72051422R00005 (01) - Sustainable Agriculture.pdf

Issuance Date: February 24, 2022 Questions Due Date: March 14, 2022, 17:00 Bogota Local Time Past Performance Due Date: April 4, 2022, 17:00 Bogota Local Time Full Proposal Due Date: April 25, 2022, 17:00 Bogota Local Time

Subject: Request for Proposal (RFP) No 72051422R00005, “USAID Sustainable Agriculture” Activity

Dear Prospective Offerors:

The United States Government, represented by the United States Agency for International Development (USAID)/Colombia, is seeking proposals from U.S. or non-U.S., non-profit or for-profit organizations, to provide services to expand licit, profitable and climate-smart agri-business models for Colombia’s rural producers and value chain actors in conflict- affected regions with high prevalence of illicit crops, as described in the attached Request for Proposals (RFP).

The Authorized Principal Geographic Code for this solicitation is 937 – Default. The NAICS Code for this solicitation is 541990 – All Other Professional, Scientific and Technical Services.

USAID anticipates awarding a single Hybrid - Cost plus Fixed Fee (CPFF) Completion - Indefinite Delivery, Indefinite Quantity (IDIQ) Contract. The Total Estimated Cost-Plus Fixed Fee for services under this contract (CLIN 001 & CLIN 002) is estimated to fall within the range of $45 million to $53 million. This procurement will be conducted under Full and Open Competition procedures, pursuant to Part 15 of the Federal Acquisition Regulation (FAR) (48 CFR Chapter 1). Please refer to Section L for information regarding proposal requirements.

Offerors should consider the expected delivery time required by the proposal transmission method they choose, and they are responsible for ensuring proposals are received at USAID by the due date and time as specified in Section L. Failure to comply with the submission date and time will deem any submission unacceptable and it will not be reviewed or evaluated. Faxed proposals are not acceptable, nor will they be reviewed or evaluated.

Section L of the RFP sets forth all instructions for the preparation and submission of required proposal contents, including critical dates/times for the submission of questions, and the proposal submission closing date and time. Section M states the criteria by which proposals will be evaluated. The competition will utilize a Highest Technical Rated with Fair and Reasonable Price and Realistic Cost (HTR) process, not a tradeoff process. In this process, USAID is concerned with getting the best technical solution that has a fair and reasonable price and realistic cost. There will not be a tradeoff to justify paying a premium for a higher technical rated proposal.

Offerors must carefully review Sections L and M of this RFP for details of this process. Section L of the RFP sets forth all instructions for the preparation and submission of required proposal contents, including critical dates/times for the submission of questions, and the proposal submission closing date and time. Section M states the criteria by which proposals will be evaluated. Oral explanations or instructions given before award of the contract that are not formalized with an amendment will not constitute a formal amendment of the RFP and will not be binding.

This RFP in no way obligates USAID to award a contract or task order nor does it commit USAID to pay any cost incurred in the preparation and submission of a proposal. Award of a Contract under this RFP is subject to availability of funds and other internal USAID approvals.

USAID expects that Offerors will have equal access to all local organizations needed to implement this contract and strongly discourages exclusivity agreements with local organizations.

This RFP can be viewed and downloaded from www.sam.gov. USAID bears no responsibility for data errors resulting from transmission or conversion processes. Further, be aware that amendments to solicitations are occasionally issued and will be posted on the same website from which you downloaded the solicitation. USAID advises to regularly check the above website for amendments.

Interested firms can register and use the Interested Vendor List (IVL) accessible through this solicitation on www.sam.gov, so that firms can contact one another for consideration of teaming arrangements and/or small business subcontracting opportunities in response to this solicitation.

Sincerely, William Sedlak

Contracting Officer USAID/Colombia http://www.sam.gov/

72051422R00005 – Sustainable Agriculture Activity SECTION B

SF 33 FORM

Table of Contents

PART I – THE SCHEDULE

SECTION B – SUPPLIES OR SERVICES AND PRICES/COSTS

B.1. PURPOSE

B.2. CONTRACT TYPE AND SERVICES

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

B.4. CONTRACT BUDGET AND CEILINGS

B.5. OTHER DIRECT COST LIMITATIONS UNDER CLIN 002

B.6. LEVEL OF EFFORT (CLIN 002)

B.7. INDIRECT COST

B.8. COST REIMBURSABLE

SECTION C – STATEMENT OF WORK

C.1. PURPOSE

C.2. BACKGROUND

C.3. WORK REQUIREMENTS

C.4. ACTIVITY FUND (APPLICABLE TO CLIN 001)

C.5. SUPPLEMEMTAL TECHNICAL ASSISTANCE (CLIN 002)

C.6. GEOGRAPHIC FOCUS

C.7. POPULATION TARGETING

C.8. SECURITY

C.9. RELATIONSHIP TO OTHER USAID PROGRAMS AND HOST COUNTRY ACTIVITIES

C.10. PRIVATE SECTOR ENGAGEMENT (PSE)

SECTION D – PACKAGING AND MARKING

D.1. AIDAR 752.7009 MARKING (JAN 1993)

D.2. BRANDING IMPLEMENTATION PLAN AND MARKING PLAN

SECTION E – INSPECTION AND ACCEPTANCE

E.1. NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE

E.2. INSPECTION AND ACCEPTANCE

SECTION F – DELIVERIES OR PERFORMANCE

F.1. NOTICE LISTING CLAUSES INCORPORATED BY REFERENCE

F.2. PERIOD OF PERFORMANCE

F.3. PLACE OF PERFORMANCE

F.4. PERFORMANCE STANDARDS

F.5. REPORTS AND DELIVERABLES

F.6. FIXED FEE PAYMENT SCHEDULE [CLIN 001]

