FTF Cam Ag Partnership Hub_72044221R00008_Sol_Amendment 01.pdf

Offers must acknowledge receipt of this amendment prior to the hour and date specified in the solicitation or as amended, by one of the following methods:

(a) By completing items 8 and 15, and returning or (c) By separate letter or electronic communication which includes a reference to the solicitation and amendment numbers. FAILURE OF YOUR ACKNOWLEDGMENT TO BE RECEIVED AT THE PLACE DESIGNATED FOR THE RECEIPT OF OFFERS PRIOR TO THE HOUR AND DATE SPECIFIED MAY RESULT IN REJECTION OF YOUR OFFER. If by virtue of this amendment you desire to change an offer already submitted, such change may be made by letter or electronic communication, provided each letter or electronic communication makes reference to the solicitation and this amendment, and is received prior to the opening hour and date specified.

E. IMPORTANT: Contractor is not is required to sign this document and return copies to the issuing office.

AMENDMENT OF SOLICITATION/MODIFICATION OF CONTRACT 1. CONTRACT ID CODE

2. AMENDMENT/MODIFICATION NUMBER 3. EFFECTIVE DATE 4. REQUISITION/PURCHASE REQUISITION NUMBER 5. PROJECT NUMBER (If applicable)

7. ADMINISTERED BY (If other than Item 6) CODE

STANDARD FORM 30 (REV. 11/2016)

Prescribed by GSA FAR (48 CFR) 53.243

FACILITY CODE

9A. AMENDMENT OF SOLICITATION NUMBER

9B. DATED (SEE ITEM 11)

10A. MODIFICATION OF CONTRACT/ORDER NUMBER

10B. DATED (SEE ITEM 13)

11. THIS ITEM ONLY APPLIES TO AMENDMENTS OF SOLICITATIONS

The above numbered solicitation is amended as set forth in Item 14. The hour and date specified for receipt of Offers is extended. is not extended.

12. ACCOUNTING AND APPROPRIATION DATA (If required) copies of the amendment; (b) By acknowledging receipt of this amendment on each copy of the offer submitted;

13. THIS ITEM APPLIES ONLY TO MODIFICATIONS OF CONTRACTS/ORDERS.

IT MODIFIES THE CONTRACT/ORDER NUMBER AS DESCRIBED IN ITEM 14.

CHECK ONE A. THIS CHANGE ORDER IS ISSUED PURSUANT TO: (Specify authority) THE CHANGES SET FORTH IN ITEM 14 ARE MADE IN THE CONTRACT ORDER

NUMBER IN ITEM 10A.

B. THE ABOVE NUMBERED CONTRACT/ORDER IS MODIFIED TO REFLECT THE ADMINISTRATIVE CHANGES (such as changes in paying office, appropriation data, etc.) SET FORTH IN ITEM 14, PURSUANT TO THE AUTHORITY OF FAR 43.103(b).

C. THIS SUPPLEMENTAL AGREEMENT IS ENTERED INTO PURSUANT TO AUTHORITY OF:

D. OTHER (Specify type of modification and authority)

Except as provided herein, all terms and conditions of the document referenced in Item 9A or 10A, as heretofore changed, remains unchanged and in full force and effect.

15C. DATE SIGNED

15A. NAME AND TITLE OF SIGNER (Type or print)

16C. DATE SIGNED

16A. NAME AND TITLE OF CONTRACTING OFFICER (Type or print)

14. DESCRIPTION OF AMENDMENT/MODIFICATION (Organized by UCF section headings, including solicitation/contract subject matter where feasible.)

PAGE OF PAGES

6. ISSUED BY CODE

8. NAME AND ADDRESS OF CONTRACTOR (Number, street, county, State and ZIP Code) (X)

CODE

15B. CONTRACTOR/OFFEROR

(Signature of person authorized to sign)

16B. UNITED STATES OF AMERICA

(Signature of Contracting Officer)

Previous edition unusable

RFP No. 72044221R00008 Amendment No. 01

Feed the Future Cambodia Agriculture Partnership Hub

Specifically, this solicitation is amended as follows:

SECTION L - INSTRUCTIONS, CONDITIONS, AND NOTICES TO OFFERORS

1) In Section L.8.1 Organization of the Technical Proposal, DELETE the following bullets:

• “Resumes and Biographical Data Sheets for Key Personnel (not included in page limitation)

• Contractor Past Performance Information (not included in page limitation)”

2) In Section L.8.3.4, DELETE “and Biographical Data Sheets” from the section heading. The section heading will read as “L.8.3.4 Resumes for Key Personnel”

3) In Section L.8.3.4 Resumes for Key Personnel, DELETE the following sentences from the first paragraph:

“and biographical data sheet (Form AID 1420-17) as provided in attachment 6 for the individual in accordance with AIDAR 752.7001. The biographical data form must be properly completed, certified and signed by both individual and Offeror in the appropriate spaces with all blocks completed, as appropriate. Proposed rates must be indicated as gross salary”

4) In Section L.8.3.6 Technical Proposal Annexes, bullet (4), DELETE “Biographical Data Sheets” and INSERT “signed letters of commitment”.

5) In Section L.9, Part 2 – Proposed Costs/Prices, bullet (2) Direct Labor Salary and Wages, ADD the following paragraph after the first paragraph:

“Completed biographical data sheets, Form AID 1420-17 (see Attachment 6) must be provided for all proposed personnel in accordance with AIDAR 752.7001. Bio-data forms must be properly completed, certified and signed by both individual and Offeror in the appropriate spaces with all blocks completed, as appropriate. Proposed rates must be indicated as gross salary”.

