SOL-621-15-000035_M M.pdf

Questions Due: August 7, 2015 Proposals Due: September 9th, 2015 Past Performance Due: August 18, 2015

Subject: Request for Proposals (RFP) No. SOL‐621‐15‐000035 USAID/Tanzania

REF: Feed the Future Tanzania Horticulture Activity ‐ MBOGA NA MATUNDA

Dear Prospective Offerors:

The United States Agency for International Development (USAID) Mission in Tanzania is seeking proposals from responsible organizations interested in providing the services described in Section C of this solicitation for technical assistance and instructional materials targeted at increasing the productivity and profitability of horticulture value chains while integrating large numbers of women and youth.

USAID/Tanzania anticipates awarding one Cost-Plus-Fixed-Fee (CPFF) completion type contract as a result of this solicitation. The estimated cost range for this procurement is $20 to $24.9 million dollars. The anticipated period of performance is four years, subject to availability of funds.

The purpose of providing an estimated amount for the contract is to help Offerors develop their proposals. Offerors must propose costs that are reasonable and realistic for the work described herein and commensurate with their technical approach. Cost must be evaluated as part of a best value determination for contract award, including cost effective approaches to achieving the results.

This procurement is being conducted through full and open competition, pursuant to Part 15 of the Federal Acquisition Regulation (FAR). All types of organizations are eligible to compete.

All organizations responding to this solicitation, must submit their proposal in accordance with Section L of this RFP. Proposals must be submitted electronically to the USAID Tanzania contracting office mailbox at usaidtzco@usaid.gov. Late proposals will be handled in accordance with FAR 52.215-1, Alternate I.

This solicitation in no way obligates USAID to award a contract, nor does it commit USAID to pay any cost incurred in the preparation and submission of the proposal. Furthermore, the

SOL-621-15-000035

SOLICITATION, OFFER AND AWARD

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

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

ORDER UNDER DPAS (15 CFR 700)

6. REQUISITION/PURCHASE NUMBER

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

NEGOTIATED (RFP)

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1. THIS CONTRACT IS A RATED RATING PAGE OF PAGES

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INFORMATION

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

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

SOLICITATION

9. Sealed offers in original and

PART IV - REPRESENTATIONS AND INSTRUCTIONS

OTHER STATEMENTS OF OFFERORS

EVALUATION FACTORS FOR AWARD

INSTRS., CONDS., AND NOTICES TO OFFERORS

REPRESENTATIONS, CERTIFICATIONS AND

LIST OF ATTACHMENTS

CONTRACT CLAUSES

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

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M SPECIAL CONTRACT REQUIREMENTS

CONTRACT ADMINISTRATION DATA

DELIVERIES OR PERFORMANCE

INSPECTION AND ACCEPTANCE

PACKAGING AND MARKING

DESCRIPTION/SPECS./WORK STATEMENT

SUPPLIES OR SERVICES AND PRICES/COSTS

SOLICITATION/CONTRACT FORM

PART II - CONTRACT CLAUSESPART I - THE SCHEDULE

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11. TABLE OF CONTENTS

18. OFFER DATE17. SIGNATURE

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EXT.NUMBERAREA CODE

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

DATEAMENDMENT NO.DATEAMENDMENT NO.

and related documents numbered and dated):

amendments to the SOLICITATION for offerors

(The offeror acknowledges receipt of

14. ACKNOWLEDGEMENT OF AMENDMENTS

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

(See Section I, Clause No. 52.232.8)

13. DISCOUNT FOR PROMPT PAYMENT

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

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

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

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

OFFER (Must be fully completed by offeror)

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

28. AWARD DATE

(Signature of Contracting Officer)

27. UNITED STATES OF AMERICA

25. PAYMENT WILL BE MADE BY

26. NAME OF CONTRACTING OFFICER (Type or print)

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

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23. SUBMIT INVOICES TO ADDRESS SHOWN IN

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

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

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

AWARD (To be completed by government)

CODE

REQ-621-15-00004508/07/2015

X

TANZANIA/OAA

Acquisition and Assistance Office USAID/Tanzania 2140 Dar es Salaam Place Washington DC 20521-2140

Nya Kwai Boayue Contracting Officer USAID/Tanzania

1500 LT 09/09/2015

Nya Kwai Boayue nboayue@usaid.gov

PAGE(S)

Keisha Effiom

AUTHORIZED FOR LOCAL REPRODUCTION

Previous edition is unusable

STANDARD FORM 33 (Rev. 9-97)

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

ITEM NO. SUPPLIES/SERVICES QUANTITY UNIT UNIT PRICE AMOUNT

NAME OF OFFEROR OR CONTRACTOR

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CONTINUATION SHEET

REFERENCE NO. OF DOCUMENT BEING CONTINUED PAGE OF

SOL-621-15-000035

(A) (B) (C) (D) (E) (F)

Delivery Location Code: TANZANIA/LOCAL USAID/Tanzania 686 Old Bagamoyo Road, Msasani P.O. Box 9130 Dar es Salaam Tanzania

0001 MBOGA MATUNDA focuses on increasing the productivity and profitability of horticulture value chains while integrating larget numbers of owmen and youth. MBOGA MATUNDA investments are meant not only to expand the benefits from horticulture production and marketing but also impprove the nutritional status of Tanzanians espcially women and children.

