MARKETS II SOL 620-11-000001.pdf

1. THIS CONTRACT IS A RATED ORDER RATING PAGE OF PAGES

UNDER DPAS (15 CFR 700)

2. CONTRACT NUMBER 3. SOLICITATION NUMBER 4. TYPE OF SOLICITATION 5. DATE ISSUED 6. REQUISITION/PURCHASE NUMBER

SEALED BID (IFB)

NEGOTIATED (RFP)

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

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

9. Sealed offers in original and _____________________________ copies for furnishing the supplies or services in the Schedule will be received at the place specified in Item 8, or if handcarried, in the depository located in until local time _______________________ (Hour) (Date)

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

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

AREA CODE NUMBER EXT.

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

PART I - THE SCHEDULE PART II - CONTRACT CLAUSES

A SOLICITATION/CONTRACT FORM I CONTRACT CLAUSES

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

C DESCRIPTION/SPECS./WORK STATEMENT J LIST OF ATTACHMENTS

D PACKAGING AND MARKING PART IV - REPRESENTATIONS AND INSTRUCTIONS

E INSPECTION AND ACCEPTANCE

F DELIVERIES OR PERFORMANCE

G CONTRACT ADMINISTRATION DATA L INSTR., CONDS., AND NOTICES TO OFFERORS

H SPECIAL CONTRACT REQUIREMENTS M EVALUATION FACTORS FOR AWARD

K REPRESENTATIONS, CERTIFICATIONS AND OTHER

STATEMENTS OF OFFERORS

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

12. In compliance with the above, the undersigned agrees, if this offer is accepted within 120 (calendar days unless a different period is inserted by the offeror) from the date for receipt of offers specified above, to furnish any or all items upon which prices are offered at the price set opposite each item , delivered at the designated point(s), within the time specified in the schedule.

13. DISCOUNT FOR PROMPT PAYMENT 10 CALENDAR DAYS (%) 20 CALENDAR DAYS (%) 30 CALENDAR DAYS (%) CALENDAR DAYS (%) (See Section I, Clause No. 52-232-8)

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

(The offeror acknowledges receipt of amendments to the SOLICITATION for offerors and related documents numbered and dated:

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

ADDRESS

OF OFFEROR

(Type or print)

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

AREA CODE NUMBER EXT. 15C. CHECK IF REMITTANCE ADDRESS IS DIFFERENT FROM

ABOVE - ENTER SUCH ADDRESS IN SCHEDULE

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

22. AUTHORITY FOR USING OTHER THAN FULL AND OPEN COMPETITION: 23. SUBMIT INVOICES TO ADDRESS SHOWN IN ITEM (4 copies unless otherwise specified)

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

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

26. NAME OF CONTRACTING OFFICER (Type or print) 27. UNITED STATES OF AMERICA 28. AWARD DATE

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

(Signature of Contracting Officer)

(REV. 9-97)

10. FOR INFORMATION CALL:

11. TABLE OF CONTENTS

STANDARD FORM 33

SOLICITATION, OFFER AND AWARD

SOLICITATION

OFFER (Must be fully completed by offeror)

AWARD (To be completed by Government)

1 157

SOL-620-11-000001

X

August 3, 2011

USAID/NIGERIA

OFFICE OF ACQUISITION AND ASSISTANCE

C/O U.S. EMBASSY, PLOT 1075 DIPLOMATIC DRIVE

CENTRAL DISTRICT, PMB 5760

ABUJA, NIGERIA

See Section L See Section L See Cover Page See Cover Page abujamarketsii@usaid.gov

See Attached Table of Contents

X 1

X 9-12

X 13-36

X 37

X 38

X 39-47

X 48-51

X 52-65

X 66-79

X 80

X 81-90

X 91-117

X 118-124

$.00

Jamala Ukwa Contracting Officer

ABBREVIATIONS AND ACRONYMS

ACCOMEX Agricultural Commodity Exchange Market ADP Agricultural Development Program offices (states) AfDB African Development Bank AGRA Alliance for a Green Revolution in Africa ATP Agricultural Transformation Program AU African Union BMGF The Bill and Melinda Gates Foundation CAADP Comprehensive African Agricultural Development Program CIDA Canadian International Development Agency DFID Department of International Development Programs DPPS Department of Policy, Planning, and Statistics DT Drought Tolerant ECOWAS Economic Community of West African States EGAT Economic Growth, Agriculture and Trade FAO Food and Agricultural Organization FCT Federal Capital Territory FEPSAN Fertilizer Producers and Suppliers Association of Nigeria FEWSNET Famine Early Warning System Network FTF Feed the Future FMARD Federal Ministry of Agriculture and Rural Development GFSR Global Food Security Response GHFSI Global Hunger and Food Security Initiative GON Government of Nigeria ICRISAT International Crops Research Institute for Semi-Arid Tropics ICRAF World Agroforestry Center IDA International Development Association IEHA Initiative to End Hunger in Africa IFAD International Fund for Agricultural Development IFC International Finance Corporation IFDC International Fertilizer Development Center IFPRI International Food Policy Research Institute IITA International Institute of Tropical Agriculture ILRI International Livestock Research Institute MARKETS Maximizing Agricultural Revenue in Key Enterprises in Targeted Sites MAWR Ministry of Agriculture and Water Resources MCI Ministry of Commerce and Industry MDG Millennium Development Goal mt metric tons M&E Monitoring and Evaluation NEPAD New Partnership for Africa’s Development NRCRI National Root Crops Research Institute NUE Nitrogen Use Efficiency OP Operational Plan PrOpCom Promoting Pro-Poor Opportunities through Commodity and Service Markets

PROSAB Promotion of Sustainable Agriculture SAKSS Strategic Analysis and Knowledge Support System SPFS Special Program for Food Security SPS Sanitary and Phyto-Sanitary ST Salinity Tolerance TIFA Trade and Investment Framework UK United Kingdom USAID United States Agency for International Development USAID/N USAID Mission in Nigeria USDA United States Department of Agriculture USG United States Government

