEUs) were established in governorates of Beni Suef, Port Said, Sharkia, Alexandria, Fayoum, Luxor, Aswan and Hurghada. Instructors were trained to offer professional development cascade training to prospective instructors in the schools and to liaise with private industries to identify on-the-job training/apprenticeship opportunities. A total of more than 14,000 secondary technical school instructors and school staff have been trained in best-practice instructional methodology.

The Recruit-Retrain-Retain (3R) pilot project was a successful activity introduced by USAID/ECP to address challenges of skill shortage and high workers turnover in 12 small and medium size companies in the RMG and the food processing sector, by enhancing the abilities of industrial enterprises to attract, retrain, and retain a qualified and stable workforce. The new strategies adopted by the firms allowed them to reduce labor turnover significantly.

On the job training that was provided to selected firms in the Ready Made Garments industry also produced positive results as it contributed to an increase in labor productivity estimated at 20%-25%.

C.3.c.3 The Grants Innovation and Technology Transfer Center (GITTC) at Alexandria University, October 2011 to October 2013:

The major activities under this grant focused on training and employing graduates in the food processing sectors as well as providing on the job training for existing workers in the food processing firms. In addition, the project established innovation clubs inside selected technical schools throughout many governorates to instill the culture of innovation and assist potential student innovators to develop their ideas. The project provided inventors with technical support to develop and enhance their prototype, as well as forge linkages with potential investors. The best inventors/innovators received prizes and were supported to develop their business plans and obtain finance to implement their new projects.

C.3.d Other Relevant Current/Future USAID Activities

The following USAID activities are also relevant.

● The TRADE activity (to start during the summer of 2020) is building the capacity of SMEs to adopt trade-oriented business models to compete successfully in the international market, developing the capacity of trade-support institutions to provide effective and efficient trade development services to SMEs, and upgrading the capacity of the GOE to implement improved trade-promoting policies, regulations, and institutions.

● Macroeconomic Stabilization and Reform (MESR) activity (April 2018-April 2023) will complement the WFE Activity, as this project seeks to assist the Ministry of Finance and other GOE counterparts with providing a competitive and stable macroeconomic environment.

● Business Egypt activity (under design) which plans to: i) assist new and growing SMEs by supporting dynamic and innovative firms and startups through business incubators and accelerators and by delivering firm-level services through Business Development Service (BDS) centers; ii) build value chain linkages between anchor firms (buyers) and SMEs (suppliers) to trigger job creation through increasing business investment; and iii) enhance the business enabling environment for SME growth by focusing on the known constraints in tax policy, the regulatory environment, and access to finance as well as actively searching for and then addressing other prohibitive constraints for small businesses.

C.3.e Other Donor Assistance Programs

Workforce Egypt will meet an important technical assistance need. Whenever possible, the Contractor will collaborate with other development partners to ensure complementarity of the activities and avoid any potential duplication of efforts. This will include coordination with:

● European Union (EU): “TVET Egypt” is a program co-financed by the GOE and the EU until 2023. The program aims at improving the structure and the performance of the TVET system, to better respond to Egypt’s rapidly changing socio-economic needs, with focus on youth employability and national competitiveness. TVET Egypt has three components: (1) Improving the Governance of the Egyptian TVET System, (2) Enhancing the Relevance and Quality of TVET, and (3) Supporting the Transition to Employment.

● German Aid (GIZ): “Employment Promotion Program”: The program aims at developing a quality management system for technical secondary schools, facilitating a national policy dialogue on youth employment promotion, and providing labor market information through the establishment of Regional Labor Market Observatories. Other activities are career guidance, entrepreneurship education and placement services for students and graduates of technical education. In addition, GIZ is planning for a future ten-year program starting next year focusing on quality assurance and accreditation, teachers training, support for dual education, and the establishment of a number of sector specific centers of excellence. These centers will provide technical secondary education as well as an additional two years of study for a technical college education. The first two centers will be for the energy sector for which the EU is providing 13 million Euros as blended funding.

