SOL-114-13-000003_(4).doc

Date Issued: April 5, 2013

Closing Date: May 20, 2013

SUBJECT:

Request for Proposals SOL-114-13-000003 –THE RESTORING EFFICIENCY TO AGRICULTURE PRODUCTION ACTIVITY (REAP) IN GEORGIA

Dear Sir/Madam:

The United States Government, represented by the United States Agency for International Development Regional Mission to the Caucasus (USAID/Caucasus), is seeking proposals to provide the services described in the attached Request for Proposals. Any type of for-profit, not-for-profit, educational, or faith-based institution may submit offers for this contract.

If you decide to submit a proposal, it must be presented in accordance with the attached solicitation and received no later than 10:00 AM local Tbilisi time on the closing date indicated above and at the place shown below. Proposals should be submitted with the name, street address, telephone number, email address of a point-of-contact who is an authorized agent of the offeror and RFP number. The proposal must be addressed to:

Sarah R. Bueter

Contracting Officer

USAID/Caucasus

Internet email for electronic submission: RCOCaucasus@usaid.gov

Street/delivery address:

USAID/Caucasus, Regional Contracting Office

11, George Balanchine Street

Tbilisi, 0131 Georgia

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. Notifications of receipt and questions concerning this RFP must be directed to the Contracting Officer via either the internet email address or facsimile numbers listed above.

Questions regarding this solicitation must be received by April 15, 2015 at mchelidze@usaid.gov.

Sincerely, Sarah R. Bueter

Regional Contracting Officer

5PART I – THE SCHEDULE

5SECTION B - Supplies or Services/Prices

5B.1 PURPOSE

5B.2 CONTRACT TYPE

5B.3 ESTIMATED COST, FIXED FEE, AND OBLIGATED AMOUNT

5B.4 PRICE SCHEDULE

5B.5 INDIRECT COSTS (DEC 1997)

6B.6 CEILING ON INDIRECT COSTS

6B.7 COST REIMBURSABLE

7SECTION C - Description/Specifications/Statement of Work

16SECTION D - Packaging and Marking

16D.1 AIDAR 752.7009 MARKING (JAN 1993)

16D.2

BRANDING STRATEGY

16D.3

AIDAR 752.7009 MARKING (JAN 1993)

18SECTION E - Inspection and Acceptance

18E.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE

18E.2 INSPECTION AND ACCEPTANCE

19SECTION F - Deliveries or Performance

19F.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE

19F.2 PERIOD OF PERFORMANCE

19F.4 PERFORMANCE STANDARDS

19F.5 REPORTS AND DELIVERABLES OR OUTPUTS

22F.6 KEY PERSONNEL

23F.7 752.7007 PERSONNEL COMPENSATION (July 2007)

24SECTION G - Contract Administration Data

24G.1 AIDAR 752.7003 DOCUMENTATION FOR PAYMENT (NOV 1998)

25G.2 ADMINISTRATIVE CONTRACTING OFFICE

25G.3 CONTRACTING OFFICER’S REPRESENTATIVE (COR)

25G.4 TECHNICAL DIRECTIONS/RELATIONSHIP WITH USAID

27G.5 PAYING OFFICE

27G.6 ACCOUNTING AND APPROPRIATION DATA

28SECTION H - Special Contract Requirements

28H.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE

28H.2 AIDAR 752.7004 EMERGENCY LOCATOR INFORMATION (JUL 1997)

28H.3 752.245-70 GOVERNMENT PROPERTY - USAID REPORTING REQUIREMENTS

30H.4 752.245-71 TITLE TO AND CARE OF PROPERTY (APR 1984)

30H.5 AIDAR 752.7031 LEAVE AND HOLIDAYS (OCT 1989)

32h.6 752.209-71 ORGANIZATIONAL Conflicts of Interest Discovered After Award (JUN 1993)

32H.7 AIDAR 752.7032 INTERNATIONAL TRAVEL APPROVAL AND NOTIFICATION REQUIREMENTS (JAN 1990)

33H.8 752.225-70 SOURCE, ORIGIN AND NATIONALITY REQUIREMENTS (FEB 2012)

33H.9 INSURANCE AND SERVICES

34H.10 752.228-70 MEDICAL EVACUATION (MEDEVAC) SERVICES (JULY 2007)

34H.11 AUTHORIZED GEOGRAPHIC CODE

34H.12 NONEXPENDABLE PROPERTY PURCHASES AND INFORMATION TECHNOLOGY RESOURCES

34H.13 LOGISTIC SUPPORT

34H.14 LANGUAGE REQUIREMENTS

35H.15 SUBCONTRACTING PLAN AND THE SF 294 – SUBCONTRACTING REPORT FOR INDIVIDUAL CONTRACTS AND SF 295 – SUMMARY CONTRACTING REPORT

35H.16 EXECUTIVE ORDER ON TERRORISM FINANCING (FEB 2002)

35H.17 302.3.5.5 REPORTING OF FOREIGN TAXES (JUL 2007)

36H.18 USAID DISABILITY POLICY - ACQUISITION (DECEMBER 2004)

36H.19 NONEXPENDABLE PROPERTY PURCHASES AND INFORMATION TECHNOLOGY RESOURCES

36H.20 GRANTS UNDER USAID CONTRACT

37H.21 CONSENT TO SUBCONTRACT

37H.22 Foreign Government Delegations to International Conferences

37H.23

ENVIRONMENTAL COMPLIANCE

40PART II – CONTRACT CLAUSES

40SECTION I - Contract Clauses

40I.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE

42I.2 FAR 52.204-1 APPROVAL OF CONTRACT (DEC 1989)

