PRIVATE_SECTOR_DRIVEN-AG_GROWTH_RFP.pdf

U.S. AGENCY FOR INTERNATIONAL DEVELOPMENT

ACQUISITION AND ASSISTANCE OFFICE

2657 AVENUE DE LA GENDARMERIE, KACYIRU

KIGALI, RWANDA

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

SEE COVER PAGE

6. REQUISITION/PURCHASE NUMBER

REQ-696-14-000009 SEALED BID (IFB)

NEGOTIATED (RFP)

7. ISSUED BY CODE 8. ADDRESS OFFER TO

U.S. AGENCY FOR INTERNATIONAL DEVELOPMENT

ACQUISITION AND ASSISTANCE OFFICE

2675 AVENUE DE LA GENDARMERIE, KACYIRU

KIGALI, RWANDA

(If other than Item 7)

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

9. Sealed offers in original and _five_ copies for furnishing the supplies or services in the Schedule will be received at the place specified in Item 8, or if hand carried, in the depository located in N/A until 4:00 p.m. (COB Rwanda). local (Kigali) time April 16, 2014 .

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

gkyazze@usaid.gov AREA CODE

250-252

NUMBER

596-400

EXT.

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

PART I - THE SCHEDULE PART II - CONTRACT CLAUSES

A SOLICITATION/CONTRACT FORM 1 I CONTRACT CLAUSES I-1

B SUPPLIES OR SERVICES AND PRICES/COSTS B-1 PART III - LIST OF DOCUMENTS, EXHIBITS AND OTHER ATTACH.

C DESCRIPTION/SPECS./WORK STATEMENT C-1 J LIST OF ATTACHMENTS J-1

D PACKAGING AND MARKING D-1 PART IV - REPRESENTATIONS AND INSTRUCTIONS

E INSPECTION AND ACCEPTANCE E-1

F DELIVERIES OR PERFORMANCE F-1

G CONTRACT ADMINISTRATION DATA G-1 L INSTR., CONDS., AND NOTICES TO OFFERORS L-1

H SPECIAL CONTRACT REQUIREMENTS H-1 M EVALUATION FACTORS FOR AWARD M-1

K

REPRESENTATIONS, CERTIFICATIONS AND OTHER

STATEMENTS OF OFFERORS K-1

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 __________ calendar days (60 calendar days unless a different period is inserted by the offeror) from the date for receipt of offers specified above, to furnish any or all items upon which prices are offered at the price set opposite each item, delivered at the designated point(s), within the time specified in the schedule.

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

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

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

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

CODE FACILITY

16. NAME AND TITLE OF PERSON AUTHORIZED TO SIGN 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

USAID/RWANDA

FINANCIAL MANAGEMENT OFFICE

CODE

26. NAME OF CONTRACTING OFFICER (Type or print)

MARTIN FISCHER

CONTRACTING OFFICER

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:

USAID/Rwanda Geraldine Kyazze, Sr. A&A Specialist

11. TABLE OF CONTENTS

STANDARD FORM 33

SOLICITATION, OFFER AND AWARD

SOLICITATION

OFFER (Must be fully completed by offeror)

AWARD (To be completed by Government)

