Solicitation_PEEP_7_14_2013.pdf

U.S. Agency for International Development

Embassy of United States of America, Diplomatic Enclave, Ramna 5, Islamabad

Tel: [+92-51) 208-0000

Fax: [+92-51) 287-0310 www.usaid.gov/pk

Issuance Date: July 14, 2013

Deadline for Submitting Questions: July 24, 2013 9:00 AM Pakistan Time

Closing Date: August 23, 2013 9:00 AM Pakistan Time

Closing Time: 12:00 PM (Pakistan Standard Time)

Subject: Solicitation Number: SOL-391-13-000012

Punjab Enabling Environment Project (PEEP)

The United States Government, represented by the United States Agency for International

Development (USAID) Mission in Pakistan, intends to award a contract for implementation of the

Punjab Enabling Environment Project (PEEP) for the purpose described in Section C of this document. In accordance with FAR Part 15, this procurement shall be conducted through full and open competition, under which any legally registered Pakistani, American or international Offeror may submit a proposal. Eligible entities include for-profit firms, nonprofit organizations, international organizations, and educational institutions.

USAID anticipates awarding a five-year Cost-Plus-Fixed Fee (CPFF) completion type contract for the implementation of this activity with a total estimated range of approximately $12-15 million for the entire period. Offerors must propose costs that it believes are realistic and reasonable for the work. Cost proposals shall be evaluated as part of a best value determination taking into account cost and technical factors. Offerors must submit both electronic and hard copies of cost and technical proposals in accordance with section L.7.

Prospective Offerors may submit questions in writing, by email to Mr. Muhammad Aslam, Senior

Acquisition and Assistance Specialist at maslam@usaid.gov with a copy to rweddle@usaid.gov. The closing date for questions under this solicitation is July 24, 2013 at 9:00 AM (Pakistan Time). If substantive questions are received which affect the solicitation, or if changes are made prior to the closing date and time, this solicitation shall be amended. It is the responsibility of the Offeror to ensure that solicitation or any amendments to it have been received from Internet in its entirety.

USAID bears no responsibility for data errors resulting from transmission or conversion processes.

Any amendments to this solicitation shall be issued and posted on the Federal Business Opportunities website (http://www.fbo.gov), which prospective Offerors should check periodically.

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

Sincerely, /s/

Ryan Weddle

Contracting Officer http://www.fbo.gov/

OFFICE OF ACQUISITION AND ASSISTANCE

USAID/PAKISTAN

U.S. EMBASSY

DIPLOMATIC ENCLAVE,

ISLAMABAD, PAKISTAN

1. THIS CONTRACT IS A RATED ORDER RATING PAGE OF

PAGES

UNDER DPAS (15 CFR 700)

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

July 14, 2013

6. REQUISITION/PURCHASE NUMBER

SEALED BID (IFB)

NEGOTIATED (RFP)

7. ISSUED BY

CODE OAA 8. ADDRESS OFFER TO

(If other than Item 7)

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

9. Sealed offers in original and _4__ copies for furnishing the supplies or services in the Schedule will be received at the place specified in Item 8, or if hand carried, in the depository located at USAID Mission at the US Embassy in Islamabad, Pakistan until 8/24/2013 local (Islamabad) time 9:00AM .

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

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

AREA CODE

92-51 208

NUMBER EXT.

1262 maslam@usaid.gov

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

PART I - THE SCHEDULE PART II - CONTRACT CLAUSES

X A SOLICITATION/CONTRACT FORM 2 X I CONTRACT CLAUSES 47

X B SUPPLIES OR SERVICES AND PRICES/COSTS 8 PART III - LIST OF DOCUMENTS, EXHIBITS AND OTHER ATTACH.

X C DESCRIPTION/SPECS./WORK STATEMENT 8 X J LIST OF ATTACHMENTS 93

X D PACKAGING AND MARKING 25 PART IV - REPRESENTATIONS AND INSTRUCTIONS

X E INSPECTION AND ACCEPTANCE 27

X F DELIVERIES OR PERFORMANCE 29

X G CONTRACT ADMINISTRATION DATA 42 X L INSTRUCTIONS, CONDITIONS, AND NOTICES TO OFFERORS 102

X H SPECIAL CONTRACT REQUIREMENTS 47 X M EVALUATION FACTORS FOR AWARD 125

X K

REPRESENTATIONS, CERTIFICATIONS AND OTHER

STATEMENTS OF OFFERORS 94

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

12. In compliance with the above, the undersigned agrees, if this offer is accepted within _210__ calendar days (60 calendar days unless a different period is inserted by the Offeror) from the date for receipt of offers specified above, to furnish any or all items upon which prices are offered at the price set opposite each item, delivered at the designated point(s), within the time specified in the schedule.

