RFP. 72052221R00001_amended_0001.pdf

SOLICITATION, OFFER AND AWARD

4. TYPE OF SOLICITATION2. CONTRACT NUMBER 3. SOLICITATION NUMBER

72052221R00001_0001

7. ISSUED BY CODE 8. ADDRESS OFFER TO (If other than Item 7)

ORDER UNDER DPAS (15 CFR 700)

6. REQUISITION/PURCHASE NUMBER

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

NEGOTIATED (RFP)

SEALED BID (IFB)

5. DATE ISSUED

1. THIS CONTRACT IS A RATED RATING PAGE OF PAGES

1 112

C. E-MAIL ADDRESS

EXT.NUMBERAREA CODE

B. TELEPHONE (NO COLLECT CALLS)A. NAME

10. FOR

INFORMATION

CALL:

CAUTION: LATE Submissions, Modifications, and Withdrawals: See Section L, Provision No. 52.214-7 or 52.215-1. All offers are subject to all terms and conditions contained in this solicitation.

(Date)(Hour) local timeuntildepository located in copies for furnishing the supplies or services in the Schedule will be received at the place specified in Item 8, or if hand carried, in the

SOLICITATION

9. Sealed offers in original and

PART IV - REPRESENTATIONS AND INSTRUCTIONS

OTHER STATEMENTS OF OFFERORS

EVALUATION FACTORS FOR AWARD

INSTRS., CONDS., AND NOTICES TO OFFERORS

REPRESENTATIONS, CERTIFICATIONS AND

LIST OF ATTACHMENTS

CONTRACT CLAUSES

PART III - LIST OF DOCUMENTS, EXHIBITS AND OTHER ATTACH.

I

J

K

L

M SPECIAL CONTRACT REQUIREMENTS

CONTRACT ADMINISTRATION DATA

DELIVERIES OR PERFORMANCE

INSPECTION AND ACCEPTANCE

PACKAGING AND MARKING

DESCRIPTION/SPECS./WORK STATEMENT

SUPPLIES OR SERVICES AND PRICES/COSTS

SOLICITATION/CONTRACT FORM

PART II - CONTRACT CLAUSESPART I - THE SCHEDULE

H

G

F

E

D

C

B

A

SEC. DESCRIPTION PAGE(S) (X) DESCRIPTION SEC. (X)

11. TABLE OF CONTENTS

18. OFFER DATE17. SIGNATURE

SUCH ADDRESS IN SCHEDULE.

IS DIFFERENT FROM ABOVE - ENTER

15C. CHECK IF REMITTANCE ADDRESS

EXT.NUMBERAREA CODE

15B. TELEPHONE NUMBER

(Type or print)AND

ADDRESS

OF

OFFEROR

CODE FACILITY

16. NAME AND TITLE OF PERSON AUTHORIZED TO SIGN OFFER15A. NAME

DATEAMENDMENT NO.DATEAMENDMENT NO.

and related documents numbered and dated):

amendments to the SOLICITATION for offerors

(The offeror acknowledges receipt of

14. ACKNOWLEDGEMENT OF AMENDMENTS

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

(See Section I, Clause No. 52.232.8)

13. DISCOUNT FOR PROMPT PAYMENT

designated point(s), within the time specified in the schedule.

by the offeror) from the date for receipt of offers specified above, to furnish any or all items upon which prices are offered at the price set opposite each item, delivered at the

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

OFFER (Must be fully completed by offeror)

IMPORTANT - Award will be made on this Form, or on Standard Form 26, or by other authorized official written notice.

28. AWARD DATE

(Signature of Contracting Officer)

27. UNITED STATES OF AMERICA

25. PAYMENT WILL BE MADE BY

26. NAME OF CONTRACTING OFFICER (Type or print)

CODE 24. ADMINISTERED BY (If other than Item 7)

ITEM

(4 copies unless otherwise specified)

23. SUBMIT INVOICES TO ADDRESS SHOWN IN

41 U.S.C. 253 (c) ( 10 U.S.C. 2304 (c) (

22. AUTHORITY FOR USING OTHER THAN FULL AND OPEN COMPETITION:

21. ACCOUNTING AND APPROPRIATION20. AMOUNT19. ACCEPTED AS TO ITEMS NUMBERED

AWARD (To be completed by government)

CODE

01/22/21 REQ-522-21-000001

X

720522

USAID/Honduras Office of Acquisition and Assistance

1000 S 02/19/2021

Jacqueline Arita jarita@usaid.gov

X

X

X

X

X

X

X

X

X

X

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PAGE(S)

Brian Chang

AUTHORIZED FOR LOCAL REPRODUCTION

Previous edition is unusable

STANDARD FORM 33 (Rev. 9-97)

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

12. In compliance with the above, the undersigned agrees, if this offer is accepted within _____120_________ calendar days (60 calendar days unless a different period is inserted

Electronic submission ONLY, via email to:

