Sol_SOL-514-16-000013_(01).pdf

®~~~JQ I COLOMBIA

Date Issued: .......................................................... May 27, 2016

Questions Due date and time: .. ............................ June 9, 2016 15:00 LT (20:00 GMT)

Bidders' conference ............................................. June 16, 2016 10:00 LT (15:00 GMT)

Closing Date and time: ..... .. ........... ... .... ...... .......... July 8, 2016 15:00 LT (20:00 GMT)

Subject: ................................................................ SOL-514-16-000013 (0 I)

SOLICITATION - PRODUCERS TO MARKETS ALLIANCE

Dear Sir/Madam:

The United States Government, represented by the United States Agency for International Development (USAID)/Colombia, is seeking to acquire the services of a Contractor through a full & open competition process IA W FAR Part 15, for a Cost plus Fixed- Fee (CPFF) completion type award for a period of five years. The purpose of this activity is to improve the competitiveness of rural producers to respond to new and expanding market opportunities, ensure sustainability and increase profitability for rural producers and other actors in the selected value chains. There are no excluded sources for this solicitation.

~uthorized PrinciQal GeograQhic Code for this solicitation is 937 - Default. NAICS Code for this solicitation is 541990 - All Other Professional, Scientific and Technical Services.

Electronic Responses are required (See Section L). Please submit your Proposals to the e-mail addresses below by July 8, 2016@3:00 P.M. (Local Colombian Time). Receipt by any one of these two addressees will constitute timely receipt for this Request for Proposal (RFP). Receipt time is when the Proposal is received by AID/Washington internet server. The addresses for the receipt of proposals are:

matuesta@usaid.gov and maponte@usaid.gov. Hand delivered proposals (including commercial courier) and facsimile transmission will not be accepted.

The Technical Proposal has a strict thirty (30) page limit. Offerors are advised that any pages exceeding this limit will not be evaluated. Offerors are reminded that the Evaluators have to be able to read the proposals, so presentation and legibility are crucial.

Interested firms can register and use the Interested Vendor List {IVL) accessible through this solicitation on www.fbo.gov, so that firms can contact one another for consideration of teaming arrangements and/or small business subcontracting opportunities in response to this solicitation.

Exclusivity agreements with local organizations and individuals are strongly discouraged by USAID. This RFP does not obligate the United States Government to award a contract, nor does it commit USAID to pay for any costs incurred in the preparation or submission of proposals. USAID reserves the right to award this contract without discussions.

Sincerely, Martha L. A12onte Contracting Officer Office of Acquisition & Assistance USAID/Colombia

Page I of l 15 mailto:matuesta@usaid.gov mailto:maponte@usaid.gov http://www.fbo.gov/

RFP-514-16-000013 – PRODUCERS TO MARKETS ALLIANCE TABLE OF CONTENTS

TABLE OF CONTENTS

SECTION A - SOLICITATION/CONTRACT FORM

PART I - THE SCHEDULE

SECTION B - SUPPLIES OR SERVICES AND PRICE/COSTS

B.1. PURPOSE

B.2. CONTRACT TYPE

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

B.4. INDIRECT COSTS (DEC 1997)

B.5. COST REIMBURSABLE

B.6. MULTI-YEAR CONTRACT AND CANCELLATION CEILING

B.7. FEE SCHEDULE

SECTION C - DESCRIPTION/SPECIFICATIONS

C.1. PURPOSE

C.2. BACKGROUND

C.3. ACTIVITY VISION/APPROACH

C.4. TASKS

C.5. KEY PERSONNEL

SECTION D - PACKAGING AND MARKING

D.1. NOTICE LISTING CLAUSES INCORPORATED BY REFERENCE

D.2. BRANDING STRATEGY

SECTION E - INSPECTION AND ACCEPTANCE

E.1. NOTICE LISTING CLAUSES INCORPORATED BY REFERENCE

E.2. INSPECTION AND ACCEPTANCE

E.3. PERFORMANCE STANDARDS

SECTION F - DELIVERIES OR PERFORMANCE

F.1. NOTICE LISTING CLAUSES INCORPORATED BY REFERENCE

F.2. PERIOD OF PERFORMANCE

F.3. PLACE OF PERFORMANCE

F.4. AUTHORIZED WORK DAY/WEEK

F.5. REPORTS AND DELIVERABLES

F.6. REPORTING AND DELIVERABLES MATRIX

F.7. KEY PERSONNEL

SECTION G - CONTRACT ADMINISTRATION DATA

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

G.2. DESIGNATION OF RESPONSIBLE USAID OFFICIALS

G.3. CONTRACTING OFFICER'S AUTHORITY

G.4. TECHNICAL DIRECTIONS / RELATIONSHIP WITH USAID

G.5. ACCEPTANCE AND APPROVAL

G.6. INVOICES AND PAYMENT

G.7. DESIGNATION OF CONTRACTOR PRIMARY POINT-OF CONTACT

G.8. CONTRACTOR’S PAYMENT ADDRESS

G.9. SOURCE OF FUNDS AND FISCAL DATA

SECTION H - SPECIAL CONTRACT REQUIREMENTS

H.1. NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE

H.2. 752.209-71 ORGANIZATIONAL CONFLICT OF INTEREST DISCOVERED AFTER AWARD

(JUN 1993)

H.3. 752.225-70 SOURCE AND NATIONALITY REQUIREMENTS (FEB 2012)

H.4. 752.228-3 WORKER’S COMPENSATION INSURANCE (DEFENSE BASE ACT) DEC 1991 . 51

H.5. 752.228-70 MEDICAL EVACUATION (MEDEVAC) SERVICES (JULY 2007)