F.7. KEY AND NON-KEY PERSONNEL

F.8. AUTHORIZED WORKDAY/WEEK

F.9. ORDERING SUPPLEMENTAL TECHNICAL ASISTANCE CLIN 002

SECTION G– CONTRACT ADMINISTRATION DATA

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

G.2. CONTRACTING OFFICER – CONTRACTING OFFICER’S REPRESENTATIVE

G.3. CONTRACTOR’S PRIMARY POINT OF CONTACT

G.4. PAYING OFFICE

G.5. ACCOUNTING AND APPROPRIATION DATA

G.6. CONTRACTOR’S PAYMENT ADDRESS

G.7. CONTRACTING OFFICER'S AUTHORITY

G.8. TECHNICAL DIRECTION/RELATIONSHIP WITH USAID

SECTION H – SPECIAL CONTRACT REQUIREMENTS

H.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE

H.2 AIDAR 752.7007 PERSONNEL COMPENSATION (JUL 2007)

H.3 ADDITIONAL REQUIREMENTS FOR PERSONNEL COMPENSATION

H.4 AUTHORIZED GEOGRAPHIC CODE

H.5 DEFENSE BASE ACT INSURANCE RATES

H.6 EXECUTIVE ORDER ON TERRORISM FINANCING

H.7 ELECTRONIC PAYMENTS SYSTEM

H.8 SUBMISSION OF DATASETS TO THE DEVELOPMENT DATA LIBRARY

(DDL) (OCTOBER 2014)

H.9 GRANTS UNDER CONTRACTS (GUC)

H.10 USAID-FINANCED THIRD-PARTY WEB SITES (NOVEMBER 2017)

H.11 TRANSITION OF KNOWLEDGE, SKILLS AND ABILITIES

H.12 FOREIGN GOVERNMENT DELEGATIONS TO INTERNATIONAL CONFERENCES

H.13 PROHIBITION OF ASSISTANCE TO DRUG TRAFFICKERS

H.14 LIMITATION ON ACQUISITION OF INFORMATION TECHNOLOGY (APRIL 2018)

(DEVIATION NOS. M/OAA-DEV-FAR-20-3C AND M/OAA-DEV-AIDAR-20-2C) (APRIL 2020)

H.15 ENVIRONMENTAL COMPLIANCE

H.16 EXCHANGE VISITORS AND TRAINING

H.17 GOVERNMENT FURNISHED FACILITIES OR PROPERTY

H.18 INHERENTLY GOVERNMENTAL AND CLOSELY ASSOCIATED FUNCTIONS

H.19 PERFORMANCE MANAGEMENT INFORMATION SYSTEM

H.20 PRESS RELATIONS

H.21 SECURITY CONDITIONS

H.22 LIFE SUPPORT AND SECURITY SERVICES

H.23 TITLE TO AND CARE OF PROPERTY

PART II - CONTRACT CLAUSES

SECTION I – CONTRACT CLAUSES

I.1 FAR 52.252-2 CLAUSES INCORPORATED BY REFERENCE (FEB 1998)

I.2 752.252-2 AIDAR SOLICITATION PROVISIONS INCORPORATED BY REFERENCE (MAR 2015)

I.3 52.203-13 CONTRACTOR CODE OF BUSINESS ETHICS AND CONDUCT (NOV 2021)

I.4 52.204-1 APPROVAL OF CONTRACT (DEC 1989)

I.5 52.204-25 PROHIBITION ON CONTRACTING FOR CERTAIN TELECOMMUNICATION AND

VIDEO SURVEILLANCE SERVICES OR EQUIPMENT (AUG 2020)

I.6 52.216-18 ORDERING (AUG 2020) (CLIN 002)

I.7 52.216-19 ORDER LIMITATIONS (OCT 1995) (CLIN 002)

I.8 52.216-22 INDEFINITE QUANTITY (OCT 1995) (CLIN 002)

I.9 52.217-2 CANCELLATION UNDER MULTI-YEAR CONTRACTS (OCT 1997)

I.10 52.223-9 9 ENSURING ADEQUATE COVID-19 SAFETY PROTOCOLS FOR FEDERAL

CONTRACTORS (OCT 2021)-ALTERNATE 70 (OCT 2021) (M/OAA-DEV-FAR-22-01C)

I.11 52.229-8 TAXES – FOREIGN COST-REIMBURSEMENT CONTRACTS

I.12 52.244-2 SUBCONTRACTS (JUNE 2020)

I.13 52.247-67 SUBMISSION OF TRANSPORTATION DOCUMENTS FOR AUDIT. (FEB 2006)

PART III – DOCUMENTS AND OTHER ATTACHMENTS

SECTION J - LIST OF DOCUMENTS, EXHIBITS AND OTHER ATTACHMENTS

J.1. TECHNICAL LINKS FOR REFERENCE

J.2. ACRONYMS LIST

J.3. COORDINATION WITH USAID AND GOC PROGRAMS

J.4. LIST OF ILLUSTRATIVE INDICATORS

J.5. INITIAL MUNICIPALITIES LIST

J.6. BRANDING AND MARKING TEMPLATE

J.7. CONTRACTOR PERFORMANCE REPORT - SHORT FORM

J.8. BUDGET GUIDANCE AND TEMPLATE

J.9. AMELP TEMPLATE

J.10. AMELP GUIDANCE

J.11. INITIAL ENVIRONMENTAL EXAMINATION (IEE)

J.12. GUIDANCE FOR MONITORING USAID/COLOMBIA’S ENGAGEMENT WITH STAKEHOLDERS

J.13. SECTION 889 RULE GUIDANCE

J.14. BIOGRAPHICAL DATA SHEETS

J.15. SMALL BUSINESS SUBCONTRACTING PLAN TEMPLATE

J.16. NON-U.S. ORGANIZATION PRE-AWARD SURVEY GUIDELINES AND SUPPORT

J.17. STANDARD INDICATORS

PART IV – REPRESENTATION AND INSTRUCTIONS

SECTION K – REPRESENTATIONS, CERTIFICATIONS AND OTHER STATEMENTS OF OFFERORS

K.1. NOTICE LISTING SOLICITATION PROVISIONS INCORPORATED BY REFERENCE

K.2. 52.204-8 ANNUAL REPRESENTATIONS AND CERTIFICATIONS (NOV 2021)

