RFP_72061719R00002_Amendment_01.pdf

Issuance Date: November 08, 2018

Closing Date for submission of questions: December 03, 2018 Closing Time for submission of questions: 4:00 p.m. (EST) Washington, D.C.

Closing Date for submission of proposals: January 29, 2019 Closing Time for submission of proposals: 4:00 p.m. (EST) Washington, D.C.

Subject: Request for Proposal (RFP) Number: 72061719R00002 Feed the Future Uganda Inclusive Agricultural Markets Activity

Dear Sir/Madam:

The United States Agency for International Development Mission to Uganda (USAID/Uganda) is seeking proposals from qualified organizations interested in providing services that support USAID/Uganda to increase incomes and improve the livelihoods of households through agricultural-led inclusive economic growth.

This procurement will be conducted under full and open competition under which any type of organization (U.S. and Non-U.S. commercial for profit firms, educational institutions, and non-profit organizations) is eligible to compete. The procedures set forth in the Federal Acquisition Regulation (FAR) Part 15 apply.

USAID anticipates awarding a five-year Cost-Plus-Fixed-Fee (CPFF) completion type contract with a total estimated range of $23,000,000 to $24,500,000 for the implementation of this activity. The purpose of providing an estimated range for the contract is to help Offerors develop their proposals. Offerors will provide the lowest possible cost corresponding with their technical approach.

The RFP and any amendments to this solicitation will be issued and posted on the FBO website at https://www.fbo.gov. It is the Offeror’s responsibility to check the website periodically for official updates and amendments to the solicitation. It is the responsibility of the recipient of this RFP to ensure that it has been received from the internet in its entirety. USAID bears no responsibility for data errors resulting from transmission or conversion processes.

Offerors are encouraged to read the entire solicitation, which includes the closing date and time, all pertinent contract requirements, and the conditions and instructions required for submitting a proposal.

Pursuant to Block 12 of Standard Form 33 of this RFP, USAID requires that offers remain valid through a period of 250 days.

Offerors must e-mail questions and proposals in response to this solicitation to KampalaUSAIDSolicita@USAID.gov in MS Word format. No other forms of submission will be accepted. The e-mail transmitting the questions and proposals must reference the RFP number and title on the subject line of the email.

The authorized geographic code for procurement of goods and services under this Activity is 935. The North American Industry Classification Systems (NAICS) code for this Activity is 541990.

https://www.fbo.gov/ mailto:43T43TKampalaUSAIDSolicita@USAID.gov3T

OFFICE OF ACQUISITION AND ASSISTANCE

USAID/UGANDA

PLOT 1577 GGABA ROAD

KAMPALA, UGANDA

Email: KampalaUSAIDSolicita@USAID.gov

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

X A SOLICITATION/CONTRACT FORM X I CONTRACT CLAUSES

X D PACKAGING AND MARKING PART IV - REPRESENTATIONS AND INSTRUCTIONS

X E INSPECTION AND ACCEPTANCE

X F DELIVERIES OR PERFORMANCE

X K

REPRESENTATIONS, CERTIFICATIONS AND OTHER 69

12. In compliance with the above, the undersigned agrees, if this offer is accepted within __250______ calendar days (60 calendar days unless a different period is inserted by the offeror) from the date for receipt of offers specified above, to furnish any or all items upon which prices are offered at the price set opposite each item, delivered at the designated point(s), within the time specified in the schedule.

14. ACKNOWLEDGEMENT OF AMENDMENTS AMENDMENT NO. DATE AMENDMENT NO. DATE

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

15B. TELEPHONE NUMBER 17. SIGNATURE 18. OFFER DATE

AREA CODE NUMBER EXT. 15C. CHECK IF REMITTANCE ADDRESS IS DIFFERENT FROM

ABOVE - ENTER SUCH ADDRESS IN SCHEDULE

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

7. ISSUED BY

CODE 8. ADDRESS OFFER TO

(If other than Item 7)

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

SOLICITATION

AWARD (To be completed by Government)

9. Sealed offers in original and Electronic only 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 depository located in n/a until (see Cover Letter and section L.7 for date and time).

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.

A. NAME B. TELEPHONE (NO COLLECT CALLS) C. E-MAIL ADDRESS

AREA CODE

+256-414

NUMBER

306-001

EXT.

6623 KampalaUSAIDSolicita@USAID.gov

10. FOR INFORMATION CALL:

Liz Nabasirye

11. TABLE OF CONTENTS

22. AUTHORITY FOR USING OTHER THAN FULL AND OPEN COMPETITION: 23. SUBMIT INVOICES TO ADDRESS SHOWN IN ITEM REF SECTION G.5 (4 copies unless otherwise specified)

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

24. ADMINISTERED BY (If other than Item 7) 25. PAYMENT WILL BE MADE BY

CODE

CODE

26. NAME OF CONTRACTING OFFICER (Type or print)

Edward Acevedo

27. UNITED STATES OF AMERICA

28. AWARD DATE

(Signature of Contracting Officer)

1 copy, Refer to Section G.5

1. THIS CONTRACT IS A RATED ORDER RATING PAGE OF

PAGES

UNDER DPAS (15 CFR 700)

2. CONTRACT NUMBER 3. SOLICITATION NUMBER 4. TYPE OF SOLICITATION 5. DATE ISSUED

SEE COVER PAGE

6. REQUISITION/PURCHASE NUMBER

SEALED BID (IFB)

NEGOTIATED (RFP)

SOLICITATION, OFFER AND AWARD

N/A

72061719R00002 REQ-617-18-000036

X

X H SPECIAL CONTRACT REQUIREMENTS X M EVALUATION FACTORS FOR AWARD

OFFER (Must be fully completed by offeror)

(REV. 9-97) STANDARD FORM 33

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

CODE FACILITY 16. NAME AND TITLE OF PERSON AUTHORIZED TO SIGN OFFER 15A. NAME AND

ADDRESS

OF OFFEROR

(Type or print)

13. DISCOUNT FOR PROMPT PAYMENT 10 CALENDAR DAYS (%) 20 CALENDAR DAYS (%) 30 CALENDAR DAYS (%) CALENDAR DAYS (%) (See Section I, Clause No. 52-232-8)

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

X G CONTRACT ADMINISTRATION DATA X L INSTR., CONDS., AND NOTICES TO OFFERORS

X B SUPPLIES OR SERVICES AND PRICES/COSTS PART III - LIST OF DOCUMENTS, EXHIBITS AND OTHER ATTACH.

