Solicitation No. 72066322R00008.pdf

Request for Proposals (RFP)/Solicitation No.: 72066322R00008

Issuance Date: March 18, 2022

Due Date for Written Questions: March 31, 2022, 17:00 (UTC + 3:00)

Closing Date for Submission of Proposals: May 2, 2022, 17:00 (UTC + 3:00)

SUBJECT: Request for Proposals (RFP)/Solicitation No. 72066322R00008

Feed the Future Ethiopia Food and Agriculture System Transformation (FAST)

The United States Government, represented by U.S. Agency for International Development (USAID)

Mission in Ethiopia, is seeking proposals to provide technical services to implement the Feed the Future

Ethiopia Food and Agriculture System Transformation (FAST) activity as described in the attached

Request for Proposals (RFP).

USAID/Ethiopia anticipates the award of a Cost-Plus-Fixed-Fee, Completion -Type Contract for a five

(5) year period of performance as a result of this RFP. The Total Estimated Cost-Plus Fixed Fee for services under this contract is estimated to fall within the range of $65-$75 million. The North American

Industry Classification System (NAICS) code for this Solicitation is 541990. The authorized geographic code for the prime contractor of this procurement is 935.

This procurement will be conducted under full and open competition procedures pursuant to Part 15 of the Federal Acquisition Regulation (FAR), under which any type of organization is eligible to compete.

Interested offerors are invited to submit a proposal in accordance with the requirements of the enclosed

RFP. Proposals must be received by the Government no later than the local time on the due date stated above and in the RFP. Only electronic submissions will be accepted via the E-mailbox caddis@usaid.gov with a copy to Mr. Tesfaye Wolde at twolde@usaid.gov . No other forms of submission will be accepted. Pursuant to Block 12 of Standard Form 33 of this RFP, USAID requires that offers remain valid for 180 calendar days from the RFP closing date.

Questions regarding this Solicitation must be submitted in writing via e-mailbox at caddis@usaid.gov by the date and time specified above with a copy to Mr. Tesfaye Wolde at twolde@usaid.gov. If substantive questions are received which affect the response to the Solicitation, or if changes are made to the closing date and time, as well as other aspects of the RFP, this Solicitation will be amended and the amendments will be issued and posted on the U.S. government website: SAM.gov . It is, therefore, the offeror’s responsibility to check this site periodically for official updates and amendments to the

Solicitation. Oral instructions, answers or guidance from any USAID source prior to the award of the contract shall not be binding.

Offerors should read the entire Solicitation, which includes all pertinent technical sections and the terms, conditions and instructions required for submitting a proposal.

USAID may not award to an offeror unless the offeror has complied with all applicable unique entity identifiers and System for Award Management (SAM) requirements detailed in Section L.2. The registration process may take many weeks to complete. Therefore, offerors are encouraged to begin registration early in the process.

mailto:twolde@usaid.gov mailto:twolde@usaid.gov https://sam.gov/content/home

Feed the Future Ethiopia FAST Activity, RFP/Solicitation No. 72066322R00008

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 a proposal in response hereto. Award of a Contract under this RFP is subject to availability of funds and other internal USAID approvals. Furthermore, USAID reserves the right to reject any and all offers, if such action is considered to be in the best interest of USAID.

Thank you for your interest in USAID/Ethiopia development programs.