N/A

SOL-696-14-000003

X

See Attached Table of Contents

X 1

SECTION A TABLE OF CONTENTS

SECTION B - SUPPLIES OR SERVICES AND PRICE/COSTS............................. B-1

B.1 PURPOSE ........................................................................................................ B-1

B.2 CONTRACT TYPE ......................................................................................... B-1

B.4 BUDGET ......................................................................................................... B-1

B.5 INDIRECT COSTS ......................................................................................... B-2

B.6 CEILING ON INDIRECT COST RATES AND FINAL REIMBURSEMENT

FOR INDIRECT COSTS ................................................................................. B-2

B.7 COST REIMBURSABLE ............................................................................... B-3

B.8 MULTI‐YEAR CONTRACT .......................................................................... B-3

B.9 PAYMENT OF FEE ........................................................................................ B-3

SECTION C - STATEMENT OF WORK ................................................................. C-1

C. 1 OBJECTIVES .................................................................................................. C-1

C.2 BACKGROUND ............................................................................................. C-1

SECTION D - PACKAGING AND MARKING ....................................................... D-1

D.1 MARKING, AIDAR 752.7009 (JAN 1993) .................................................... D-1

D.2 BRANDING AND MARKING ....................................................................... D-1

SECTION E - INSPECTION AND ACCEPTANCE ................................................. E-1

E.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY

REFERENCE .................................................................................................... E-1

E.2 INSPECTION AND ACCEPTANCE .............................................................. E-1

E.3 QUALITY ASSURANCE SURVEILLANCE PLAN (QASP)/MONITORING

AND EVALUATION PLAN ........................................................................... E-1

SECTION F – DELIVERIES OR PERFORMANCE ................................................. F-1

F.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY

REFERENCE .................................................................................................... F-1

F.2 PERIOD OF PERFORMANCE ....................................................................... F-1

F.3 PLACE OF PERFORMANCE ......................................................................... F-1

F.4 PERFORMANCE EVALUATION .................................................................. F-1

F.5 KEY PERSONNEL .......................................................................................... F-1

F.6 REPORTS AND DELIVERABLES................................................................. F-4

SECTION G - CONTRACT ADMINISTRATION DATA ....................................... G-1

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

G.2 ADMINISTRATIVE CONTRACTING OFFICE ........................................... G-2

G.3 CONTRACTING OFFICER’S REPRESENTATIVE (COR) ........................ G-3

G.4 PAYING OFFICE ............................................................................................ G-3

G.5 INVOICING INSTRUCTIONS ....................................................................... G-3

G.6 ACCOUNTING AND APPROPRIATION DATA ......................................... G-3

G.7 TECHNICAL DIRECTIONS/RELATIONSHIP WITH USAID .................... G-3

G.8 AWARD FEE EVALUATION ...................................................................... G-5

G.9 AIDAR 752.216-70 AWARD FEE (May 1997) ............................................ G-6

SECTION H - SPECIAL CONTRACT REQUIREMENTS ...................................... H-1

H.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY

REFERENCE ................................................................................................... H-1

H.2 AIDAR 752.225-70 SOURCE AND NATIONALITY REQUIREMENTS (FEB

2012) ................................................................................................................ H-1

H.3 AUTHORIZED GEOGRAPHIC CODE .............. Error! Bookmark not defined.

H.4 AIDAR 752.228-70 MEDICAL EVACUATION (MEDEVAC) SERVICES

(JULY 2007) .................................................................................................... H-2

H.5 INTERNATIONAL TRAVEL (AIDAR 752.7002 AND 752.7032) .............. H-2

H.6 PERSONNEL APPROVALS (AIDAR 752.7007 AND 752.7027)) .............. H-3

H.7 EXECUTIVE ORDER ON TERRORISM FINANCING (FEB 2002) ........... H-4

H.8 ADS 302.3.5.5 REPORTING OF FOREIGN TAXES (JULY 2007) ............ H-5

H.9 AIDAR 752.228-3 WORKER’S COMPENSATION INSURANCE (DEFENSE

BASE ACT) ..................................................................................................... H-6

H.10 SUBCONTRACTING PLAN, INDIVIDUAL SUBCONTRACT REPORT

(ISR) AND THE SUMMARY SUBCONTRACT REPORT .......................... H-7

H.11 FOREIGN GOVERNMENT DELEGATIONS TO INTERNATIONAL

CONFERENCES (JAN 2002) ......................................................................... H-7

H.12 CONSENT TO SUBCONTRACT .................................................................. H-8

H.13 NONEXPENDABLE PROPERTY PURCHASES AND INFORMATION

TECHNOLOGY RESOURCES ...................................................................... H-8

H.14 LOGISTIC SUPPORT ..................................................................................... H-8

H.15 LANGUAGE REQUIREMENTS ................................................................... H-8

H.16 GRANTS UNDER USAID CONTRACTS ..................................................... H-8

H.17 ENVIRONMENTAL COMPLIANCE ............................................................ H-9

H.18 DISCLOSURE OF INFORMATION .............................................................. H-9

H.19 ADS 302.3.5.9 NONDISCRIMINATION (JUN 2012)................................. H-12

H.20 ADS 302.3.5.14a USAID DISABILITY POLICY – ACQUISITION (DEC 2004) .............................................................................................................. H-12

H.21 ADS 302.3.5.19 USAID-FINANCED THIRD-PARTY WEB SITES (AUG

2013) .............................................................................................................. H-12

H.22 ADS 302.3.5.20 CONFERENCE PLANNING AND REQUIRED

APPROVALS (AUG 2013) ........................................................................... H-12

H.23 COMPLIANCE WITH THE TRAFFICKING VICTIMS PROTECTION

REAUTHORIZATION ACT ......................................................................... H-12

H.24 AUTHORIZED WORK WEEK .................................................................... H-12

SECTION I - CONTRACT CLAUSES ...................................................................... I-1

I.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY

REFERENCE ..................................................................................................... I-1

I.2 FAR 52.203-13 CONTRACTOR CODE OF BUSINESS ETHICS AND

CONDUCT (APR 2010) .................................................................................... I-4

I.3 52.209-5 CERTIFICATION REGARDING RESPONSIBILITY MATTERS

(APR 2010) ........................................................................................................ I-8

I.4 FAR 52.209-7 INFORMATION REGARDING RESPONSIBILITY

MATTERS (JAN 2013) ................................................................................... I-10

I.5 FAR 52.222-50 COMBATING TRAFFICKING IN PERSONS (FEB 2009) I-12

I.6 FAR 52.229-8 TAXES – FOREIGN COST-REIMBURSEMENT CONTRACT

(MAR 1990) ..................................................................................................... I-14

I.7 FAR 52.243-7 NOTIFICATION OF CHANGES (APR 1984) ....................... I-15

I.8 FAR 52.252-2 CLAUSES INCORPORATED BY REFERENCE (FEB 1998) ..