H.6. 752.245-71 TITLE TO AND CARE OF PROPERTY (APR 1984)

H.7. 752.7004 EMERGENCY LOCATOR INFORMATION (JUL 1997)

H.8. 752.7005 SUBMISSION REQUIREMENTS FOR DEVELOPMENT EXPERIENCE DOCUMENTS

(SEPTEMBER 2013)

H.9. 752.7007 PERSONNEL COMPENSATION (JULY 2007)

H.10. ADS 206.3.12 PROHIBITION OF ASSISTANCE TO DRUG TRAFFICKERS

H.11. ADS 302.3.4.13 GRANTS UNDER CONTRACTS (GUCS)

H.12. ADS 302.3.5.5 REPORTING OF FOREIGN TAXES (JULY 2007)

H.13. ADS 302.3.5.9 NONDISCRIMINATION (June 2012)

H.14. ADS 302.3.5.19 USAID-FINANCED THIRD-PARTY WEB SITES (AUGUST 2013)

H.15. ADS 302.3.5.20 CONFERENCE PLANNING AND REQUIRED APPROVALS (AUGUST 2013) 61

H.16. REPRESENTATION BY CORPORATION REGARDING A DELINQUENT TAX LIABILITY OR

A FELONY CRIMINAL CONVICTION (Deviation OAA-DEV-14-02c) (AUGUST 2014)

H.17. EXECUTIVE ORDER ON TERRORISM FINANCING

H.18. EXECUTIVE ORDER -- CLIMATE-RESILIENT INTERNATIONAL DEVELOPMENT

H.19. AUTHORIZED GEOGRAPHIC CODE

H.20. USAID IMPLEMENTING PARTNER NOTICES (IPN) PORTAL FOR ACQUISITION (JULY

2014) 63

H.21. SUBMISSION OF DATASETS TO THE DEVELOPMENT DATA LIBRARY (DDL)

H.22. LANGUAGE REQUIREMENTS

H.23. LOGISTIC SUPPORT

H.24. USAID IMPLEMENTATION OF SECTION 508 OF THE REHAB. ACT OF 1978 AND FAC 97-27

“ELECTRONIC IT ACCOUNTABILITY”

H.25. SECURITY CONDITIONS

H.26. SECURITY REPORTING

H.27. USAID/COLOMBIA COMMUNICATIONS AND OUTREACH REQUIREMENTS

H.28. SUBCONTRACTING PLAN AND THE SF 294 – SUBCONTRACTING REPORT FOR

INDIVIDUAL CONTRACTS AND SF 295 – SUMMARY CONTRACTING REPORT

H.29. ENVIRONMENTAL COMPLIANCE

H.30. USAID LEGAL AND POLICY CONSIDERATIONS

H.31. ELECTRONIC PAYMENTS SYSTEM

H.32. ELECTRONIC AND INFORMATION TECHNOLOGY ACCESSIBILITY (MAY 2016)

H.33. CLOUD COMPUTING (MAY 2016)

PART II - CONTRACT CLAUSES

SECTION I - CONTRACT CLAUSES

I.1. 52.252-2 CLAUSES INCORPORATED BY REFERENCE. (FEB 1998)

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

I.3. 52.244-2 SUBCONTRACTS (OCT 2010)

I.4. 52.244-2 SUBCONTRACTS (OCT 2010) - ALTERNATE I (JUN 2007)

I.5. 52.247-1 COMMERCIAL BILL OF LADING NOTATIONS. (FEB 2006)

I.6. 52.247-67 SUBMISSION OF TRANSPORTATION DOCUMENTS FOR AUDIT. (FEB 2006) . 84

I.7. 52.203-98 PROHIBITION ON CONTRACTING WITH ENTITIES THAT REQUIRE CERTAIN

INTERNAL CONFIDENTIALITY AGREEMENTS - REPRESENTATION (APR 2015) (DEVIATION 2015-

02) 84

I.8. 52.203-99, PROHIBITION ON CONTRACTING WITH ENTITIES THAT REQUIRE CERTAIN

INTERNAL CONFIDENTIALITY AGREEMENTS (APR 2015) (DEVIATION 2015-02)

I.9. 752.245-70 GOVERNMENT PROPERTY - USAID REPORTING REQUIREMENTS. (JUL 1997)85

PART III – DOCUMENTS AND OTHER ATTACHMENTS

SECTION J - LIST OF DOCUMENTS, EXHIBITS AND OTHER ATTACHMENTS

J.1. ATTACHMENT 1 – SF-LLL - DISCLOSURE OF LOBBYING ACTIVITIES

J.2. ATTACHMENT 2 - PAST PERFORMANCE INFORMATION

J.3. ATTACHMENT 3 - BUDGET TEMPLATE

J.4. ATTACHMENT 4 - USAID FORM 1420-17 - CONTRACTOR BIOGRAPHICAL DATA SHEET 87

J.5. ATTACHMENT 5 - SMALL BUSINESS SUBCONTRACTING PLAN

J.6. ATTACHMENT 6 - BRANDING IMPLEMENTATION PLAN AND MARKING PLAN

J.7. ATTACHMENT 7 - Assessment of the USAID/Colombia ADAM/MIDAS/CELI Activities

J.8. USEFUL LINKS

PART IV – REPRESENTATION AND INSTRUCTIONS

SECTION K - REPRESENTATIONS, CERTIFICATIONS, AND OTHER STATEMENTS OF BIDDERS . 88

K.1. NOTICE LISTING SOLICITATION PROVISIONS INCORPORATED BY REFERENCE

K.2. 52.204-8 ANNUAL REPRESENTATIONS AND CERTIFICATIONS. (APR 2016)