K.3. 52.204-24 REPRESENTATION REGARDING CERTAIN TELECOMMUNICATIONS AND VIDEO

SURVEILLANCE SERVICES OR EQUIPMENT (NOV 2021)

K.4. 52.204-26 COVERED TELECOMMUNICATIONS EQUIPMENT OR SERVICES-

REPRESENTATION. (OCT 2020)

K.5. 52.209-7 INFORMATION REGARDING RESPONSIBILITY MATTERS (OCT 2018)

K.6. 52.209-12 CERTIFICATION REGARDING TAX MATTERS (OCT 2020)

K.7. 52.209-13 VIOLATION OF ARMS CONTROL TREATIES OR AGREEMENTS CERTIFICATION

(NOV 2021)

K.8. 52.230-1 COST ACCOUNTING STANDARDS NOTICES AND CERTIFICATION (JUN 2020) . 110

K.9 52.230-7 PROPOSAL DISCLOSURE—COST ACCOUNTING PRACTICE CHANGES (APR 2005)

K.10 INSURANCE - IMMUNITY FROM TORT LIABILITY

K.11 SIGNATURE

SECTION L - INSTRUCTIONS, CONDITIONS, AND NOTICES TO OFFERORS

L.1. NOTICE LISTING CLAUSES INCORPORATED BY REFERENCE

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

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

L.4. WAIVERS UNDER FAR PART 4.2101 PROHIBITION ON COVERED TELECOMMUNICATIONS

AND VIDEO SURVEILLANCE SERVICES AND EQUIPMENT

L.5. GENERAL INSTRUCTIONS TO OFFERORS

L.6. GENERAL SUBMISSION INSTRUCTIONS

L.7. INSTRUCTIONS FOR THE PREPARATION OF THE TECHNICAL PROPOSAL

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

SECTION M – EVALUATION FACTORS FOR AWARD

M.1. GENERAL INFORMATION

M.2. METHOD OF EVALUATION

M.3. TECHNICAL EVALUATION CRITERIA

M.4. COST EVALUATION

M.5. DETERMINATION OF COMPETITIVE RANGE

ATTACHMENTS AND OTHER DOCUMENTS

J. 1 – TECHNICAL LINKS FOR REFERENCE

J. 2 – ACRONYMS LIST

J. 3 – COORDINATION WITH USAID AND GOC PROGRAMS

J. 4 – LIST OF ILLUSTRATIVE INDICATORS

J. 5 – INITIAL MUNICIPALITIES LIST

J. 6 - BRANDING AND MARKING - GUIDANCE AND TEMPLATE FOR ACQUISITION AWARDS

J.7 - PAST PERFORMANCE REPORT – SHORT FORM

PART I – THE SCHEDULE

SECTION B – SUPPLIES OR SERVICES AND PRICES/COSTS

B.1. PURPOSE

The purpose of this contract is to provide the services described in the Statement of Work (SOW) to implement the “USAID Sustainable Agriculture” Activity (henceforth ‘the Activity’), as described in Section C.

The purpose of the Sustainable Agriculture activity is to expand licit, profitable and climate-smart agri-business models for Colombia’s rural producers and value chain actors in conflict-affected regions with high prevalence of illicit crops, as a way to increase incomes, combat food insecurity, reduce greenhouse gas emissions and increase carbon sequestered in plants and soils disincentivize coca production and contribute to integrated rural development to transform rural conflict zones.

B.2. CONTRACT TYPE AND SERVICES

This is a FAR 16.102(b) combination award consisting of a Cost-plus Fixed Fee (CPFF) Completion (CLIN 001) and a single-award Indefinite Delivery/Indefinite Quantity (IDIQ) type contract (CLIN 002) for the purpose of providing supplemental technical assistance.

Under the CPFF portion of the contract, which represents 80% of the total estimated cost, (CLIN 001), the Contractor must furnish all personnel, materials, equipment, supplies, facilities, services (except as expressly set forth in this contract as furnished by the U.S. Government (USG)) and perform all activities necessary for, or incidental to, the performance of work described in Section C and other sections of the contract not specifically identified under CLIN 002 as the IDIQ Supplemental Technical Assistance.

Under the IDIQ portion of the contract, which represents 20% of the total estimated cost, (CLIN 002), the Contractor must furnish additional supplemental technical assistance arising out of or related to the completion portion of the contract as required by USG-issued Level of Effort (LOE) Task Orders.

For the consideration set forth below, the Contractor must achieve the performance objectives and deliverables, or outputs described in Sections C and F, and otherwise comply with all contract requirements.

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

The Total Estimated Cost (TEC) for CLIN 001 and CLIN 002 is [TBD].

a. Estimated Cost and Fixed Fee for CLIN 001

The Total Estimated Cost for this CLIN is [TBD], exclusive of fixed fee, if any. The fixed fee, if any, is [TBD]. The estimated Cost-Plus-Fixed-Fee, if any is [TBD].

b. Estimated Cost and Fixed Fee for CLIN 002

The total estimated ceiling cost of this CLIN is [TBD], exclusive of the associated maximum fee of [TBD]. The total estimated ceiling cost and maximum fee is [TBD].

c. Payment of Fixed Fee

CLIN 001: Pursuant to FAR 16.306(d), the fixed fee is payable under CLIN 001 and will be tied to the conditions and completion of the deliverables specified in Section F.6 of this contract and in accordance with the amounts in B.3.a.

CLIN 002: Payment of the corresponding fixed fee for each Task Order will be negotiated at the task order level upon receipt of a proper invoice and must directly correspond to the percentage of level of effort being paid. In no event, the fixed fee percentage of the Task Orders under CLIN 002 can exceed the fee percentage negotiated under CLIN 001.

d. Amount Obligated

CLIN 001: 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 amount nor will the United States Government (USG) be responsible for costs incurred should the Contractor do so.