Table of Contents

ABBREVIATIONS AND ACRONYMS

PART I - THE SCHEDULE

SECTION B - SUPPLIES OR SERVICES AND PRICE/COSTS

B.1 PURPOSE

B.2 CONTRACT TYPE AND SERVICES

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

B.4 CONTRACT LINE ITEM NUMBERS

B.5 INDIRECT COSTS

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

REIMBURSEMENT FOR INDIRECT COSTS

B.7 COST REIMBURSABLE

B.8 FIXED FEE – FAR 52.216-8 (MAR 1997)

SECTION C - DESCRIPTION/SPECIFICATIONS/STATEMENT OF WORK

C.1 INTRODUCTION

C.2 BACKGROUND

C.3 CHALLENGES

C.4 SCOPE OF MARKETS II

C.5. MILESTONES

C.6 EXPECTED RESULTS

C.7 MONITORING AND EVALUATION TO ACHIEVE FAMILY FOOD SECURITY

C.8 PROGRAM EXPANSION

C.9 LEVERAGING MARKETS II ACTIVITIES

C.10 EXIT STRATEGY

C.11 STRATEGY

C.12 SECURITY

C.13 STAFFING PLAN

C.14 TRANSITION TO MARKETS II

SECTION D - PACKAGING AND MARKING

D.1 AIDAR 752.7009 MARKING (JAN 1993)

D.2 BRANDING AND MARKING POLICY

SECTION E - INSPECTION AND ACCEPTANCE

E.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE

E.2 INSPECTION AND ACCEPTANCE

E.3 MONITORING AND EVALUATION PLAN/PERFORMANCE STANDARDS

SECTION F - DELIVERIES OR PERFORMANCE

F.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE

F.2 PERIOD AND PLACE OF PERFORMANCE

F.3 PERFORMANCE STANDARDS/MONITORING AND EVALUATION PLAN

F.4 REPORTS AND DELIVERABLES OR OUTPUTS

F.5 REPORTING REQUIREMENTS

F.6 AIDAR 752.7005 SUBMISSION REQUIREMENTS FOR DEVELOPMENT

EXPERIENCE DOCUMENTS (JAN 2004)

F.7 752.242-70 PERIODIC PROGRESS REPORTS (OCT 2007)

F.8 KEY PERSONNEL

SECTION G - CONTRACT ADMINISTRATION DATA

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

G.2 CONTRACTING OFFICE

G.3 CONTRACTING OFFICER’S TECHNICAL REPRESENTATIVE (COTR)

G.4 PAYING OFFICE

G.5 ACCOUNTING AND APPROPRIATION DATA

G.6 TECHNICAL DIRECTIONS/RELATIONSHIP WITH USAID

SECTION H - SPECIAL CONTRACT REQUIREMENTS

H.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE

H.2 AIDAR 752.225-70 SOURCE, ORIGIN AND NATIONALITY REQUIREMENTS (FEB 1997)52

H.3 AIDAR 752.7007 PERSONNEL COMPENSATION (JULY 2007)

H.4 ADDITIONAL REQUIREMENTS FOR PERSONNEL COMPENSATION

H.5 AIDAR 752.7004 EMERGENCY LOCATOR INFORMATION (JULY 1997)

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

H.7 AUTHORIZED GEOGRAPHIC CODE

H.8 LOGISTIC SUPPORT

H.9 LANGUAGE REQUIREMENTS

H.10 SUBCONTRACTING PLAN AND THE SF 294 – SUBCONTRACTING REPORT FOR

INDIVIDUAL CONTRACTS AND SF 295 – SUMMARY CONTRACTING REPORTS

H.11 ORGANIZATIONAL CONFLICTS OF INTEREST: PRECLUSION FROM FURNISHING

CERTAIN SERVICES AND RESTRICTION ON USE OF INFORMATION (EVALUATION) (AIDAR

752.209-71)

H.12 GRANTS UNDER CONTRACT

H.13 EXECUTIVE ORDER ON TERRORISM FINANCING (MAR 2002) (PEB 2005-12)

H.14 FOREIGN GOVERNMENT DELEGATIONS TO INTERNATIONAL CONFERENCES (JAN

2002) ADS 350 – Mandatory Reference for ADS 302)

H.15 AIDAR 752.7032 INTERNATIONAL TRAVEL APPROVAL AND NOTIFICATION

REQUIREMENTS (JAN 1990)

H.16 USAID DISABILITY POLICY (DECEMBER 2004)

H.17 SUBCONTRACTING CONSENT (FAR 52.244-4)

H.18 REPRESENTATIONS AND CERTIFICATIONS

H.19 HOMELAND SECURITY PRESIDENTIAL DIRECTIVE-12 (HSPD-12)

(SEPTEMBER 2006)

H.20 PROHIBITION OF ASSISTANCE TO DRUG TRAFFICKERS

H.21 REPORTING OF FOREIGN TAXES (JUL 2007)(ADS 302.3.5.5)

H.22 ENVIRONMENTAL COMPLIANCE

H.23 CONFIDENTIALITY AND OWNERSHIP OF INTELLECTUAL PROPERTY

H.24 INSURANCE AND SERVICES

H.25 GENDER CONSIDERATION

H.26 AIDAR 752.231-71 SALARY SUPPLEMENTS FOR HOST GOVERNMENT (HG)

EMPLOYEES (OCT 1998)

PART II – CONTRACT CLAUSES

SECTION I - CONTRACT CLAUSES

I.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE

I.2 52.217-2 Cancellation Under Multi-year Contracts

I.3 FAR 52.252-2 CLAUSES INCORPORATED BY REFERENCE (FEB 1998)

I.4 FAR 52.227-23 RIGHTS TO PROPOSAL DATA (TECHNICAL) (JUN 1987)

