FTF Cam Ag Partnership Hub_72044221R00008_Solicitation.pdf

Issuance Date: September 8, 2021 Questions Due Date: September 20, 2021 9:00 a.m., Cambodia time Closing Date: October 25, 2021 Closing Time: 9:00 a.m., Cambodia time

Subject: Request for Proposals (RFP) No. 72044221R00008, Feed the Future Cambodia

Agriculture Partnership Hub

To All Prospective Offerors:

The United States Agency for International Development (USAID) in Cambodia is seeking proposals from U.S. or non-U.S. non-profit or for-profit organizations to achieve the objectives set forth in the attached Request for Proposals (RFP). USAID/Cambodia anticipates awarding one cost-plus-fixed-fee (CPFF) completion form contract with a period of performance of 5 (five) years. The North American Industry Classification System (NAICS) code for this acquisition is 541690. The authorized geographic code is 937.

This procurement will be conducted under full and open competition procedures, pursuant to Part 15 of the Federal Acquisition Regulation (FAR) (48 CFR Chapter 1).

Questions and proposals must be submitted electronically on or before the dates/times stipulated above to ssao@usaid.gov and phnompenhoaa@usaid.gov. No other form of submission will be accepted. Section L of the RFP sets forth proposal requirements including instructions for the preparation and submission of required proposal content. Section M states the criteria by which proposals will be evaluated. Oral explanations or instructions given before award of the Contract will not be binding. Proposals received after the closing date and time will be processed as late and handled in accordance with FAR 15.208.

If substantive questions are received which affect the response to the solicitation, or if changes are otherwise made, USAID may amend this solicitation. Amendments will be issued and posted on https://sam.gov/. Offerors are strongly encouraged to check the sam.gov website periodically as acknowledgement of amendments is required as part of the Offeror’s submission. It is the responsibility of the Offeror to ensure that the RFP has been downloaded and received in its entirety, including subsequent solicitation amendments, if any. USAID bears no responsibility for data errors resulting from download, transmission or conversion processes. Furthermore, Offerors are advised to read the solicitation carefully.

mailto:ssao@usaid.gov mailto:phnompenhoaa@usaid.gov https://sam.gov/

RFP No.: 72044221R00008 Feed the Future Cambodia Agriculture Partnership Hub

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

Sincerely, Paul Martin Contracting Officer USAID/Cambodia

PART I—THE SCHEDULE

SECTION A – SOLICITATION/CONTRACT FORM

[See next page]

72044221R00008

SOLICITATION, OFFER AND AWARD

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

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

ORDER UNDER DPAS (15 CFR 700)

6. REQUISITION/PURCHASE NUMBER

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

NEGOTIATED (RFP)

SEALED BID (IFB)

5. DATE ISSUED

1. THIS CONTRACT IS A RATED RATING PAGE OF PAGES

4 165

C. E-MAIL ADDRESS

EXT.NUMBERAREA CODE

B. TELEPHONE (NO COLLECT CALLS)A. NAME

10. FOR

INFORMATION

CALL:

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

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

SOLICITATION

9. Sealed offers in original and

PART IV - REPRESENTATIONS AND INSTRUCTIONS

OTHER STATEMENTS OF OFFERORS

EVALUATION FACTORS FOR AWARD

INSTRS., CONDS., AND NOTICES TO OFFERORS

REPRESENTATIONS, CERTIFICATIONS AND

LIST OF ATTACHMENTS

CONTRACT CLAUSES

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

I

J

K

L

M SPECIAL CONTRACT REQUIREMENTS

CONTRACT ADMINISTRATION DATA

DELIVERIES OR PERFORMANCE

INSPECTION AND ACCEPTANCE

PACKAGING AND MARKING

DESCRIPTION/SPECS./WORK STATEMENT

SUPPLIES OR SERVICES AND PRICES/COSTS

SOLICITATION/CONTRACT FORM

PART II - CONTRACT CLAUSESPART I - THE SCHEDULE

H

G

F

E

D

C

B

A

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

11. TABLE OF CONTENTS

18. OFFER DATE17. SIGNATURE

SUCH ADDRESS IN SCHEDULE.