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

B.4. CONTRACT BUDGET AND CEILINGS

CLIN 001

Direct Costs $TBD Activity Fund (40-50% of the TEC of CLIN 001) $TBD Small Scale Infrastructure Subcontracts $ 3M Indirect Costs $TBD Total Costs $TBD Fixed Fee $TBD Total Estimated Cost-Plus Fixed Fee $TBD

CLIN 002

Direct Costs $TBD Indirect Costs $TBD Maximum Fee $TBD Total Ceiling $TBD

Total Estimated Cost-Plus Fixed Fee CLIN 001 and CLIN 002: $TBD

B.5. OTHER DIRECT COST LIMITATIONS UNDER CLIN 002

The estimated cost of this CLIN includes estimates for material, equipment, subcontracts, travel, and training required for performance of the total amount of work that can be ordered by the government under this CLIN during the life of this contract. The amount of ordered Other Direct costs will not exceed $2,650,000.00.

B.6. LEVEL OF EFFORT (CLIN 002)

a. In performing Government orders for Technical Assistance under CLIN 002, the Contractor is obligated to provide up to a maximum of 13,500 person-days.

b. The CLIN 002 fee set forth in B.3.b is based upon furnishing the level-of-effort specified in B.6.a. The total estimated cost and fixed fee will be established in the individual Government-issued Task Order and will not exceed the amounts set forth in Section B.4.

B.7. INDIRECT COST

The contract clause entitled “Allowable Cost and Payment (AUG2018)”, FAR Subpart 52.216-7, specifies that the indirect cost rates must be established for each of the Contractor’s accounting periods which apply to this contract. 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:

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:

B.8. COST REIMBURSABLE

Allowable costs shall 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, and AIDAR 752.7003, Documentation for Payment.

[END OF SECTION B]

72051422R00005 – Sustainable Agriculture Activity SECTION C

SECTION C – STATEMENT OF WORK

C.1. PURPOSE

The purpose of the Sustainable Agriculture activity is to expand licit, profitable and climate-smart agri-business models for Colombia’s rural producers and value chain actors in conflict-affected regions with high prevalence of illicit crops, as a way to increase incomes, combat food insecurity, reduce greenhouse gas emissions and increase carbon sequestered in plants and soils disincentivize coca production and contribute to integrated rural development to transform rural conflict zones.

C.2. BACKGROUND

High informality rates, limited credit access, and poor regional connectivity contribute to limited sales and low incomes for producers. According to the Society of Colombian Farmers (SAC), 86 percent of rural workers are informal. This is an issue because informal workers face more challenges in accessing credit, public services, and social protections than formal workers. For example, only two percent of all credit awarded in Colombia is awarded in Development Plans with a Territorial Approach (PDET)1 municipalities.2 According to the Private Investment Observatory, less than 15 percent of the total population of 143 PDET municipalities had internet connectivity in 2020. Poor internet connectivity impedes producers’ ability to access market information, virtual training, and sales opportunities. The emergence of COVID-19 has further restricted public and private sector investment in rural areas, thereby hindering rural producers’ access to markets, and causing 45 percent of the businesses in PDET municipalities to close.3 Despite significant anti-narcotic and alternative development efforts in Colombia, illicit crop production has increased over the last five years4. According to the Office of National Drug Control Policy (ONDCP), coca production went from 120,000 hectares in 2014 to 210,000 hectares in 2019. Lack of economic opportunities and underemployment in the rural areas has resulted in a 37 percent extreme poverty rate in comparison with the national extreme poverty rate which is seven percent.5 Marginalized populations, like women, youth, and ethnic minorities, have been disproportionately impacted by the conflict and have fewer social and economic opportunities. These populations’ contributions to agriculture are generally not recognized, gender-related discrimination in agricultural value chains is widespread, and marginalized populations suffer inordinately from exclusionary practices and economic deprivation.6 For example, key informant interviews revealed that men represent 70 percent of association members, while women only represent 30 percent. Moreover, marginalized populations cannot take full advantage of their land holdings

1 https://www.renovacionterritorio.gov.co/especiales/especial_PDET/ 2 PDET Private Investment Observatory, 3rd report. Sept 2020.

3 PDET Private Investment Observatory, 3rd report. Sept 2020.

4 Report of the WESTERN HEMISPHERE DRUG POLICY COMMISSION, Dec 2020, https://foreignaffairs.house.gov/ 5 DANE 2019, https://unperiodico.unal.edu.co 6 What do rural women in Colombia really need, ccafs.cgiar.org https://www.renovacionterritorio.gov.co/especiales/especial_PDET/ https://foreignaffairs.house.gov/Report https://foreignaffairs.house.gov/Report https://foreignaffairs.house.gov/Report https://foreignaffairs.house.gov/Report https://unperiodico.unal.edu.co/ because they often do not have formal land titles and lack sufficient access to financial services and technology. Rural youth also have few licit opportunities and they are vulnerable to forced youth recruitment by illegal armed actors. The unique challenges faced by marginalized populations reinforces the need to adopt differentiated and targeted approaches to increase their access to licit livelihood opportunities.

In terms of market constraints and opportunities, Colombia has historically been more focused on domestic markets for most crops with the exception of coffee. Phytosanitary compliance is necessary to meet additional market demands. There are also significant opportunities for differentiated coffee in export markets. Farmers in the PDETs have challenges reaching domestic as well as international markets due to poor quality transportation and market infrastructure.

Market infrastructure needs to be improved through engagement with producers’ associations and other organizations to reach economies of scale.