I.5 FAR 52.209-9 UPDATES OF PUBLICLY AVAILABLE INFORMATION REGARDING

RESPONSIBILITY MATTERS (JAN 2011)

I.6 FAR 52.203-13 CONTRACTOR CODE OF BUSINESS ETHICS AND CONDUCT

(APR 2010)

I.7 AIDAR 752.209-71 ORGANIZATIONAL CONFLICTS OF INTEREST DISCOVERED AFTER

AWARD (JUN 1993)

I.8 FAR 52.222-50 COMBATING TRAFFICKING IN PERSONS (FEB 2009)

Alt. I (AUG 2007)

I.9 FAR 52.244-2 SUBCONTRACTS (OCT 2010)

PART III – LIST OF DOCUMENTS, EXHIBITS AND OTHER ATTACHMENTS

SECTION J - DOCUMENT, EXHIBITS AND OTHER ATTACHMENTS

PART IV – REPRESENTATIONS AND INSTRUCTIONS

SECTION K - REPRESENTATIONS, CERTIFICATIONS AND OTHER STATEMENTS OF OFFERORS

K.1 52.204-6 DATA UNIVERSAL NUMBERING SYSTEM (DUNS) NUMBER

(APR 2008)

K.2 52.204-8 ANNUAL REPRESENTATIONS AND CERTIFICATIONS (JAN 2011)

K.3 52.209-7 INFORMATION REGARDING RESPONSIBILITY MATTERS (JAN 2011)

K.4 52.230-1 COST ACCOUNTING STANDARDS NOTICES AND CERTIFICATION

(OCT 2008)

K.5 52.230-7 PROPOSAL DISCLOSURE--COST ACCOUNTING PRACTICE

CHANGES (APR 2005)

K.6 AGREEMENT ON, OR EXCEPTIONS TO, TERMS AND CONDITIONS

K.7 DATA UNIVERSAL NUMBERING SYSTEM (DUNS) NUMBER

K.8 AUTHORIZED NEGOTIATORS

K.9 SIGNATURE

SECTION L - INSTRUCTIONS, CONDITIONS, AND NOTICES TO OFFERORS

L.1 NOTICE LISTING SOLICITATION PROVISIONS INCORPORATED BY REFERENCE

L.2 52.215-1 INSTRUCTIONS TO OFFERORS—COMPETITIVE ACQUISITION (JAN 2004) 91

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

L.4 52.233-2 SERVICE OF PROTEST (SEP 2006)

L.5 QUESTIONS AND CLARIFICATIONS

L.6 GENERAL INSTRUCTIONS TO OFFERORS

L.7 DELIVERY INSTRUCTIONS

L.8 INSTRUCTIONS FOR THE PREPARATION OF THE TECHNICAL PROPOSAL

L.9 INSTRUCTIONS FOR THE PREPARATION OF A BRANDING STRATEGY PLAN

L.10 INSTRUCTIONS FOR THE PREPARATION OF THE COST/BUSINESS PROPOSAL

L.11 OTHER RELEVANT INFORMATION

SECTION M - EVALUATION FACTORS FOR AWARD

M.1 GENERAL INFORMATION

M.2 BASIS FOR AWARD

M.3 TECHNICAL EVALUATION CRITERIA

M.4 BUSINESS/COST PROPOSASL EVALUATION

M.5 SMALL BUSINESS PARTICIPATION

M.6 EVALUATION RATINGS

ATTACHMENTS

ATTACHMENT J 1 - CAADP PRINCIPLES AND PROGRESS

ATTACHMENT J 2 - GON’S AGRICULTURE AGENDA AND USG SUPPORT

ATTACHMENT J 3 - OVERVIEW OF AGRICULTURAL TRANSFORMATION PROGRAM (ATP) .. 131

ATTACHMENT J 4 - MARKETS II DEVELOPMENT MODEL

ATTACHMENT J 5 - AN INVENTORY OF OTHER DONORS’ AGRICULTURAL PROGRAMS

ATTACHMENT J 6 - IDENTIFICATION OF PRINCIPAL GEOGRAPHIC CODE NUMBERS

ATTACHMENT J 7 - CONTRACTOR EMPLOYEE BIOGRAPHICAL DATA SHEET

ATTACHMENT J 8 - DISCLOSURE OF LOBBYING ACTIVITIES

ATTACHMENT J 9 - MODEL SUBCONTRACTING PLAN OUTLINE

ATTACHMENT J 10 - PAST PERFORMANCE INFORMATION

ATTACHMENT J 11 - MISSION’S LOCAL EMPLOYEE SALARY SCALE PLAN

ATTACHMENT J 12 - BACKGROUND MATERIAL FOR MARKETS II SOLICITATION

PART I - THE SCHEDULE

SECTION B - SUPPLIES OR SERVICES AND PRICE/COSTS

B.1 PURPOSE

The purpose of this contract is to provide technical services that fall within the scope of work specified in Section C – Description/Specification/Statement of Work for Maximizing Agricultural Revenue and Key Enterprise in Targeted Sectors (MARKETS II).

B.2 CONTRACT TYPE AND SERVICES

This is a Cost Plus Fixed Fee (CPFF) Contract in accordance with FAR 16.306(d). The Contractor shall provide the deliverables described in Section C and the additional requirements of Section F and H in accordance with the performance standards specified herein.

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

In accordance with FAR Part 52.232-22 - Limitation of Funds:

(a) The estimated cost for the performance of the work required hereunder, exclusive of fixed fee, if any, is $_________. The fixed fee, if any, is $ ________. The estimated cost plus fixed fee, if any, is $ _________.

(b) Within the estimated cost plus fixed fee (if any) specified in paragraph (a) above, the amount currently obligated and available for reimbursement of allowable costs incurred by the Contractor (and payment of fee, if any) for performance hereunder is $_________. The Contractor shall not exceed the aforesaid obligated amount.