OPTIONAL FORM 336 (4-86)

Sponsored by GSA

FAR (48 CFR) 53.110

NSN 7540-01-152-8067

SOL‐621‐15‐000035 Feed the Future Tanzania Horticulture Activity ‐ MBOGA NA MATUNDA

ACRONYM LIST

Acronym Definition

A&E Architecture & Engineering

ACP Africa-Caribbean-Pacific Countries

AGFIMS Agricultural Finance Markets Scoping

ASDP Agriculture Sector Development Program

AVRDC The World Vegetable Center

BCC Behavior Change Communication

BDS Business Development Services

BMGF Bill & Melinda Gates Foundation’s

CAADP Comprehensive African Agriculture Development Program

CDCS Country Development Cooperation Strategy

CESS Scottish Word for "Tax"

CIP International Potato Center

CLA Continual Learning Approaches

COLEACP Europe-Africa-Caribbean-Pacific Liaison Committee

CSO Civil Society Organization

DCA Development Credit Authority

DFID (UK) Department for International Development

DO Development Objective

EA East Africa

EU European Union

FACTS Foreign Assistance Coordination and Tracking System

FI Financial Institution

FSP Financial Services for the Poor

FTF Feed the Future

GAP Good Agricultural Practices

GDP Gross Domestic Product

GOT Government of Tanzania

HODECT Horticulture Development Council of Tanzania

HORTI Horticultural Research and Training Institute

IAGRI Innovative Agricultural Research Initiative

ICT Information Communications Technology

IEE Initial Environmental Examination Findings

IPM Integrated Pest Management

IR Intermediate Results

ISFM Integrated Soil Fertility Management

IWASH Innovative Water, Sanitation, and Hygiene

KLM Netherlands Airlines, Koninklijke Luchtvaart Maatschappij

LOP Life of Project

M&E Monitoring and Evaluation

MAFSC Ministry of Agriculture, Food Security and Cooperatives

MBOGA NA

MATUNDA

Horticulture Value Chain Activity/ Swahili Words for “Vegetables and Fruits

MBS Market Based Solutions Project

MCC Millennium Challenge Corporation

MELP Performance Monitoring Plan (USAID/Tanzania mission-wide)

MEP Monitoring and Evaluation Plan (Activity-level)

MFI Microfinance Institution

M-MONEY Mobile Money

MRL Maximum Residue Level

MRR Microenterprise Results Reporting

MSME Micro, Small, and Medium Enterprises

NARS National Agriculture Research System

NGO Non-Governmental Organization

OFSP Orange-Flesh Sweet Potatoes

PEPFAR President’s Emergency Program for Aids Response

PERSUAP Pesticide Evaluation Report and Safe Use Action Plan

PPP Public-Private Partnership

REACT Renewable Energy and Adaptation Climate Technologies

ROI Return on Investment

RTGA Rungwe Tea Growers Association

SACCO Savings and Credit Cooperative

SAGCOT Southern Agriculture Growth Corridor

SBBC Social and Behavior Change Communication

SERA Feed the Future Policy Project

SIM Subscriber Identity Module

SME Small and Medium Enterprise

SMS Short Message Service

SP Sub-Purpose

SPS Sanitary and Phytosanitary

SUA Sokoine Agriculture University

TAFSIP Tanzania Agriculture and Food Security Investment Plan

TAHA Tanzanian Horticulture Association

TAPP Tanzania Agricultural Productivity Program

TASTA Tanzania Seed Trade Association

TFNC Tanzania Food and Nutrition Centre

TMA Tanzania Meteorological Agency

TZ Tanzania

USAID United States Agency for International Development

USDA US Department of Agriculture

USDOI US Department of Interior

USFS US Forest Service

VC Value Chain

VICOBA Village Community Bank

VISTA Viable Sweet-Potato Technologies in Africa

WEAI Women’s Empowerment in Agriculture Index

ZOI Zone of Influence

SECTION B– SUPPLIES OR SERVICES AND PRICE/COSTS

B.1 PURPOSE

The purpose of the Feed the Future Tanzania Horticulture Activity - MBOGA NA MATUNDA is to increase the competitiveness and inclusiveness of the horticulture subsector, while improving the nutritional status of Tanzanians by: (1) scaling improved technologies and practices that lead to the increased productivity of smallholders, including large numbers of women and youth, in targeted commodities; (2) scaling market system models able to reach large numbers of direct and indirect beneficiaries, including vulnerable populations, while increasing trade for targeted commodities; and (3) strengthening the overall capacity of the industry.

B.2 CONTRACT TYPE

This is a Cost-Plus-Fixed-Fee (CPFF) completion type contract. For the consideration set forth below, the contractor must perform the tasks required in Section C (Statement of Work) and provide all deliverables and/or outputs as described in Section F in accordance with the performance standards specified.

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

(a) The estimated cost for the performance of the work required hereunder, exclusive of fixed fee, is to be determined (TBD). The fixed fee is TBD. The estimated cost plus fixed fee is TBD.