421.3 FAR 52.232-99, Providing Accelerated Payment to Small Business Subcontractors (DEVIATION) (AUG 2012)

42I.4 SUBCONTRACTS FOR COMMERCIAL ITEMS (APR 2010)

43I.5 752.202-1 USAID DEFINITIONS CLAUSE - GENERAL SUPPLEMENT FOR USE IN ALL USAID CONTRACTS (JAN 1990)

44I.6 752.211-70 LANGUAGE AND MEASUREMENT (JUN 1992)

44I.7 752.7001 BIOGRAPHICAL DATA (JUL 1997)

44I.8 752.7006 NOTICES (APR 1984)

45I.9 752.7008 USE OF GOVERNMENT FACILITIES OR PERSONNEL (APR 1984)

45I.10 752.7025 APPROVALS (APR 1984)

45I.11 752.7031 LEAVE AND HOLIDAYS (OCT 1989)

47I.12 752.228-3 Worker's Compensation Insurance (Defense Base Act).

48I.13 752.228-7 Insurance - Liability to Third Persons.

48I.14 752.229-70 Federal, State and Local Taxes.

48I.15 752.7002 Travel and Transportation. (JAN 1990)

53I.16 752.7005 SUBMISSION REQUIREMENTS FOR DEVELOPMENT EXPERIENCE DOCUMENTS (JAN 2004)

54I.17 752.7010 Conversion of U.S. Dollars to Local Currency. (APR 1984)

54I.18 752.7011 Orientation and Language Training. (APR 1984)

55I.19 752.7013 Contractor-Mission Relationships. (OCT 1989)

55I.20 752.7015 Use of Pouch Facilities. (JUL 1997)

56I.21 752.7018 Health and Accident Coverage for USAID Participant Trainees. (JAN 1999)

58I.22 752.7019 Participant Training. (JAN 1999)

58I.23 752.7023 Required Visa Form for USAID Participants. (APR 1984)

58I.24 752.7028 Differential and Allowances. (JUL 1996)

61I.25 752.7029 Post Privileges. (JUL 1993)

61I.26 752.7033 Physical Fitness. (JUL 1997)

62I.27 752.7035 Public Notices. (DEC 1991)

62I.28 752.7034 Acknowledgment and Disclaimer. (DEC 1991)

64PART III - LIST OF DOCUMENTS, EXHIBITS AND OTHER ATTACHMENTS

64SECTION J - LIST OF ATTACHMENTS

65PART IV - REPRESENTATIONS AND INSTRUCTIONS

65SECTION K - REPRESENTATIONS, CERTIFICATIONS AND OTHER STATEMENTS OF

OFFERORS

65K.1 52.204-3 TAXPAYER IDENTIFICATION (OCT 1998)

66K.2 FAR 52.204-8 ANNUAL REPRESENTATIONS AND CERTIFICATIONS (FEB 2009)

69K.3 FAR 52.209-5 CERTIFICATION REGARDING RESPONSIBILITY MATTERS (APR 2010)

71K.4 FAR 52.209-7 INFORMATION REGARDING RESPONSIBILITY MATTERS (APR 2010)

72k.5 FAR 52.209-8 Updates of Information Regarding Responsibility Matters (apr 2010)

72K.6 FAR 52.230-7 PROPOSAL DISCLOSURE--COST ACCOUNTING PRACTICE CHANGES (APR 2005)

72K.7 INSURANCE - IMMUNITY FROM TORT LIABILITY

72K.8 SIGNATURE

74SECTION L - INSTRUCTIONS, CONDITIONS, AND NOTICES TO OFFERORS

74L.1 NOTICE LISTING SOLICITATION PROVISIONS INCORPORATED BY REFERENCE

74L.2 FAR 52.252-1 SOLICITATION PROVISIONS INCORPORATED BY REFERENCE (FEB 1998)

74L.3 FAR 52.216-1 TYPE OF CONTRACT (APR 1984)

74L.4 FAR 52.233-2 Service of Protest (SEP 2006)

75L.5 GENERAL INSTRUCTIONS TO OFFERORS

75L.6 INSTRUCTIONS FOR THE PREPARATION OF THE TECHNICAL PROPOSAL

79L.7 INSTRUCTIONS FOR THE PREPARATION OF THE COST PROPOSAL

83L.8 INSTRUCTIONS FOR THE PREPARATION OF BRANDING AND MARKING PLANS

85SECTION M - EVALUATION FACTORS FOR AWARD

85M.1 EVALUATION CRITERIA

85M.2

TECHNICAL EVALUATION CRITERIA

87M.3 Cost Proposal evaluation

88M.4 DETERMINATION OF THE COMPETITIVE RANGE AND CONTRACT AWARD

89ATTACHMENTS

PART I – THE SCHEDULE

SECTION B - Supplies or Services/Prices

B.1 PURPOSE

The Restoring Efficiency to Agriculture Production Activity (REAP) in Georgia is designed to increase employment and incomes in rural areas. This will be achieved by providing assistance to Small and Medium Enterprises (SMEs) in order to support improved agricultural productivity, marketing, and processing. REAP will expand the number, quality, competitiveness, and profitability of agribusinesses serving small-holder and emerging commercial farmers in Georgia by providing demand-driven TA and grants to qualified enterprises. Facilitating the entry of new agribusinesses to the Georgian market and expanding the operations of existing enterprises will create new jobs in the agriculture sector, improve the availability of high-quality inputs and machinery services for farmers, and strengthen markets for agricultural goods and services in the country.

