ATTACHMENT J.1 Agriculture Task Order 1.pdf

RFP 72038324R00003

Attachment J.1- Task Order 1 Modernizing the Agriculture Sector in Sri Lanka

ATTACHMENT J.1 TASK ORDER 1

SECTION B – SUPPLIES OR SERVICES AND PRICE/COSTS

B.1 PURPOSE

The purpose of this Task Order 1 is to provide services described in the Statement of Work specified in Section C to implement the Modernizing the Agriculture Sector in Sri Lanka Activity.

B.2 CONTRACT TYPE AND SERVICES

This is a Cost-Plus-Fixed-Fee (CPFF) type, completion form Task Order. For the consideration set forth in the contract, the Contractor must provide the results, deliverables and outputs as described in Section C and Section F and in accordance with the performance standards specified in Section F.

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 total estimated cost plus fixed fee, if any, is [TBD].

(b) Within the estimated cost plus fixed fee (if any) specified in paragraph a) above, the amount currently obligated and available for reimbursement of allowable costs incurred by the Contractor (and payment of fee, if any) for performance hereunder is [TBD]. The Contractor must not exceed the aforesaid obligated amount, nor will the U.S. Government (USG) be responsible for costs incurred should the Contractor do so.

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

B.4 BUDGET

[END OF SECTION B]

Item No Supplies/ Services (Description)

Quantity Unit Amount

Technical Assistances and up to $650,000 for Grants Under Contract

Lot

Estimated Cost

Fixed Fee

Total Estimated Cost + Fee

SECTION C – DESCRIPTION/SPECIFICATIONS/STATEMENT OF WORK

C.1 PURPOSE

The purpose of this task order is to provide small and medium-scale enterprises (SMEs), producer and agribusiness associations, and service providers in the agriculture sector with technical assistance and expertise to increase productivity and profitability, expand access to new markets, and promote employment and entrepreneurship. If the productivity and profitability of the food and agriculture system are improved, and if access to markets and trade opportunities is expanded, and if employment and entrepreneurship for women, youth, and marginalized groups is promoted, then inclusive and sustainable agriculture-led economic growth will be increased.

The title of this task order is Modernizing the Agriculture Sector in Sri Lanka Activity.

C.2 BACKGROUND

General Background Information and Country Context

The agricultural sector plays a vital role in Sri Lanka’s economy, employment, and food and nutrition security. It is estimated that agriculture contributed 9% of the country’s Gross Domestic Product (GDP) in 2021, providing livelihoods and income for a significant portion of the population. Accounting for 27% of the labor force, the agriculture sector is the largest employer in the country, especially in rural areas where 82% of the population lives. Half of the workforce in rural areas is employed in agriculture. Agriculture also plays a critical role in ensuring food security for the nation, and this has been heightened since COVID-19 and the economic crisis. Additionally, the sector constitutes 21% of total exports. Agriculture is closely linked to rural development, playing an important role in reducing poverty, improving living standards and narrowing the urban-rural gap.

Agriculture encompasses a wide range of sub-sectors, including crop cultivation, livestock farming, fisheries, and forestry. Crop cultivation, consisting of plantation and non-plantation crops, is a prominent sub-sector in Sri Lanka. Rice is the staple crop and paddy cultivation occupies a substantial part of arable land. The country’s self-sufficiency in rice production became strained by global price inflation for agricultural goods and inputs resulting from the pandemic and the Russian invasion of Ukraine. Former President Gotabaya Rajapaksa’s untimely and poorly executed ban on the import and usage of chemical fertilizers disrupted national rice production, leading to an acute food security crisis. Political incentives to court agrarian voters are at odds with the need for Sri Lanka to create a sustainable market-based system for rice paddy production, and to diversify both production and consumption towards a more sustainable and nutritious set of crops.

Other major crops for domestic consumption include vegetables, fruits and grains. The three traditional export crops are tea, rubber and coconut. Cinnamon and other spices are also grown as cash crops. While the agriculture sector’s share of GDP diminishes over time, the sector needs both immediate and long-term improvements to strengthen its contribution to the economy and to reduce the likelihood of a relapse into food insecurity. The sector faces several challenges that impact sector profitability and sustainability. These challenges include:

● Low productivity - The agricultural sector in Sri Lanka faces the challenges of low productivity due insecure land tenure, fragmented land holdings, small farm sizes, limited access to modern technology and inputs, inefficient farming practices and climate change impacts.

Low productivity is one of the causes of poor performance and weak global competitiveness in the agricultural sector.

● Low participation of women and youth: While women and youth constitute the largest segments of the population, they are underrepresented in the economic sphere including agriculture. Economic participation of women in the labor market remains low at 35% while youth unemployment has increased to 26%. Poor income prospects have made it difficult for the agricultural sector to attract youth.