C.4 OPERATING CONSTRAINTS AND GUIDANCE

The following operational guidance is provided that will be critical for the successful and sustainable implementation of this Activity and must be applied to all services and deliverables specified in the Contract. These constraints and guidance relate to: a. Private Sector Engagement; b. Collaboration, Learning and Adapting; c. Journey to Self Reliance; d. Gender Integration; e. Target Population and Geographical Areas; and f. Impact on US Jobs.

C.4.a Private Sector Engagement

The Workforce Egypt Activity seeks full alignment with USAID’s Private Sector Engagement policy released on December 12, 2018. USAID/Egypt acknowledges that today, the private sector is playing an unprecedented role in creating and shaping opportunities that improve the lives of the people and communities that USAID supports particularly in Egypt where a robust and competitive private sector is so critical to accelerating inclusive Economic Growth. In this regard, the Mission conducted a round table discussion with a variety of private sector firms to ensure that their perspective is imbedded in the design of Workforce Egypt. The Mission seeks to increase collaboration with the private sector to support Egypt’s Journey to Self-Reliance through the Workforce Egypt Activity in part through a better skilled workforce and a more competitive private sector. To capitalize fully on this opportunity and reach the goal of ending Egypt’s need for assistance, the active engagement of the private sector in the design and implementation of TVET reforms under Workforce Egypt will be an integral and inseparable component of success. Activities must focus on reducing the current skills mismatch, ensuring that the skills produced by the transformed technical education system meet the current and future needs of the market, and improving employability especially among the youth and females.

C.4.b Collaborating, Learning, and Adapting

USAID/Egypt will promote Collaborating, Learning, and Adapting (CLA) among stakeholders during implementation. CLA objectives include:

● Generate Knowledge. The Contractor must generate new knowledge and evidence around learning questions identified together with USAID and other stakeholders, as well as questions that emerge during implementation. In filling these knowledge and evidence gaps, the Contractor must provide reporting, data, analysis, and gather partners for inclusive reviews of the activity goals and results.

● Share Knowledge. The Contractor must increase knowledge sharing with stakeholders, local organizations, Government of Egypt, sectoral experts, donors, regional and international organizations, and others to encourage more widespread learning across teams, mechanisms, and sectors. The Contractor must work together within a learning network to share information with implementing partners of other USAID activities, such as local stakeholders and other development partners. The Contractor must convene forums to share knowledge and also use existing forums within Egypt.

● Incorporate Agile and Adaptive Processes. The Contractor must develop adaptive management and implementation processes and must include an adaptive management plan within the annual work plans to allow course corrections to respond to unintended effects, changing/emerging realities, and priorities. Together with USAID, the Contractor’s activity work plan, quarterly reports, and periodic progress review meetings must provide a forum for an adaptive approach to change course based on lessons learned and the evolving country context. The Contractor must prioritize activities together with the COR during work planning and review the prioritization during the quarterly reporting period. If circumstances arise, the Contractor may and should alter activity designs with approval from the COR to accommodate the window of opportunity, as long as the reprogramming (i) falls within the scope of work of this Contract, and (ii) does not hold the USG to incurring additional costs, in each case unless otherwise directed by the

CO.

C.4.c Journey to Self-Reliance and Sustainability

Workforce Egypt’s strategy should advance the Agency's goal of helping Egypt to progress toward self-reliance as measured by performance indicators that include youth unemployment rate, ease of finding skilled employees, quality of vocational training, hiring and firing practices, and labor-force participation rate. The success of the proposed activity demands a genuine partnership between the private and government sectors. To build this partnership, Workforce Egypt will assist the GOE’s efforts to expand work with private firms and concurrently stimulate the private-sector’s commitment to work with the GOE.