B.2 CONTRACT TYPE

This is a Cost-Plus-Fixed-Fee (CPFF) completion contract. For the consideration set forth below, the Contractor shall provide the results, deliverables or outputs described in Section C and F in accordance with the performance standards specified in Section F.4.

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

(a) The estimated cost for the performance of the work required hereunder, exclusive of fixed fee, if any, is TBD. The fixed fee, if any, is TBD. The estimated cost plus fixed fee, if any, is in the range of $20,000,000- $22.000,000.

(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 shall not exceed the aforesaid obligated amount.

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

B.4 PRICE SCHEDULE

a. Direct Cost

b. Grants

c. Indirect Cost

d. Fixed Fee

e. Total Cost + Fixed Fee

B.5 INDIRECT COSTS (DEC 1997)

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

Description Rate Base Type Period

1/ 1/ 1/

1/Base of Application:

Type of Rate: Predetermined

Period:

B.6 CEILING ON INDIRECT COSTS

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

Description Rate Base Type Period

1/ 1/ 1/

1/Base of Application:

Type of Rate: Predetermined

Period:

(2) The Government will not be obligated to pay any additional amount should the final indirect cost rates exceed the negotiated ceiling rates. If the final indirect cost rates are less than the negotiated ceiling rates, the negotiated rates will be reduced to conform to the lower rates.

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

B.7 COST REIMBURSABLE

The U.S. dollar costs allowable shall be limited to reasonable, allocable and necessary costs determined in accordance with FAR 52.216-7, Allowable Cost and Payment, FAR 52.216-8, Fixed Fee, if applicable, and AIDAR 752.7003, Documentation for Payment.

SECTION C - Description/Specifications/Statement of Work

TITLE: RESTORING EFFICIENCY TO AGRICULTURE PRODUCTION ACTIVITY (REAP)

I. Executive Summary

USAID/Caucasus seeks to support the development of small- and medium-sized enterprises (SMEs) in the agriculture sector of Georgia. The Restoring Efficiency to Agriculture Production activity (REAP) will make grants and technical assistance (TA) available to existing and newly-formed (start-up) private enterprises in the agriculture sector, including input suppliers, machinery service providers, storage facilities, sorting/grading centers, and small- and medium-scale processors. Grants and TA may also be provided to primary production businesses, cooperatives, or associations. Grant applicants meeting certain criteria will be provided with TA to develop viable business plans, and selected applicants will receive matching grants and additional TA to implement their business plans. The Contractor will also provide additional TA to farmers and non-grantee SMEs to improve technical and business skills and facilitate improved linkages between input suppliers, farmers, value-adding enterprises, and end markets (both domestic and international).

Through these activities, it is expected that the Contractor will achieve the following objectives:

· Sustainably increase the availability and utilization of agricultural inputs, services, and technical information among small-holder and emerging commercial farmers

· Improve the business operations, quality, and profitability of beneficiary agribusinesses

· Increase skills, yields, and incomes of farmers linked to assisted businesses

· Increase employment opportunities in rural areas

II. Background

In order for Georgia’s farmers to be able to compete in the global economy and achieve the most profitable and sustainable levels of production possible, they must have access to a variety of high-quality, competitively priced inputs and services. These production inputs include seed, seedlings, breeding stock, farm chemicals, veterinary medicines, livestock feed, machinery, and equipment. Although often not thought of in this same context, professional services, such as those of veterinarians, commercial pesticide applicators, testing laboratories and services, and private technical consultants, are also production inputs which will be increasingly important to the success of Georgian agriculture.

Generally, in recent years the situation with respect to the availability of inputs has improved due to significant investments by both the donor community and the Government of Georgia (GOG), but there are still significant constraints, including:

· Insufficient availability of machinery services

· Unavailability of particular machinery/implements required for some priority commodities

· High costs of machinery services, which are often prohibitive to small farmers

· Insufficient supply and utilization of blended fertilizers and other agro-inputs

· Intermittent supply of high quality seeds and saplings

· Limited knowledge and skills of modern, sustainable agricultural practices

Each of these constraints is briefly discussed below:

1. Insufficient availability of machinery services: In recent years, several farm service centers (FSCs) and mechanization service centers (MSCs) have been established or strengthened, resulting in more farmers within reasonable distance of being served by input suppliers. However, there is still sufficient demand to establish more FSCs and MSCs. In the case of machinery services, clients sometimes wait up to fifteen days for services at present. The 2010 Village Infrastructure Census (VIC) conducted by GeoStat examined availability of machinery services, specifically tractors and harvesters, throughout the country. Findings are presented in Table 1, below.

Table 1 - Farmer Perception of Machinery Service Availability in Georgia

Adequate Supply Moderate Shortage Acute Shortage No Need Adequate Supply Moderate Shortage Acute Shortage No Need

Racha-Lechkhumi & Kvemo Svaneti

Samegrelo & Zemo Svaneti

Source: 2010 Village Infrastructure Census

2. Unavailability of particular machinery/implements required for some priority commodities: MSCs have generally focused attention to the more important services of plowing, harrowing, cultivation and harvesting of field crops. However, vegetable and orchard crops are also grown in significant quantities in Georgia, and require special implements and equipment to provide the needed services. Farmers have cited a lack of certain types of specialty equipment used for vegetable production (garlic, onions, beans, etc.) and fruit production, including vineyard care and management.

