FTF-RFP- FINAL.doc

Issuance Date: 17 May 2012

Closing Date: 2 July 2012

Closing Time: 16:00 Hrs. Nepal time

Deadline for Questions: 6 June 2012 16:00 Hrs. Kathmandu, local time Subject:

Request for Proposals (RFP) No. SOL-367-12-000004 – Feed the Future (FTF) Component A and B Dear Potential Offerors:

The United States Government, represented by the U.S. Agency for International Development (USAID), is seeking proposals from qualified organizations interested in providing the services as described in the attached solicitation.

This is a full and open competition, under which any type of organization (large or small commercial [for profit] firms, educational institutions, and non-profit organizations) is eligible to compete. The procedures set forth in FAR Part 15 shall apply.

The authorized geographic code for the procurement of goods and services under this award is 937, which is defined as the United States, the cooperating/recipient country, and developing countries other than advanced developing countries, and excluding prohibited sources. This means that the Offeror must be of U.S., cooperating/recipient country or developing country nationality. USAID maintains a list of developing countries, advanced developing countries, and prohibited sources, which is available in USAID's Automated Directives System, ADS 310.

USAID plans to award a Cost plus Fixed Fee (CPFF) completion type contract with a total estimated cost ranging from $20 – $24 million covering a period of five years, subject to the availability of funds. Revealing the total estimated cost range for the contract does not mean that Offerors should necessarily strive to meet the maximum amount. Offerors must propose costs that they believe are realistic and reasonable for the work. Cost proposals will be evaluated as part of a best value determination for contract award, including cost effective approaches to achieving the results.

USAID encourages the participation to the maximum extent possible of small business concerns, small disadvantaged business concerns and women-owned small business concerns in this activity as the prime contractor or as subcontractors in accordance with Part 19 of the FAR.

If substantive questions are received which affect the response to the solicitation, or if changes are made to the closing date and time, as well as other aspects of the RFP, this solicitation will be amended. Any amendments to this solicitation will be issued and posted on the Federal Business Opportunities (FedBizOpps) website. Offerors are encouraged to check this website (http://www.fedbizopps.gov) periodically.

An Interested Vendor List is not included in this solicitation. Offerors can register and use the Interested Vendor List (IVL) on the FedBizOpps page, so that firms can contact one another for consideration of teaming arrangements and/or small business subcontracting opportunities in response to this solicitation.

It is the responsibility of the recipient of this solicitation to ensure that the solicitation has been received from the Internet in its entirety. USAID bears no responsibility for data errors resulting from transmission or conversion processes.

Please pay careful attention to Section K - Representations, Certifications and Acknowledgements of the accompanying Request for Proposals. Offerors are now expected to comply with FAR clause 52.204-7, Central Contractor Registration, and complete the annual representations and certifications electronically via the Online Representations and Certifications Application website at http://orca.bpn.gov.

Offerors must be aware that OFAC License No. SDGT-760f, dated 29 February 2012, was issued by the U.S. Department of Treasury, Office of Foreign Assets Control (OFAC). This license authorizes USAID, the Department of State, and U.S.

grantees and contractors of USAID and the Department of State to engage in certain transactions with the Government of Nepal, notwithstanding involvement of the Communist Party of Nepal-Maoist in the Government of Nepal.

A copy of the license is attached under section J of this RFP and will be incorporated into any final contract resulting from this solicitation. The Contractor shall comply with all conditions stated in the license, including all certification, reporting and record-keeping requirements. The point of contact for the OFAC license for this RFP is Thomas Kress, e-mail: tkress@usaid.gov , telephone: 977-1-400-7200 ext. 4674 and Tulsi Acharya e-mail: tacharya@usaid.gov, telephone: 977-1-400-7200 ext. 4224.

Any questions regarding this RFP must be submitted in writing via e-mail to Ram Gurung at rgurung@usaid.gov and Pradeep Neupane at pneupane@usaid.gov, with a copy to Craig Riegler at cRiegler@usaid.gov. Questions must be submitted no later than 1600 hours Nepal time on 6 June 2012.

Offerors must carefully adhere to Section L - Instructions to Offerors and Section M - Evaluation Factors for Award. Sections B through J of the solicitation will become the basis for the contract. Any blanks in Sections B through J will be completed by the Contracting Officer before award.

The Proposal shall be prepared in two separate parts: the Technical Proposal shall address technical aspects only while the Business (Cost) Proposal shall present the costs and address related issues such as responsibility. Offerors shall submit one (1) original and five (5) copies of their Technical Proposal in a sealed envelope, which is clearly marked as being in response to this RFP. Offerors shall submit one (1) original and two (2) copies of their Business Proposal separately in a sealed envelope indicating that it is in response to this RFP and contains cost information. One copy each of the technical and business proposals shall also be submitted within the sealed envelopes on electronic medium (disk or CD) with text in WORD and budgets in EXCEL. Proposals must be signed by an official who is authorized to bind the organization.

Issuance of this solicitation does not in any way obligate the U.S. Government to award a contract nor does it commit the U.S. Government to pay for costs incurred in the preparation and submission of a proposal. Furthermore, the Government reserves the right to reject any and all offers, if such action is considered to be in the best interest of the Government.

Thank you for your interest in USAID programs.