6) In Section L.9, Part 2 – Proposed Costs/Prices, bullet (7) Training, DELETE the following from the paragraph:

• “and ADS 253”

• “and training in development”.

7) In Section L.9, Part 4 – Policies and Procedures, DELETE “subcontractors” and INSERT “major subcontractors”.

[END OF AMENDMENT NO. 01]

Feed the Future Cambodia Agriculture Partnership Hub

ANNEX 1: QUESTIONS AND ANSWERS

1) Question: For budgeting purposes, could USAID please provide an anticipated start date of the activity?

Answer: USAID/Cambodia anticipates awarding this contract in the second or third quarter of the U.S. Government Fiscal Year 2022.

2) Question: Considering the first paragraph denotes “The United States Agency for International Development (USAID) in Cambodia is seeking proposals from U.S. or non- U.S. non-profit or for-profit organizations”, we understand that the acquisition mechanism is Free and Open – meaning all/any organizations from any country can apply. Could you please confirm that this sentence does not limit the competition to only American and local Cambodian non-profit or for-profit organizations, but rather that USAID is requesting proposals from all/any organizations, from all/any country (except for those banned)?

Answer: This procurement is conducted under full and open competition procedures, pursuant to FAR Part 15.

3) Question: On the application of Geographic Code 937: Could you please confirm that the source and nationality restriction for acquisition of goods and services, as defined by Geographic Code 937, only apply once/after the activity is awarded and not to the selection of Prime or Sub (meaning, it does not restrict eligibility of Primes or Subs to only American or Cambodian/local firms)?

Answer: The authorized geographic code is 937. Source and Nationality requirements will be considered in accordance with the RFP requirements and other applicable law and regulations set forth in ADS 310 and 2 CFR. For information regarding the authorized geographic code, please see https://www.usaid.gov/ads/policy/300/310.

4) Question: Can USAID please ensure that the most recent reports (quarterly progress reports, annual work plans, etc.) for the programs listed in section C.5 (pgs. 18 – 19) are uploaded to the DEC?

Answer: The implementing partners are responsible for adhering to the terms and conditions of awards, including submission of deliverables to USAID’s Development Experience Clearinghouse (DEC).

5) Question: Page 22, Section C.9. Performance Objectives and Intermediate Results list two objectives and their corresponding IRs for the activity. Would USAID please consider eliminating IR 1.3 “Increased incomes especially for women and youth in the food system, including in climate-smart agriculture” since activities that would fall under this IR would be redundant of activities that would fall under IRs 1.1 and 1.2? Further, indicator EG 3.2-26 “Value of annual sales of producers and firms receiving USG assistance” will be used to measure the impact of activities conducted under IRs 1.1. and 1.2.

Answer: No.

https://www.usaid.gov/ads/policy/300/310

Feed the Future Cambodia Agriculture Partnership Hub

6) Question: Page 23, C.9 Performance Objectives and Intermediate Results – IR 2.1. To avoid possible confusion, could USAID clarify the wording of IR 2.1? Would it be correct to read this IR as:

“IR 2.1. Increased access, including for women- and youth-owned businesses, to agricultural product markets and market services.”

Answer: No.

7) Question: Page 23, C.9 Performance Objectives and Intermediate Results – IR2.2. The wording of this IR refers to “innovative technologies,” however the paragraph under the IR refers to innovative technologies “and services.” To avoid confusion, would USAID consider adding “and services” to the IR itself? The revised IR would read:

“IR 2.2: Improved food safety, quality, and traceability of agricultural products through the increased use of innovative technologies and services.”

Answer: No.

8) Question: Page 23, Section C.11, Grants under Contract (GUC) states that “the Contractor will establish a grant-making facility to strengthen the productivity and competitiveness of the Cambodian agriculture sector, including farms and firms.”

Rather than strictly grants for this facility, would USAID please consider allowing up to $10 million in pay-for-results grants and subcontracts, to allow Contractors flexibility to align with their technical approaches? For the majority of investments, the grants mechanism would work, but there may be opportunities where an acquisition mechanism would be more appropriate, depending on the scope of work required.

Answer: No. In addition to the $10 million in grants under contract, the offeror may propose subcontracts.

9) Question: Page 23, Section C.11 states that the Contractor will establish a facility that funds “non-sovereign entities,” which appears to exclude partner government entities. However, page 71, Section H.20, Grants Under Contract Bullet 2 appears to contradict this, as it states that “any Grants provided to partner government entities will be solely in-kind grants, technical assistance, and other activities provided to or on behalf of the partner government entity; no funds to partner government entities will be provided.”

Would USAID please confirm that sovereign entities (government) are not eligible for grants under this award?

Answer: Grants to prospective partner government entities in the form of in-kind grants, technical assistance, or other activities provided to or on behalf of the partner government entities, to ensure the achievement of the overall goal and objectives of the project, are authorized in accordance with ADS 302.3.4.13.

Feed the Future Cambodia Agriculture Partnership Hub

10) Question: Would USAID please provide guidance on the grant facility? Are grants the preferred engagement mechanism with all stakeholders in Cambodia or would USAID be receptive to alternative funding mechanisms depending on the offeror’s technical approach?

Answer: In addition to the $10 million in grants under contract facility, the offeror may propose additional alternative funding mechanisms they believe are required within their technical approach.