K.3. 52.209-5 CERTIFICATION REGARDING RESPONSIBILITY MATTERS. (OCT 2015)

K.4. 52.209-7 INFORMATION REGARDING RESPONSIBILITY MATTERS. (JUL 2013)

K.5. SIGNATURE

SECTION L - INSTRUCTIONS, CONDITIONS, AND NOTICES TO BIDDERS

L.1. NOTICE LISTING CLAUSES INCORPORATED BY REFERENCE

L.2. 52.216-1 TYPE OF CONTRACT. (APR 1984)

L.3. 52.233-2 SERVICE OF PROTEST. (SEP 2006)

L.4. 52.252-1 SOLICITATION PROVISIONS INCORPORATED BY REFERENCE. (FEB 1998) .. 96

L.5. EXPLANATION TO PROSPECTIVE OFFERORS

L.6. GENERAL INSTRUCTIONS TO OFFERORS

L.7. JOINT VENTURES

L.8. PROPOSAL FORMAT AND CONTENT

L.9. INSTRUCTIONS FOR THE PREPARATION OF THE TECHNICAL PROPOSAL

L.10. INSTRUCTIONS FOR PREPARATION OF THE COST PROPOSAL

L.11. BRANDING IMPLEMENTATION PLAN AND MARKING PLAN

SECTION M - EVALUATION FACTORS FOR AWARD

M.1. METHOD OF EVALUATION

M.2. EVALUATION FACTORS

M.3. SOURCE SELECTION

M.4. DETERMINATION OF COMPETITIVE RANGE

M.5. CONTRACTING WITH SMALL BUSINESS CONCERNS

[INTENTIONALLY LEFT BLANK]

SOL-514-16-000013

SOLICITATION, OFFER AND AWARD

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

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

ORDER UNDER DPAS (15 CFR 700)

6. REQUISITION/PURCHASE NUMBER

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

NEGOTIATED (RFP)

SEALED BID (IFB)

5. DATE ISSUED

1. THIS CONTRACT IS A RATED RATING PAGE OF PAGES

5 115

C. E-MAIL ADDRESS

EXT.NUMBERAREA CODE

B. TELEPHONE (NO COLLECT CALLS)A. NAME

10. FOR

INFORMATION

CALL:

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

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

SOLICITATION

9. Sealed offers in original and

PART IV - REPRESENTATIONS AND INSTRUCTIONS

OTHER STATEMENTS OF OFFERORS

EVALUATION FACTORS FOR AWARD

INSTRS., CONDS., AND NOTICES TO OFFERORS

REPRESENTATIONS, CERTIFICATIONS AND

LIST OF ATTACHMENTS

CONTRACT CLAUSES

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

I

J

K

L

M SPECIAL CONTRACT REQUIREMENTS

CONTRACT ADMINISTRATION DATA

DELIVERIES OR PERFORMANCE

INSPECTION AND ACCEPTANCE

PACKAGING AND MARKING

DESCRIPTION/SPECS./WORK STATEMENT

SUPPLIES OR SERVICES AND PRICES/COSTS

SOLICITATION/CONTRACT FORM

PART II - CONTRACT CLAUSESPART I - THE SCHEDULE

H

G

F

E

D

C

B

A

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

11. TABLE OF CONTENTS

18. OFFER DATE17. SIGNATURE

SUCH ADDRESS IN SCHEDULE.

IS DIFFERENT FROM ABOVE - ENTER

15C. CHECK IF REMITTANCE ADDRESS

EXT.NUMBERAREA CODE

15B. TELEPHONE NUMBER

(Type or print)AND

ADDRESS

OF

OFFEROR

CODE FACILITY

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

DATEAMENDMENT NO.DATEAMENDMENT NO.

and related documents numbered and dated):

amendments to the SOLICITATION for offerors

(The offeror acknowledges receipt of

14. ACKNOWLEDGEMENT OF AMENDMENTS

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

(See Section I, Clause No. 52.232.8)

13. DISCOUNT FOR PROMPT PAYMENT

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

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

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

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

OFFER (Must be fully completed by offeror)

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

28. AWARD DATE

(Signature of Contracting Officer)

27. UNITED STATES OF AMERICA

25. PAYMENT WILL BE MADE BY

26. NAME OF CONTRACTING OFFICER (Type or print)

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

ITEM

(4 copies unless otherwise specified)

23. SUBMIT INVOICES TO ADDRESS SHOWN IN

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

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

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

AWARD (To be completed by government)

CODE

05/27/2016REQ-514-16-000024

X

COLOMBIA

USAID Colombia 00001 Office of Acquisition & Assistance Unit 3030, Box 5101

DPO, AA 34004

34004

1500 LT 07/08/2016

Miguel Atuesta 571 matuesta@usaid.gov

275-4162

PAGE(S)

Martha L. Aponte

AUTHORIZED FOR LOCAL REPRODUCTION

Previous edition is unusable

STANDARD FORM 33 (Rev. 9-97)

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

SOL-514-16-000013 – PRODUCERS TO MARKETS ALLIANCE SECTION B

PART I - THE SCHEDULE

SECTION B - SUPPLIES OR SERVICES AND PRICE/COSTS

B.1. PURPOSE

USAID/Colombia is seeking the services of a contractor for a five-year Activity (2016 – 2021) in the range of USD $67 – $74.5 Million that will improve the competitiveness of rural producers to respond to new and expanding market opportunities. The initiatives designed under this activity are market-led and focus on meeting the expectations of end markets, to ensure sustainability and increased profitability for rural producers and other actors in the selected value chains. The Producers to Market Alliance (PMA) Activity will help close business deals between producers and buyers to increase incomes of small farmers, including women heads of household and members of minority ethnic groups in rural municipalities that are important to achieving a sustainable and inclusive peace in Colombia.