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

B.4 CONTRACT LINE ITEM NUMBERS

CLIN DESCRIPTION

YEAR 1

YEAR 2

YEAR 3

YEAR 4

YEAR 5

TOTAL

001 Producers’ Capacity

Development and Organizations

002 Agricultural Inputs 003 Technology Generation and

Deployment

004 Water and Soil Management 005 Access to Finance 006 Grant Fund 007 Program Modifier/Rapid

Response Mechanism

Fixed Fee (if any) Total Estimated Cost Total plus fixed fee (if any)

B.5 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:

Description Rate Base Type Period

1/ 1/ 1/ 2/ 2/ 2/ 3/ 3/ 3/

1/Base of Application:

Type of Rate:

Period:

2/Base of Application:

Type of Rate:

Period:

3/Base of Application:

Type of Rate:

Period:

Source:

Note 1: Contractors may recover applicable indirect costs (i.e., overhead, G&A, etc.) if it is part of the contractor's usual accounting procedures, consistent with FAR Part 31, and Negotiated Indirect Cost Rate Agreement (NICRA).

Note 2: While Subcontractor indirect cost rates are not incorporated above, subcontractor indirect cost rates as indicated in Note 1 above may be included in the proposals, and are subject to Contracts Officer’s approval in accordance with FAR 52.244-2, Subcontracts.

B.6 ADVANCE UNDERSTANDING ON CEILING INDIRECT COST RATES AND

FINAL REIMBURSEMENT FOR INDIRECT COSTS

(To be filled in at award) Reimbursement for indirect costs shall be at the lower of the negotiated final or predetermined rates, or the following ceiling rates:

For Prime Contractor:

Description Rate Base Type Period

1/ 1/ 1/ 2/ 2/ 2/ 3/ 3/ 3/

1/Base of Application:

Type of Rate:

Period:

2/Base of Application:

Type of Rate:

Period:

3/Base of Application:

Type of Rate:

Period:

Source:

For Major Subcontractors*

Description Rate Base Type Period

1/ 1/ 1/ 2/ 2/ 2/ 3/ 3/ 3/

1/Base of Application:

Type of Rate:

Period:

2/Base of Application:

Type of Rate:

Period:

3/Base of Application:

Type of Rate:

Period:

(a) *“major subcontractors” are subcontractors whose proposed costs exceed 20% of the Offeror’s proposed total cost or perform a key element of the scope of work.

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

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

B.7 COST REIMBURSABLE

The U.S. dollar costs allowable shall be limited to reasonable, allocable and necessary costs determined in accordance with FAR 31 (Contract Cost Principles), A-21 (Cost Principles for Educational Institutions), A-122 (Cost Principles for Non-Profit Organizations), FAR 52.216- 7 (Allowable Cost and Payment), FAR 52.216-8 (Fixed Fee) if applicable, and AIDAR 752.7003 (Documentation for Payment), may be reimbursable under this contract.

B.8 FIXED FEE – FAR 52.216-8 (MAR 1997)

(a) The Government shall pay the Contractor for performing this contract the fixed fee specified in the Schedule.

(b) Payment of the fixed fee shall be made as specified in the Schedule; provided that after payment of 85 percent of the fixed fee, the Contracting Officer may withhold further payment of fee until a reserve is set aside in an amount that the Contracting Officer considers necessary to protect the Government’s interest. This reserve shall not exceed 15 percent of the total fixed fee or $100,000, whichever is less. The Contracting Officer shall release 75 percent of all fee withholds under this contract after receipt of the certified final indirect cost rate proposal covering the year of physical completion of this contract, provided the Contractor has satisfied all other contract terms and conditions, including the submission of the final patent and royalty reports, and is not delinquent in submitting final vouchers on prior years’ settlements. The Contracting Officer may release up to 90 percent of the fee withholds under this contract based on the Contractor’s past performance related to the submission and settlement of final indirect cost rate proposals.

- END OF SECTION B –

SECTION C - DESCRIPTION/SPECIFICATIONS/STATEMENT OF WORK

Maximizing Agricultural Revenue and Key Enterprise in Targeted Sectors (MARKETS II) Program

C.1 INTRODUCTION

During 2009, the United States Government (USG) launched the Global Hunger and Food Security Initiative (GHFSI) now Feed the Future (FTF) to address critical agricultural issues that impact many developing countries especially in Africa. The USG/Nigeria Mission has responded by developing an Agricultural Transformation Program (ATP) involving multiple activities and projects all with the common purpose of reducing poverty and hunger in Nigeria directly and more broadly in the West African region. Specifically the ATP seeks to support the Government of Nigeria’s effort to achieve the Millennium Development Goal (MDG)1 of halving poverty by 2015 by accelerating the participation of the poor in productive activities. It will complement and strengthen its activities linked directly to the poor with policy reforms in the agricultural, trade and transport sectors and infrastructure investments within the framework of the Comprehensive African Agricultural Development Program (CAADP) Compact (see Attachment J 1).

The contract shall implement MARKETS II, ATP’s flagship program and successor to the previous MARKETS project, a USAID/Nigeria activity that proved successful in building productive commercially sustainable agricultural commodity value chains. MARKETS II will deepen and extend the MARKETS model2 with the aim to improve the performance of Nigerian poor rural farmers or smallholders, their incomes and nutrition through proven private sector demand driven market interventions. A Bridge to MARKETS II activity, focusing on constraints in the agricultural value chain, is on-going to allow for a smooth transition between the two projects and ensure continued provision of services to beneficiaries.

The contractor shall deepen the model through a continued strengthening and expansion of currently supported agricultural value chains. This will be accomplished by extending the number of smallholder beneficiaries, helping them access better inputs, such as improved seeds and fertilizer, adequate finance, better water management, appropriate technology and extension services. The contractor shall work along the value chain through producer associations, credit institutions and agribusinesses (suppliers, contractors, transporters and especially agro-processors) to identify and alleviate constraints to well-functioning markets. Under MARKETS II, the contractor shall identify and expand into new value chains and geographic regions as funding allows.

