RFP 72036724R00001 USAID Agricultural Transformation_10-22-2023.pdf

Issuance Date: October 22, 2023

Closing Date/Time for Ques�ons: November 1, 2023, 9:00 a.m. Eastern Time

Closing Date/Time for Receipt of Phase 1 Proposals: November 22, 2023, 9:00 a.m. Eastern Time

Subject: Request for Proposals (RFP) No. 72036 724R00001 Feed the Future Nepal USAID Agricultural Transforma�on

The United States Agency for Interna�onal Development (USAID) is seeking proposals to provide technical assistance and support to USAID/Nepal’s Economic Growth Office to catalyze the transforma�on of Nepal’s agricultural sector required for inclusive economic growth as described in this Request for Proposals (RFP). USAID an�cipates the award of a Cost-Plus-Fixed Fee (CPFF) Comple�on type contract for an an�cipated five-year period. The overall es�mated cost of this procurement is between $55.0 million and $60.0 million.

USAID invites all interested and responsible organiza�ons to submit offers in accordance with the requirements of this solicita�on. USAID will conduct this procurement as a full and open compe��on, as set forth in Federal Acquisi�on Regula�on (“FAR”) Part 15. Proposals will be accepted from eligible organiza�ons. USAID encourages par�cipa�on in this ac�vity to the maximum extent possible of small business concerns, small, disadvantaged business concerns, and women-owned small business concerns as a prime contractor or as a subcontractor. The geographic code for this procurement is 937, and the NAICS code is 541690, Other Scien�fic and Technical Consul�ng Services.

Please refer to Sec�on L for informa�on regarding proposal requirements. Offerors should take into account the expected delivery �me required by the proposal transmission method, and they are responsible for ensuring proposals are received at USAID by the due date and �me as specified above. Failure to comply with the submission date will deem any submission unacceptable and it will not be reviewed or evaluated. Sec�on M states the criteria by which proposals will be evaluated. Pursuant to Block 12 of Standard Form 33 of this RFP, offers must remain valid for 220 days.

Any ques�ons regarding the RFP’s requirements must be submi�ed no later than the �me and date stated above to Contrac�ng Officer, Robyn Bertholon, at rbertholon@usaid.gov , and Acquisi�on and Assistance Specialist, Nalinee Wiche�humsak at nwiche�humsak@usaid.gov .

mailto:mtelevantos@usaid.gov mailto:nwichetthumsak@usaid.gov

Feed the Future Nepal USAID Agricultural Transforma�on Solicita�on No.: 72036724R00001

This RFP in no way obligates USAID to award a contract nor does it commit USAID to pay any cost incurred in the prepara�on and submission of a proposal. Award of a contract under this RFP is subject to availability of funds and other internal USAID approvals. This RFP can be viewed and downloaded from www.sam.gov . USAID bears no responsibility for data errors resul�ng from transmission or conversion processes. Further, be aware that amendments to solicita�ons are occasionally issued and will be posted on the same website from which you downloaded the solicita�on. USAID advises to regularly check the above website for amendments.

Sincerely, --/s/--

Maria Televantos Contrac�ng Officer USAID/Nepal http://www.sam.gov/ http://www.fedbizopps.gov/

SECTION

15A. NAME AND

ADDRESS

OF OFFEROR

SOLICITATION, OFFER, AND AWARD 1. This Contract is a Rated Order under the Defense Priorities and Allocations System (DPAS) - Code of Federal Regulations - at 15 CFR 700.

RATING PAGE OF PAGES

2. CONTRACT NUMBER 3. SOLICITATION NUMBER 4. TYPE OF SOLICITATION 5. DATE ISSUED 6. REQUISITION/PURCHASE NUMBER

CODE7. ISSUED BY 8. ADDRESS OFFER TO (If other than item 7)

NOTE: In sealed bid solicitations "offer" and "offeror" mean "bid" and "bidder".

SOLICITATION

9. Sealed offers in original and copies for furnishings the supplies or services in the Schedule will be received at the place specified in item 8, or if hand carried, in the depository located in until local time

CAUTION - LATE Submissions, Modifications, and Withdrawals: See Section L, Provision Number 52.214-7 or 52.215-1. All offers are subject to all terms and conditions contained in this solicitation.

10. FOR

INFORMATION

CALL:

A. NAME B. TELEPHONE (NO COLLECT CALLS)

AREA CODE NUMBER EXTENSION

C. EMAIL ADDRESS

11. TABLE OF CONTENTS

(X) DESCRIPTION PAGE(S) (X) SECTION PAGE(S)DESCRIPTION

A B C D E F G H

I

J

K

L

M EVALUATION FACTORS FOR AWARD

INSTRUCTIONS, CONDITIONS, AND NOTICES TO OFFERORS

REPRESENTATIONS, CERTIFICATIONS AND OTHER

STATEMENTS OF OFFERORS

PART IV - REPRESENTATIONS AND INSTRUCTIONS

LIST OF ATTACHMENTS

PART III - LIST OF DOCUMENTS, EXHIBITS AND OTHER ATTACHMENTS

CONTRACT CLAUSESSOLICITATION/CONTRACT FORM

SUPPLIES OR SERVICES AND PRICES/COSTS

DESCRIPTION/SPECIFICATIONS/WORK STATEMENT

PACKAGING AND MARKING

INSPECTION AND ACCEPTANCE

DELIVERIES OR PERFORMANCE

CONTRACT ADMINISTRATION DATA

SPECIAL CONTRACT REQUIREMENTS

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

OFFER (Must be fully completed by offeror) 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 set opposite each item, delivered at the designated point(s), within the time specified in the schedule.

13. DISCOUNT FOR PROMPT PAYMENT

(See Section I, Clause Number 52.232-8)

14. ACKNOWLEDGMENT OF AMENDMENTS

(The offeror acknowledges receipt of amendments to the SOLICITATION for offerors and related documents numbered and dated):

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

DATEAMENDMENT NUMBERAMENDMENT NUMBER DATE

CODE FACILITY 16. NAME AND THE TITLE OF PERSON AUTHORIZED TO SIGN OFFER

(Type or print)

15B. TELEPHONE NUMBER

AREA CODE NUMBER EXTENSION

15C. CHECK IF REMITTANCE ADDRESS IS

DIFFERENT FROM ABOVE - ENTER

SUCH ADDRESS IN SCHEDULE.