● Land constraints - Sri Lanka has limited arable land, and available land is fragmented due to a complex legal and titling regime that deters consolidation of plots. The small landholdings make it difficult to implement mechanization and large scale production. Small landholders also often lack sufficient resources to acquire additional landholdings to gain economies of scale.

● Market access and value chains - Farmers have limited access to information and markets;

they are not effectively integrated into value chains and suffer from price fluctuations and post-harvest losses. Poor transportation and inadequate storage and processing facilities, results in post-harvest losses, price variations and low profitability.

● Lack of policy coherence and implementation capacity - Achieving policy coherence and effective implementation of policies across different government departments and agencies responsible for the sector has been a challenge. In this regard, strengthening institutional capacity, coordination and monitoring are important for successful policy implementation.

Sri Lanka’s agricultural sector presents many opportunities for growth, innovation, and sustainability, such as through product diversification, agro-processing and value addition, or technology adoption. Harnessing these opportunities and addressing challenges in agriculture requires coordinated efforts by government, agricultural institutions, farmers, and other stakeholders.

Relationship to USAID, Donor Programs and Government of Sri Lanka Policy/Strategy

This Task Order under the Economic Modernization Activity IDIQ will support USAID Sri Lanka Country Development Cooperation Strategy (CDCS) development objective (DO) 2 Inclusive Market-Driven Growth Increased, more specifically, intermediate results (IR) 2.2, “Private Sector-led Growth Promoted,” and IR2.3, “Human Capital Development Advanced.”

The Task Order will also support two US Government (USG)-wide policies. The Task Order supports the USG Global Food Security Strategy Objective 1 Inclusive and Sustainable agriculture-led economic growth, IR 1 Strengthened inclusive food and agriculture systems that are productive and profitable, IR 2 Strengthened and expanded access to markets and trade, and IR 3 Increased employment and entrepreneurship. The Task Order also supports Indo-Pacific Vision Priorities 1 Advance a free and open Indo-Pacific and 2 Drive regional prosperity.

Successful implementation of this Task Order will require close coordination with the Government of Sri Lanka (GoSL) namely the Ministry of Agriculture and Plantation Industries and affiliated Institutions, other USG funded activities, and other donor led initiatives in the agriculture sector in Sri Lanka. The establishment of a steering committee of key stakeholders is anticipated.

Relevant activities working in the same space include, but are not limited to, the following.

USAID/Sri Lanka activities:

● Climate Change Adaptation Activity (implemented by Tetra Tech);

● Ocean Plastics Reduction Activity (implemented by RTI International); and

● Fertilizer Assistance to Sri Lanka Activity (implemented by the Food and Agricultural

Organization - FAO).

U.S. Department of Agriculture activities:

● Market-Oriented Dairy (MOD) Project

Other donor activities:

● World Bank’s Agriculture Sector Modernization Project (ASMP), which aims to increase agricultural productivity, improve market access and enhance value addition of smallholder farmers and Agri businesses; Climate Smart Irrigation Agriculture Project (CSIAP) under World Bank aims to improve climate change resilience and irrigation agricultural productivity of smallholder farming communities in selected climate-vulnerable zones of Sri Lanka.

● International Fund for Agricultural Development’s (IFAD) Smallholder Agribusiness Partnership (SAPP) Program to sustainably increase the income and diet of small householders involved in commercially oriented production and marketing systems by forming and building capacity of producer groups and organizations and strengthening partnerships with the private sector.

● European Union aims contribute to a more productive, diversified, climate resilient, market oriented and equitable agriculture in Sri Lanka; and

● Korea International Cooperation Agency (KOICA) under Modernization of Plant National Plant Quarantine Service aims to improve the status of certifying quality of plant production, import and export for National Plant Quarantine Service. Also, Japan International Cooperation Agency (JICA) plans for repair and procurement of equipment for National Plant Quarantine Service.

● UN-funded activities. For example, FAO has collaborated on various initiatives to strengthen the agricultural sector. These initiatives have included policy support, capacity building for farmers, promoting agricultural diversification, and addressing challenges related to pests and diseases.

https://www.ifad.org/en/

The Task Order will complement/supplement the experience of a number of these current and previous donor-funded initiatives that sought to modernize the agriculture sector. The Contractor will collaborate and partner with other stakeholders including the private sector working in the relevant areas to efficiently and effectively meet the outcomes of the Task Order.

The GoSL’s agriculture policy in Sri Lanka is guided by national priorities to address economic, social, and environmental challenges while promoting sustainable development. The various sectoral and sub-sectoral agriculture policies recognize the need to improve crop, fishery, and livestock production; strengthen markets and value chains; address connectivity and logistics issues; and enhance private sector engagement and service delivery. These policies also acknowledge the challenges associated with sustainability, changing weather patterns, labor shortages, land fragmentation, and land degradation, which must be overcome to enhance food production and establish economically viable agricultural production. They also note the welfare of those connected to the sector and the role of the sector in human development, poverty eradication, and improved quality of life.