B.2. CONTRACT TYPE

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

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

B.3.1. 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.3.2. Within the estimated Cost Plus Fixed-Fee (if any) specified in paragraph (a) above, the amount currently obligated and available for reimbursement of allowable costs incurred by the Contractor (and payment of fee, if any) for performance hereunder is TBD. The Contractor must not exceed the aforesaid obligated amount.

B.3.3. Funds obligated hereunder are anticipated to be sufficient through TBD.

B.3.4. The following is the Budget summary for this activity:

Description Total ($)

Activity Costs………………………

Non-construction sub activities………

Construction subcontracts……………

Total Activity Fund……………………..

Total Estimated Cost……………………

Fixed-Fee……………………………….

Total Estimated Cost Plus Fixed Fee

B.4. INDIRECT COSTS (DEC 1997)

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

Description Rate Base Type Period

1/Base of Application: 1/ 1/ 1/

Type of Rate: Predetermined Period:

2/Base of Application: 2/ 2/ 2/

Type of Rate: Predetermined Period:

3/Base of Application: 3/ 3/ 3/

Type of Rate: Predetermined Period:

B.5. COST REIMBURSABLE

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

B.6. MULTI-YEAR CONTRACT AND CANCELLATION CEILING

This contract is subject to the requirements of FAR 17.106.

(a) Performance under this contract during the second and subsequent program years is contingent upon the appropriation of funds. All program years except the first are subject to cancellation. Cancellation shall occur by the dates specified below if the Contracting Officer:

1. Notifies the Contractor that funds are not available for contract performance for any subsequent program year, or

2. Fails to notify the Contractor that funds are available for performance of the succeeding program year.

(b) Cancellation Ceiling:

In the event that the Government cancels requirements for services in subsequent program years under this contract, the following conditions will apply.

(c) If cancellation under the clause at 52.217-2, “Cancellation Under Multi-year Contracts” occurs, the contractor will be paid a cancellation charge not over the cancellation ceiling defined as follows:

Program Year Cancellation Date Cancellation Ceiling

Year 1: 201X – 201X N/A N/A

Year 2: 201X – 201X TBD $0

Year 3: 201X – 20XX TBD $0

Year 4: 20XX – 20XX TBD $0

Year 5: 20XX – 20XX TBD $0

The Government’s liability for cancellation charges shall not exceed $0. This amount will be reduced accordance with FAR 17.106-1 (c)(1) at the conclusion of each program year as follows:

The cancellation ceiling shall be the amount allotted to this contract under the Limitation of Funds clause (FAR 52.232-22(b)) at the time the cancellation notice is issued by the Contracting Officer.

(d) In accordance with the Cancellation under Multi-year Contracts clause, the cancellation charge will cover only:

(1) Costs-

(i) Incurred by the contractor and/or subcontractor;

(ii) Reasonably necessary for performance of the contract; and

(iii) That would have been equitably amortized over the entire multi-year contract period but, because of the cancellation, are not so amortized; and

(2) A reasonable profit or fee on the costs.

B.7. FEE SCHEDULE

Pursuant to FAR 16.306(d), the fixed fee payable under this contract will be tied to the completion of deliverables specified in Section F.6 and in accordance with the schedule below:

[END OF SECTION B]

SOL-514-16-000013 – PRODUCERS TO MARKETS ALLIANCE SECTION C

SECTION C - DESCRIPTION/SPECIFICATIONS

STATEMENT OF WORK

C.1. PURPOSE

The purpose of the activity is to improve the competitiveness of rural producers to respond to new and expanding market opportunities. The initiatives designed under this activity are market-led and focus on meeting the expectations of end markets, to ensure sustainability and increased profitability for rural producers and other actors in the selected value chains. The Producers to Market Alliance (PMA) Activity will help close business deals between producers1 and buyers to increase incomes of small farmers, including women heads of household and members of minority ethnic groups in rural municipalities that are important to achieving a sustainable and inclusive peace in Colombia.

The activity will support a three prong approach as follows:

C.1.1. Increased export sales by connecting producers to markets.

C.1.2. Increased production that responds to market demand.

C.1.3. Increased investment in rural infrastructure2 that enables markets to work efficiently.

In order to support the three main components, the Contractor will implement a “Learning and Communication” agenda to generate knowledge for the development community, measuring and documenting the Activity’s achievements and shortcomings, so that the Agency’s multiple stakeholders gain an understanding of the return on investment of the proposed initiatives.

The Contractor will strategically use a market-led system, or demand driven approach, to expand export opportunities, improve the capacity of producers and rural business to respond to markets and promote investment in rural infrastructure that will facilitate trade. The Contractor will help increase productivity, output, and market share of farm and non-farm activities in the value chains in the domestic, regional and export markets; thereby increasing incomes and employment opportunities in targeted rural areas.

C.1.4. By the end of the Activity, expected results include the following:

• Increased total value of exports by at least 300 to 500% (depending on the economic activity and product demand) of targeted value chains as producers respond to market demand. See Attachment J.7 for further information on these activities.

• Increased farm gate sales by at least 250 to 300% (depending on the economic activity and product demand) of the total overall annual sales, due to enhanced production volumes and technical capacity.

• At least $130 Million in transaction sales from the targeted value chains in the targeted geography.