oaahonduras@usaid.gov

RFP No. 72052221R00001_0001

TABLE OF CONTENTS

PART I – THE SCHEDULE 1

SECTION A - SOLICITATION/CONTRACT FORM (SF-33) 1

B.1 PURPOSE 6

B.2 CONTRACT TYPE 6

B.3 ESTIMATED COST, FIXED FEE, AND OBLIGATED AMOUNT 6

B.4 AWARD BUDGET BY LINE ITEM 6

B.5 INDIRECT COST RATES 7

B.6 CEILING INDIRECT COST RATES 7

B.7 COST REIMBURSABLE 8

B.8 PAYMENT OF FEE 8

SECTION C – STATEMENT OF OBJECTIVES 9

C.1 PURPOSE AND OVERVIEW 9

C.2. BACKGROUND 10

C.3. CONTRIBUTION TO USG AND GOH OBJECTIVES 10

C.4. LESSONS LEARNED AND OPPORTUNITIES 12

C.5. VALUE-CHAINS AND ZONE OF INFLUENCE 14

C 6. PERIOD OF PERFORMANCE 14

C.7. GUIDING PRINCIPLES 15

C.8. OBJECTIVES, TARGETS, AND OUTCOMES 16

SECTION D - PACKAGING AND MARKING 21

D.1 AIDAR 752.7009 MARKING (JAN 1993) 21

D.2 BRANDING POLICY 21

D.3 MARKING AND BRANDING STRATEGY 21

SECTION E - INSPECTION AND ACCEPTANCE 23

E.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE 23

E.2 INSPECTION AND ACCEPTANCE 23

E.3 QUALITY ASSURANCE 23

SECTION F - DELIVERIES OR PERFORMANCE 24

F.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE 24

F.2 PERIOD OF PERFORMANCE 24

F.3 PLACE OF PERFORMANCE 24

F.4 PERFORMANCE STANDARDS 24

F.5 AUTHORIZED WORKDAY / WEEK 25

F.6 REPORTS AND DELIVERABLES / OUTPUTS 25

F.7 KEY PERSONNEL 36

SECTION G - CONTRACT ADMINISTRATION DATA 38

G.1 CONTRACTING OFFICER 38

G.2 CONTRACTING OFFICER’S REPRESENTATIVE (COR) 38

G.3 CONTRACTOR’S PRIMARY POINT OF CONTACT 38

G.4 PAYING OFFICE 38

G.5 ACCOUNTING AND APPROPRIATION DATA 39

G.6 CONTRACTOR’S PAYMENT ADDRESS 39

G.7 TECHNICAL DIRECTIONS/RELATIONSHIP WITH USAID 39

SECTION H - SPECIAL CONTRACT REQUIREMENTS 41

H.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE 41

H.2 AUTHORIZED GEOGRAPHIC CODE 41

H.3 TITLE AND CARE OF PROPERTY 41

H.4 NONEXPENDABLE PROPERTY PURCHASES AND INFORMATION TECHNOLOGY RESOURCES 41

H.5 SUBCONTRACTING CONSENT 41

H.6 ENVIRONMENTAL COMPLIANCE 42

H.7 AIDAR 752.7007 PERSONNEL COMPENSATION (JUL 2007) 43

H.8 ADDITIONAL REQUIREMENTS FOR PERSONNEL COMPENSATION 43

H.9 AIDAR 752.7027 PERSONNEL (DEC 1990) 44

H.10 AIDAR 722.170 EMPLOYMENT OF THIRD COUNTRY NATIONALS (TCN’S) AND COOPERATING

COUNTRY NATIONALS (CCN’S) 45

H.11 AIDAR 752.229-71 REPORTING OF FOREIGN TAXES (JULY 2007) 46

H.12 USAID-FINANCED THIRD-PARTY WEB SITES (November 2017) 47

H.13 SUBMISSION OF DATASETS TO THE DEVELOPMENT DATA LIBRARY (DDL) (October 2014) 49

H.14 ELECTRONIC PAYMENTS SYSTEM 50

H.15 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) 51

H.16 RESTRICTIONS AGAINST DISCLOSURE (MAY 2016) 52

H.17 EXECUTIVE ORDER ON TERRORISM FINANCING 53

H.18 GRANTS UNDER CONTRACTS 53

H.19 PERFORMANCE MONITORING, EVALUATION, AND LEARNING 53

H.20 TEST AND EVALUATION 54

H.21 COLLABORATION, LEARNING AND ADAPTING (CLA) 55

H.22 GENDER EQUITY, GENDER-BASED VIOLENCE (GBV), AND MARGINALIZED POPULATIONS 56

H.23 PRIVATE PUBLIC PARTNERSHIPS

H.24 SURVEY DATASETS

H.25 GEOGRAPHIC DATA AND CARTOGRAPHIC PRODUCT REPORTING REQUIREMENTS

H.26 CLIMATE RISK SCREENING

H.27 REDUCING IRREGULAR MIGRATION

H.28 PROCUREMENT OF “COVERED MATERIAL”

H. 29 Sexual Misconduct (December 2020) 61

H.30 FAR Part 4.21 Prohibition on Contracting for Certain Covered Telecommunications And Video Surveillance Services or Equipment (Section 889) (January 2021) 62