Sincerely, Thomas M. Stephens

Regional Contracting Officer

USAID/Regional Development Mission Asia

Table of Contents

Page

SECTION A - SOLICITATION/CONTRACT FORM

SF 33 SOLICITATION, OFFER AND AWARD

PART I - THE SCHEDULE

SECTION B - SUPPLIES OR SERVICES AND PRICE/COSTS

B.1 PURPOSE

B.2 CONTRACT TYPE AND SERVICES

B.3 ESTIMATED COST, FIXED FEE, OBLIGATED AMOUNT

B.4 BUDGET SCHEDULE

B.5 INDIRECT COSTS

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

INDIRECT COSTS CEILING ON FIXED FEE

B.7 COST REIMBURSABLE

SECTION C - DESCRIPTION/SPECIFICATIONS/STATEMENT OF WORK

SECTION D - PACKAGING AND MARKING

D.1 AIDAR 752.7009 MARKING (JAN 1993)

D.2 BRANDING STRATEGY

D.3 OUTREACH

SECTION E - INSPECTION AND ACCEPTANCE

E.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE

E.2 INSPECTION AND ACCEPTANCE

SECTION F - DELIVERIES OR PERFORMANCE

F.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE

F.2 PERIOD OF PERFORMANCE (CPFF)

F.3 PERFORMANCE STANDARDS

F.4 REPORTS AND DELIVERABLES OR OUTPUTS

F.5 KEY PERSONNEL

F.6 PLACE OF PERFORMANCE

F.7 AUTHORIZED WORK DAY/ WEEK

F.8 SUBMISSION OF DEVELOPMENT EXPERIENCE DOCUMENTATION

SECTION G - CONTRACT ADMINISTRATION DATA

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

G.2 ADMINISTRATIVE CONTRACTING OFFICE

G.3 CONTRACTING OFFICER'S AUTHORITY

G.4 CONTRACTING OFFICER’S REPRESENTATIVE (COR)

G.5 TECHNICAL DIRECTIONS/RELATIONSHIP WITH USAID

G.6 ACCEPTANCE AND APPROVAL

G.7 INVOICES

G.8 PAYING OFFICE

……………………………….….85

G.9 ACCOUNTING AND APPROPRIATION DATA

SECTION H - SPECIAL CONTRACT REQUIREMENTS

H.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE

H.2 AIDAR 752.225-70 SOURCE, AND NATIONALITY REQUIREMENTS (FEB 2012)

H.3 AIDAR 752.7004 EMERGENCY LOCATOR INFORMATION (JUL 1997)

H.4 AIDAR 752.7005 SUBMISSION REQUIREMENTS FOR DEVELOPMENT EXPERIENCE DOCUMENTS

(JAN 2004)

H.5 INSURANCE AND SERVICES

H.6 AIDAR 752.228-70 MEDICAL EVACUATION (MEDEVAC) SERVICES (JULY 2007)

.88

H.7 AUTHORIZED GEOGRAPHIC CODE

H.8 NONEXPENDABLE PROPERTY PURCHASES AND INFORMATION TECHNOLOGY RESOURCES

H.9 LOGISTIC SUPPORT

H.10 LANGUAGE REQUIREMENTS

H.11 SUBCONTRACTING PLAN AND THE SF 294 – SUBCONTRACTING REPORT FOR INDIVIDUAL CONTRACTS AND SF 295 – SUMMARY CONTRACTING REPORT H.12

SUBCONTRACTING CONSENT…………………………………………………………………………………….89

H.13 EMPOLYMENT COSTS OF THIRD COUNTRY NATIONALS AND COOPERATING COUNTRY NATIONALS…………………………………………………………………………………………………………….90

H.14 EXECUTIVE ORDER ON TERRORISM FINANCING (FEB 2002)

H.15 FOREIGN GOVERNMENT DELEGATIONS TO INTERNATIONAL CONFERENCES (JAN 2002)

H.16 REPORTING OF FOREIGN TAXES (MAR 2006)

H.17 AIDAR 752.7007, PERSONNEL COMPENSATION (JUL 2007)

.91

H.18 HOMELAND SECURITY PRESIDENTIAL DIRECTIVE -12

(HSPD-12) (SEPTEMBER 2006) …...……….91

H.19 SALARY SUPPLEMENTS (OCT 1998)

.92

H.20 USAID DISABILITY POLICY (DEC 2004)

.92

H.21 ENVIRONMENTAL COMPLIANCE

.92

H.22 PARTICIPANT TRAINING AND EXCHANGE OF VISITORS……………………………………………………...93

H.23 PROHIBITION AGAINST DISCRIMITATION (OCT 2011)………………………………………………………

PART II - CONTRACT CLAUSES

SECTION I - CONTRACT CLAUSES

………95

I.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE………………………….

……...95 I.2 52.203-13 CONTRACTOR CODE OF BUSINESS ETHICS AND CONDUCT (APR 2010)……………………...98

I.3 52.204-01 APPROVAL OF CONTRACT (DEC 1989)……………………………………………………………….100

I.4 52.204-7 CENTRAL CONTRACTOR REGISTRATION (FEB 2012)……………………………………………..100

I.5 52.204-10 REPORTING EXECUTIVE COMPENSATION AND FIRST-TIER

SUBCONTRACT AWARDS (FEB 2012)………………………………………………………………...101

I.6 52.209-7 INFORMATION REGARDING RESPONSIBILITY MATTERS (FEB 2012)…………………………..103

I.7 52.209–9 UPDATES OF PUBLICLY AVAILABLE INFORMATION REGARDING

RESPONSIBILITY MATTERS (FEB 2012)