X C DESCRIPTION/SPECS./WORK STATEMENT X J LIST OF ATTACHMENTS

PART I - THE SCHEDULE PART II - CONTRACT CLAUSES

mailto:KampalaUSAIDSolicita@USAID.gov mailto:KampalaUSAIDSolicita@USAID.gov

Feed the Future Uganda Inclusive Agricultural Markets Activity 72061719R00002

TABLE OF CONTENTS

SECTION B - SUPPLIES OR SERVICES AND PRICE/COSTS

B.1 PURPOSE

B.2 CONTRACT TYPE

B.3 ESTIMATED COST, FIXED FEE AND OBLIGATED AMOUNT

B.4 BUDGET

B.5 INDIRECT COSTS

B.6 CEILING ON INDIRECT COST RATES AND FINAL REIMBURSEMENT FOR INDIRECT COSTS

B.7 COST REIMBURSABLE

B.8 PAYMENT OF FIXED FEE

SECTION C - STATEMENT OF WORK

SECTION D – PACKAGING AND MARKING

D.1 752.7009 MARKING (JAN 1993)

D.2 BRANDING AND MARKING POLICY

D.3 BRANDING STRATEGY

SECTION E - INSPECTION AND ACCEPTANCE

E.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE

E.2 INSPECTION AND ACCEPTANCE

E.3 QUALITY ASSURANCE SURVEILLANCE PLAN (QASP)

SECTION F - DELIVERIES OR PERFORMANCE

F.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE

F.2 PERIOD OF PERFORMANCE

F.3 PLACE OF PERFORMANCE

F.4 REPORTS AND PERFORMANCE OBJECTIVES OR OUTPUTS

F.5 DELIVERY SCHEDULE FOR REPORTS/ PERFORMANCE OBJECTIVES

F.6 KEY PERSONNEL

F.7 TECHNICAL APPROVAL REQUIREMENTS

F.8 752.7005 SUBMISSION REQUIREMENTS FOR DEVELOPMENT EXPERIENCE DOCUMENTS (SEP

2013) 45

F.9 INDICATOR TABLE

SECTION G – CONTRACT ADMINISTRATION DATA

G.1 752.7003 DOCUMENTATION FOR PAYMENT (NOV 1998)

G.2 ADMINISTRATIVE CONTRACTING OFFICE

G.3 CONTRACTING OFFICER’S REPRESENTATIVE (COR)

G.4 TECHNICAL DIRECTIONS/RELATIONSHIP WITH USAID

G.5 PAYING OFFICE

G.6 ACCOUNTING AND APPROPRIATION DATA

G.7 INVOICING INSTRUCTIONS

SECTION H - SPECIAL CONTRACT REQUIREMENTS

H.1 FOREIGN GOVERNMENT DELEGATIONS TO INTERNATIONAL CONFERENCES (JAN 2002)

H.2 DEFENSE BASE ACT (DBA) INSURANCE FOR 2015-2020

H.3 AUTHORIZED GEOGRAPHIC CODE

H.4 LOGISTIC SUPPORT

H.5 CONSENT TO SUBCONTRACT

H.6 GRANTS UNDER CONTRACT

H.7 752.229-71 REPORTING OF FOREIGN TAXES (JULY 2007)

H.8 752.222-70 USAID DISABILITY POLICY (DEC 2004)

H.9 752.245-71 TITLE TO AND CARE OF PROPERTY (APR 1984)

H.10 752.7007 PERSONNEL COMPENSATION (JULY 2007)

H.11 ADDITIONAL REQUIREMENTS FOR PERSONNEL COMPENSATION

H.12 VALUE ADDED TAX AND CUSTOMS DUTIES

H.13 752.7032 INTERNATIONAL TRAVEL APPROVAL AND NOTIFICATION REQUIREMENTS (APR 2014)

H.14 NONEXPENDABLE PROPERTY AND INFORMATION TECHNOLOGY RESOURCES

H.15 LANGUAGE REQUIREMENTS

H.16 EMPLOYMENT COSTS OF THIRD COUNTRY NATIONALS AND COOPERATING COUNTRY

NATIONALS

H.17 ENVIRONMENTAL COMPLIANCE AND MANAGEMENT

H.18 752.222-71 NONDISCRIMINATION (JUNE 2012)

H.19 ELECTRONIC PAYMENTS SYSTEM

H.20 BUSINESS CLASS TRAVEL

H.21 USAID-FINANCED THIRD-PARTY WEB SITES (AUG 2013)

H.23 SUBMISSION OF DATASETS TO THE DEVELOPMENT DATA LIBRARY (DDL) (OCT 2014)

H.24 752.231-71 SALARY SUPPLEMENTS FOR HG EMPLOYEES (MARCH 2015)

H.25 LIMITATION ON ACQUISITION OF INFORMATION TECHNOLOGY (DEVIATION NOS. M/OAA-DEV-

FAR-18-2C AND M/OAA-DEV-AIDAR-18-2C) (APRIL 2018)