13. DISCOUNT FOR PROMPT PAYMENT 10 CALENDAR DAYS (%) 20 CALENDAR DAYS (%) 30 CALENDAR DAYS (%) CALENDAR DAYS (%)

(See Section I, Clause No. 52-232-8)

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

(The Offeror acknowledges receipt of amendments to the

SOLICITATION for Offerors and related documents numbered and dated:

CODE FACILITY

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

ADDRESS

OF OFFEROR

(Type or print)

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

AREA CODE NUMBER EXT.

15C. CHECK IF REMITTANCE ADDRESS IS DIFFERENT FROM

ABOVE - ENTER SUCH ADDRESS IN SCHEDULE

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

22. AUTHORITY FOR USING OTHER THAN FULL AND OPEN COMPETITION: 23. SUBMIT INVOICES TO ADDRESS SHOWN IN ITEM

(4 copies unless otherwise specified) 10 U.S.C. 2304(a) ( ) 41 U.S.C. 253(c) ( )

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

See Section G.5

CODE

26. NAME OF CONTRACTING OFFICER (Type or print)

27. UNITED STATES OF AMERICA 28. AWARD DATE

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

(Signature of Contracting Officer)

(REV. 9-97)

10. FOR INFORMATION CALL:

Mohammad Aslam

11. TABLE OF CONTENTS

STANDARD FORM 33

SOLICITATION, OFFER AND AWARD

SOLICITATION

OFFER (Must be fully completed by Offeror)

AWARD (To be completed by Government)

N/A

SOL-391-13-000012

X

See Attached Table of Contents

RFP-391-13-000012

Punjab Enabling Environment Program (PEEP)

PART I - SCHEDULE

SECTION B - SUPPLIES OR SERVICES AND PRICE/COSTS

B.1. PURPOSE

The purpose of this contract is to improve the business enabling environment of the agriculture sector in the

Punjab province of Pakistan, particularly in the horticulture, dairy, and livestock subsectors. The purpose is more fully described in Section C.

B.2. CONTRACT TYPE

This is a Cost-Plus-Fixed-Fee (CPFF) completion-type contract. For the consideration set below, the

Contractor shall provide the deliverables or outputs described in Section C and F, in accordance with performance standards specified in Section E.

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

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

(b) Within the estimated cost plus fixed fee (if any) specified in paragraph (a) above, the amount currently obligated and available for reimbursement of allowable costs incurred by the Contractor

(and payment of fee, if any) for performance hereunder is _______ [ TBD ]. The Contractor shall not exceed the aforesaid obligated amount.

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

B.4 BUDGET

(a) The contract budget found herein is based on the Contractor’s original proposal and/or final proposal revision, which was accepted by USAID through award of this contract, as well as any subsequent modifications mutually agreed to by the Contracting Officer and the Contractor.

(b) Without the prior written approval of the Contracting Officer, the Contractor may not exceed the total estimated costs set forth in the budget hereunder or the total obligated amount, whichever is less.

(c) The following itemized budget sets forth the estimates for reimbursement of dollar costs for individual line items of cost, and the fixed fee (if any).

Budget Line Item Year 1 Year 2 Year 3 Year 4 Year 5 Total

Labor

TBD TBD TBD TBD TBD TBD

Other Direct Costs

TBD TBD TBD TBD TBD TBD

Grants Under

Contract TBD TBD TBD TBD TBD $5,000,000

Indirect Costs

TBD TBD TBD TBD TBD TBD

Fixed Fee

TBD TBD TBD TBD TBD TBD

Total Contract

Ceiling TBD TBD TBD TBD TBD TBD

B.5. INDIRECT COSTS

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

For the prime Contractor:

EFFECTIVE PERIOD INDIRECT COST RATES

TYPE FROM THROUGH

(a)

(b)

(c)

(d)

(e)

Base of Application

(b)

(c)

For the major Subcontractor(s) (defined as Subcontractors expected to provide at least 15% of the total dollar value of this contract):

EFFECTIVE PERIOD INDIRECT COST RATES

TYPE FROM THROUGH

(b)

(c)

B.6 CEILING ON INDIRECT COSTS [The determination to include this clause in the contract will be made at the time of award in accordance with FAR 42.707(b)(i) ]

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

For the prime contractor:

INDIRECT COST RATES

(b)

(c)

For the major Subcontractor(s) (defined as Subcontractors expected to provide at least 15% of the total dollar value of this contract):

INDIRECT COST RATES

(b)

(c)

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

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

(c) 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.

B.7. COST REIMBURSABLE

The U.S. dollar costs allowable under this contract 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.

B.8 FEE PAYMENT

(a) The Contractor’s fixed fee is tied to the accomplishment of the deliverables outlined in Section

F.4 and C.4.2. Upon successful achievement of the deliverable, the Contractor shall provide evidence of the achievement to the Contracting Officer’s Representative and the Contracting

Officer. Upon acceptance and approval by the COR, the Contractor shall submit an invoice for the amount of the fee associated with the deliverable. The Contractor may bill the fee monthly as a percentage of incurred costs, not to exceed ___% [TBD ], associated with the accepted contract deliverables.