I.8 52.217-8 OPTION TO EXTEND SERVICES (NOV 1999)………………………………………………………...105

I.9 52.222-50 COMBATING TRAFFICKING IN PERSONS (FEB 2009)……………………………………………...105

I.10 52.227-23 RIGHTS TO PROPOSAL DATA (TECHNICAL) (JUN 1987)………………………………………

I.11 52.229-8 TAXES—Foreign Cost-Reimbursement Contracts (MAR 1990)………………………..106

I.12 52.232-25 PROMPT PAYMENT (OCT 2008)………………………………………………………………………...106

I.13 52.252-2 CLAUSES INCORPORATED BY REFERENCE (FEB 1998)………………………………………….109

I.14 AIDAR 752.7032 INTERNATIONAL TRAVEL APPROVAL AND NOTIFICATION REQUIREMENTS

(JAN 1990)…………………………………………………………………………………………………..109

I.15 752.242-70 PERIODIC PROGRESS REPORTS (OCT 2007)……………………………………………………...110

I.16 PUBLICATIONS AND MEDIA RELEASES (JAN 2004)…………………………………………………………….110

PART III - LIST OF DOCUMENTS, EXHIBITS AND OTHER ATTACHMENTS……………………………………………..112

SECTION J - LIST OF ATTACHMENTS………………………………………………………………………………………….112

PART IV - REPRESENTATIONS AND INSTRUCTIONS……………………………………………………………………..113

SECTION K - REPRESENTATIONS, CERTIFICATIONS AND OTHER STATEMENTS OF OFFERORS……………..113 K.1 NOTICE LISTING SOLICITATION PROVISIONS INCORPORATED BY REFERENCE…………………………..113 K.2 52.204-8 ANNUAL RERESENTATIONS AND CERTIFICATIONS (MAR 2012)…………………………………….113

K.3 52.204-3 TAXPAYER IDENTIFICATION (OCT 1998)………………………………………………………………….115

K.4 52.204-6 DATA UNIVERSAL NUMBERING SYSTEM (DUNS) NUMBER (APR 2008)…………………………

K.5 52.204-7 CENTRAL CONTRACTOR REGISTRATION (FEB 2012)………………………………………………….117

K.6 52.230-1 COST ACCOUNTING STANDARDS NOTICES AND CERTIFICATIONS (OCT 2008)………………...118

K.7 52.230-7 PROPOSAL DISCLOSURE –COST ACCOUNTING PRACTICE CHANGE (APR 2005)……………….120

K.8 INSURANCE - IMMUNITY FROM TORT LIABILITY…………………………………………………………………

K.9 52.209-5 CERTIFICATION REGARDING RESPONSIBILITY MATTERS (APR 2010)……………………………..120 K.10 52.209-7 INFORMATION REGARDING RESPONSIBILITY MATTERS (FEB 2012)……………………………122 K.11 52.209-9 UPDATES OF INFORMATION REGARDINGRESPONSIBILITY MATTERS (JAN 2011)…………..123

K.12 SIGNATURE……………………………………………………………………………………………………………..123

SECTION L - INSTRUCTIONS, CONDITIONS, AND NOTICES TO OFFERORS…………………………………………124

L.1 NOTICE LISTING SOLICITATION PROVISIONS INCORPORATED BY REFERENCE………………………124

L.2 FAR 52.215-1 INSTRUCTIONS TO OFFERORS – COMPETITIVE ACQUISITION (JAN 2004)……………..124 L.3 52.204-6 DATA UNIVERSAL NUMBERING SYSTEM (DUNS) NUMBER (APR 2008)………………………..127

L.4 52.216-1 TYPE OF CONTRACT (APR 1984)……………………………………………………………………….127

L.5 52.233-2 SERVICE OF PROTEST (AUG 1996)…………………………………………………………………….127

L.6 52.252-1 SOLICITATION PROVISIONS INCORPORATED BY REFERENCE (FEB 1998)………………….128

L.7 GENERAL INSTRUCTIONS TO OFFERORS………………………………………………………………………128

L.8 INSTRUCTIONS FOR THE PREPARATION OF THE TECHNICAL PROPOSAL……………………………...129

L.9 INSTRUCTIONS FOR THE PREPARATION OF BRANDING STRATEGY AND MARKING PLAN………….135

L.10 INSTRUCTIONS FOR THE PREPARATION OF THE COST PROPOSAL…………………………………….135

L.11 GENERAL ASSUMPTIONS AND OTHER INSTRCUTIONS…………………………………………………….139

L.12 OFAC LICENSE……………………………………………………………………………………………………….140

SECTION M - EVALUATION FACTORS FOR AWARD………………………………………………………………………141

M.1 GENERAL INFORMATION……………………………………………………………………………………………141

M.2 TECHNICAL EVALUATION CRITERIA……………………………………………………………………………...142

M.3 DETERMINATION OF THE COMPETITIVE RANGE AND CONTRACT AWARD……………………………...143

M.4 CONTRACTING WITH SMALL BUSINESS CONCERNS AND DISADVANTAGED ENTEPRISES………….143

ATTACHMENTS…………………………………………………………………………………………………………………..144

ATTACHMENT 1 IDENTIFICATION OF PRINCIPAL GEOGRAPHIC CODE NUMBERS………………………….144

ATTACHMENT 2 USAID FORM 1420-17 - CONTRACTOR EMPLOYEE BIOGRAPHICAL DATA SHEET……..145

ATTACHMENT 3 SF LLL - DISCLOSURE OF LOBBYING ACTIVITIES……………………………………………..147

ATTACHMENT 4 OFAC LICENSE NO. SDGT-760f…………………………………………………………………….150

ATTACHMENT 5 BLANKET SOURCE, ORIGIN, AND NATIONALITY WAIVER TO AUTHRORIZE……………..153 PROCUREMENT OF CERTAIN MOTOR VEHICLES IN GEOGRAPHIC CODE 935 AND RELATED ADS 312

PART I - THE SCHEDULE

SECTION B - SUPPLIES OR SERVICES AND PRICE/COSTS

B.1 PURPOSE (CPFF)

The purpose of this contract is to provide services as described in detail in Section C, Statement of Work.