Key policy documents include the Overarching Agricultural Policy (2019), which focuses on creating an efficient, diversified, sustainable, market-oriented and inclusive agriculture sector.

The policy identifies core areas for strategic policy action which include increasing farm productivity; improving domestic farm-market linkages and the rural economy; increasing export earnings; and mainstreaming gender and youth.

More recently, the GoSL drafted the National Agriculture Policy (2021) for Food and Feed Crops which aims to transform and modernize the agriculture sector while safeguarding the interests of both producers and consumers. Other key policy documents cover areas such as land use, plantation industries, livestock, the rubber industry, fisheries and aquaculture, cleaner production in the agriculture sector, and agricultural research. While some of these policy documents may require updating, they still provide valuable guidance for government interventions in the sector and relevant sub-sectors.

In addition to agriculture-specific policies, several national policy and strategy documents encompass agricultural activities. These include the New Trade Policy, the National Policy on Sustainable Consumption and Development, and the National Export Strategy. While some of these policy documents similarly require updating, they also provide valuable guidance for government interventions in the sector and relevant sub-sectors.

Government interventions in agriculture focus on areas such as irrigation, research and development, training, and knowledge dissemination. Subsidy schemes were implemented to support productivity and the adoption of modern farming practices. Investments were made in tree crops, food crops, livestock, poultry, aquaculture, and fisheries to enhance production and improve infrastructure. Agricultural producers have been provided access to credit and insurance schemes, while other programs aimed at improving market efficiency and stability.

The Government also uses import tariffs to ensure food security and support farm incomes.

C.3 OBJECTIVE & SCOPE

The Modernizing the Agriculture Sector in Sri Lanka Activity has three primary objectives:

1. Strengthened and inclusive food and agricultural systems that are modern, productive and profitable.

2. Strengthened and expanded access to markets and trade.

3. Increased employment and entrepreneurship by women, youth, and other marginalized populations

This task order will be implemented under Objectives 1 (Improved Enabling Environment) and 2 (Enhanced Export Competitiveness & Growth for SMEs) of the Sri Lanka Economic Modernization Activity IDIQ.

The Contractor must provide technical assistance and expertise in a broad range of areas including support to small and medium-scale enterprises (SMEs), producer and agribusiness associations, and service providers in the agriculture sector with technical assistance and expertise to increase productivity and profitability, expand access to new markets, and promote employment and entrepreneurship.

Target beneficiaries will primarily include smallholder farmers (less than 2 hectares of land) and small and medium-scale enterprises and service providers working on crops with the most potential for agriculture-led economic growth. The Contractor will also engage with smallholders through farmer producer organizations, cooperatives, and agribusiness associations given they offer several advantages and benefits (i.e., collective bargaining power, market access, risk mitigation, access to finance, knowledge and skill sharing, economies of scale).

C.4 ILLUSTRATIVE INDICATORS

1. Objective 1: Strengthened and inclusive food and agricultural systems that are modern, productive and profitable.

● EG.5-12 Number of small and medium-sized enterprises supported by USG assistance.

● EG.3.2-24 Number of individuals in the agriculture and food system who have applied improvement management practices or technologies with USG assistance.

● EG.5.2-2 Number of private sector firms that have improved management practices or technologies as a result of USG assistance.

● EG.3.2-25 Number of hectares under improved management practices or technologies with USG assistance [IM-level]

● EG.3.2-7 Number of technologies, practices, and approaches under various phases of research, development, and uptake as a result of USG assistance [IM-level]

2. Objective 2: Strengthened and expanded access to markets and trade.

● EG.2-1 Person hours of USG-supported training completed in trade and investment.

● EG.2-12 Number of private sector enterprises with increased access to finance due to USG assistance.

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

● EG.5-15 Percentage change in sales of firms receiving USG-funded assistance.

3. Objective 3: Increased employment and entrepreneurship by women, youth, and other marginalized populations

● EG.5-2 Full-time equivalent employment of firms receiving USG assistance.

● GNDR-2 Percentage of female participants in USG-assisted programs designed to increase access to productive economic resources (assets, credit, income or employment)

● YOUTH-3: Percentage of participants who are youth (15-29) in USG-assisted programs designed to increase access to productive economic resources.

Actual indicators will be determined at the outset of implementation.

C.5 TASKS

The Contractor is expected to provide the following services:

Objective 1: STRENGTHENED AND INCLUSIVE FOOD AND AGRICULTURAL SYSTEMS THAT ARE

MODERN, PRODUCTIVE AND PROFITABLE

The Contractor will provide technical assistance and expertise to strengthen food systems and make them more inclusive. Tasks may include:

● Adopting and scaling modern agricultural technologies: Support farmers and service providers to adopt and scale modern/digital agricultural technologies and practices like precision agriculture, protected agriculture, smart irrigation systems, mechanization, tools and platforms for accessing market information and extension services. Targeted and tailored training and awareness programs in support of these improvements can help farmers understand the benefits of technology adoption. Training should be paired with access to finance initiatives. Promoting technology adoption improves efficiency and yield, leading to increased productivity. Technologies and practices adopted must be sustainable and climate smart, minimizing environmental impacts and enhancing climate resilience, while improving productivity.

