ENTERPRISE DEVELOPMENT FOR GLOBAL COMPETITIVENESS PROJECT THE COMPETE PROJECT. Issued Under Compete Project USAID Contract No. AID-294-C

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1 ENTERPRISE DEVELOPMENT FOR GLOBAL COMPETITIVENESS PROJECT THE COMPETE PROJECT FIRM-LEVEL ASSISTANCE PROGRAM MODIFICATION #2 Issuance Date: October 2, 2016 Revised Closing Date: August 31, 2017 Closing Time: 16:00 Ramallah time Revised Closing date of requesting applications: August 31, 2017 Revised Closing date of submitting questions: August 15, 2017 Revised Closing date of answering questions: August 31, 2017 Subject: Modified Request for Applications (RFA) Number Compete s Firm Level Assistance Program Reference: Issued Under Compete Project USAID Contract No. AID-294-C Enterprise Development for Global Competiveness Project ( Compete ) is a six-year project funded by United States Agency for International Development (USAID) designed to build on the strengths of previous USAID enterprise development projects. The primary objective of the Project is to improve access of small and medium Palestinian firms to the global economy by strengthening the competitiveness and export potential of at least seven sectors essential to the future prosperity of the Palestinian economy, between the West Bank and Gaza. These are: West Bank: 1. Agribusiness 2. Information & Communication Technology 3. Stone & Marble 4. Tourism Gaza: 1. Agribusiness 2. Information & Communication Technology 3. Fishing 4. Furniture 5. Garment & Textiles Under the Firm-Level Assistance Program USAID / Compete will assist firms as well as organizations that seek to assist firms (including but not limited to professional associations, unions, cooperatives, non-governmental organizations, and municipalities) in adopting best business practices, identifying gaps and market failures, and leveraging resources to improve competitiveness and enhance market access. Types of assistance offered under the program include: Technical Assistance Page 1 of 9

2 Capacity Building Strategic Business Plans Management Structures Production and Quality Systems Marketing and Sales Introduction of New Technology and Critical Inputs Addressing market failures that require new technology and/or production inputs unavailable in the local market. Supporting pilot initiatives to develop a new technology, service, or product. Workforce Development Trainings in areas critical to improving performance. Tailored apprenticeship programs that will offer specialized entry-level positions in a group of firms. Compete anticipates making up to 400 awards resulting from this RFA. The estimated award value per firm will be based on a case by case basis and subject to matching contributions where applicable. The term of any award shall not extend beyond September 1, Applications will be considered on a first-come first-serve basis, although on select basis Compete may exercise the judgment to expedite certain applications before others. An applicant may submit more than one application during the course of this program. Compete reserves the right to fund any or none of the applications submitted. For the purposes of this program, this RFA is being issued and consists of this cover letter and the following: Section A Application Instructions Section B Selection Process Section C Special Award Requirements Additional reference materials and provisions are referenced herein and provided in full text at Applications must be received by the closing date indicated at the top of this cover letter. Award will be made to the responsible applicant(s) whose application(s) offers the best value (i.e. strongest business case). Issuance of this RFA does not constitute an award commitment on the part of Compete, nor does it commit Compete to pay for costs incurred in the preparation and submission of an application. Further, Compete reserves the right to reject any or all applications received. Applications are submitted at the risk of the applicant. All preparation and submission costs are at the applicant's expense. Any questions concerning this RFA should be submitted in writing not later than 15 days prior to the closing date. Thank you for your interest in Compete s Firm-Level Assistance Program. Sincerely, Said Abu Hijleh Chief of Party Page 2 of 9

3 RFA Table of Contents I. Section A Application Procedures.4 a. Completion and Submission of Applications...4 i. Eligibility Requirements..4 ii. Cost Share..4 iii. Application Submission Requirements..4 iv. Deadlines.5 v. Late Applications 5 b. Preparation Instructions Program Description... 5 c. The Site Visit....5 d. Preparation Instructions Financial & Administrative II. Section B Selection Process..6 a. Evaluation Criteria. 6 b. Signing of Award...7 III. Section C Special Award Requirements.7 a. Permitted Uses of Program Income..7 b. Restriction 7 Page 3 of 9