B.2 CONTRACT TYPE AND SERVICES (CPFF)

This is a cost-plus-fixed fee (CPFF) completion type, cost reimbursement contract. For the consideration set forth in the contract, the Contractor shall provide the deliverables or outputs described in Section C and comply with all contract requirements.

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

(a) For the contract period (5 years), the estimated cost for the performance of the work required hereunder, exclusive of fixed fee, is TBD. The fixed fee, if any, for the contract period (5 years) 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 of the contract period hereunder is TBD. The Contractor shall not exceed the aforesaid obligated amount unless authorized by the Contracting Officer pursuant to the clause of this contract entitled “Limitation of Funds” (FAR 52.232-22). See Section I of this contract.

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

B.4 BUDGET SCHEDULE

(a) Standard Cost Elements

Base Contract Period (Years 1 – 5)

Direct Labor

Fringe Benefits

Allowances

Travel/Transportation/ Per Diem

Consultants/Professional Services/Technical Advisors

Training/Workshops

Equipment/Furniture/Supplies

Monitoring and Evaluation

Other Direct Costs

Indirect Costs

Windows of Opportunity (Grants Under Contract)

$800,000.00

Subcontracts

Total Estimated Cost

Fixed Fee

TOTAL Estimated Cost Plus Fixed Fee

(b) Contract Line Item Numbers (CLINS)

001 Component A

002 Component B

003 Monitoring and Evaluation

004 Windows of Opportunity

005 Water Earmark

006 Capacity Building

Indirect Cost

Fixed Fee

Total Estimated Cost

Note 1: All Windows of Opportunity will be governed by an approval for Grants Under Contract (GUCs) in accordance with ADS 302.3.5.6. Under this approval, the COR is authorized to approve grant activities up to $100,000 to local, international and US NGOs. Grants more than $100,000 in value must be approved by the Contracting Officer. The Contractor must set aside no less than US$800,000 over the period of 5 years for Windows of Opportunity (also referred to Grants Under Contract) unless otherwise approved by the Contracting Officer. The Contractor must set aside no less than $100,000 a year for Windows of Opportunity unless otherwise stated in writing by the COR.

Note 2: The Contractor must use the exchange rate of US$1=NRs.78 for budgeting purposes.

Note 3: The Contractor must allocate approximately 65 to 75 percent of the total budget to component A over the five year activity period (See section C.4.5 “Geographic Focus and Budget”). While this amount will be allocated to component A, the Contractor must consider that activities conducted under components B (nutrition) and C (literacy) will contribute to the broader achievement of results across this project. The Contractor must ensure that linkages and coordination between components are robust.

Note 4: The Contractor must allocate approximately 25 to 35 percent of the total budget for component B over the five year period (please see section C.4.5.2 “District Coverage and Budget” below). While this amount of the total budget will be allocated towards component B, the Contractor must consider that activities conducted under the other components will contribute to the broader achievement of results across this project. The Contractor must ensure that linkages and coordination between components are robust.

Note 5: The Contractor is strongly encouraged to allocate at least two to four percent of the total estimated cost towards monitoring and evaluation.

B.5 INDIRECT COSTS (DEC 1997)

The contract clause entitled “Allowable Cost and Payment (JUN 2011)”, FAR 52.216-7, specifies that the indirect cost rates shall be established for each of the Contractor’s accounting periods that apply to this contract. 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/

[To be determined]

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

(1) Reimbursement for allowable indirect costs shall be at final negotiated rates but not in excess of the following ceiling rates:

Description Rate

Base

Type

Period

[To be determined]

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

(3) The Government shall not be obligated to pay any additional amount on account of indirect costs above the ceiling rates established in the contract.

(4) This understanding shall not change any monetary ceiling, obligation, cost limitation, or obligation established in the contract.

B.7 COST REIMBURSABLE

The costs allowable shall be limited to reasonable, allocable and allowable 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.

- End of Section B -

SECTION C - STATEMENT OF WORK

C.1

PURPOSE

The Project’s overall goal is to sustainably reduce poverty and hunger in Nepal by achieving inclusive growth in the agriculture sector, increasing income of farm families and improving nutritional status, especially of women and children. USAID/Nepal will implement the project over a five-year period through an integrated, whole-of-government approach of strategic agriculture and nutrition investments supporting contributions in cross-cutting areas. This Project will focus on 16 to 20 Terai and lower hill districts in the Far-Western region, Mid-Western region, and possibly the Western region of Nepal. This multifaceted Project will integrate agriculture and nutrition in order to increase agriculture production and improve the nutrition status of women and children under 5 years.

C.2

BACKGROUND

With a population of 27 million, Nepal is a severely food deficit country struggling to recover from a 10-year civil war. With a GDP per capita of $524 (estimated FY 2010), Nepal remains the poorest country in South Asia and the 13th poorest country in the world behind Rwanda. About 55% of Nepalese live below the international poverty line of $1.25/day. Nearly 80% of the population works in the agriculture sector, accounting for 38% of the GDP. Recent declining agricultural production has depressed rural economies and increased widespread hunger and urban migration in Nepal. This situation is compounded by a population growth rate of over 2% per year and one of the highest ratios of population to arable land in the world. In 2009, 43 of 75 districts were reported to be food deficient, with 23 districts in Nepal chronically food insecure. Two out of three Nepalese suffer food insecurity at some point during the year. Based on these high levels of hunger and poverty, on April 24, 2010, Nepal was officially selected as one of twenty focus countries worldwide for the USG Feed the Future (FTF) Presidential Initiative.