PART II - CONTRACT CLAUSES 63

SECTION I - CONTRACT CLAUSES 63

I.1 52.252-2 CLAUSES INCORPORATED BY REFERENCE (FEB 1998) 63

I.2 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE 63

I.3 52.204-1 APPROVAL OF CONTRACT (DEC 1989) 67

I.4 52.204-25 PROHIBITION ON CONTRACTING FOR CERTAIN TELECOMMUNICATIONS AND

VIDEO SURVEILLANCE SERVICES OR EQUIPMENT (AUG 2020) 67

I.5 52.217-8 OPTION TO EXTEND SERVICES. (NOV 1999) 70

I.6 52.217-9 OPTION TO EXTEND THE TERM OF THE CONTRACT. (MAR 2000) 70

I.7 52.222-36 EQUAL OPPORTUNITY FOR WORKERS WITH DISABILITIES. (JUN 2020) 70

I.8 52.229-8 TAXES—FOREIGN COST-REIMBURSEMENT CONTRACTS (MAR 1990) 71

I.9 52.243-7 NOTIFICATION OF CHANGES (JAN 2017) 71

PART III - LIST OF DOCUMENTS, EXHIBITS AND OTHER ATTACHMENTS 74

SECTION J - LIST OF ATTACHMENTS 74

PART IV - REPRESENTATIONS AND INSTRUCTIONS 75

SECTION K - REPRESENTATIONS, CERTIFICATIONS AND OTHER STATEMENTS OF OFFERORS 75

K.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE 75

K.2 52.204-3 TAXPAYERS IDENTIFICATION (OCT 1998) 75

K.3 52.204-8 ANNUAL REPRESENTATIONS AND CERTIFICATIONS (MAR 2020) 76

K.4 52.209-5 CERTIFICATION REGARDING RESPONSIBILITY MATTERS (OCT 2015) 80

K.5 52.209-7 INFORMATION REGARDING RESPONSIBILITY MATTERS (OCT 2018) 81

K.6 52.230-1 COST ACCOUNTING STANDARDS NOTICES AND CERTIFICATION (JUN 2020) 83

K.7 AUTHORIZED NEGOTIATORS 85

K.8 AGREEMENT ON, OR EXCEPTIONS TO, TERMS AND CONDITIONS 85

K.9 SIGNATURE 86

SECTION L - INSTRUCTIONS, CONDITIONS, AND NOTICES TO OFFERORS 87

L.1 52.252-1 SOLICITATION PROVISIONS INCORPORATED BY REFERENCE (FEB 1998) 87

L.2 WAIVERS UNDER FAR PART 4.2101 PROHIBITION ON COVERED TELECOMMUNICATIONS

AND VIDEO SURVEILLANCE SERVICES AND EQUIPMENT (AUGUST 13, 2020) 87

L.3 52.216-1 TYPE OF CONTRACT (APR 1984) 89

L.4 52.233-2 SERVICE OF PROTEST (SEP 2006) 89

L.5 GENERAL INSTRUCTIONS TO OFFERORS 90

L.6 INSTRUCTIONS REGARDING KEY PERSONNEL 91

L.7 INSTRUCTIONS FOR THE PREPARATION OF THE TECHNICAL PROPOSAL 92

L.8 INSTRUCTIONS FOR THE PREPARATION OF THE COST/BUSINESS PROPOSAL 99

SECTION M - EVALUATION FACTORS FOR AWARD 108

M.1 52.252-1 SOLICITATION PROVISIONS INCORPORATED BY REFERENCE (FEB 1998) 108

M.2 GENERAL INFORMATION 108

M.3 EVALUATION CRITERIA 108

M.4 TECHNICAL EVALUATION CRITERIA 109

M.5 COST/PRICE EVALUATION 111

M.6 DETERMINATION OF THE COMPETITIVE RANGE AND CONTRACT AWARD 111

M.7 SOURCE SELECTION 112

M.8 CONTRACTING WITH SMALL BUSINESS CONCERNS AND DISADVANTAGED ENTERPRISES 112

SECTION B - SUPPLIES OR SERVICES AND PRICE/COSTS

B.1 PURPOSE

The purpose of the Feed the Future Honduras Food Security and Agriculture Resilient Market Systems Activity (the “Activity”) is to strengthen agricultural market systems to become more competitive, inclusive, and resilient to sustainably reduce poverty in Honduras.

B.2 CONTRACT TYPE

USAID intends to award a Cost-Plus-Fixed-Fee (CPFF) completion contract. For the consideration set forth below, the Contractor shall provide the deliverables or outputs described in Sections C and F, and in accordance with the performance standards specified in Section E.

B.3 ESTIMATED COST, 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 upon award]. The fixed fee, if any, is [TBD upon award]. The estimated cost plus fixed fee, if any, is [TBD upon award].

(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 upon award]. The Contractor shall not exceed the aforesaid obligated amount.

B.4 AWARD BUDGET BY LINE ITEM

[Offeror must propose amounts]

Line Item No. Description AMOUNT TOTAL

0001 BASE PERIOD

Direct Costs (Inclusive of Subcontracts) Indirect Costs Grants Under Contract (GUC)** 5,670,000.00

Estimated Cost Fixed Fee

Total Estimated Cost + Fixed Fee $20,000,000.00 - $24,000,000.00

* Final dollar amount to be determined at time of award based on the selected offeror’s proposal.

** The proposed GUC value must mirror the distribution detailed in Section L.7.b, final dollar amount is to be determined at time of award based on the selected offeror’s proposal.

These line items amounts may not be adjusted without a written modification signed by the Contracting Officer. The contractor will not bill any amounts against this contract in excess of the amounts specified for the line item as illustrated above. The amount cannot exceed the Total Estimated Cost Plus Fixed Fee of the contract.

B.5 INDIRECT COST RATES

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:

PRIME CONTRACTOR:

Description Rate Base Type Period

TBD 1/ 1/ 1/

1/Base of Application:

Type of Rate: Predetermined Period:

SUBCONTRACTOR(S):

1/Base of Application:

B.6 CEILING INDIRECT COST RATES

(a) Reimbursement for indirect costs must be at final negotiated rates, but not in excess of ceiling rates specified below:

1/Base of Application:

(b) The Contractor will make no change in its established method of classifying or allocating indirect costs that impacts this contract without the prior written approval of the Contracting Officer.

(c) The Government may not pay any additional amount associated with indirect costs above the ceiling rates established in the contract. This advance understanding must not change any monetary ceiling, cost limitation, or obligation established in the contract.

B.7 COST REIMBURSABLE

The U.S. dollar costs allowable 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.

B.8 PAYMENT OF FEE

(a) The total amount of fee payable upon completion of all contract requirements will be set at the time of award and does not vary with actual cost.

(b) Definite goals or targets must be achieved, and end products must be completed, delivered, and accepted by USAID during the period of performance and within the total estimated cost as a condition for payment of the entire fixed fee.

(c) A Fee Distribution Schedule must be approved before a fee is paid. The final FEE DISTRIBUTION SCHEDULE, and any subsequent changes, must be approved by the CO, and shall be incorporated as an attachment to the contract award.

(d) Goals or targets and end products from the Fee Distribution Schedule that have fee associated with their completion or delivery must be referred to as Fee Bearing Results or Deliverables.