11) Question: Page 27, Section D.2 Branding Strategy states “Feed the Future Cambodia Agriculture Partnership Hub” is the name of this activity. This name complies with the requirements outlined in “Feed the Future Graphic and Naming Standards Manual”. There will be no acronym of this title”.

To allow Offerors to maximize the use of space in the Technical Proposal, would USAID please allow using an acronym of the title?

Answer: For the purpose of the proposal, the offeror may opt to use an acronym of the activity name. However, any referenced acronyms must be spelled out in the acronym list.

12) Question: Would USAID consider extending the Rapid Mobilization Plan deadline from 15 days after award to 30 days after award?

Answer: No.

13) Question: On page 39, the RFP states: “The GAP must be accompanied by and based on a Gender Analysis to be conducted by the Contractor. The gender analysis should be built off from the Feed the Future Cambodia Agriculture Partnership Hub’s internal gender analysis (to be shared by the COR) and must be prepared in accordance with the USAID Automated Directives System (ADS) 205.” Could USAID please clarify if there is an existing Gender Analysis that will be shared by the COR? If so, could USAID share the analysis with bidders at the proposal stage?

Answer: The internal gender analysis will be shared by the COR with the Contractor after award.

14) Question: On section H.4, page 52, would USAID consider revising the geographic code to 935? The current geographic code of 937 will make it difficult for the Activity to form partnerships with private sector actors from nearby countries (Singapore, Thailand, etc.) who may be interested in expanding to Cambodia or investing in the Cambodian agriculture sector but are not yet registered in the country.

Answer: No.

15) Question: Can USAID confirm if Section H.16 Privacy and Security Information Technology Systems Incident Reporting (April 2018) on page 60 and Section I.3 FAR 52.204-21 Basic Safeguarding of Covered Contractor Information System on page 81 are

Feed the Future Cambodia Agriculture Partnership Hub applicable to the work to be performed? If not applicable, can USAID issue an amendment to remove these clauses from the RFP?

Answer: Yes, they are applicable to this contract.

16) Question: Page 71, Section H.20, Grants Under Contract, Section H.20 states that “the Contractor will develop and execute a grants program in accordance with ADS 302. ADS 302.3.4.13.c.1, Award Amount Threshold, states that “the total value of an individual grant to a US NGO must not exceed the Simplified Acquisition Threshold (SAT),” which is currently $250,000. Moreover, Bullet 3 of Section H.20 states “the Contractor is authorized to award grants up to $500,000 each to US non-governmental organizations and US private sector businesses under this Contract.”

Would USAID please confirm if Bullet 3 authorizes the Contractor to issue GUCs to US private sector businesses up to $500,000?

Answer: Yes. The Contractor is authorized to award up to $500,000 each to U.S. non-governmental organizations and U.S. private sector businesses under this contract.

17) Question: Page 85, I.8. FAR 52.229-8 Taxes. Subsection (a) of this clause discusses allowability of taxes. Our tax advisors have advised us to pay VAT on grants to tax-registered entities. Could USAID please confirm that VAT will be an allowable cost? Could USAID explain the impact on the contract budget when the Royal Government of Cambodia directly reimburses USAID for the VAT? For example, will USAID return this money to the contract via an administrative modification?

Answer: USAID/Cambodia has in place a process to collect refunds for VAT paid by our implementing partners (IPs) on behalf of the IPs regardless of the types of implementing instruments (acquisition or assistance). For this arrangement, the IPs are responsible to track and submit the Quarterly VAT Report along with the original VAT invoices paid for the USAID-funded project/activities to USAID. USAID/Cambodia reimburses IPs for the VAT amount paid by the IPs, but the IPs should establish measures to ensure that all VAT invoices are submitted to USAID for this refund purpose to avoid potential disallowance of the incurring VAT cost. In procuring goods or services that are subject to VAT charges, the IPs should ensure the two things below:

1) The suppliers/vendors are registered with the General Department of Taxation (GDT) with Tax Identification Number (TIN), and

2) the appropriate tax invoices are issued for the purchase(s)

As USAID/Cambodia receives the VAT refund from the GDT, USAID will credit the expenditure/disbursement amount of the contract/agreement by the VAT refunded amount.

There will be no administrative modification for this VAT refund. Instead, USAID will notify IPs via letter for the refunded VAT amount so the IPs can make appropriate internal adjustment to the expenditure/disbursement. This refund will reduce expenditure/disbursement and increase the available funds under the contract/agreement by

Feed the Future Cambodia Agriculture Partnership Hub the actual VAT-refunded amount, but the refund does not change the total estimated cost or the total obligated amount for the contract/agreement.

18) Question: The RFP (Section L.7, page 124) places the onus for ensuring USAID’s timely receipt of proposals on the Offeror. Thus, would USAID please provide a telephone number that Offerors may call to confirm receipt in the event that a “read receipt” or other electronic acknowledgement is not received shortly before the closing date and time?

Answer: USAID/Cambodia Office can be reached at telephone number (855) 23-728-000.

However, only email communications with the contacts provided in the solicitation will be considered official.

19) Question: Please confirm that pertinent information may be added to the required email subject line given in Section L.7 (page 124), such as: Offeror’s name; indication whether the message applies to the technical or cost volume, and information about how multi-part proposals should be assembled (i.e., Cost Volume, Part X of Y).

Answer: Confirmed.