● Strengthening extension services: Strengthen private sector based extension services to provide farmers, especially smallholders, with technical support, farmer field schools, and knowledge dissemination, complementing and supplementing the existing government interventions. Extension officers can offer valuable guidance on farming techniques, best practices, and the latest research findings. This facilitates the adoption of modern farming practices, improves productivity, and promotes sustainable agricultural practices.

● Enhancing access to finance and resources: Facilitate access to affordable and timely finance for farmers and agricultural entrepreneurs, especially small-scale and resource-limited individuals (particularly women and youth); help them adopt modern farming technologies and apply international best practices. This can be accomplished by reducing information asymmetries, specialized agricultural financing schemes and simplified loan processes, collaborating with smallholders through farmer producer organizations, cooperatives, and agribusiness associations, which is a holistic approach that addresses various challenges faced by individual farmers. Financial literacy and training/consulting services can also help farmers make informed financial decisions. Pairing financing mechanisms with risk reduction approaches (e.g., crop insurance) can reduce costs for both borrowers and lenders.

● Strengthening policy support and coordination: Develop and implement policies that support the growth and profitability of the agricultural sector. This includes creating an enabling policy environment, reducing subsidies, ensuring coherence and coordination among different government agencies, and actively engaging with stakeholders to address their needs and concerns.

Objective 2: STRENGTHENED AND EXPANDED ACCESS TO MARKETS AND TRADE

The Contractor will provide technical assistance and expertise to strengthen and expand access to markets and trade. Tasks may include:

● Improving market infrastructure and logistics: Support the development of market infrastructure, including storage facilities, transport networks and market centers. These enable efficient movement of agricultural produce from farmers to markets, reducing postharvest losses and improving market access for farmers.

● Increase value addition and product diversification through processing, packaging, and branding. Support the establishment of processing units, provide technical assistance on product diversification and quality improvement, and promote the branding and marketing of processed agricultural products. This opens up opportunities for higher-value markets and increases farmers' profitability.

● Strengthen value-chain linkages: Strengthen farmer producer organizations, cooperatives, and agribusiness associations (or form such groupings if they do not exist) that can collectively negotiate better prices, access bulk buyers, and fulfill market requirements, etc.

Interventions can focus on maximizing the potential benefits of formalization through providing business development services and access to finance training. In addition, market linkages may be facilitated by ensuring compliance with quality standards and certifications required by international markets as well as providing farmers with reliable and timely market information and intelligence to make informed decisions. The use of digital tools has been shown to be effective for establishing market linkages for rural/smaller farmers/SMEs.

Objective 3: INCREASED EMPLOYMENT AND ENTREPRENEURSHIP BY WOMEN, YOUTH, AND

OTHER MARGINALIZED POPULATIONS

The Contractor will provide technical assistance and expertise to increase employment and entrepreneurship by women, youth, and other marginalized populations. Tasks may include:

● Improve inclusive employment and entrepreneurship: Promote the active participation of women, youth, and other marginalized populations in value added agricultural and agriculture-adjacent employment and entrepreneurship.

● Provide targeted and tailored training (non-classroom based training on general entrepreneurship), mentoring by non-competitive peers, and access to resources for women and aspiring/young entrepreneurs to focus on agribusiness development, value addition and innovative farming practices.

● Address gender and generational gaps with supportive policies that encourage their involvement in the agriculture sector.

C.6 OPERATING CONSTRAINTS AND TASK ORDER PARAMETERS

1. Market Dynamics

The Contractor should incorporate market-based approaches in conducting the work. These approaches recognize the role of markets as powerful mechanisms for allocating resources, promoting efficiency, and driving innovation. Some examples of market-based approaches include: aligning incentives and leveraging profit motives to drive desired outcomes;

collaborating with the private sector as a key player in achieving the outcomes; utilizing market mechanisms, such as supply and demand, competition, and pricing, to achieve desired outcomes; facilitating access to finance through innovative financial instruments; focusing on strengthening entire value chains to improve efficiency and competitiveness; influencing consumer choices and behaviors through market-based strategies; gathering and utilizing market data to inform decision-making; facilitating collaborative efforts between the public and private sectors to achieve shared goals.