(e) Fee Bearing Results or Deliverables proposed in the Fee Distribution Schedule must appear in the Work Plan (WP) and/or Monitoring, Evaluation, and Learning (MEL) Plan that has been prepared in compliance with the specifications and requirements of this Contract. Appropriate Fee Bearing Results are completion of items that meet the USAID definition of an Output or Result. Performance Indicators are generally not an appropriate Fee Bearing Results. Deliverables such as reports may be Fee Bearing.

(f) The Fee Distribution Schedule must emphasize completion of goals, targets and/or deliverables that are the development results sought by USAID through this award, but must also include selected implementation management and development results milestones as Fee Bearing Milestones.

(g) As a condition for the payment of the portion of the total fixed fee associated with a specific goal, target and/or deliverable, the Contractor must complete the goal, target and/or deliverable. When a Fee Bearing Milestones is not completed or achieved, the portion of the total fixed fee allocated to the Milestone in the Fee Distribution Plan will not be paid.

(h) When a Fee Bearing Milestones is not completed on time, or requires more cost/effort to complete than projected in the WP and/or MEL Plan, the portion of the total fixed fee allocated to the Milestone in the Fee Distribution Plan may be subject to adjustment of the fee by the Contracting Officer.

[END OF SECTION B]

SECTION C – STATEMENT OF OBJECTIVES

C.1 PURPOSE AND OVERVIEW

The purpose of the Feed the Future Honduras Food Security, Agriculture and Resilient Market Systems Activity (the “Activity” or “FARMS”) is to strengthen agricultural market systems to become more competitive, inclusive, and resilient to reduce poverty in Honduras sustainably.

This Activity is designed to contribute to the U.S. Government’s (USG) goal of reducing illegal immigration to the U.S. by addressing the underlying factors contributing to migration such as food insecurity and lack of employment opportunities. The agricultural sector in Honduras is the most important source of income and employment but is at risk due to recurrent drought, underinvestment, and weak market linkages. The COVID-19 pandemic, and the measures enacted by the Government of Honduras to control the spread of infection, have highlighted the fragility of the Honduran agriculture sector, which is now in crisis. The Activity aims to address the lack of resilience and also complement the Mission’s Transforming Market Systems (TMS) activity, and the anticipated Youth Employment for Migration Prevention Activity (YEMP), by providing a more significant field presence and engaging middle-value chain actors through a private sector, markets facilitation approach.

Feed The Future (FTF) activities in Honduras have proven to be successful in raising incomes and lifting thousands of households out of poverty. USAID/Honduras’ FTF portfolio has increased the access that farmers and beneficiaries have to technical assistance, credit, water, and markets, and has created a better future for 250,000 Hondurans. Evidence of this positive impact comes from a recent survey of over 15,000 FTF beneficiaries in western Honduras found that the intention to migrate to the U.S. in the next three years (3.6%) was dramatically lower than the rate found in a survey of the general population in those same departments (24%). Adjusting for age, eight percent of FTF beneficiaries had intentions to migrate to the U.S. Meanwhile, beneficiary families are reinvesting in production and repaying loans, further confirming that they intend to stay. The Activity will leverage the significant achievements and learning made under past and current FTF activities.

The Activity will address persistent backsliding into poverty due to chronic vulnerability across the region, and expand its reach to a larger number of people through a more facilitative and systems-based approach. Particularly, as evidenced by the COVID-19 pandemic, it is clear there is a need to build and strengthen the resilience of the Honduran agriculture market system. The Activity will deploy a market facilitation approach to ensure sustainability and resilience.

Over the past several years, USAID/Honduras’ FTF activities have employed an approach involving intensive implementation and targeted direct provision of technical assistance to beneficiaries. These activities were also based on the value chain (VC) framework for economic growth and poverty reduction. Going forward, the Mission will pursue a facilitative and market-based approach, partnering with existing public and private sector actors, allowing its investments to have more sustainable impacts. This approach is consistent with the Agency’s Private Sector Engagement Policy and focuses on systems strengthening worldwide.

Both private and public sector engagement is fundamental to USAID’s goal to end the need for foreign assistance.1 Implementation of the Activity will almost exclusively be through a large number of public and private partnerships co-created with local actors. The Activity will leverage at least an additional 100% of its budget from private sector actors.

C.2. BACKGROUND

The Global Food Security Strategy Country Plan for Honduras2 provides a comprehensive analysis of the food security issues, challenges, and opportunities in Honduras. Additional background information relevant to this Activity can be found in Attachment 1.a of the Applicable Documents in Section J (Annex 1: “Development Problems” and Annex 2: “FTF Coordination”) of this solicitation.

There are several key guiding documents for this SOO, which can also be found in Section J of this solicitation:

● USAID Private Sector Strategy

● USAID’s Journey to Self-Reliance Roadmap

● The USAID/Honduras Country Development Cooperation Strategy (CDCS)

● The 2018 Global Food Security Strategy (GFSS) Honduras Country Plan

● Vulnerability and Resilience to Climate Change in Western Honduras Assessment

● USAID Acquisition and Assistance Strategy

● Market Systems Assessment Report

C.3. CONTRIBUTION TO USG AND GOH OBJECTIVES

The Activity will directly contribute to the América Crece or Growth in the Americas Strategy (“Strategy”). The América Crece initiative is an innovative, whole-of-government approach to support economic development by catalyzing private sector investment in energy and other infrastructure projects across Latin America and the Caribbean. América Crece centers on building an enabling environment for private sector investment in infrastructure that is transparent, competitive, and in line with international best practices. It focuses on infrastructure, including, but not limited to, energy, telecommunications, ports, roads, and airports. América Crece leverages a comprehensive toolbox to support energy and infrastructure sector projects. This support goes from early-stage feasibility studies through final investment decisions to help countries improve their regulatory frameworks and procurement structures to meet the requirements of limited-resource project financing. América Crece seeks to attract more significant private sector infrastructure investments by connecting the U.S. private sector to opportunities in Latin America and the Caribbean. América Crece streamlines access for the private sector to the relevant U.S. government resources.

