SOL-615-12-000006 Amendment 02.docx

Issue Date: June 7, 2012 Closing Date: July 25, 2012 Closing Time: 0800 Nairobi Time

Subject: Request for Proposal (RFP) # SOL-615-12-000006 Kenya Agricultural Value Chain Enterprises (KAVES) Project

The United States Government, represented by the U.S Agency for International Development to East Africa (USAID/East Africa), is seeking a Contractor to provide project services and value chain upgrading services in Kenya as stipulated in the subject RFP.

USAID received a number of questions and we have amended the RFP as a result. The three major changes are the addition of transition award language in Section C, the removal of the requirement for indirect rate ceilings, and the upload of additional documentation to USAID/Kenya’s website. All questions and answers have been posted as an attachment to the FBO notice.

Given the number of questions, USAID is allowing a second round of questions. Any questions regarding the RFP’s requirements must be submitted to Michael Capobianco and John May via e-mail at mcapobianco@usaid.gov and jamay@usaid.gov no later than 0800 hours Nairobi time, June 26, 2012. Answers will be sent to all interested parties by June 29, 2012.

Proposals must be received electronically on or before the closing date stipulated above to provide the services and deliverables specified in the below RFP. Proposals must be sent via e-mail attachments to mcapobianco@usaid.gov and jamay@usaid.gov by the closing date and must conform to all requirements outlined in Section L.

If a competitive range is established, USAID intends to hold in-person discussions with interested parties in the competitive range. The proposed Chiefs of Party for the offerors in the competitive range shall travel to Nairobi, at USAID’s expense (not to exceed $5,000). Interested parties may include other members in the discussions at the offerors’s own expense. The representatives of any offeror in the competitive range, either the Chief of Party or another representative, must have the authority to negotiate on behalf of the offeror.

This request in no way obligates the USAID to award a contract, nor does it commit USAID to pay any cost incurred in the preparation and submission of your proposal. We look forward to receiving and reviewing your proposals.

Regards, Michael Capobianco Contracting Officer USAID/East Africa

PART I - THE SCHEDULE

SECTION B - SUPPLIES OR SERVICES AND PRICE/COSTS

B.1. PURPOSE

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

B.2. CONTRACT TYPE

This is a Cost-Plus Fixed-Fee (CPFF) Completion type contract.

B.3. OBLIGATED AMOUNT

TBD

B.4. PRICE/COST SCHEDULE

B.5. BUDGET

B.6. MULTI-YEAR CONTRACT

CLIN 001 is considered non-severable, and is therefore a multi-year contract as defined in FAR 17.103. Therefore, this contract is subject to the requirements of FAR 17.106.

Cancellation Dates:

Cancellation Ceiling:

This is a CPFF type contract where the contractor is authorized to be reimbursed for all costs which are allowable in accordance with FAR 52.216-7, “Allowable Costs and Payment”. Therefore, the contractor is expected not to incur any costs which would have been amortized over the life of the contract should the contract be cancelled in accordance with FAR 52.217-2. Therefore, the cancellation ceiling for each cancellation date is (TBD at time of award).

B.7. INDIRECT COSTS

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

1/ Base of Application: TBD Type of Rate: TBD Period: TBD

2/ Base of Application: TBD Type of Rate: TBD Period: TBD

B.8. PAYMENT OF FIXED FEE

The Contractor’s fixed fee is tied to the accomplishment of the deliverables outlined in Section F.5. 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 by USAID and receipt of approval from the Contracting Officer, the Contractor shall submit an invoice for the amount of the fee associated with the deliverable.

[END OF SECTION B]

SECTION C - DESCRIPTION/SPECIFICATIONS/STATEMENT OF WORK

C.1 Background

KAVES will partner the local private sector, (predominantly smallholder farmers) to develop fully functioning, competitive value chains in selected production zones in order to increase the productivity of smallholders and incomes of smallholders and other entities up and down the value chain including agro-processors, input suppliers, transporters, exporters, small businesspeople, retailers, and others involved in rural wealth creation.