.......................................................................................................................... I-17

I.9 AIDAR 752.231-71 SALARY SUPPLEMENTS FOR HG EMPLOYEES (OCT

1998) .......................................................................................................................... I-17

I.10 AIDAR 752.7004 EMERGENCY LOCATOR INFORMATION (JULY 1997) .

.......................................................................................................................... I-17

I.11 AIDAR 752.7013 CONTRACTOR-MISSION RELATIONSHIPS (OCT 1989)

.......................................................................................................................... I-17

I.12 AIDAR 752.7034 ACKNOWLEDGMENT AND DISCLAIMER (DEC 1991) ..

.......................................................................................................................... I-18

SECTION J - LIST OF ATTCHMENTS ................................................................... J-1

SECTION K - REPRESENTATIONS, CERTIFICATIONS AND OTHER

STATEMENTS OF OFFERORS ................................................................................... K-1

K.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY

REFERENCE ................................................................................................... K-1

K.2 FAR 52.204-8 ANNUAL REPRESENTATIONS AND CERTIFICATIONS

(JAN 2014)....................................................................................................... K-1

K.3 FAR 52.230-1 COST ACCOUNTING STANDARDS NOTICES AND

CERTIFICATION (MAY 2012) ..................................................................... K-6

K.4 FAR 52.230-7 PROPOSAL DISCLOSURE--COST ACCOUNTING

PRACTICE CHANGES (APR 2005) .............................................................. K-8

K.5 INSURANCE - IMMUNITY FROM TORT LIABILITY .............................. K-9

K.6 COMPLIANCE WITH VETERANS EMPLOYMENT REPORTING

REQUIREMENTS ........................................................................................... K-9

K.7 AUTHORIZED NEGOTIATORS ................................................................... K-9

K.8 SIGNATURE ................................................................................................... K-9

SECTION L – INSTRUCTIONS, CONDITIONS, AND NOTICES TO OFFERORS ..

. ............................................................................................................... L-1

L.1 NOTICE LISTING SOLICITATION PROVISIONS INCORPORATED BY

REFERENCE .................................................................................................... L-1

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

L.3 FAR 52.233-2 SERVICE OF PROTEST (SEP 2006) ...................................... L-1

L.4 GENERAL INSTRUCTIONS TO OFFERORS .............................................. L-2

L.5 DELIVERY INSTRUCTIONS ......................................................................... L-3

L.6 GENERAL INSTRUCTIONS FOR THE PREPARATION OF THE

TECHNICAL PROPOSAL .............................................................................. L-4

L.7 TECHNICAL APPROACH AND UNDERSTANDING (see Section M.3) ... L-7

L.8 PERSONNEL (see Section M.4) ...................................................................... L-7

L.9 MANAGEMENT (see Section M.5) ................................................................ L-7

L.10 CORPORATE EXPERIENCE (See Section M.6) ......................................... L-10

L.11 CONTRACTOR PERFORMANCE INFORMATION (See Section M.7) .... L-10

L.12 INSTRUCTIONS FOR THE PREPARATION OF THE COST PROPOSAL

......................................................................................................................... L-12

L. 13 INSTRUCTIONS FOR THE PREPARATION OF BRANDING AND

MARKING PLANS: ....................................................................................... L-18

SECTION M - EVALUATION FACTORS FOR AWARD ...................................... M-1

M.1 GENERAL INFORMATION ......................................................................... M-1

M.2 EVALUATION FACTORS........................................................................... M-1

M.3 TECHNICAL APPROACH AND UNDERSTANDING FACTOR ............... M-2

M.4 PERSONNEL FACTOR ................................................................................. M-3

M.5 MANAGEMENT APPROACH FACTOR ..................................................... M-3

M.6 CORPORATE EXPERIENCE AND CAPABILITY FACTOR .................... M-4

M.7 CONTRACTOR PERFORMANCE INFORMATION FACTOR ................. M-4

M.8 PRICE/COST EVALUATION ....................................................................... M-5

M.9 DETERMINATION OF THE COMPETITIVE RANGE AND CONTRACT

AWARD ......................................................................................................... M-6

M.10 CONTRACTING WITH SMALL BUSINESS CONCERNS ........................ M-6

ATTACHMENTS ...................................................................................................... ATT-1

ATTACHMENT 1 -- IDENTIFICATION OF PRINCIPAL GEOGRAPHIC CODE

NUMBERS ............................................................................................................. ATT-1

ATTACHMENT 2- THE BRANDING STRATEGY .......................................... ATT-3

ATTACHMENT 3 - SMALL BUSINESS, VETERAN-OWNED SMALL BUSINESS,

SERVICE-DISABLED VETERAN-OWNED SMALL BUSINESS HUBZONE

SMALL BUSINESS CONCERNS, SMALL DISADVANTAGED BUSINESS, and

WOMEN-OWNED SMALL BUSINESS MODEL SUBCONTRACTING PLAN

OUTLINE * ........................................................................................................... ATT-6