(b) Subject to FAR 52.216-8, Fixed Fee, after payment of 85 percent of the fixed fee, the Contracting

Officer shall withhold further payment of fee until a reserve is set aside in an amount of

________ [TBD – 15% of fee]. The Contracting Officer will release 75 percent of all fee withholds under this contract after receipt of the certified final indirect cost rate proposal covering the year of physical completion of this contract, provided the Contractor has satisfied all other contract terms and conditions, including the submission of the final patent and royalty reports, and is not delinquent in submitting final vouchers on prior years’ settlements. The Contractor will not be paid any sum in excess of the contract ceiling price.

B.9 CONTRACT CANCELLATION

This is a CPFF completion type contract where the Contractor is authorized to be reimbursed for all costs which are allowable in accordance with FAR 52.216-7, “Allowable Costs and Payment” subject to provisions of FAR 52.217-21 “Cancellation under Multiyear Contracts.” Therefore, the cancellation ceiling for each cancellation date is [TBD] Subject to the requirements of FAR 17.106, the following cancellation dates are in effect:

Contract Year 2: [TBD]

Contract Year 3: [TBD]

Contract Year 4: [TBD]

Contract Year 5: [TBD]

B.10 SECURITY COSTS

The Contractor must provide USAID/Pakistan a security plan (referenced in Section H. 23 and Attachment

J.1) and budget for security. The Security Plan and budget must delineate and justify the reasonableness of all costs and provide a coherent, overall integrated security plan that demonstrates that the Contractor has undertaken a thoughtful review of their security needs and includes analysis of the various elements of a security plan.

[END OF SECTION B]

SECTION C – DESCRIPTION/SPECIFICATIONS/STATEMENT OF WORK

Punjab Enabling Environment Project (PEEP)

C.1 PURPOSE

Punjab is the most populated and rapidly developing province in Pakistan. Agriculture, including horticulture and livestock, is the major driver of the economy. Horticulture and livestock represent tremendous opportunities for growth, income generation and employment in Punjab. A vast majority of small and landless farmers rely on horticulture and livestock as the primary source of their income.

However, one of the challenges due to which the agriculture sector and its sub-sectors have not been able to realize their full potential is the lack of a business environment conducive to growth.

A friendly business environment provides support to businesses through policy and regulatory reforms, improved infrastructure and strengthening institutions. A supportive enabling environment has the ability to contribute to growth more than any specific subsidy or support program. Therefore, there is a need to ensure that administration and enforcement of government policy, national and local institutional arrangements and other factors are optimized for maximizing economic benefits and to provide a level playing field for growth and development.

The prevailing business environment in Punjab does not promote private sector growth or investment in the dairy, livestock and horticulture sectors. Major factors contributing to the present situation are outdated laws and regulations, lack of public sector capacity to change and implement reforms, the inability of the private sector to articulate their needs to bring about policy reforms and lack of knowledge about modern policies.

USAID/Pakistan’s “Punjab Enabling Environment Project (PEEP)” is designed to support policy advocacy, regulatory reforms and their early implementation. Through this project, USAID/Pakistan will work in partnership with the Pakistani private sector, public sector, civil society organizations and academia to create an environment that is more conducive to the growth of the horticulture, dairy and livestock sectors.

PEEP will help create internationally competitive horticulture, livestock and dairy sectors, while also improving the quality and quantity of produce in the domestic markets, thus driving economic growth.

C.2 BACKGROUND

C.2.1 Pakistan and Project-Specific Context

Punjab is the most populated and rapidly developing province in Pakistan. In 2011, it contributed 68 percent to national GDP in almost every sector of the economy, including 57 percent in the agriculture sector. Agriculture is a major driver of economic growth in the province. In 2011, it employed approximately 44 percent of Punjab’s labor force and constituted 28 percent of Gross Provincial Product.

Almost 40 percent of value added in Punjab’s agriculture sector is derived from the livestock sub-sector.

Agriculture (including livestock) is a force multiplier in the economy. It amplifies its direct contributions to economic growth by creating a market for input and service suppliers, and supplying raw materials to industry. Because of the number of people it employs, a thriving agriculture sector creates effective demand that stimulates growth in the overall economy.

Punjab accounts for more than 95 percent of national citrus production, 82 percent of guava production, 66 percent of mango production and 34 percent of date production. Its livestock farmers account for approximately 63 percent of national milk production and own 65 percent, 49 percent, 37 percent and 24 percent of the country’s buffalo, cattle, goats and sheep respectively.

While Pakistan is a significant producer and exporter of agriculture, it has to date remained in the low end of the value chain with a heavy dependence on basic exports. Given the importance of the horticulture and livestock sectors to the overall economy, the performance of these sectors has a great influence on overall economic growth and if these sectors were to lose competitiveness, the impact on employment could be severe.