Sincerely, /S/

Alula Abera

Contracting Officer

TABLE OF CONTENTS

SECTION B - SUPPLIES OR SERVICES AND PRICES/COSTS 8

B.1 PURPOSE 8

B.2 CONTRACT TYPE 8

B.3 ESTIMATED COST AND FIXED FEE 8

B.4 CONTRACT BUDGET AND LINE-ITEM SCHEDULE 8

B.5 INDIRECT COSTS 9

B.6 COST REIMBURSABLE 9

B.7 PAYMENT OF FEE 9

B.8 MULTI-YEAR CONTRACT 10

SECTION C - DESCRIPTION/SPECIFICATIONS/STATEMENT OF WORK 11

C.1 ACTIVITY TITLE 11

C.2 PURPOSE 11

C.3 COUNTRY CONTEXT AND PROBLEM STATEMENT 11

C.4 DEVELOPMENT HYPOTHESIS 15

C.5 EXPECTED RESULTS 16

C.6 REQUIRED INDICATORS AND TARGETS 20

C.7 OPERATING PRIORITIES AND GUIDANCE 21

C.8 MONITORING, EVALUATION, AND LEARNING 25

C.9 GRANTS UNDER CONTRACT 26

SECTION D: PACKAGING AND MARKING 27

D.1 AIDAR 752.7009 MARKING (JAN 1993) 27

D.2 USAID BRANDING AND MARKING POLICY 27

D.3 BRANDING AND MARKING PLAN 27

SECTION E: INSPECTION AND ACCEPTANCE 29

E.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE 29

E.2 INSPECTION AND ACCEPTANCE 29

E.3 ACTIVITY MONITORING, EVALUATION, AND LEARNING (MEL) PLAN 29

E.4 PERFORMANCE EVALUATION 29

SECTION F: DELIVERIES OR PERFORMANCE 31

F.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE 31

F.2 PERIOD OF PERFORMANCE 31

F.3 PLACE OF PERFORMANCE 31

F.4 KEY PERSONNEL 31

F.5 AUTHORIZED WORK WEEK 32

F.6 DELIVERABLES AND SCHEDULE 32

F.7 REPORTING REQUIREMENTS 34

F.7.1 Activity Monitoring, Evaluation, and Learning (MEL) Plan 34

F.7.2 Annual Work Plan with Budget 36

F.7.3 Performance Reports 37

F.7.4 Quarterly Accruals and Financial Reporting 37

F.7.5 Gender Analysis and Strategy 38

F.7.6 Ad Hoc Reports 38

F.7.7 Submission of Data and Datasets 38

F.7.8 Grants Under Contract Manual 38

F.7.9 Communications Strategy 39

F.7.10 Reporting Subcontracts 39

F.7.11 Reporting Covered Telecommunications and Video Surveillance Services or Equipment 39