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

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

B.4 BUDGET AND CEILING PRICE

Cost Elements by Sub-purpose

Year 1 Year 2 Year 3 Year 4 Total

Sub-purpose 1 Sub-purpose 2 Sub-purpose 3

Other Direct Costs Subtotal Direct Costs Indirect Costs

Total Estimated Cost

Fixed Fee Total Cost plus Fixed

Fee

The contractor must not be paid any sum in excess of the ceiling price.

The inclusion of any costs in the above budget does not obviate the requirement for prior approval from the Contracting Officer of cost items designated as requiring prior approval (see FAR §52.216-7 “ALLOWABLE COST AND PAYMENT”); nor does it constitute a determination of allowability by the Contracting Officer of any item of cost, unless specifically stated elsewhere in this contract.

B.5 INDIRECT COSTS

For the Prime Contractor:

Pending establishment of revised provisional or final indirect cost rates, allowable indirect costs must 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/ 1/ 2/ 2/ 2/ 2/

1/Base of Application:

Type of Rate:

Period:

2/Base of Application:

Type of Rate: Period:

For Each of the Major Subcontractor(s)*

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:

Period:

3/Base of Application:

Period:

*“Major Subcontractors” are those subcontractors whose proposed cost exceeds 15% of the total estimated contract cost.

B.6 COST REIMBURSABLE

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

(b) In addition, the requirement and conditions concerning estimated cost and funding apply as detailed in FAR 52.232-22, LIMITATION OF FUNDS.

END OF SECTION B

SECTION C – STATEMENT OF WORK

C.1 INTRODUCTION

The United States Agency for International Development (USAID) activity entitled Feed the Future Tanzania Horticulture Activity - MBOGA NA MATUNDA (“Vegetables and Fruits” in Swahili) - is part of the US Government’s Feed and Future (FTF) Initiative in Tanzania. The goal of the FTF Initiative is to “sustainably reduce global poverty and hunger.” USAID/Tanzania’s program under FTF must: (a) increase agriculture productivity; (b) maintain the natural resource base and promote adaptation to climate change; (c) stimulate the private sector; (d) increase trade; (e) support policy reforms and good governance; (f) ensure underserved groups1 benefit from growth; and (g) expand knowledge and training by supporting research and development.

MBOGA NA MATUNDA, itself, must focus on increasing the productivity and profitability of horticulture value chains, while integrating large numbers of women and youth, defined as ages 18-35. USAID/Tanzania has set a high target for inclusion: beneficiaries should include 60% women and 30% youth as activity beneficiaries. MBOGA NA MATUNDA must achieve these objectives by: (1) scaling improved technologies and practices that lead to improved productivity for women, men, and youth; (2) scaling market system models that serve as platforms for technology scaling, while enabling women and youth, as well as men, to access the resources they need to improve productivity and profitability; and (3) strengthening the overall capacity of the industry, including the enabling environment for incentivizing investments all along the value chain and among poorer populations often marginalized from economic growth opportunities. MBOGA NA MATUNDA investments are meant not only to expand the benefits from horticulture production and marketing, but to also improve the nutritional status of Tanzanians, especially women and children.

Given the dual objectives of MBOGA NA MATUNDA – competitiveness and inclusiveness, the Contractor must implement effective scaling approaches that lead to the adoption of technologies and practices by large numbers of direct and indirect beneficiaries (women, men and youth).

MBOGA NA MATUNDA requires a range of competencies to address the needs of a broad spectrum of actors from vulnerable populations, including women and youth, to the exporters and/or buyers able to invest and drive change in the subsector. At the same time, the contractor must ensure that inclusion is integral to economic growth interventions, rather than stove-piped and/or allocated only to a separate consortium member and separate activities.

MBOGA NA MATUNDA represents one of a number of activities under USAID/Tanzania’s FTF program. It complements infrastructure activities and rice and maize value chain development activities. USAID will integrate management of the policy and value chain

1 Including excluded and vulnerable groups in targeted areas.

activities (focused on maize, rice, and horticulture) in order to craft a policy agenda in collaboration with the Government of Tanzania (GOT) and with input from the private sector, including smallholders. MBOGA NA MATUNDA will include support to the key institutions (farmer led, industry led, and/or sector led supporting the development of the horticulture industry.

C.2 BACKGROUND

C.2.1 Economy

Tanzania, a country of 49 million, posted an impressive ten-year average economic growth of

6.96 percent (4 percent in per capita terms) from 2001 to 2010, with a strong growth of 7 percent in 2014, according to the African Economic Outlook of 20142. This 7 percent growth rate is driven largely by communications, transport, financial intermediation, construction, agriculture, and manufacturing. In the medium term, growth must be supported by the ongoing investments in infrastructure and the projected good weather conditions. Also, medium-term growth projections are backed by continued investments in the recently discovered natural gas reserves in Tanzania and the expansion in public investments (including the ongoing construction of USD

1.2 billion gas pipeline from Mtwara to Dar es Salaam), as well as the related investments aimed at stabilizing power generation in the country. Nonetheless, Tanzania’s growth has not been inclusive. Widespread poverty persists with 68 percent (2007) of Tanzania’s population living below the extreme poverty line of $1.25 per day.3 Tanzania’s GDP growth since 2000 has been hardly perceptible among Tanzania’s predominantly rural (73 percent) population.4 Inclusive broad-based growth is stymied by: (a) low productivity growth in labor intensive sectors (agriculture employs 75 percent of total national employment, but the sector grew just 4 percent per year over the past decade) and (b) an unchanging and high population growth rate.5 Forty-four percent of Tanzania’s current population of 49 million is under 15 years of age. At the current growth rate, Tanzania’s population is projected to reach 70 million by 2025.6 In addition, women make up fifty percent of the population, yet gender inequities continue to persist: salaries paid to women are on average 63 percent lower than those paid to men, and when women own businesses, they make 2.4 times less profit than men.7

2 http://www.africaneconomicoutlook.org/en/ 3 Ibid.