3. High costs of machinery services, which are often prohibitive to small farmers: For many small farmers, agricultural machinery service costs are often too expensive, and the kinds of equipment available may be too large for their needs. For example, if a farmer has less than one hectare, a small garden-type machine may be all that is required. However, in many cases, such machinery is not available at the centers.

4. Insufficient supply and utilization of blended fertilizers: Local production of nitrogen (ammonium nitrate) fertilizer exists, but it is more difficult to obtain blended N-P-K fertilizer. For optimal productivity, blended fertilizers are needed, but farmers are often unaware of the benefits of such fertilizers. Farmers are also in need of technical knowledge regarding the appropriate use of fertilizers and alternative soil amendments as well as other agro-chemicals, including pesticides.

5. Intermittent supply of high quality seeds and saplings: Based on data from the 2010 VIC, only 57% of respondents reported using seeds, seedlings, or saplings purchased from retail outlets. The lowest reported use in Mtskheta-Mtianeti, Racha-Lechkhumi &, Kvemo Svaneti Regions – where less than 35% of surveyed farmers purchased such inputs. Farmers will often save seed from the prior year’s crop in order to avoid paying a premium for new seeds each year. Based on this potential to bypass paying the premium, it will be necessary for seed companies and input service firms to provide information that will convince the farmers of the benefits of purchasing high quality seeds.

6. Limited knowledge of modern, sustainable agricultural practices: Georgia’s agricultural labor force is generally considered to possess a low degree of entrepreneurship and lack of knowledge of modern production techniques. With an aging rural population due to urban migration, the situation has become more critical in the past decade. Villages typically have only a handful of semi-commercial farmers that are reasonable knowledgeable on cultivation practices. Additionally, there is virtually no extension system in Georgia, and very limited educational opportunities for professional development in agriculture.

As yields rise with improved access to and utilization of agricultural inputs, it will become more crucial to develop post-harvest handling infrastructure and a market information system that provides farmers, wholesalers, retailers, and others along the market chain with technical and market information needed to help them effectively serve market opportunities that exist. For Georgian farmers and businesses to take advantage of the significant demand for food both domestically and internationally, several constraints will need to be corrected, including:

· Insufficient availability of post-harvest handling infrastructure, such as storage, packing, grading, sorting facilities

· Poor management of existing post-harvest handling and processing facilities

· Lack of wholesale market consolidation centers

· Lack of a functioning market information system

· Inability of producers and processors to meet required food safety standards

These constraints are discussed below:

1. A major shortage of post-harvest handling facilities (storage, packing, grading, sorting, etc.) prevents farmers from being able to store their products in facilities where they can be sorted, graded, packed, and readied for shipment to markets in the form and according to the standards that markets require. Farmers and traders indicate that dry storage facilities do not exist in sufficient quantity to support the grain sector, and that cold storage facilities are not effectively used by to handle a growing supply of fruits and vegetable for fresh markets. Also, because there are large numbers of small subsistence and semi-commercial farmers with fewer than five hectares, it is necessary for post-harvest handling enterprises to assemble produce from many small farmers and transport the commodities to storage facilities where it can be readied for markets.

2. Poor management of existing post-harvest handling and processing facilities, particularly cold storage facilities, results in greatly reduced profitability. Such businesses often must confront a number of issues, including managing relationships with a large number of small farmers who supply produce of varying quality, poor technical and managerial support for operators, lack of appropriate financial tools, and costly transportation to markets.

3. The lack of wholesale market consolidation centers in appropriate locations throughout the country is a constraint to developing trade. Farmers need a place where they can bring their products for sale and receive fair market prices. Traders need a place where they can buy the products they need at fair market prices in quantities large enough to permit efficient sales to domestic or international markets.

4. The lack of a functioning market information system makes it very difficult for farmers to make market-based decisions on which commodities to produce for which markets, reducing their profitability and the overall competitiveness of the sector. Additionally, both farmers and local traders lack the ability to market products to their best advantage with incomplete knowledge of the marketplace for their goods.

5. The inability of producers and processors to meet food safety standards significantly reduces options for international trade. The European Union (EU) has placed significant focus on working with the GOG to develop and implement the required food safety standards to enter into a deep and comprehensive free trade agreement (DCFTA). In many instances, businesses believe that they are compliant, but do not fully understand the requirements. On the other hand, many businesses are aware of the compliance requirements, but lack the financial and human resources to meet them.

III. Statement of Work

The objective of REAP is to increase employment and incomes in rural areas. This will be achieved by providing assistance to SMEs in order to support improved agricultural productivity, marketing, and processing. REAP will expand the number, quality, competitiveness, and profitability of agribusinesses serving small-holder and emerging commercial farmers in Georgia by providing demand-driven TA and grants to qualified enterprises. Facilitating the entry of new agribusinesses to the Georgian market and expanding the operations of existing enterprises will create new jobs in the agriculture sector, improve the availability of high-quality inputs and machinery services for farmers, and strengthen markets for agricultural goods and services in the country.