1 MDG Indicator List: http://unstats.un.org/unsd/mdg/Host.aspx?Content=Indicators/OfficialList.htm 2 MARKETS is not unique in its success. USAID and other donors have sponsored similar projects in other countries over the past two decades: for example, the ECONOMIC GARDENING IN BOSNIA-HERZEGOVINA LINKING AGRICULTURAL MARKETS TO PRODUCERS (LAMP) PROJECT. See https://www.businessgrowthinitiative.org/BGIProducts/Documents/Economic%20Gardening%20in%20Bosnia- Herzegovenia.pdf

In close collaboration with USAID, the contractor shall be in an excellent position to leverage funds from the Government of Nigeria (GON) and other donors. Even at its base level of financing, the MARKETS II project will have a significant impact on poverty and hunger in Nigeria; an estimated 3,500,000 poor farmers could benefit from such a program over the life of the project. Successful leveraging of GON and other donor funds, could bring the total to 16.5 million farmers, approximately 20 percent of estimated Nigeria's poor population in 2006.

The MARKETS II project focuses on the large population of smallholders with between 1 to 5 hectares of land under cultivation. An estimated 80 and 90 percent of all agricultural plots are less than two hectors in size. Given that between 60 to 80 percent of the workforce on such smallholdings may be women (depending on crop and region), MARKETS II will benefit them especially. MARKETS II is also designed to be financially, economically and environmentally sustainable. It is not a bank but will work with local banks and other lenders, e.g., NGOs, to update their systems, staff, evaluation procedures, collateral requirements and the like to facilitate lending to smallholders. Productivity increases will not be the outcome of direct subsidies but rather the result of adoption of modern farming methods, connecting farmers and agro-producers improved inputs, through privately and publicly provided extension services, by investments in public infrastructure, and by changes in agricultural policy. The MARKETS II in all its activities will assure that only environmentally friendly sustainable practices will be implemented.

The Government of Nigeria (GON) has made clear its intention to support a model similar to that of MARKETS (see Attachment J 2) and the USAID/Nigeria MARKETS II program will support the GON’s efforts. It will monitor its own activities and outcomes closely and feed the results to our partners at the Federal Ministry of Agricultural and Rural Development (FMARD), to build out its activities and pursue public-private partnerships with the GON and others where feasible.

C.2 BACKGROUND

The GON, African Union’s New Partnership for Africa’s Development (AU/NEPAD), Economic Community of West African States (ECOWAS) and representatives of the private sector, civil society and development partners signed Nigeria’s Comprehensive Africa Agricultural Development Program (CAADP) Compact on October 30, 2009. CAADP is AU/NEPAD’s vision and strategy for the development of African agriculture to accelerate growth and eliminate poverty and hunger among African countries. At the continental level, it is a framework for advocacy and action. The goal of the program is to help African countries reach and sustain a higher path of economic growth through agriculture-led development that reduces hunger and poverty, enables food and nutrition security and growth in exports. It is African owned and African led (http://www.nepad-caadp.net).

The CAADP agenda, although continental in scope is an integral part of each member nation’s national strategy to promote agricultural sector growth and economic development. Accordingly, in Nigeria, the focus of the CAADP process is to strengthen and add value to the Nigeria’s Federal Ministry of Agriculture and Rural Development’s 5-Point Plan derived from the President’s 7-Point Agenda. As detailed in the country CAADP Compact, the GON will:

(a) Ensure the efficiency and effectiveness of its agricultural policies;

(b) Develop and implement those policies to foster private sector competitiveness;

(c) Improve local infrastructure;

(d) Strengthen public sector capacity to participate in trade negotiations and meet market access requirements;

(e) Build strategic alliance to create industry-to-industry linkages and expand domestic and foreign direct investment; and

(f) Invest 10% of government expenditure in agricultural sector development.

USAID and other development partners have acknowledged that achieving the MDG and meeting Nigeria’s Vision 20:2020 require increases in the volume and quality of development assistance. They have collectively agreed to align assistance to the agriculture sector with the programs and priorities identified in the 5-Point Plan and to scale up assistance over the next 5 years to help meet the investment costs of the programs defined under the Plan. The African Union, ECOWAS, the private sector, and civil society have pledged to partner with and support the GON in developing and implementing Nigeria’s CAADP Compact investment plan.

Since 2000, USAID/Nigeria has significantly increased its Development Assistance to support the GON’s efforts to address the country’s poverty and food security concerns through investments in agricultural sector development. With development assistance resources and under various USG initiatives such as the Initiative to End Hunger in Africa (IEHA) and the 2009 Global Food Security Response (GFSR), USAID/Nigeria has supported a range of interventions and programs.

The first MARKETS activity was a particularly outstanding example of a program that fostered private sector-led agricultural productivity, advanced agriculture and trade policy reform, developed and deployed improved agricultural technologies, strengthened the capacity of public and private institutions, facilitated stakeholders consultations and advanced the regional (West Africa) and country CAADP Compact.

In FY 2010, as part of the USG’s Global Food Security Initiative (GHFSI), USAID/Nigeria further broadened its agriculture portfolio under the Agricultural Transformation Program (ATP). It supports the GON’s CAADP Compact and allows the GON to execute a CAADP Investment Plan to which it has committed itself. The ATP is a market-driven agricultural development program designed to reduce the levels of hunger and food insecurity in Nigeria.