The Contractor will provide technical services and related resources such as technical equipment, and assist in leveraging loans for value chain financing in order to increase the competitiveness of selected value chains, expand the number of Micro and Small and Medium Enterprises (MSMEs) that can compete in selected markets, improve linkages between those firms and other actors throughout the value chain, increase the gross value of products and services in local and export markets, and expand exports. Activities are expected to produce a “ripple effect” inducing private investments and replication of project successes demonstrated or opportunities identified. The net effect of these activities will contribute to improved economic stability and food security for Kenya, especially in selected rural areas.

To achieve the KAVES objectives, the Contractor shall undertake tasks grouped under the following four components:

To achieve its objectives, the KAVES project shall be: (a) market-driven; (b) flexible and responsive to targets of opportunity; and (c) results-oriented. The Contractor shall implement the KAVES project in close coordination with other Feed the Future, USAID and donor-supported projects involved in rural economic growth activities. The Contractor shall work in particular to bolster the activities of GOK institutions funded by USAID including the newly-developed Tegemeo Agricultural Policy Reform and Analysis Project (TAPRA II) which will provide analysis of pertinent policy issues and the Kenya Agricultural Research Institute (KARI) Integrated Agricultural Research and Development project which will undertake adaptive research appropriate to project farmers including the development of new drought-tolerant varieties and other new technologies. The Contractor shall work with Tegemeo to drive policy reforms or modifications recommended by the policy analyses undertaken.

An underlying principle of KAVES is the engagement with the private sector in a meaningful, comprehensive way to meet the global food security challenge. The resulting strategic alliances with the private sector are a necessary condition for addressing project objectives.

This project will approach rural economic development from the perspective of target markets, where there is the greatest potential for collaboration between buyers and sellers in the market chain. Target clients are entrepreneurial small and medium producers or businesses up and down the value chain with an interest in developing efficient supply chains.

Attachment 1 provides further background on the technical approach.

C.2 Project Goals, Objectives, and Expected Results

Project Goal: To increase the productivity and incomes of smallholders and other actors along the value chain, thereby enhancing food security and improving nutrition.

Project Objectives:

1. Increase the competitiveness of selected agricultural value chains to increase incomes, mitigate food insecurity, improve nutrition, and increase the incomes of the rural poor;

2. Foster innovation and adaptive technologies and techniques that improve nutritional outcomes for rural households, sustainably reduce chronic under-nutrition, and increase household consumption of nutrition-dense foods; and

3. Increase the capacity of local organizations to sustainably undertake value chain work.

KAVES will include the following four components:

· Component 1: Improved Competitiveness and Trade (relates to Objective 1 and comprises approximately 30 percent of total effort).

· Component 2: Increased Farm Household Productivity and Market Access (relates to Objective 1 and comprises approximately 40 percent of total effort).

· Component 3: Improved Nutrition-Related Behaviors and Improved Access to Diverse and Quality Food (relates to Objective 2 and comprises 15 percent of total effort).

· Component 4: Building Sustainable Local Organizations (relates to Objective 3 and comprises approximately 15 percent of total effort).

In order to achieve the results identified in the SOW, the Contractor shall provide a wide variety of services to support each of the components. For each project component, the SOW provides additional background information as appropriate, a description of the objective of that component, and a set of activities that are envisioned as the minimum required to achieve the sought results. The required minimum deliverables are outlined in Section F. The Contractor is required to identify and carry out any additional activities that are needed to achieve the desired results and meet the minimum deliverables.

USAID expects that KAVES will:

· Select value chains to increase rural incomes through increased productivity at the farm and up and down the value chain

· Leverage resources, such as credit and investment, to finance value chain improvements

· Identify innovative adaptive technologies to improve nutrition in rural households

· Raise the capacity of local institutions to undertake value chain work

Results in the targeted regions and along the value chains include:

· Increased smallholder incomes in selected value chains

· Increased smallholder productivity in selected value chains

· Increased value and volume in selected value chains

· Increased volume of processed commodities for selected value chains

· Reduced costs of production in selected value chains

· Increased quantity of production marketed through collection centers or aggregators in selected value chains

· Increased number of value chain businesses (input suppliers, processors, transporters, post-harvest collection centers, etc… leveraged by KAVES)

· Increased number of local organizations strengthened to undertake value chain activities

· Increased number of mothers, caregivers, and community leaders reached with interventions involving complementary feeding practices

· Improved drinking water supply and sanitation facilities

C.3 Core Requirements

C.3.1 General Contract Requirements

The Contractor shall:

· Select the value chains for project intervention, which will include the mandatory value chains: maize, dairy and horticulture and at least two additional value chains from the following list: millet; sorghum; beans; green grams; cowpeas; pigeon peas; groundnuts; cassava; sweet potatoes; Irish potatoes; or others.

