DFID would like to contract a service provider for the STEP programme. The programme aims to incentivise small and medium-sized enterprises (SMEs) to expand production and create new permanent jobs for predominantly low-skilled Lebanese workers as well as — in accordance with Lebanese legislation — temporary jobs for Syrian refugees. STEP is expected to achieve this through the provision of finance and employment incentives, as well as a flexible package of technical assistance to facilitate access to Business Development Services. STEP will be delivered through 3 programme components. Component 1 will provide matching grants that firms can use to invest in eligible activities which enable them to expand output e.g. new equipment and business advisory services and/or eligible working capital and operating costs. The latter might also include training for new employees targeted at particular business needs. Component 2 will provide short/medium term wage subsidies to eligible SMEs and Component 3 relates to savings accounts for Syrian workers. During the pilot phase, combinations of different services (i.e. matching grants and/or wage subsidies) will be provided to individual SMEs in order to test the effectiveness of different packages of support. The approach will be agreed in advance in consultation with the independent evaluation contractor. Whilst this may provide opportunities to overcome multiple constraints that an enterprise might face, it may also present risks including that support from more than 1 component could provide a level of subsidies that will excessively distort the market. The SP will need to outline in their proposal, how they intend to maximise the benefits of multiple components whilst at the same time, minimising the costs and risks. Further information found at DFID Supplier Portal.