According to the Nepal Demographic Health Survey (NDHS 2011), the rate of stunting among under-five children is 41% (surpassing Sudan), wasting is 11% and underweight is 29% (exceeding Ethiopia), reflecting widespread chronic malnutrition. Nearly half of children six months to five years of age are anemic. Although the problem of under-nutrition is pervasive across all of Nepal, national aggregates mask wide disparities across socioeconomic groups and ecological regions.

Agriculture plays a crucial role in Nepal’s economy. Due to increasing population and declining rates of agricultural growth, Nepal is considered a structurally food deficit country. Crop production, like poverty rates, varies significantly by region and district.

· 66% of households in Nepal are experiencing food shortages

· 43% of households are skipping or reducing meals

· 30% of households in the hill and mountain regions are forced to consume seed stock

· 73% of households in the mountain regions send at least one member out for work

The hills and mountains in the Mid-Western and Far-Western Regions typically have the highest rates of food insecurity and hunger, since crop production is often poor and transportation and other infrastructure is lacking.

Nepal’s terrain, 64% of which is covered with mountains, is only about 22% arable, and is therefore not easily suited for efficient food grain production. In this context, farmers have limited exposure to improved agriculture practices and technology and the government extension system needs to be strengthened. Furthermore, there are weak linkages between producers and consumers and poor access to markets for farmers. The rugged terrain increases transport costs, impedes links of products to markets, and makes service provision difficult for large parts of the country. Nepal is also particularly vulnerable to climate change and has recently experienced increased drought and flooding.

Due to extremely low levels of income and agricultural production, the poorest households must allocate almost three quarters of their income to food. Additionally, many of these people were highly affected by the decade-long conflict and increasingly common drought and other natural disasters exacerbated by climate change, leaving them with few coping mechanisms to deal with rising food prices.

C.3

PROBLEM STATEMENT

USAID/Nepal and other donors joined in a Government of Nepal (GON)-led process to identify nutrition needs in Nepal. The problem analysis and knowledge management review reveals that the main underlying causes of hunger, poverty, and under-nutrition in Nepal include low agricultural productivity, poor household decisions about food distribution and consumption, limited livelihood opportunities, weak market linkages, poor enabling environment, poor hygiene and sanitation practices, and inadequate production, availability and consumption of nutritious, locally-available foods.

Nutrition and Hygiene Problems

The main nutrition and hygiene challenges to be addressed are listed below:

· Harmful feeding practices and behaviors (e.g. males eat first, low weight gain during pregnancy, traditional practices toward pregnant and menstruating women)

· Inadequate understanding of nutrition, particularly for pregnant women and young children (e.g. breastfeeding, complementary feeding, infant and young child feeding)

· Limited access to safe drinking water and sanitation facilities and poor sanitation and hygiene awareness (e.g. food safety and preparation; hand washing)

· Inadequate access to and/or utilization of high nutrient food

· In areas where production is sufficient, food behaviors and practices remain the major barriers. In other more food insecure communities, the sheer absence of lack of variety of diverse foods poses a threat to the nutritional status of women and children.

Given the rich diversity of culture, geography, ethnicity and beliefs in Nepal, programs that attempt to change nutrition related practices must begin by understanding both the negative and positive behaviors in a particular location as well as the community level barriers to improved nutrition-related behaviors. Programs will target male and female household members.

Agriculture Problems

The binding constraints to agriculture in Nepal include low and declining investment in agricultural research and extension, a poor enabling environment, confusing and contradictory regulations, poor access to quality inputs and services and limited basic infrastructure have inhibited productivity and led to significant post-harvest losses. The following lists the challenges to specific agricultural value chains:

High value vegetables:

· Lack of irrigation technology

· Limited access to quality inputs, particularly seeds

· Limited technical knowledge (including pest management and appropriate timing and sequencing of crops)

· Inadequate knowledge of pricing and access to markets

· Fragmentation of production supply

Rice, maize, and pulses:

· Poor water management

· Limited dissemination of improved seeds and other inputs

· Poor knowledge of techniques to increase crop cycles and adapt cropping systems to maximize productivity

· Inadequate flood and drought preparedness, especially with changing hydrology and rainfall patterns due to climate change effects

· Poor and efficient linkages between producers and consumers and poor access to markets for farmers Problems regarding Integrating Vulnerable Groups

The main challenges to integrating vulnerable groups are listed below:

· Gender:

· Existence of cultural, economic, technical and other factors that impose barriers to women participating in the workforce, earning an adequate income, and/or receiving income they’ve earned

· High rates of male outmigration that leave women with greater workload and limited cash availability, as well as a culturally-based inability to make decisions on behalf of the HH

· Marginalized groups:

· Exclusion of low caste and ethnic groups such as women, Dalits and Janajatis from social and economic activities following cultural norms

· Less access to education, medical facilities, and other social services and little access to property ownership or cash

· Integrating internally displaced persons and victims of conflict into social and economic fabric

· Youth (generally, aged 16 to 30 years):

· Lack of employment opportunities

· Lack of adequate education

Other major problems are summarized below:

· Climate change risks (e.g. increased drought and flood, new and more frequent pest and disease outbreaks, temperature rise, shifting rain patterns, changes in glacier water storage) have increased the vulnerability of the poor to natural disasters.