· Develop a methodology for the baseline survey and undertake a baseline survey during the first six months after contract award. A baseline survey collects quantitative data concerning agricultural and socio-economic data which presents an analysis of the situation prior to project interventions, which permits an analysis of the changes in the baseline situation and the impact of the project in subsequent years. Baseline survey methods include sampling schemes, formal questionnaires predominantly at the household level, and other participatory and informal surveys.

· Conduct end market and chain analyses for selected value chains (the selected value chains will be determined based what is proposed by the offeror prior to contract award), while building on existing analyses and filling gaps and validating the capacity of Kenya’s rural economy and the various value chain intermediaries to respond competitively to market opportunities, and the extent to which upgrades are required. Prior to “upgrading” the value chains, the Contractor must undertake an assessment of the proposed upgrading plan in detail and present final conclusions and recommended value chain interventions to USAID for consideration no later than 120 days after award.

For all end market and chain analyses, the Contractor, at a minimum, shall:

1. Identify all actors in value chains including details on rural businesses and small holder farmers;

2. Map each value chain in detail including main actors, flows of products, money and information, and supporting organizations;

3. Identify the winners and losers in each value chain;

4. Assess the state of institutions, technology, service providers, policies, and other production conditions;

5. Inventory the existing infrastructure, assess its state, its capacity usage, its adequacy or gaps; if there will be a need to invest in additional infrastructure, the analysis must show what type of infrastructure is needed, where it should be installed, by whom (private sector, public entities or in partnership) and how it will be managed and sustained;

6. Detail the constraints at each value chain step to competitively service the demand identified;

7. Identify the gaps in the value chain;

8. Indicate the actions to address each constraint/gap;

9. Confirm the activities/investments needed and cost to overcome these constraints;

10. Indicate the benefits of addressing major constraints in terms of project results;

11. Assess the potential difficulty in overcoming each competitive constraint in a sustainable manner;

12. Construct scenarios of the economic impact (change in market share, increased exports, incomes, profits, jobs and wages) that the proposed changes would have;

13. Validate the probability of realizing independent investment and replication of project successes (i.e. the “ripple effect”);

14. Indicate the degree to which investments are scalable by the private sector independent of project intervention;

15. Identify key policy constraints limiting development; and

16. Develop detailed recommendations, specific value chain interventions, on how to “upgrade” the selected value chains and maximize USAID’s investment.

In this final analysis the Contractor will need to simultaneously consider many complex factors in order to develop cogent recommendations for USAID’s consideration. For instance, it is envisioned that some prospective value chains with significant market potential will require large amounts of market infrastructure, such as processing facilities, but be beyond the financial scope of the project. Other value chains might require less intervention but they may only benefit a limited number of value chain actors. While others might be of little benefit to small holders as they are controlled by one or two actors along the chain who capture large marketing margins. Given the number of factors and potential permutations, the Contractor must weigh various options regarding project interventions and justify tradeoffs between markets, value chains, and beneficiaries. Given the complexity of this analysis, it is expected that USAID will be integral in the final assessment and prioritization of priority interventions.

USAID’s consent is required on the proposed activities prior to proceeding with implementation. Approved interventions shall be reflected in the yearly work plan described in section F below. Annual Work Plan updates will elaborate on the detailed activities for each subsequent year of the project.

· Develop an upgrading plan to achieve competitiveness for each market system represented by each value chain, the inter-relationship among cereals and other crops, horticulture and dairy, and the cross cutting service markets (including finance, Business Development Services (BDS), and agricultural value chain-related services). The upgrading plan will also detail not just what interventions are needed but also the sequencing of interventions and roles.