F.7.12 Non-expendable property report 39

F.7.13 Closeout/Demobilization Plan 39

F.8 AIDAR 752.7005 SUBMISSION REQUIREMENTS FOR DEVELOPMENT EXPERIENCE DOCUMENTS (SEPT

2013) 40

SECTION G: CONTRACT ADMINISTRATION DATA 42

G.1 CONTRACTING OFFICER'S AUTHORITY 42

G.2 ADMINISTRATIVE CONTRACTING OFFICE 42

G.3 CONTRACTING OFFICER'S REPRESENTATIVE (COR) 42

G.4 PAYING OFFICE 42

G.5 INVOICING INSTRUCTIONS: 42

G.6 AIDAR 752.7003 DOCUMENTATION FOR PAYMENT (NOV 1998) 43

G.7 ACCOUNTING AND APPROPRIATION DATA 44

G.8 TECHNICAL DIRECTIONS/RELATIONSHIP WITH USAID 44

SECTION H - SPECIAL CONTRACT REQUIREMENTS 46

H.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE 46

H.2 AUTHORIZED GEOGRAPHIC CODE 46

H.3 INTERNATIONAL TRAVEL (AIDAR 752.7002 AND 752.7032) 46

H.4 ADS 302.3.8.8 REPORTING OF FOREIGN TAXES 47

H.5 SUBCONTRACTING PLAN, INDIVIDUAL SUBCONTRACT REPORT (ISR) AND THE SUMMARY

SUBCONTRACT REPORT 48

H.6 CONSENT TO SUBCONTRACT 48

H.7 NONEXPENDABLE PROPERTY PURCHASES AND INFORMATION TECHNOLOGY RESOURCES 48

H.8 LIMITATION ON ACQUISITION OF INFORMATION TECHNOLOGY (DEVIATION NOs. M/OAA-DEV-FAR-

20-3c and M/OAA-DEV-AIDAR-20-2c) (APRIL 2020) 49

H.9 LOGISTIC SUPPORT 50

H.10 LANGUAGE REQUIREMENTS 50

H.11 ENVIRONMENTAL COMPLIANCE 50

H.12 DISCLOSURE OF INFORMATION 51

H.13 USAID-FINANCED THIRD-PARTY WEB SITES (NOVEMBER 2017) 52

H.14 COMPLIANCE WITH THE TRAFFICKING VICTIMS PROTECTION REAUTHORIZATION ACT (2017) 53

H.15 ADS 302.3.5.22 SUBMISSION OF DATASETS TO THE DEVELOPMENT DATA LIBRARY (OCT 2014) 54

H.16 AIDAR 752.225-70 SOURCE AND NATIONALITY REQUIREMENTS (FEB 2012) 55

H.17 AIDAR 752.7004 EMERGENCY LOCATOR INFORMATION (JUL 1997) 56

H.18 AIDAR 752.228-70 MEDICAL EVACUATION (MEDEVAC) SERVICES (JUL 2007) 56

H.19 PERSONNEL APPROVALS (AIDAR 752.7007 AND 752.7027) 56

H.20 GRANTS UNDER CONTRACT 59

H.21 EXECUTIVE ORDER ON TERRORISM FINANCING (FEB 2002) 61

H.22 FOREIGN GOVERNMENT DELEGATIONS TO INTERNATIONAL CONFERENCES (JAN 2002) 61

H.23 AIDAR 752.222-70 USAID DISABILITY POLICY (DEC 2004) 61

H.24 ORGANIZATIONAL CONFLICTS OF INTEREST 62

H.25 AIDAR 752.7013 CONTRACTOR-MISSION RELATIONSHIPS (OCT 1989) 62

H.26 INHERENTLY GOVERNMENTAL AND CLOSELY ASSOCIATED FUNCTIONS 63

H.27 ELECTRONIC PAYMENTS SYSTEM 63

H.28 AAPD 17-01 - Revision 4 DEFENSE BASE ACT (DBA) INSURANCE FOR 2015-2022 64

H.29 AIDAR 752.228-3 WORKER's COMPENSATION INSURANCE (DEFENCE BASE ACT) (DEC 1991) 66

SECTION I - CONTRACT CLAUSES 67

I.1 FAR 52.252-2 CLAUSES INCORPORATED BY REFERENCE (FEB 1998) 67

I.2 FAR 52.204-25 PROHIBITION ON CONTRACTING FOR CERTAIN TELECOMMUNICATIONS AND VIDEO

SURVEILLANCE SERVICES OR EQUIPMENT (NOV 2021) 71

I.3 AIDAR 752.219-8 UTILIZATION OF SMALL BUSINESS CONCERNS AND SMALL DISADVANTAGED

BUSINESS CONCERNS (MAR 2015) 74

I.4 AIDAR 752.219-70 USAID MENTOR-PROTÉGÉ PROGRAM (JULY 2007) 74

I.5 FAR 52.216-7 ALLOWABLE COST AND PAYMENT (AUG 2018) 74

I.6 FAR 52.222-36 EQUAL OPPORTUNITY FOR WORKERS WITH DISABILITIES (JUN 2020) 80

I.7 FAR 52.227-23 RIGHTS TO PROPOSAL DATA (TECHNICAL) (JUN 1987) 80

I.8 FAR 52.232-12 ADVANCE PAYMENTS - (MAY 2001) - ALTERNATE II (MAY 2001) 80

I.9 AIDAR 752.231-72 CONFERENCE PLANNING AND REQUIRED APPROVALS (AUG 2013) 86

I.10 AIDAR 752.245-70 GOVERNMENT PROPERTY – USAID REPORTING REQUIREMENTS (OCT 2017) 87

I.11 FAR 52.217-8 OPTION TO EXTEND SERVICES (NOV 1999) 89

I.12 AIDAR 752.7036 USAID IMPLEMENTING PARTNER NOTICES (IPN) PORTAL FOR ACQUISITION (JULY