H.26 ADS 302.3.5.16(A) (4) PROHIBITION ON THE PROMOTION OR ADVOCACY OF THE LEGALIZATION

OR PRACTICE OF PROSTITUTION OR SEX TRAFFICKING (SEP 2014)

H.27 ADS 302.3.5.16(A) (2) CONSCIENCE CLAUSE IMPLEMENTATION (FEB 2012)

H.28 752.7101 VOLUNTARY POPULATION PLANNING ACTIVITIES (JUNE 2008)

H.29 ORGANIZATIONAL CONFLICT OF INTEREST

PART II - CONTRACT CLAUSES

SECTION I - CONTRACT CLAUSES

I.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE

I.2 52.203-13 CONTRACTOR CODE OF BUSINESS ETHICS AND CONDUCT (OCT 2015)

I.3 52.216-24 LIMITATION OF GOVERNMENT LIABILITY (APR 1984)

I.4 52.222-50 COMBATING TRAFFICKING IN PERSONS (MAR 2015)

I.5 AIDAR 752.225-70 SOURCE AND NATIONALITY REQUIREMENTS (FEB 2012)

I.6 AIDAR 752.242-70 PERIODIC PROGRESS REPORTS (OCT 2007)

I.7 AIDAR 752.245-70 GOVERNMENT PROPERTY—USAID REPORTING REQUIREMENTS (OCT 2017)

I.8 AIDAR 752.7013 CONTRACTOR-MISSION RELATIONSHIPS (JUNE 2018)

PART III - LIST OF DOCUMENTS, EXHIBITS AND OTHER ATTACHMENTS

SECTION J - LIST OF ATTACHMENTS INCLUDED AND REFERENCED BY LINK

PART IV - REPRESENTATIONS 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 (JAN 2018)

K.3 INSURANCE - IMMUNITY FROM TORT LIABILITY

K.4 52.204-3 TAXPAYER IDENTIFICATION (OCT 1998)

K.5 52.204-20 PREDECESSOR OF OFFEROR (JUL 2016)

K.6 52.209-2 PROHIBITION ON CONTRACTING WITH INVERTED DOMESTIC CORPORATIONS—

REPRESENTATION (NOV 2015)

K.7 52.209-5 CERTIFICATION REGARDING RESPONSIBILITY MATTERS (OCT 2015)

K.8 52.209-7 INFORMATION REGARDING RESPONSIBILITY MATTERS (JUL 2013)

K.9 52.209–13 VIOLATION OF ARMS CONTROL TREATIES OR AGREEMENTS—CERTIFICATION. (JUN 2018) 94

K.10 52.230-1 COST ACCOUNTING STANDARDS NOTICES AND CERTIFICATION (OCT 2015)

K.11 52.230-7 PROPOSAL DISCLOSURE--COST ACCOUNTING PRACTICE CHANGES (APR 2005)

K.12 52.222-38 COMPLIANCE WITH VETERANS EMPLOYMENT REPORTING REQUIREMENTS (FEB

2016) 98 K.13 52.209-11 REPRESENTATION BY CORPORATIONS REGARDING DELINQUENT TAX LIABILITY OR

A FELONY CONVICTION UNDER ANY FEDERAL LAW (FEB 2016)

K.14 52.203-18, PROHIBITION ON CONTRACTING WITH ENTITIES THAT REQUIRE CERTAIN INTERNAL

CONFIDENTIALITY AGREEMENTS -REPRESENTATION (JAN 2017)

K.15 52.215-6 PLACE OF PERFORMANCE (OCT 1997)

K.16 52.222-56 CERTIFICATION REGARDING TRAFFICKING IN PERSONS COMPLIANCE PLAN (MAR 2015) 100

K.17 AUTHORIZED NEGOTIATORS

K.18 SIGNATURE

SECTION L - INSTRUCTIONS, CONDITIONS, AND NOTICES TO OFFERORS

L.1 NOTICE LISTING SOLICITATION PROVISIONS INCORPORATED BY REFERENCE

L.2 302.3.5.16(A)(1) CONSCIENCE CLAUSE IMPLEMENTATION (ACQUISITION) – SOLICITATION

PROVISION (FEB 2012)

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

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

L.5 GENERAL INSTRUCTIONS TO OFFERORS

L.6 SUBMISSION/DELIVERY INSTRUCTIONS

L.7 INSTRUCTIONS FOR THE PREPARATION OF THE TECHNICAL PROPOSAL

L.8 COST PROPOSAL INSTRUCTIONS

SECTION M - EVALUATION FACTORS FOR AWARD

M.1 GENERAL INFORMATION

M.2 EVALUATION CRITERIA

M.3 COST PROPOSAL EVALUATION

M.4 DETERMINATION OF THE COMPETITIVE RANGE AND CONTRACT AWARD

M.5 SOURCE SELECTION

M.6 CONTRACTING WITH SMALL BUSINESS CONCERNS AND DISADVANTAGED ENTERPRISES

Acronyms

AIDAR USAID Acquisition Regulation ADS Automated Directives System AMELP Activity Monitoring, Evaluation, and Learning Plan ASSP Agriculture Sector Strategic Plan CAADP Comprehensive Africa Agriculture Development Program CDCS Country Development Cooperation Strategy CLA Collaborating, Learning, and Adapting CLIN Cost Line Item COR Contracting Officer Representative CPFF Cost Plus Fixed Fee DANIDA Danish International Development Agency DO Development Objective EU European Union FAO Food and Agriculture Organization FAR Federal Acquisition Regulations FTF Feed the Future GDP Gross Domestic Product GFSS Global Food Security Strategy GIS Geographic Information Specialist GOU Government of Uganda GUC Grants Under Contracts IFAD International Fund for Agriculture Development IRs Intermediate Results JICA Japan International Cooperation Agency MAAIF Ministry of Agriculture, Animal Industry, and Fisheries M&E Monitoring and Evaluation MEL Monitoring, Evaluation, and Learning MOFPED Ministry of Finance, Planning and Economic Development MRM Monitoring and Results Measurement MTIC Ministry of Trade, Industry and Cooperatives NDP National Development Plan PEPFAR President’s Emergency Plan for AIDS Relief RFP Request for Proposal SOW Statement of Work STIP Science, Technology, Innovation and Partnership TBD To Be Determined UNAP Uganda Nutrition Action Plan USAID United States Agency for International Development USG U.S. Government WB World Bank ZOI Zone of Influence

PART I - THE SCHEDULE

SECTION B - SUPPLIES OR SERVICES AND PRICE/COSTS

B.1 PURPOSE

The purpose of this contract is to increase incomes and improve the livelihoods of households through agricultural-led inclusive economic growth.