4 Tanzania’s Long Term Perspective Plan recognizes the average growth rate did not have a significant impact on poverty reduction.

5 Tanzania Demographic and Health Survey. 2010.

6 Tanzania in Figures, 2012, NBS; projection figure from TZ’s Population Planning Commission, 2007.

7 World Bank, 2012.

Agriculture is the mainstay of the economy, contributing close to 26 percent of GDP and employing 75 percent of the labor force, with women contributing more than 75 percent of the labor.

C.2.2 Agriculture, Nutrition and Food Security

Growth has also had limited impact on nutrition, especially among children, 43 percent of whom are stunted. In some regions including those where USAID is focused, stunting can reach nearly 50 percent, with maternal anemia rates hovering around 40 percent. Vitamin A and iodine deficiencies are also prevalent. Chronic malnutrition affects four of out every 10 children nationwide8 resulting in poor cognitive and physical development, which costs Tanzania 2.65 percent of its GDP.9 The nutritional status of households is intricately connected to economic growth and food security, both as an input to and potential outcome of economic growth and agricultural development. Evidence shows that agricultural development and economic growth do not necessarily lead to proportionate improvements in nutrition, especially for vulnerable groups such as young children.10 Yet nutritional improvements represent an important input to improving economic productivity.

Household production for the household’s own consumption is the most fundamental and direct pathway by which increased production translates into greater food availability and food security. Micronutrient rich foods such as fruits and vegetables can close dietary gaps in iron, zinc, and vitamin A. Moreover, the income derived from sale of surplus production provides means through which additional nutrient-rich foods such as dairy, eggs, fish, and meat can be purchased.11

Most farmers only cultivate a maximum of two hectares—even if they have access to more land;

without capital and labor they are unable to get the input needed and/or improve the land. For female-headed households and youth, limited or no access to land, finance, marketing, processing, transportation, and training opportunities further limits productivity. Women are estimated to own only 19 percent of registered land and their plot sizes are typically less than half the size of men. An estimated 31 percent of crops are lost to pests, diseases, poor post-harvesting practices, and lack of cold storage. Only 13 percent of farmers perform some kind of sorting or removing of rotten or misshaped fruits and vegetables, which has quality-reducing

8 National Bureau of Statistics. 2010. Tanzania demographic and health survey 2010. Tanzania.

9 USAID. 2011. Feed the future Tanzania FY 2011-2015 multi-year strategy.

10 Ecker, O., Breisinger, C. and Pauw, K., 2011. “Growth is good, but it is not enough to improve nutrition.” Conference Paper 7 for 2020 Conference: Leveraging Agriculture for Improving Nutrition and Health, Feb. 10-12, 2011; New Delhi, India.

11 World Bank. 2008. Agriculture to nutrition: Pathways, synergies, and outcomes.

ripple effects throughout the value chain.12 Climate change could pose serious threats to subsistence farmers, who rely primarily on rain-fed agriculture.

C.2.3 Government of Tanzania Priorities

The Government of Tanzania (GOT) has several initiatives to improve agriculture, including horticulture, in the country. The Agriculture Sector Development Plan (ASDP) and soon to be approved ASDP II identify five key operational components as a focus for implementation: (1) policy, regulatory, and institutional arrangements; (2) agricultural services (research, advisory and technical services, and training); (3) public investment; (4) private sector development, market development, and agricultural finance; plus (5) the cross-cutting issues of gender mainstreaming and implementation of the land acts. They are to be implemented at the district and national level.

The principles of ASDP include increasing control of resources by beneficiaries, pluralism in service provision, results-based resource transfers, integration with government systems, and national scope.

The GOT is also committed to addressing food security through its Tanzanian Agriculture and Food Security Investment Plan (TAFSIP) that coordinates all donor and private sector engagement in the country. TAFSIP Program 1 aims to increase agricultural production, food, and nutrition security by improving crop production and productivity, increasing production and productivity for livestock, fisheries and aquaculture, improving food and nutrition security, and enhancing disaster risk management and preparedness. TAFSIP Program 2 aims to expand agro-processing and value addition through improving postharvest product management, enhancing agro-processing, preservation and value addition, and transformation and diversification of agricultural products.

TAFSIP includes a strong focus on public-private partnership in the Southern Agricultural Growth Corridor of Tanzania (SAGCOT), which is a public-private partnership between the Government of Tanzania, donors (USAID, Norway), and private companies (General Mills, Yara International, Unilever, Syngenta, DuPont, Land ‘O Lakes, Monsanto, and SAB Miller). The SAGCOT promotes “clusters” of profitable agricultural farming and services businesses, with major benefits for smallholder farmers and local communities.