2014) 89

SECTION J - LIST OF DOCUMENTS, EXHIBITS AND OTHER ATTACHMENTS 91

J.1 LIST OF ATTACHMENTS 91

SECTION K - REPRESENTATIONS, CERTIFICATIONS AND OTHER STATEMENTS OF OFFERORS 92

K.1 NOTICE LISTING SOLICITATION PROVISIONS INCORPORATED BY REFERENCE 92

K.2 FAR 52.209-5 CERTIFICATION REGARDING RESPONSIBILITY MATTERS (AUG 2020) 92

K.3 FAR 52.209-7 INFORMATION REGARDING RESPONSIBILITY MATTERS (OCT 2018) 94

K.4 FAR 52.209-11 REPRESENTATION BY CORPORATIONS REGARDING DELINQUENT TAX LIABILITY OR A

FELONY CRIMINAL CONVICTION (FEB 2016) 95

K.5 FAR 52.222-22 PREVIOUS CONTRACTS AND COMPLIANCE REPORTS (FEB 1999) 96

K.6 FAR 52.222-25 AFFIRMATIVE ACTION COMPLIANCE (APR 1984) 96

K.7 FAR 52.237-8 RESTRICTION ON SEVERANCE PAYMENTS TO FOREIGN NATIONALS (AUG 2003) 96

K.8 FAR 52.204-3 TAXPAYER IDENTIFICATION (OCT 1998) 97

K.9 FAR 52.204-8 ANNUAL REPRESENTATIONS AND CERTIFICATIONS (JAN 2022) 98

K.10 FAR 52.230-1 COST ACCOUNTING STANDARDS NOTICES AND CERTIFICATION (JUN 2020) 102

K.11 FAR 52.230-7 PROPOSAL DISCLOSURE--COST ACCOUNTING PRACTICE CHANGES (APR 2005) 105

K.12 INSURANCE - IMMUNITY FROM TORT LIABILITY 105

K.13 FAR 52.204-17 OWNERSHIP OR CONTROL OF OFFEROR (AUG 2020) 105

K.14 FAR 52.204-20 – PREDECESSOR OF OFFEROR (AUG 2020) 106

K.15 FAR 52.209-12 – CERTIFICATION REGARDING TAX MATTERS (OCT 2020) 107

K.16 FAR 52.222-56 CERTIFICATION REGARDING TRAFFICKING IN PERSONS COMPLIANCE PLAN (OCT

2020) 107

K.17 AUTHORIZED NEGOTIATORS 107

K.18 SIGNATURE 108

SECTION L - INSTRUCTIONS TO OFFERORS INSTRUCTIONS, CONDITIONS, AND NOTICES TO OFFERORS 109

L.1 FAR 52.252-1 SOLICITATION PROVISIONS INCORPORATED BY REFERENCE (FEB 1998) 109

L.2 FAR 52.204-7 SYSTEM FOR AWARD MANAGEMENT (OCT 2018) 109

L.3 FAR 52.204-16 COMMERCIAL AND GOVERNMENT ENTITY CODE REPORTING (AUG 2020) 110

L.4 FAR 52.215-1 INSTRUCTIONS TO OFFERORS - COMPETITIVE ACQUISITION (NOV 2021) 111

L.5 FAR 52.216-1 TYPE OF CONTRACT (APR 1984) 115

L.6 FAR 52.222-24 PREAWARD ON-SITE EQUAL OPPORTUNITY COMPLIANCE EVALUATION (FEB 1999) 115

L.7 FAR 52.233-2 SERVICE OF PROTEST (SEP 2006) 115

L.8 QUESTIONS AND CLARIFICATIONS 116

L.9 GENERAL INSTRUCTIONS TO OFFERORS 116

L.10 DELIVERY INSTRUCTIONS 116

L.11 GENERAL INSTRUCTION FOR THE PREPARATION OF THE TECHNICAL PROPOSAL 118

L.12 INSTRUCTIONS FOR THE PREPARATION OF THE COST PROPOSAL 123

L.13 INSTRUCTIONS FOR THE PREPARATION OF BRANDING AND MARKING DOCUMENTS 131

L.14 INSTRUCTIONS FOR THE PREPARATION OF SUBCONTRACTING PLAN 132

L.15 REPRESENTATIONS REGARDING COVERED TELECOMMUNICATIONS EQUIPMENT AND SERVICES 132

L.16 WAIVERS UNDER FAR PART 4.2101 PROHIBITION ON COVERED TELECOMMUNICATIONS AND VIDEO

SURVEILLANCE SERVICES AND EQUIPMENT (DECEMBER 2021) 132

SECTION M - EVALUATION FACTORS FOR AWARD 134

M.1 GENERAL INFORMATION FOR OFFERORS 134

M.2 TECHNICAL EVALUATION CRITERIA 134

M.2.a. Factor 1: Technical Approach 135

M.2.b. Factor 2: Management Approach, Key Personnel and Staffing Plan 135

M.2.c. Factor 3: Past Performance 135

M.3 EVALUATION METHODOLOGY 136

M.4 PRICE/COST PROPOSAL EVALUATION 137

M.5 DETERMINATION OF AWARD 137

PART I - THE SCHEDULE

SECTION B - SUPPLIES OR SERVICES AND PRICES/COSTS

B.1 PURPOSE

The purpose of this contract is to provide technical services that fall within the Statement of Work

(SOW) as specified in Section C for the implementation of the Feed the Future Ethiopia Food and

Agriculture System Transformation (FAST) activity.