B.2 CONTRACT TYPE

This is a Cost-Plus-Fixed-Fee (CPFF) completion-type contract. For the consideration set for the below, the Contractor will provide the deliverables or outputs described in Section C and F, in accordance with 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. The fixed fee, if any, is $TBD. The estimated cost plus fixed fee, if any, is $TBD.

(b) Within the estimated cost plus fixed fee (if any) specified in paragraph (a) above, the amount currently obligated and available for reimbursement of allowable costs incurred by the Contractor (and payment of fee, if any) for performance hereunder is $TBD. The Contractor must not exceed the obligated amount in accordance with the Limitation of Funds Clause, FAR 52.232.22.

(c) Funds obligated hereunder are anticipated to be sufficient through TBD.

B.4 BUDGET

CLIN Item Total ($) 001 Direct Costs (inclusive of subcontracts) TBD 002 Grants Under Contract (GUC)* $3,500,000 003 Indirect Costs TBD Total Estimated Cost TBD 004 Fixed Fee TBD Total Estimated Cost Plus Fixed Fee TBD

*The amount of up to $3,500,000 is a lump sum exclusively reserved for GUC. This amount does not include any relevant management or administrative expenses incurred by the Contractor.

B.5 INDIRECT COSTS

Pending establishment of revised provisional or final indirect cost rates, allowable indirect costs will be reimbursed on the basis of the following negotiated provisional or predetermined rates and the appropriate bases:

Description Rate Base Type Period

TBD TBD TBD TBD TBD

Base of Application: TBD

Type of Rate: TBD Period: TBD Source: TBD

B.6 CEILING ON INDIRECT COST RATES AND FINAL REIMBURSEMENT FOR

INDIRECT COSTS

(This section will be included if indirect ceiling rates are proposed by the Contractor)

(a) Reimbursement for allowable indirect costs shall be at the lower rate of the final negotiated (or predetermined) rates, or the following ceiling rates:

The Contractor shall not receive indirect costs that exceed TBD. The Contractor shall also negotiate ceiling indirect costs rates with their subcontractor that do not exceed TBD of their respective indirect costs rates in NICRA at time of award.

(b) The Government will not be obligated to pay any additional amount should the final indirect cost rates exceed the negotiated ceiling rates. If the final indirect cost rates are less than the negotiated ceiling rates, the negotiated rates will be reduced to conform to the lower rates. Final indirect costs exceeding the rate(s) applied to the base(s) shown above shall be absorbed by the Contractor.

(c) This understanding shall not change any monetary ceiling, obligation, or specific cost allowance or disallowance. Any changes in classifying or allocating indirect costs require the prior written approval of the Contracting Officer."

B.7 COST REIMBURSABLE

The costs allowable will be limited to reasonable, allocable and necessary costs determined in accordance with FAR 52.216-7, Allowable Cost and Payment (June 2013), FAR 52.216-8, Fixed Fee (June 2011), and AIDAR 752.7003, Documentation for Payment.

B.8 PAYMENT OF FIXED FEE

Payment of fixed fee will be in accordance with FAR 52.216-8 and 16.306(d) (1).

[END OF SECTION B]

SECTION C - STATEMENT OF WORK

C.1 ACTIVITY SUMMARY

C.1.1 Title of Activity Feed the Future Uganda Inclusive Agricultural Markets Activity (“the Activity”)

C.1.2 Purpose The purpose of the Feed the Future Uganda Inclusive Agricultural Markets Activity is to increase incomes and improve the livelihoods of households through agricultural-led inclusive economic growth.

Inclusivity refers to the active participation and engagement of all actors looking to participate in the market system, including the poor, women, youth, ethnic minorities, or other marginalized groups who are often excluded—or even exploited—by traditional market systems. This activity will contribute to the Global Food Security Strategy (GFSS) Uganda Country Plan (Attachment J.1) goal of reducing hunger, malnutrition and poverty and the USAID/Uganda Country Development Cooperation Strategy (CDCS) 2016-2021- https://www.usaid.gov/uganda/cdcs, 5-year goal of strengthening Uganda’s systems to accelerate inclusive education, health and economic outcomes.

C.1.3 Overview The Activity will focus on creating efficiencies in cross market functions (not specific to any value chain) that influence systemic changes in order to have a sustainable impact on the sector and the country. The Activity will scale up the market systems approach and focus investments on cross-market functions that enhance systemic changes. Key entry points for this activity will include 1) agro-industry/agribusiness firms, 2) Government of Uganda institutions and agencies, and 3) market actor organizations (trader networks, civil society, producer/ farmer organizations and associations etc.).

Through these entry points, the activity will align incentives and create opportunities for market actors to appropriately invest in the system. This activity is currently part of USAID/Uganda’s Feed the Future (FTF) Value Chain Development project and will be transitioned to the Market Systems Strengthening project when approved. Both projects contribute to achieving USAID Uganda’s CDCS Development Objective three (DO3): “Key systems more accountable and responsive to Uganda’s development needs”. This activity will also indirectly contribute to the achievement of USAID/Uganda’s CDCS Development Objectives one and two of “Community and Household Resilience in select areas and target populations increased” and “Demographic drivers affected to contribute to long term trend shift” respectively.