ATTACHMENT 5 – REQUIRED AND ILLUSTRATIVE INDICATORS BY

OBJECTIVE AND RESULT .............................................................................. ATT-12

ATTACHMENT 13 - USAID/RWANDA DRAFT RESULTS FRAMEWORK, AND

DEVELOPMENT OBJECTIVE 1 – ECONOMIC GROWTH RESULTS

FRAMEWORK ................................................................................................... ATT-16

RFP NO.: SOL-696-14-000003

B-1

PART I – THE SCHEDULE

SECTION B - SUPPLIES OR SERVICES AND PRICE/COSTS

B.1 PURPOSE

The purpose of this contract is to provide the services and deliverables as described in detail in Section C, Statement of Work, for the implementation of the Private Sector Driven Agricultural Growth (PSD-AG) program.

B.2 CONTRACT TYPE

This is a combination Cost-Plus-Award-Fee (CPAF) contract. For the consideration set forth below, the Contractor shall achieve the performance objectives and deliverables or outputs described in Sections, C, D and F and otherwise comply with all contract requirements.

B.3 ESTIMATED COST, BASE FEE, AWARD FEE AND OBLIGATED AMOUNT

(a) The estimated cost for the performance of the work required hereunder, exclusive of fee is $___________. The base fee is $__________. The award fee is $__________. The maximum fee (base plus award fee) is $__________. The estimated cost plus maximum fee 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 $7,500,000*. The Contractor shall not exceed the aforesaid obligated amount.

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

*NOTE: The actual amount to be obligated will be determined at the time of award.

B.4 BUDGET

The total cost (exclusive of base and award fee) stated below for the budget categories specified below may not be adjusted without a written modification signed by the Contracting Officer. No amounts in excess of the amounts specified for each activity shall be billed against the Contract.

Government of Rwanda (GOR) Assistance (Section C._) $_______________ Agricultural Value Chains Assistance (Section C._) $_______________ Management and Administration (Section C._) $_______________

The contractor shall allocate costs to these budget categories based on the guidance in Section C below and consistent with the contractor’s original proposal and/or final proposal revision, which was accepted by USAID through award of this contract.

B-2

B.5 INDIRECT COSTS

Pending the establishment of a 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* Period** Rate Base***

* Description or type of rate indicated as a percentage, e.g., G&A ** Period, e.g., CY 2009 *** Base, e.g., Direct Labor for Labor Overhead

B.6 CEILING ON INDIRECT COST RATES AND FINAL REIMBURSEMENT FOR

INDIRECT COSTS

(a) Reimbursement for allowable indirect costs must be at final negotiated rates but not in excess of the following ceiling rates (if any):

Description* Period** Ceiling Rate Base***

* Description or type of rate indicated as a percentage, e.g., G&A ** Period, e.g., CY 2009 *** Base, e.g., Direct Labor for Labor Overhead

(b) The contractor must make no changes in its established method of classifying or allocating indirect costs without the prior written approval of the Contracting Officer.

(c) USAID is not obligated to pay any additional amount on account of indirect costs above the ceiling rates established in the contract.

(d) This understanding will not change any monetary ceiling, obligation or cost limitation established in the contract.

(e)Because the clauses entitled "Allowable Cost and Payment" (FAR 52.216‐7) and "Fixed Fee" (FAR 52.216‐8) are incorporated into this contract, the terms and conditions of these clauses apply after total payments of fixed fee reach eighty‐five percent (85%) of the total fixed fee.

B-3

B.7 COST REIMBURSABLE

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, if applicable, and AIDAR 752.7003, Documentation for Payment.”

B.8 MULTI‐YEAR CONTRACT

The Contract is considered non‐severable, and is therefore a multi‐year contract as defined in FAR 17.103. Therefore, this contract is subject to the requirements of FAR 17.106. However, this is a CPAF type contract where the contractor is authorized to be reimbursed for all costs which are allowable in accordance with FAR 52.216‐7, “Allowable Costs and Payment”.

Therefore, the contractor will not incur any costs which would have been amortized over the life of the contract should the contract be cancelled in accordance with FAR 52.217‐2. Therefore, the cancellation ceiling for each cancellation date is $0 and there is no requirement to include cancellation dates in the contract.

B.9 PAYMENT OF FEE

Payment of the base fee and award fee will be made as follows.

(a) Base Fee

The Contractor’s base fee is tied to the accomplishment of the performance objectives and deliverables or outputs described in Sections C, D and F, as well as complying with all contract requirements. Normally, the contractor will be paid the proportion of the fee that corresponds to the proportion of cost incurred by the Contractor during the period covered by the invoice divided by the total estimated cost (exclusive of base and award fee). Because of the clauses entitled “Allowable Cost and Payment” (FAR 52.216‐7) and “Award Fee” (AIDAR 752.216‐70) are incorporated into this contract, the terms and conditions of these clauses apply after total payments of base fee reach eighty‐five percent (85%) of the total base fee.