B.2 CONTRACT TYPE

This is a Cost-Plus-Fixed-Fee (CPFF), Completion -Type Contract. The Contractor will provide the deliverables or outputs described in Section F in accordance with the performance standards specified in Section E, and comply with all contract requirements to accomplish the goals and objectives set forth in Section C.

B.3 ESTIMATED COST AND FIXED FEE

(a) The total estimated cost for the performance of the work required, exclusive of fixed fee, is $TBD.

The total fixed fee is $TBD. The total estimated CPFF is $TBD.

(b) Within the estimated cost-plus fixed fee amount 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 is [TBD].

(c) Funds obligated are anticipated to be sufficient for the period of performance from the effective date of the contract through [TBD]. The Contractor shall not exceed the aforesaid obligated amount unless authorized by the Contracting Officer pursuant to the clause of this contract entitled

“Limitation of Funds” (FAR 52.232-22). Funding for this contract will be on an incremental basis, subject to the availability of funds.

B.4 CONTRACT BUDGET AND LINE-ITEM SCHEDULE

(a) The contract budget found herein is based on the Contractor’s original proposal and/or final proposal revision, which was accepted by USAID on date_____ upon the award of this contract.

(b) The following itemized budget sets forth the estimates for individual line items of cost: No amounts in excess of the amounts specified for each activity shall be billed against the Contract.

Line-Item Description

Year 1

Year

Year 3

Year 4

Year 5

TOTAL

Direct Costs $TBD $TBD $TBD $TBD $TBD $TBD

Grants Under Contract GUCs)* $TBD $TBD $TBD $TBD $TBD $TBD

Indirect Costs $TBD $TBD $TBD $TBD $TBD $TBD

Total Estimated Cost (TEC) $TBD $TBD $TBD $TBD $TBD $TBD

Fixed Fee (FF) $TBD $TBD $TBD $TBD $TBD $TBD

TEC-Plus-Fixed-Fee $TBD $TBD $TBD $TBD $TBD $TBD

[*This amount is exclusively reserved for (GUCs) that Contractor must set aside to provide Grants Under Contracts. This amount does not include any relevant management or administrative expenses incurred by the Contractor]

(c) The inclusion of any costs in the above budget does not eliminate the requirement for prior approval by the Contracting Officer of cost items designated as requiring prior approval by any of the terms and conditions of this contract, including the applicable cost principles (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.

(d) The Contractor agrees to furnish data that the Contracting Officer may request on costs expended or accrued under this contract.

(e) Without the prior written approval of the Contracting Officer, the Contractor must not exceed the total estimated cost set forth in the budget or the total obligated amount, whichever is less.

B.5 INDIRECT COSTS

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:

Prime:

Description Rate Base Type Period

TBD TBD 1/ 1/ 1/

TBD TBD 2/ 2/ 2/

1/ Base of Application: TBD

Type of Rate: TBD

Period: TBD

2/ Base of Application: TBD

Type of Rate: TBD

Period: TBD

Applicable indirect costs (i.e., overhead, G&A, etc.) on other direct costs (ODCs), if it is part of the

Contractor’s usual accounting procedures, consistent with FAR Part 31, and Negotiated Indirect Cost

Rate Agreement (NICRA). Indirect costs shall not be allowed for organizations that do not have a

NICRA; this requirement does not apply to subcontractors.

B.6 COST REIMBURSABLE

The U.S. dollar costs allowable will be limited to reasonable, allocable, and necessary costs determined in accordance with FAR 52.216-7, “Allowable Cost and Payment,” FAR 52.232-20, “Limitation of Cost,” and FAR 52.232-22, “Limitation of Funds,” if applicable, and AIDAR

752.7003, “Documentation for Payment.”

B.7 PAYMENT OF FEE

(a) The total amount of fee payable upon completion of all contract requirements will be set at the time of award and does not vary with actual cost.

(b) Definite goals or targets must be achieved and end results must be completed, delivered, and accepted by USAID during the period of performance and within the total estimated cost as a condition for payment of the entire fixed fee.

(c) A Fee Distribution Schedule must be approved before a fee is paid. The final Fee Distribution

Schedule, and any subsequent changes, must be approved by the Contracting Officer, and shall be incorporated as an attachment to the contract award.