· Establish and operate a public website to provide for general reporting about project activities. At a minimum the website will provide information under the following general headings: About; News/Events, Project Areas; Reports (to include quarterly and annual reports and all trips, technical and analytical reports prepared by the project); sections may be added as agreed between the Contractor and USAID. The Contractor shall provide USAID with a short bi-weekly report highlighting its main accomplishments over the prior two week period.

C.3.2 Minimum Required Activities per Component:

Component 1 addresses gaps in the value chain at the macro or systemic level, and deals predominantly with private sector firms up and down the value chains. In addition to increasing the competitiveness of the selected value chains, other key areas include the appropriate enabling environment, and expanded markets and trade.

The Contractor shall provide support to facilitate both USAID and non-USAID activities, identified by USAID, that are working to increase small-holders’ ability to produce for and participate in markets, both domestic and regional. The contractor shall expand the scope for producers and traders to engage in structured trade, which will help provide the necessary transparency to increase efficiency and competitiveness, and decrease the costs of trade. The Contractor shall identify where it can serve as a catalyst to advance the competitiveness of value chains through leveraging its technical assistance to catalyze others to change behaviors and improve performance, and through facilitating the development of private sector service markets.

In order to reach the objectives of this component, the Contractor shall, at a minimum:

· Collaborate with Tegemeo to disseminate findings of policy assessment studies relevant to KAVES value chains, and ensure its research products and findings concerning project value chains are widely disseminated, in appropriate formats, to diverse audiences including policymakers, the private sector, civil society and farmers.

· Ensure that stakeholder organizations host public forums at national and county levels around KAVES value chain topics.

· Work to enhance market power of small-holders (transition away from price takers).

· Increase number of formal and informal commercial relationships sustained over time between producers and traders, including contract farming relationships.

· Increase investment by private sector in village aggregation (collection) centers, storage warehouses, agro-processing units, pre-cooling/cold storage, transportation, and other related areas.

· Increase the number of alliances forged with public and private sector partners.

· Increase the number of small-holders in structured markets – formal contracts.

· Increase the number of repeat contracts or number of small-holders on contract for two years.

· Increase the number of commercial processors for selected value chains. Increase the number of new micro-, small- and medium-sized enterprises (MSMEs) engaged in selected value chains.

· Improve access to and use of financial services (credit, saving, insurance) all along the value chain for men and women.

· Increase the value and volume of purchased services (e.g., animal health services, financial services, information services).

· Increase investments in upgrading by using purchased services and improved products.

· Improve quality and accessibility of transport services linking producers and other value chain actors to markets.

· Improve the efficiency and safety of value chain transactions through improved payment mechanisms such as e-payments.

· Increase benefits (financial and non-financial) from marketing of commodities all along the value chain, and particularly for smallholder men and women.

· Improve information flow to increase transparency in negotiations between buyers and sellers.

· Improve value chain actors’ access to effective or actionable information.

· Increase access for traders to working or investment capital.

· Increase investment in infrastructure (linkages to infrastructure investment) that reduces the cost of doing business for selected value chains.

· Advocate for increased public investment in market infrastructure, e.g., the construction of a wholesale market for horticultural commodities.

· Facilitate the development of public-private agreements resulting in an increase in the availability of market infrastructure, inputs, and services.

In Component 2, the Contractor shall approach productivity upgrading by strengthening the effectiveness of two key inter-related systems: the household farming system and the market system (related to value chains). The household farming system is a complex agricultural system that seeks to maximize productivity on behalf of the household that benefits from economic activities. KAVES aims to stimulate behavior change all along the value chain to improve productivity. That said, the levers of market-system transformation would include, but not be limited to, the smallholder level, especially when designing incentives to improve productivity.

At the same time, the Contractor shall work to mitigate the risks for rural households to diversify their income and food sources beyond maize (to include drought-tolerant crops, such as sorghum and millet, horticulture, and/or dairy where appropriate and profitable), and to access nutritional education that will help them translate a more diverse basket of food into improved nutrition. In addition, the Contractor shall ensure that efforts to improve productivity are linked to markets with effective demand. Improvements in productivity shall include behavior change components that promote diversification and innovations, including “small, risk-acceptable steps” to production upgrading. It is also critical that equity in the value chain be addressed, and that the Contractor present strategies for increasing the percentage of the price given to producers.

