R -- Contract modification with Chemonics International (CI) using the authority provided by FAR 6.302-1

USAID/Peru hereby announces its intention to modify contract527-C-00-99-00271-00 with Chemonics International (CI) using the authority provided by FAR 6.302-1. CI was originally selected through full and open competition to conduct poverty reduction and alleviation and microenterprise and small producer activities under a level of effort (LOE) contract. USAID/Peru refers to this work as the Poverty Reduction and Alleviation (PRA) contract. The work involves business development activities in some of the most remote regions of Peru, including alternative development areas. The learning curve has been extremely steep, including at one stage CI having to take over the activities of a non-performing partner NGO. Under its LOE contract, CI initiated innovative, untested market development approaches that were recently independently evaluated. In validated progress to date, the evaluation concluded that the PRA activities are poised for showing even greater promise, but that the initial estimates for project timing and budget were overly optimistic. The current contract value is $16 million. In place are multiple, fully staffed business centers and numerous formal and informal private and public sector activities and relationships. Based upon USAID/Peru’s alternative development, trade and market competitiveness objectives – combined with the demonstrated expertise and success of the current PRA contract team – the Mission decided the activity should be extended but in the process converted to a performance based, completion type contract. Such an approach will solidify learning curve results and allow all of the effort and funding invested to date to be directed towards achieving specific sales, investment and employment targets. Achieving the desired completion state targets will involve an estimated additional four years plus funding of approximately $35 million. The PRA activity is on-going. It is not reasonable to believe that another implementer could insert itself into the activity midstream and achieve the results required. For this reason USAID/Peru has determined that it is appropriate to obtain CI’s services under other than full and open competition. Based upon the facts of the situation, USAID/Peru finds a reasonable basis for concluding that its minimum needs can only be satisfied by unique services available from an only source with unique capabilities. Accordingly, the services required are available from only one responsible source, no other type of services will satisfy USAID/Peru requirements, and FAR 6.302-1 applies. This notice is being published to comply with FAR 6.302-1 (d)(2).