17. SIGNATURE 18. OFFER DATE

AWARD (To be completed by Government)

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

22. AUTHORITY FOR USING OTHER THAN FULL OPEN COMPETITION UNDER THE

UNITED STATES CODE AT:

10 U.S.C. 3204(a) ( )41 U.S.C. 3304(a)

24. ADMINISTERED BY (If other than Item 7)

26. NAME OF CONTRACTING OFFICER (Type or print)

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 is unusable

23. SUBMIT INVOICES TO ADDRESS SHOWN IN

(4 copies unless otherwise specified)

25. PAYMENT WILL BE MADE BY

27. UNITED STATES OF AMERICA

(Signature of Contracting Officer)

28. AWARD DATE

CODE

ITEM

STANDARD FORM 33 (REV. 12/2022)

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

SEALED BID (IFB) INVITATION FOR BID

NEGOTIATED (RFP) REQUEST FOR

PROPOSAL

(Hour) (Date)

PART I - THE SCHEDULE PART II - CONTRACT CLAUSES

3 197

REQ-367-23-000006

USAID/Nepal Office of Acquisition and Assistance

72036724R00001

Nalinee Wichetthumsak nwichetthumsak@usaid.gov

72 172

10/27/2023

Maria Televantos

12. In compliance with the above, the undersigned agrees, if this offer is accepted within 220 calendar days (60 calendar days unless a different

Table of Contents

Table of Contents 4

PART I-SCHEDULE 9

SECTION B – SUPPLIES OR SERVICES AND PRICE/COSTS 9

B.1 PURPOSE 9

B.2 CONTRACT TYPE 9

B.3 ESTIMATED COST, FIXED FEE, AND OBLIGATED AMOUNT 9

B.4 BUDGET 9

B.5 INDIRECT COSTS AND ADVANCED UNDERSTANDING ON CEILINGS 10

B.6 COST REIMBURSABLE 10

B.7 PAYMENT OF FIXED FEE 11

SECTION C – DESCRIPTION/SPECIFICATIONS/STATEMENT OF WORK 12

C.1 TITLE OF ACTIVITY 12

C.2 PURPOSE 12

C.3 CONTEXT AND BACKGROUND 12

C.4 GEOGRAPHIC FOCUS, TARGET POPULATION, AND COMMODITY FOCUS 21

C.5 ACTIVITY APPROACH AND OBJECTIVES 23

C.6 CROSS CUTTING WORK AND GUIDING IMPLEMENTATION PRINCIPLES 39

C.7 MONITORING, EVALUATION, AND LEARNING 45

SECTION D – PACKAGING AND MARKING 47

D.1 AIDAR 752.7009 MARKING (JAN 1993) 47

D.2 BRANDING STRATEGY 47

D.3 BRANDING IMPLEMENTATION PLAN (BIP) AND MARKING PLAN (MP) 48

SECTION E – INSPECTION AND ACCEPTANCE 49

E.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE 49

E.2 INSPECTION AND ACCEPTANCE 49

E.3 RESPONSIBLE OFFICIAL 49

SECTION F – DELIVERIES OR PERFORMANCE 50

F.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE 50

F.2 PERIOD OF PERFORMANCE 50

F.3 AUTHORIZED WORK DAY/WEEK 50

F.4 PLACE OF PERFORMANCE 50

F.5 REPORTS AND PLANS 50

F.6 MINIMUM DELIVERABLES OR RESULTS MATRIX 63

F.7 PERSONNEL 64

F.8 PERFORMANCE MONITORING STANDARDS 66

SECTION G—CONTRACT ADMINISTRATION DATA 67

G.1 AIDAR 752.7003 DOCUMENTATION FOR PAYMENT (NOV 1998) 67

G.2 CONTRACTING OFFICER’S AUTHORITY 68

G.3 ADMINISTRATIVE CONTRACTING OFFICE 68

G.4 PAYING OFFICE 69

G.5 INVOICING INSTRUCTIONS 69

G.6 CONTRACTING OFFICER’S REPRESENTATIVE (COR) 69

G.7 TECHNICAL DIRECTIONS/RELATIONSHIP WITH USAID 69

G.8 ACCOUNTING AND APPROPRIATION DATA 71

SECTION H – SPECIAL CONTRACT REQUIREMENTS 72

H.1 AUTHORIZED GEOGRAPHIC CODE 72

H.2 ELECTRONIC PAYMENTS SYSTEM 72

H.3 LIMITATION ON ACQUISITION OF INFORMATION TECHNOLOGY (APRIL 2018) (DEVIATION

NOs. M-OAA-DEV-FAR-22-03c and M-OAA-DEV-AIDAR-22-06c) 73

H.4 LOGISTICS SUPPORT 74

H.5 ADS 302.3.5.19 USAID-FINANCED THIRD-PARTY WEB SITES (NOV 2017) 74

H.6 RESTRICTIONS AGAINST DISCLOSURE (MAY 2016)(DEVIATION NO.

M-OAA-DEV-AIDAR-22-06c) 76

H.7 ENVIRONMENTAL COMPLIANCE 76

H.8 ADS 302.3.5.21 SUBMISSION OF DATASETS TO THE DEVELOPMENT DATA LIBRARY (DDL)

(October 2014) 78

H.9 PROHIBITION OF ASSISTANCE TO DRUG TRAFFICKERS 79

H.10 EXECUTIVE ORDER ON TERRORISM FINANCING 79

H.11 FOREIGN GOVERNMENT DELEGATIONS TO INTERNATIONAL CONFERENCES (JAN 2002) 80

H.12 LIMITING PLASTIC POLLUTION AND MISMANAGED WASTE (MARCH 2020) 80

H.13 CONSENT TO SUBCONTRACT 80

H.14 EXCHANGE VISITORS AND LEARNING ACTIVITIES 81

H.15 CONFLICTS OF INTEREST 82

H.16 DISCLOSURE OF INFORMATION 83

H.17 ADDITIONAL REQUIREMENTS FOR INTERNATIONAL TRAVEL 84

H.18 LANGUAGE REQUIREMENTS 84

H.19 PRESS RELATIONS 84

H.20 STANDARDS OF CONDUCT -- IMPROPER BUSINESS PRACTICES 84

H.21 INFORMATION AND COMMUNICATION TECHNOLOGY ACCESSIBILITY (APRIL 2018)

(DEVIATION NO. M-OAA-DEV-AIDAR-22-06C) 85

H.22 LOCAL TAXES 86

H.23 GRANTS UNDER CONTRACT 86

H.24 SEXUAL MISCONDUCT (DECEMBER 2020) 89

H.25 PERSONNEL COMPENSATION (JULY 2007) 89

H.26 ADDITIONAL REQUIREMENTS FOR PERSONNEL COMPENSATION 89

H.27 GENDER CONSIDERATION 91

H.28 ACKNOWLEDGEMENT AND DISCLAIMER (DECEMBER 1991) 91

H.29 SUBCONTRACTING PLAN AND REPORTING 92

H.30 FAR Part 4.21 PROHIBITION ON CONTRACTING FOR CERTAIN COVERED

TELECOMMUNICATIONS AND VIDEO SURVEILLANCE SERVICES OR EQUIPMENT (SECTION 889)