The development of the National Horticulture Development Strategy 2012-2022 developed to integrate with and support existing GOT policies and strategies, including Kilimo Kwanza, the ASDP, National Export Strategy, Tanzania Trade Integration Strategy, and others. ASDP

12 de Putter, H., van Koesveld, M.J. and de Visser, C.L.M., 2007. Overview of the vegetable sector in Tanzania. AfriVeg Report 1. The Netherlands.

contributes to the development of Tanzania’s Comprehensive African Agriculture Development Program (CAADP), designed to stimulate economic growth and reduce poverty in African countries. Food security is paramount in Tanzania’s development agenda and implementation and monitoring plans are in place through ASDP to link results to investments. There is a joint monitoring plan linking USG’s food security initiative to CAADP and ASDP.

The National Horticulture Development Strategy was led by the Horticulture Development Council of Tanzania (HODECT), whose members come from public and private organizations.

HODECT used a broad- based participatory approach to develop the strategy that included a wide range of public and private stakeholders: producers, exporters, processors, industry associations such as the Tanzanian Seed Trade Association (TASTA), Tanzanian government agencies and ministries, and development partners. The resulting strategy outlines the industry’s approaches to address the constraints in the sector and emphasizes the need to increase awareness of government and of consumers of the importance of horticulture for economic growth, poverty alleviation and nutritional benefits for Tanzanian consumers.

C.2.4 USAID/Tanzania’s Country Development Cooperation (CDCS) & Feed the Future (FTF) Strategies USAID/Tanzania’s Country Development Cooperation Strategy (CDCS)13 – in partnership with local stakeholders in government, civil society, and the private sector, as well as U.S.

Government agencies and other U.S. and international stakeholders – aims to assist Tanzania to move toward a broad socio-economic transformation by: (1) empowering women and youth; (2) achieving inclusive, broad-based and sustainable growth in key economic sectors; and (3) improving governance. These three Development Objectives (DOs) are designed to achieve the CDCS Goal: “Tanzania’s socio-economic transformation toward middle income status by 2025 advanced.”

The CDCS states that Tanzanian women and youth are the most marginalized and underutilized segments of the population and must have greater access to, and control of, key resources and opportunities. It posits that when women are empowered to realize their full potential to contribute to economic growth and social progress, the individual woman, her children, and the community benefit and thrive.

In order to achieve and sustain inclusive, broad-based economic growth, key labor-intensive sectors of the economy must grow at a faster pace, namely agriculture, and natural resources/tourism. Moreover, the binding constraints to private sector investment in these labor-intensive sectors must be overcome, particularly the lack of access to reliable sources of electricity and the lack of rural ‘market’ roads. These interventions and investments are the keys to alleviating extreme poverty for the vast majority (68%) of the country’s population. Third, 13 http://www.usaid.gov/sites/default/files/documents/1860/CDCS%20Tanzania%20Final.pdf improving government’s ability to deliver quality services and citizen engagement with government is critical to achieving transparent, accountable, democratic governance; controlling corruption; and mitigating conflict.

USAID/Tanzania’s CDCS includes the following Development Objectives (DOs) and Intermediate Results (IRs):

DO 1: Tanzanian women and youth empowered, supported by 3 Intermediate Results

IR 1.1 Gender equality increased

IR 1.2 Health status improved

IR 1.3 Lifelong learning skills improved

DO 2: Inclusive broad-based economic growth sustained

IR 2.1 Binding constraints to private sector investment reduced

IR 2.2 Agricultural productivity & profitability increased in targeted value chains

IR 2.3 Stewardship of natural resources improved

IR 2.4 Unmet need for family planning reduced

DO 3: Effective democratic governance improved

IR 3.1 Citizen engagement made more effective

IR 3.2 Government delivery of services improved

IR 3.3 Government accountability increased

The new Feed the Future Tanzania Horticulture Activity - MBOGA NA MATUNDA, must directly support DO 2, specifically to IR 2.2 (agricultural productivity and profitability increased in targeted Value Chains), and sub-IRs 2.2.1 and 2.2.2 (adoption of new technology or management practices, and output and sales increased). The activity must focus on horticulture;

an important and high-value subsector within the agriculture sector which has the greatest opportunity to accelerate both on and off-farm job creation in rural areas, where the majority of Tanzanians (particularly women and youth) live and earn their livelihoods. The World Bank stated: “growth in GDP that originates in agriculture is at least twice as effective in reducing poverty as growth that originates in other sectors."14 Dramatically increasing agricultural productivity, improving access to fair markets, and providing support for the development of agribusiness and off-farm enterprises in targeted rural areas will be primary focus areas of IR 2.2.

Gender equity (IR 1.1) and increasing economic opportunities for women and youth will be pivotal to MBOGA NA MATUNDA activity results—this through its work with farmer groups including women’s and youth groups, as well as micro, small, and medium enterprises (MSMEs aimed at improving productivity and profitability all along the value chain and throughout the market system for women and youth). As such, cross-fertilization of ideas, analyses, and best practices between MBOGA NA MATUNDA and IR 1.1, “Gender equality increased”, that can effectively measure outcomes and impacts of women and youth empowerment will become essential. MBOGA NA MATUNDA activities must contribute to nutrition (under IR 1.2 improved health status) through advancing the diversification of household diets with vegetables, including traditional African vegetables, and through behavior change communication to increase adoption of improved nutrition practices.