20) Question: Page 124-125, L.8.1 Organization of Technical Proposal. This section lists the order of proposal sections. To avoid duplication, would USAID agree to drop 1) Resumes and Biographical Data Sheets for Key Personnel and 2) Contractor Past Performance Information from this list since they are included as annexes according to Section L.8.3.6 Technical Proposal Annexes on page 129?

Answer: Yes. Please see specific changes in amendment 01 to the solicitation.

21) Question: On section L.8.3.4, page 127, Resumes and Biographical Data Sheets for Key Personnel is listed as part of the body of the technical application not counting towards the page limit. However, on section L.8.3.6, page 130, the RFP lists Resume and Biographical Data Sheets for Key Personnel as an annex. Can USAID please confirm that Resumes and Biodata Sheets should be included as an annex and not within the technical proposal?

Answer: Please see answer to question 20.

22) Question: The RFP refers to Resumes and Biographical Data Sheets of Key Personnel both as “substantial elements of the proposal” (Section L.8.1, page 124 and L.8.3.4, page 127) and as an Annex (L.8.3.6, page 130). Please confirm that resumes should be submitted under Technical Annex 4.

Answer: Yes. Please see answer to question 20.

23) Question: Page 125, Section L.8.1 and page 130, Section L.8.3.6. These sections refer to inclusion of Biographical Data Sheets in the technical proposal and annexes. However, would USAID not agree that Biographical Data Sheets should appear only in the cost/business proposal?

Feed the Future Cambodia Agriculture Partnership Hub

Answer: The biographical data sheets for key personnel will be submitted with the cost proposal. Please see specific changes in amendment 01 to the solicitation.

24) Question: Sections L.8.1 and L.8.3.4 of the RFP (pages 124 and 127) both refer to Employee Biographical Data Sheets being submitted as part of the Technical Volume; however, the instructions on page 127 state “Proposed rates must be indicated as gross salary.” To comply with the requirement that technical proposals NOT make reference to pricing data (Section L.7, page 124), please confirm that biodata sheets should be submitted within Part 2 of the Cost Volume.

Answer: Yes. Please see answer to question 23.

25) Question: Page 130, Section L.8.3.6 Technical Proposal Annexes, Annex 4 requires Biographical Data Sheets for Key Personnel.

a. Would USAID please confirm that only CVs are required in this annex, and Biographical Data Sheets can be included in the Cost Proposal as they contain budget/cost information?

b. If so, please revise Section L.8.3.6, Technical Proposal Annexes accordingly.

Answer: Please see answer to question 23 and the specific changes in amendment 01 to the solicitation.

26) Question: Page 125, L.8.2 Page Limitations. USAID states that text in tables, graphics, charts, graphs, etc. may be smaller than 12 points in size but must be legible. Can USAID confirm that offerors can also use any font style for tables, graphics, charts, and graphs?

Answer: No. Font style must be Times New Roman.

27) Question: Page 125, Section L.8.2 Page Limitation states “The text in any text boxes included within the technical proposal must be Times New Roman font not less than 12 points in size…Text in tables, graphics, charts, graphs, etc. may be smaller than 12 points in size, but must be legible.”

Would USAID please reconsider the font size for text boxes in the technical proposal and allow smaller than Times New Roman 12 points in size (10 points for example), but legible?

Answer: No.

28) Question: The instructions in Section L.8.3.2 (page 126) for Factor 2, Part 2 state (in part) "The Offeror will describe the roles for proposed staff…with defined lines of management, supervisory authority, and technical responsibility.” Given the page limitations in the RFP and the fact that this information complements the organizational chart, would USAID consider adding this Roles & Responsibilities Table to Annex 1?

Answer: No.

Feed the Future Cambodia Agriculture Partnership Hub

29) Question: Please confirm that Letters of Commitment (required under Section L.8.3.4) should be included in Technical Proposal Annex 4, following each Key Personnel candidate’s 3-page resume and 1-page professional reference listing.

Answer: The Letters of Commitment are included in the Technical Proposal Annex 4 and not included in the 3-page limit on each resume. The professional references will be included in the 3-page limit on each resume. Please see specific changes in amendment 01 to the solicitation.

30) Question: Please confirm that all information requested in response to Section L.8.3.5 (Factor 4, Contractor Past Performance Information) should be placed in Technical Annex 5.

Answer: Yes. The Contractor Past Performance Information must be placed under the Technical Proposal Annexes and in accordance with the requirements set forth in Section L.8.3.5.

31) Question: Page 130, Section L.8.3.6 Technical Proposal Annexes, Annex 3 requires four pages for key personnel position descriptions. Page 126, Section L.8.3.2 Part 2 – Staffing Plan requires Offerors to “describe roles for proposed staff….”

a. To allow Offerors to maximize the use of space within the page limits of the Technical Proposal Annex 3, would USAID please confirm that Annex 3 should include roles and responsibilities of both key and non-key personnel, with a summary, included in Part 2 – Staffing Plan?

b. If so, would USAID please revise Annex 3 to “Roles and Responsibilities of the Key and Non-Key Personnel Positions”, accordingly?

Answer: The Technical Proposal Annex 3 is specific to key personnel positions.

32) Question: Under L.9 Instructions for the Preparation of Cost Proposal #7 Training (page

132) there is a reference to ADS 253 Participant Training, this ADS has been archived/removed by USAID. Can USAID please clarify this instruction or issue an amendment to remove this reference from the RFP?

Answer: A reference to ADS 253 is removed in amendment 01 to the solicitation.