In order to reach the objectives of this component, the Contractor shall, at a minimum:

· Work to increase smallholder gross margins per unit of land.

· Improve the quality of marketed produce as evidenced by volumes meeting accepted national and regional standards.

· Enhance the use and purchase of productivity-enhancing technologies (improved seeds, fertilizer, herbicides, post-harvest, irrigation, storage, herbicides and/or harvesting equipment).

· Enhance the use of soil fertility management practices and technologies (chisel plow, liming, soil amendments/blended fertilizers).

· Increase the adoption of technologies that address productivity, risk, climate change and/or natural resources management.

· Increase the net income per unit of milk marketed.

· Increase the productivity per cow per day.

· Reduce post-harvest losses.

· Facilitate learning related to the adoption of appropriate technologies and practices.

In Component 3, the Contractor shall bridge the gap between traditional agricultural initiatives that focus on production, in order to augment the availability of food and, at the same time, increase the productive capacity of small-holders to increase on-farm incomes, and nutrition initiatives that focus on improving the nutritional quality of food and implanting remedial actions in order to address the specific nutritional needs of vulnerable groups. These two approaches and perspectives require simultaneous attention to both production and consumption and the intervening processes between these. Producing food is not the same as preserving the nutritional quality of food along the value chain and getting it into the mouths of those who need it. This means adopting a ‘whole chain’ approach that looks beyond production and towards post farm-gate activities through to consumption.

Investments in agriculture which result in increased smallholder’s incomes do not inexorably lead to the enhancement of the nutritional status of individuals in farm households, or to an improved access to a diverse supply of quality food. While some evidence exists that well-designed agricultural interventions can also result in nutritional improvements, increases in agricultural production do not necessarily bring about improvements in nutrition and health.

The implementation of Feed the Future has given great impetus to the need to better integrate nutrition into USAID’s agricultural interventions. However, difficulties abound in linking agriculture and nutrition which comprise two distinct disciplinary domains that are typically institutionally separated in research and development agencies.

WASH activities, including Multiple Use Services, and provision of safe drinking water, sanitation and hygiene, are undertaken predominantly in this component. WASH activities are also described in more detail in Attachment 2, including a table that describes the limitations with respect to utilizing the WASH earmark.

In order to reach the objectives of this component, the Contractor shall, at a minimum:

· Increase the number of communities with access to safe drinking water.

· Reduce the incidence of diarrheal disease in targeted households.

· Increase the diversity of foods consumed by households, either from home production or purchased.

· Implement the FTF Learning Agenda concerned with Improved Nutrition and Dietary Quality.

· Undertake interventions which improve income, gender equity, and access to nutrient-rich and diverse foods integrated with interventions focused on improved nutrition for women and children.

· Improve stakeholders’ awareness of the pathways for integration of agriculture and nutrition.

· Improve key nutrition-related behaviors through implementation of a nutrition education strategy (see Attachment 1).

· Increase the access to diverse and quality foods among target populations through improved production, purchase, storage, and preparation of nutritious foods.

· Enhance consumption of an adequate and sufficiently diversified diet.

· Undertake WASH activities, including Multiple Use Services, and provision of safe drinking water, sanitation and hygiene.

In Component 4, the Contractor shall identify local systems – public sector agencies, non-governmental organizations (NGOs), civil society organizations, private sector entities, trade and professional associations, including producer associations that are currently capable of, or will be strengthened to receive direct USAID funding. Developing local systems to implement investments is integral to a country-led approach as promoted under both FTF and Global Health Initiative (GHI). To further local systems development, KAVES will have as an objective local organizational capacity building. Over the course of implementation, the partnerships with local systems built on direct funding and monitoring of milestones will ensure that organizations are able to implement for results, meet USAID’s accountability requirements and have the capability to emerge from sub-recipient status to take on implementation of other agricultural value chain activities independently.

In order to reach the objectives of this component, the Contractor shall, at a minimum:

· Develop the capacity of at least 5 local organization’s management practices and financial systems to allow them to receive direct USAID awards and contracts (e.g. Fixed Obligation Grants) to manage a USAID-funded project that produces results.