· Low government capacities, marked by poor financial practices and inefficient use of funds, lack of technical and management competency, limited staffing and resources at local levels, poor coordination, and policy gaps.

· Low local organization capacity marked by lack of experience with donor interventions, technical and management competency, poor coordination, and policy gaps.

· Food prices continue to rise. The current year-on-year food price inflation rate is up to 15-18%, whereas recent agricultural GDP growth rate is only 2.5 to 3.5%.

· Lack of livelihood opportunities and market volatilities increase the vulnerability of the poor, resulting in youth outmigration, and declining labor availability.

· Limited access to capital, especially for marginalized groups

· Poor infrastructure that limits access to markets and clean water

C.4

SCOPE OF WORK

The overall goal of the FTF initiative is to reduce hunger and poverty while improving nutrition in Nepal. The Project’s purpose, which contributes to the achievement of this goal, is to increase agricultural productivity and income, improve nutritional status of women and children under five, and increase resilience of vulnerable communities and households. The FTF purpose will be achieved by producing the following nine outputs which are summarized below. Only some of the outputs among these nine outputs are the responsibility of this contractor, while other outputs will be addressed by a separate contractor.

The Contractor must achieve the following seven outputs to achieve the FTF purpose:

1. Farmers receive training on improved practices leading to increased agriculture production

2. Improved capacity of agriculture extension workers, service providers, farmers, health workers, caregivers, and health volunteers

3. Improved and sustainable agriculture production and post-harvest technologies and practices adopted at the farm level

4. Improved market efficiency

5. Increased capacity of GON and Nepali organizations for agriculture-related technology identification and dissemination

6. Improved knowledge and behavior on agricultural, nutrition, hygiene and sanitation practices

7. Improved access to water and sanitation facilities

A separate contract will be awarded for the following two outputs. While the Contractor will not have any direct responsibility for these outputs, it must coordinate with the organization responsible for these outputs:

8. Improved agricultural policy environment

9. Increased resilience of vulnerable communities and households through skills development

The Project has three primary and integrated components which focus on: A) Agricultural productivity, B) Improved Nutrition, and C) Skills development (literacy, numeracy, and business/ entrepreneurial skills). The Project under this Contract covers components A and B. Therefore, the Contractor must implement Components A and B. The Contractor is also required to propose the name of this project. The Contractor is advised to consider the nature of the project as well as the relevancy in the Nepalese context while selecting the proposed name of the project.

A Nepali organization will implement component C by conducting entrepreneurial-based literacy and life skills training under a separate contract. These trainings will further empower vulnerable groups such as women, youth, lower castes, and ethnic minorities and ensure that program participants receive maximum benefits. Since these trainings will target the same beneficiaries in the same geographic areas as the Project, the Contractor must coordinate with the Nepali organization implementing component C. Additionally, the Contractor must provide one room, office or cubicle in each of their offices so that a component C implementer employee may co-locate with the Contractor.

In addition to the separate component C, the FTF initiative will also support smaller projects which will feed their outputs into this Project. The Contractor must ensure close coordination is with the implementers of these smaller, supportive awards to ensure optimal integration and maximization of the improved techniques developed. These supportive activities include the Cereal Systems Initiative for South Asia (CSISA), the Integrated Pest Management Collaborative Research Support Program (IPM CRSP), the ongoing Hill Maize Research Program (HMRP), agriculture policy related activities by The International Food Policy Research Institute (IFPRI), and others. Section C.4.3.5. “Integrating Supporting Activities” below contains more detail on these and other supporting activities.

C.4.1 Component A: Improved Agricultural Productivity Greater agricultural productivity is fundamental to decreasing hunger and achieving food security. There are many opportunities to substantially increase agricultural productivity in Nepal. Improved agricultural practices, access to quality inputs, and capacity building of change agents will provide the base from which sustainable poverty reduction is achieved.

The Contractor must incorporate appropriate proven interventions which complement the CSISA, HMRP and IPM CRSP interventions, among others (please see section C.4.3.5. “Integrating Supporting Activities” below), and are focused on improving agricultural practices and technologies to increase crop production and intensity, such as the adoption of post-harvest systems, storage facilities, integrated plant nutrient and pest management, and sustainable water and soil management systems. Additionally, the Contractor must include female-friendly farming practices in its interventions, such as the adoption of multi-use water systems or appropriate tools.

High value vegetables will be the core value chain in the selected geographic region. The Contractor must focus its interventions on high value vegetables and horticultural crops (such as tomatoes, cauliflower, cabbage, eggplant, peppers, and beans, among others) that can improve local nutrition as well as generate incomes through sales and marketing. The choice in types of foods produced will impact consumption patterns and nutritional status of women and children. When selecting crops, the Contractor must take into account:

· The nutritional requirements of the community matching the nutritional values of the crops

· The cultural feeding practices of the community

· Agro-environmental biophysical parameters required for optimal crop growth

· Supply and demand in local and regional markets

Previous USAID/Nepal experience demonstrates that interventions on high value vegetables can significantly impact smallholders (e.g. increase in household income and sales per hectare). Improved livelihoods enable households to indirectly benefit through various ways, such as increased food quantity, quality and variety, purchase of livestock and other productive assets, lower seasonal migration, increased savings and loan repayments, and improved school enrollment. There is also potential impact on the national economy, including foreign exchange savings from reduced imports, greater value of agriculture GDP growth, higher labor productivity, and improved food trade balance. This project will not support international trade and the Contractor must focus all market development on local and regional markets to increase food security in the focus area as well as contribute spillover effects at the national level.