Punjab’s agriculture institutions deserve much of the credit for the national trend toward modernization of the sector. The province is endowed with the country’s largest network of agricultural research laboratories and public policy think tanks; is often a model for other provinces in terms of policy reform and the development of innovative service delivery mechanisms; and boasts a cadre of senior level officials in key positions who are visionary, competent and dedicated to rapid improvements.

C.2.2 Development Challenge

Pakistan’s economy is still dependent upon an inefficient agriculture sector and structural transformation from basic agriculture to high value added horticulture and livestock has not taken place. Business development programs have contributed in some way to the development of agriculture in Pakistan, but they have fallen short of being comprehensive reforms affecting the whole value chain. Efforts to increase the competitiveness of horticulture and livestock sectors in Pakistan have not worked throughout the value chain and programs have tended towards the largest producers.

Agriculture has always been a provincial subject, but with the passage of the 18 th Amendment in the

Constitution, the Federal Ministry of Agriculture has been dissolved and the provinces have become autonomous in setting policies, development priorities and budgets. However, provincial agriculture departments remain overly bureaucratic with an entrenched civil service and a public sector approach to agriculture development and service delivery. In order to fully modernize and achieve its potential, the provincial agriculture, livestock and food departments need to evolve, restructure and reorganize to become more pro-private sector and take on this new responsibility realizing the fruits of devolution.

Furthermore, current food inflation and slow growth are putting ever more pressure on the provincial governments to reform quickly and more effectively in order for the private sector to take the lead in economic and agriculture growth.

One task that will require attention in the immediate term will be the implementation of reforms that are consistent with the Pakistan Government’s “Grow Pakistan: Framework for Economic Growth – May

2011”, which aims to reduce government intervention in markets and clear market space for increased entrepreneurship and private sector investment (see Attachment J-3).

PEEP will develop and implement a set of activities that result in significant policy reform, capacity building of sector actors, and investment in Punjab to support the government, the private sector and civil society organizations in improving the dairy, livestock and horticulture value chains. This should result in improved government performance in areas such as: implementing regulations to support new agricultural laws, developing and implementing livestock laws and regulations, and developing and implementing food safety regulations. These reforms will promote domestic and foreign investment in provincial dairy, livestock and horticulture value chains.

C.2.3 Coordination with Other USAID Efforts

USAID is currently implementing several projects in Punjab which are complementary to program objectives. The Contractor shall establish and maintain supportive, collaborative relationships between project activities/staff that result in a synergistic effect to achieve USAID’s goals.

USAID Agribusiness Project (UAP)

To assist Pakistan’s agriculture sector, USAID is implementing the USAID Agribusiness Project (UAP), implemented by the Agribusiness Support Fund (ASF). It is designed to assist achievement of

USAID/Pakistan’s Economic Growth and Agriculture Office’s Development Objective of “Improved

Economic Status of Target Populations”.

ASF supports the development of select value chains in four regions of Pakistan. This assistance includes promoting private sector interventions as service delivery agents, introducing new technologies, forming farmer production and producer processing groups, and establishing advocacy platforms. At the core of ASF is a fundamental principle that growth and change require a private sector focus and that growth begins with understanding the market. The project focuses on off-farm, upstream marketing, and value addition activities in the priority value chains. UAP has the following broad objectives:

Strengthen processing, marketing, and product diversification through improvement in farming practices;

Support development of farmer organizations, businesses, and related networks that are key to linking producers, suppliers, and processors, Work in areas with greatest potential for value addition.

The project will work throughout the entire country, with emphasis on the underserved areas of Khyber

Pakhtunkhwa, Baluchistan, FATA, Southern Punjab, and Northern Sindh.

ASF is focused on improving the competitiveness of dairy, livestock and horticulture value chains under the existing policy and regulatory regime. ASF Policy work is primarily as an advocate for change through value chain platforms and does not explicitly work to with any regional government on undertaking reforms. PEEP activities will improve the business enabling environment, which will enhance effectiveness of Agribusiness Project’s support to individual enterprises thus promoting private sector investment.

Empower Pakistan: Firms

As part of USAID support to the private sector in Pakistan, the Firms project has provided targeted assistance to value chains development in four value chains in Sindh and FATA/KP. Additionally, Firms has been engaged by the Government of Punjab (GoPb) to draft new legislation related to agriculture markets in the province (see Attachment J.4: FIRMS Project BEE Interventions in Punjab). The project assists targeted firms and sectors that offer the greatest opportunity for growth, exports, and employment.

Through this project, Firms works with district governments, alongside other local businesses and organizations, to create jobs and support economic growth and stability. The project has two complementary components designed to enhance economic growth: business enabling environment and

These goals are aspirational and based on an assumption that the Agriculture Sector Strategy will be fully funded.

value chain development. The business enabling environment component aims to improve the capabilities of government, primarily at the district level, to accelerate and facilitate economic opportunity in vulnerable districts. The primary focus of the value chain development component is development of sales opportunities for private businesses in select value chains. The project liaises with government, primarily through the business enabling environment component, and works directly with local industry through collective trade associations representing sectors and subsectors.