IS DIFFERENT FROM ABOVE - ENTER

15C. CHECK IF REMITTANCE ADDRESS

EXT.NUMBERAREA CODE

15B. TELEPHONE NUMBER

(Type or print)AND

ADDRESS

OF

OFFEROR

CODE FACILITY

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

DATEAMENDMENT NO.DATEAMENDMENT NO.

and related documents numbered and dated):

amendments to the SOLICITATION for offerors

(The offeror acknowledges receipt of

14. ACKNOWLEDGEMENT OF AMENDMENTS

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

(See Section I, Clause No. 52.232.8)

13. DISCOUNT FOR PROMPT PAYMENT

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

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

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

OFFER (Must be fully completed by offeror)

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

28. AWARD DATE

(Signature of Contracting Officer)

27. UNITED STATES OF AMERICA

25. PAYMENT WILL BE MADE BY

26. NAME OF CONTRACTING OFFICER (Type or print)

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

ITEM

(4 copies unless otherwise specified)

23. SUBMIT INVOICES TO ADDRESS SHOWN IN

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

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

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

AWARD (To be completed by government)

CODE

REQ-442-21-000022

X

720442

USAID/Cambodia Office of Acquisition & Assistance #1 Street 96 Khan Daun Penh Phnom Penh, Cambodia

0900 10/25/2021

Samsak Sao ssao@usaid.gov

PAGE(S)

Paul Martin

AUTHORIZED FOR LOCAL REPRODUCTION

Previous edition is unusable

STANDARD FORM 33 (Rev. 9-97)

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

12. In compliance with the above, the undersigned agrees, if this offer is accepted within _____0_________ calendar days (60 calendar days unless a different period is inserted x x x x x x x x x x x x x

TABLE OF CONTENTS

PURPOSE

CONTRACT TYPE

ESTIMATED COST, CEILING PRICE, FIXED FEE, AND OBLIGATED

AMOUNT

PRICE/COST SCHEDULE

INDIRECT COSTS

COST REIMBURSABLE

PAYMENT OF FIXED FEE

MULTI-YEAR CONTRACT AND CANCELLATION CEILING

TITLE OF ACTIVITY

PURPOSE

BACKGROUND AND DEVELOPMENT CHALLENGES

STRATEGIC ALIGNMENT WITH GOVERNMENT OF CAMBODIA

PRIORITIES

USAID SUPPORT TO THE AGRICULTURE SECTOR

OTHER DONOR PROGRAMS IN AGRICULTURE

DEVELOPMENT HYPOTHESIS

ACTIVITY GOAL

PERFORMANCE OBJECTIVES AND INTERMEDIATE RESULTS

GEOGRAPHIC FOCUS

GRANTS UNDER CONTRACT (GUC)

GUIDING PRINCIPLES

MONITORING, EVALUATION, AND LEARNING

STATEMENT OF WORK

AIDAR 752.7009 MARKING (JAN 1993)

BRANDING STRATEGY

BRANDING IMPLEMENTATION PLAN (BIP) AND MARKING PLAN (MP) ... 28

NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE

INSPECTION AND ACCEPTANCE

NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE

PERIOD OF PERFORMANCE

PLACE OF PERFORMANCE

PERFORMANCE STANDARDS

KEY PERSONNEL

REPORTS AND DELIVERABLES OR OUTPUTS

AUTHORIZED WORK DAY/WEEK

AIDAR 752.7003 DOCUMENTATION FOR PAYMENT (NOV 1998)

CONTRACTING OFFICE

CONTRACTING OFFICER’S REPRESENTATIVE (COR)

CONTRACTOR PRIMARY POINT OF CONTACT

PAYING OFFICE

ACCOUNTING AND APPROPRIATION DATA

TECHNICAL DIRECTIONS/RELATIONSHIP WITH USAID

SHORT-TERM PERSONNEL AND MEETINGS

USAID-FINANCED THIRD-PARTY WEB SITES (AUGUST 2013)

SUBMISSION OF DATASETS TO THE DEVELOPMENT DATA LIBRARY

(DDL) (OCTOBER 2014)