The Activity will also support Clear Choice, which encourages countries to make development choices that reinforce their journey to self-reliance. Instead of a country taking on loans that mortgage their future to other countries or institutions, they can work with USAID as a partner, with the joint goal of becoming self-reliant and no longer needing development assistance in the future.

1 https://www.usaid.gov/work-usaid/private-sector-engagement/policy

2https://www.usaid.gov/sites/default/files/documents/1867/Honduras_GFSS_Country_Plan_v4.0_508_Compliant _8.13.18.pdf https://www.usaid.gov/work-usaid/private-sector-engagement/policy

The current USAID/Honduras Country Development Cooperation Strategy (CDCS)3 aims for a more prosperous and safer Honduras that advances inclusive social and economic development, especially among vulnerable populations. The focus of USAID development assistance is to ensure that the economic trajectory of Honduras is not only upward but also equitable, inclusive, and sustainable. The CDCS has three development objectives: Development Objective 1 (DO1), which aims to improve citizen security for vulnerable populations in five cities (Tegucigalpa, Tela, La Ceiba, Choloma, and San Pedro Sula); DO2, which aims to reduce extreme poverty in western Honduras (the departments of Santa Bárbara, Copán, Ocotepeque, Lempira, Intibucá, and La Paz); and DO3, whose objective is to make national-level public administration more transparent and accountable. This Activity will directly contribute to DO2, with an expanded Zone of Influence (ZOI). The activity will also contribute to the new CDCS, which is being developed and will be the guiding strategy for USAID/Honduras from 2021 to 2025.

Once the new CDCS is approved, the Activity will possibly need to align itself to a different DO.

The Activity will also support the U.S. Government's Global Food Security Act (2016) through the Global Food Security Strategy (GFSS) Country Plan for Honduras. Honduras was designated as a Feed the Future focus country in 2009 and continues to be one of 12 focus countries worldwide. With a historical annual budget of approximately $15-$18 million, the Feed the Future Program in Honduras has implemented several food security activities. Two of Honduras’ largest FTF activities, USAID-ACCESS to Markets Activity and the Alliance for the Dry Corridor (USAID-ACS) will have ended by December 2019 and December 2020, respectively. These Activities benefited approximately 50,000 people with a total budget of $82 million over the past five years. Two FTF activities will be in implementation when this Activity starts: 1) The Coffee Alliance, a $2.08 million Global Development Alliance (GDA) activity that leverages at least $2.2 million in private sector funds to support the coffee sector. 2) The Transforming Market Systems Activity, a $49.5 million activity, which will also contribute to the FTF Initiative through investments in agriculture and food security, as well as heavy investments supporting improvements in the business enabling environment. It is expected that the Activity will need to collaborate with activities that are in other DOs and within the current DO2 (for example: FTF and Youth Employment for Migration Prevention activities, and USAID Honduras prospective workforce development activities).

While this Activity does not specifically focus on improving nutrition outcomes, it should incorporate nutrition-sensitive activities (including water and sanitation interventions) where applicable. The Activity should also align with agriculture-to-nutrition pathways (including women's empowerment, income generation, production for own consumption, and increasing the availability of affordable, diverse, nutritious food in markets).

The COVID -19 pandemic created a significant disruption of the Honduran agriculture sector, demonstrating the fragility of the production and market systems. In some areas, farmers lost 70 percent of their products because they could not transport their produce to market, markets could not sell products and had to halt the purchase of produce, inputs became scarce, and key extension services were stopped. Even after stimulus measures developed by the Government of Honduras (GOH) such as providing loans at historically low rates, the agriculture sector has not been able to recover, further reflecting the fragility of value chains and the rapid breakdown in connectivity to markets in a crisis. The Activity shall identify key leverage points to strengthen agriculture market systems to be more resilient, speed up the recovery of food production in Honduras, and tap the potential of the agriculture sector to

3 See CDCS here: https://www.usaid.gov/documents/1862/honduras-country-development-cooperation-strategy generate jobs and economic opportunities.

The GOH is investing in the agricultural sector through a variety of programs (access to irrigation, rural roads, value chain development, access to lower-cost agricultural credit, etc.). The Ministry of Agriculture (SAG), Inversión Estratégica de Honduras (INVEST-H), municipal associations (referred to as mancomunidades in Spanish), and municipalities contribute directly and indirectly to improving the agricultural sector and should all be considered viable partners for the Activity. While the primary focus of the Activity will be on market facilitation engaging the private sector and other local actors, the Activity will take the lead in collecting and documenting a minimum of 25 percent counterpart contributions (in-cash or in-kind) from GOH institutions at different levels. This collaboration and leveraging will not only expand the impact and sustainability of the Activity; it will support the priorities of the GOH and its institutions in effectively achieving their mandates and assisting Honduras on its journey to self-reliance.

C.4. LESSONS LEARNED AND OPPORTUNITIES

Since the original Feed the Future multi-year strategy was approved in 2011, food security in western Honduras has come into even sharper focus. From 2011-2020, Feed the Future activities in Honduras have employed a unique, intensive approach to reaching poverty reduction targets through a tailor-made plan to move each client household above the poverty line. Successful scaling of this model has relied on using GOH entities to implement it and attracting commitments from the GOH to provide increasing levels of funding to reach more families.

USAID/Honduras FTF activities have promoted the use of the VC framework to economic growth and poverty reduction, specifically in coffee and horticulture VCs. However, learning over time has revealed the need for an expanded model that expresses the wider context in which VCs operate. The market systems framework4 builds on—and is intended to complement rather than replace—the VC framework.