(JUNE 2023) 92

PART II – CONTRACT CLAUSES 94

SECTION I – CONTRACT CLAUSES 94

I.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE 94

I.2 FAR 52.252-2 CLAUSES INCORPORATED BY REFERENCE (FEB 1998) 94

I.3 AIDAR 752.252-1 AIDAR SOLICITATION PROVISIONS INCORPORATED BY REFERENCE (MAR

2015) 97

I.4 FAR 52.203-13 CONTRACTOR CODE OF BUSINESS ETHICS AND CONDUCT (NOV 2021) 98

I.5 FAR 52.204-1 APPROVAL OF CONTRACT (DEC 1989) 102

I.6 FAR 52.222-36 EQUAL OPPORTUNITY FOR WORKERS WITH DISABILITIES (JUN 2020) 102

I.7 FAR 52.222-50 COMBATING TRAFFICKING IN PERSONS (NOV 2021) 102

I.8 FAR 52.229-8 TAXES – FOREIGN COST-REIMBURSEMENT CONTRACTS (MAR 1990) 110

I.9 FAR 52.244-2 SUBCONTRACTS (JUN 2020) ALTERNATE I (JUN 2020) 110

I.10 AIDAR 752.222-70 USAID DISABILITY POLICY (DEC 2004) 112

I.11 AIDAR 752.228-3 WORKER’S COMPENSATION INSURANCE (DEFENSE BASE ACT) (DEC 1991)

[(DEVIATION JUN 2022)] CLASS DEVIATION NO. M-OAA-DEV-AIDAR-22-10C 113

I.12 AIDAR 752.229-71 REPORTING OF FOREIGN TAXES (JULY 2007) 114

I.13 AIDAR 752.231-72 CONFERENCE PLANNING AND REQUIRED APPROVALS (AUG 2013)

[DEVIATION (APR 2022)] 115

I.14 AIDAR 752.231-71 SALARY SUPPLEMENTS FOR HOST GOVERNMENT EMPLOYEES (MAR 2015)

I.15 AIDAR 752.242-70 PERIODIC PROGRESS REPORTS (OCT 2007) 118

I.16 AIDAR 752.245-70 GOVERNMENT PROPERTY – USAID REPORTING REQUIREMENTS (OCT

2017) 118

I.17 AIDAR 752.7005, SUBMISSION REQUIREMENTS FOR DEVELOPMENT EXPERIENCE

DOCUMENTS (SEPT 2013) 120

I.18 AIDAR 752.7013 CONTRACTOR-MISSION RELATIONSHIPS (OCT 1989) [DEVIATION (JUN

2018)] 121

I.19 AIDAR 752.7032 INTERNATIONAL TRAVEL APPROVAL AND NOTIFICATION REQUIREMENTS

(APR 2014) 122

PART III—LIST OF DOCUMENTS, EXHIBITS, AND OTHER ATTACHMENTS 124

SECTION J—LIST OF EXHIBITS AND ATTACHMENTS 124

PART IV – REPRESENTATIONS AND INSTRUCTIONS 125

SECTION K – REPRESENTATIONS, CERTIFICATIONS AND OTHER STATEMENTS OF OFFERORS 125

K.1 NOTICE LISTING FAR SOLICITATION PROVISIONS INCORPORATED BY REFERENCE 125

K.2 FAR 52.204-8 ANNUAL REPRESENTATIONS AND CERTIFICATIONS (MAR 2023) 125

K.3 FAR 52.204-20 PREDECESSOR OF OFFEROR (AUG 2020) 130

K.4 FAR 52.204-24 REPRESENTATION REGARDING CERTAIN TELECOMMUNICATIONS AND VIDEO

SURVEILLANCE SERVICES OR EQUIPMENT (NOV 2021) 131

K.5 FAR 52.204-26 COVERED TELECOMMUNICATIONS EQUIPMENT OR SERVICES-

REPRESENTATION (OCT 2020) 134

K.6 FAR 52.209-5 CERTIFICATION REGARDING RESPONSIBILITY MATTERS (AUG 2020) 135

K.7 FAR 52.209-7 INFORMATION REGARDING RESPONSIBILITY MATTERS (OCT 2018) 137

K.8 FAR 52.209-11 REPRESENTATION BY CORPORATIONS REGARDING DELINQUENT TAX LIABILITY

OR A FELONY CONVICTION UNDER ANY FEDERAL LAW (FEB 2016) 139

K.9 FAR 52.209-12 CERTIFICATION REGARDING TAX MATTERS (OCT 2020) 139

K.10 FAR 52.222-22 PREVIOUS CONTRACTS AND COMPLIANCE REPORTS (FEB 1999) 140

K.11 FAR 52.222-25 AFFIRMATIVE ACTION COMPLIANCE (APR 1984) 140

K.12 FAR 52.223-1 BIOBASED PRODUCT CERTIFICATION (MAY 2012) 140

K.13 FAR 52.223-22 PUBLIC DISCLOSURE OF GREENHOUSE GAS EMISSIONS AND REDUCTION

GOALS-REPRESENTATION (DEC 2016) 141

K.14 FAR 52.230-1 COST ACCOUNTING STANDARDS NOTICES AND CERTIFICATION (JUN 2020) 141 K.15 FAR 52.230-7 – PROPOSAL DISCLOSURE-COST ACCOUNTING PRACTICE CHANGES (APR 2005)

K.16 INSURANCE – IMMUNITY FROM TORT LIABILITY 145

K.17 AUTHORIZED NEGOTIATORS 145

K.18 SIGNATURE 145

SECTION L – INSTRUCTIONS, CONDITIONS, AND NOTICES TO OFFERORS 146

L.1 FAR 52.252-1 SOLICITATION PROVISIONS INCORPORATED BY REFERENCE (FEB 1998) 146

L.2 FAR 52.216-1 TYPE OF CONTRACT (APR 1984) 146

L.3 FAR 52.233-2 SERVICE OF PROTEST (SEP 2006) 147

L.4 GENERAL INSTRUCTIONS TO OFFERORS 147

L.5 PROPOSAL DELIVERY INSTRUCTIONS 150

L.6 INSTRUCTIONS FOR THE PREPARATION OF THE PHASE ONE PROPOSAL 152

L.7 INSTRUCTIONS FOR THE PREPARATION OF THE PHASE TWO TECHNICAL PROPOSAL 153

L.8 INSTRUCTIONS FOR THE PREPARATION OF THE COST/BUSINESS PROPOSAL 159

L.9 GOVERNMENT OBLIGATION 170

L.10 WAIVERS UNDER FAR PART 4.2101 PROHIBITION ON COVERED TELECOMMUNICATIONS AND

VIDEO SURVEILLANCE SERVICES AND EQUIPMENT (JUNE 2023) 170

L.11 FAR 52.201-1 ACQUISITION 360: VOLUNTARY SURVEY (SEPT 2023) 171

SECTION M – EVALUATION FACTORS FOR AWARD 172

M.1 GENERAL INFORMATION 172

M.2 PHASE ONE ADVISORY NOTIFICATION 172

M.3 EVALUATION FACTOR - PHASE ONE 173

M.4 EVALUATION FACTOR - PHASE TWO 173

M.6 COST EVALUATION 175

M.7 DETERMINATION OF THE COMPETITIVE RANGE 176

M.8 SOURCE SELECTION 177

M.9 CONTRACT AWARD 177

ATTACHMENT J.1 - INITIAL ENVIRONMENTAL EXAMINATION #ASIA 22-080 178

ATTACHMENT J.2 - CONTRACTOR PAST PERFORMANCE INFORMATION MATRIX 196

ATTACHMENT J.3 - USAID SMALL BUSINESS SUBCONTRACTING PLAN TEMPLATE AND ATTACHMENT

A: SMALL BUSINESS PARTICIPATION PLAN TEMPLATE 197

PART I-SCHEDULE

SECTION B – SUPPLIES OR SERVICES AND PRICE/COSTS

B.1 PURPOSE

The purpose of this contract is to provide services that fall within the Statement of Work (SOW) specified in Sec�on C of this Ac�vity, �tled, “Feed the Future Nepal USAID Agricultural Transforma�on.”