• At least $50 million of leveraged public/private funds successfully executed by the GOC, territorial entities and/or their private partners in service infrastructure (tertiary roads3, irrigation, energy, storage, post-harvesting facilities, etc.) to facilitate production and sales of key value chain products.

1 For this activity, producers include individuals, associations, cooperatives, formal and informal productive groups and organizations.

2 Rural infrastructure includes tertiary roads, irrigation systems, post-harvesting facilities, electrification and other infrastructure that facilitates business deals to be successful.

3 Tertiary roads (for this activity) are defined as dirt roads (roads not paved) in rural areas that connect villages (veredas in Colombia) with municipal urban settings.

USAID will define the baseline information for all expected results through a separate mechanism and the data will be shared with the Contractor as the basis for the Monitoring and Evaluation Plan.

C.2. BACKGROUND

Colombia is a middle-income country with a population of 48.9 million. Despite decades of internal conflict, it has the third largest economy in Latin America after Brazil and Mexico, with an estimated 2014 GDP of $377.7 billion and per capita GNI of $7,780. The economy grew at an average of 4.82% from 2010 to 2014, and foreign direct investment grew by 250% between 2010 and 2013. Colombia has also made progress in reducing poverty in recent years; between 2005 and 2012, the national poverty rate fell from 45% to 33%, and even more among urban households, from 32% to 19%. Agricultural jobs constitute 16.3% of the country’s total labor market, and the sector (including agriculture, cattle, and commercial and farmed fisheries) plays a key role in the national economy, accounting for 5.76% of total GDP in 2014.

While Colombia has more recently experienced an economic boom, its benefits were not broadly distributed. Colombia’s Gini coefficient, which measures inequality on a scale of zero (no inequality) to one (absolute inequality), placed Colombia at eleventh among the world’s most unequal countries in 2013. The latest figures show that 28.5% of Colombians are poor and, 18% of the rural population is extremely poor. Land ownership is also highly unequal, with just 1.2% of the population controlling 52% of the land. In fact, the United Nations Development Program generated a Gini Coefficient in Colombia strictly focused on land; the result of 0.86 demonstrates extremely high inequality. Decades of conflict have displaced millions of families from their homes, taking between six and eight million hectares of land from them through displacement and forced abandonment of property. Thousands of rural families are landless and lack assets that would allow them to undertake productive activities. Many rural populations have suffered disproportionately from the conflict, particularly Afro-Colombians, indigenous persons, and women.

On September 4, 2012, President Santos announced the signing of a General Agreement for the termination of the Conflict between the Government of Colombia and the Fuerzas Armadas Revolucionarias de Colombia (FARC by its acronym in Spanish), setting in motion the fourth official attempt to negotiate peace with this group. The agenda includes: 1) land and rural development; 2) the guarantee of functional political opposition and civic participation; 3) illegal drugs; 4) the end of the conflict (laying down arms and reintegration into civilian life); 5) rights of victims; and 6) implementation and verification. The parties have already reached agreements on rural development, political participation and illegal drugs. The Contractor will support the objectives of the first agenda item on rural development, which complement USAID’s Country Development Cooperation Strategy (CDCS).

Over the last decade, the Government of Colombia (GOC) has supported initiatives to control illicit crops and drug production, applying tools to achieve development and sustainability in communities and territories affected with this problem. On one hand, the actual peace process is a clear effort from the GOC to reach peace and eliminate the production of illicit crops since one of the pre-agreements refers to the elimination of drug production. On the other hand, the GOC funds programs to foster rural economic development in territories and communities affected by illicit crops. Programs such as Programa Contra Cultivos Ilícitos (PCI), Familias Guardabosques, and Alianzas Productivas have been useful tools to facilitate the transition to licit livelihoods in marginal rural areas of Colombia.

Nonetheless, illicit crops have increased in the last two years. According to the last survey of the United Nations Office on Drugs and Crime (UNODC), the potential production of cocaine rose from 290 to 442 metric tons in 2014, with a 52% increase. The coca crops also had a significant increase going from 48,000 ha in 2013 to 69,000 in 2014. This significant increase and the fact that the National Commission on Narcotic Drugs made the decision to suspend aerial spraying of illicit crops with glyphosate for being harmful to health on May 2015 in addition to the ongoing peace process are factors that make it necessary to provide alternatives of licit livelihoods with clear market opportunities.

Colombia has vast agricultural potential, with five distinct climate zones. Colombia has about 114 million hectares of which 37 million have agricultural potential (22 million hectares of rich arable land for agriculture and 15 million for livestock). If Colombia were to successfully boost rural agriculture and other production potential in an environmentally sustainable manner, this could have a significant impact on reducing poverty and alleviating grievances that have helped fuel 50 years of internal conflict.

To take advantage of the potential for inclusive rural growth, there are many challenges that need to be addressed, including a lack of sufficient supply to generate interest among major buyers, inefficient value chain management, gender issues, asymmetries of market information, and poor rural infrastructure, among others. The municipalities to be supported by this activity are some of the most conflict-affected areas of Colombia, and the security dynamics have also presented challenges to attracting investment and efficiently getting inputs in and products out of these regions.

Without a massive increase in private and public investment in Colombia’s rural economic growth to increase inclusive, rural economic opportunities and strengthen economic support infrastructure, poor farmers will leave their lands and migrate to urban centers. Ex-combatants, community members and victims of violence alike will have little choice but to consider either low-paying labor opportunities or illicit livelihoods. The Government of Colombia (GOC) has documented its intent to undertake major increases in public investments in rural areas per the peace negotiations pre-agreement on point one on land and rural development.