C.1.3 (a) Scope Under the first Feed the Future strategy, investments aimed to drive systemic changes through improving the enabling environment, enhancing market actor capacity, and increasing investment opportunities in three priority value chains (coffee, maize and beans). From the lessons learned through these investments, the U.S. Government (USG) has a greater understanding of where systemic changes need to take place in order to have a broader and sustainable impact on the sector and the country.

Instead of focusing on pre-selected value chains, this activity intends to invest in cross-market functions that will benefit a diversity of value chains in order to have a broader impact on the incomes and livelihoods of participating households. Although the activity will build on gains previously made and continue to promote actor-based, private sector-led models to improve market efficiencies, it will adopt a flexible approach to the selection of value chains and interventions. The Activity’s interventions will pursue opportunities under three broad value chain categories (Commodity, Staple Crop, and Nutritious Foods) as described in the GFSS Country Plan. Selecting different categories will depend on the region(s) of interest, the population targeted, and the objectives pursued. To advance inclusiveness, the Activity will implement both pull and push interventions. Pull interventions will seek to promote development of market functions to expand the quality and diversity of opportunities for poor https://www.usaid.gov/uganda/cdcs households to participate and benefit from market system improvement. Push interventions will build capacity of households to effectively engage in market activities. Push and pull interventions at all levels will complement each other and enable the activity to engage a broader range of market actors including the poor, vulnerable, and other marginalized groups, particularly women, youth, and the people of Karamoja, in order to sustainably tackle food insecurity, malnutrition, and poverty.

Additionally, programming decisions ought to take into consideration the hypothetical 14-year-old girl (median age for Uganda’s population), with special attention paid to the mechanisms that allow benefits of investments in the market system to accrue to her, her household and her community. Programming decisions also ought to take into consideration the people of Karamoja who live under a chronic state of food insecurity and ensure that such investments lead to transformative changes that positively impact their resilience. As part of the market systems strengthening project, this Activity will seek to integrate and collaborate with other market system activities for the achievement of project goals and results.

Under the CDCS, the Activity will seek integration with activities implemented under the demographics, resilience, health and governance projects in order to build synergies and amplify results throughout CDCS objectives. The Activity will also seek collaboration with other development partners, civil society, and the Government of Uganda (GOU) to address other constraints to the agriculture market system. Throughout implementation, this Activity will incorporate environmental concerns (i.e., natural resource management, climate resilience) and, where relevant, actively collaborate with biodiversity activities.

C.1.3 (b) Geographic Focus The Activity is expected to work throughout the Feed the Future Uganda Zone of Influence (ZOI). The ZOI covers 38 districts spread across four regions of Uganda (see GFSS ZOI Map-Attachment J.2).

Selection of the ZOI considered a variety of factors including:

• Areas with high levels of vulnerability, including high prevalence of stunting;

• Areas of high private sector and local government partnership potential;

• Locations of USG investments including nutrition, PEPFAR, malaria and Global Health;

• Strategic opportunities for leveraging other donors’ and GoU investments;

• Geographies near protected areas and/or areas of high levels of biodiversity.

This confluence of vulnerability, need, and partnership in the ZOI represents the U.S. Government’s best opportunity for reducing poverty over the long term, improving nutritional outcomes, and increasing the resilience of Ugandans. Therefore, where applicable, priority should be given to districts that have system elements and/ or actors with potential to serve Karamoja and refugee host districts and as needed, absorb market shocks specific to these areas. Additionally, based on the push and pull approach explained above, pull interventions such as urban-based agro-processing can be located in non-ZOI districts as long as they have impact on the ZOI districts.

C.2 BACKGROUND

A well-functioning market system for key agricultural commodities is critical to inclusive economic growth and poverty reduction. Inclusive agricultural sector development presents a major sustainable pathway out of poverty for a majority of Ugandans. Currently 84% of Uganda’s population lives in rural areas defined by the agricultural economy. At the same time for every three Ugandans who escape poverty, two fall back as the result of shocks--particularly successive shocks. Agricultural market systems change and improvement can provide most Ugandans with a structure for weathering those successive shocks. Further, since 78% of Uganda’s population is under 30, the agricultural sector presents economic opportunities for productively engaging the youth, especially female youth. The median Ugandan is a fourteen-year-old girl, vulnerable to a diversity of social, economic, political, climatic and environmental shocks. Her status is the result of a combination of factors, including systems that do not support her ambitions to thrive. Uganda’s agricultural sector is also important regionally. Uganda currently accounts for 70% of the total staple food trade between the countries of the East African Community. With growing regional food demand, there is great potential for Uganda’s farmers to benefit from expanded food exports, particularly if they are able to meet market requirements of quality and consistent volumes.

C.2.1 Agricultural Context and GOU Priorities Agriculture is the foundation of Uganda’s economy. It contributes to 26% of the GDP and one-half of foreign exchange earnings. With 84% of the population still living in the rural areas, agriculture provides the main source of livelihood and income for majority of Ugandans. Within agriculture, crop income dominates, with maize, beans, and bananas accounting for half of the total value of crop sales nationally. Uganda is the largest regional supplier of grains, contributing more than 70% of intra-East African Community trade. Grain exports include maize, sorghum, millet, and pulses. Furthermore, whereas agriculture is the source of raw materials for the agricultural-based industrial sector in Uganda, most crops is highly vulnerable to climate and weather variability1 which impact the volume and value of commodities demanded in the market.