B.2 CONTRACT TYPE

This is a cost-plus-fixed-fee (CPFF) comple�on type contract. For the considera�on set forth in the contract, the Contractor must provide the deliverables or outputs described in Sec�on C and F in accordance with the performance standards specified herein.

B.3 ESTIMATED COST, FIXED FEE, AND OBLIGATED AMOUNT

(a) The es�mated cost for the performance of the work required hereunder, exclusive of fixed fee, if any, is TBD . The fixed fee for the contract period is TBD . The total es�mated cost plus fixed fee is TBD .

(b) Within the es�mated cost plus fixed fee 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 unless authorized by the Contrac�ng Officer pursuant to the clause of this contract �tled “Limita�on of Funds” (FAR 52.232-22).

B.4 BUDGET

(a) The budget for this contract is as follows:

Line Item Total Direct Costs Grants under Contract $8,460,000.00 Indirect Costs Total Es�mated Cost Fixed Fee Total Cost plus Fixed Fee

(b) The inclusion of any costs in the above cost categories does not obviate the requirement for prior approval by the Contrac�ng Officer of cost items designated as requiring prior approval by any of the terms and condi�ons of this contract, including the applicable cost principles (see FAR § 52.216-07, “Allowable Cost and Payment”); nor does it cons�tute a determina�on of allowability by the Contrac�ng Officer of any item of cost, unless specifically stated elsewhere in this contract. Also, these amounts may not be adjusted without a wri�en modifica�on signed by the Contrac�ng Officer. The Contractor must not bill any amounts against this contract in excess of the amounts specified for each line item.

B.5 INDIRECT COSTS AND ADVANCED UNDERSTANDING ON CEILINGS

Pending establishment of revised provisional or final indirect cost rates, allowable indirect costs shall be reimbursed on the basis of the following nego�ated provisional or predetermined rates and the appropriate bases for the Contractor:

Contractor Fringe Rate %

Overhead Rate %

Overhead Ceiling Rate%

G&A Rate %

G&A Ceiling Rate %

PRIME (Insert Name) Base of Applica�on Source: (insert) Period: (insert)

NOTE: Insert addi�onal indirect rates as needed for the Contractor in the above table.

*Special Note: The un-shaded columns in the indirect cost table are the current approved indirect cost rates for the Contractor.

The Contractor will make no change in its established method of classifying or alloca�ng indirect costs that impacts this contract without the prior wri�en approval of the Contrac�ng Officer.

Reimbursement for indirect costs must be at final nego�ated rates, but not in excess of ceiling rates specified above.

The Government must not be obligated to pay any addi�onal amount associated with indirect costs above the ceiling rates established in the contract. This advance understanding must not change any monetary ceiling, cost limita�on, or obliga�on established in the contract.

Note: Contractors are allowed to recoup indirect costs (OH, G&A, etc.) as other direct costs if it is part of the contractor’s usual accoun�ng procedures, consistent with FAR Part 31 and the contractor’s NICRA.

B.6 COST REIMBURSABLE

The U.S. dollar costs allowable must be limited to reasonable, allocable and necessary costs determined in accordance with FAR 31 (Contract Cost Principles), FAR 52.216-7 (ALLOWABLE COST AND PAYMENT), FAR 52.216-8 (FIXED FEE), if applicable, and USAID Acquisi�on Regula�on (AIDAR) 752.7003 (Documenta�on for Payment).

B.7 PAYMENT OF FIXED FEE

Pursuant to FAR 16.306(d) “Cost-Plus-Fixed-Fee Contracts”, a percentage (70%) of the payment of the fixed fee under this contract is �ed to the comple�on of the deliverables/results described in Sec�on C and F.6 of this contract and in accordance with the approved Fee Schedule below.

[ Table to be completed by the Offeror and incorporated into the award in accordance with Sec�on L.7 ] :

Deliverable/Result Achievement Threshold

% of Fee Fee ($)

TBD TBD TBD TBD

TBD TBD TBD TBD

TBD TBD TBD TBD

Upon successful comple�on of a deliverable, the Contractor must provide evidence of its achievement to the Contrac�ng Officer’s Representa�ve (COR) and the Contrac�ng Officer (CO).

Upon COR receipt and wri�en acceptance of a deliverable, the Contractor must submit an invoice for the amount of the associated fee including evidence of comple�on of the deliverables for which fee is claimed.

Payment of the remaining (30%) of fixed fee, subject to the terms stated in FAR 52.216-8, may be made upon receipt of a proper invoice. Subject to FAR 52.216-8, Fixed Fee, payment of fixed fee shall be allocated based upon the propor�on of the invoiced amount in the period covered by the invoice to the total es�mated cost of the periods of the contract not including fixed fee.

In the event of discon�nuance of the work in accordance with the clause of the contract en�tled “Termina�on (Cost Reimbursement)” (FAR 52.249-6), the fee must be re-determined by mutual agreement equitably to reflect the reduc�on in the work actually performed. The amount by which such fee is less than, or exceeds, payments previously made on account of the fee must be paid to, or repaid by the Contractor, as applicable.

[END OF SECTION B]

SECTION C – DESCRIPTION/SPECIFICATIONS/STATEMENT OF WORK

C.1 TITLE OF ACTIVITY

The �tle of this ac�vity is Feed the Future Nepal USAID Agricultural Transforma�on.

C.2 PURPOSE

The purpose of Feed the Future Nepal USAID Agricultural Transforma�on (“the Ac�vity”) is to catalyze the transforma�on of Nepal’s agricultural sector required for inclusive economic growth. The widely-recognized process of agricultural transforma�on is characterized by the transi�on from subsistence farming to diversified, commercial farming and to increased off-farm employment and income genera�on driven by agricultural growth. 1 It is brought about through targeted efforts to rapidly enhance farm produc�vity, add value, and increase market compe��veness, harnessing agriculture as an engine of growth for the broader economy. The Ac�vity builds on the past success of USAID Nepal’s Feed the Future (FTF) program by strengthening the market systems of strategic value chains, and by aligning agricultural development with efforts to promote food security, improve nutri�on, and build the resilience of rural farming communi�es, especially to risks posed by climate change. Feed the Future Nepal USAID Agricultural Transforma�on will require broad buy-in and alignment on a range of cri�cal reforms and investments across a wide spectrum of public and private sector stakeholders. Leveraging rela�onships forged over more than a decade of implemen�ng FTF, the objec�ves were developed in consulta�on with key actors involved in the transforma�on effort.