C.3.3 Transition Awards

Pursuant to the authority contained in ADS 303.3.6.6(b)(3), USAID intends to make assistance awards without competition to local organizations who have been a sub-recipient (subcontractor) under this contract. The Contractor shall identify and propose sub-recipients to USAID for consideration for a direct assistance award under this authority.

Criteria for Identifying/Qualifying Sub-recipient for Award:

The sub-recipients must be a local organization, be a current sub-recipient (subcontractor) under this award, and conduct business relating to the requirements of this contract.

In order to qualify for an award, the Contractor shall ensure, at a minimum, that the proposed awardee meets the requirements for receiving a Fixed Obligation Grant in accordance with ADS 303.3.25.

Procedures for Making Direct Award:

When the Contractor identifies and qualifies a sub-recipient (subcontractor) for a direct assistance award, the Contractor shall notify the COR of the proposed sub-recipient (subcontractor). The Contractor shall present all pertinent documentation and evidence of qualification to the COR. The COR shall review the information, and if a direct award is in the interests of USAID, shall request that the cognizant CO begin the procedures for making a noncompetitive award to the proposed sub-recipient (subcontractor). The CO shall then follow the normal procedures of ADS 303.

Timeline for Making Award:

USAID may utilize this authority and these procedures for the duration of this contract.

C.4 Key Personnel

The following positions have been designated as key personnel, and are essential to the work being performed under this contract. Prior to replacing any of these individuals, the Contractor shall notify both the Contracting Officer and the Contracting Officer’s Representative (COR) reasonably in advance and must submit written justification (including proposed substitutions) in sufficient detail to permit evaluation of the impact on the project. No replacement shall be made by the Contractor without the prior written consent of the Contracting Officer.

All educations degrees must be from an accredited university.

Chief of Party The Contractor shall provide a resident Chief of Party (COP) for the duration of the contract. The Contractor shall delegate adequate authority to the COP to make all KAVES project implementation decisions in Kenya and speak for the Contractor. The COP shall be responsible for all reporting to USAID and is expected to play a lead role interacting with key value chain actors and other development partners.

Minimum qualifications:

· Demonstrated expertise and a minimum of 15 years’ experience in managing large (at least $10 million), complex value chain or agri-business projects, with experience in production, agricultural economics, market intelligence, or related field.

· A minimum of 10 years’ experience as a COP, Project Director, or similar senior management position for projects with similar magnitude and complexity in developing countries.

· Excellent oral, written, and interpersonal skills.

· Demonstrated ability to be collaborative across projects, flexible and creative.

· Strong communications and interpersonal skills with evidence of ability to productively interact with a wide range and levels of organizations (government, private sector, NGOs, research institutions).

· Master’s degree in agricultural economics, economics, or other value-chain-related field or a Bachelor’s degree in a relevant agricultural field with an additional 7 years’ experience to the required minimums above.

Deputy Chief of Party The Contractor shall provide a resident Deputy Chief of Party (DCOP) for the duration of the contract. In the absence of the COP, the DCOP shall be responsible for all reporting to USAID and shall have the authority to speak for the Contractor. The DCOP is expected to play a lead role in his/her technical area, which should be complementary to the technical background of the COP.

Minimum qualifications:

· 10 years’ experience with successful value chain projects,

· 10 years’ experience on projects with similar magnitude and complexity in developing countries.

· Demonstrated expertise in one of the key areas mentioned above and complementing the experience of the COP.

· Excellent oral, written, and interpersonal skills.

· Kenyan experience is preferred.

· Master’s Degree in agricultural economics, economics, or other value-chain-related field.

Managers/Technical Directors (3) for Major Value Chains and/or Technical Component

The Contractor shall provide resident manager/experts for the major value chains and/or technical components (TBD based on what the offeror proposes prior to award), such as production, post-harvest and marketing, etc. One person can manage more than one value chain or technical component. East African experience is preferred, but not required. These individuals shall be responsible for all aspects of the chains/components they are managing.

Minimum qualifications:

· 10 years’ international experience with successful value chain development projects in the technical area of management responsibility.