ADDITIONAL REQUIREMENTS FOR PERSONNEL COMPENSATION

AUTHORIZED GEOGRAPHIC CODE

DEFENSE BASE ACT (DBA) INSURANCE

LOGISTIC SUPPORT

LANGUAGE REQUIREMENTS

EXECUTIVE ORDER ON TERRORISM FINANCING (FEB 2002)

FOREIGN GOVERNMENT DELEGATIONS TO INTERNATIONAL

CONFERENCES (JAN 2002)

PROHIBITION OF ASSISTANCE TO DRUG TRAFFICKERS

ENVIRONMENTAL COMPLIANCE

ELECTRONIC PAYMENTS SYSTEM

RESTRICTIONS AGAINST DISCLOSURE (MAY 2016)

ELECTRONIC AND INFORMATION TECHNOLOGY ACCESSIBILITY (APRIL

2018)

LIMITATION ON ACQUISITION OF INFORMATION TECHNOLOGY (APRIL

2018)

PRIVACY AND SECURITY INFORMATION TECHNOLOGY SYSTEMS

INCIDENT REPORTING (APRIL 2018)

CLOUD COMPUTING (APRIL 2018)

COMPLIANCE WITH SECTION 508 OF THE REHABILITATION ACT OF 1973,

AS AMENDED

INHERENTLY GOVERNMENTAL AND CLOSELY ASSOCIATED FUNCTIONS

GRANTS UNDER CONTRACT

LIMITING PLASTIC POLLUTION AND MISMANAGED WASTE (MAR 2020) 73

USAID/CAMBODIA COMMUNICATIONS AND OUTREACH REQUIREMENTS

ACTIVITY LOCATION DATA

FAR PART 4.21 PROHIBITION ON CONTRACTING FOR CERTAIN COVERED

TELECOMMUNICATIONS AND VIDEO SURVEILLANCE SERVICES OR

EQUIPMENT (SECTION 889) (JANUARY 2021)

NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE

FAR 52.204-1 APPROVAL OF CONTRACT (DEC 1989)

FAR 52.204-21 BASIC SAFEGUARDING OF COVERED CONTRACTOR

INFORMATION SYSTEMS (JUN 2016)

FAR 52.222-2 PAYMENT FOR OVERTIME PREMIUMS (JUL 1990)

FAR 52.222-35 EQUAL OPPORTUNITY FOR VETERANS (JUN 2020)

FAR 52.222-36 EQUAL OPPORTUNITY FOR WORKERS WITH DISABILITIES

(JUN 2020)

FAR 52.227-23 RIGHTS TO PROPOSAL DATA (TECHNICAL) (JUN 1987)

FAR 52.229-8 TAXES - FOREIGN COST-REIMBURSEMENT CONTRACTS

(MAR 1990)

FAR 52.247-67 SUBMISSION OF TRANSPORTATION DOCUMENTS FOR

AUDIT (FEB 2006)

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

AIDAR 752.229-71 REPORTING OF FOREIGN TAXES (JULY 2007)

AIDAR 752.7005 SUBMISSION REQUIREMENTS FOR DEVELOPMENT

EXPERIENCE DOCUMENTS (SEP 2013)

AIDAR 752.7013 CONTRACTOR-MISSION RELATIONSHIPS (JUN 2018)

AIDAR 752.7027 PERSONNEL (DECEMBER 1990)

AIDAR 752.7032 INTERNATIONAL TRAVEL APPROVAL AND

NOTIFICATION REQUIREMENTS (APR 2014)

AIDAR 752.7034 ACKNOWLEDGMENT AND DISCLAIMER (DEC 1991)

AIDAR 752.7101 VOLUNTARY POPULATION PLANNING ACTIVITIES (JUN

2008)

AIDAR 752.245-70 GOVERNMENT PROPERTY – USAID REPORTING

REQUIREMENTS (OCTOBER 2017)

K.1 NOTICE LISTING SOLICITATION PROVISIONS INCORPORATED BY

REFERENCE

K.2 FAR 52.204-8 ANNUAL REPRESENTATIONS AND CERTIFICATIONS (MAR

2020)