The Contractor must also work with traditional cropping systems, specifically lentils, maize, and rice, and develop activities to attract risk adverse smallholders, such as intercropping with vegetables, crop rotation, conservation tillage, early harvest and climate resilient rice seeds, and protein-rich maize varieties. Where applicable, the Contractor may also include livestock (e.g. poultry and goats) as part of the farming system, in order to reach the landless and most marginalized.

There is a continual shortage of agricultural inputs in Nepal. The Contractor must develop activities that address input needs, such as volume of high quality seed, alternatives to chemical fertilizers, and access to adequate water supplies. Similar applicable best practices from other projects could diminish or eliminate the need for certain inputs, such as chemical fertilizers, and must be utilized to the fullest extent possible.

Farmers often have inadequate knowledge of marketing and pricing information and lack access to markets, especially in remote areas with no roads or transportation facilities. It is essential to improve farmers’ access to markets and promote linkages between producers and consumers through collection centers or other similar means. Enhanced market information would enable individual farmers and cooperatives to sell their produce at fair prices, thereby increasing their incomes. The Contractor must work to establish an efficient market management system. The Contractor may achieve this through development of collection centers, improved farmer access to markets, and increased management capacities of cooperatives and marketing committees through relevant trainings. The Contractor should also take into account ways to address the lack of access to productive inputs and information by women and other marginalized groups.

Examples of best practices from current and previous USAID/Nepal projects that the Contractor is strongly encouraged to use include:

· Irrigation and Water Usage and Management: The Smallholder Irrigation Market Initiative (SIMI) showed the effectiveness of developing local manufacturing and dealer networks for irrigation and water storage technologies (e.g. micro irrigation, drip irrigation systems, treadle pumps, multiple use water systems (MUS), micro sprinklers). In the hills and in areas with water shortages, treadle pumps and drip irrigation have successfully supplemented the water needed for vegetable production.

· Farmer Groups/Cooperatives: a vast number of agricultural projects around the world (including Nepal MAPS, SIMI and EIG) have shown the effectiveness of forming and supporting farmer groups to maximize information flow, input and output market power, improve local governance, and facilitate access to public resources, among other things.

· Collection Centers: The SIMI and Education for Income Generation (EIG) projects established collection centers within walking distance of farmer groups where producers can more easily sell their products at fair prices. Collection centers are managed by Marketing and Planning Committees (MPC), which contacts traders who purchase vegetables wholesale and transport them to markets. MPCs can also provide price information to farmers and develop linkages with input suppliers.

· Demonstration Farms: The Nepal Flood Recovery Project (NFRP), EIG and NEAT are developing model farmers through field training on and modeling of improved agricultural practices. New cropping, pest control, and post-harvest storage techniques have helped farmers to increase agricultural production and intensity. To the extent possible, the Contractor should create demonstration farms in conjunction with lead farmers in order to minimize inputs and maximize community involvement and knowledge transfer. Additionally, the Contractor is encouraged to introduce simple processing (drying) and storage of nutritious fruits and vegetables. Food preservation may prove useful during lean times, decrease post-harvest loss, increase product value and make transport more efficient.

· Natural Resource Conservation Agriculture: The SIMI project demonstrated that crop yields can be increased by using organic liquid fertilizers (e.g. Jholmol prepared from livestock urine, micro nutrient mixture, and locally available herbs). Application of livestock manure combined with crop rotation using leguminous plants improves soil structure. In addition, the use of conservation tillage systems adapted by CSISA can significantly improve soil structure and reduce erosion while minimizing inputs such as labor and pesticides. At Integrated Pest Management (IPM) Collaborative Research Support Program (CRSP) sites, farmers are also using bio fertilizers available in the local market to increase yields and have replaced pesticides with natural materials such as chilies and pheromone traps. Additionally, the Contractor should use biogas systems when appropriate.

· Information and Communication Technology: the use of media, such as the radio, mobile phone and other technology, as an extension tool.

The Contractor must introduce inputs that mitigate the potential effects of climate change. For example, drought resistant seed varieties should be used to maintain more consistent yields across varied climatic years, such as those developed through research in the Hill Maize Research Program (HMRP) implemented by the International Maize and Wheat Improvement Center (CIMMYT) and jointly funded through USAID/Nepal and Swiss Agency for Development and Cooperation (SDC). The Contractor must not use genetically modified seed in any Project activity unless such use is approved in writing by USAID/Nepal. See below the Global Climate Change bullet under section C.4.3.5 “Integrating Cross-Cutting Activities” for related information.

C.4.1.1 Development of Primary Change Agents

Sustainability of the interventions is one of the key concerns and therefore an effective mobilization of key change agents is imperative. In order to achieve the objective of increasing agricultural productivity, the Contractor must mobilize change agents that can provide improved technologies, quality inputs, technical know-how, knowledge, and other back stopping support for production and marketing of vegetables and agricultural crops. The change agent intervention designed by the Contractor must be sustainable and account for the resources which will be needed to continue the model after the project ends i.e. Market driven, GON supported, etc. The Contractor must consider caste, ethnicity, and gender when identifying change agents for implementation of this activity. The Contractor must work with the following change agents:

Service Providers:

These are private sector entities based in district headquarters and market centers that provide input and agriculture services to farmers. Service providers include local companies that import and sell new equipment to farmers according to local demand (e.g. tractors, tillers, and seed processing and packaging machinery), as well as Agrovets.