· 10 years’ experience on projects with similar magnitude and complexity in developing countries.

· Demonstrated success in implementing projects aimed at increasing the competitiveness and inclusiveness of value chains using facilitation approaches.

· Master’s Degree in a field relevant to agricultural development such as: agricultural economics, marketing, post-harvest handling, agribusiness management or related fields.

Additional Skills/Experience Required for the Project

The following is an additional illustrative list of other long and short term skills/experiences which may be required:

· Market intelligence

· General Procurement expertise

· Post-harvest handling

· Product transformation

· Cold chain technology

· Food science

· Information technology

· Training and local capacity building, human resources management

· Quality control and assurance

· Agro-nutrition

· Market finance

· Civil engineering

· Water, sanitation and hygiene

· Monitoring and evaluation

C.5 Geographic Area/Target Population

The project will focus on areas of Kenya characterized by high rates of vulnerability, poverty, under-nutrition, and often with poor market access and unreliable rainfall. It will target the smallholder households using a value chain approach. Twenty-two counties have been identified in two agro-ecological zones (AEZs) and include parts of Western, Nyanza, Rift Valley, southern portions of Eastern and the Coast Provinces. These AEZs, which are by no means homogeneous, are referred to as High Rainfall Zone One (HR1) and Semi-Arid Zone Two (SA2). It should be noted, however, that value chain approaches that work along the full chain cannot limit all interventions to a specific geographic area, and will occur wherever the value chain goes, and both upstream and downstream, from production undertaken in the two identified AEZ’s. Activities such as input supply, transport, processing and marketing may well be located outside the focus areas due to factors related to infrastructure and markets. Nonetheless, the Contractor shall focus its farmer/household activities on production and post-harvest handling in HR1 and SA2.

KAVES’s target population will include the poor and food insecure as well as better-off and more commercially minded farmers and entrepreneurs, who might act as change agents and innovators. These better-off change agents are in a position to absorb the risks of innovating and potentially lower the risks for later adopters, with fewer resources. (Attachment 5 presents the target geographic regions.)

C.6 Coordination

C.6.1 Role of USAID

Principal responsibility for project management of KAVES on the side of USAID will reside with USAID/Kenya’s Agriculture, Business and Environment Office (ABEO) and USAID/East Africa’s Regional Assistance and Acquisition Office (RAAO).

The Contractor shall work with the USAID Contracting Officer‘s Representative (COR) for the KAVES activity. The Contractor’s Chief of Party or designee will communicate regularly with the COR at least on a monthly basis. On an as-needed basis, the staff composition of the meetings will be determined by the COR and the Contractor to reflect the special nature of the meetings; for example, instances when the Contractor’s financial/administrative manager, key technical or field staff and other USAID staff will need to be in attendance.

USAID will be actively engaged in the activities outlined throughout this contract. Specifically, USAID will:

· Review and approve the annual work plans, which for the first year must be presented to the USAID COR no later than 60 days after the signing of the contract.

· Review and approve the criteria for selection of additional value chains, in addition to the required maize, dairy, and horticultural value chains.

· Review and approve the methodologies to be employed and the final baseline survey to be conducted during the first 30 days after the signing of the contract.

· Facilitate coordination with other USAID-funded agricultural projects, most notably the Tegemeo Agricultural Policy Research and Analysis II Project (TAPRA II), and KARI Agricultural Research, and other USAID-funded projects.

· Conduct external evaluations of KAVES, including a mid-term and final evaluation.

C.6.2 Relation with Other USG Projects

The KAVES project shall interface closely with other USAID projects, in particular Feed the Future activities supporting rural sector economic growth to ensure that USAID objectives are met while avoiding any duplication of services rendered or equipment delivered, or any redundancy of systems developed. The KAVES project shall work in a manner to amplify the results of these projects through strategic interventions supportive of their value chain strengthening activities. As appropriate, the Contractor shall provide capacity-building assistance and mentoring, especially to local organizations, with which USAID has direct funding relationships.