4 Section A Application Procedure 1. Completion and submission of applications Eligibility Requirements Firms and organizations that seek to assist firms (including but not limited to professional associations, unions, cooperatives, non-governmental organizations, and municipalities) working in value chains across the following sectors in the West Bank and Gaza may submit an application: West Bank: Agribusiness Information & Communication Technology Stone & Marble (preference for firms developing decorate or environmentally-sustainable products) Tourism Gaza: Agribusiness Information & Communication Technology Fishing Furniture Garment & Textile To be eligible to receive assistance under the Firm-Level Assistance Program, the above eligible applicants must: Operate in value chains within one or more of the targeted sectors, as per respective location Have growth potential or ability to facilitate growth potential in individual firms or for the sector as a whole Be willing to undergo an assessment, share program cost, and commit to make changes Engage with the project and provide all required information Women and youth-owned and managed organizations meeting the above criteria will receive priority. In addition, organizations that support environmental programs, positive social advancements, or operate in rural areas will also be prioritized. Compete seeks to assist organizations that are registered and have been in operation for at least one year. However, startups and investors which exhibit specific potential in value chains within the aforementioned sectors may also qualify. Cost Share The firm-level assistance program includes a cost-share requirement. For assistance for grants related to new technology and critical inputs (equipment) in the West Bank and East Jerusalem, Compete s share of the total cost will not exceed forty percent (40%). The organization s share will not exceed sixty percent (60%). In Gaza, for aforementioned items, Compete s share will not exceed fifty percent (50%) and the organization s share will not exceed fifty percent (50%). For technical assistance, Compete s cost share will not exceed sixty percent (60%) in the West Bank or seventy percent (70%) in Gaza, and the organization s cost share will not exceed forty percent (40%) in the West Bank and East Jerusalem or thirty percent (30%) in Gaza. Page 4 of 9

5 Application Submission Requirements The Application Form is located at (reference RFA No ). Applications shall be submitted online, by fax, or hand-delivered to the address shown below. Upon receipt, Compete will review the application to determine that: All requested information has been provided on the application form; The applicant is working in a value chain for one of the four targeted sectors in the West Bank or five targeted sectors in Gaza; and Requested assistance is consistent with the strategic objectives of the program. If the application does not meet the submission requirements outlined above, the applicant will be notified of the program s decision to deny the requested assistance and the application will not be moved forward in the review process. If the application meets the submission requirements, the organization will be requested to complete a Program Description and Company Profile (refer to Section 2 below). In addition the applicant will be contacted to arrange a site visit by the Compete Team (refer to Section 3 below). Deadlines On-line applications must be submitted by the closing date and time indicated in the cover letter. Hand-delivered or faxed applications must also be received by the closing date and time indicated in the cover letter at the following address: DAI Compete Project Al Barduni Building, 7 th floor Jaffa Street Ramallah Attn: Manar Aranki Fax: Late Applications All applications received by the deadline will be reviewed for responsiveness and programmatic merit according to the specifications outlined in the RFA. Section B addresses the selection process for the applications. Applications which are submitted late or are incomplete run the risk of not being considered in the review process. 2. Preparation Instructions Program Description and Company Profile If the application meets the submission requirements outlined in Section A, Compete will request that the applicant complete a Program Description Form and a Company Profile. Both documents are located at (reference RFA No ). At this time, Compete will also schedule a site visit with the applicant. The purpose of the site visit is discussed in Section 3 below. 3. The Site Visit Upon notification, Compete will conduct a site visit to the organization. The purpose of the visit is to: 1. Provide assistance to the applicant in completing the Company Profile. 2. Verify information in the Company Profile. 3. Discuss and clarify the proposed program description. In addition, Compete will conduct an assessment of the applicant during the site visit to build a business case for the proposed intervention and to ensure that the firm is ready to engage and committed to combining their resources with Compete assistance to achieve sustainable results. Page 5 of 9

6 4. Preparation Instructions Financial and Administrative Documentation Depending on the size, type and complexity of the award resulting from this RFA, the following documents may also be requested by the Compete Team (pertinent documents are available at Completed Financial Questionnaire Documentation that the applicant has the ability to comply with the award conditions, taking into account all existing and currently prospective commitments of the applicant. Documentation that the applicant has a satisfactory record of integrity and business ethics. Copies of policies and procedures with regard to accounting/finance, procurement, human resources and inventory control. Data Universal Numbering System (DUNs) SAM registration Page 6 of 9

7 Section B - Selection Process Compete will convene a review panel to review all applications that meet the submission requirements outlined above. The review panel will include technical and non-technical members of the Compete project. Throughout the evaluation process, Compete shall take steps to ensure that members of the review panel do not have any conflicts of interest or the appearance of such with regard to the organizations whose applicants are under review. Members of the panel shall neither solicit nor accept gratuities, favors, or anything of monetary value from parties to the awards. If a suitable application is received, an award will be made provided that the awardee(s) furnish Compete with the required documentation itemized in Section A(4) of this RFA, as identified by Compete. The applications will be evaluated according to the evaluation criteria set forth below. To the extent necessary (if award is not made based on initial applications), negotiations may be conducted with each applicant whose application, after discussion and negotiation, has a reasonable chance of being selected for award. Award will be made to responsible applicants whose applications offer the best value (i.e. strongest business case). Awards will be made based on earning a minimum score of 70 out of 100 in the review panel. Awards however are subject to available funds, while meeting program objectives for sectors, geography, gender, youth, social development, and environmental considerations. Evaluation Criteria Evaluation Criteria GENERAL ELIGIBILITY CRITERIA Max Score 25 Points Firm exhibits growth potential Firm is registered, not applicable to farmers and start-ups Firm is willing to undergo an assessment, engage with the project, and is committed to change Firm is operating in a rural area Firm activity will focus on youth, gender, environment or other positive social developments PROJECT DESIGN 25 Points For technical solutions/assistance - degree to which activity: builds capacity; strengthens strategic business plan; strengthens management structure; or enhances production/quality systems. For new technology & critical inputs - degree to which activity: addresses market failures; or provides investment in pilot imitative to demonstrate new technology/service/product. For workforce development - degree to which training is critical to improving performance; or offers specialized entry level positions in a group of firms. Page 7 of 9