(b) Award Fee

The award fee earned will be paid after the award decision has been made for each evaluation period pursuant to the procedures in Section G.8 and the Award Fee Determination Plan. No interim payments of award fee will be made.

[END OF SECTION B]

C-1

SECTION C - STATEMENT OF WORK

C. 1 OBJECTIVES

The goal of PSD-AG is to increase smallholder incomes by promoting private sector investments

– internationally and domestically - that contribute to the Government of Rwanda’s (GoR’s) Vision 2020 aim of “transforming agriculture into a market-oriented, competitive, and high-value sector.” PSD-AG has two primary objectives:

1. Assist the GoR to Increase Private Sector Investment

2. Facilitate Increased Private Sector Investment in Upgrading Agricultural Value Chains

C.2 BACKGROUND

The following provides relevant background information regarding (a) general background,

(b) activity rationale and (c) relationship to mission and agency strategy.

C.2 (a) General Background:

The Government of Rwanda (GoR) commitment to agriculture as the basis for economic growth is well established. In 2007, two years before any other African country, Rwanda signed a Comprehensive Africa Agricultural Development Program (CAADP) Compact and thus committed itself to a rigorous process of focusing and evaluating its national agriculture strategy.

Additionally, three of Rwanda’s key socioeconomic development strategies identify private sector–led agricultural intensification and commercialization as the next phase of economic growth and job creation.1 The Crop Intensification Program (CIP), which is the investment backbone of the Strategic Plan for the Transformation of Agriculture in Rwanda, Phase III (PSTA III) (Attachment 6), has been the driver of the gains Rwandan agriculture has made over the past four years. The bulk of CIP programming has been in supply-focused public investments designed to increase production and achieve food security. In a country that was receiving food aid a mere three years ago, CIP’s successes have been substantial: by 2011, the program increased maize yields six fold and bean production grew by over 40 percent. These CIP successes have translated into livelihoods improvements across socioeconomic strata, with the Third Integrated Household Living Conditions Survey (EICV III), released in early 2012, showing a 20 percent reduction in poverty in Rwanda since 2008.

After five consecutive years of dramatic productivity increases, Rwanda’s food security objectives seem well in hand. The GoR’s follow-on goals, expressed in the country’s Vision 2020 national development strategy, include transforming agriculture into a market-oriented, competitive, and high-value sector. While productivity has dramatically increased, returns from existing government investments in agriculture have plateaued, as the government has shifted from not only increasing productivity but also ensuring a market for surpluses. The private sector has not had the capacity to take over the functions in the market that it would normally perform

1 Strategic Plan for the Transformation of Agriculture (PSTA), Economic Development and Poverty Reduction Strategy (EDPRS), Vision 2020; GoR is currently drafting successive iterations PSTA III and EDPRS II

C-2 in a highly developed economy. The weakness in the private sector has driven the government to take over transactions and investment in processing facilities, storage, and the state-owned Rwanda Grains and Cereals Corporation (RGCC) to manage bulk commodity purchases. A feedback loop has developed where the government performs more functions in the market to ensure that farmers have a steady market, and the private sector remains weak because it is unable to manage more functions in the market. Surveys of local and regional private sector actors show an interest in such purchasing, productivity, and quality investments, but also describe policy or capacity constraints as being hurdles.

With a central budget consisting of approximately 40 percent donor funds, the GoR has limited resources with which to expand new agricultural investments. Yet the pursuit of Rwanda’s economic strategy of modernizing agriculture requires significant new investments. GoR strategy envisions a broader role for market-led agriculture in Rwanda as expressed in the GoR’s Economic Development and Poverty Reduction Strategy (EDPRS) 2013 – 2018 (Attachment 7).

The GoR has expressed an interest in shifting resources into greater infrastructure and energy investments but needs a robust private sector in agriculture to be able to move money from direct agriculture investments.

C.2 (b) Activity Rationale

The GoR intends to transition from an implementer of agriculture sector growth to that of a facilitator and regulator and increasingly highlights the country’s need for private business to invest. In 2011, Rwanda was selected by the World Economic Forum and the African Union to be a pilot country under Grow Africa, a public-private initiative dedicated to increasing investment opportunities for the private sector in African agriculture. Grow Africa promotes partnerships that identify areas of competitiveness and the reforms necessary to realize new private investment. The Grow Africa process, and the extensive consultations with the private sector that it entailed, have prompted the beginnings of serious GoR policy discussions on the transition identified above.

PSD-AG will support GoR agencies involved in investment promotion by facilitating the transition that the government envisions for itself - as demonstrated through government agency policies - from that of direct agriculture investor to a role of regulator and facilitator. PSD-AG will also build private sector capacity and facilitate expanded investments for existing and new private sector entities. PSD-AG envisions creating a virtuous feedback loop where a robust private sector is investing in markets and producers for continual upgrading, while the government is creating the enabling environment for this upgrading to occur. This new cycle will build food security in Rwanda by building on government-led achievements in increasing the availability of locally produced food and by increasing incomes for smallholder producers.

Ultimately, USAID/Rwanda seeks results from PSD-AG, and offerors are free to propose innovative activities designed to achieve those results, consistent with this RFP.