As a result of years of war and fragmented development interventions, rural value chain production is small, disperse, and inefficient. Based on the USAID Policy Framework and one of the seven core development objectives (promoting broad-based economic growth and enable the private sector to drive growth), and the operating principle to apply selectivity and focus, there are five key value chains identified that have considerable untapped potential for growth. These value chains are: cacao, specialty coffee, natural latex, tropical fruits and vegetables, and sustainable dairy production.

For example, weak cacao production currently provides only one ton of cacao for every three hectares under production4. Improvements in production would allow for greater household incomes in rural areas.

Small-scale agricultural production and other non-agricultural small-scale associative businesses (e.g., input suppliers, processing services, transportation providers, etc.) are key drivers of economic activity in rural Colombia. Many rural producers do not have access to modern production techniques or tools, storage facilities, processing technologies, risk management mechanisms, and appropriate and readily available financial services. In addition, they currently operate at the margins of formal markets, with limited knowledge of changing market demand and restricted financial capital to anticipate and respond to market fluctuations. To overcome the isolation that many rural communities face, there is a need for innovative, creative and impactful technological solutions that increase access to information and post-harvesting solutions.

There are several opportunities to improve production and increase sales of key products that will directly impact income of small farmers. For instance, in the fruit and vegetables sector there are opportunities for counter-seasonal supplies in many export markets. The US for example, has become a growing market for off-season fruit and vegetable imports due to the growing demand from consumers and local impossibility

4 Internationally competitive and well -managed cacao production countries produce approximately one ton per hectare.

of supplying the market in the cold season. The 2015 Congressional Research Service indicates that, “Imports of counter-seasonal fruits and vegetables are generally considered to have a positive impact on the U.S. consumer demand by ensuring year-round supply and by introducing new products and varieties, which often stimulate additional demand.”

Organized through value chains, selected sectors have the opportunity to increase sales volume by tapping in new and expanding markets. Typical issues that still need to be overcome include, market awareness, strengthening the commercial relationships between producers and buyers, improving the volume and quality of the products and negotiating business deals that are commercially profitable for both parties. In each sector, producers and intermediaries have not yet developed the ability to successfully package, promote, and sustain the sales of their related sectors. Institutionally, most producers in the targeted regions are relatively fragile and are unable to tap new and expanding markets to generate product sales.

Many producers do not have access to information that will allow them to achieve favorable sales terms in negotiations with buyers. Rural producers often have little choice but to sell their products to middlemen at prices that barely cover production costs. Weak or non-existent rural infrastructure prevents many products from getting to market in sufficient volumes and also limits farmers’ access to critical services. Without good roads, electricity, internet access and other basic necessary services, farmers have difficulty getting their products to market, accessing financial services, and communicating with buyers, business service providers, and others.

As an example, tertiary roads are required to get products to market. Historically, poorly maintained rural roads hinder the development of Colombian value chains since buyers and sellers cannot work together efficiently. Conflict zones are especially affected by this dearth of infrastructure. Electricity and irrigation systems are also lacking and present barriers to increasing production, implementing post-harvest processing techniques, and adding value to primary products. Without well-constructed and well-maintained productive infrastructure, successful rural development in conflict-affected areas will remain a challenge.

At the heart of PMA is the fact that youth, women and ethnic minorities in remote rural areas of Colombia have suffered disproportionately by the conflict and have fewer opportunities for development. Women’s contributions to agriculture and other economic activities are significant; however, their contributions are generally not recognized and opportunities for broader participation are limited. Gender-related discrimination in agricultural value chains is widespread, and women suffer disproportionately from exclusionary practices and economic deprivation. Key informant interviews revealed unequal participation in producer associations, with men representing 70% of members and women 30%. Afro- Colombian and indigenous peoples represent up to one quarter of the total population of the country and have collective rights over land that represent almost 35% of the country's total territory. However, these populations are not taking full advantage of their land holdings for several reasons including environmental protection for a significant portion of the land within collective territories, and limited access to financial services and technology. The youth in the targeted areas have few licit opportunities and forced youth recruitment by illegal armed actor is a common denominator for most of the target municipalities.

Putting together all these factors, there is a need for inclusive and innovative rural development opportunities in areas affected by conflict. PMA will be strategically positioned to support the GOC efforts to offer opportunities in rural Colombia so that the gap in development between urban and rural areas is reduced. The participation of private sector actors with innovative business models that aim at expanding market opportunities including small producers associations, women, youth, and ethnic minorities will be crucial for a sustainable peace implementation.

C.3. ACTIVITY VISION/APPROACH

C.3.1. USAID/COLOMBIA Country Development Cooperation Strategy (CDCS)

The strategic objective of the CDCS is to strengthen Colombia’s capacity to implement a sustainable and inclusive peace. Progress toward this goal is achieved through four development objectives (DOs): (DO1) Effective presence of democratic institutions and processes in targeted areas; (DO2) Reconciliation advanced among victims, ex-combatants and other citizens; (DO3) Improved conditions for inclusive, rural economic growth; and (DO4) Environmental resiliency and low-emissions development strengthened. Each of these DOs represents an area where institution and capacity building support by USAID contributes to the GOC’s ability to ensure a durable and equitable peace.

The Contractor will respond to USAID/Colombia’s Country Development Cooperation Strategy (CDCS) Development Objective #3 “Improved Conditions for Inclusive Rural Economic Growth” and particularly to the Intermediate Result (IR) 3.3: More effective producer associations benefitting small holder farmers. This IR aims to support small farmers and landowners – including women heads of household – by strengthening the productive value chains where producers participate, by facilitating access to new and expanding markets. It is envisioned that this support will enhance producer associations’ ability to effectively engage in business partnership and deals with new and existing buyers and provide their membership with quality technical assistance (TA) services to facilitate this process.