Through this consulta�ve process, USAID has priori�zed four objec�ves for this Ac�vity:

Objec�ve 1: Agricultural produc�vity, compe��veness, and diversifica�on increased

Objec�ve 2: Enabling environment for private sector investment in agriculture and equitable access to market systems improved

Objec�ve 3: Climate and economic resilience of women, youth, and marginalized communi�es enhanced

Objec�ve 4: Capacity of na�onal agricultural research ins�tu�ons and extension systems strengthened.

C.3 CONTEXT AND BACKGROUND

Across several metrics of readiness for agricultural transforma�on, Nepal demonstrates strong poten�al. Sixty percent of the popula�on is currently employed in agriculture, making it the predominant economic ac�vity. However, the total value of agriculture’s contribu�on to GDP

1 See Timmer, 1988, Gollin et al, 2002, Chris�aensen et al, 2010; GFSS Technical Guidance, Strategy Objec�ve 1: Inclusive and Sustainable Agricultural-Led Economic Growth .

https://agrilinks.org/post/guidance-and-tools-global-food-security-programs https://agrilinks.org/post/guidance-and-tools-global-food-security-programs remains rela�vely low at just 26.8 percent, demonstra�ng that agriculture is an under-produc�ve sector with room for growth. Low returns in agriculture reflect low produc�vity, a lack of diversifica�on and compe��veness, and a highly constrained enabling environment for private investment in agriculture compared to other sectors.

On the path to agricultural transforma�on, most countries ini�ally demonstrate an increase in agriculture’s contribu�on to GDP, which then decreases over �me as the rela�ve contribu�on of other sectors of the economy rise. In light of this, the decline in agriculture's contribu�on to GDP since 2010/11 (Figure 1) might be interpreted as a posi�ve sign of economic growth in Nepal. However, the other sectors of the economy have not risen to match the expected trend of broad-based economic transforma�on. According to a recent Government of Nepal (GON) Economic Survey, the rela�ve share of total value from industry and services as a contribu�on to Nepal’s GDP was es�mated at just 12.8 percent and 60.4 percent respec�vely in 2020/21 2 .

The reality is that in Nepal, overall economic growth is faltering. Despite slow but steady GDP growth averaging 4.5 percent from 2000-2019, the trend reversed in 2020, at a rate of -2 percent, largely a�ributable to the COVID-19 pandemic. 3

Figure 1. Contribu�on of the Agriculture Sector to the GDP 4

In recent years Nepal has succeeded in reducing mul�dimensional poverty, with the incidence decreasing from 59 percent in 2006 to 17.4 percent in 2019. 5 However, it is important to note that this achievement does not fully reflect con�nuing regional and demographic dispari�es.

Monetary poverty in Nepal is predominantly rural; and regional varia�on is high, with Karnali, Sudurpaschim, and Madhesh Provinces repor�ng higher headcount ra�os of 39.5 percent, 25.3 percent, and 24.2 percent, respec�vely. In addi�on, historically marginalized groups from the Tarai/Madhesh communi�es are among the poorest in Nepal. 6 Nepal has also succeeded in sharply reducing the prevalence of childhood stun�ng, from 57 percent in 2001 to 25 percent in 2022 (NDHS 2022 Key Indicators result). However, similar regional and social dispari�es exist in nutri�on and food security as in poverty. The propor�on of households experiencing food

6 h�ps://www.researchgate.net/publica�on/280216061_Nepal_Social_Inclusion_Survey_2012_Caste_Ethnic_and_Gender_Dime nsions_of_Socio-economic_Development_Governance_and_Social_Solidarity

5 Nepal Mul�dimensional Poverty Index Report, 2018 and 2021

4 h�ps://www.mof.gov.np/uploads/document/file/1633341980_Economic%20Survey%20(Engslish)%202020-21.pdf

3 World Bank Development Indicators: h�ps://data.worldbank.org/indicator/NY.GDP.MKTP.KD.ZG?loca�ons=NP

2 Government of Nepal, Ministry of Finance, Economic Survey 2076/77 (in Nepali), 2021 https://www.researchgate.net/publication/280216061_Nepal_Social_Inclusion_Survey_2012_Caste_Ethnic_and_Gender_Dimensions_of_Socio-economic_Development_Governance_and_Social_Solidarity https://www.researchgate.net/publication/280216061_Nepal_Social_Inclusion_Survey_2012_Caste_Ethnic_and_Gender_Dimensions_of_Socio-economic_Development_Governance_and_Social_Solidarity https://ophi.org.uk/nepal-multidimensional-poverty-index-2018/ https://npc.gov.np/images/category/MPI_Report_2021_for_web.pdf https://www.mof.gov.np/uploads/document/file/1633341980_Economic%20Survey%20(Engslish)%202020-21.pdf https://data.worldbank.org/indicator/NY.GDP.MKTP.KD.ZG?locations=NP insufficiency is far higher for marginalized groups, such as Hill Dalits (53.2 percent) and Madhesi Dalits (59.3 percent), and Mountain/Hill Janaja� and Muslim popula�ons. 7 Meanwhile, progress on was�ng, a measure of acute malnutri�on, has stalled.

COVID-19 and its impact on the agriculture sector: Beginning in March 2020, the GON imposed a stringent na�onwide lockdown that lasted un�l July 2020. This was followed by mul�ple localized lockdowns across Nepal, which limited movement consequently suspending the majority of economic ac�vi�es. The resultant economic shock sent ripples through the agriculture sector and allied economic segments. The lockdown and the limita�ons that it placed on the food system were par�cularly evident in the crippling effects on the distribu�on of vegetables, dairy, and other agriculture products including cereals and livestock. The disturbance in small-scale planta�on, weeding, crop management, harves�ng, and distribu�on meant that farmers found it difficult to generate sufficient income. Lack of adequate supply of fer�lizers, pes�cides, and seeds due to limited movement and decrease in economic ac�vi�es affected the supply side of the agriculture value chain.

The impact of the pandemic on the value chains of agriculture products posed severe difficul�es for farmers and other stakeholders in managing their cash flow and to address future needs.

Also, it became difficult for them to obtain credit and/or loans at a reasonable rate of interest due to increased risk of default, as depicted in figure 2.