33) Question: Section L.9, page 133 states “Offerors should therefore include, as part of their proposal, their approach to achieving environmental compliance and management, to include: The Offeror’s approach to implementing the conditions of the IEE. The Offeror’s approach to providing necessary environmental management expertise for the activity.”

There is no reference to this requirement in Section L.8; please confirm that an environmental compliance narrative is not required.

Answer: This refers to the Offerors description within its cost narrative that aligns with its proposed costs for implementing the conditions of the IEE. No environmental compliance narrative is required in the technical proposal. It should be noted that the Offeror may reflect

Feed the Future Cambodia Agriculture Partnership Hub costs associated with environmental compliance in other cost elements as long as the requirement is appropriately budgeted for.

34) Question: On section L.9, Part 2.11, page 133, the RFP requires the Offeror to include their approach to achieving environmental compliance and management. Can USAID please confirm that this is to be addressed in the narrative of the cost proposal and not as an annex to the technical proposal?

Answer: Yes. Please see answer to question 33.

35) Question: On section L.9, Part 4, page 137, the RFP requires submission of the Offeror’s policies and procedures if the Offeror and/or subcontractors do not have prior Federal contracting experience. Can USAID:

a. Clarify that this requirement applies to major subcontractors only or to all subcontractors named in the proposal? If it is required for all subcontractors, would USAID consider revising this requirement to apply only to those engaged under cost-type subcontracts?

b. Confirm that the Offeror must submit policies only for the organization that does not have prior Federal contracting experience?

Answer: This requirement applies to offerors and/or major subcontractors who do not have prior Federal contracting experience regardless of types of award instruments. Please see specific changes in amendment 01 to the solicitation.

36) Question: On section L.9, Part 5, page 137, the RFP requires submission of information concerning Work-Day, Work-Week, and Paid Absences for all proposed subcontractors. Can USAID please consider requiring this for major subcontractors only?

Answer: No.

37) Question: On section L.9, Part 9, page 138, the RFP requires Offerors to address the elements of FAR 44.202-2 for all proposed subcontractors to be considered for consent to subcontract. Can USAID please confirm whether consent is to be requested for major subcontractors only?

Answer: No. This requirement applies to all proposed subcontractors.

38) Question: On section L.9, Part 10, page 138, the RFP requires Offerors to provide legislative reporting information for the Offeror and subcontractors. Can USAID please confirm whether this information is required for major subcontractors only?

Answer: This requirement applies to the Offeror and each anticipated subcontract of $100,000 or more to a U.S organization.

39) Question: Does USAID anticipate transfer of any government property that might impact offerors cost proposals, such as vehicles or motorcycles in good condition? If so, can USAID provide a list of said property?

Feed the Future Cambodia Agriculture Partnership Hub

Answer: USAID/Cambodia does not anticipate transferring any government property under this contract.

40) Question: Please confirm that divider pages will not count against the page limit for the technical proposal.

Answer: Dividers, if any, are not included in the 15-page limitation.

41) Question: We understand that fee on GUCs is permissible. Would USAID please provide guidance on any applicable fee ceiling on GUCs?

Answer: There is no fee ceiling on GUCs for this contract. The Offerors are to use their judgement when determining the appropriate fixed fee on GUCs.

42) Question: Would USAID please confirm if Attachment 4 – Local Compensation Plan Pay Ranges is stated in daily or annual gross KHR amounts?

Answer: The Local Compensation Plan Pay Ranges are stated in annual gross and US dollar amounts.

[END OF ANNEX 1]

ANNEX 2 – RFP AMENDMENT WITH TRACK CHANGES

NOTE: THE PURPOSE OF THIS DOCUMENT IS TO ASSIST OFFERORS UNDERSTAND

THE SPECIFIC CHANGES MADE IN AMENDMENT 01 USING “TRACK CHANGES.”

THE AMENDMENT SUPERCEDES THIS DOCUMENT IF THERE ARE ANY

DISPREPENCIES.

PART I—THE SCHEDULE

SECTION B—SUPPLIES OR SERVICES AND PRICES/COSTS

PURPOSE

The purpose of this contract is to provide services described in Section C to implement the Feed the Future Cambodia Agriculture Partnership Hub Activity.

CONTRACT TYPE

This is a Cost-Plus-Fixed-Fee (CPFF) completion form contract. For the consideration set forth below, the Contractor must provide the results, deliverables and outputs described in Section C and Section F.

ESTIMATED COST, CEILING PRICE, FIXED FEE, AND OBLIGATED

AMOUNT

(a) The estimated cost for the performance of the work required hereunder, exclusive of fixed fee, if any, is [TBD]. The fixed fee, if any, is [TBD]. The total estimated cost plus fixed-fee, if any, is [TBD].

(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 amounts nor will the U.S.

Government (USG) be responsible for cost incurred should the Contractor do so.

(c) [Note to Offerors: The following language will be added to the award only if the apparently successful Offeror elects to use a payment method through Letter of Credit for the GUC component. Otherwise, this section will be deleted from the award document.]

For GUC using Letter of Credit (LOC): The contractor must use funds obligated under this award and any subsequent modifications from the specific Operating Units (OU) and Program Areas (PA) for activities approved in the award and detailed in the work plan, as applicable. Program disbursements for each OU/PA must not exceed the amounts specified in the Accounting and Appropriation data for each OU and PA.

(d) Funds obligated hereunder are anticipated to be sufficient through [TBD].