There is an urgent need to increase climate-smart agricultural production,7 slow tropical deforestation, adapt to climate change and reduce greenhouse gas emissions. Agriculture and land use sectors contributed to 55 percent of Colombia’s greenhouse gas emissions in 2014.8 In its latest Nationally Determined Contribution (NDC), Colombia committed to reducing its emissions to 169Mt CO2e.9 In addition, Colombia’s plan to mitigate short-lived climate forcers (2020) specifically identifies several agricultural pathways, which include reducing methane emissions from livestock.10 Land protection, management, and restoration, including sustainable agriculture, are critical to meet these targets. In Colombia, increasing the presence of long-lived trees on farms could mitigate over 200 million metric tons of CO2e per year by 2030.11 Agriculture is also extremely vulnerable to climate events. According to Colombia’s National Planning Department (DNP), climate change will cause crop and cattle ranching productivity to decline by 7.4 and 1.6 percent respectively.12 The GoC is looking at ways to increase agricultural productivity and reduce land stress through climate-smart agricultural practices like silvopastoral systems and intensified livestock production.13 The GoC is also working to prevent deforestation through the implementation of National Council for Economic and Social Policy (CONPES) 4021, which establishes multi-sector strategies, forest management practices and ambitious goals like halting

7 Climate-smart agriculture (CSA) is an integrated approach to managing agriculture and land use that address the interlinked challenges of food security and climate change.

8 Segundo Reporte Bienal de Actualización de Colombia ante la CMNUCC. 2018. Web https://unfccc.int/sites/default/files/resource/47096251_Colombia-BUR2-1- 2BUR%20COLOMBIA%20SPANISH.pdf 9https://www4.unfccc.int/sites/ndcstaging/PublishedDocuments/Colombia%20First/NDC%20actualizada%20de%20 Colombia.pdf 10 https://www.ccacoalition.org/en/file/7282/download?token=kyxSNjZo 11 https://royalsocietypublishing.org/doi/10.1098/rstb.2019.0126 12 Impactos Económicos del Cambio Climático - Síntesis. 2014. Web https://www.cepal.org/sites/default/files/publication/files/37879/S1500268_es.pdf 13 https://www.frontiersin.org/articles/10.3389/fsufs.2019.00061/full https://www4.unfccc.int/sites/ndcstaging/PublishedDocuments/Colombia%20First/NDC%20actualizada%20de%20Colombia.pdf https://unfccc.int/sites/default/files/resource/47096251_Colombia-BUR2-1-2BUR%20COLOMBIA%20SPANISH.pdf https://unfccc.int/sites/default/files/resource/47096251_Colombia-BUR2-1-2BUR%20COLOMBIA%20SPANISH.pdf https://www4.unfccc.int/sites/ndcstaging/PublishedDocuments/Colombia%20First/NDC%20actualizada%20de%20Colombia.pdf https://www4.unfccc.int/sites/ndcstaging/PublishedDocuments/Colombia%20First/NDC%20actualizada%20de%20Colombia.pdf https://www.ccacoalition.org/en/file/7282/download?token=kyxSNjZo https://royalsocietypublishing.org/doi/10.1098/rstb.2019.0126 https://www.cepal.org/sites/default/files/publication/files/37879/S1500268_es.pdf https://www.frontiersin.org/articles/10.3389/fsufs.2019.00061/full deforestation by 2030.14 If USAID and the public and private sectors implement licit, inclusive, market-driven, and climate smart agriculture in PDET municipality corridors, then Colombian farmers in the prioritized geographies can benefit from rural development and territorial transformation through licit and environmentally sustainable livelihoods.

C.3. WORK REQUIREMENTS

The Sustainable Agriculture Activity will take a market systems development approach to address the continued need for inclusive rural development opportunities in conflict-affected areas. A market systems development approach addresses the root causes of why markets often fail the poor, focusing on the incentives and behavior of businesses and other market players to ensure positive lasting large-scale change for the poor.15This activity will be strategically positioned to support the GoC’s rural economic development efforts, and it will facilitate private sector partnerships and investment to create innovative, market-driven, sustainable agri-business models that benefit rural producers and value chain actors while also contributing to reduced greenhouse gas emissions from land, consistent with Colombia’s Nationally Determined Contribution (NDC).

The activity will also expand agricultural market opportunities for women, youth, ethnic minorities, and small producers’ associations. There will be a focus on sustainable production, non-polluting processes that conserve energy and resources, and aspects of production that accelerate carbon storage and reduce greenhouse gas emissions from land. The strategy for implementation will focus on implementing three pillars, markets, productivity and environmental sustainability. This activity will work primarily in the coffee, cacao, rubber, dairy, fruits and vegetables value chains. The contractor is encouraged to explore other value chains with economic potential based upon regional market systems analysis. Final selection of value chains will be made in coordination with and approved by the COR after inclusive market analyses are finalized.

The Activity is composed of the following components:

1. Improved market access and increased sales for agricultural producers.

2. Increased productivity of licit production systems.

3. Expanded use of climate-smart agriculture (CSA).

4. Crosscutting component: small scale infrastructure.

Component 1: Improved market access and increased sales for agricultural producers.

To break free from the cycle of poverty, farmers need: 1) to understand market demands; 2) appropriate quantity and quality of products to offer to the market; and 3) the ability to deliver their products to these markets. However, farmers cannot be expected to achieve these in isolation.

Each of these elements for success depends on interconnected market actors that can serve to help or hinder farmers’ successful and sustained escape from poverty. Most rural producers are unable

14https://colaboracion.dnp.gov.co/CDT/Conpes/Econ%C3%B3micos/4021.pdf%C3%A1%20la%20explotaci%C3% B3n,y%20el%20otorgamiento%20de%20concesiones.