The Firms Project of USAID supports BEE activities that focus only on public sector demanded legislative reforms and has helped Punjab Government in drafting various legislations. Firms has made a considerable investment in supporting GOPb’s efforts to develop new laws that would reduce government interventions in produce markets and create the opportunity for private sector owned and managed markets. PEEP will support the private sector in advocating for early adoption of the USAID assisted reforms and build private and public institutional capacity for their implementation (see Attachment J.4: FIRMS Project BEE

Interventions in Punjab).

Both Firms and ASF are designed to facilitate private sector led growth and the creation of jobs and incomes in Pakistan. PEEP complements the existing USAID Pakistan’s agriculture focused interventions.

It will address the collective issues of dairy, livestock and horticulture sectors and advocate policy reforms and implementation.

It is incumbent that the activities conducted by all three projects be closely coordinated to ensure complementarity of activities, avoid duplication of efforts, and target interventions or increased impact and reduction of implementation costs. The three projects working in concert will increase the ability of

USAID to meet is development objectives (see Attachment J-5 -Cooperation Matrix).

C.3 PROJECT SCOPE

C.3.1 Goal

The goal of PEEP is to improve the enabling environment for the agriculture sector in Punjab to promote private sector led growth, especially focusing on the horticulture and dairy and livestock sub-sectors. PEEP will help create internationally competitive policy environment for horticulture, livestock and dairy sub-sectors, providing the private sector with the security required for investments in agriculture aimed at improving the quality and quantity of produce in the domestic market.

PEEP will contribute towards USAID/Pakistan’s “DO 2: Increased Incomes and Employment in Target

Sectors”, specifically it will:

(a) Generate new employment attributed to program implementation

(b) Increase project-related incomes of USG targeted beneficiaries

C.3.2 Objectives

To achieve the project’s goal, PEEP will:

(a) Accelerate advocacy for policy, regulatory and institutional reforms through the private sector, leading to early adoption, approval and implementation of the reforms;

(b) Support institutional capacity building to sustain reforms; and

(c) Mobilize private sector investments in horticulture, livestock and dairy projects through improvement in the business enabling environment.

These interventions are meant to spur private sector investment, which in turn will result in meeting the higher development objective of generating employment and increasing incomes.

As a result, there is expected an improved business environment by reducing the cost and time of doing business and affecting policy and regulatory reforms through consultative mechanisms.

These demand driven business reforms will be implemented at the district and provincial level by identifying discrete process re-engineering interventions that the government, private sector and academia are committed to changing. The implementation of the reform agenda will be supported with robust advocacy efforts (see Component 1).

PEEP will also directly relate to USAID/Pakistan’s Logical Framework (Attachment J-6)

C.4 STATEMENT OF WORK

C.4.1 Overview

USAID/Pakistan believes the following elements are relevant to broader enabling environment reform:

Development of key policy reform priorities (identified by the private sector) and processes should include support for action oriented analysis and results oriented advocacy;

Skills and capacity development and support for institutional development and change management necessary to implement reforms, including in the private as well as NGO sectors is essential for long term success and sustainability;

Creation of reform-oriented networks and strengthening key organizations within those networks in order to advocate for, provide input into and, ultimately, sustain reform efforts are required;

Incentives for private sector investors to take advantage of policy reforms on an accelerated basis are necessary in order to solidify reforms through their implementation; and

Incentives for private sector and non-governmental organizations to undertake activities that introduce and demonstrate innovative practices to market participants as well as to inform the development of government reforms will facilitate long-term sustained development of the agriculture sector.

PEEP stakeholders include private sector entrepreneurs, civil society actors, including local universities, business service agencies and the GoPb. PEEP will improve the Business Enabling Environment (BEE) by accelerating advocacy and implementation of policy, regulatory and institutional reforms based largely on input from the private sector. Core advocacy groups will be established that will involve the civil society and the private sector collectively identifying and advocating the drafting and implementation of initiatives to improve the business environment. Project interventions will result in mobilizing private sector investments in horticulture, livestock and dairy projects and development of government’s capacity to respond more promptly to the needs of the private sector. (see Attachment J-7 – PEEP Activity Flow Chart)

To the greatest extent possible, PEEP will engage local service providers for the implementation of its activities. PEEP will be a facilitator and active supporter of its local counterparts in developing and mastering a variety of skills necessary for the effective implementation of project interventions. PEEP will also collaborate with other organizations to create synergies and capitalize on the best use of resources to implement program activities.

C.4.2 Project Components and Deliverables

This section sets forth the required and anticipated activities under each component. Required activities must be carried out by the Contractor. The Contractor may propose additional details and/or alternate activities that meet the objectives of each Component.