PRICE/COST SCHEDULE

Line Item Supplies/Services (Description) Amount

0001 Activity Costs TBD

0002 Grants under Contract Not To Exceed $10,000,000.00

Total Estimated Cost TBD

Fixed Fee TBD

Total Estimated Cost Plus Fixed Fee (CPFF) TBD

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:

[the following to be inserted at award]

Description Rate Base Type Period

[TBD] [TBD] 1/ 1/ 1/

[TBD] [TBD] 2/ 2/ 2/

[TBD] [TBD] 3/ 3/ 3/

1/ Base of Application:

Type of Rate:

Period:

2/ Base of Application:

Type of Rate:

Period:

3/ Base of Application:

Type of Rate:

Period:

COST REIMBURSABLE

Allowable costs will be limited to reasonable, allocable and necessary costs determined in accordance with FAR 52.216-7, Allowable Cost and Payment, FAR 52.216-8, Fixed Fee, if applicable, FAR 52.232-22 Limitation of Funds, and AIDAR 752.7003, Documentation for Payment.

PAYMENT OF FIXED FEE

Payment of fixed fee will be made upon receipt of a proper invoice and shall directly correspond to the percentage of allowable costs being paid. In accordance with FAR 52-216-8, Fixed Fee, the CO will withhold 15% of the total fee or $100,000, whichever is less until the required award conditions under the referenced clause have been met.

MULTI-YEAR CONTRACT AND CANCELLATION CEILING

(a) This contract is considered non-severable, and is therefore a multi-year contract as defined in FAR 17.103. Consequently, this contract is subject to the requirements of

FAR 17.106.

(b) Cancellation Dates: in the event that the Government cancels requirements for services in subsequent program years under this contract, the following conditions will apply:

[Amount and dates to be filled in at the time of award]

Contract Year Cancellation Date Cancellation Ceiling Amount

Year 1 N/A N/A

Year 2 Month [TBD], 2023 $ [TBD]

Year 3 Month [TBD], 2024 $ [TBD]

Year 4 Month [TBD], 2025 $ [TBD]

Year 5 Month [TBD], 2026 $ [TBD]

(c) Cancellation Ceiling: This is a CPFF completion 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 must 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 indicated above.

[END OF SECTION B]

SECTION C— DESCRIPTION/SPECIFICATIONS/STATEMENT OF WORK

TITLE OF ACTIVITY

Feed the Future Cambodia Agriculture Partnership Hub.

PURPOSE

The purpose of Feed the Future Cambodia Agriculture Partnership Hub Activity is to foster competitive, resilient, and inclusive agricultural market systems development that provides increased economic opportunities (jobs and income) for Cambodians, especially women and youth who have limited access to employment in key value chains.

The Activity will promote and expand market-based opportunities and will facilitate diversification and competitiveness within the agriculture sector. The Activity will further strengthen relationships between and among key value chain stakeholders, such as producer associations, aggregators, wholesalers, exporters, financial institutions, and agribusinesses (including input suppliers, contractors, transporters, manufacturers and agro-processors), and business service providers to improve agricultural competitiveness and create strong linkages with end markets.

BACKGROUND AND DEVELOPMENT CHALLENGES

Agriculture Context:

Cambodia is one of the fastest developing countries in Asia, with an average GDP growth of 7 percent over the past decade. Cambodia reached lower middle-income status in 2015 and has the ambitious goal of attaining upper middle-income status by 2030 (WB, 2020). The global COVID- 19 pandemic has significantly impacted Cambodia’s economy. Cambodia’s GDP in 2020 contracted by 3.1 percent, the sharpest decline in Cambodia’s recent history (WB, 2021). Agriculture is a resilient economic pillar during the pandemic, and persistently continues to grow along with rising local demand for products and exports. Agriculture accounted for 20.8 percent of Cambodia’s GDP in 2019, and employed about 35.5 percent of the labor force in 2020 (MAFF, 2020; CSES, 2020). In 2019, Cambodia exported around 7 million tons of agricultural products, of which 4.784 million tons (about $1.5 billion) were exported through official channels (MAFF, 2020; VNA, 2020). Cambodia’s main agricultural exports are mostly unprocessed agricultural products including rice, cassava, maize, pepper, fresh mango, banana, cashew nut, soybean and raw palm oil. Cambodia is still mainly a primary producer with little processing capability. Agricultural productivity growth in Cambodia is limited by high production costs, limited access to improved technologies and practices, insufficient infrastructure and logistics, limited access to credit, lack of access to markets, and limited use of research in development.

Currently 61 percent of the Cambodian population live in rural areas, and 50 percent (77% of rural households) rely on agriculture, fisheries and forestry, according to Cambodia Census, 2019 and CIAS, 2019. Cambodia is at a crossroads where its agriculture production methods and markets need to be modernized and diversified to continue to support the large number of people depending on agriculture as their main source of income and protein. On average, approximately 43 percent of a household’s budget is allocated for food-related items in Cambodia (about 47 percent in rural areas) (CSES, 2020), and about 47 percent of women of reproductive age in the zone of influence (ZOI) consume a diet of minimum diversity (Cambodia PBS, 2019). Socio-economic and gender inequalities persist, hampering access to a nutritious diet. Undernutrition is estimated to cost Cambodia approximately 1.7 percent of its annual GDP and is a major contributor to mortality and decreased health and productivity (World Food Program). Women own the majority of businesses in Cambodia (61 percent), significantly higher than in many Associations of Southeast Asian Nations (ASEAN) countries, yet women, on average, own smaller and less profitable businesses compared to men (ADB, 2018 and IFC, 2019). Women are more likely to use their own savings to start their business (57 percent, compared to 51 percent men) and the majority of women lack essential financial literacy skills (IFC, 2019). Venture capitalists and business angels are not widespread concepts in Cambodia - and certainly not in rural areas - and few male- or female-owned businesses have received support from a private investor or venture capitalist (ibid).