C.3 CHALLENGES

The Agricultural Transformation Program will consolidate and build on previous interventions and successes, effectively complement investments from the GON and other development partners, and ensure that critical gaps are identified and addressed. MARKETS II is one of several activities USAID plans to use to support ATP’s goals and objectives (see Attachment J 3). MARKETS II will focus on a subset of current MARKETS activities; those activities which are directly concerned with the agricultural value chain. Activities currently being undertaken to improve the agricultural policy environment with the Federal Government of Nigeria particularly with the FMARD, those being undertaken within the trade and transport sector and those associated with supporting the very poor of Nigeria will be carried out as administratively separate activities. On the other hand, MARKETS II will need to strengthen relations with state governments as a necessary component of its value chain work (for a state funded fertilizer voucher scheme for example); but such relationships will need to be carefully justified on a case by case basis.3

In order to meet the expectations of USAID/Nigeria, the larger donor community, the GON and Nigeria’s poor, the contractor shall have to address carefully several concerns for a project of this type.

(a) It must avoid disruptions in ongoing demand driven private sector value chain activities being undertaken by MARKETS or other development partners in Nigeria. The set of materials describing these activities are hosted or linked at either the current MARKETS Web site www.nigeriamarkets.org or USAID Mission’s Nigeria Web site4. While MARKETS itself will close out all pending programs and document the activities undertaken, it will be no small task for MARKETS II to absorb lessons learned and continue executing the model in an orderly manner. However, there should be as little on-the-job learning as possible. An experienced and qualified MARKETS II team must be prepared to come on site in a timely manner, operating at full capacity.

(b) MARKETS initially approached the commodity value chain at the point of unfulfilled demand of established agro-processors. At project start, a study found that many established agro-processors were operating at well below full capacity. MARKETS struck agreements with these firms to guarantee purchases of smallholders and it was a relatively risk-free way to break into value chains characterized by a vicious cycle of low demand and low supply. While there are still many established agro-processors with whom MARKETS II may work, the “easy” deals are less than before. The MARKETS II team will need to consider a strategy that encourages more risky investments by established agro-processors to expand capacity. At the same time, it will need to provide an environment that promotes entry into the market of new operators.

(c) Despite declarations to the contrary, the proper participation of the public sector in the value chain is still not clear to many. The MARKETS model insists on the private sector as the primary driver for growth throughout the value chain. The public sector is not an efficient or effective operator, e.g., in fertilizer or seed distribution or in the running of agro-processing plants. To most independent observers the private sector is a better choice to carry out such activities. The public sector nevertheless has a crucial role in Nigeria in assuring the value chain’s effectiveness in achieving desired outcomes; without public support, the MARKETS model would quickly run into serious bottlenecks to expansion, especially at more mature stages

3 Except in those states that have formed a close partnership with USAID’s other projects. In those focus states, MARKETS is expected to work in close collaboration with state authorities and with other USAID activities.

4 http://nigeria.usaid.gov/index.php in the project’s life cycle. It needs to establish the regulatory and legal environment to reduce notoriously high transaction costs to starting a firm and doing business. The state governments need to establish an enabling environment that encourages the private sector to carry out large investments in roads, in water management schemes, and in ports; or where private sector involvement is not feasible, undertake those investments itself or in partnership with the private sector. It needs to regulate the market to protect the health and safety of consumers and workers.

It needs to build short- and long- agricultural support systems in state schools, colleges and universities and in state ministries, Local Government Authorities and water boards among others. MARKETS II will need to build and promote the case for an appropriate state government involvement in the value chain model and avoid the pitfalls of state-led agriculture development.

(d) The MARKETS II budget may not be commensurate with the task at hand repeated here.

MARKETS II is a USAID/Nigeria project designed to support the Government of Nigeria’s Millennium Development Goal to halve poverty by 20155. MARKETS II’s direct interventions will not achieve this goal even with a significantly higher budget than is being proposed currently. However, the MARKET’s private sector value chain driven demand model brand has become popular in Nigeria in government circles and among donor agencies. The FMARD has designed a program in its Five-Point Plan it calls MARKETS, which presumably will have a similar modus operandi. Under MARKETS II, the contractor shall combine its own direct efforts with others oriented specifically to leverage the model among donors and the Government. It will be judged in significant measure by the success it has in attracting additional funds that it could manage directly or through public-private partnerships and in promoting copy-cat operations.

C.4 SCOPE OF MARKETS II

(a) OBJECTIVE

The objective of the MARKETS II project is to support the U.S. Government goals and the GON’s Five Point Plan particularly with respect to promoting agriculture development through increased private sector participation and investment in the sector, raising income, increasing employment, attaining food security and reducing poverty. The project will build on the successes of its predecessor MARKETS project in addressing constraints along the agricultural commodity value chain, working with farmers to increase production and the quality of produce through improved post-harvest handling, linking farmers and agro-processors, providing incentives to adopt improved technology along the value chain, producing value-added products and identifying new markets.

(b) STRATEGIES

The consensus among many governments and donors is that a sustained reduction in hunger and food insecurity in Africa can best be achieved by promoting competitive market oriented agricultural growth. Competitive agriculture would increase the productivity and incomes of poor farmers, increase the sources of available protein, and lead to greater stability in price and

5 National Agricultural Investment Plan supply. At present, in the African context, such competitive markets are constrained, inter alia, by a lack of information, public infrastructure, basic inputs, and an appropriate policy and regulatory environment.

The target beneficiary of MARKETS II is the poor farmer, generally a family unit with ownership or usufruct of less than five hectares of arable land. Under MARKETS II, the contractor shall:

(1) carry out strategic interventions along the value chain for selected actual or potentially commercial commodities (cash crops) that will directly or indirectly benefit the poor farmer.

(2) support farmers’ access to inputs and technology; strengthen and expand private sector agribusinesses (agro-processers, contractors, transporters, traders and agricultural suppliers) and rural credit institutions; improve business linkages along the value chain, especially by fostering mutually beneficial partnerships between agribusinesses and farmers. Through these and similar interventions, MARKETS II will help poor farmer meet a growing demand for cash/staple crops.