Sub-awards, including grants, will be utilized to facilitate the achievement of activity objectives, with a particular focus on working through Georgian institutions and ensuring sustainability. The Contractor must use clear, simple, and transparent procedures for all sub-awards. REAP must provide a mechanism for “grants-under-contract” consistent with ADS 302.3.4.8, all other relevant regulations, and guidance from USAID’s Office of Acquisition and Assistance (OAA). At the direction of USAID/Caucasus, up to 5% of contract resources may be reprogrammed to assist primary producers in response to natural or man-made disasters occurring over the life of the contract.

Component One – SME Development in the Agriculture Sector

The Contractor must design a competitive matching grants program, including detailed selection criteria, focusing on the development or strengthening of agribusinesses, cooperatives or associations providing specific sets or goods or service, which may include, but are not limited to:

· FSCs, MSCs, or hybrids of the two

· Primary agricultural producers (e.g., greenhouse operators, seedling producers)

· Service/information providers (e.g., private food and soil testing laboratories)

· Small-scale storage, consolidation, processing or packaging enterprises

· Medium-scale storage, consolidation, processing or packaging enterprises

Potential grant recipients must:

· Have the capacity, or the ability to gain the capacity with limited TA, to operate their business sustainably.

· Currently provide, or plan to provide, market-based goods and/or services to small-holder and emerging commercial farmers.

· Have the willingness and ability to co-finance investment.

· Have identified sufficient demand for their goods and/or services among potential clientele.

· Specific to small- and medium-scale processing or packaging enterprises, grant applicants will only be eligible for consideration and grant funding if their operations and practices reflect internationally recognized food safety and quality standards.

· Specific to farm service centers, grant recipients will:

· Employ at least one agricultural specialist who will advise customers on appropriate products and/or services and provide training to farmers.

· Maintain a plot of land to demonstrate locally relevant agricultural production, maintenance, harvest and post-harvest techniques and practices. This may be managed entirely by the grantee or through a collaborative effort between the grantee and another entity.

· Provide training to at least 500 farmers each year, for not less than three years in total.

At a minimum, grant applicants must provide viable business and financial plans, including a detailed market assessment. Those applicants meeting certain criteria, to be determined by the Contractor, will be provided with TA to further develop their business and financial plans and market assessments, and selected applicants will receive grants and additional TA to implement their business plans.

Grants provided through REAP will not exceed 30% of the total estimated cash investment required for a new business start-up or the expansion of an existing business. Loans may be used to meet matching requirements, however in-kind contributions will not be considered. The maximum grant sizes will be:

· $10,000 to primary agriculture producers for adoption of innovative technologies;

· $75,000 to FSCs, service/information providers, and small-scale storage, consolidation, processing, or packaging enterprises;

· $150,000 to MSCs, and medium-scale storage, consolidation, processing, and packaging enterprises.

All grant recipients must work with REAP to develop a series of training opportunities for their clients. These trainings must be designed to strengthen both business and technical skills and may include such topics as financial planning, presentation skills, leadership and advocacy skills, safe pesticide use, or production techniques. While the Contractor may initially assist in offering such courses (through the development of training curricula, provision of trainers, subsidizing participant fees, etc.), USAID expects that, by the end of this activity, grant recipients will have developed a sustainable training and advisory service to meet the needs of their clientele.

Additionally, entities receiving grants to develop input supply businesses must agree to employee at least one agricultural specialist on a part-time basis.

When possible, the Contractor must explore opportunities for the use public-private partnerships, Global Development Alliances, Development Credit Authority (DCA), and other GOG or donor resources to leverage grant assistance provided through REAP.

The Contractor is responsible for:

· Prior to issuing a grant – assessing harmful distortions to local markets or businesses that may result from providing a grant and TA to an applicant;

· Subsequent to issuing a grant – monitoring for harmful distortions to local markets or businesses resulting from providing a grant and TA to an applicant, and in the event harmful distortions are observed, developing mitigating measures to offset market distortions.

Component Two – Technical Assistance Program

The Contractor must provide demand-driven TA to grant component beneficiaries to sustainably develop and expand their businesses. The Contractor must monitor grant recipients’ progress and provide additional TA over the life of the activity as needed to ensure that REAP’s objectives are sustainably met. Additionally, the Contractor must develop a system to provide similar demand-driven TA to farmers and non-grant recipient SMEs in the agriculture sector to improve their management and operations. Demand-driven TA will also be provided to facilitate improved linkages between input suppliers, farmers, value-adding enterprises, and end markets (both domestic and international). Further demand-driven TA will be provided to the MOA to facilitate the transition of GOG-owned agricultural machinery to private sector management and or ownership.

The Contractor must, as appropriate:

· Assist with developing and or updating business plans, financial plans, and/or market assessments;

· Train farmers and SME operators/managers/owners (OMOs) on business management and operation practices and skills;

· Train SME OMOs on operation and maintenance of equipment and/or facilities;

· Facilitate the development and capacity building of business associations (e.g., working with grant recipients to form industry or sector specific associations);

· Assist farming and business associations/cooperatives with identify policy issues affecting their members’ operations or business performance and develop the capacity of associations to lobby on their behalf;

· Train agricultural specialists on topics such as teaching theory, farmer outreach models, and updating technical skills and knowledge;

· Collaborate with agricultural specialists to develop training programs to be provided to clients of grant recipients;

· Provide technical training to farmers on production, harvesting and post-harvest techniques and practices;

· Assist with developing business relationships and addressing requirements of financial institutions to obtain capital for further growth or expansion;

· Facilitate relationships between value-adding agribusinesses and small-holder/emerging commercial farmers

· Facilitate sustainable access to domestic and international markets;

· Collaborate with the Ministry of Agriculture’s (MOA) extension services on training and use of demonstration plots and development of a nationwide system of private sector agricultural mechanization services.