C-3

C.2 (c) Relationship to Mission and Agency Strategies

This project has strong linkages with the 2014-2018 USAID/Rwanda Country Development Cooperation Strategy (CDCS), and two of its foundational documents, the USAID/Rwanda Feed the Future Multi-Year Strategy 2011-2015 (MYS) and the Feed the Future Project Appraisal Document. Because of the project’s overall purpose of facilitating productive private investment that links directly with smallholders and Micro Small and Medium Enterprises (MSMEs) in the agriculture sector, it fits squarely under CDCS Development Objective 1: Economic Opportunities Increased, and the MYS First Level Objective Inclusive Agriculture Sector Growth. Consistent with these objectives, USAID assistance in this context is designed to support Rwanda’s transition from subsistence to market-led, demand-driven agriculture, with tangible results at the smallholder farmer level. The project seeks to support this transition through working to broaden access to input, output, and services markets along value chains that the private sector has identified for investment, addressing CDCS Intermediate Result (IR) 1.1, FtF Project Purpose 1, and MYS IR 2. USAID/Rwanda will also invest project resources in productivity-enhancing measures, positioning smallholder farmers and businesses to raise household incomes and better respond to market demand signals, addressing CDCS IR 1.2, FtF Project Purpose 2, and MYS IR 1. Finally, the project will also work towards more responsive financial markets in the agriculture sector, enabling smallholder farmers and MSMEs greater opportunities to save and invest, addressing CDCS IR 1.3, FtF Project Sub-Purpose 2.2, and

MYS IR 3.

C.3 RESULTS

As discussed above, PSD-AG has two primary objectives:

1. Assist the GoR to Increase Private Sector Investment

2. Facilitate Increased Private Sector Investment in Upgrading Agricultural Value Chains

These two objectives are seen as inter-related and activities should be designed to support both.

Objective 1 will include the development and implementation of a clear roadmap for attracting and supporting private investment, including clear definition of roles and responsibilities within the GoR to improve the enabling environment and work with potential investors from their expression of investment interest to the implementation of the investment. Objective 2 will include activities that assist the private sector by identifying market opportunities and facilitating investments to take advantage of opportunities. Given the need for working models of successful private sector investment transactions in Rwanda, it is hoped that there will be ample opportunities to pursue the two objectives and corresponding results simultaneously. There are also a number of systemic and/or cross cutting issues that are critical to achieving these objectives, including gender-equitable solutions to improved productivity and competitiveness, Integration of youth (defined as ages 18 – 35) and sustainable natural resource management that supports productivity improvements.

PSD-AG expects to achieve multiple results in addressing these objectives and cross-cutting issues. Interventions under Objective 1, aimed at assisting the GoR in expanding agriculture-related private sector investment, should achieve the following results:

C-4

Result 1.1 Coordinated establishment of a comprehensive GOR inter-agency investment framework for increasing private sector investment

Result 1.2 Collaborative stakeholders engagement to identify and define the roles and responsibilities of different public entities

Result 1.3 Strengthen the capacity of relevant public entities

Result 1.4 Enhance the ability of government and business to productively engage each other

Interventions under Objective 2, aimed at promoting private sector investment in upgrading, are expected to achieve the following results:

Result 2.1 Identify end market opportunities and link value chain actors to identified opportunities

Result 2.2 Strengthen vertical and horizontal value chain linkages and build capacity in selected value chains

Result 2.3 Strengthen input supply and other supporting services and improve smallholder access to these interconnected markets

Result 2.4 Improve the enabling environment for local and regional private sector investment (link to Objective 1)

Project interventions may include, but are not limited to, grants and sub-grants, catalytic investment funds, sub-contracts to host country entities, policy and regulatory reform, public-private alliances and local capacity development for promising Rwandan institutions and organization. Respondents to this RFP are encouraged to use novel and non-traditional interventions to achieve the project’s objectives following USAID’s initiative for implementation and procurement reform and USAID Forward. Such approaches could include a non-exclusivity clause for local partners as this would bring greater flexibility in teaming arrangements and guarantee their participation in winning bids.

PSD-AG objectives and corresponding results are shown below in the results framework.

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Figure 1: PSD-AG Results Framework.

C.4 SERVICES AND TASKS REQUIRED

The Contractor will provide the services and deliverables specified below. In general, services and deliverables will be provided to achieve the objectives identified below, subject to the guidance and limitations specified below. Specific services, activities and deliverables required will be established in the annual work plans approved by the Contracting Officer’s Representative (COR) and, when necessary, through modifications to work plans approved in writing by the COR. Such technical direction must be consistent with all of the terms and conditions of the Contract and the determinations of the Contracting Officer.

C.4(a) Technical Services

Technical services designed to achieve the objectives of the Contract will be provided. As discussed above, annual work plans and/or modification to the work plans will establish the specific services, activities and deliverables required. In addition, the performance milestones in the work plans will establish the basis on which performance will be evaluated. Set forth below are illustrative activities, results and specific guidance for providing technical services and performing tasks under the Contract for each of the two objectives and their sub-objectives.