The Activity should use a market systems framework, focused on utilizing local partners to achieve sustainable agriculture-led growth.

The ACCESS to Markets and USAID-ACS activities have made significant achievements to date in achieving their goal of lifting families out of poverty by doubling and even tripling household income through market-led production. Based on the significant results achieved to date under the FTF activities, there is a strategic opportunity to leverage the gains made in production, resilience, and livelihoods in the agriculture sector to achieve more sustainable and long-term development outcomes through working with the private sector. Consistent with the Agency’s Private Sector Engagement Policy, and experience in markets facilitation work worldwide, FTF in Honduras is moving from a “direct delivery” approach of technical assistance to small shareholder farmers to a facilitative approach to leverage resources, incentives, and expertise of local actors to reach a larger number of people with more sustainable impact. USAID/Honduras has recognized that in pursuing a direct service delivery approach we (and other donors) displaced public and private sector institutions from the marketplace, weakening their ability to fulfill their mandate (public) or compete for market shares of service provision (private), as envisioned in the 1992 Agriculture Sector Modernization Law (Ley de Modernización del Sector Agrícola – LMSA). Thus donors (USAID) functionally inserted themselves into a system and in so doing, weakened the system.

4 A Framework for Inclusive Market System Development https://www.marketlinks.org/sites/marketlinks.org/files/resource/files/Market_Systems_Framework.pdf

As noted in ANNEX 1 Development Problems, there is weak or shallow capacity and incentives for local actors and the private sector to provide technical assistance and finance in the agriculture sector. One of the purposes of the 1992 LMSA was to move to a more efficient private sector delivery of extension services to replace the public extension service provided by the GOH through the Ministry of Agriculture and other government institutions or projects. However, after almost 30 years of the elimination of the public agriculture extension service, the delivery of private sector technical assistance has not filled in the role as envisioned. As a result, the majority of assistance is now provided by donors, including USAID, and NGOs, which impedes long-term sustainability and growth. To illustrate further the weakness of the agriculture sector derived from the implementation of the LMSA, Honduras has not conducted an agricultural census since 1993.

Facilitation of new and improved win-win relationships between buyers, sellers, and other middle-VC service providers and actors will be critical to improved market systems. It is this section of middle-VC service providers defined by formal and informal small agribusinesses, input providers, extension providers, cooperatives, transportation organizations, producers associations, municipal governments, and others that will be the primary focus for intervention for this activity. Informal intermediaries represent the most important market channel for poor producers in Honduras. As such, the activity will think critically about how to engage this segment representing critically important partnership opportunities.

Another critical lesson learned through FTF programming is the importance of focusing on resilience to climatic events. As stated in USAID’s 2012 Policy and Program Guidance on Building Resilience to Recurrent Crisis, USAID defines resilience as “the ability of people, households, communities, countries, and systems to mitigate, adapt to, and recover from shocks and stresses in a manner that reduces chronic vulnerability and facilitates inclusive growth.” Put simply, resilience is the ability to manage through adversity and change without compromising future well-being. Farmers in western Honduras experience recurrent droughts which dramatically affect their food security (and intention to migrate).

Diversification of livelihoods and access to sustainable sources of water for irrigation are critical to withstand these shocks. The COVID-19 pandemic was an unforeseen shock for the agriculture sector and the Honduran economy. Subsequent quarantine and mitigation measures completely disrupted the existing market system. Despite the GOH and private sector efforts to reactivate the agriculture VCs, actions are disconnected and VC actors are not responding rapidly due to the high risk posed by the uncertainty of the market conditions and lack of trust among private and public sector actors. However, all VC actors are actively, but independently, looking for alternative solutions to re-establish production and the food supply chain. Larger companies are showing a higher capacity to adapt, but medium, small, and micro private sector actors are struggling to find a solution. The COVID-19 crisis creates a unique opportunity to implement significant market system changes that will be sustainable and resilient.

Illegal immigration also has a substantial negative impact on the food security of Hondurans. For poor families, the costs of immigrating illegally often outweigh the gains. For instance, the costs incurred to migrate and the lost labor from absent migrants lead to very high levels of food insecurity for family members left behind.5 Widespread poverty and lack of economic opportunities, along with high rates of

5 FOOD SECURITY AND EMIGRATION Why people flee and the impact on family members left behind in El Salvador, Guatemala and Honduras. August 2017 https://www.usaid.gov/sites/default/files/documents/1866/Policy%20%26%20Program%20Guidance%20-%20Building%20Resilience%20to%20Recurrent%20Crisis_Dec%202012.pdf https://www.usaid.gov/sites/default/files/documents/1866/Policy%20%26%20Program%20Guidance%20-%20Building%20Resilience%20to%20Recurrent%20Crisis_Dec%202012.pdf crime and violence, increase the likelihood of an individual immigrating illegally to the United States.

While violence tends to be concentrated in a few major urban areas, a recent study conducted by USAID indicates that, even in rural areas with a reputation for safety and tranquility, youth participate in and are victimized by violence at very high rates. Migration of men (and increasingly of women) working in agriculture is a coping strategy for families facing food insecurity, as it is seen as enabling families to mitigate the risks associated with agricultural shocks.6

C.5. VALUE-CHAINS AND ZONE OF INFLUENCE

Consistent with the GFSS Honduras Country Plan, this Activity will focus mainly on coffee and horticulture VCs. In the interest of improving resilience through livelihood diversification and responding to market opportunities, the Activity will also work on other relevant VCs and services, as appropriate.