15 https://beamexchange.org/market-systems/key-features-market-systems-approach/ https://colaboracion.dnp.gov.co/CDT/Conpes/Econ%C3%B3micos/4021.pdf%C3%A1%20la%20explotaci%C3%B3n,y%20el%20otorgamiento%20de%20concesiones https://colaboracion.dnp.gov.co/CDT/Conpes/Econ%C3%B3micos/4021.pdf%C3%A1%20la%20explotaci%C3%B3n,y%20el%20otorgamiento%20de%20concesiones https://beamexchange.org/market-systems/key-features-market-systems-approach/ to tap new and expanding markets to generate product sales because they lack information about market trends. There is also a lack of trust between producers and the private sector in rural areas, and limited partnerships between producers and public and private buyers. Poor productive infrastructure including transportation infrastructure and market infrastructure in conflict-affected zones further hinders producers’ access to markets. The lack of rural electricity systems also presents barriers to increase production, implement post-harvest processing techniques, and add value to primary products. Successful rural development in conflict-affected areas depends on variables like well-constructed and well-maintained productive infrastructure; increased formality, associativity, entrepreneurial mind-set, access to finance; and more market-based private sector engagement and investment.

Intermediate Result (IR) 1.1: Increased domestic and international market opportunities for Colombian agricultural products. Sixty-six percent of the rural population is primarily involved with agriculture and markets for licit crops are fundamental to raising the income of these individuals.16 To achieve this IR, the contractor will support farmers to transition away from coca production through the development of profitable markets for licit crops, accompanied by the GoC presence that guarantees security in the territories. The contractor will incentivize private sector investment through direct facilitation and partnerships and by serving as a catalyst to improve state presence in the form of increased public spending on tertiary roads, communication networks, and productive infrastructure. The contractor will utilize and promote digital tools when appropriate.

The contractor will engage with private sector actors, including local, small, and medium sized companies to foster inclusive value chains and market access, and build trust between producers and companies. The contractor will engage with private sector companies implementing sustainable sourcing commitments to provide farmers with opportunities to be remunerated for climate-smart and sustainable agricultural production. For example, supermarket chains, like Ara, and restaurant chains, like Crepes and Waffles, have demonstrated interest in supporting sustainable investments and buying directly from producers in the most challenging geographies.

At a minimum, the contractor will implement the following activities:

● Conduct international marketing efforts, such as online events and international trade events, to elevate the profile of Colombian products in international markets.

● Work with public institutions, such as ProColombia and the Ministry of Agriculture, to connect producers with the food industry and markets.

● Support for sustainable agricultural supply chains, including efforts to implement traceability systems, sustainable sourcing practices and marketing of climate-smart and zero deforestation agricultural commodities.

● Incentivize private sector investment to improve access to finance and value chains.

IR 1.2: Improved quality of agricultural products delivered to markets. Most crops face severe limitations in meeting market quality standards regarding disease, insects, and foreign matter contamination. The contractor will work with producers to understand and fulfill these standards to be part of an integrated value chain and to achieve the level of quality expected by the

16 Measurement and analysis of agricultural productivity in Colombia, 2018, scielo.org.co, https://doi.org/10.17230/ecos.2018.47 https://doi.org/10.17230/ecos.2018.47 end consumer. Domestic markets have fewer standard restrictions than international markets, but they still have standards the producer must adhere to protect the consumer.

● Incentivize private sector investment to improve access to finance and value chains with a minimum leverage of 70% - 30% for PPPs.

● Establish facilities and technology for grading, packing, sorting, precooling, and cold storage to allow farmers to access new profitable markets.

● Engage and incentivize private sector agricultural companies and buyers in producers’ technical assistance and value-chain capacity building processes.

IR 1.3: Improved access and management of productive infrastructure for farm to market access. Marketing and post-harvest handling only provides farmers with new opportunities if they can stay in contact with their buyers and can deliver their crops to market. Poor tertiary road and communications infrastructure is a huge limitation in Colombia, with 77.5 percent of Colombia’s tertiary roads are in poor condition.17 Similarly, rural and PDET municipalities have poor communication networks, and rural and PDET populations have limited access to internet connectivity, including proper hardware like cellphones and computers.18 Under this component, the contractor will develop soft skills in local organizations such as planning, financing, and management of processes that are critical to the success of small scale infrastructure activities, some of which will be executed under Component 4.

● Strengthen community-based organizations’ capacities to identify needs, advocate for finance, and maintain roads, as well as electric, productive, and climate-smart productive infrastructure.

● Work with mayors, ART, ADR and other government agencies, including private sector construction companies, to leverage resources and in-kind contributions such as yellow machinery for tertiary road improvement and productive market infrastructure.

● Facilitate internet connectivity with best fit technology to isolated farm communities to provide access for information for connecting to markets, linking with buyers, understanding price fluctuations, improve negotiation agreements, etc.

Component 2: Increased productivity of licit production systems.

Crop yields in the PDET municipalities lag national crop yield averages in Colombia.19 For example, coffee yields in the PDET municipalities average only 1,350 kg/ha per year but the national coffee yield average is 1,900 kg/ha per year. Similarly, dairy production in the PDET

17 https://www.renovacionterritorio.gov.co/especiales/especial_PDET/ 18 http://www.ideaspaz.org/media/website/infografia-pdet.pdf 19 https://www.agronet.gov.co https://www.renovacionterritorio.gov.co/especiales/especial_PDET/ http://www.ideaspaz.org/media/website/infografia-pdet.pdf https://www.agronet.gov.co/ municipalities averages 3.7 liters of milk per day per cow but the national average is 4.7 liters of milk per day per cow.20 Lower rates of production results in higher per unit cost of production and reduced profits for producers. As opportunities arise, the contractor will work to ensure that increased agricultural productivity focuses on intensification and not on agricultural expansion into forested land, in line with Colombia’s policies and regulations.

IR 2.1: Increased farmer knowledge and use of agricultural technologies and climate-smart agricultural practices. The contractor will build farmer capacity related to improved crop planting and management practices, such as proper seed planting depth, irrigation management, and fertilizer timing and application, which will result in healthier, more productive crops, and expanded and diversified production complemented by agroforestry systems including those with opportunities for non-timber product value chains (NTFPs). Moreover, many areas of Colombia already have associations and other organizations that can be targeted by the contractor to engage farmers, and scale-up knowledge and best practices based on market demands. The contractor will utilize and promote digital tools as appropriate related to capacity building, and new agriculture technology adoption. While Colombia is generally a humid country, rains are increasingly erratic due to climate change, therefore based on local needs the contractor will provide technical assistance to producer associations related to irrigation.