C.3.2. Approach

The following types of activities will be undertaken under the PMA contract:

(1) The Contractor will support a market-led systems approach that will improve the competitiveness of rural producers and off-farm businesses. This is done by identifying new market opportunities and strengthening the producer’s capacity to respond to these market demands. Using a market-led systems approach, the Contractor must aim to increase productivity, output, and market share of farm and non-farm activities in the value chain(s) in domestic, regional and export markets, to increase sales and ultimately incomes and employment opportunities in targeted rural areas.

(2) In the first year the Contractor will support some of the priority activities proposed by the Ministry of Post Conflict or other relevant GOC entities in charge of implementation of the Peace Accords. In particular, PMA will have the capacity to facilitate the provision of sales-driven technical assistance, improvement of productive infrastructure to generate sustainable employment opportunities, and testing tertiary roads maintenance models5 which corresponds to priority areas shared by the Ministry of Post Conflict.

(3) The Contractor will support a demand driven system that will promote inclusivity, sustainability, and profitability for rural producers. A key objective of the activity is to generate farm and non-farm income through exports in selected agricultural value chains, with a focus on improving market responsiveness of rural producers. PMA will facilitate economies of scale through strategic alliances and value chains. The Contractor will use technical assistance and grants to foster implementation of economic and environmentally sustainable agricultural practices, increase yields, close business deals and promote productive rural infrastructure in the priority regions of the activity, particularly tertiary road improvement and maintenance6.

(4) The selected Contractor will conduct practical and rapid analyses of the farm-to-market value chains in the selected production zones and identify interventions to focus on strengthening

5 Maintenance models for PMA are understood as arrangements of private actors, public actors or partnerships between private and public actors, to keep the desired infrastructure (tertiary roads, irrigation systems, post-harvest facilities, electrification, etc.) in proper conditions so that business deals are facilitated and costs are reduced.

6 Maintenance for PMA is understood as the set of activities destined to care and upkeep infrastructure in proper operating conditions.

the weak links in the chains. This includes analyzing prices, volumes, product quality, other business-production costs (labor, inputs, transportation, etc.) and estimated returns to the producers. The potential revenue increases versus the costs will determine if it is viable and profitable to invest. If the business venture is deemed profitable, the activity will focus its resources on helping the producers to respond to the market demands and remove critical constraints.

(5) The Contractor will provide technical assistance for agriculture production techniques, post-harvest handling and distribution to reduce product loss and improve product life and quality. The Contractor will facilitate the business deals between the various players of the supply chain. This will include working with producers, packers, transporters, processors, wholesalers and exporters. This technical assistance seeks to create an integrated supply mechanism that will increase revenues for all with emphasis on the rural producers.

(6) The Contractor will help develop and strengthen new avenues to link producers to markets. One of the key methods to be used is the value chain approach to effectively and sustainably link producers associations to domestic, regional and global markets. In value chain development there are various phases through which a product or set of related products flow.

The structure of actors/functions along the chain constitutes a dynamic system that needs a holistic and integral approach to assure that interventions have positive and sustainable results.

The social fabric and network between large businesses and rural producers is currently weak due in part, to the lack of communication over many years of internal conflict. Building trust between rural producers and buyers along the value chain is essential for developing a productive alliance that benefits the actors of the value chain. It will determine if an informal agreement becomes a commercial network that evolves into a business alliance. Both parties (the producers and buyers) need to believe that the business partner will deliver their part of the deal and that both will receive the rewards agreed upon. After the initial production and sales cycle (if deals work out as planned), trust would tend to build and commercial alliances would tend to be strengthened.

The value chain method allows embedding economic incentives and benefits between actors in a win-win fashion. For example, the ability of processing firms to offer final or semi-final products to end or intermediary markets requires the assurance of a stable supply of primary products, in terms of quality and quantity, in a timely and predictable manner. Producers are interested in supplying buyers that can purchase their production at fair prices, exact weights, with minimum rejections. The producers and buyers have an interest in establishing a stable and sustained sale-buy contract or working relationship.

Based on these common economic interests it is possible to build trust, transparency, equity and, in general, economic incentives that will assure the sustainability of such contracts or agreements. The embedding of economic incentives all along the chain (fair prices, more secure supply and access to markets) facilitates the incorporation of positive results such as trust (social capital), information symmetries, transparency, and equity. At the same time, the market preferences about products (quality, presentation, packaging, etc.) are more easily transferred back to processors and then to producers, facilitating the responsiveness of the producers and the whole value chain system to market changes and trends. As it is well known, the value chain method requires the identification of a leading firm that is able to orchestrate the economic inter-relations within the system, working backwards with suppliers – producers—and forward with intermediate or end-markets. The value chain methodology will help strengthen the social and productive fabric between formal businesses and rural producers.

Some other methods that link producers to markets are business-to-business (B2B) where enterprises (farmers, processors, wholesalers based) trade among themselves, and business-to-consumers (B2C) where producers sell their products directly to consumers such as in open and organized fairs.

C.3.2.1. In order to facilitate a market-led system approach, the activity will work with buyers and producers to:

(1) Encourage and stimulate market linkages (sales/marketing and logistical support, as well as procurement support for key inputs) between input providers, producers, cooperatives and organizations, processors, supermarkets, and exporters.

(2) Coordinate technical assistance so that producers can adequately respond to market opportunities in selected value chains.