Links to IR 2.1 “Binding constraints to private sector” will help foster public and private partnerships and strengthen the private sector actors’ ability to engage government and advocate for change. MBOGA NA MATUNDA must reduce the binding constraints to private sector investment by strengthening the capacity of the private sector and improving communication and coordination among private sector actors and with government and civil society. MBOGA NA MATUNDA must also contribute to IR 2.3 through the promotion of flexible packages of technologies that promote sustainable natural resource management and increased resiliency of farming systems in the face of climate change. USAID support to DO 3 will be highly complementary to MBOGA NA MATUNDA through improving government services and transparency, thus improving the operating environment for development.

MBOGA NA MATUNDA also supports elements of USAID/Tanzania’s Feed the Future Multi- Year Strategy, which aims to increase horticulture production by 20 percent. For example, the activity’s purpose to increase the productivity and profitability of the horticulture sector will contribute to the growth of the sector and increased Agriculture GDP growth (FTF high-level objective 1), while also improving nutritional status, especially of women and children (FTF high-level objective 2) via increased consumption of nutrient-rich horticulture commodities as the market for them grows in Tanzania.

14 World Development Report. 2008. Agriculture for Development Report.

C.2.5 Rationale for MBOGA NA MATUNDA

Horticulture is the fastest growing agricultural sub-sector (averaging 8 percent growth per annum) and annual foreign exchange earnings exceed $350 million (USD). Large areas with rich soils, abundant rainfall, and varied climates give Tanzania the potential for the production of a variety of horticultural crops, particularly in the northern highlands of Arusha, Kilimanjaro, and Manyara, Zanzibar, and the Southern Agricultural Growth Corridor of Tanzania (SAGCOT) that includes the southern highlands of Mbeya, Iringa, and Morogoro. A growing consumer demand from an ever-increasing urban population, growing tourism sector, and new opportunities for trade of horticultural products in the Middle East, East Africa, and beyond—especially during off-season in other producing countries—provide strong growth prospects. Studies on traditional African vegetables (e.g., amaranth, African eggplant) show an especially strong demand for these crops in domestic markets.15

The potential of horticultural crops and products to improve livelihoods and generate income is well established. Research shows that horticulture can have higher impact on poverty alleviation than cereal production—through job creation and increased incomes—where there is a high labor to land ratio.16 Efficient and well-integrated value chains can create both on-farm and off-farm employment opportunities and promote overall economic growth with strong multiplier effects in rural and urban areas. Fruit, vegetable, and root crops provide diverse food, reduce micronutrient deficiencies, and improve food security through income generation.17

Horticulture has the highest potential of engaging women farmers and home perma-gardening (intensified home gardens) for diet diversification and it is already seen largely as a women’s crop in Tanzania. Many horticulture crops are less labor intensive and have more flexible cultivation time, allowing for important household/family tasks like breastfeeding, cooking, and water fetching. Women also have greater opportunities for control over the marketing of horticulture crops, which could have affects in other areas. Research shows that women are more likely than men to invest in their children’s health and nutrition, and the income and resources that women control have disproportionately strong effects on health outcomes generally. Women who are reached by agricultural programs that relay information on nutrition issues appear to be particularly effective in delivering improved nutrition outcomes.18

While domestic and regional markets are large for horticultural products, farmer access to these markets remains plagued by an array of constraints. The disorganized and informal nature of

15 P. Amaza. 2010.An analysis of traditional African vegetables and sweetpotato consumer demand in Kenya and Tanzania. Arusha, Tanzania:

World Vegetable Center (AVRDC).

16 K. Weinberger and T. Lumpkin. 2005. Horticulture for poverty alleviation: The unfunded revolution. Taiwan: World Vegetable Center (AVRDC) Working Paper 15.

17 World Bank. 2008. Agriculture to nutrition: Pathways, synergies, and outcomes.

18 World Bank. 2008. Agriculture to nutrition: Pathways, synergies, and outcomes.

horticultural value chains prevents actors from investing in upgrading19 the value chain, receiving and sharing information and/or knowledge on innovations, and establishing tighter vertical and horizontal linkages to increase efficiency. Moreover, the low priority accorded to horticulture research has resulted in little use and development of improved varieties, fertilizers, and pesticides. Low productivity among smallholders limits production and product diversification, and weak public sector extension support cannot effectively transfer basic business skills or improved technologies from research efforts to farmers. Women face even tougher challenges than men: access to land and finance is more limited and it is often more difficult for women to access inputs or get products to market.

Furthermore, a weak private agribusiness sector cannot effectively organize farmers and farmer groups to obtain a critical mass of quality product to take advantage of economies of scale necessary to increase competitiveness. There is a lack of private investment in the sector for product development, processing and supply chain logistics. Where success has been achieved in penetrating international markets, export quantities remain low because exporters depend on relatively few products. Poor road networks make transportation expensive and increase post-harvest losses. There is also a lack of private sector-driven market support services such as market information, storage, and commodity brokerage. Actors throughout the value chain face multiple taxes, cesses, and VAT. Even where policies have lifted or reduced these, implementation at the field level remains problematic. Lack of knowledge of international food quality and safety standards and application of sanitary and phytosanitary (SPS) measures constrain exports and reduce Tanzanian competitiveness in regional, global and even domestic horticultural markets.