The country has the potential to increase production and processing of specialty and other high-value crops for local and international markets. A well-functioning market system for key agricultural commodities is critical to inclusive economic growth and inclusive development in Cambodia, and the food system needs to benefit from improved infrastructure and logistics, enhanced agricultural services and improvements, increased market access, improved capacity to meet global food safety standards, and increased/improved access to finance and investment across the agriculture market system.

Development Challenges:

Cambodia’s agriculture sector has become one of the world’s fastest growing. The sector significantly contributed to GDP growth and poverty reduction over the past decade. Though Cambodia’s agriculture sector continues to grow (Khmer Times, 2021) and has shown resilient growth during the global pandemic (Phnom Penh Post, 2020), the sector still faces a number of development challenges that impact value chain development and export market competitiveness. Below is a summary of findings from several USAID/Cambodia analyses (Cambodia Agriculture Competitiveness Opportunity Assessment, 2019 (NIS, 2019); Harvest II MTE, 2019 and progress reports; ASDP, 2019-23; Draft Ag Sector Master Plan 2023; World Bank, 2019; and USAID Cambodia’s Country Development Cooperation Strategy (CDCS) Sector Analyses) that potentially impact private sector led-agriculture growth and trade competitiveness.

This is not a comprehensive list of development challenges nor does USAID/Cambodia expect this activity to address or resolve all of the development challenges summarized below. Rather USAID/Cambodia anticipates that the challenges listed below will be taken into consideration for all proposed interventions and the effects posed by these challenges will be mitigated within the manageable interest of the Activity.

Uncertainties in agriculture input markets: Agricultural productivity in Cambodia is still low and most agricultural inputs, including fertilizer, machinery, animal feeds and seeds are imported and experience fluctuating prices, which leads to increased costs of production. On the other hand, producers have already assumed additional costs, including transportation, electricity, and logistical expenses that further drive up the costs of production, making it very challenging for

Cambodian entrepreneurs in these competitive markets. In addition, the input markets are hampered by uncertainties regarding input quality, including widespread mislabelling and poor access to technical assistance regarding appropriate types and level of inputs used. These problems are difficult to address since many of the inputs are imported through informal channels. Given that there is limited government oversight, Cambodian producers are sold inputs which are ineffective, harmful to the environment, and compromise food safety. Because of uncertainties about quality and appropriate application guidelines/protocols, farmers are understandably cautious about their input purchases and their application (ASDP, 2019-23; Ag Competitiveness, 2019).

Limited access to inputs and technical services and markets for agricultural products: The extension capacity to disseminate modern and appropriate agricultural techniques is still inadequate, particularly in the use of agricultural inputs, including seeds fertilizers, chemical fertilizers, applications and repair techniques for agricultural machinery, post-harvest technologies and so on, which is one of the factors leading to low agricultural productivity and high production cost with corresponding low market competitiveness (Draft of Ag Sector Master Plan, 2030;

ASDP, 2019-23; Ag Competitiveness, 2019). The small- and medium-sized farmers and businesses, including women farmers and women-led entrepreneurs have limited knowledge and skills to commercialize their agricultural products (USAID, 2016). They also have limited access to financial services, market information, and public infrastructure to diversify and scale successful technologies, practices, and market linkages across Cambodia. In addition, there is a crucial need to create a better business enabling environment for farmers to access agriculture markets, improve market information services, support climate-smart agriculture, and increase agriculture market supply, particularly contract farming production. Engagement of women and youth in the development, testing, and exchange of digital and other low-cost technologies is also needed to ensure access and relevance to these and other marginalized groups. Furthermore, the quality, sanitary and phytosanitary (SPS), and traceability standards need to be strengthened to promote food safety and expand market access for Cambodian agricultural products to both local and international markets.

Limited relationships among market actors: Relationships among value chain actors performing different functions are weak and are characterized by a lack of trust. There are many opportunities for the adoption of contract farming agreements and other innovative business models between smallholder farmers and larger producers or processors to build relationships and to smooth the movement of agricultural products across the value chain. However, these have not been widely established and farmers remain cautious about such relationships given past experiences where some contracts have not been honored. These weak relationships result in a barrier to market entry, limited trading, and poor service delivery (Draft of Ag Sector Master Plan, 2030). In addition, women and youth are also limited in participating in the markets though there has been some progress in women and youth engagement in the agriculture value chain (Harvest II’s MTE, 2019). Women and youth are active in all market actor segments, but market opportunities for women and youth lag behind those of men, particularly job opportunities in more remunerative supply chain services (buyers/processors of high value crops), input suppliers/retailers, and MFI/bank lending officers (Harvest II’s MTE, 2019). Furthermore, the existing 1,190 agriculture cooperatives (ACs) and farmer organizations (FOs) have not functioned well in response to a competitive, free market economy. They are facing various challenges including, limited management capacity and networking, lack of business ideas and innovation, absence of investment capital, poor access to quality production inputs, mistrust between farmers and contractors, and imperfect bargaining power for markets (Syden and Lee, 2016). The coordination between ACs and other market actors is also limited.