K.3 FAR 52.204-20 PREDECESSOR OF OFFEROR (AUG 2020)

K.4 FAR 52.204-24 REPRESENTATION REGARDING CERTAIN

TELECOMMUNICATIONS AND VIDEO SURVEILLANCE SERVICES OR

EQUIPMENT (OCT 2020)

K.5 FAR 52.204-26 COVERED TELECOMMUNICATIONS EQUIPMENT OR

SERVICES-REPRESENTATION (OCT 2020)

K.6 FAR 52.209-5 CERTIFICATION REGARDING RESPONSIBILITY MATTERS

(AUG 2020)

K.7 FAR 52.209-7 INFORMATION REGARDING RESPONSIBILITY MATTERS

(OCT 2018)

K.8 FAR 52.209-11 REPRESENTATION BY CORPORATIONS REGARDING

DELINQUENT TAX LIABILITY OR A FELONY CONVICTION UNDER ANY

FEDERAL LAW (FEB 2016)

K.9 FAR 52.209-13 VIOLATION OF ARMS CONTROL TREATIES OR

AGREEMENTS-CERTIFICATION (FEB 2021)

K.10 FAR 52.222-22 PREVIOUS CONTRACTS AND COMPLIANCE REPORTS (FEB

1999)

K.11 FAR 52.222-25 AFFIRMATIVE ACTION COMPLIANCE (APR 1984)

K.12 FAR 52.227-15 REPRESENTATION OF LIMITED RIGHTS DATA AND

RESTRICTED COMPUTER SOFTWARE (DEC 2007)

K.13 FAR 52.230-1 COST ACCOUNTING STANDARDS NOTICES AND

CERTIFICATION (JUN 2020)

K.14 FAR 52.230-7 PROPOSAL DISCLOSURE-COST ACCOUNTING PRACTICE

CHANGES (APR 2005)

K.15 INSURANCE - IMMUNITY FROM TORT LIABILITY

K.16 AUTHORIZED NEGOTIATORS

K.17 SIGNATURE

NOTICE LISTING SOLICITATION PROVISIONS INCORPORATED BY

REFERENCE

FAR 52.216-1 TYPE OF CONTRACT (APR 1984)

FAR 52.233-2 SERVICE OF PROTEST (SEP 2006)

FAR 52.252-1 SOLICITATION PROVISIONS INCORPORATED BY

REFERENCE (FEB 1998)

AIDAR 752.252-1 AIDAR SOLICITATION PROVISIONS INCORPORATED BY

REFERENCE (MAR 2015)

GENERAL INSTRUCTIONS

DELIVERY INSTRUCTION

INSTRUCTIONS FOR THE PREPARATION OF THE TECHNICAL PROPOSAL

L.8.1 ORGANIZATION OF THE TECHNICAL PROPOSAL

L.8.2 PAGE LIMITATIONS

L.8.3 CONTENT OF THE TECHNICAL PROPOSAL

INSTRUCTIONS FOR THE PREPARATION OF THE COST/BUSINESS

PROPOSAL

WAIVERS UNDER FAR PART 4.2101 PROHIBITION ON COVERED

TELECOMMUNICATIONS AND VIDEO SURVEILLANCE SERVICES AND

EQUIPMENT (AUGUST 13, 2020)

GENERAL INFORMATION

TECHNICAL EVALUATION CRITERIA

FACTOR 1- TECHNICAL REQUIREMENTS (SEE SECTION L.8.3.1)

FACTOR 2 - KEY PERSONNEL AND STAFFING PLAN (SEE SECTION L.8.3.2)

FACTOR 3 - INSTITUTIONAL EXPERIENCE AND CAPABILITY (SEE

SECTION L.8.3.3)

FACTOR 4 - CONTRACTOR PAST PERFORMANCE INFORMATION (SEE

SECTION L.8.3.5)

COST/PRICE EVALUATION

DETERMINATION OF THE COMPETITIVE RANGE

SOURCE SELECTION

CONTRACTING WITH SMALL BUSINESS CONCERNS

SECTION B—SUPPLIES OR SERVICES AND PRICES/COSTS

PURPOSE

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

CONTRACT TYPE

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

ESTIMATED COST, CEILING PRICE, FIXED FEE, AND OBLIGATED

AMOUNT

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

(b) Within the estimated cost-plus fixed fee, if any, specified in paragraph (a) above, the amount currently obligated and available for reimbursement of allowable costs incurred by the Contractor (and payment of fee, if any) for performance hereunder is [TBD].