C.4(a)(1) Objective 1: Assist the GoR to Increase Private Sector Investment

The following will guide the provision of services and activities designed to achieve Objective 1.

C.4(a)(1)(i) Climate for Investment

The GoR has consistently demonstrated credible commitment to increasing investment and improving the overall enabling environment for investors. Through the recently adopted Economic Development and Poverty Reduction Strategy Phase II, the host country commits to pursue reforms that are believed to increase investment, while knowing that increased economic

Increase smallholder incomes by promoting private sector investments

Assist the GoR to increase private sector investment

Facilitate increased private sector investment in upgrading in agricultural value chains

Establish an investment framework for increasing private-sector investment

Identify and define the roles and responsibilities of public entities

Strengthen the capacity of relevant public entities

Enhance the ability of public entities to productively engage the private sector

Identify end market opportunities and link value chain actors to identified opportunities

Strengthen vertical and horizontal linkages and relationships in selected value chains

Strengthen input supply and other supporting services and improve smallholder access

Improve the enabling environment for local and regional private sector investment

C-6 welfare should help to stabilize Rwanda for the long term. Consequently, the GoR has aggressively sought to improve indicators in the World Bank’s Doing Business assessments, resulting in dramatic improvements to Rwanda’s Doing Business rankings. This work has not, however, resulted in dramatic improvements in investment, whether in agriculture or other industries.

Although there is clear commitment to reform, the GoR is in the early stages of understanding investor needs and incentives, and the appropriate roles of public and private stakeholders in promoting investment. Efforts to attract investment are not always well matched with follow-up.

This sends a mixed message to the investor community and increases investor uncertainty. The problems can be overcome, but will require focused effort to change practices that discourage greater investment.

Many GoR agencies tasked with increasing investment – such as the Rwandan Development Board (RDB), the Ministry of Industry and Commerce (Minicom) and the Ministry of Agriculture and Animal Resources (Minagri) – have tangible performance targets that they must meet, and therefore are open to assistance in meeting existing targets and setting new ones.

The ultimate goal of Objective 1 is to help the GoR create an attractive investment climate that meets private sector needs through a well-organized investment promotion and support system.

It is assumed that to some extent the reform process will be shaped by increased GoR interaction with the private sector, with the government accumulating lessons learned. Ultimately, Objectives 1 and 2 combined should lead to a sustainable system for attracting foreign and domestic investment with results consistent with national goals.

C.4(a)(1)(ii) Implementation Principles for Objective 1

Symptoms versus Causes. The fundamental problems in Rwanda’s investment environment are a combination of technical gaps and a poorly functioning system. A systems problem cannot be fixed with technical solutions, such as training or capacity building, because they do not address the more complex malfunctions of the system itself.

For example, transport problems reduce the competitiveness of all cross-border activity in Rwanda, such that any gains from improving producer skills will be counteracted by excessive export costs. Likewise, RDB and other government agencies with investment promotion mandates can improve their performance, but the impact of such improvements is dependent on other parts of the system – from agricultural policy to tax collection to cost of electricity. Once the systems problems have been identified, technical interventions can be very valuable. Put more simply, assistance must be based on careful analysis of what is a symptom of an underlying problem, and what is the cause. Thus, the overall approach for this objective is to facilitate interactions and discussions among relevant public and private sector organizations to define the investment promotion system, and from that definition, identify additional reform, training, incentive or other needs that can be addressed through technical assistance.

Governing for Growth. Although PSD-AG focuses on economic growth, the enabling environment for agriculture and agro-business depends on the system of governance – that is, the

C-7 way in which government operates and interacts with the private sector to promote or restrict behaviors affecting growth. USAID’s approach to improve governance of the enabling environment incorporates four elements: participation, inclusion, transparency, and accountability.

“Participation” simply describes the process by which stakeholders are included in the formulation and implementation of policies, such as allowing public input into the policy process. “Inclusion” promotes participation of a broader range of stakeholders so that legitimate interests are appropriately represented in the process. For example, it is often important to explicitly examine women and youth’s perspectives on a change in agricultural policy, because it may affect their income or opportunities differently than men. “Transparency” introduces openness to avoid inappropriate capture or influence by vested interests and to enable citizens to better understand and participate in the decisions affecting them. “Accountability” – which depends on transparency – requires clear standards of behavior and a way to enforce them. These four elements should be incorporated into every aspect of program implementation, and into the resulting reforms.

Engagement. One of the most important aspects of enabling environment reform is the relationship and level of engagement between public and private sectors. USAID has learned that relationship must be forged across a much wider range of participants than just a few national leaders from each sector. Instead, trust is built and reforms are improved through engagement of the public sector along the entire implementation chain of actors, including executive, legislative and judicial branches (when appropriate) at every level – national, provincial and municipal.

Likewise, private sector needs can vary across economic segments and at different levels, from nationwide associations to groups at the village level. Constructive engagement between citizens and government requires new skills but yields great results in building consensus, ownership and trust.