In a 2011 survey of the agriculture sector, producers perceived the following obstacles to growth:

access to markets (69.5 percent); access to credit (60.9 percent); access to water (47.1 percent);

lack of labor (28.8 percent); access to information (26.9 percent); access to land 11.5 percent);

and access to inputs (10.2 percent). For input providers, the cost of transport (51.4 percent) and lack of transport (17.1 percent) were the primary chief obstacles. For processors, the primary obstacle was getting enough product: 66.6 percent for those in rural areas and 60.4 percent in urban areas.20

Due to the complexities of the obstacles within the horticulture subsector, there are significant risks in making investments at every level of the value chain. To illustrate, without access to

19 Upgrading refers to improving quality and efficiency.

20 The Agriculture Finance Markets Scoping (AgFiMS) survey was conducted by Yakini Development Consulting in 2011. Results include only agribusinesses with annual turnover of USD $600 or more or more than 5 acres in use for producers and processors and service providers with turnover of USD $1500 per annum. Only 25.5% of producers selling more than they consumed (489,850 out of 1,921,150) qualified for this survey. The survey sample included 3,734 producers from around the country, only 13% of whom were women. Based on other studies, USAID would expect that had more women been included (particularly those below the threshold for this study), the figures for access to land and lack of labor as perceived obstacles to growth would be higher.

finance to purchase irrigation systems, smallholders will continue to rely solely on rain-fed production, making investments in improved seeds, fertilizers, and pesticides risky. Smallholders mitigate these risks by keeping production costs low, even if yields will remain low in the best of years. Due to the higher potential returns offered by horticulture, small incremental investments adjusted to changing risks may be a feasible strategy for smallholder upgrading. Larger investments further up the value chain (such as cold storage infrastructure, transportation, and sorting and packing facilities) require sufficient volumes of produce (i.e. reach critical mass) to be feasible. It will be important to identify strategies and/or appropriate technologies for increasing volumes to the point where investments such as cold storage infrastructure become profitable. Similarly, the project might buy down the risks of “first movers” by investing in “common goods,” such as new seeds, fertilizer, and/or pesticide approvals.

As the FTF Initiative enters its fourth year, there is an imperative to scale successes. MBOGA NA MATUNDA will scale the successes of TAPP to increase outreach to larger numbers of direct beneficiaries. It will achieve scale by leveraging promising market system models to reach an exponential number of indirect beneficiaries. Joint efforts with the International Potato Center (CIP) focused on scaling the adoption of orange-flesh sweet potatoes (OFSP), USAID’s Horticulture Innovation Lab, GOT’s Tanzania Food and Nutrition Centre (TFNC) and a whole range of development partners and civil society organizations will intensify efforts aimed at improving nutrition in the ZOI.

C.3 STATEMENT OF WORK

C.3.1 Mboga Na Matunda Purpose

The purpose of the Feed the Future Tanzania Horticulture Activity - MBOGA NA MATUNDA is to increase the competitiveness and inclusiveness of the horticulture subsector, while improving the nutritional status of Tanzanians by: (1) scaling improved technologies and practices that lead to the increased productivity of smallholders, including large numbers of women and youth, in targeted commodities; (2) scaling market system models able to reach large numbers of direct and indirect beneficiaries, including vulnerable populations, while increasing trade for targeted commodities; and (3) strengthening the overall capacity of the industry.

C.3.2 Theory of Change and Development Hypothesis for MBOGA NA MATUNDA

Theory of Change Market systems21 are key platforms for improving the productivity and profitability of large numbers of smallholders. While push-pull approaches - within the context of market systems – are designed to assist the very poor to acquire the assets needed to participate and compete in markets. Pull approaches involve tailoring inputs, services, and market-linkage tactics to the

21 https://www.microlinks.org/sites/default/files/resource/files/Market_Systems_Framework.pdf needs and resources of marginalized groups, including women and youth, making them within their reach.

Market system models leverage networks of inter-connected actors and relationships in order to reach large numbers of beneficiaries both directly and indirectly. The catalyzing nature of market-system interventions creates a rippling effect that expands impacts beyond direct assistance. Moreover, the market system – which links smallholders (men, women and youth) to improved inputs, financing to purchase inputs, knowledge related to the effective use of inputs, and buyers in output markets – is the foundation or sine qua non for improved productivity and profitability.