Limited capacity of MSMEs: Based on the Cambodia Inter-censal Economic Survey 2014, there were 513,759 enterprises in Cambodia, of which, 99.8% were MSMEs, and mostly were micro enterprises. Approximately 62% of micro enterprises and 26% of SMEs were owned by women. Out of all enterprises in Cambodia, only 3.5% were registered with the Ministry of Commerce. MSMEs also have great challenges in dealing with customs, trade regulations, and licenses, and particularly for women led-businesses, because women farmers and entrepreneurs have less access to — and time for — networking and building business partnerships due to their family responsibilities. Lower education rates and social norms also impact their opportunities to access international markets (Open Development, 2020). Micro enterprises in Cambodia are relatively new (61.7% are 1-5 years old) and engaged predominantly in wholesale and retail activities (60.7%), followed by manufacturing (14.0%) and accommodation and food service activities (10.9%) (MoP, 2015). Lack of processing facilities is seen as the major challenge for Cambodian agriculture sector growth and for increasing its competitiveness (Ag competitiveness, 2019; ASDP, 2019-23; IDP, 2015-2025). The majority of Cambodia’s agricultural exports were unprocessed or semi-processed products including rice, rubber, maize, pepper, cashew, fruits, cassava, fish, and livestock. The MSMEs in Cambodia, particularly for those involved in food processing, have limited access to modern inputs and equipment, and limited capacity to implement modern processing techniques that would respond to increasing market and quality demands in both local and international markets. Food processing companies also face high costs of firm formalization, operations (electricity) as well as financing (WB, 2018, and MIH, 2018). In addition, MSMEs have limited capacity and low investment in advanced post-harvest facilities such as storage systems, and refrigerated transports and warehouses needed to modernize Cambodian agro-industry, spur agriculture sector growth, and increase competitiveness in local and international markets.

Access to financial services: Although the microfinance sector is relatively mature, access to finance remains a constraint for farmers, and small and medium enterprises (SMEs), particularly among women and youth. Lack of self-confidence to access financial services, deal with intermediaries and government officials, and negotiate gender norms within families and communities is a major constraint to women’s opportunities in agriculture and entrepreneurship (IFC, 2019). According to the World Bank, 2018, lending to agriculture by commercial banks accounted for only 11 percent (or US$1.7 billion) of their total loan portfolio in 2017. Micro-finance institutions (MFIs) have given more attention to the agriculture sector as they have provided 23.8 percent (or US$1.16 billion) of their total loan portfolio to the sector. The cap on interest rates by the government has also caused many MFIs to become more cautious and/or to limit lending, particularly in the riskier agriculture sector. The interest rates of loans supplied by commercial banks and MFIs still remain high. The 12-month weighted average interest rates were as high as 11.8 percent per annum and 17.8 percent per annum offered by commercial banks and MFIs in 2018, respectively. Informal lenders charge even higher interest rates. Traders and wholesalers also have limited access to working capital, due to lack of collateral and longer payment terms. Furthermore, specialized financial packages such as crop insurance and leasing that could mitigate investment risk in agriculture are rarely available from Cambodia's financial institutions. Although women own the majority of businesses in Cambodia (61%), they are insufficiently served by credit markets (IFC, 2019).

Interaction of climate change and agricultural production: The agriculture sector both drives and is highly impacted by climate change. In Cambodia, agriculture accounts for 36.4% of greenhouse gas emissions, second only to the forestry sector. According to a 2015 United Nations Food and Agriculture Organization (FAO) assessment, damage in developing countries caused by climate-related disasters such as floods, droughts, and tropical storms accounted for 25 percent of all losses in the agriculture sector. This assessment further indicated that climate-related losses in the crop sub-sector accounted for 42 percent of total losses, followed by livestock with 36 percent.

Cambodia has acknowledged that climate change could be impacting agricultural production. The 2015 El Niño event produced a two-year drought that severely impacted more than 2.5 million Cambodians due to water shortages, crop failures, and livestock deaths. Likewise, flash floods in 2020 affected roughly 329,750 hectares of agricultural land across all of Cambodia (Center for Excellence, 2020). Given that the majority of rural households (88% of the 1,726,000 households with farmland) are engaged in crop production (CIAS, 2019), the fact that Cambodia is highly vulnerable to climate-related disasters, and the likelihood that climate shifts will significantly alter conditions for agricultural production, the adoption of climate smart technologies will be crucial to mitigate and manage these impacts to ensure sustainable long-term growth in the sector.

COVID 19 and food affordability: Food prices, particularly for meat, eggs, and some fish products in Phnom Penh and fresh vegetables in provincial markets, have all increased (WB, 2020). According to the “Food Price Outlook 2020” published by the United States Department of Agriculture, prices have been relatively slow to descend from the highs reached as a result of the pandemic. By September 2020, the food and non-alcoholic beverage subindex of Cambodia’s inflation basket climbed to 4.6 percent, compared with 3.4 percent in December 2019 (WB,2020).

As Cambodia navigates its response and recovery from COVID 19, a focus on food affordability, particularly for economically and socially vulnerable groups, will be critical.

STRATEGIC ALIGNMENT WITH GOVERNMENT OF CAMBODIA PRIORITIES

The Feed the Future Cambodia Agriculture Partnership Hub is developed in alignment with the Royal Government of Cambodia’s strategies and priorities including Rectangular Strategy Phase IV and the National Strategic Development Plan, 2019–2023. These national strategies have identified agriculture as a major contributor to economic growth and employment creation, and to achieving the goal of transforming Cambodia from lower middle income country to upper middle income one by 2030.