The Contractor shall coordinate with on-going projects in USAID/Kenya’s Office of Public Health (OPH), and with USAID/Kenya’s Office of Education and Youth (EDY), particularly in the Yes Youth Can! project. The Contractor shall also coordinate with activities funded by USAID/East Africa, especially those funded by the Regional Economic Growth and Integration Office and diverse USAID/Washington-funded activities, particularly those of the Collaborative Research Support Programs.

C.6.3 Coordination of KAVES with Other Donor Activities

USAID/Kenya maintains a good relationship with multilateral and other bilateral development partners. Donor coordination will be an important part of the KAVES project. The Contractor shall, under USAID guidance, ensure that proper coordination with other donor projects in the area of rural value chains and agriculture exists. The Contractor shall keep other development partners informed about its activities, to disseminate reports and findings to other development partners, and to collaborate with other development partners on the full range of tasks as defined in the SOW. The KAVES project shall stay informed about other development partners’ activities so as to avoid duplication and to exploit opportunities to coordinate or collaborate in specific activities. The Contractor shall actively seek opportunities to promote leveraging of other development partners’ activities and will exploit opportunities for developing public-private partnerships. The Contractor shall report on pertinent other donor contacts and relationships as part of its quarterly report.

The Contractor shall closely coordinate the activities of other development partners and government bodies, under the supervision of USAID.

C.6.4 Coordination of Construction Activities

If the Contractor determines that any construction activities (e.g. market infrastructure improvements, water supply improvements, etc.) are needed, the Contractor shall notify the COR and CO of the needed activities upon their identification. If the construction activity is deemed necessary and approved by USAID, and funding is available, a separate contract will be issued to perform the work. The Contractor shall coordinate with whoever performs the construction work.

C.7 Performance Management Plan and Evaluations

The Contractor’s monitoring and evaluation (M&E) plan which includes the Performance Management Plan (PMP). The PMP submitted as part of its proposal, is hereby incorporated by reference into the contract. The objectives outlined in Section C.2 are the minimum indicators for the M&E plan.

The PMP shall include clear and well defined benchmarks, suggested performance indicators, and targets that help measure progress toward the project objectives and results described in the SOW. Proposed indicators shall meet USAID data quality standards for validity, integrity, precision, reliability and timeliness described in ADS 203.3.5.1 (http://www.usaid.gov/policy/ads/200/). A plan for collecting baseline and follow on data shall be included.

In line with ADS 201, global FtF M&E requirements and the USAID Evaluation Policy, the Contractor’s M&E plan (which includes the PMP) shall utilize an approach that: provides constant feedback on the extent to which KAVES activities are achieving their goals; identifies potential problems at early stages; monitors the accessibility of the project interventions and benefits to all sectors of the target population especially to women, the youth and other vulnerable rural poor; monitors the validity of data and efficiency with which the KAVES activities are being implemented and suggests improvements; provides analytical data necessary to influence sector assistance; improves overall KAVES project strategy through continuous knowledge sharing and learning; takes into account the views of beneficiaries and other stakeholders and provides evidence for need of mid-course corrections where appropriate.

The Contractor’s monitoring and evaluation plan shall utilize Geographical Information Systems (GIS) in the reporting process for all its activities. This will be accomplished by the use of standard data formats oriented around geographical features and their indicators. Geo-referenced data will be collected to identify: specific locations, e.g., village; infrastructure, e.g., grain aggregation facility; training locale, e.g., field demonstration site, etc.

USAID/Kenya intends to conduct one or more external evaluations of the overall KAVES activity, including a mid-term evaluation. These evaluations are intended to document progress as well as make recommendations to increase the efficiency and effectiveness of KAVES Project. While the Contractor is not responsible for the conduct of this evaluation, the Contractor shall provide information to the evaluation team.

C.8 Location of Services

The Contractor shall establish a central office in Nairobi for implementation of contract activities within the first month of the activity. The Contractor shall also provide dedicated full-time staff to regional offices in HR1, SA2, and other sites as needed.

[END OF SECTION C]

SECTION D - PACKAGING AND MARKING

D.1. 752.7009 MARKING (JAN 1993)

(a) It is USAID policy that USAID-financed commodities and shipping containers, and project construction sites and other project locations be suitably marked with the USAID emblem. Shipping containers are also to be marked with the last five digits of the USAID financing document number.