Both the Second National Development Plan 2016-2020 (NDP 2) and Vision 2040 identify agriculture as a major contributor to economic growth and employment for the country and fundamental to achieving the goal of transforming Uganda from a low income country to an upper middle income one by 2040. The Government of Uganda’s (GOU) Agriculture Sector Strategic Plan 2016-2020 (ASSP), which is the main vehicle for driving agricultural sector growth, identifies four priority program areas that directly contribute to national goals of poverty reduction, economic growth, employment generation, expansion of exports, and improving the nutritional status of Ugandans everywhere. These program areas are: 1) increasing production and productivity; 2) increasing access to critical farm inputs; 3) improving access to agricultural markets and processing facilities; and 4) strengthening the institutional and enabling environment.

C.2.2 USAID Support to the Agricultural Sector For almost three decades, USAID/Uganda has supported core interventions focused on increasing agricultural production and marketing. More recently, building on the achievements of past efforts and leveraging other development partner resources, USAID Uganda has implemented a variety of programs through the FTF multi-year strategy (2011-2015) and five-year CDCS (2011-2015). Moving forward, USAID Uganda’s investments in the sector will be guided by the GFSS Country Plan and the current CDCS (2016-2021). The GFSS Uganda Country Plan represents strategic investments that USG departments and agencies will pursue under the three GFSS objectives of agriculture-led growth, resilience, and nutrition. Both strategies will focus investments in country-owned systems that support results-based programs and partnerships to promote inclusive agriculture sector growth and improve nutritional status, especially of women and children. They also feature cross-cutting priorities of gender equity and expanded opportunities for women and girls, as well as environmentally- sustainable and climate resilient agricultural development. Specifically for agriculture, USAID/Uganda will scale up the market systems approach by focusing investments on cross-market functions that enhance systemic changes in order to create broad impact on the sector and the economy as a whole.

C.2.3 Other Donor Programs in Agriculture The largest donors to Uganda’s agricultural sector include the United States, the World Bank (WB), Danish International Development Agency (DANIDA), Department for International Development (DFID), and the European Union (EU). Through the agricultural development partner group, donors seek to align their assistance with GOU National Development Plan II priorities in the sector. USAID is

1 USAID Climate Vulnerability Assessment (2013) an active participant in the group and has aligned its project interventions closely with the government’s strategies. USAID, the WB, and the International Fund for Agriculture Development (IFAD) are the primary organizations currently involved in supporting the public sector provision of agricultural research and advisory services. The African Development Bank, the EU and DANIDA have focused on key aspects of rural infrastructure, especially roads, while the Food and Agriculture Organization (FAO) is working on food security issues. Private sector engagement around value chain development has been largely limited to DANIDA and USAID, and to a lesser extent the EU (coffee), as well as the Japan International Cooperation Agency (JICA), which is focused on improving rice production.

C.2.4 Partnership Landscape The GOU agreed to increase inter-ministerial cooperation and embrace a multi-sectoral approach to agricultural development. The Ministry of Agriculture, Animal Industry, and Fisheries (MAAIF) convenes joint annual reviews of the sector, involving all stakeholders, as well as regular sector working group meetings with donors and civil society. Civil society organizations are active in agriculture, both in the field and in policy analysis and advocacy work focused mainly on monitoring the country’s commitments under the Comprehensive Africa Agriculture Development Program (CAADP) process. Private sector interests are well-represented on commodity-based stakeholder platforms and apex organizations. Meetings among development partners ensure coordination between the respective development partner country programs in the sector.

C.3 PROBLEM STATEMENT

The agricultural market system in Uganda is characterized by inefficiencies, distortions and weak relationships between actors that impact the volume and value of marketed products. Some of the root causes of market inefficiencies and distortions include 1) counterfeits and low quality inputs, 2) limited commodity transformation and upgrading, 3) limited access to quality services, 4) weak relationships between market actors, 5) weak policy and institutional environment, and 6) weak enforcement of formal and informal rules. Counterfeit and low quality inputs constrain on-farm productivity; limited transformation and upgrading of commodities (post-harvest handling, movement, conditioning and storage, and processing/manufacturing) limits competitiveness and profitability; and limited access to services (finance, information, extension, business development etc.) constrain the functionality of the entire system. Further, weak relationships between market actors limit their efficiency and effectiveness in responding to market demands and challenges. Uganda’s weak policy and institutional environment limits public sector investment in agriculture development and opportunities for private sector involvement. Weak enforcement of formal and informal rules limits compliance with market requirements (quality and quantity). Additionally, there are other enablers such as infrastructure, human resources, research, social-cultural norms that affect the functioning of agricultural markets.

C.3.1 Counterfeits and low quality inputs Fifty percent of seeds and the majority of agro-chemicals on the market are counterfeits which affects demand for and utilization of inputs2. For example, only 2% of Ugandan farmers use inorganic fertilizer (averaging only 1 kg/ha/year) and only 13% of Uganda’s crop area is planted with improved seed. While input use is low across the board, it is even lower among women producers, both in terms of frequency and quantity. Additionally, widespread distribution of free agricultural inputs through non-government organizations and government programs creates dependencies on handouts and undercuts local private sector input dealers.

2 Harvard, IFPRI and others, 2015

C.3.2 Limited Commodity Transformation and Upgrading Uganda predominantly exports unprocessed agricultural commodities. For example in 2015, raw material exports were worth $873 million compared to finished consumer goods valued at $582 million.

Meanwhile the combined imports of intermediate and consumer goods were over $4 billion3.

Additionally, post-harvest losses on raw materials are as high as 40%. Men dominate value addition processes through the ownership of higher-cost equipment, such as maize milling facilities, and through access to more profitable markets4. Youth also have difficulty accessing value addition processes that require capital investment or linkages to more profitable markets.