The Contractor must not exceed the aforesaid obligated amounts nor will the U.S.

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

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

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

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

PRICE/COST SCHEDULE

Line Item Supplies/Services (Description) Amount

0001 Activity Costs TBD

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

Total Estimated Cost TBD

Fixed Fee TBD

Total Estimated Cost Plus Fixed Fee (CPFF) TBD

INDIRECT COSTS

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

[the following to be inserted at award]

Description Rate Base Type Period

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

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

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

1/ Base of Application:

Type of Rate:

Period:

2/ Base of Application:

Type of Rate:

Period:

3/ Base of Application:

Type of Rate:

Period:

COST REIMBURSABLE

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

PAYMENT OF FIXED FEE

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

MULTI-YEAR CONTRACT AND CANCELLATION CEILING

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

FAR 17.106.

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

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

Contract Year Cancellation Date Cancellation Ceiling Amount

Year 1 N/A N/A

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

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

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

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

(c) Cancellation Ceiling: This is a CPFF completion type contract where the Contractor is authorized to be reimbursed for all costs which are allowable in accordance with FAR 52.216-7, “Allowable Costs and Payment.” Therefore, the Contractor must not incur any costs which would have been amortized over the life of the contract should the contract be cancelled in accordance with FAR 52.217-2. The cancellation ceiling for each cancellation date is indicated above.

[END OF SECTION B]

SECTION C— DESCRIPTION/SPECIFICATIONS/STATEMENT OF WORK

TITLE OF ACTIVITY

Feed the Future Cambodia Agriculture Partnership Hub.

PURPOSE

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

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

BACKGROUND AND DEVELOPMENT CHALLENGES

Agriculture Context:

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

Currently 61 percent of the Cambodian population live in rural areas, and 50 percent (77% of rural households) rely on agriculture, fisheries and forestry, according to Cambodia Census, 2019 and CIAS, 2019. Cambodia is at a crossroads where its agriculture production methods and markets https://documents.worldbank.org/en/publication/documents-reports/documentdetail/788321624038286598/cambodia-economic-update-road-to-recovery need to be modernized and diversified to continue to support the large number of people depending on agriculture as their main source of income and protein. On average, approximately 43 percent of a household’s budget is allocated for food-related items in Cambodia (about 47 percent in rural areas) (CSES, 2020), and about 47 percent of women of reproductive age in the zone of influence (ZOI) consume a diet of minimum diversity (Cambodia PBS, 2019). Socio-economic and gender inequalities persist, hampering access to a nutritious diet. Undernutrition is estimated to cost Cambodia approximately 1.7 percent of its annual GDP and is a major contributor to mortality and decreased health and productivity (World Food Program). Women own the majority of businesses in Cambodia (61 percent), significantly higher than in many Associations of Southeast Asian Nations (ASEAN) countries, yet women, on average, own smaller and less profitable businesses compared to men (ADB, 2018 and IFC, 2019). Women are more likely to use their own savings to start their business (57 percent, compared to 51 percent men) and the majority of women lack essential financial literacy skills (IFC, 2019). Venture capitalists and business angels are not widespread concepts in Cambodia - and certainly not in rural areas - and few male- or female-owned businesses have received support from a private investor or venture capitalist (ibid).

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

Development Challenges:

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

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

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

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

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

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

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

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

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

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

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

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

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

STRATEGIC ALIGNMENT WITH GOVERNMENT OF CAMBODIA PRIORITIES

The Feed the Future Cambodia Agriculture Partnership Hub is developed in alignment with the Royal Government of Cambodia’s strategies and priorities including Rectangular Strategy Phase IV and the National Strategic Development Plan, 2019–2023. These national strategies have identified agriculture as a major contributor to economic growth and employment creation, and to achieving the goal of transforming Cambodia from lower middle income country to upper middle income one by 2030. The Agriculture Sector Strategic Development Plan (ASDP) 2019-2023 and Agriculture Sector Master Plan (ASMP) 2030, which constitute the main vehicle for driving agriculture growth and competitiveness, identify five priority program areas that directly contribute to the national goals of transforming economic growth and diversification, employment creation, expansion of exports market, and improving well-being and alleviating poverty for all Cambodians.