2. Employment Dynamics

It’s important to acknowledge that any significant transformation in an industry can bring about shifts in employment patterns. The adoption of modern agricultural technologies and mechanization may lead to increased efficiency and productivity, but it can also result in a decreased demand for manual labor in certain traditional farming practices. Improvements in market infrastructure and logistics can streamline the supply chain, potentially reducing the need for certain intermediary roles or informal channels. While promoting value addition and processing can create new job opportunities, it might also change the nature of employment, with a shift from primary production to more industrial and processing-oriented roles. The focus on inclusive employment and entrepreneurship is intended to create opportunities, especially for women, youth, and marginalized populations. However, it might also bring about changes in the distribution of roles and responsibilities within the sector. Overall efficiency gains in the agricultural sector could lead to increased productivity, which may have implications for the overall demand for labor. Efforts would be made to address potential job displacements by implementing training and reskilling programs, ensuring a smooth transition for those affected by changes in the industry.

4. Private Sector Engagement (PSE)

PSE is a strategic approach to planning and programming through which each USAID activity consults, strategizes, and collaborates with the private sector for greater scale, sustainability, and effectiveness of development. The PSE umbrella concept includes public-private partnerships (PPPs). Private sector partners bring special resources, expertise, technologies, capabilities, and other resources to the table that can augment the impact of USAID interventions when strategically aligned. PSE is key for designing market-driven solutions and sustainable investments that go beyond the life of the activity. The Contractor must identify strategic long-lasting engagement with the private sector throughout the activity’s components.

The Contractor will ensure the COR and/or their designee will be present at high level meetings with potential private sector partners. The Contractor will also seek partnerships related to digital tools and technology to support implementation of all activity components. Private sector actors engaged in this activity may include micro and small businesses, in addition to larger companies.

5. Community Participation

To promote self-reliance and long-term sustainability, the Contractor must work with community, public, and private Sri Lankan organizations to the maximum extent possible. The Contractor must engage communities in design processes, which will improve community ownership and sustainability of interventions. Increased communication and collaboration between community, public, and private actors will also contribute to leveraging public and private funding to complement USAID’s efforts.

6. Gender Equality and Social Inclusion

Gender: In Sri Lanka's agriculture sector, gender roles are deeply ingrained, with women predominantly engaged in unpaid/low paid and informal agricultural activities, while men often have greater access to formal employment and commercial farming. Gender norms influence the division of labor, limiting women's access to resources and decision-making power. Access to land and water remains a significant challenge for women in Sri Lanka's agriculture sector.

Traditional norms and discriminatory inheritance practices favor male land ownership, limiting women's ability to own, control, and inherit land. This restricts their access to credit, agricultural services, and decision-making processes.

Limited financial literacy, discriminatory lending practices, and cultural biases further hinder women's access to financial services. Women's access to agricultural extension services and training programs is often limited. Extension services tend to be male-centric and fail to address the specific needs and constraints faced by women farmers. Women's representation and participation in decision-making processes related to agriculture, such as farmer organizations, agricultural cooperatives, and policy-making bodies, is low. Limited access to information, cultural norms, and gender biases hinders women's participation and influence in shaping agricultural policies and programs. Women farmers in Sri Lanka often face challenges in accessing agricultural technologies and mechanization. Addressing these gender inequalities is crucial for achieving sustainable agriculture development, women’s empowerment, and gender equality.

In alignment with USAID’s Gender Equality and Female Empowerment Policy, USAID/Sri Lanka seeks to promote gender equality and female empowerment through its activities. The Contractor must ensure that all beneficiaries are benefiting from the activities administered under this activity without discrimination based on sex assigned at birth, sexual orientation, gender identities, or disabilities. Results for all people-level indicators reporting must be disaggregated by sex and disability as applicable. The Contractor must document unintended gender and social inclusion-related consequences of activity implementation as part of its regular reporting. The Contractor must identify development areas that indicate gender and social inclusion-specific gaps or issues that exacerbate gender inequalities and must implement measures to address these issues as appropriate.

The Contractor will ensure that plans to establish an enabling environment in which women, men, and traditionally disadvantaged groups can equally access, contribute, and benefit from activities are integrated into the work plan and regular reporting. The plans will include specific approaches or strategies that are tailored to the needs of each group. The Contractor will consider gender balance in its Key Personnel and staffing plan, and the gender sensitivity of its staff to enhance staffing capacity and knowledge and improve program implementation for women and other disadvantaged groups.

Equity: Sri Lanka experiences disparities in terms of regional development, income distribution and access to basic services. The Northern and Eastern provinces, which were affected by the Civil War, and the Estate Sector continue to face development challenges. Income inequality exists, with a significant proportion of the population living below the poverty line especially after the economic crisis. Ethnic and religious minorities including Tamils and Muslims, face discrimination and marginalization in certain contexts.

Social Inclusion: Sri Lanka is a diverse country with various ethnic, and religious communities.

Ensuring social inclusion involves recognizing and addressing the needs of all communities and ensuring their participation in the decision making processes. Efforts are needed to promote inter-ethnic and inter-religious harmony, reduce discrimination and address historical grievances. Persons with disabilities face accessibility and social barriers that hinder their full participation in society.