● Expand market-based access to quality extension and other business development services to farmers by innovative and scalable delivery methods, such as mobile apps and remote delivery.

● Assist producers' organizations to provide quality extension services by strengthening technicians’ capacities and by advancing sustainable extension models, and as feasible, linked to research institutions.

● Link farmers with the GoC institutions, like Agrosavia, and with guilds like the National Federation of Coffee Growers (FNC), the Society of Colombian Farmers (SAC), and the National Federation of Cacao Growers (FEDECACAO), among others, to increase sustainable agricultural practices.

IR 2.2: Improved quality of production inputs used by farmers. The contractor will support farmers to improve crop production in order to be competitive. For example, the contractor will facilitate increased market access to quality inputs like seeds, fertilizers, equipment -- including as needed irrigation equipment, and integrated pest management. These inputs are not available in many of the PDET municipalities and are essential to increasing volume and improving quality of production to competitive levels.

● Incentivize the private sector to provide agricultural inputs in the PDET municipalities through public-private partnerships (PPPs).

20 Fedegan | Federación Colombiana de Ganaderos, https://www.fedegan.org.co https://www.fedegan.org.co/ https://www.fedegan.org.co/

● Coordinate and leverage resources with government entities such as the Ministry of Agriculture, the Agency for Desarrollo Rural (ADR) and the Presidential Advisor for Stabilization and Consolidation to employ strategies with agricultural production programs in the PDET municipalities.

● Engage the private sector in the producers’ capacity building processes for further value-chain work.

IR 2.3: Increased use of intercropping systems. The contractor will increase the use of intercropping systems. Intercropping often combines a long-term crop, like coffee, with a short-term crop, like bananas. The contractor will facilitate the use of intercropping techniques in order to increase overall land productivity and profitability by enabling farmers to grow more total crops on the same amount of land. For example, when planted alone, coffee plants only occupy 10-20 percent of the total land space in a given area. Intercropping takes advantage of the remaining 80- 90 percent of available land to grow other crops simultaneously.

● Demonstrate new cropping systems from research, associations and government entities to farmers and farmer associations and other organizations.

● Connect farmers with planning and financing options for long term intercropping systems.

Component 3: Expanded use of climate-smart agriculture (CSA)

Climate-smart agriculture refers to agricultural production methods, like shade grown coffee, that support development and food security in a changing climate, and that reduce greenhouse gas emissions from agriculture. CSA promotes conservation and climate resilience efforts in agricultural production to ensure future land productivity and protect against the negative impacts of climate change, like severe drought. CSA also reduces plant and animal vulnerability to pests and diseases that negatively impact production and food security.21 Climate-smart agriculture increases carbon sequestration (for example through agroforestry, avoiding deforestation and forest degradation, and use of perennials), and connects biodiversity corridors. While often conceived mainly at the plot scale, CSA can embrace a whole-of-landscape perspective. Large-scale land use planning, policies, partnerships, and technical assistance collectively influence actions of landowners and land managers, ultimately driving land management, conservation, and restoration. A whole-of-landscape perspective refers to the connection of farmer’s individual plots to the surrounding environment and takes into consideration the farmer’s impact on the local ecosystem.

IR 3.1: Reduced emissions from agricultural and land use. Land protection, management, and restoration, including sustainable agriculture, are critical to achieve targets set forth in Colombia’s NDC. Colombia’s NDC specifically indicates the intention to intercrop cacao and coffee with

21http://www.fao.org/news/story/en/item/1180463/icode/#:~:text=%E2%80%9CLess%20biodiversity%20means%2 0that%20plants,%2C%E2%80%9D%20added%20Graziano%20da%20Silva.

http://www.fao.org/news/story/en/item/1180463/icode/#:%7E:text=%E2%80%9CLess%20biodiversity%20means%20that%20plants,%2C%E2%80%9D%20added%20Graziano%20da%20Silva http://www.fao.org/news/story/en/item/1180463/icode/#:%7E:text=%E2%80%9CLess%20biodiversity%20means%20that%20plants,%2C%E2%80%9D%20added%20Graziano%20da%20Silva timber species and commits to reducing deforestation to 50,000 hectares/year by 2030.22 Achieving these objectives will require support to expand use of long-lived trees in agricultural systems and to address drivers of land use change, which include agricultural expansion.

The contractor will assist farmers to reduce GHG emissions and to increase carbon storage in trees and in soil. There are compelling opportunities, for example, to assist producers by promoting and accelerating adoption of silvopastoral and agroforestry production models, like integrating trees onto existing crop and grazing lands.23 Agroforestry models that focus on species that produce fruits and nuts demanded by non-timber value chains may merit particular attention, as these models have been embraced by the Government of Colombia.24

When complemented by appropriate laws, policies, and /or regulations, higher agricultural and livestock productivity reduces the pressure to expand production into forested land, thus decreasing deforestation.25 As possible, the contractor will promote sector governance mechanisms for achieving these targets, such as supporting the coordination between civil society, governments, and the private sector to enable certification programs to achieve their large-scale land and climate protection goals. The contractor will also promote the increased use of sustainable systems to: reduce food loss and waste along the value chain; reduce the incidence of pests;

increase soil nutrients and biodiversity; reduce the impacts of extreme weather on crops and cattle;

and improve biodiversity indicators in productive farms.

● Provide technical assistance to farmers and farmer associations to enable the transition to cropping systems that meet Colombia’s NDC for Agriculture, Forestry and Other Land Use (AFOLU) sectors.

● Promote agroforestry that provides entry into non-timber forest product value chains.

● Facilitate silvopastoral systems that improve pasture quality, pasture-land carbon capture, breeding practices and sustainable dairy production.

● Intensify agriculture and pasture systems to decrease soil loss and deforestation, reduce emissions and make available pasture lands for NTFP value chain production, reforestation and conservation.