(3) assist key public and private sector participants in commodity value chains with the support of other complementary ATP activities as defined in Attachment J 3. In the private sector these would include agribusinesses, financial institutions, traders, and shippers and farmers whether individuals, microenterprises, cooperatives or associations.

(4) support the public sector in particular state and regional authorities that intervene in activities affecting the agricultural sector.

(5) foster and actively participate in increased collaboration with partners including the World Bank, Africa Development Bank (AfDB), the UK Department for International Development (DFID), other donors, state and national public sector and regional organizations to assist the GON achieve its Millennium Development Goal of halving poverty by 2015.

(6) continue to make agro-processors central to the value chain and sector development to increase rural incomes and jobs. The program shall privilege gender, youth and the very poor by tailoring its interventions specifically to these cohorts.

All MARKETS II interventions aimed at increasing farm productivity shall:

(1) promote access to and application of environmentally sound resource management best practices in strict compliance with Sections 117 to 119 of the Foreign Assistance Act and Part 216 of the Code of Federal Regulations; and

(2) adopt technologies (e.g. water and soil management best practices; drought tolerant and pest/disease resistant crop varieties) that mitigate the negative consequences of climate change.

(c) GEOGRAPHIC SCOPE

The contractor shall carry out activities in the USAID/Nigeria focus states of Bauchi and Sokoto, one or two states of the Niger Delta region and additional states to reach a maximum of ten. This would be a reduction from the 23 states covered under the MARKETS Project. The Mission reserves the right to designate additional states or geographical regions for inclusion in MARKETS II as circumstances allow. Generally, additional states could be included if the agricultural value chains in those states are potentially viable and if the state governments are willing to provide the appropriate extension services to adequately support the development of those value chains. The contractor shall assist in preparing the technical details of a Memorandum of Understanding (MOU)6 to be signed between USAID and at least four states within the first six months of operations. Offerors should propose criteria for selection of states but final selection criteria and selected states will be decided in collaboration with USAID upon commencement of the project.

(d) SPECIFIC TASKS

MARKETS II is conceived of as a follow-on of the MARKETS project and shall continue MARKETS activities to build the eight value chains currently being supported: Rice, Cassava, Sorghum, Cowpea, Aquaculture, Sesame, Maize, Cocoa.

The contractor shall expand activities to new value chains as it refocuses and concentrates on selected states. In broad terms, the areas where MARKETS is carrying out activities and where MARKETS II is expected to continue such activities to include but not limited to:

(1) CLIN 001 - Producers’ Capacity Development and Organizations: The contractor shall build capacity of poor smallholders and support the establishment and strengthening of cooperatives and producer’s associations either directly or indirectly through intermediaries 7 . To meet USAID’s strategic objectives such capacity building programs should target especially issues of concern to rural women and the young that complement or reinforce formal educational programs. Programs to be provided would strengthen skills and competencies in financial and business management, acquiring market information, product marketing strategies, bulk procurement (from the international, regional, or national market) and distribution of critical inputs, consumer goods and services at wholesale price, and advocate to improve enabling policy environment.

The contractor shall strengthen the capacity of producers in application and use of improved technologies (e.g. improved seed varieties, tools and processing

6 MOUs with Federal, State or other GON agencies can only be signed by USAID, but the contractor may sign MOUs with private sector, NGOs, civil society or other non-government organizations.

7 MARKETS uses Train-the-Trainers type programs to reach large numbers of smallholders.

equipment) and best practices (e.g. soil and water management techniques, innovative harvesting and post-harvest handling, and strategies (integrated pest management techniques, marketing strategies). The contractor shall be working closely with local state government agriculture extension services staff in this project component.

Illustrative milestones and targets are provided below:

(i) Illustrative Milestones:

• Integration plan for gender and other vulnerable groups completed (year 1).

• Potential producer organization partners identified and preliminary capacity assessment conducted (year 1).

• Training of farmer organizations and training of trainers (years 1-5).

• At least six sustainable value chains established (year 5).

(ii) Illustrative Targets:

Indicators Illustrative Targets

Year 1 Year 2 Year 3 Year 4 Year 5 LOP Number of Jobs attributed to FTF implementation

16,000 18,000 20,000 25,000 21,000 100,000

Gross margin per unit of land or animal of selected product ($/ha) Maize Rice Sesame Sorghum Cassava Cowpea Cocoa Aquaculture

Number of individuals who have received USG supported short-term agricultural sector productivity or food security training (Disaggregated)

96,000

M= 71,000 F= 25,000

108,000

M= 80,000 F= 28,000

120,000

M= 90,000 F= 30,000

150,000

M= 111,000 F= 39,000

126,000

M= 94,000 F= 32,000

600,000

M= 440,000 F= 160,000

Number of producers organizations, water users associations, trade and business associations, and community-based organizations (CBOs) receiving USG assistance

4,000 4,500 5,000 6,250 5,250 25,000

Number of rural households benefiting directly from USG interventions

144,000 162,000 180,000 225,000 189,000 900,000

Value of incremental sales (collected at farm-level) attributed to FTF ($ million)

36.2 39.6 44 55 46.2 220

Increased yield of Selected Commodities (Kg/Ha) Maize Rice Sesame Sorghum Cassava

16% 20% 8% 8% 16%

18%

9% 9%

10% 10%

25%

13% 13%

21%

10% 10%

100%

50% 50%

(2) CLIN 002 - Agricultural Inputs: The contractor shall work with smallholders, producer associations including rural women’s associations, financial institutions both formal banks and microfinance NGOs, independent service contractors and agricultural suppliers, this component addresses access to basic farm inputs such as fertilizer, improved seed, manual and mechanical equipment and irrigation systems and in the case of aquaculture, fish feed.

The contractor shall continue the development of a private sector agricultural input marketing system to improve operational efficiency, reliability and viability. The contractor shall identify the respective roles of the public and private sectors, and establish a set of clear, well-defined interventions to support increased private sector activity.