In addition, certain social groups such as ethnic minorities and persons with disabilities face discrimination and limited opportunities in the agriculture sector. They have limited access to land, agricultural extension services, training, financial services and market information which can perpetuate disparities in income levels and lead to conflict/violence.

The Contractor will take into account gender, equity and social inclusion implications of its activity and develop approaches to address clearly defined gaps, such as in wage rates or labor force participation rates, and promote gender mainstreaming, equity and social inclusion in Activity results.

7. Adaptive Management

The Contractor must manage adaptively and adjust to changes in emphasis under the overall scope. The Contractor will adapt its management and implementation strategy to the changing political, economic, and security context. To this end, the Contractor will continuously monitor the security situation and will coordinate with the local authorities, communities, and the USAID Security Liaison Specialist to increase or decrease the number or intensity of its interventions in target regions as needed.

8. Sustainability and Localization

The Contractor must promote the sustainability of activities supported under this task order. To the extent possible, the Contractor must provide assistance that continues to meet the needs of target beneficiaries beyond the life of the program. The Contractor must promote local ownership of the activities from the time of conception, participatory approaches in identifying activities and local partners and consideration of long term financial viability of the activities in ways that contribute to sustainability.

9. Grants Under Contract

The Contractor must utilize grants under contract (GUC) to issue grants to non-governmental organizations as part of program implementation, where appropriate. The total estimated amount of grants made under this provision will not exceed $650,000. Grants under this contract will be made to carry out activities that are consistent with the activity objectives. All applicable regulations for sub-recipients, ADS 303 and ADS 302 apply. USAID must be involved in establishing the selection criteria and prior written approval of the grant recipients per ADS 302.3.5.6(a)(2)(b).USAID retains the ability to terminate unilaterally any grant activities under extraordinary circumstances.

The Contractor will use GUC to support local organizations, in order to carry out program interventions and ensure sustainability. This includes, but is not limited to, producer associations and other similar organizations, private sector SMEs, and civil society organizations, including those that have not previously worked with USAID or who have had limited interaction with USAID activities.

10. Communications and Outreach

Communication and outreach will form an integral part of the activity's success. Stakeholders and beneficiaries of the activity will be properly informed and engaged with the project activities. The successes and achievements of the activity will be widely disseminated by the Contractor. The Contractor will have adequate resources and capabilities to ensure effective communication with relevant stakeholders and the general public. Communications with high ranking government officials must be coordinated in advance with USAID, and may not occur without the prior approval of USAID.

[END OF SECTION C]

SECTION D – PACKAGING AND MARKING

D.1 BRANDING IMPLEMENTATION PLAN AND MARKING PLAN

The Contractor must follow the approved Branding Implementation and Marking Plan submitted on [date TBD] and incorporated under the Task Order 1.

[END OF SECTION D]

SECTION E - INSPECTION AND ACCEPTANCE

E.1 INSPECTION AND ACCEPTANCE

USAID inspection and acceptance of services, reports and other required deliverables or outputs will be performed in accordance with SECTION E of the IDIQ Contract.

[END OF SECTION E]

SECTION F – DELIVERIES OR PERFORMANCE

F.1 PERFORMANCE PERIOD

The period of performance for this Task Order is 5 years from [TBD] to [TBD]

[Note to Offerors: The language in bracket will be added to the award if it is based on the Modified Foreign Assistance waiver. If the apparently successful offeror does not require a waiver, this additional language will be deleted from the award document.]

F.2 PLACE OF PERFORMANCE

The place of contract performance is Sri Lanka.

F.3 DELIVERABLES AND REPORTING REQUIREMENTS

The Contractor will submit reports, deliverables or outputs as further described below to the Task Order Contracting Officer’s Representative (TOCOR). All reports under this task order will be submitted at the times indicated below. The Contractor will, however, promptly notify the TOCOR of any problems, delays or adverse conditions which materially impair the contractor’s ability to meet the requirements of the contract. All reports will be reviewed and approved by the TOCOR. Regardless of the contract start date all reporting will be adjusted to the USG fiscal year calendar, unless otherwise specified. In addition to the reports outlined below and elsewhere in this contract, the fluid nature of the planned program may require the Contractor to respond quickly to information requests, often with little preparation time. The reports and deliverables include but are not limited to the following:

1. Annual Work Plan: The work plan must be finalized in consultation with the TOCOR and submitted to the TOCOR for approval within 90 days after the start date of the task order. The work plan must be updated periodically within the year as agreed upon with the TOCOR to reflect the approved community development activities. Any changes proposed by the contractor must be approved by the TOCOR. Draft work plans for each subsequent work year of the task order will be delivered to the TOCOR for approval 30 calendar days prior to end of the USG fiscal year and will be finalized no later than 30 calendar days after end of the USG fiscal year. Annual Work Plans must be accompanied with the detailed annual budgets.