Map of Honduras Feed the Future Zone of Influence

The FTF ZOI comprises six departments (Santa Bárbara, Copán, Ocotepeque, Lempira, Intibucá, and La Paz) in western Honduras. This Activity will be expected to drive results in that ZOI. However, this Activity calls for increased work with companies and other actors outside the ZOI that can impact poverty and stunting within the ZOI. In other words, although focus beneficiaries will be those living within the ZOI, interventions shall occur in and outside of the six departments.

In order to maintain a robust and active presence in the field, the Activity is expected to have a minimum of two regional offices in western Honduras.

C 6. PERIOD OF PERFORMANCE

The estimated period of performance is five years. The estimated start of performance is the day the award is issued.

6 Ibid

C.7. GUIDING PRINCIPLES

The following principles will guide all aspects of Activity implementation, monitoring, evaluation, and learning. Most importantly, they will provide vision and set the tone for the Activity that will inform decision-making.

Facilitating change through local actors: The Activity will follow a facilitative approach that stimulates systemic change without taking a direct role in the market system. It will involve working through market participants and ensure that they are the drivers of the change process. Similarly, the Activity will encourage the broad participation of local partners who self-select to engage throughout the life of the Activity. The desire to invest in change must come from within the local system.

Focus on results: The Activity needs to achieve measurable impacts at scale. USAID expects an ambitious, rigorous, and adaptive approach to implementation that actively seeks out and capitalizes on opportunities. It also should pursue a portfolio management approach to implementation such that multiple partnerships are simultaneously developed, prioritized, and managed with the flexibility to end or expand them based on performance, results, and the need to pursue new partnerships as they present themselves. The Activity should begin with a rapid start-up that can quickly build on the gains already achieved through FTF and other activities. Illustrative activities for rapid startup are: start up of the grants under contracts component (GUC) within the first 90 days and work with ACS-USAID, The Coffee Alliance, TMS, and the DFC Honduras transaction unit to identify and fund activities that will support food production and response to COVID-19.

Coordination and integration with other USAID activities: USAID/Honduras is increasingly working in integration to achieve CDCS goals and objectives in Honduras. This integrated and complementary work has made huge leaps over the past five years and the Mission will continue on this path. The Activity shall work in coordination and complementarity with other USAID activities, particularly those that both contribute to the achievement of the same objectives. This effort should be aimed at achieving synergies that will result in reaching a larger number of beneficiaries, mutually reinforce each other, and avoid duplication, competition, or contradictory messages between activities. The Activity shall put special emphasis on working in coordination with the TMS activity and the prospective Youth Employment to Prevent Migration activity.

Social inclusion: The Activity should actively work with local systems actors to reduce barriers for poor and vulnerable populations, including the stigma attached to these populations. In the face of increasing economic concentration and various forms of exclusion and discrimination, approaches and interventions will need to specifically empower marginalized and vulnerable populations throughout all stages of Activity design and implementation. A special focus on the poor, women, and youth is critical, however, other marginalized and vulnerable populations include: minority ethnic groups, returned migrants, LGBTI people, and persons with disabilities.

Applying collaborative learning and adaptive management approaches: Collaboration and integration with other GOH and USAID activities will promote synergies and avoid redundancy. Beyond collaboration at an Activity level, the facilitative approach also entails promoting greater collaboration among market actors. Continuous learning translates into intentional and systematic approaches to understanding the system and the changes this Activity seeks to catalyze. Adaptive management will require an intentional approach to making decisions and adjustments in response to new information and changes in context. In particular, efforts to seek ongoing analysis, across various evidence sources and types are critical. As such, establishing clear means of data collection that will inform implementation decision points/milestones will be necessary throughout the life of the Activity, while leaving room for ‘pause and reflect’ moments prompted by contextual shifts and/or other triggers to occur outside what may be anticipated. The collaborating, learning, and adapting management approach is expected to yield more efficient and effective implementation that stresses the importance of building on what works and eliminating what does not.

Migration-focused: The Activity needs to intentionally focus on how interventions can best contribute to mitigating drivers of illegal immigration. Given the fact that most illegal immigrants are youth (ages 17-30), young people need to be a target population for this Activity. The Activity will also need to be:

fully informed (about contextual and specific data and trends in migration), strategic (achieving all of the other Activity objectives and targets in a manner that also maximizes impacts on illegal immigration), and deliberate about drawing connections and measuring impacts of interventions on intentions and propensities to migrate among program beneficiaries.

C.8. OBJECTIVES, TARGETS, AND OUTCOMES

The development hypothesis guiding this Activity is:

IF key leverage points within and around targeted value chains are strengthened, THEN more competitive, inclusive, and resilient agricultural systems will create sustainable economic opportunities.

The objectives of the Activity are:

Objective 1: Agricultural systems that are more Competitive Objective 2: Agricultural systems that are more Inclusive Objective 3: Agricultural systems that are more Resilient

These objectives are also pursued by the USAID/Honduras TMS activity, therefore work must be performed in close collaboration and communication with TMS to achieve complementarity, synergies, and avoid overlaps.

The proposal is expected to provide a clear interpretation of the differences between TMS and the Activity, including but not limited to differences in partnership identification and types of partnerships pursued.

Figure 1. Illustrative complementarity of Food Security, Agriculture and Resilient Market Systems and

TMS activities

The Contractor should begin with a rapid start-up that can quickly build on the gains already achieved through FTF and other activities including ACCESS to Markets, ACS-USAID, The Coffee Alliance, and TMS.

Additionally, the Contractor will work with the DFC Honduras transaction unit to identify and fund activities that will support food production and response to COVID-19.The Contractor is expected to have field presence to deliver services within the first 90 days after signing the Contract. USAID will provide to the Contractor the list of the irrigation systems established under FTF and the list of communities with the number of household clients that have received assistance. USAID will also provide the Contractor with information on migration in the ZOI. Illustrative activities for rapid start up include standing up the grants under contracts component (GUC) within the first 90 days.