The five program areas are: 1) enhancing agriculture value chains and their competitiveness; 2) strengthening infrastructure and trade facilitation in agriculture; 3) promoting public-private partnership and agri-business; 4) enhancing product quality, safety, and value added products; 5) strengthening the institutional and enabling environment.

USAID SUPPORT TO THE AGRICULTURE SECTOR

Over the past three decades, USAID/Cambodia has supported core agriculture interventions focused on increasing agricultural production and food security for all Cambodians. More recently, building on the achievements of the past efforts and leveraging other development partners' support in the agricultural sector, USAID/Cambodia has implemented a range of programs through the FTF multi-year strategy (2011-2015) and CDCS (2014-2019). Moving forward, USAID/Cambodia’s investments in the agriculture sector will be guided by the U.S. Global Food Security Strategy (GFSS) (2016-2021) and the current USAID/Cambodia CDCS (2020-2025). The current Mission’s Feed the Future investments contribute to the GFSS Objectives of agriculture-led growth, resilience and poverty alleviation, and a well-nourished population. The CDCS outlines the strategic investments that will make in support of Development Objective 1 “Inclusive and Sustainable Economic Growth Broadened” along with Immediate Result (IR) 1.1 “Accelerated Economic Diversification for Improved Livelihoods'' and IR 1.2 “Improved Business Climate to Attract Investment and Create Jobs.” Both the GFSS and CDCS will focus on investments in Cambodia that support results-based programs and partnerships to promote inclusive agriculture growth and competitiveness, improve agri-business enabling environment, and improve diets to strengthen well-being and reduce malnutrition, particularly for women and children. They also stipulate cross-cutting priorities for gender equity and expanded opportunities for women and girls, as well as sustainable and climate resilient agriculture development. Specifically for the agriculture portfolio, USAID/Cambodia will prioritize the widespread adoption of an inclusive market systems development approach by focusing on investments and private sector partnerships on cross-market functions that foster systemic changes in agriculture markets to create a broader impact on the sector and economy as a whole.

Below is a brief description of agriculture and nutrition activities supporting the Cambodian Government, and GFSS and CDCS priorities at USAID/Cambodia:

Feed the Future Cambodia Harvest II (Harvest II), April 2017 - July 2022: The Harvest II Activity aims to accelerate growth of the horticulture sector across the Feed the Future ZOI in the provinces of Pursat, Battambang, Siem Reap, and Kampong Thom, with particular emphasis on four sub-sectors: vegetables, mango, longan, and cashew. Harvest II employs a unique strategy that blends a buyer-led approach with market systems development (MSD). This approach takes horticulture buyers as the main entry point to the “market system” encompassing a wide range of relationships with farmers, other firms and partners. Harvest II facilitates and strengthens partnerships between buyers and suppliers while engaging other market actors to identify and address broader systemic market constraints in the horticulture sector.

Market Systems and Partnership (MSP), December 2020 - June 2023: USAID/Cambodia's Market Systems and Partnerships (MSP) Activity supports the implementation of private sector engagement within Feed the Future Cambodia’s market system effort to strengthen competitiveness in the agricultural sector through enhancing agricultural services and private sector engagement and investment across the agriculture value chain, with an emphasis on improving cold-chain/storage services and logistics. The primary objective is to advance Cambodia’s economic competitiveness and inclusiveness with specific emphasis on the development of the agribusiness sector and improved infrastructure and logistics, enhancing agricultural services, and promoting private sector engagement and investment across the agriculture value chain.

Feed the Future Rice Field Fisheries II (RFF II), June 2016 - September 2021: The Feed the Future Cambodia Rice Field Fisheries II aims to improve food and nutrition security for 21,000 poor, vulnerable, rural households in the ZOI in Pursat, Battambang, Siem Reap, and Kampong Thom provinces through enhancing rice field fisheries and associated food production systems and social behavior change communication.