(d) Goals or targets and end results from the Fee Distribution Schedule that have fee associated with their completion or delivery must be referred to as Fee Bearing Results or Deliverables.

(e) Fee Bearing Results or Deliverables proposed in the Fee Distribution Schedule must appear in the

Work Plan (WP) and Monitoring, Evaluation, and Learning (MEL) Plan that has been prepared in compliance with the specifications and requirements of this Contract. Appropriate Fee Bearing

Results are completion of items that meet the USAID definition of an Output or Result. Output-level Performance Indicators are generally not appropriate Fee Bearing Milestones/Results.

Deliverables such as reports may be Fee Bearing.

(f) The Fee Distribution Schedule must emphasize completion of goals, targets and/or deliverables that are the development results sought by USAID through this award but must also include selected implementation management and development results or milestones as Fee Bearing

Milestones/Results.

(g) As a condition for the payment of the portion of the total fixed fee associated with a specific goal, target and/or deliverable, the Contractor must complete the goal, target and/or deliverable. When a Fee Bearing Milestone/Result is not completed or achieved, the portion of the total fixed fee allocated to the Milestone/Result in the Fee Distribution Schedule will not be paid.

(h) When a Fee Bearing Milestone/Result is not completed on time or requires more cost/effort to complete than projected in the Work Plan and/or MEL Plan, the portion of the total fixed fee allocated to the Milestone/Result in the Fee Distribution Schedule may be subject to adjustment of the fee by the Contracting Officer.

B.8 MULTI-YEAR CONTRACT

This is a CPFF completion-type contract where the contractor is authorized to be reimbursed for all costs that are allowable in accordance with FAR 52.216-7, “Allowable Costs and Payment”. Therefore, the Contractor will not incur any costs that would have been amortized over the life of the contract should the contract be canceled in accordance with FAR 52.217-2. Therefore, the cancellation ceiling for each cancellation date is $0 and so there is no requirement to include cancellation costs and associated dates in the contract.

Furthermore, in accordance with the limitation of Funds Clause (FAR 53.232-22) which will be incorporated into the contract, the contractor is required to notify the Contracting Officer when 75% of obligated funds have been expended and the contractor is under no obligation to perform if funds are not available.

[END OF SECTION B]

SECTION C - DESCRIPTION/SPECIFICATIONS/STATEMENT OF WORK

C.1 ACTIVITY TITLE

Feed the Future Ethiopia Food and Agriculture System Transformation (FAST).

C.2 PURPOSE

The purpose of FAST is to increase access to healthy diets, particularly for women and children, by improving the competitiveness, inclusiveness, and resilience of the food and agriculture systems.1

FAST will build on previous USG-funded Feed the Future (FTF) activities to sustainably improve access to healthy diets for all in the FTF Zone of Influence (ZOI), using a food systems lens.2 By a healthy diet, we mean sufficient food to meet dietary needs for a productive and healthy life. Physical and economic access to a healthy diet is important for all people at all times throughout the year. It is particularly important for women and young children, given the critical effects healthy diets have on early childhood development and lifelong productivity. Acknowledging that economic transformation tends to bring new malnutrition challenges, FAST will support transformation of the food systems so that a healthy diet is increasingly easy to access. FAST will also support the food and agriculture systems to become more sustainable, resilient, and responsive, increasing its long-term capacity to adapt to demographic trends, socio-cultural patterns and preferences, and shocks and stresses. Finally, FAST will facilitate increased public-private partnership and collaboration to spur a more favorable policy environment for private sector investment and innovation that serves the population’s economic and dietary needs. FAST will seek to make strategic investments that produce durable outcomes with potential to catalyze change across the food and agriculture systems as well as the broader economy.

C.3 COUNTRY CONTEXT AND PROBLEM STATEMENT

The Activity will address the following problem statement.

Ethiopia’s food and agriculture systems suffer from low productivity, innovation, value addition, and diversification; are heavily dependent on localized, rainfed subsistence production, state-led programs, and humanitarian aid; and are vulnerable to environmental degradation, shocks, and stresses. Food and agriculture markets are fragmented and supply is not well-aligned with end-market and consumer demands and needs. As such, the food and agriculture systems are not well equipped to support access to healthy diets or stimulate the broad-based economic transformation the country needs.