To ensure sustainability of the interventions, the Contractor must seek to address the challenges and constraints in the labor market by addressing the key binding constraints to improved labor market outcomes in the vocational technical education sector, namely, making technical education responsive to the current and future needs of the private sector and establishing strong long-lasting partnerships between the private sector and the public institutions. The Contractor is, therefore, required to submit a sustainability plan for capacity building, institutional development, and sustainability of the interventions. This plan must include transforming TVET institutions and programs to become more flexible, efficient, and responsive to market needs, institutionalizing successful interventions, and building the capacity of TVET institutions and agents at the central, governorate, and school levels to be capable of managing the technical education transformation process over the coming decades. The strong involvement of the private sector in the design and implementation of the activities in this contract is a key factor for ensuring sustainability.

In addition, the sustainability plan must focus more on working through local organizations, NGOs, and the private sector for advocacy, to ensure that the appropriate eco-system for policy reform is established. Finally, the sustainability plan must also address gender imbalances as literature and country experiences demonstrate that gender equality is a necessary condition for achieving sustainable growth. For example, according to an IMF publication entitled “Economic Gains From Gender Inclusion: New Mechanisms, New Evidence,” fully equalizing male and female labor force participation in Egypt could increase GDP by some 60 percent.

C.4.d Gender Integration

Education and training are critical to building human capital and Egypt’s potential for inclusive economic development. According to several IMF studies, “women’s economic empowerment is key for growth both through the direct impact of the size of the labor force on output and through the impact on productivity”. In fact, “fully equalizing male and female labor force participation in Egypt could increase GDP by some 60 percent in Egypt”. The Contractor must therefore place special emphasis on providing equal opportunities to female students, teachers, trainees, and innovators. The preliminary gender analyses showed gaps such as the high unemployment rate of women (18.9%) compared to men (5.7%). A review of successful experiences in other countries promoting women in education, training, innovation, and employment must be used to better inform implementation. Specific activities in technical education and vocational training under the WE contract must ensure the adequate representation of females at the student/trainee level, the teacher level, and the employment level. All activities must include clear targets for female participation and must document the process for meeting these targets. Also gender analyses must take account of the presence and impact not only of cultural considerations, but also occupational and hierarchical segregation of men and women in the organization and institutions involved in the programming.

C.4.e Target Sectors and Geographical Areas

While many of the activities under Workforce Egypt will impact the whole TVET system, specific on the ground interventions shall cover the industrial, commercial and tourism sectors in at least 15 governorates, which must include governorates in the Delta, Upper Egypt, and the Suez Canal Corridor. The Contractor shall submit an analysis justifying the selection of the economic sectors and governorates.

The Contractor is also encouraged to select additional governorates in disadvantaged areas. To encourage investment in the youths of disadvantaged areas, the Contractor will conduct activities targeting workforce development for youth and women in selected disadvantaged areas such as North Sinai, pending security clearance approvals. Upon award of the Contract, the Contractor will work with USAID/Egypt to develop a plan for selecting the disadvantaged areas and related interventions.

C.4.f Impact on Jobs in the United States

USAID Automated Directives System (ADS) chapter 225 prohibits those activities with a high risk of substantial injury to U.S. producers or to potential relocation of U.S. jobs. While the Workforce Egypt activity is unlikely to have any adverse impact on US producers or jobs, the Contractor must monitor activity implementation to ensure compliance with SEC. 7025 of the Department of State, Foreign Operations, and Related Programs Appropriations Act for Fiscal Year 2012 (P.L. 112-74) as described in ADS 225. Any adverse findings must be brought to the immediate attention of USAID by written report during implementation.

C.5 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 of the terms and conditions of the Contract and the determinations of the Contracting Officer.

C.5.a Management and Administrative Services

The Contractor must provide all general management and administrative support necessary to perform the Contract. The services authorized include, but are not limited to:

● Overall management and administration of the Contract, including both expatriate and home office support and administrative services. The Contractor will provide both the key personnel specified in the Contract and additional personnel, long-term and short-term, necessary to meet recurring general management and administrative support needs under the Contract.