Figure 2: COVID-19 Impacts in Agriculture

C.3.1 Problem Statement

Since the agriculture sector is the largest employer in Nepal, 8 growth in agricultural produc�vity is crucial for both overall GDP growth and poverty reduc�on. Over the past two decades, growth from value-added ac�vi�es, both on and off farm, has been low and highly vola�le from year to year. Many factors contribute to the poor performance of agriculture, including inadequate delivery of technologies and support services to farmers, armed conflict, labor shortages in rural areas, poli�cal instability, limited investment in agriculture from both public and private sectors, and most recently, the coronavirus pandemic. As a result, the agriculture sector has become less compe��ve in both domes�c and export markets. Key problems that need to be addressed to achieve the agricultural transforma�on agenda in Nepal have been

8 h�ps://southasia.ifpri.info/files/2020/10/SYN_2020_Nepal_R3.pdf

7 Bollinger, Catherine. Gender Equality and Social Inclusion Literature Review for Knowledge-Based Integrated Sustainable Agriculture in Nepal (KISAN) II, Global Best Prac�ces, July 2016; Nepal Na�onal and Social Inclusion Report, 2012 https://southasia.ifpri.info/files/2020/10/SYN_2020_Nepal_R3.pdf characterized into two broader cri�cal development constraints: a) those related to investment and growth; and b) those related to the inclusiveness of growth.

C.3.1.1 Cri�cal constraints to investment in agriculture

Weak governance and low capacity of local governments: The major agricultural issues faced by local governments in Nepal’s federalized structure pertain to weak quality of extension services, difficulty in accessing agricultural inputs, lack of market linkages, weak human resource management, and poor coordina�on with the other �ers of government.

Low level of labor produc�vity : While labor produc�vity has a direct impact on the livelihoods of farmers as well as overall GDP 9 , the labor produc�vity in the agriculture sector remains stagnant over the past several years in Nepal. The agricultural value added per worker in Nepal (a measure of produc�vity) is nearly one-fi�h of the global average. This stands in contrast with other developing Asian countries, where labor produc�vity has grown faster. For example, Nepal’s labor produc�vity improved by 3.56 percent year-over-year in December 2019, compared with a growth of 3.33 percent in the previous year 10 .

Inadequate technological innova�ons: Evidence shows that sound and sustained investment in agricultural science and technology is key to increasing agricultural produc�vity, reducing poverty, and fostering economic growth. Farmers’ access to technology, technical knowledge, and ins�tu�onal credit is s�ll severely restricted, par�cularly in the remote parts of Nepal.

Technological change in agriculture since the 1960s has led to only modest improvements in yields of tradi�onal crops. This slow growth in cereal produc�vity reflects slow rates of technological change, such as, slow pace of introduc�on of improved varie�es and other improved agricultural prac�ces. Cereal produc�on of Nepal increased from 3.42 million metric tons in 1969 to 9.93 million metric tons in 2018 growing at an average annual rate of 2.62 percent 11 .

Inadequate infrastructure: The FTF Innova�on Lab for Nutri�on conducted research revealing that roads and bridges are especially important for modera�ng price levels and price vola�lity in Nepal’s rice and wheat markets 12 . Agriculture infrastructure has the poten�al to transform the exis�ng tradi�onal agriculture or subsistence farming into a modern, commercial and dynamic farming system 13 . The common ways that infrastructure typically influences economic growth include lower input costs, improved worker produc�vity, and greater long-term job crea�on 14 .

Agriculture-related infrastructure can be grouped under following categories 15 :

● Input based infrastructure: seed, fer�lizer, pes�cide

15 h�ps://www.adb.org/sites/default/files/linked-documents/cps-nep-2013-2017-ssa-04.pdf

14 h�ps://www.newbusinessage.com/MagazineAr�cles/view/1030

13 h�ps://www.findevgateway.org/sites/default/files/publica�ons/files/mfg-en-paper-infrastructure-for-agriculture-rural-develop ment-in-india-need-for-a-comprehensive-program-adequate-investment-sep-2010.pdf

12 h�ps://agrilinks.org/post/role-markets-and-infrastructure-suppor�ng-sustainable-food-systems

11 h�ps://knoema.com/atlas/Nepal/Cereal-produc�on

10 h�ps://www.ceicdata.com/en/indicator/nepal/labour-produc�vity-growth

9 A Report on Market Data for Private Sector Investments in Nepal Agriculture Sector , Dolma Development Fund and UKAID https://www.adb.org/sites/default/files/linked-documents/cps-nep-2013-2017-ssa-04.pdf https://www.newbusinessage.com/MagazineArticles/view/1030 https://www.findevgateway.org/sites/default/files/publications/files/mfg-en-paper-infrastructure-for-agriculture-rural-development-in-india-need-for-a-comprehensive-program-adequate-investment-sep-2010.pdf https://www.findevgateway.org/sites/default/files/publications/files/mfg-en-paper-infrastructure-for-agriculture-rural-development-in-india-need-for-a-comprehensive-program-adequate-investment-sep-2010.pdf https://agrilinks.org/post/role-markets-and-infrastructure-supporting-sustainable-food-systems https://knoema.com/atlas/Nepal/Cereal-production https://www.ceicdata.com/en/indicator/nepal/labour-productivity-growth https://www.dolmaimpact.com/pdf/DIF%20I-%20Education%20Market%20Report_Final_1-10-2014.pdf

● Farm equipment and machinery

● Resource based infrastructure: road connec�vity, transport, storage, processing, preserva�on

● Ins�tu�onal infrastructure: agriculture research, extension, educa�on technology

While most of the infrastructure development has the cri�cal role of public sector investments to crowd-in private investment in the growth of agriculture, construc�on or building hard infrastructure is not authorized for this Ac�vity. However, the Contractor must coordinate with other donors, GON, and private sector actors to promote investment in infrastructure that strengthens Nepal’s food security.

Low compe��veness: The high costs of doing business drives a lack of compe��veness for Nepali farmers and other entrepreneurs in the food system. Economists say low returns from agriculture is the key reason behind its falling allure among Nepali youth. Internal factors of the low compe��veness of Nepal's agriculture sector are poor infrastructure development, a slow rate of technology transfer, and policy constraints on private sector investment. 16 Among marginalized popula�ons, a lack of inclusion in market systems compounds and exacerbates these constraints.

C.3.1.2 Cri�cal constraints to inclusiveness of growth

While a lack of lucra�ve employment opportuni�es sets the stage for high rates of poverty, unequal access to opportuni�es is also a key contribu�ng factor. Lack of inclusion in the agriculture sector also limits efforts to improve agricultural produc�vity.

Opportuni�es to improve agricultural produc�vity are unequally distributed : The three important determinants of agricultural performance are access to land; access to inputs; and ability to commercialize and diversify agricultural ac�vity, i.e., move away from subsistence agriculture. In Nepal, the combina�on of subsistence agriculture from small landholdings and unequal access to irriga�on undermines agricultural produc�vity for certain groups of the popula�on, par�cularly the poorest. Despite some improvement in recent years, access to key inputs such as improved seeds and fer�lizers also remains unequal. Agricultural diversifica�on remains limited; cereals con�nue to dominate Nepalese agriculture as the main agricultural product for most households.