Manufacturing in Uganda consists predominantly of end-product assembling and raw materials processing, a high share of which is food processing. Both of these are low value-added activities. There are very few capital goods industries. Agro-processing firms account for about 39% of manufacturing establishments in Uganda. In addition, manufacturing firms in Uganda are high-cost producers and are characterized by high excess capacity, with installed capacity utilization averaging 50%5.

C.3.3 Limited access to quality services The agricultural markets in Uganda are constrained by limited access to quality services such as ineffective extension services including agro-meteorology services, limited access to appropriate technology, poor access to reliable and timely market information, limited access to financial services, inadequate transport and infrastructure, and overall business development services. Currently the ratio of extension workers to farmers is 1:5,000 compared to the recommended standard of 1:5006 and this impacts the volume and value of products in the market. Thirty one percent of the Ugandan population uses unregulated channels including loan sharks to access financial products and services not available through regulated institutions7. Loan sharks charge very high interest rates and farmers who borrow from these loan sharks end up losing assets and some even get displaced from their homes. In addition, there is a general absence of a sustainable model for market actors to obtain information8. Accurate information about market players such as their prices, sales turnover, profit margins and plans is often hard to find.

Market information is no longer a public good: the private sector seeks remuneration for information and yet a majority of market actors cannot afford it. Furthermore, most businesses (large and small) have limited access to business development services in areas such as accounting systems, HR/payroll support, developing business plans that are key in increasing efficiency, improving accountability, and increasing profits. This situation is reflected in a 2013 survey of women entrepreneurs that found that only 25% had obtained advice from a professional business advisor (in the past year). Barriers to accessing these services may be caused by a range of factors (lack of awareness of their availability, the absence of such services in the geographical region, affordability and/or the perception of women entrepreneurs that their enterprises are too small to benefit)9. Services addressing specific needs of youth for finance, advisory services, etc. are also mostly absent from the market.

C.3.4 Weak relationships between market actors The agricultural market system is characterized by weak relationships caused by lack of transparency and trust between actors, and lack of information. For example, non-existent or unenforceable contracts make traders fearful of side-selling. Relationships are further constrained by a general lack of effective organization of market actors such as producer organizations, traders’ associations and other platforms for engagement. For example, a majority of the approximated 40,000 active producer organizations lack the

3 World Integrated Trade Solutions (WITS), 2015 4 Gender and Social Inclusion Analysis: Uganda. USAID, 2017.

5 Uganda Country report November 2014 6 National Agricultural Extension Strategy Policy document, 2016 7 Key Uganda Financial Sector facts, 2015 8 Assessment of MIS, USAID briefing paper 2013 9 Women’s Entrepreneurship Development in Uganda. International Labor Organization, 2014 basic infrastructure to effectively operate as businesses10. Such weak relationships result in a general lack of continued and effective advocacy; present a barrier to market entry and limited trading, and poor service delivery. Women and youth are least connected. Due to the social norms and associated limited mobility and lack of market access, women have limited interaction with value-chain actors, e.g. input suppliers, wholesalers, and consumers. Youth also struggle to establish market relationships. Organizing is a key strategy for women and youth to gain access to more lucrative markets through economies of scale and pooling resources and capacities. Yet within market organizations, where they do exist, women and youth struggle to have a voice or take on leadership roles. Therefore, building functional relationships among market actors will enable them to respond adequately to the needs and challenges of market systems.

C.3.5 Weak policy and institutional environment Generally, there have been shortfalls in developing and maintaining consistent and adequate policies to facilitate improvements in the agricultural market system. Key policy development/ reform processes take decades to be completed. And even when they are completed, their implementation framework may take another decade or more to be put in place. Additionally, weak institutional and technical capacity for policy analysis and planning is a key structural problem impinging on agricultural performance. Whereas there are multiple public institutions (the Ministry of Finance, Planning and Economic Development (MOFPED), MAAIF, and the Ministry of Trade, Industry and Cooperatives (MTIC), involved in the development of policies relevant to the agricultural sector, the line ministry, MAAIF, has significant skills’ gaps that limit its ability to play an effective coordination role. Further, the existence of multiple GoU initiatives creates policy uncertainty for other stakeholders (private sector, civil society, and development partners) thereby limiting their involvement. Other key constraints are at the local government level, where agricultural sector project and policy planning is the responsibility of MAAIF’s production departments, which do not yet effectively function. This failure to maintain a consistent and functional policy and institutional environment limits public sector investment in the development and the opportunities for others to engage, particularly the private sector.

C.3.6 Weak enforcement of formal and informal rules The agricultural markets in Uganda are characterized by poorly understood and weakly enforced formal rules (i.e. policy, regulation). Uganda is estimated to lose up to US$300 million annually due to spending inefficiencies resulting from many factors including a weak legal framework and GOU capacity11.

Government lacks the will, commitment and capacity to enforce existing policies and regulations. Civil society and private sector lack the capacity to effectively lobby and advocate for relevant reforms and enforcement. Laws are generally “gender neutral” yet enforcement of customary practices disadvantages women and girls. The National Development Plan for the country recognizes the economic empowerment of women as a critical priority, yet no ministry, department or agency has been given the mandate to provide cross-governmental policy leadership and coordination for the promotion of women entrepreneurs12.

At the same time, the informal rules (social norms, organizational practices, etc.) constrain who can engage in the market and how. The ability to shift these is limited by lack of collective action, underpinned by weak relationships among market actors. These informal rules disproportionately impact women and female youth, limiting their voice, mobility, educational opportunities, options for their labor, etc. A World Bank study attributes two-fifths of the productivity gap to women’s greater child care responsibilities and one-fifth to their difficulty accessing markets from more remote areas13. In the

10 National Agriculture and Advisory Services profiling report, 2012 11 World Bank Report, 2017 12 Women’s Entrepreneurship Development in Uganda, International Labor Organization, 2014.