2. Financial Reports: The Contractor is expected to provide financial information as needed for USAID budget monitoring purposes. The Contractor must submit a Financial Report no later than thirty (30) days following the end of each fiscal quarter. The Contractor will prepare and submit a Quarterly Expenditure and Projection report that disaggregates by element and contains, at a minimum:

• Total Contract budget;

• Total funds obligated to date by USAID into the Contract;

• Total funds previously reported as expended by Contractor by main line items;

• Total funds expended in the current quarter by the Contractor by main line items;

• Total unliquidated obligations by main line items;

• List of the significant expenses incurred during the period;

• Pipeline (committed funds minus expended funds); and

• Projected expenditures for the next two quarters

3.

4. Quarterly Progress Reports (QPR): The Contractor shall prepare and submit Quarterly

Progress Reports (QPR) within 30 calendar days and after end of the quarter, The QPR should include information of the task order and a summary of progress of the activities in relation to the requirements of the task order, indicating any problems encountered, and proposing remedial actions as appropriate, including how CLA was applied. The report should articulate progress toward goals, milestones, and any indicator targets, highlighting key achievements and problem areas that require USAID intervention.

The Contractor must also document progress so the successes from implementation can be shared within the Mission and Agency. The Contractor must capture and include in the QPR information about the qualitative progress of this Contract through success stories, case studies, as part of its overall reporting requirements to USAID. This information will promote the Contract’s goal in supporting the Mission as a learning Organization.

Quarterly reports must reflect key elements of the Annual Work Plan, and address at least the following:

• Activities completed under each planned intervention

• Activities to be undertaken in the following quarter

• Outputs accomplished and results realized in the quarter

• Achievements of the quarter (and cumulative to date) - specifically with an update of milestone achieved under following results:

• Progress in achieving contract deliverables

• Aggregate outputs accomplished, and results realized since activity inception

• Discussion and proposal of solutions to issues or problems that are affecting the delivery or timing of interventions, or the achievement of results of this activity

• An update of actions taken to comply with GIS and data reporting requirements

• Electronic copies of all reports, success stories, and other relevant documents prepared during the quarter (to be submitted as Attachments).

• Each quarterly report must be a stand-alone document and shall summarize all activity since the beginning of the activity.

5. Annual Reports: The annual report must be combined and submitted with the fourth quarterly report as an annual summary. The contractor should submit the annual report within 30 calendar days after the end of fiscal year. USAID will work with the Contractor during start-up to provide specific guidance on what should be included in the annual summary report. At the TOCOR’s discretion, the contractor may be required to present the report to senior Mission Management. The Annual Reports must include the following, at a minimum:

• Summarize activities and results during the year in relation to the approved Work Plan.

• Discussion and proposal of solutions to issues or problems that are affecting the delivery or timing of interventions, or the achievement of results of this activity.

• Electronic and hard copies (if requested) of all reports, success stories, and other relevant documents prepared during the year.

• Suggestions for the next annual work based on the current year performance and learning.

• Infographics (number, content, and format to be agreed in writing with the TOCOR) that visually represent the results and impact of the activity.

6. Final Program Report: Within 90 calendar days after the contract’s completion, the Contractor shall prepare and submit an electronic version (as a single MS Word file or format designated by the TOCOR) of the Contract Completion Report to the TOCOR which summarizes the accomplishments of this task order, methods of work used, recommendations regarding unfinished work and/or activity continuation, and the financial status of the agreement. At the TOCOR’s discretion, the contractor may be required to present the report to senior Mission Management.

At a minimum the final report must include:

• Report documenting life of project results and accomplishments, benchmarks, milestones defined in the work plans, and lessons learned, and financial status of the program.

• The Final Program Report shall also contain an index of all reports and information products produced under this contract.

• Along with the Completion Report, an electronic depository shall be submitted, containing all written documents, reports and presentations. The depository shall be organized in a user-friendly system.

• Once approved by the TOCOR, the Contractor shall submit the final report to the TOCOR, the Controller’s Office and the TOCOR.

7. Monitoring Evaluation and Learning Plan: The Monitoring, Evaluation, and Learning Plan (MEL plan) outlines how the Contractor intends to monitor their performance against the results laid out in the Statement of Work. The MEL plan must be informed by data that will establish the baselines for the activities and their expected targets for subsequent years.

During the initial program planning period, the Contractor will work closely with USAID to develop the MEL plan. The Contractor must submit a draft MEL Plan within 90 days after the award date. The Contractor must finalize the MEL plan following review and comments by the COR and resubmit a final MEL plan within 14 days of receipt of the COR’s comments for the COR’s approval. USAID/Sri Lanka & Maldives views overall program performance management as an iterative, collaborative approach in which assessment, planning, and design are continuous processes requiring ongoing rolling analysis and real-time monitoring and evaluation to assure flexibility and responsiveness of the program. The Contractor is responsible for specific results under the process, but must also work with USAID/Sri Lanka & Maldives to ensure that contract results contribute to higher-level program objectives within the USAID/Sri Lanka & Maldives strategic framework. The Contractor must support this continuous process through regular reviews and an integrated monitoring and evaluation system. The approved MEL plan will be effective for the life of the Contract and may be revised as appropriate in collaboration with USAID and evolving requirements from USG, and only with prior approval, in writing, from the COR. All indicator data submitted are to be supported by documentary evidence for authenticity.