In addition to the specific deliverables prescribed under each component, the Contractor must provide the deliverables prescribed in section F.5 and achieve these deliverables as a measure of progress made towards implementation of each of the project activities.

C.4.2.1 Component 1: Accelerate advocacy for policy, regulatory and institutional reforms through the private sector, leading to early adoption and implementation of the reforms.

Through this component, PEEP will focus on existing and new BEE reforms and develop a work plan that accelerates advocacy which is inclusive of public and private sector perspectives and bridges the gap between reforms and private sector investment. The project will measure the effectiveness of these reforms by the incremental investment in target sectors as a result of change in local business perception.

Required activities include:

(a) While measuring success through BEE indicators, promote key market reforms by:

o Supporting development and implementation of laws and regulations dealing with laws and regulations pertaining to the dairy, horticulture, or livestock sectors;

o Increasing domestic and foreign investment in provincial livestock; dairy and horticulture value chains; and o Improving the ability of civil society organizations and business development service providers to engage constructively with government

(b) Support private sector and/or civil society by providing technical assistance to promote constructive dialogue between government, civil society and the private sector for the development and implementation of legislation (for instance by promoting constituency-building efforts , and/or carrying out public education campaigns)

(c) Administering a grants program totaling $300,000 aimed at spurring private investment in agriculture, dairy, and livestock sectors.

(d) Provide in-kind donations to government departments (e.g. agriculture, livestock, food, and others) to support the implementation of reforms

(e) Provide training to help enhance the productivity of private sector actors.

(f) Promote market led price structures of dairy, livestock and horticulture products

(g) To the extent USG policy permits, support government efforts to develop and implement reforms related to the new laws governing agriculture and livestock markets, price structures, inspection regime, and licensing policies

(h) Facilitate private sector partners in creating comprehensive BEE reform strategies based on the legislative work already done by the USAID FIRMS Project. These documents should clearly identify opportunities for BEE regulatory reforms to assist the horticulture, livestock and dairy sectors become more competitive and conducive for investment.

(i) A minimum of ten advocacy roundtables are organized annually and well attended by relevant stakeholders from target sectors including private, public and NGO sectors; and

(j) Within six (6) months after the award date, a “Core Advocacy Group” consisting of leading entrepreneurs, representatives of sector associations, members of business support organizations, civil society, and relevant government officials is established within the target sectors and supported throughout the life of the project. This group will be linked with the Value Chain

Platforms (VCP) established by ASF (see below discussion); This group must hold meetings no less frequently than on a quarterly basis for the life of the project

Technical Deliverables:

(k) The Contractor will submit to the COR the BEE (Provincial Competitiveness Index) evaluation indicators which are critical to promoting private sector investment in the targeted value chains in

Punjab. These indicators will be used to assess progress made on BEE in districts of Punjab only

(for an example of how BEE indicators have been used in a past project, see Attachment J-8 -

Discussion Paper on BEE Indicators in Vietnam). The Contractor will provide the following BEE deliverables:

o Within three months after the award, the Contractor will provide a list of BEE indicators to the COR for approval;

o Within six (6) months after the award, the Contractor will carry out a baseline survey based on these indicators. The survey will assess existing laws and regulations and identify potential partners including civil society organizations and decision makers;

o By no later than the end of the third year, the Contractor will complete a midterm evaluation of the BEE indicators measuring how much change has occurred in the BEE and how many local institutions have adopted reforms; and o By no later than thirty days before the contract completion date, the Contractor will complete a final evaluation of the BEE indicators.

(l) Within 12 months after the award date, the Contractor will develop a reform implementation plan based on the BEE reform strategies to identify number of existing and new reforms implemented during the life of the project.

(m) Within one year of project implementation, the Contractor will provide the AOR with a written plan for the distribution of in-kind grants

(n) Within nine months after the award date and subsequently at the end of every ninth month of every year of the project, the Contractor will compile and submit Annual Reform Progress

Reports that capture and contrast the reform efforts among each of the target sectors (covering all three components);

(o) Within one week following each roundtable and “Core Advocacy Group” meeting, minutes of the meetings shall be shared with the COR

C.4.2.2 Component 2: Support institutional capacity building to sustain enabling environment reforms.

Enabling environment reforms are unlikely to be either successful or sustainable without private sector and non-governmental organizations active participation and support. It is also unlikely that reforms could be of any help if regulating agencies, policy institutions, and public sector institutions are not restructured, reorganized or enabled in tandem with the changes in the markets. This is a continuous process and the relevant organizations should have the formal mechanism and capacity to undertake BEE reforms beyond the life of the project.