With fertilizer subsidies firmly entrenched, the contractor shall clearly and continually demonstrate the effectiveness and economic viability of alternative private sector programs to inform future policy decisions on the subject. The contractor shall continue through MARKETS II the joint program with the Fertilizer Producers and Suppliers Association of Nigeria (FEPSAN) to enhance FEPSAN’s capacity to monitor quality and provide appropriate and targeted fertilizer use recommendations to smallholders at the same time expanding the successful fertilizer voucher program developed under MARKETS by the International Fertilizer Development Center (IFDC) to additional states in partnership with local Nigerian private fertilizer manufacturers. The contractor shall seek to shift responsibility for vouchers from the state governments to the private sector once fertilizer usage becomes an accepted practice among smallholders and therefore commercially viable. The Contractor shall seek additional opportunities along the fertilizer distribution chain and continue to carryout demonstrations of proper urea usage and finally, in collaboration with USDA commercialize soil testing and mapping for more effective fertilizer usage.

The Contractor shall continue to expand commercial seed production by smallholders, strengthen distribution systems, expand commercial seed markets, and improve farmer access to quality seeds and knowledge of best usage. The contractor shall strengthen the capacity of the private sector to produce and market certified seeds. The International Crop Research Institute (ICRISAT), through the West Africa Seed Alliance (WASA) program, will be an important partner in seed activities, specifically in strengthening dealer networks and creating an enabling environment for the promotion of private investment in the commercial seed sector.

The Africa Rice Center (WARDA) will be another important partner and will focus on promoting rice varieties that meet both farmer and end-user specifications. The public sector (national and international research institutions) will continue to be responsible for the development, production and supply of breeder and foundation seeds of improved varieties, unless there are viable private sector participants that are already providing this service. The contractor shall collaborate with other ATP implementers especially the USDA and other donors who will work with the GON to ensure appropriate/competent public sector institutions and effective and efficient institutional arrangement, business model and procedures shall be in place to implement seed certification processes.

• Survey conducted of agricultural input suppliers for various agricultural inputs (year 1).

• Memoranda of understanding signed with agricultural input suppliers (years 1-5).

• MOUs8 signed with states for fertilizer voucher program (years 1-4).

• Memoranda of understanding signed with commercial banks and micro-finance organizations for provision of agricultural credit (years 1-4).

• Private sector-led seed and fertilizer distribution institutionalized in six states (year 5).

Year 1 Year 2 Year 3 Year 4 Year 5 LOP

Number of MSMEs receiving business development services from USG assisted sources

96,000

108,000 120,000 150,000 126,000 600,000

8 MOUs with Federal, State or other GON agencies can only be signed by USAID, but the contractor may sign

(3) CLIN 003 - Technology Generation and Deployment: The contractor shall motivate a variety of development efforts to target food, beverage, and feed industries and staple food markets that offer the greatest return on investment for smallholders and agribusinesses in the value chains with which it works.

The contractor shall focus on transfer/dissemination of available improved varieties (e.g. disease and pest resistant, high yielding, drought tolerant, varieties with agro-processors and market-preferred quality traits) of target crops; sustainable soil and water management practices (e.g. drip irrigation, improved fallows, and inorganic and organic fertilizer application, integrated pest management techniques, small irrigation technologies and management). In addition, the contractor shall utilize and adopt other complementary investments in appropriate technology supported by international and national agricultural research systems and USAID/EGAT-supported and US land-grant universities-led Collaborative Research Support Program (CRSPs) (http://crsps.org/).

• MOUs9 signed with agricultural research institutions (years 1-4).

• Memoranda of understanding signed with state extension services (years

1-4).

• Technology packages prepared (years 1-4).

Year 1 Year 2 Year 3 Year 4 Year 5 LOP Target

Number of additional hectares under improved technologies or management practices as a result of USG assistance

32,000 36,000 40,000 50,000 42,000 200,000

Number of farmers and others who have applied new technologies or management practices as a result of USG assistance

72,000 81,000 90,000 112,500 94,500 450,000

Number of new technologies or

4 6 6 8 6 30

9 MOUs with Federal, State or other GON agencies can only be signed by USAID, but the contractor may sign management practices made available for transfer as a result of USG assistance Number of new technologies, products or management practices under field testing as a result of USG assistance

2 2 2 2 2 10

(4) CLIN 004 - Water and Soil Management: The contractor shall assist with the planning to rehabilitate small irrigation systems; train farmers in operation and maintenance of the systems; support the formation of irrigation user associations, support the diversification process by encouraging cereal crop production by smallholders; and promote the adoption of sustainable water and soil management techniques and stress tolerant plant varieties. The contractor shall support the development and dissemination of innovative water and soil management best practices and adoption of stress tolerant varieties in areas where the program will intervene to minimize the negative impact of climate change. The contractor shall ensure close collaboration with the World Bank-funded Fadama Project that successfully introduced small scale irrigation system in flood plains and lands with shallow aquifers in northern Nigeria.

• Survey of irrigation systems conducted (year 1).

• MOU10 signed with Fadama Project for collaboration on irrigation (year

1).

• Soil and water management best practices developed.

Year 1 Year 2 Year 3 Year 4 Year 5 LOP Number of farmers adopting improved soil and water management best practices

3,000

11,000

12,000

10,000

4,000

40,000

Number of hectares under improved irrigation as a result of project

3,000 8,000 12,000 8,000 4,000 35,000

10 MOUs with Federal, State or other GON agencies can only be signed by USAID, but the contractor may sign interventions (ha)

(5) CLIN 005 - Access to Finance: The finance needs of the rural sector are notoriously underserved by credit institutions. As the MARKETS II activities begin to gain momentum, it is likely to stimulate an even greater demand for credit as producers seek to ramp up productivity by buying increasing amounts of agricultural inputs, services or machinery. The Contractor shall work closely with banks and microfinance agencies to facilitate smallholders and agribusinesses’ access to commercial credit.