Agrovets are the primary source for farmers to access agricultural inputs and services. They are largely present in market centers with established networks of sales representatives across small towns and rural areas. Most Agrovets are affiliated with the Seed Entrepreneur’s Association in Nepal (SEAN). Agrovets assist farmers in gaining access to inputs (e.g. quality seeds, organic and chemical fertilizers, micro-nutrients, organic pesticides, tools, equipment, sprayers, treadle pumps and drip irrigation sets) and provide farmers with information on optimal utilization of these inputs (e.g. planting and irrigation scheduling, pest management). Service providers are also “mistri” people that assist in the construction or repair of infrastructure (e.g. tube wells and irrigation systems) or others with businesses that will benefit from successful interventions that support farmers.

Service providers ensure the supply of quality seed, disseminate information on cultivation practices to farmer groups and cooperatives, and provide farmers with tools and information on how to use new equipment, such as micro irrigation. These entrepreneurial change agents will increase access and availability of higher quality inputs and provide information to farmers for vegetable production and marketing. They will drive market linkages as it is in their financial interest to do so.

The Contractor must work with service providers to facilitate better availability of services and inputs for farmer groups and other FTF stakeholders. This may include linking service providers with sources of new technologies, training them in business management practices such as marketing and logistics, outreach to underserved farmers, finding innovative business solutions for clients, etc.

Commercial Agribusinesses:

Commercial agribusinesses in the target area, typically in district and market centers or even outside the target area, can be important buyers of produce and provider of inputs, training and even financing in certain cases. These businesses may provide steady bulk markets or contract farming opportunities to farmer groups. The Contractor must work with commercial agribusinesses to facilitate contracts, agreements, training, input supply and financing beneficial to target farmers.

GON Extension Workers:

The Ministry of Agriculture and Cooperatives (MOAC) Department of Agriculture (DOA)’s extension network is present throughout the country, but lacks resources and is not oriented toward the varied topography and terrain in Nepal. GON extension staff includes Subject Matter Specialists (SMS), Junior Technicians (JTs) and Junior Technical Assistants (JTAs) that impart technical know-how and knowledge through trainings and demonstrations for farmers. Each district has an average of six agricultural service centers and several sub-service centers with JTs and JTAs covering several Village Development Committees (VDCs). The Mid-Western and Far-Western Terai and hill districts may have 20 to 25 JT/JTAs per district that could support activities.

The Contractor must work with the GON to coordinate the activity of these extension workers, as appropriate. The Contractor must utilize GON extension workers as change agents whenever possible. The Contractor must encourage the involvement of government extension officers in agriculture service centers and sub-centers in the VDCs at the farmer-household level. Extension agents provide farmer groups and cooperatives with services and disseminate usage information in reliable seed supply, farm equipment and tools, cultivation practices, and technical inputs for agriculture technologies. The Contractor should ensure that extension services and other forms of technical assistance are accessible and appropriate for women and other marginalized groups.

Lead Farmers:

Understanding that the large scope of this activity may exceed the reach of the current number of locally available service providers, the Contractor must leverage other networks to utilize additional change agents as needed. For example, the GON works through farmer groups. Each of these groups have Lead Farmers that were identified as local resource people and trained by MOAC’s Department of Agriculture (DOA) to increase technology transfer to local communities through demonstration farms. Lead Farmers conduct field-to-field visits to neighboring farmer groups and cooperatives, provide technical advice, and demonstrate new cultivation practices, such as soil and water management, seed treatment, pest control, and grafting technologies. Building the capacity of such networks and change agents will leverage existing resources, improve technology dissemination, and promote sustainability of interventions.

The key to the Project’s success and sustainability depends on the effective and sustained role of these four types of locally present change agents. The Contractor must build the capacity of the change agents through additional and relevant trainings and mobilize them for their effective role in increasing production and creating market linkages. These change agents must represent multiple ethnic and caste groups and gender ratios to reflect the local beneficiaries. Change agent profiles will vary by target area, given different levels of agricultural development and different types of farmer needs. A “train the trainer” model could be used to disseminate information and build skills more efficiently. In order to address women’s lack of access to technical assistance and other resources, the Contractor should consider measures to encourage women’s participation, such as childcare, and transportation issues, among others.

Facilitating private sector solutions to input supply, market and training problems are key to the project.

The Contractor must increase the capacities of cooperatives and marketing committees through trainings, such as organizational development, accounting and management. The Contractor must support stronger value chains in which smallholders have access to valuable information such as market prices and weather conditions. These cooperatives and marketing committees facilitate private sector relationships that result in lower-priced, higher-quality inputs such as seeds, and the ready marketing of agricultural products. Change agents play a key role in supporting these village cooperatives. Capacity-building of cooperatives and change agents also provide an opportunity to encourage a more robust participation of women and minority groups.

The Contractor must administer a Project-funded Windows of Opportunity, which will be conducted through the Grants under Contract (GUCs) program and mechanism (see section C.4.3.4 “Further Opportunities for Engagement” below). These funds must be used to support the Project objectives, with resources being used in areas such as scaling up the efforts of change agents, cooperatives, and other appropriate entities, the expansion of inventory of desirable inputs for service providers and kick starting new entrepreneurs, among others. These funds must be used when there are no other viable options for financing such as microcredit or local GON grants. Whenever possible, the Contractor must leverage the work of other donors in this area, such as Asian Development Bank (ADB) and World Bank (WB).