(3) Improve product yields and quality through innovative and effective extension services, production credit, training and technical assistance.

(4) Improve the quality, responsiveness and sustainability of the TA services provided by local organizations.

(5) Link producers with on-going programs, including GOC and private sector agricultural support, research institutions, and export promotion programs.

In carrying out the tasks, the Contractor must consider promoting local partnerships for the implementation of the Activity, leveraging resources from national, departmental and municipal governments, the private sector, and other stakeholders. Local governments typically have access to equipment as well as locally generated revenues and re-flows from the national government in the form of royalties (regalías). Producers and other private sector actors can collaborate to advocate for the investment of these funds into concrete activities that can remove significant bottlenecks for small holders. For example, producers and their private sector partners can work with municipal or regional planners to identify needs for collection centers, road or bridge repairs, or irrigation system repairs or installation that can advance agricultural development.

C.3.3. General Organizing Principles and Approaches

The design and implementation of all initiatives must carefully consider and incorporate the general organizing principles and tactics enumerated below. As a whole, these principles must serve to guide the contractor’s overall strategy, design and implementation of the entire Activity and all relevant sub-activities.

C.3.3.1. Geographic Focus:

Colombia’s conflict has devastated the rural sector and marginalized generations of its citizens from the economic growth and development experienced mostly in urban areas. Only when the Colombian rural sector is on a sound path of robust inclusive growth will the country be able to move from conflict to peace and stability. USAID will focus on supporting Colombian efforts to improve rural livelihoods. The goal is for Colombians living in historically neglected areas to have licit economic opportunities that provide them with a path out of poverty and a means of avoiding the trap of illicit crops.

Under the current circumstances where the GOC is negotiating a peace accord with the FARC guerrillas, there is uncertainty regarding those municipalities that will be prioritized by Colombian public and private sectors. In this scenario, the Contractor must give initial priority to the subgroup of municipalities listed in Table 1 below, and must propose additional municipalities to create economic corridors defined as geographic areas where municipalities share economic interests and infrastructure increasing the critical mass to develop scalable business models. In the first year Work Plan the final choice of proposed targeted areas will be set forth and approved by the COR.

Table No. 1 provides the basic set municipalities part of the economic corridors. USAID expects the Contractor to be flexible to be able to expand to new municipalities if a peace accord is signed, as requested in writing by the Contracting Officer. As of this writing different GOC entities and other donors talk about a group of 125 to 187 municipalities in 20 departments that may be prioritized for a post-conflict effort but there is no certainty as to a definite list. USAID is also aware that the provision of market-led system approach is sustainable only if there are market opportunities for producers to invest in and thus is open to work in adjacent municipalities or corridors that will facilitate alliances and value chain operations that benefit target municipalities.

TABLE 1

SELECTED ECONOMIC CORRIDORS7

Economic Corridor Illustrative Municipalities (subset of the Consolidation effort)8 Tolima - Huila Ataco, Chaparral, Planadas, Rioblanco

Valle del Cauca and Cauca Pradera, Florida (Valle); Caloto, Corinto, Miranda, Santander de Quilichao, Toribio (Cauca)

Antioquia – Córdoba Anorí, Briceño, Cáceres, Caucasia, El Bagre, Ituango, Nechí, Taraza, Valdivia, Zaragoza (Antioquia); Montelíbano, Puerto Libertador, Tierralta, Valencia, San José de Ure (Córdoba)

Meta La Macarena, Mesetas, Puerto Rico, San Juan de Arama, Uribe, Vista Hermosa

Caquetá Cartagena del Chaira, La Montañita, San Vicente del Caguán.

Montes de Maria El Carmen de Bolívar, San Jacinto (Bolívar); Ovejas, San Onofre (Sucre)

Tumaco Tumaco

The Contractor is expected to open regional offices in accordance with its proposed technical approach.

The geographic restriction applies to the source of production, i.e. the producers must be located in municipalities of the seven corridors. Storage facilities, processors, wholesalers, distributors and buyers may be located anywhere in Colombia or internationally.

C.3.3.2. Private Sector & Value of Alliances:

USAID resources alone are not enough to promote a broad “game-changing” development of the rural economy. As USAID’s investments in Colombia decline over the next few years, it becomes increasingly important for USAID to leverage and/or mobilize resources from other actors and incorporate key stakeholders into activity implementation. Private corporations contribute significantly to the achievement of development objectives, often mobilizing resources that far surpass international donor efforts. Public and private leverage from both national and international resources are critical to maximize impact and results. By engaging a broader group of actors and identifying additional resources to tackle key development challenges, producers will benefit from private sector expertise, access to new technologies and increased sustainability. Generating leverage under the contract will help bridge the divide between a rapidly growing and wealthy urban economy and a disadvantaged and underdeveloped rural economy. The Contractor will propose activities that incentivize and catalyze private and public resources, in order to quickly mobilize and connect the rural economy with well-established market opportunities. Innovative partnership opportunities include, but are not limited to, natural resource industries, consumer food corporations, impact investors, international foundations and the donor community, among others. Examples of public sector leverage include national ministries, royalties, and/or local government funds. These alliances will help ensure long-term sustainability beyond the five years of the activity.

7 The geographic restriction applies to the source of production, i.e. the producers should be located in municipalities of the seven corridors. Storage facilities, processors, wholesalers, distributors and buyers may be located anywhere in Colombia or internationally.

8 Over the past five years USAID has focused attention in 40 of 58 municipalities that were part of the National Territorial Consolidation effort.

The Contractor will use the methodology of USAID’s Global Development Alliance (GDA) included in…