The Offeror is expected to indicate in their proposal ambitious targets7 against the following required indicators that will address key constraints and the objectives listed above. However, offerors are strongly encouraged to propose additional indicators, including sentinel and context, and targets that will capture progress and achievements across all three objectives of the Activity. Furthermore, offerors are encouraged to propose higher targets if deemed feasible and achievable.

Indicator Number

Indicator Title Life of Activity Targets

EG.3-2 Number of individuals participating in USG food security TBD

7 Contractor is required to propose sex disaggregated targets for all indicators that capture data about people and encouraged to propose disaggregated targets by age range as part of their proposal programs8

EG.3.1-14 Value of new USG commitments and private sector investment leveraged by the USG to support food security and nutrition

TBD

EG.3.2-26 Value of annual sales of producers and firms receiving USG assistance

TBD

CBLD-9 Percent of USG-assisted organizations with improved performance

TBD

Custom Number of individuals with new or better jobs as a result of USG assistance

TBD

Custom Value of GOH counterpart contributions (cash or in-kind) to the Activity

TBD

The expected outcomes for each objective are described below:

Objective 1: Agricultural systems that are more Competitive

● Outcome 1.1: Improved and more efficient market linkages

● Outcome 1.2: Increased provision of services to farmers by local actors

● Outcome 1.3: Increased sales in targeted value chains

Despite notable increases in productivity and production in the agriculture sector in Honduras, a majority of producers still have limited access to markets. This is often due to limited knowledge about market conditions, limited access to credit services and storage infrastructure, an inability to produce sufficient quantities of crop varieties on a consistent basis, and poor distribution channels. The Activity will work on addressing these issues and others that need to be addressed to achieve the objective.

Objective 2: Agricultural systems that are more Inclusive

● Outcome 2.1: Increased participation of poor, youth, and vulnerable populations in agricultural systems

● Outcome 2.2: Increased new or better work opportunities

The Activity will identify the on- and off-farm opportunities available to Honduran youth that enable them to participate in the local job market with increased employment, financial inclusion, and increased incomes to become engaged, productive citizens. The Offeror is encouraged to refer to the DO2 Youth Assessment for recommendations on how to engage youth and empower them to reach

8 Contractor should refer to page 16 of the Feed the Future Indicator Handbook for a definition of “participants” https://www.agrilinks.org/sites/default/files/ftf-indicator-handbook-march-2018-508.pdf their full potential.9 The Activity should also actively work with local systems and with other USAID activities to reduce barriers for employment among vulnerable populations, including women, minority ethnic groups, returned migrants, LGBTI people, and persons with disabilities.

Objective 3: Agricultural Market Systems that are More Resilient

● Outcome 3.1: Diversification of livelihoods (both on- and off-farm)

● Outcome 3.2: Increased access to sustainable sources of water for agriculture

● Outcome 3.3: Increased capacity to manage agricultural pests and diseases

● Outcome 3.4: Increased safety and functionality of food markets

Agricultural market system resilience can be understood as the ability of a market system to respond to disturbance (shocks and stresses) in a way that allows consistency and sustainability in the market system’s functioning, or that leads to improvement in its functioning10. USAID/Honduras has defined pathways to increase adaptive capacities among its beneficiaries (vulnerability assessment 2014. The Activity shall focus on finding innovative means to promote the following pathways and should move to increased resilience of the market system. These pathways shall increase farmers’ and communities’ ability to cope and manage through adversity and change without compromising future well-being.

i) Diversification of livelihoods is critical to help households become more resilient to economic and environmental shocks. The Activity should seek ways to incentivize and expand opportunities for diverse on-farm and off-farm employment.

ii) Sustainable water sources for irrigation. The Activity will continue to increase access to sustainable sources of water for farmers through coordination and collaboration with ongoing activities, such as USAID-ACS (See Annex 2), the GOH, local municipal government, NGOs, and other donors, as well as working with irrigation service providers to strengthen the delivery of technical assistance, materials, and access to finance.

iii) Agricultural pests and diseases are major shocks to increasing productivity and income in western Honduras. This Activity should work to increase the capacity of farmers and other market actors to properly manage and mitigate risks associated with these potential shocks.

iv) The Activity shall conduct actions to support safe (food handling and COVID) and functioning food markets while maximizing safety precautions to limit COVID-19 transmission.

The Honduran agricultural market system was heavily hit with the COVID-19 pandemic. Although Objective 3 is focused on improving the resilience of the agricultural market systems, the work conducted to achieve the other two objectives must be aligned to contribute to the improvement of resilience of the agricultural market system.

9 USAID/Honduras Development Objective 2 Youth Assessment Situational Analysis https://www.youthpower.org/resources/usaidhonduras-development-objective-2-youth-assessment-situational-analysis

10 See Guidance for Assessing Resilience in Market Systems https://www.marketlinks.org/post/resource-guidance-assessing-resilience-market-systems https://www.marketlinks.org/post/resource-guidance-assessing-resilience-market-systems https://www.marketlinks.org/post/resource-guidance-assessing-resilience-market-systems

The proposal should answer the following questions:

What are the main foreseen complementarities and synergies between this and other on-going USAID activities, TMS and the prospective Youth Employment for Migration Prevention activities in particular?

What is the set of sentinel and progress indicators the Offeror proposes to measure progress and success towards achieving each objective? What are the definitions of these indicators?

What are the types of jobs that will be created and how will they be documented?

What opportunities exist to promote integrated water management for agriculture production to mitigate against the potential negative impacts of recurrent drought events and improve the management of natural resources?

[END OF SECTION C]

SECTION D - PACKAGING AND MARKING

D.1 AIDAR 752.7009 MARKING (JAN 1993)

(a) It is USAID policy that USAID-financed commodities and shipping containers, and project construction sites and other project locations be suitably marked with the USAID emblem.