(a) Support the Agriculture, Livestock and Dairy, and Food Departments to build their capacity and to transform the role of government from major market participant to effective market facilitator;

(b) Develop capacity of two universities, two business organizations (duly registered by the appropriate governmental authority), and one government policy institution in Punjab to undertake market growth and constraints analysis and sector assessments of the horticulture, livestock and dairy sectors. These capacity-building interventions are to support the organizations becoming leading

Public Policy Research entities in the Punjab. This will be achieved through a combination of TA and grants (in-kind and/or monetary, the total value of which should be $700,000);

(c) The capacity of at least 15 industry associations with five in each sector is developed and they are supported in expanding the menu of services offered to members to improve their overall individual and sector performance. This may be achieved through grants and/or technical assistance; and

(d) The capacity of three public sector organizations (one each in horticulture, livestock and dairy sectors) are built and staff members trained in setting and monitoring standards.

(e) Within nine months, at least three sub-awards for the development or strengthening of public policy research institutions will be made;

(f) By the end of Year Two, the Contractor will arrange for a third party evaluation of all local organizations and government departments that benefit from the project’s Organizational Capacity

Development assistance. The Contractor will ensure that three subsequent assessments are carried out in Year 3, 4, and 5.

(g) Within six months following the award date, the Contractor will submit for COR approval a detailed capacity building strategy for the GoPb,

(h) Within six months following the award date, the Contractor will submit for COR approval a plan for providing TA to universities, business organizations and public sector institutions for public policy research.

(i) Within nine months of award, provide the Contractor will submit to the COR a detailed plan for providing the technical assistance to be offered to build the capacity of industry associations.

(j) Before the end of Year One, performance criteria for the assessment of capacity development efforts for local organizations must be submitted to the COR for clearance

(k) The four organizational capacity development assessment reports must be submitted to the COR no later than one month following the end of the period covered by the report.

The Contractor is required to implement the above described strategy and plans throughout the life of the project after receiving written approval by the COR. Any changes must be approved in writing by the COR.

C.4.2.3 Component 3: Mobilize major private sector investments in horticulture, livestock and dairy projects in support of changes in the business enabling environment.

PEEP will contribute to a more productive and profitable dairy, livestock and horticulture sectors by supporting activities that increase private investment in the sectors and enhance competitiveness of dairy, livestock and horticulture products in the domestic and international markets. Resources under this component will be focused on activities that improve the supply, quality and marketability of dairy, livestock and horticulture products. These interventions will in turn result in meeting the higher development objective of generating employment and increasing incomes.

Often in an uncertain regulatory regime, the private sector is unwilling to invest in new areas or increase investment in on-going enterprises to expand operations. The associated risk with a BEE such as in the

Punjab limits growth. To overcome some of this risk adversity and to complement and solidify policy gains, PEEP will provide select piloting cost share grants, Transaction Advisory Services (TAS) , and feasibility studies for key value chain investments. These investments will demonstrate new areas for commercial enterprise or expansion led by the private sector, leading to investment mobilization and concluding with new business start-ups. These private sector driven activities will restructure sectors and value chain components such as production, processing, packaging, storage and, markets to make them pro private sector, investor friendly and market driven.

(a) Provide TA related to spurring successful private sector investment based on feasibility studies and planned policy reform. This may include Business Development Services (financial or managerial) to companies in support of investment promotion.

(b) Support transaction advisory services through local and international organizations to complete financial transactions in groundbreaking initiatives, such as the establishment of private agricultural markets and slaughterhouses.

(c) Minimum of one Transaction Advisory Service (TAS) undertaken to implement the new reforms in the first year followed by 4 TAS each in years 2 to 4 and 2 TAS in year 5 for a total of 15

TAS’s which contribute to implementing the new reforms.

(d) Implement a competitive grants program with a value of $4 million. The program should be geared towards private sector entities to promote investment in horticulture, livestock, and dairy sectors and clearly linked to other interventions in order to ensure maximal impact. The

Contractor is expected to release three Requests for Applications throughout the life of the award:

The first RFA should be released within ninety days after the award..

(e) Selection criteria and draft Request for Applications for the competitive grants program shall be submitted to the AOR for approval within ninety days of award (before releasing the RFA).

(f) The Grants Manual (see F.5.1.3) shall provide a detailed description of the competitive grants program, along with the projected number and amount of grants which will be distributed each year.

(g) Five feasibility studies that address increased investment opportunities and/or private sector expansion will be completed within 18 months after award.

C.4.3 Performance Management Plan

A Transaction Advisor Service is a series of financial, technical, commercial and legal advisory services leading to a bankable project for potential investors.

A Performance Management Plan (PMP) is required which must contain the indicators shown below (at a minimum). The contractor will establish ambitious yet achievable targets for each of these indicators in coordination with the COR.

Higher Level Targets:

$150 million in private sector resources leveraged

15,000 direct and indirect employment opportunities created over the life of the project in the target sectors.