Availability of nonagricultural employment opportuni�es is concentrated in main urban centers :

While self-employed agricultural ac�vi�es provide employment for many Nepali workers, there is a significant varia�on in occupa�ons across the country. In terms of geography, for instance, nonagricultural employment opportuni�es are much more available in Kathmandu and, to a lesser extent, in rural areas including in other urban areas. For agricultural transforma�on to be successful, more people in rural areas will need to find new ways to overcome geographic and

16 h�ps://kathmandupost.com/money/2021/06/29/nepal-wants-to-be-an-agriculture-driven-economy-but-future-of-the-sector-i s-in-crisis , h�ps://www.mdpi.com/2077-0472/10/5/143 https://kathmandupost.com/money/2021/06/29/nepal-wants-to-be-an-agriculture-driven-economy-but-future-of-the-sector-is-in-crisis https://kathmandupost.com/money/2021/06/29/nepal-wants-to-be-an-agriculture-driven-economy-but-future-of-the-sector-is-in-crisis https://www.mdpi.com/2077-0472/10/5/143 social exclusion to access diverse sources of income, including through agribusiness and non-agricultural employment opportuni�es.

C.3.1.3 Country readiness for agricultural transforma�on

There are a number of opportuni�es for achieving agricultural transforma�on in Nepal including posi�ve food and agriculture supply and demand prospects, the emerging poli�cal commitment for change and transforma�on, the emerging global convergence around key transforma�on goals, and evidence on Nepal’s own encouraging agricultural performance over the past few years. Nepal can convert these opportuni�es into tangible possibili�es. In general, factors such as business enabling environment, sufficient storage infrastructure, the country’s agricultural investment plan, consulta�on processes among the key stakeholders and effec�ve coordina�on mechanism at the sub-na�onal level, are assessed to determine the country’s readiness for transforma�on. Figure 17 3 below explains Nepal’s readiness for agricultural transforma�on.

Figure 3: Country readiness for the agricultural transforma�on

17 Budget for 2075/76 to 2077/78 -h�ps://www.investopaper.com/news/budget-for-agriculture-nepal/#:~:text=The%20government%20allocated%20Rs%2034.80, billion%20or%20about%2019%20percent .

https://www.investopaper.com/news/budget-for-agriculture-nepal/#:~:text=The%20government%20allocated%20Rs%2034.80,billion%20or%20about%2019%20percent https://www.investopaper.com/news/budget-for-agriculture-nepal/#:~:text=The%20government%20allocated%20Rs%2034.80,billion%20or%20about%2019%20percent https://www.investopaper.com/news/budget-for-agriculture-nepal/#:~:text=The%20government%20allocated%20Rs%2034.80,billion%20or%20about%2019%20percent

C.3.2 Rela�on to USAID’s Strategy

Consistent with USAID’s Country Development Coopera�on Strategy (CDCS 18 ) which aims to help Nepal become a self-reliant, prosperous, and inclusive na�on, this Ac�vity will contribute to the achievement of USAID/Nepal’s CDCS Development Objec�ve 2: Broad-based and inclusive economic growth fostered, and specifically to Intermediate Result (IR) 2.1: Inclusive, private sector driven growth in agriculture promoted; IR 2.3: Economic Governance & Business Enabling Environment Improved; and IR 2.4: Marginalized Communi�es Integrated into Market Systems.

The broader theory of change for agricultural transforma�on in Nepal, which extends beyond the scope of this Ac�vity, demonstrates alignment with USAID’s strategic approach for broad-based and inclusive economic growth. It follows the logic that as farm produc�vity is improved through technological advancement and efficiency, larger markets will be served, agro-processing industries will expand, and many farmers and farm laborers will be driven to seek off-farm employment that offers be�er economic opportuni�es. Concurrently, as the agriculture sector becomes more efficient and less labor-intensive, labor will be freed up and absorbed into off-farm and non-agricultural sectors of the economy, while USAID, other development partners, and the private sector will increasingly invest in other produc�ve sectors of the economy, allowing the manufacturing and service sectors to grow rapidly. USAID will ensure that this Ac�vity focuses on enhancing the par�cipa�on of women, youth, and marginalized popula�ons in formal economic ac�vi�es and suppor�ng the formula�on and implementa�on of gender sensi�ve and socially inclusive economic laws and policies so that the resul�ng structural transforma�on will accelerate USAID’s CDCS development objec�ve to foster broad-based and inclusive economic growth.

To achieve these higher level goals, the CDCS draws on federalism , inclusion , and resilience as key strategies. The table below iden�fies how they will be incorporated into the ac�vity. (table 1).

18 h�ps://www.usaid.gov/nepal/cdcs https://www.usaid.gov/nepal/cdcs

Table 1: CDCS priori�es for federalism, inclusiveness and resilience

Federalism Inclusion Resilience

● Hold all 3 �ers of government accountable for service delivery.

● Impart capacity building for the officials across the �ers.

● Leverage resource contribu�ons from the 3 �ers.

● Provide context specific services, informa�on, and access to resources for the diverse women, youth and marginalized groups

(WYM).

● Facilitate partnerships with private sector, GON, civil society and all value chain actors to strengthen the ability for WYM to engage.

● Build economic resilience by engaging the private sector.

● Create job opportuni�es for rural youth to reduce migra�on.

● Promote climate resilient technologies for increasing on-farm and off-farm produc�vity, while promo�ng climate change adapta�on and mi�ga�on.

C.3.3 Alignment with GON’s strategy

Feed the Future Nepal USAID Agricultural Transforma�on must contribute to GON’s priority to transi�on from the Least Developed Country category to Middle Income Developed category by 2026 19 .

This Ac�vity must contribute to the GON’s long-term vision for agricultural development as expressed in the Agriculture Development Strategy 2015-2035 20 (by advancing each of the four outcome areas that comprise the strategy: Governance, Produc�vity, Compe��veness, and Profitable Commercializa�on. This Ac�vity will build the strategic partnership with the government at all three �ers. In doing so, it will build their capacity to replicate business models and best prac�ces that promote agricultural transforma�on, a central goal of GON’s agricultural development agenda.