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

● The Contractor shall provide the planning necessary for performance of the contract. As discussed in more detail elsewhere, approval of implementation and other plans are required.

● Oversight, quality control and general technical support of all services and deliverables provided pursuant to the Contract.

● Provide and assure the proper, efficient and uniform use of modern management and administration, accounting practices, information technology (IT), communications, reporting, human resource management, property control, security, records and other administrative processes and systems required under the Contract.

● Manage the overall reporting needs of the program as specified in the Contract and developed in work plans in conjunction with the COR.

C.5.b Technical Services

By the end of the Workforce Activity, the Contractor must attain the following three major objectives:

Objective 1: Transformation of the Quality and Market Relevance of the TVET Institutions and Programs.

Objective 2: Strengthened Private Sector Participation in Workforce Development.

Objective 3: Improved Environment for Skills Development and Employment.

This will be achieved through:

(1) technical assistance, capacity building and training to relevant stakeholders and counterparts, including the Ministry of Education and Technical Education (MOETE), technical schools, public organizations, training institutions, private sector firms, NGOs, and business associations,

(2) establishing partnerships between businesses and MOETE at the Central, governorate and school levels;

(3) improving and promoting innovation in the provision of workforce development and vocational training programs;

(4) upgrading and improving curricula of selected secondary technical educational programs including the revamping of commercial education programs;

(5) establishing/upgrading a number of technical schools to meet international standards including funding the necessary equipment, tools and refurbishments;

(6) improving human resource strategies at the firm-level to improve productivity and reduce workers’ turnover;

(7) establishing alliances between USAID and selected private sector firms/associations and

(8) advocating for policy and regulatory reforms relating to labor market efficiency and human capital development at the governorate and national levels.

To reach the highest possible results, the Contractor must take into consideration the linkages among those three objectives throughout implementation and ensure a high level of coordination.

For all tasks under all three Objectives, the Contractor must report to USAID any implementation delays, and in cases of insurmountable roadblocks, recommend pivots and course corrections to USAID, so long as any such changes in implementation (a) are determined to be within the scope of work of the Contract, (b) do not require the commitment of additional funds, and (c) comply with applicable U.S. law and policy.

C.5.b.i Objective 1: Transformation of the Quality and Market Relevance of the TVET institutions and programs

Three results contribute to the achievement of Objective 1.

C.5.b.i.A Objective 1 Tasks by Results

Result 1.1: A fully developed quality assurance and accreditation system that guarantees the quality of TVET institutions and programs

The National Agency for Quality Assurance and Accreditation in Egypt (NAQAAE) is currently the entity responsible for quality assurance and accreditation of all educational institutions, including those under technical education. Since its establishment in 2006, NAQAAE has been focusing its efforts on general and higher educational institutions and did not develop any special standards for technical education. It was only in 2018 that NAQAAE, with the support and assistance of WISE, developed the first 9 standards especially designed for technical education.

Based on the special nature of TVET and the successful experience of many countries, the MOETE advocated for establishing a new Egyptian Technical Quality Assurance and Accreditation Network (ETQAAN) that would focus on TVET institutions and programs.

Egypt’s President approved the establishment of this new authority and the Law establishing the authority is currently being reviewed to be presented to the Parliament. In order to prepare the technical schools for accreditation, the MOETE decided to establish (currently underway) a Center for the Enhancement of Quality Assurance in Technical Education (CEQAT) to spearhead the reform process and assist schools in obtaining the accreditation from ETQAAN once it becomes operational.

It should be noted, however, that the Parliament may not approve the establishment of the new entity (ETQAAN) and may, instead, recommend strengthening the capacity of the existing entity (NAQAAE) to fully undertake the mandate of providing quality assurance and accreditation for TVET institutions and programs.