13 See https://blogs.worldbank.org/voices/leveling-field-women-farmers-uganda

Women’s Empowerment in Agriculture Index, workload, leisure, and access to and decisions on credit were the three lowest scoring areas--all substantially shaped by informal rules.

C.4 ACTIVITY PERFORMANCE

C.4.1 Theory of Change The overall theory of change for the Activity is:

If USAID investments inclusively facilitate agro-industry/agribusiness firms, market actor organizations, and GOU institutions to increase efficiencies in responding to demand and other changes in the market system, then there will be increased transformation and upgrading of agricultural commodities; increased and equitable utilization of quality inputs and services;

increased capacity of market actors to profitably engage in the agricultural marketplace;

strengthened implementation and enforcement of rules (formal and informal) and regulations; and strengthened and more inclusive inter and intra-actor relationships, which will ultimately lead to sustained improvements in the exchange of goods and services within the system thereby increasing incomes and improving livelihoods of households.

Assumptions:

• There will be increased political “will” (the commitment- beyond the manageable interest of the activity- of political leaders and other actors such as the President, the cabinet, the parliament, and local councils etc.) to support development and implementation of adequate policies that facilitate improvements in the agricultural market system.

• There will be no escalations of conflict in the region to outstrip expected results.

C.4.2 Objectives In line with the purpose of increasing incomes and improving the livelihoods of households through agricultural led inclusive economic growth, the activity will facilitate sustainable market improvements that create opportunities for market actor engagement. The Activity’s specific objectives are to:

1. Increase the institutional (leadership, management, technical, adaptive etc.) capacity of GOU institutions and agencies.

2. Increase the institutional (leadership, management, technical, adaptive etc.) capacity of private sector and civil society organizations.

3. Create incentives for agro-industry and agribusiness firms to respond to changes in the market system and invest in it.

These objectives imply that the Activity will drive change in the market system through three key entry points, i.e. market actor organizations, the agro-industry & agribusinesses, and GOU institutions and agencies. Consequently, the Activity will strengthen key elements of the agricultural market that support new firm entry and firm growth in pursuit of consistent and inclusive provision of competitive goods and services demanded by actors. The Activity will also strengthen enabling environment systems and structures that enhance public sector investment in development and create opportunities for others to engage, particularly the private sector. These Activity objectives contribute to achievement of all the four objectives (appropriate goods and services produced; goods and services are affordable and distributed in response to demand; quality business services available and used by market actors to produce, buy, or sell goods and services; and formal and informal rules enhance market system function) of the market systems strengthening project.

C.4.3 Expected Results The Activity is expected to achieve the following results:

1. Increased transformation and upgrading of agricultural commodities This result encompasses all forms of transformation (space, time and form) that convert agricultural commodities into consumable products. In addition, this result includes upgrading commodities to add value and quality. Both transformation and upgrading are in response to end-market/consumer requirements and preferences.

2. Increased utilization of quality inputs and services This result includes a wide range of inputs and services that support production, transformation and upgrading of goods within the market system. Inputs include seeds and other planting materials, agro-chemicals, veterinary drugs and raw materials for processing and manufacturing. Services that support the functionality of the market system includes information, finance, business development, advisory, agronomic, technological, agro-meteorology, veterinary, etc.

3. Increased capacity of market actors to profitably engage in the agricultural market This result includes all types of institutional (for organizations/firms) and individual-technical, leadership, management and adaptive capacity- that market actors either individually or as organizations/firms require to perform their roles and responsibilities in the market system.

4. Strengthened implementation and enforcement of rules and regulations This includes individual, community, organization/firms, and Government implementation and enforcement/influencing of formal and informal rules and regulations including GOU policies and regulations, local government ordinances, codes of conduct for actors etc.

5. Strengthened inter and intra-actor relationships This result speaks to vertical and horizontal relationships including but not limited to public-private partnerships; relationships within and between groups; organizations and associations; actor-agent relationships (e.g. traders and their village agents); and other actor networks. This result also includes behaviors and relationships among actors that adequately respond to the needs and challenges of market systems, enhance continued and effective advocacy, enhance trading and service delivery.

C.4.4 Required Indicators:

In addition to the custom indicators that will be proposed by Contractor, below are the required indicators that will be used to measure results as obtained from Performance Management Plan for the 2016-2021 CDCS (See attachment J.9): Detailed information on the selected indicators is found in the GFSS indicator hand (https://www.agrilinks.org/sites/default/files/ftf-indicator-handbook-march-2018-508.pdf).

Result 1 EG 3.2.-26 Value of annual sales of farms and firms receiving USG assistance (disaggregated by type of product/service, further disaggregated by producer/firm, further disaggregated by sex and age).

Result 1 & 2 EG 3.2-24: Number of individuals in the agriculture system who have applied improved management practices or technologies with USG assistance (disaggregated by market actor type, further disaggregated by sex, commodity, management type, age)

Result 3 EG 3.2-29: Number of Organizations with Increased Performance Improvement with USG assistance (disaggregated by actor type, further disaggregated by sex, age, commodity)

Result 4 EG.3.1-d Number of milestones in improved institutional architecture for food security policy achieved with USG support (disaggregated by level and institutional architecture policy element)

Result 5 In addition to traditional monitoring methods, the Contractor will design a monitoring and evaluation system that utilizes innovative approaches to measure how the Activity is changing relationships between and among market actors. Of particular interest is the quality of the relationship and definition of a strengthened relationship. Monitoring relationships and links will go beyond social or transactional network analyses and align with monitoring and evaluation requirements outlined in section C.8.

C.4.5 Illustrative Results Pathways USAID recognizes that there may be several viable results pathways and that the pathways are likely to have interlinkages.