Nutritive-sensitive interventions22 and women’s empowerment improve the nutritional outcomes of value chain or market systems development. Improved nutritional outcomes from horticulture value chain development can be reached by targeting nutrition-rich crops (including horticulture) within the context of agricultural market systems, using behavior change communication and education to promote consumption of nutrient-rich crops, enhancing the availability of these crops in local markets, and measuring both intermediate outcomes and higher level results to track progress

Through MBOGA NA MATUNDA activities, the Contractor must help reach zonal-wide scale with nutrition-sensitive improvements in smallholder productivity and profitability, by using principles of sequencing and layering of:

(1) innovative business models for input supply (e.g., customer loyalty, agents linked to agro-dealers, e-warehouse input purchasing systems);

(2) innovative models for linking smallholders to output markets;

(3) various financial products, including insurance and digital finance;

(4) other supporting services, i.e., weeding, spraying, irrigation, and extension;

(5) sustainable systems for market information;

(6) interventions to ensure the inclusiveness of women and youth; and

(7) nutrition-sensitive interventions

Development Hypothesis

To sustainably develop and scale the competitiveness and inclusiveness of horticulture value chains, the market system must be able to grow, upgrade, and adapt to changes (opportunities

22 http://agrilinks.org/sites/default/files/resource/files/Nutrition%20Sensitive%20Agriculture%20December%207%20draft.pd and threats) on its own. This requires not only developed service markets (extension, BDS, finance, etc.) to enable upgrading but also incentives—including reduced risks as well as benefits— farmers and businesses to invest. Applying the principles of nutrition-sensitive agriculture and ensuring the inclusion of women and youth, using ‘smart subsidies’ that do not create dependencies or undermine markets, will broaden and deepen the impacts of MBOGA NA

MATUNDA.

C.3.3 Approach

A value chain approach

The MBOGA NA MATUNDA activity must use a value chain approach in scaling technologies, practices, and market system models.23 The approach begins with an understanding of the market system in its totality: (1) the firms and actors that operate within a value chain—from input suppliers to buyers, (2) the strength and efficiency of vertical and horizontal linkages between actors, including levels of cooperation and competition, (3) the availability and affordability of supporting services provided through markets, including technical, business and financial services, and (4) the incentives created by the formal and informal enabling environment in which each value chain operates. Such a broad scope is needed to understand the principal constraints and underlying causes to competitiveness.

A value chain approach takes a market system perspective, with a focus on the pivotal role of end market demand and the identification of leverage points, where interventions can catalyze the dissemination of innovations like improved technologies, practices, and innovative business models. Interventions seek to encourage the adoption of innovations at the firm and/or farmer level, innovative business models at the market system/value chain level, and create a more broad-based distribution of benefits all along the chain, including at the level of the producer/smallholder.

Facilitation-an approach to implementing value chain development is key to achieving the sustainability of these outcomes. Facilitation24 aims to stimulate systemic change without taking a direct role in the market system. It involves working through market participants and ensuring that they are integral to the change process.

Key features of this implementation approach by the Contractor must include:

Ensuring an enabling environment that incentivizes investment and upgrading Using end markets to drive transformation, while mitigating risks

23 See www.microlinks.org/vcwiki for definition and explanation of value chain approach and its key features.

24 The principles of facilitation are included in Annex 2.

Transforming relationships (e.g. from mistrust to trust) to allow for effective cooperation and competition. Developing new relationships that are commercial in nature for women and youth that promote their inclusion in the value chain

Targeting leverage points in the market and production systems that catalyze wider spillover effects, thereby spreading innovations to both direct and indirect beneficiaries

Empowering the private sector to innovate and invest in supply chains (i.e., key inputs, post-harvest infrastructure, logistics, research, etc.) made up of large numbers of firms and/or farmers

Ensuring ownership of local actors in value chain upgrading and development Continuous and collaborative learning that enables adaptations in activity design throughout implementation

Local systems development

The Contractor must employ an approach that leverages the resources, relationships, and investments of the local system, including the private and public sectors and civil society.

Rather than providing services directly, the Contractor must use a facilitation approach to leverage the market system (and the local actors that make up this system) and increase smallholder productivity and market system profitability for reaching MBOGA NA MATUNDA activity results. This approach will aim to catalyze a locally driven process of innovation adoption based on the incentives of local actors.

To foster the sustainable competitiveness of the horticulture subsector, the Contractor must improve the ability of local actors and local systems to respond to end market opportunities and manage risks. Furthermore, to ensure sustainability under MBOGA NA MATUNDA, the Contractor must coordinate with and mentor local organizations to become centers of excellence in market system facilitation, policy advocacy, and industry capacity development. TAHA is an example of a key player in the local market system, though other organizations can also be developed to play a critical role in policy advocacy, addressing “common good” constraints (air and sea freight, market information, and market development) facing the industry.

Box 1: Illustration of Facilitation to achieve Systemic Change

Although it is rarely possible to work with all firms in a system, the impact of interventions should reach beyond a few lead firms. Interventions should stimulate changes in the way the system works as a whole. For example, the SDCAsia’s B- ACE project changed the industry norms for production and handling of cardava banana in Mindanao, the Phillipines, raising productivity and quality standards.

SDCAsia promoted widespread adoption of new production and quality control behaviors by disseminating information in various ways—such as comic strips, festivals, fairs, field-based learning and classroom training. They also created a core group of early adopters to demonstrate new behaviors. For example, working with vendors to improve their stalls in the local market led to investments by others in more attractive and cleaner stalls, and eventually to adoption of good food handling and hygiene practices.

Measuring Participation

Because the value chain approach involves intervening so as to catalyze scaling and spillover effects, activity participation and outreach includes actors beyond those with whom the activity has direct contact.