USAID may use third party monitors and/or Contractors to audit and verify data collected and submitted to USAID. USAID may also conduct a performance evaluation of this award that may use sampling methods that may include lot quality assurance for this verification. Site visits may occur any time throughout the life of the Project.

(a) Activity MEL Plans must include the following:

• The activity’s monitoring approach, including any monitoring processes or information systems, and at least one relevant performance indicator for each activity-level outcome, with baseline values (or plans for collecting a baseline) and annual targets; and

• As appropriate, the activity’s procedures for:

o collecting feedback from beneficiaries; responding to feedback from beneficiaries; and reporting to USAID on beneficiary feedback;

o Expectations for collaboration between implementing partners and any external evaluations of the activity planned by the Mission or Washington OU;

o Any proposed internal evaluations;

o Plans for monitoring context and emerging risks that could affect the achievement of the activity’s results;

o Learning activities, including plans for capturing knowledge at the closeout of activities;

o Estimated resources for MEL actions that are part of the implementing partner’s budget; and o Roles and responsibilities for all proposed MEL actions.

The Activity MEL Plan should be revised as needed in response to changes in the activity or context that occur during the life of the activity

(b) Activity MEL Plan considerations:

i. Targets/Indicators:

The Contractor will develop explicit targets, including base line, quarterly update, annual, and end-of-project reporting on progress. Indicators that involve people will be disaggregated by sex (male, female) as well as any other disaggregation criteria that might be relevant for the Mission (for example, ethnicity, indigenous group affiliation, or geographic location). Indicators should be at both the output and outcome level, include relevant USAID standard indicators (https://www.state.gov/foreign-assistance-resource-library/#managing) and custom indicators, and meet USAID criteria for performance indicators - they must be direct, objective, practical, adequate, management useful, reflect progress toward achieving results, and be attributable to USAID. USAID performance indicators are subject to change and/or modification.

ii. Data Quality Assessment (DQA):

A DQA will be conducted for each performance indicator. The DQA will be conducted after the collection of the data on a new performance indicator and within the 12 months prior to the external reporting of the indicator data for the first time (such as in the PPR or external communication documents). After the initial DQA, a DQA will be conducted every three years thereafter, and more frequently if needed.

iii. Gender:

In order to ensure USAID assistance makes the optimal contribution to gender equality, the MEL Plan must include gender-sensitive indicators and sex disaggregated data. Quantitative and qualitative data must address gender impacts included in the overall analysis of the project https://www.state.gov/foreign-assistance-resource-library/#managing and anticipated results. The MEL Plan will also include other gender metrics, both the standard Foreign Assistance (F) indicators and custom indicators.

iv. Accountability and Feedback Planning:

The Contractor will outline how feedback will be collected and acted on with the intent of advancing equitable implementation and partnerships. The Contractor is strongly encouraged to involve their sub-award recipients in the process of engaging affected populations throughout the life of the activity. Subaward recipients must be a source of feedback to advance inclusive development and ensure accountability.

v. Geographic Information System (GIS) Reporting:

The Contractor must provide the COR and Mission GIS Specialist with Activity Location Data.

Given that this activity is designed to work at national, provincial, city, and community levels GIS location data must be tailored to the Contractor's approach. Data must be provided semi-annually on April 15 and October 15. For this purpose, the Contractor must fill in the appropriate Excel Spreadsheet “Activity Location Data GIS Report Template.” This template will be provided by the USAID/Sri Lanka and Maldives Program Office.

The Contractor must submit annually data for several key Performance Indicators that measure the most significant outputs/deliverables of the activity by District, Province, Divisional Secretariat (DS) or as agreed upon with USAID. This data must be submitted no later than November 15 each year and must reflect the results for the previous fiscal year, i.e the actual value of the indicator for the previous fiscal year disaggregated by geographic location. The Contractor must work closely with the COR to review the activity-level MEL plan to identify jointly key Performance Indicators that reflect and convey the most important results achieved or to be achieved. USAID is interested in Performance Indicators in the MEL that can be meaningfully disaggregated by geographic location. The number of these indicators will depend upon the complexity of the activity and could range in number approximately from 1 to 10. For this purpose, the Contractor must fill in the appropriate Excel Spreadsheet “Performance Indicators GIS Report Template.” This template will be provided by the USAID/Sri Lanka and Maldives Program Office.

If created or acquired under this award, the Contractor must provide annually on October 15 to the COR and mission GIS Specialist any of the following types of Geographic Data:

• Thematic data such as social and economic statistics at municipality level, poverty data,…