Additionally, the Contractor must conduct an assessment of options to develop a sustainable private sector demonstration plot system in Georgia that could be used to showcase agricultural products and techniques to small-holder and emerging commercial farmers. The assessment must be completed within 3 months of contract award. The assessment should consider multiple options such as:

· Ownership and maintenance of demonstration plots by individual FSCs/MSCs;

· Partnerships between input suppliers and local farmers to do on-farm demonstrations, where input suppliers provide inputs and consultation services to the farmers, who provide the land/labor and agree to allow training groups to attend on-farm demonstrations;

· Working with business associations to manage shared demonstration plots funded through association fees

· Working with an NGO that could be funded by business and/or farmer groups to provide independent, third-party comparisons of products/techniques and trainings;

· Opportunities to partner with the MOA, Agrarian University, and/or vocational education and training schools to conduct demonstrations.

Based upon the findings of the assessment, and to the extent practical, the Contractor must include appropriate guidelines to encourage sustainability of demonstration plots in the grants manual and work with beneficiary SMEs to develop and manage their demonstration plots; the goal is to establish sustainable demonstration plots that will provide famers with long-term access to new information and support the sales efforts of SMEs.

Cross-Cutting Issues

These cross-cutting issues should be considered and integrated into the implementation of the two components described above.

Gender: Prior to implementation of activities, the Contractor must assess gender issues associated with this activity and develop a specific strategy to mitigate identified concerns. Georgia-specific statistics pertaining to gender and the agriculture sector indicate that 70 percent of workers in this sector are males and 30 percent female. However, analysis conducted by the USAID/EG office indicates that the ratio is further skewed when considering farms of large enough size to utilize mechanization services and significant amounts of purchased inputs. In addition, men are much more frequently the owners of businesses providing services in the agriculture sector. For example, only 3 of the 33 FSCs developed by the Agriculture Development Activity program under the Millennium Challenge Corporation (MCC) were women-owned. To address such inequalities in the sector, the Contractor will carry out activities to ensure equitable participation of women. The Contractor must, as appropriate:

· Identify women farmers or users of mechanized services, and provide them with specialized TA to overcome gender or cultural issues which could prevent women from participating or fully benefiting from other TA programs;

· Ensure equitable participation of men and women in training and capacity building activities;

· Develop special programs to reach out and identify women owned enterprises and women’s organizations that meet the criteria for support and perhaps a special TA program for women owned enterprises that are ‘near qualifiers.’ Active outreach is expected during solicitation for grants;

· Provide gender specific trainings and forums with competitive Georgian women business leaders and women-focused business associations to model leadership and mentor young men and women entrepreneurs.

Access to Finance: Currently, SMEs and farmers encounter obstacles when attempting to obtain working capital and long term financing at reasonable rates. The GOG and the Rural and Agricultural Development Fund are currently developing credit instruments targeted to meet the needs of farmers and agricultural enterprises. As appropriate, the Contractor must assist REAP beneficiaries in developing relationships and address the requirements of financial institutions to access available financing options. The Contractor may also work to facilitate utilization of loan guarantees through the DCA or other available credit mechanisms, including those developed by the GOG. The Contractor must, as appropriate:

· Facilitate relationships between beneficiaries and financial institutions;

· Assist beneficiaries with developing adequate financial statements and business plans for loan applications;

· Assist SMEs with developing financing or credit schemes which may be extended to their customers

· Develop a greater understanding of and demand for leasing instruments;

· Provide TA to financial institutions receiving DCAs to reach target clients.

Workforce Development: Growth in the agriculture sector will create demand for additional skilled workers and business professionals. Accordingly, the Contractor must monitor such needs of its beneficiaries and, as appropriate, assist with developing sustainable systems to satisfy their workforce needs. It is expected that REAP could target a variety of academic and workforce development institutions, such as secondary schools, public and private vocational colleges, community colleges, universities. Such activities must be designed to complement the assistance provided through the proposed MCC compact.

The Contractor must, as appropriate:

· Develop formal linkages between the private sector and academic and workforce development institutions

· Develop curricula that address existing and future needs in the agriculture sector;

· Re-train and enhance the qualifications of trainers and instructors at academic and workforce development institutions to implement new curricula;

· Strengthen job placement capacity of academic and workforce development institutions;

· Organize internships or on-the-job training programs for students of academic or workforce development institutions with private enterprises.

Environment: The development of the agriculture sector should not come at the expense of ecological health. In fact, the productivity, profitability, competitiveness, and sustainability of the agriculture sector are inextricably linked to sound environmental management. REAP must support environmental best practices in production, processing, and marketing to minimize harmful effects to the environment, such as ecosystem loss, pollution, and resource depletion or degradation. As appropriate, the Contractor must incorporate the following in its activities:

· Soil and water conservation practices;

· Integrated pest management systems;

· Measures to protect biodiversity and native varieties;

· Eco-efficient processing technologies;

· Clean production and low emission practices;

· Environmental management and monitoring systems;

· Climate change mitigation and adaptation measures.