C.3.4 Alignment with USAID Nepal Feed The Future (FTF) Strategy

The U.S. Government supports Nepal’s efforts to improve food security and nutri�on through the FTF ini�a�ve. Guided by the U.S. Government’s Global Food Security Strategy (GFSS), FTF interven�ons in Nepal seek to strengthen the role of smallholder farmers, marginalized, and excluded popula�ons in market systems. This ac�vity will complement FTF ac�vi�es and contribute to the GFSS Country Plan 21 for Nepal by directly addressing Objec�ve 1: Inclusive and sustainable agriculture-led economic growth and Objec�ve 2: Strengthened resilience among

21 h�ps://www.feedthefuture.gov/resource/global-food-security-strategy-gfss-nepal-country-plan/

20 Agriculture Development Strategy 2015-2035: h�ps://faolex.fao.org/docs/pdf/nep171433.pdf .

19 On November 25, 2021, the 40th plenary mee�ng of the 76th Session ofUnited Na�ons General Assembly (UNGA) endorsed the proposal to graduate Nepal to the status of a middle-income developing na�on from the category of least developed country (LDC) by 2026 -h�ps://thehimalayan�mes.com/nepal/unga-endorses-proposal-to-graduate-nepal-to-middle-income-developing-country https://www.feedthefuture.gov/resource/global-food-security-strategy-gfss-nepal-country-plan/ https://faolex.fao.org/docs/pdf/nep171433.pdf https://thehimalayantimes.com/nepal/unga-endorses-proposal-to-graduate-nepal-to-middle-income-developing-country people and systems. Once a new GFSS Country Plan is in place, the Contractor must ensure strategic support and alignment with that new Plan.

C.3.5 Program linkage

C.3.5.1 Rela�onship to Other FTF Ac�vi�es

FTF investments in Nepal represent a diverse por�olio focused on strengthening value chains for high-value vegetables, len�ls, maize, rice, and goats. Current USAID FTF ac�vi�es include Knowledge-based Integrated Sustainable Agriculture in Nepal (KISAN II), 22 Nepal Seed and Fer�lizer (NSAF), 23 USAID Agricultural Inputs, USAID Agriculture Higher Educa�on, USAID Trade and Compe��veness, Peace Corps Volunteer Small Project Assistance program, USAID Len�l Strengthening, and the Cereal Systems Ini�a�ve for South Asia (CSISA) Covid Response and Recovery Ac�vity. 24 USAID/Washington also funds mul�ple agriculture ac�vi�es that work in Nepal, including but not limited to Farmer-to-Farmer and several FTF Innova�on Labs. The Contractor must coordinate closely with all USAID FTF and related ac�vi�es opera�ng in Nepal.

This includes regional and centrally-managed FTF ac�vi�es like the FTF Innova�on Labs discussed in the SOW, as well as future FTF ac�vi�es that will be awarded over the life of Feed the Future Nepal USAID Agricultural Transforma�on.

C.3.5.2 Rela�onship to Other U.S. Government Ac�vi�es

USAID/Nepal has various other relevant ac�vi�es beyond the FTF por�olio. The Contractor must coordinate with these ac�vi�es to achieve the USAID/Nepal CDCS goal. The Contractor, therefore, must also develop value chain produc�on, marke�ng, strengthening approaches in close coordina�on with ac�vi�es such as the Karnali Water Ac�vity, the upcoming integrated nutri�on ac�vity, and USAID’s biodiversity and climate change ac�vi�es, like USAID Biodiversity.

Feed the Future Nepal USAID Agricultural Transforma�on aligns with the U.S. Government’s Indo-Pacific Strategy by helping to foster a more prosperous Nepal.

C.3.5.3 Rela�onship to Other GON Ac�vi�es

With a total budget of NPR 130 billion (approximately $1.0 billion) for 10 years (2016-2026), the Prime Minister Agricultural Moderniza�on Project (PMAMP) is a flagship project of the Ministry of Agriculture and Livestock Development (MOALD) with the objec�ve of boos�ng agricultural produc�vity and improvement of agriculture value chains products through enhanced produc�vity and commercializa�on of major cereals, fisheries, fruits and vegetables. The PMAMP has laid out a structure of super zones (commercial areas of more than 1,000 ha), zones (areas over 500 ha), blocks (over 50 ha), and pockets (over 10 ha), which are defined areas across the country that receive government support to produce selected crops intensively.

Among the programs implemented by MOALD, with the support of other donor partners, are the Agricultural Sector Development Program and the Value Chains for Inclusive Transforma�on

24 h�ps://csisa.org/csisa-nepal/

23 h�ps://2017-2020.usaid.gov/nepal/fact-sheets/feed-future-seed-and-fer�lizer-project

22 h�ps://www.usaid.gov/nepal/fact-sheets/kisan-project https://csisa.org/csisa-nepal/ https://2017-2020.usaid.gov/sites/default/files/documents/1861/Nepal_Seed-and-Fertilizer-Fact-Sheet_FINAL.pdf https://www.usaid.gov/nepal/fact-sheets/kisan-project of Agriculture Program, both IFAD funded; the World Bank managed Food and Nutri�onal Security Project; the World Bank funded Rural Enterprise and Economic Development Project;

Support market linkages and suppor�ng entrepreneurship ecosystem; and the Rani Jamara Kulariya Project.

C.3.5.4 Coordina�on with GON

FTF ac�vi�es have established an excep�onally good rela�onship with the GON at all three �ers.

The Contractor must maintain equally respec�ul and highly func�onal rela�onships with public and private sector stakeholders to achieve its goal of transforming agriculture.

In line with close coordina�on and working rela�ons between past and ongoing FTF ac�vi�es and officials working under MOALD at the federal and sub-na�onal level, higher authori�es in the GON have expressed their desire to con�nue such a rela�onship. Further, there is interest shown by high level ministry officials to develop strategic partnerships with USAID’s FTF ac�vi�es. The Contractor must par�cipate in the three stages of MOALD's program cycle:

developing the annual work plan, repor�ng on progress every four months, and annual project review.

C.4 GEOGRAPHIC FOCUS, TARGET POPULATION, AND COMMODITY FOCUS

Commodity selec�on: The Contractor must focus ini�al efforts on the fine rice, 25 industrial maize, len�l, high-value vegetables, and goat value chains, while analyzing and adding commodi�es based on relevance to priori�es of local governments, market opportuni�es, and poten�al for growth, compe��veness, and income-genera�on for smallholder farmers. In addi�on, the Contractor must consider commodi�es that lend themselves to inclusion of women, youth, and marginalized groups for income genera�on and job crea�on. With respect to commodity selec�on and focus, the Contractor must take into considera�on the poten�al for private sector investment in each value chain as well as the suitability for the adop�on of climate-smart prac�ces in the produc�on of those commodi�es. If USAID redefines strategic priority value chains in a new itera�on of the GFSS Nepal Country Plan, the Contractor must modify their targeted commodi�es accordingly.

Geographic focus: The GFSS Nepal Country Plan iden�fies a Zone of Influence (ZOI) for implementa�on of all FTF ac�vi�es. Based on a targe�ng approach that combines metrics of the opportunity for agriculture led growth, combined with the incidence of poverty, hunger, malnutri�on, and food insecurity, the Contractor must focus on the below loca�ons for implementa�on of this Ac�vity:

25 Cul�va�on of fine rice varie�es leads to greater economic viability to cater to the increasing demand for fine rice. The area under domes�c produc�on for fine and aroma�c rice varie�es comprises only 17% of the total paddy area.