Center of Excellence for Sustainable Agriculture Intensification and Nutrition (CE SAIN), July 2016 - June 2025: The Center of Excellence on Sustainable Agricultural Intensification and Nutrition (CE SAIN), housed in Cambodia’s Royal University of Agriculture (RUA), helps improve food and nutritional security by supporting agricultural research, education, and innovation. CE SAIN works closely with RUA to improve the skills and knowledge of those who work in agriculture across the public and private sectors. To meet these goals, CE SAIN established a platform to allow scientists and practitioners to develop and test innovations, and to demonstrate the cutting-edge agricultural practices and technologies to citizens, government, policy makers, and donor agencies. CE SAIN is also the focal point for Feed the Future Innovation Lab research projects that help Cambodian researchers and U.S. universities partners seek solutions for Cambodia’s agricultural challenges.

Integrated Early Child Development (IECD), July 2020-July 2025: The IECD Activity aims to promote nurturing care for the most vulnerable newborns and young children, starting before birth.

The IECD Activity will specifically address stunting through a multi-sectoral approach that strengthens nutrition service delivery at health facilities and in communities; supports nutrition-sensitive agriculture and improved livelihoods; improves water, sanitation, and hygiene practices among caregivers; and promotes responsive caregiving to help children meet critical cognitive, linguistic, socio-emotional, and physical developmental milestones. The focus is on the early childhood years, with an emphasis on the first 1,000 days, for more intensive nutritional, psychosocial, and physical stimulation interventions. This Activity also supports developmental milestone screening to enable the early identification of and interventions for children with developmental delays or who are at risk for impairments and disabilities.

Food Safety Network (FSN) May 2018-September 2021: The Food Safety Network will support the Cambodian Sanitary and Phytosanitary (SPS) Program to improve food safety and food security for Cambodian consumers. The overall goal of the work program is to strengthen and improve agriculture-based economic growth of Cambodian mango and cashew value chains by addressing SPS related issues and capacity gaps. The program does this by: 1) identifying critical food safety risks through an analysis of the mango and cashew value chains; 2) developing commodity specific intervention roadmaps to address these risks; 3) executing roadmap interventions in close consultations with government and private sector stakeholders to build long-term capacity; 4) improving coordination and communication among key value chain stakeholder groups; and 5) providing technical training in pest risk assessments, communication and management among other topics. In addition to technical training, the program focuses on strengthening the enabling environment for improved SPS regulatory policies and building long-term trade relationships through bi-lateral and multilateral engagements with senior officials in the Royal Government of Cambodia (primarily the Ministry of Agriculture and the Cambodia Food Safety Authority) and by leveraging and engaging U.S. Foreign Agricultural Service (FAS)’ in-country staff, USDA’s technical experts, emerging market resource programs, and a network of private sector cooperators.

OTHER DONOR PROGRAMS IN AGRICULTURE

There are various programs related to the agricultural development sector that are funded and implemented by other development partners. USAID supports overall efforts in the sector through strategic development work, serving on technical working groups, and supporting the enabling environment. While most other donor programs focus on improving productivity and diversification, USAID focuses on agriculture-led-economic growth with activities focused on private sector partnerships/engagement and agribusiness incentivization.

The following are some agriculture-related donor programs in Cambodia: The Cambodia Agricultural Sector Diversification Project funded by the World Bank that aims to facilitate the development of diversified agriculture value chains in selected geographical areas, and provide immediate and effective response in case of an eligible crisis or emergency. Australian AID funds the Cambodia-Australia Agricultural Value Chain Program Phase 2 (CAVAC II) mainly focused on productivity and diversification, irrigation infrastructure construction and improvement, and milling and export. The Swiss Agency for Development and Cooperation (SDC) funds the Cambodian Horticulture Advancing Income and Nutrition (CHAIN) to improve income and nutrition of rural households through safe horticulture production and trade in targeted rural areas is continuing its activities under a third phase. A couple of ongoing agricultural projects are co-funded by the International Fund for Agricultural Development and Royal Government of Cambodia, including Sustainable Assets for Agriculture Markets, Business and Trade Project (SAAMBAT), Accelerating Inclusive Markets for Smallholders (AIMS), and Agricultural Services Programme for Innovation, Resilience and Extension (ASPIRE). These projects are focusing mainly on agribusiness and extension services. The Asian Development Bank (ADB) is starting two new projects to improve agribusiness value chain competitiveness in support of the Cambodian government’s Agriculture Sector Strategic Development Plan and the Industrial Development Policy: the Climate-Friendly Agribusiness Value Chains Sector project and the Agricultural Value Chain Completeness and Safety Enhancement project.