Expected Results

Through these activities, the Contractor must maximize the scale and impact of REAP and its target indicators. At a minimum, this activity must result in the following:

1. No more than $4 million or 80 grants dispersed to FSCs, MSCs, or hybrids of the two types of centers; a minimum of 10% of grant recipients will be women-owned businesses;

2. No more than $2 million or 40 grants dispersed to primary producers, service/information providers, or small- or medium-scale storage, consolidation, processing or packaging enterprises; a minimum of 10% of grant recipients will be women-owned businesses;

3. At least 750 new jobs created at assisted SMEs;

4. At least 135,000 distinct clients purchased products or services from assisted SMEs;

5. At least $15 million in new sales of inputs and services by assisted SMEs;

6. At least 2,500 farmers utilizing or supplying primary agricultural products to assisted post-harvest SMEs;

7. At least $10 million of primary agricultural products supplied to assisted post-harvest SMEs ;

8. At least $15 million in new gross sales by assisted post-harvest SMEs;

9. At least 135,000 farmers, of which women will account for not less than 25% of total participants, participated in technical and/or business training provided by assisted primary producers or SMEs.

REAP will be implemented over a five year period. A grants manual must be developed and approved by USAID within 3 months of awarding this activity. The Contractor must issue no less than 25% of grants within 18 months of the award and no less than 90% of grants within 30 months of the award.

SECTION D - Packaging and Marking

D.1 AIDAR 752.7009 MARKING (JAN 1993)

(a) It is USAID policy that USAID-financed commodities and shipping containers, and project construction sites and other project locations be suitably marked with the USAID emblem. Shipping containers are also to be marked with the last five digits of the USAID financing document number. As a general rule, marking is not required for raw materials shipped in bulk (such as coal, grain, etc.), or for semi finished products which are not packaged.

(b) Specific guidance on marking requirements should be obtained prior to procurement of commodities to be shipped, and as early as possible for project construction sites and other project locations. This guidance will be provided through the cognizant technical office indicated on the cover page of this contract, or by the Mission Director in the Cooperating Country to which commodities are being shipped, or in which the project site is located.

(c) Authority to waive marking requirements is vested with the Regional Assistant Administrators, and with Mission Directors.

(d) A copy of any specific marking instructions or waivers from marking requirements is to be sent to the Contracting Officer; the original should be retained by the Contractor.

D.2

BRANDING STRATEGY

(a) This contract implements the Restoring Efficiency to Agricultural Production (REAP) Activity. The program is a collaborative effort between USAID and the Government of Georgia. USAID will be highly visible in leading implementation of the Activity.

(b) The contractor’s identity or logo will not be displayed.

(c) The contractor shall implement the Branding Strategy through a Branding Implementation Plan and a

Marking Plan, as approved by the COR.

In accordance with provision D.2 above, and where applicable, the Contractor shall comply with the requirements of the policy directives and required procedures outlined in USAID Automated Directive System (ADS) 320.3.2 “Branding and Marking in USAID Direct Contracting” (version from January 8, 2007) at http://www.usaid.gov/policy/ads/300/320.pdf; and USAID “Graphic Standards Manual” available at www.usaid.gov/branding, or any successor branding policy.

D.3

AIDAR 752.7009 MARKING (JAN 1993)

(a) It is USAID policy that USAID-financed commodities and shipping containers, and project construction sites and other project locations be suitably marked with the USAID emblem. Shipping containers are also to be marked with the last five digits of the USAID financing document number. As a general rule, marking is not required for raw materials shipped in bulk (such as coal, grain, etc.), or for semi-finished products which are not packaged.

(b) Specific guidance on marking requirements should be obtained prior to procurement of commodities to be shipped, and as early as possible for project construction sites and other project locations. This guidance will be provided through the COR indicated on the cover page of this contract, or by the Mission Director in the Cooperating Country to which commodities are being shipped, or in which the project site is located.

(c) Authority to waive marking requirements is vested with the Regional Assistant Administrators, and with Mission Directors.

(d) A copy of any specific marking instructions or waivers from marking requirements is to be sent to the

Contracting Officer; the original should be retained by the Contractor.

SECTION E - Inspection and Acceptance

E.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE

The following contract clauses pertinent to this section are hereby incorporated by reference (by Citation Number, Title, and Date) in accordance with the clause at FAR "52.252-2 CLAUSES INCORPORATED BY REFERENCE" in Section I of this contract. See FAR 52.252-2 for an internet address (if specified) for electronic access to the full text of a clause.

NUMBER

TITLE

DATE

FEDERAL ACQUISITION REGULATION (48 CFR Chapter 1)

52.246-3 INSPECTION OF

MAY 2001

SUPPLIES--COST-REIMBURSEMENT

52.246-5 INSPECTION OF

APR 1984

SERVICES--COST-REIMBURSEMENT

E.2 INSPECTION AND ACCEPTANCE

USAID inspection and acceptance of services, reports and other required deliverables or outputs shall take place at: USAID/Caucasus, Tbilisi, Georgia or at any other location where the services are performed and reports and deliverables or outputs are produced or submitted. The COR listed in Section G has been delegated authority to inspect and accept all services, reports and required deliverables or outputs.

SECTION F - Deliveries or Performance

F.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE

The following contract clauses pertinent to this section are hereby incorporated by reference (by Citation Number, Title, and Date) in accordance with the clause at FAR "52.252-2 CLAUSES INCORPORATED BY REFERENCE" in Section I of this contract. See FAR 52.252-2 for an internet address (if specified) for electronic access to the full text of a clause.