IR 3.2: Increased agricultural production system resilience to climate change. The contractor will assist farmers and other actors to deal with a wetter, dryer, hotter, or colder climate in the future. The contractor will implement resilient production systems to reduce plant stress, and the emergence of pests and diseases that threaten crop health. Colombian coffee producers are already

22https://www4.unfccc.int/sites/ndcstaging/PublishedDocuments/Colombia%20First/Adjunto%202.%20%20Medida s%20de%20mitigaci%C3%B3n_NDC%20de%20Colombia%202020.pdf 23 http://www.fao.org/3/ca2792en/ca2792en.pdf 24https://www.minambiente.gov.co/cambio-climatico-y-gestion-del-riesgo/gobierno-nacional-expidio-decreto-para-manejo-sostenible-de-la-flora-silvestre-y-productos-forestales-no-maderables/ 25https://www.climatelinks.org/projects/proland/issue-brief-africa-sustainable-agriculture-baa-workshop-investment-sustainable https://www4.unfccc.int/sites/ndcstaging/PublishedDocuments/Colombia%20First/Adjunto%202.%20%20Medidas%20de%20mitigaci%C3%B3n_NDC%20de%20Colombia%202020.pdf https://www4.unfccc.int/sites/ndcstaging/PublishedDocuments/Colombia%20First/Adjunto%202.%20%20Medidas%20de%20mitigaci%C3%B3n_NDC%20de%20Colombia%202020.pdf http://www.fao.org/3/ca2792en/ca2792en.pdf https://www.minambiente.gov.co/cambio-climatico-y-gestion-del-riesgo/gobierno-nacional-expidio-decreto-para-manejo-sostenible-de-la-flora-silvestre-y-productos-forestales-no-maderables/ https://www.minambiente.gov.co/cambio-climatico-y-gestion-del-riesgo/gobierno-nacional-expidio-decreto-para-manejo-sostenible-de-la-flora-silvestre-y-productos-forestales-no-maderables/ https://www.climatelinks.org/projects/proland/issue-brief-africa-sustainable-agriculture-baa-workshop-investment-sustainable https://www.climatelinks.org/projects/proland/issue-brief-africa-sustainable-agriculture-baa-workshop-investment-sustainable experiencing the negative impact of climate changes on their crops. For example, in some areas of Colombia coffee production has already migrated to higher altitudes.

Climate mitigation efforts often overlap with climate resilience in agricultural production systems.

Efforts to increase the presence of long-lived trees on agricultural lands, such as shade-grown coffee and silvopastoral systems, have the potential to increase crop resilience to hotter and dryer temperatures.

● Build the capacity of local entities to make climate, climate change and weather data readily available to farmers through easy access, mass media and establish early warning systems during extreme climate events.

● Work with both public and private sectors to assess the adaptation potential of current and alternative cropping systems, implement new cropping systems where appropriate, and initiate long-term planning in anticipation and response to climate change.

● Increase shade grown coffee and cacao to mitigate temperature increases and increase carbon capture, with an emphasis on NTFP value chains as the shade canopy.

IR 3.3: Increased positive environmental impact of climate-smart agriculture. Colombia is the second most biodiverse country on the planet, but nearly half of its ecosystems are in a critical or endangered state. According to a study conducted by Conservación Internacional, Javeriana University, and the Humboldt Institute, of 1853 Colombian plant species evaluated, 665 are endangered.26 The contractor will identify and implement strategies to protect Colombia’s biodiversity and natural assets for eco-tourism, genetic diversity, carbon storage, and future crop health and production, while also meeting its goal to restore natural ecosystems on livestock farms.

● Work with consumers and the private sector to increase market demand for food, goods and products that are sustainably sourced, meaning that the production systems contribute to climate change mitigation, increased resilience, and have positive impacts on biodiversity and water quality and quantity.

● Collaborate with the public and private sectors to support the creation and implementation of governance, incentive, and regulatory frameworks that support climate-smart agriculture, such as sustainability certification programs, payment-for-ecosystem services (PES) programs, and potential participation of farmers in Colombia’s carbon market.

● Provide technical assistance to local farmer associations and other organizations to implement silvopastoral and agroforestry models.

Crosscutting Component 4: Small scale infrastructure.

To support and complement interventions under components 1, 2, and to a lesser extent 3, the contractor will implement small-scale productive infrastructure activities. Small-scale productive

26 The Colombian Red List of Ecosystems (version 2.0) | IUCN Red List of Ecosystems (iucnrle.org) https://iucnrle.org/blog/colombia-red-list-of-ecosystems-version-2.0/ infrastructure for the Sustainable Agriculture activity can be separated as transportation infrastructure, for example improvements to roads, bridges, and culverts, from market infrastructure, for example sorting, packing, refrigeration facilities, and connectivity for producers to stay in touch with buyers.

Market infrastructure is basic to this type of agricultural development activity. Without these interventions, USAID would only be providing farmers with the means to produce more without increasing their capacity to add value and connect with markets. Transportation infrastructure must be coupled with market infrastructure and not stand alone or precede market infrastructure.

The contractor will work with the GoC (e.g., INVIAS, ART, municipal majors) especially on transportation infrastructure where the preferred approach is to leverage GoC resources for transportation infrastructure. The contractor will work with the private sector, associations, and other organizations on market infrastructure to facilitate and incentivize investment in market infrastructure, potentially through co-financing partnerships. Facilities that are not on an electrical grid may also include renewable energy investments. Additionally, the contractor will identify systemic issues that decrease the efficiency and effectiveness of government led infrastructure projects and work to provide new implementation models to resolve these issues.

It is expected that USAID funds will be used to leverage both public and private funding for any small-scale infrastructure construction. The contractor is expected to manage and oversee fixed price construction subcontracts that will co-finance both market and transportation infrastructure.

When possible, the contractor should seek to collaborate with other USAID or international cooperation funded small scale infrastructure activities when aligned with the geographic focus area and objectives of this contract.