Indicators – Required:

Number of jobs created as a result of project interventions

Increase in income of project beneficiaries

Value of private sector investments in the targeted sectors, disaggregated by sectors and regions

Number of policies, regulations, administrative procedures at a given stage of development as a result of USAID assistance

Growth rate of investment in targeted sectors

Value of supported value chains, non-agriculture economic activities and start-ups

Changes in local business perception indicators as measured by the project through periodic surveys

Number of innovations rolled out to business entities for value-chain production

Number of procedures reduced or simplified as measured via time and cost studies

Number of private and public sector organizations capable of initiating and undertaking BEE reforms

Number of private sector requested laws reviewed and analyzed to identify bottlenecks and advocated for reforms

Value of Incremental Sales attributable to project implementation

Increase in annual Export Sales of targeted commodities as a result of project implementation

Number of firms requiring Business Development Services (BDS) and willing to pay for them

Number of policies/regulations/administrative procedures developed as a result of USG assistance

Local Organizational Capacity Assessment Score (points against index) USAID will provide a list of third party evaluators and the contractor would be responsible for the services rendered by the evaluators.

Number of persons receiving USG supported training on policy development, analysis, and implementation

Number of USG-assisted organizations and stakeholders that

The Contractor is to padditional indicators that will assist in measuring the effectiveness and sustainability of efforts under this contract.

Special Targets:

Private sector leveraging refers to cash and in-kind contributions from external organizations. Contributions from the implementer and its subawardees do not count towards this leveraging target.

For reporting purposes, a “job” will count as employment for a least 6 months per year, 40 hours per week. Staff employed by the Contractor and its subawardees to administer PEEP do not count towards this target.

The Contractor will develop Special Targets which focus on the first 24 months of project implementation.

To ensure that the Project Components are truly reflective of local need for reforms, the targets will be subject to revision and expansion as project activities are undertaken. Establishment of specific targets for numbers of high priority policy reforms and strategic initiatives will be finalized after the Life of Project

Work Plan is submitted to the COR by the Contractor and reviewed as periodic progress reviews are conducted by USAID. Final targets will be approved by the COR after considering the following:

Evidence that the suggested approach for reforms and interventions will significantly improve the

BEE in the target sectors and improve institutional capacity;

Evidence that the approach and interventions will result in improved private sector investment in horticulture, livestock and dairy sectors;

Evidence that the improved enabling environment in the target sectors will have the potential for generating new employment and increasing incomes; and

Evidence that the proposed initiatives offer the best combination of maximum impact; most ownership; least amount of time needed and lowest cost.

C.5 CROSS-CUTTING PRINCIPLES

C.5.1 Relevance/Ownership

USAID is committed to ensuring continuous, effective participation of key stakeholders and beneficiary groups in its program. The question, “How well is/was the activity focused on the needs of the beneficiaries?” is one of several governing principles that will guide the design, implementation, monitoring and impact assessment of the activity. To achieve this objective, the Contractor shall demonstrate an ability to fully integrate stakeholders and beneficiary groups into activity implementation and evaluation.

An important part of such integration is demonstrating that all aspects of the activity remain relevant to the stakeholders throughout the implementation phase, and that ownership by stakeholders and beneficiaries, in particular by local partners, is regularly assessed and assured. This is an important foundation for achieving sustainability, as discussed in section C.5.2. In addition to the over-arching question noted above, the points below address relevance and ownership and are to be integrated into all program components, including the performance management plan, staffing, and outreach:

Does the activity remain responsive to the expressed needs of beneficiaries and the majority of stakeholders?

Are stakeholders being engaged and involved in a substantive way throughout the activity life cycle?

Is the consultative process inclusive and not perceived to be favoring large firms? Are beneficiary target groups still appropriate?

Are key stakeholders involved in work planning, including decisions on budget priorities and short-term technical assistance requirements?

Are realistic needs assessments being conducted, documented and discussed with key stakeholders?

Do beneficiary groups and stakeholders remain committed to sustainability, in demonstrated ways?

C.5.2 Sustainability

The history of the external donor community in Pakistan is replete with experiences, including from

USAID, of interventions which were not designed, implemented or assessed with a keen eye to ensuring the successful continuation of relevant components without further donor aid. USAID/Pakistan seeks to rectify this problem by identifying and incorporating in its portfolio, discrete aspects of new activities which have the potential to achieve the following:

In the absence of donor assistance, the Punjab government should be able to:

- identify and address key business growth barriers, draft and implement a set of coherent and financially viable business development policies that allow robust business and export growth while remaining sensitive to the needs of a large segment of firms;

- implement strategies facilitating SMEs access to business resources and services from a thriving private sector; and

- institute mechanisms which ensure that private sector firms continues to improve efficiency.

The business service agencies, private sector and partner organizations are able to continue providing resources or services to the business sector on a cost recovery basis and are not dependent on external assistance. They are able to develop strategic partnerships locally or internationally to effectively respond to evolving needs of businesses.

Activities can be replicated in other geographic locations or sub-sectors.

The Contractor shall ensure that project implementation provides for institutional strengthening activities that address both short- long-term (i.e.