NUMBER TITLE

DATE

FEDERAL ACQUISITION REGULATION (48 CFR Chapter 1)

52.242-15

STOP-WORK ORDER

AUG 1989

ALTERNATE I (APR 1984)

F.2 PERIOD OF PERFORMANCE

The period of performance for this Contract is five (5) years from the date of award.

F.3 PLACE OF PERFORMANCE

Georgia.

F.4 PERFORMANCE STANDARDS

Evaluation of the Contractor's overall performance in accordance with the performance requirements set forth in Section C, will be conducted jointly by the COR and the Contracting Officer, and shall form the basis of the Contractor's permanent performance record with regard to this Contract.

F.5 REPORTS AND DELIVERABLES OR OUTPUTS

In addition to the requirements set forth for submission of reports in Sections I and J and in the AIDAR clause 752.242-70, Periodic Progress Reports, the Contractor shall submit the following reports, deliverables or outputs to the COTR specified in Section G.

All reports must be submitted in hard copy and electronic copy to USAID on the following address:

USAID/Caucasus Georgia

Economic Growth Office

11, Georgia Balanchine Street Tbilisi 0131 Georgia

Performance Monitoring

Monitoring and evaluation will be an on-going, collaborative process with the participation of the Contractor, USAID, counterparts, and other stakeholders. The Contractor must develop and submit, with the initial annual Work Plan an overall performance management plan (PMP) to the COR at USAID/Caucasus for review and approval. The PMP shall track: standard indicators of the F structure; other project-specific performance indicators (both input/output and impact) as suggested by the Contractor and/or USAID; results, milestones, and clearly defined benchmarks including the relevant target timeframe; baseline information; and data quality assessment plans. Monitoring must include the development and maintenance of regular cost-benefit analyses to track the progress of the activity in meeting its expected results, including tracking success of grantees.

Analysis and review of PMP data will ensure that the PMP effectively captures and adequately measures the expected outputs, results, outcomes, and high-level targeted results outlined in the work plan. The PMP shall be updated on an annual basis and presented as part of each annual work plan.

The Contractor must collect and submit to USAID/Georgia all applicable PMP indicator data once per fiscal year, no later than 30 days after the end of the fiscal year (i.e., September 30).

Illustrative PMP and results framework indicators are as follows, to be sex disaggregated when possible:

· Number of jobs created with USG assistance

· Incremental sales of USG-assisted SMEs

· Incremental sales of USG-assisted farms

· Total crop yields of USG-assisted agricultural producers (collected by crop)

· Number of SMEs that applied improved technologies or management practices as a result of USG assistance (including low emission processing and packaging technologies)

· Number of SMEs (excluding farms) engaged in agriculture-related manufacturing and services operating more profitably due to USG assistance

· Number of SME employees that completed USG-supported business skills training

· Number of farmers that completed USG-supported business and technical training

· Number of hectares under improved technologies or management practices as a result of USG assistance (including integrated pest management and agroforestry)

· Number of farmers applying improved technologies or management practices as a result of USG assistance (including integrated pest management and agroforestry)

· Value of new private sector investment in the agriculture sector or value chain leveraged by USG assistance

· Number of additional pieces of agricultural machinery (including tractors and related implements) available as a result of USG assistance

· Gross sales of agro-inputs and services at USG-assisted FSCs

· Number of SMEs receiving USG assistance to access bank loans

USAID or its designee will also conduct mid-term and final project evaluations.

A. Performance Reporting Timeline

The performance reporting timeline must include:

1. The initial work plan due 45 days after contract award, then annually before the commencement of subsequent contract years.

2. Annual reports due 30 days from the end of the Government fiscal year (i.e., September 30); These reports should include at a minimum an annual summary of:

a. Progress and challenges for the activity; status of work plan completion; and status of performance indicators.

b. Utilization (i.e., numbers and areas of focus) of interns from Georgian universities, trade schools, or other applicable institutions.

c. Utilization (i.e., numbers and areas of focus) of Georgian businesses, organizations, or institutions to facilitate the achievement of this project’s objectives.

d. Instances (i.e., numbers and areas of focus) when the Contractor recommends to USAID appropriate opportunities to incorporate USG personnel from various departments, agencies or organizations.

e. A summary of grant activities, including but not limited to numbers of applications received, reviewed, awarded; all grants data will be disaggregated by gender, region, and types of SMEs. Additional reporting requirements will include:

(f) A status of the business performance and sustainability of grant recipients will be addressed, and

(g) The status of potential harmful distortions to local markets or businesses and, if applicable, mitigating measures implemented by this activity.

f. Environmental management and monitoring data, including implementation and effectiveness of mitigation measures.

g. Budget to actual summary and detail.

3. Quarterly reports for fiscal quarters 1, 2, and 3 will be due 15 days from the end of the respective Government FY quarters. These reports must include at a minimum a quarterly summary of:

a. Brief updates on progress and challenges for the activity; status of work plan completion; and status of performance indicators.

b. Updates (brief narrative and indicators) on achieving performance indicators and will be used primarily for USAID operational and performance reports.

c. Utilization (i.e., numbers and areas of focus) of interns from Georgian universities, trade schools, or other applicable institutions.

d. Utilization (i.e., numbers and areas of focus) of Georgian businesses, organizations, or institutions to facilitate the achievement of this project’s objectives.

e. Instances (i.e., numbers and areas of focus) when the Contractor recommends to USAID appropriate opportunities to incorporate USG personnel from various departments, agencies or organizations.

f. A summary of grant activities, including but…