Legitimacy. Policy reforms are complete only when stakeholders change their behavior to align with the new policy. Most people – and especially farmers – are slow to embrace change unless they perceive the reforms to be legitimate. Thus legitimacy is critical for implementation. It can be established by attention to process (how reforms are identified, selected and conducted), substance (whether the content of reform provides desired benefits), and origin (whether those promoting the change are trusted).

Ownership. Reforms of the agricultural enabling environment cannot be externally imposed.

Reform priorities must therefore be based on GoR priorities, and support should be flexible enough to change course based on GoR demand.

C.4(a)(1)(iii) Objective 1 Results

The following results are included under Objective 1.

Result 1.1: Support to establishment and implementation of a comprehensive investment framework for private-sector investment

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The 2013 Private Sector Development Strategy (PSDS) indicates RDB’s plan to update their Investment Code. The Ministry of Agriculture and Animal Resources has created recently an investment delivery unit with the goal to strengthen institutional capacity to engage, develop and implement public-private partnership programs in agriculture, in partnership with RDB. In March 2013, as part of USAID’s package support to Rwanda in the World Economic Forum/Grow Africa conference, the Deloitte/Monitor group facilitated and supported development of an Agribusiness Investment Road map. As a result of these efforts, inter-ministerial discussions and coordination have started.

The GoR has explicitly requested support to help optimize the existing Investment Framework process in development within its ministries and agencies. The purpose of this result is to assist the GoR in finalize and implement a framework for attracting, supporting and promoting increased investment based on understanding of investor needs in the agriculture and agribusiness sectors. The framework should address individual investments by foreign and domestic investors as well as the overall enabling environment for investment, including recognition of constraints beyond the Doing Business indicators. It should also recognize a full range of investment types and sizes, not just multimillion-dollar projects. To be effective, the framework should set forth indicators for an improved investment climate that identifies and measures barriers at the provincial and municipal level – sub-national indicators, not just national.

The Investment Framework will serve as the backbone of all interventions under Objective 1. It will be used as a guide for setting reform targets for the enabling environment and for engaging with investors. The Investment Framework should facilitate stronger cooperation and mutual understanding between the GoR and the private sector.

Result 1.1 Expected Outcomes

The Contractor should provide services and deliverables, as further defined in the work plans, to help achieve the following outcomes.

Publication of an approved Investment Framework to serve as a practical guide for GoR efforts to increase investment in agriculture and agribusiness;

GoR approval of Investment Framework;

Incorporation of the Investment Framework into the implementation plans and guidelines of all GoR agencies, including provincial government agencies, with an investment promotion mandate.

Result 1.2: Identify and define the roles and responsibilities of public entities

Investors in Rwanda find that approvals, licenses and other official actions related to their investments involve a host of different government agencies, both at the national and local levels. This is not necessarily inappropriate, but today these efforts are not sufficiently coordinated as a result of a lack of an investment framework to organize promotion and support efforts. Once the investment framework has been developed, it will be necessary to map the agencies that interact with investors, and define their roles, responsibilities and authorities in

C-9 achieving increased investment. It is anticipated that RDB will take a lead role in coordinating interactions and information flows as relates to investment promotion, but that will need to be determined in the future. Once the various players and their mandates are identified, they will need written guidelines addressing their roles, including customer-service plans and performance targets against measurable indicators.

Result 1.2 Expected Outcomes

Internal agreement of the GoR relevant institutions and related procedures and systems on the roles and responsibilities of public institutions in attracting, promoting, facilitating and supporting agriculture-related investment.

Measurable indicators developed and adopted for each public entity involved in agriculture-related investment;

Improved coordination and collaboration of disparate public entities in supporting investment;

Aftercare of investors improved.

Result 1.3: Strengthen capacity of relevant public entities

Once a framework for public sector involvement in investment has been established through the previous activities, it will be possible to assess the capability of each public-sector entity to fulfill its mandate. In other words, after deciding what should be done (investment framework) and who should do it (roles and responsibilities), assistance can concentrate on making sure each stakeholder has the resources and ability to perform their functions effectively.

One recognized capacity gap is in the collection and use of information. Minagri’s National Post- Harvest Staple Crop Strategy specifically targets “information available for public and private sector decision making” through better data and better use of data.2 Public sector entities need to have access to reliable data (whether through international or national sources) to generate or arrange for generation of quantitative and qualitative data where missing, and to analyze data once available. For some entities, it is enough to rely on information obtained by public or private service providers; for others, internal capacity may be necessary. For all, the ability to analyze and interpret information for policy decisions is fundamental. Overall, public stakeholders should be able to develop and advocate for policies that incorporate private sector perspectives and public sector capabilities.

Government must also be able to measure its impact on investment through appropriate monitoring and evaluation. In addition to management plans (Result 1.2) and performance scorecards such as those currently being piloted by Transparency Rwanda, GoR needs to inform performance through impact measurement. The point of private-sector-oriented policy is to

2 Ministry of Agriculture and Animal Resources, Republic of…