DEVELOPMENT HYPOTHESIS

Cambodian agricultural productivity is low compared to that of the other countries in the region.

Climate shocks and inefficiencies in the food system negatively impact food security and nutrition status. The capacity to disseminate modern and appropriate agricultural techniques is still inadequate, including the use of agricultural inputs, application of agricultural machinery, post-harvest technology, and low value-added products. These factors lead to low agricultural production, increasing production costs and limited market competition in the Cambodian agriculture sector. In addition, farmers are facing difficulties in finding markets to sell their products and to increase their market competitiveness, given limited capacity in global food safety standards, particularly in sanitary and phyto-sanitary measures (SPS) standards.

Agriculture organizations formed to build capacity, bargaining ability, and accessibility to technical and credit services appear to have limited potential. The private sector actors involved in the agriculture sector demonstrate limited capacity and investments in processing, storage systems, warehouses, refrigerated warehouses, and transport services to enhance agro-industry development, agriculture growth, and competitiveness in local and international markets. In addition, exclusion https://www.ifad.org/web/operations/project/id/2000002278 of key market actors, including women and youth, contributes to the lack of competitiveness of agriculture markets and decreases the well-being of these groups. Inclusion is constrained by inadequate access to finance, inputs, technologies, know-how, market linkages, and diverse and more lucrative opportunities along agricultural value chains.

IF the activity reduces and mitigates inherent agricultural market risks for investors and private sector actors to engage with the underserved markets of smallholder farmers and marginalized communities/vulnerable populations (including women and youth), THEN investors and private sector actors will be able to 1) introduce new innovative technologies, services, products and distribution channels to meet the needs and improve the livelihoods of smallholder farmers and target vulnerable populations, 2) increase private investment into the larger agricultural market system including agro-processing, and 3) improve availability and access to safe nutritious foods.

All these actions will increase Cambodia’s competitiveness and strengthen the resilience of Cambodia’s market systems, which in turn will contribute to broad-based economic growth and improved livelihoods.

This development hypothesis will enable Cambodia to transform agriculture to a modern, competitive, sustainable, and resilient economic sector that will increase household incomes, prosperity, and the well-being of Cambodians. In addition, this development hypothesis will allow Cambodia to achieve its goal of achieving upper middle-income status by 2030.

Assumptions:

• There will be increasing political “will”, leaders and other actors such as Prime Minister, Parliament, ministries, inter-ministries and local authorities to support the development and implementation of adequate policies that facilitate improvement in the investment climate and agriculture market systems.

• There is peace and stability and no social unrest in Cambodia.

• Economic growth rebounds in 2021 from COVID-19 related contraction.

• The Commune Election in 2022 and National Election in 2023 will not create pressures on local and international market actors for continued investing in the agriculture sector.

• The Cambodian government remains committed to reducing land use emissions to meet its Nationally Determined Contributions under the Paris Climate Agreement.

ACTIVITY GOAL

The overarching goal of the Feed the Future Cambodia Agriculture Partnership Hub Activity is to promote sustainable, broad-based economic growth through increased diversification, inclusion, sustainability, resilience, and competitiveness in Cambodia’s agriculture sector. Through private sector engagement within key agriculture market systems, the activity will create better jobs and improve livelihoods, diets, and overall well-being for Cambodians, especially women, youth, and marginalized populations. The activity will build on investments that USAID/Cambodia has made in promoting the sustainable economic opportunities and climate-smart agriculture technologies through Feed the Future programming.