8 Value for Money 15 Points Total Cost of Activity Cost Share Percentage EXPECTED RESULTS Potential to: increase sales; increase value of exports; volume of exports; increase employment; introduce new or improved products; or increase access to new export markets. 35 points Signing of Award Upon USAID concurrence of the applicant, a Grant Agreement or Letter of Agreement will be prepared. After Compete and the successful applicant have signed the Agreement, Compete will provide training on financial management and reporting, if necessary. All reporting and contractual obligations will be explained to the successful applicant at a kick-off meeting. Compete and USAID reserve the right to fund any or none of the applications received. Section C - Special Award Requirements The applicant shall bear in mind the following special requirements may be applicable to any award resulting from this RFA: Permitted Uses of Program Income: The beneficiary will inform Compete of any program income generated under the award. The beneficiary will also agree to follow USAID s disposition requirements for such program income, which is in accordance with 22 CFR Program income earned under this agreement shall be applied and used in the following descending order: 1. Added to funds committed by USAID and the recipient to the project or program, and used to further eligible project or program objectives; 2. Used to finance the non-federal share of the project or program; and 3. Deducted from the total project or program allowable cost in determining the net allowable costs on which the federal share of costs is based. If the terms and conditions of the award do not specify how program income is to be used, then number 2) shall apply automatically. Awardees who are commercial organizations may not apply Option 1) to their program income. Restrictions: Funds provided under any resulting agreement shall not be used to finance any of the following: 1. Goods or services which are to be used primarily to meet military requirements or to support police or other law enforcement activities 2. Surveillance equipment 3. Equipment, research and/or services related to involuntary sterilization or the performance of abortion as a method of family planning 4. Gambling equipment, supplies for gambling facilities or any hotels, casinos or accommodations in which gambling facilities are or are planned to be located 5. Activities which significantly degrade national parks or similar protected areas or introduce exotic plants or animals into such areas Page 8 of 9

9 6. Establishment or development of any export processing zone or designated area where the labor, environmental, tax, tariff, and/or safety laws of the country in which such activity takes place would not apply 7. Pharmaceuticals 8. Pesticides 9. Logging equipment 10. Luxury goods (including alcoholic beverages and jewelry) 11. Establishing or expanding any enterprise that will export raw materials that are likely to be in surplus in world markets at the time such production becomes effective and that are likely to cause substantial injury to U.S. producers 12. Activities which would result in the loss of forest lands due to livestock rearing, road construction or maintenance, colonization of forest lands or construction of dams or other water control structures 13. Activities which are likely to have a significant adverse effect on the environment, including any of the following (to the extent such activities are likely to have a significant adverse impact on the environment): i.) Activities which may lead to degrading the quality or renewability of natural resources; ii.) Activities which may lead to degrading the presence or health of threatened ecosystems or biodiversity; iii.) Activities which may lead to degrading long-term viability of agricultural or forestry production (including through use of pesticides); iv.) Activities which may lead to degrading community and social systems, including potable water supply, land administration, community health and well-being or social harmony. 14. Activities which are likely to involve the loss of jobs in the United States due to the relocation or expansion outside of the United States of an enterprise located in the United States 15. Activities which the awardee is aware are reasonably likely to contribute to the violation of internationally or locally recognized rights of workers 16. Activities to support the production of agricultural commodities for export from when such commodities would directly compete with exports of similar United States agricultural commodities to third countries and have a significant impact on United States exporters Pursuant to 22 CFR , it is USAID policy not to award profit under assistance instruments such as grant awards. However, all reasonable, allocable, and allowable expenses, both direct and indirect, which are related to the grant program and are in accordance with applicable cost standards (22 CFR 226, OMB Circular A-122 for non-profit organization, OMB Circular A-21 for universities, and the Federal Acquisition Regulation (FAR) Part 31 for-profit organizations), may be paid under the grant. For U.S. organizations, 2 CFR 700, 2 CFR 200, and ADS 303maa, Standard Provisions for U.S. Non-governmental Organizations are applicable. For non-u.s. organizations, ADS 303mab, Standard Provisions for Non-U.S. Non-governmental Organizations will apply. Applicants are directed to ADS and for further information. In addition, Standard Provisions can be found at Page 9 of 9