Agriculture plays a key role in economic transformation. Ethiopia is experiencing rapid population growth, urbanization, and changing diets.3 Agriculture remains a critical part of Ethiopia’s economy, accounting for

40 percent of the gross domestic product (GDP), 80 percent of exports, and an estimated 75 percent of the country's workforce,4 and drives growth in other sectors and consequently the national economy. Between

1993 and 2018, agricultural output more than tripled. Overall, about two-thirds of this growth came from increases in cultivated areas and input use (i.e., increased resource use rather than increased efficiency) while only about one-third came from productivity gains.5 Ethiopia’s Homegrown Economic Reform Agenda6 notes that agricultural growth supported by public investment has not driven the structural transformation needed

FAST defines competitive, inclusive and resilient market systems per USAID’s Framework for Inclusive Market Systems Development.

See USAID’s RFS Food Systems Conceptual Framework, and Agrilinks: Demystifying a Food Systems Approach, https://agrilinks.org/post/demystifying-food-systems-approach-tools-turn-theory-action Hassen, Ibrahim Worku et al. 2016. Diet Transformation in Africa: The Case of Ethiopia. (IFPRI, ESSP Working Paper 87)

Cited in the Feed the Future (2019-2023) Country Plan for Ethiopia

Jayne, T.S., et al., Agricultural Productivity Growth, Resilience, And Economic Transformation In Sub-Saharan Africa: Implications For USAID, April 2021

Federal Democratic Republic of Ethiopia, Planning and Development Commission. Ten Years Development Plan: A Pathway to Prosperity, 2021-2030.

https://www.marketlinks.org/resources/framework-inclusive-market-system-development https://www.usaid.gov/sites/default/files/documents/RFS-Food-Systems-Conceptual-Framework-Summary-Guidance.pdf https://agrilinks.org/post/demystifying-food-systems-approach-tools-turn-theory-action https://agrilinks.org/post/demystifying-food-systems-approach-tools-turn-theory-action http://ebrary.ifpri.org/utils/getfile/collection/p15738coll2/id/130256/filename/130467.pdf https://www.usaid.gov/ethiopia/agriculture-and-food-security https://www.usaid.gov/sites/default/files/documents/BIFAD_Agricultural_Productivity_Growth_Resilience_and_Economic_Transformation_in_SSA_Final_Report_4.20.21_2_2.pdf https://drive.google.com/file/d/1XzQFe2SWJ-L2CYmnc14HW1w3geO-nmHT/view?usp=sharing for sustained private sector-led growth. State-led models of agricultural development and economic growth are now giving way to growing acceptance for a stronger role for the private sector and environmentally sustainable models. Furthermore, the current conflict will leave lasting effects on the agriculture economy, requiring significant investments to support the return of a healthy and productive food system.

Diets are changing, with new forms of malnutrition on the rise.7 As seen throughout history, economic transformation tends to be accompanied by dramatic shifts in food consumption patterns. As such, Ethiopia is now facing the double burden of malnutrition. It struggles with longstanding chronic and acute malnutrition, micronutrient deficiencies, and anemia. At the same time, signs of the nutrition transition are emerging, with increased intake of sugar, sodium, and saturated fats, and decreased intake of fruits, vegetables, and fiber. This dietary shift is associated with an increased risk of non-communicable diseases, such as diabetes and heart disease. Although caloric intake has increased, Ethiopian diets are still very low in diversity. Fewer than 2 out of 10 food groups are consumed by women on average. Diets remain marked by insufficient intake of quality protein, fruits, vegetables, vitamin A, and zinc.8 This national problem cuts across all regions and urban and rural areas. In Ethiopia’s Feed the Future (FTF) Zone of Influence (ZOI), only 2.4 percent9 of women meet the minimum recommended dietary diversity.

Poor availability and access to safe, diverse, nutritious foods are the primary constraints to healthy diets. This severely limits the effectiveness of nutrition promotion and communications efforts. For example, the supply of fruits and vegetables nationwide is 59 grams per person per day,10 equivalent to less than 15 percent of the World Health Organization’s (WHO) recommended daily consumption of at least 400 grams.

In addition, the cost of a healthy diet in Ethiopia is approximately four times more than one that only meets basic energy needs;11 representing 67-150 percent of income for most households in Amhara, Oromia, SNNP, and Tigray Regions.12 In the FTF ZOI, nearly 47 percent of households are poor or near poor, living on less than $2.38 per person per day; further, 85 percent of households fall in the poorest quintile of the asset-based comparative wealth index, reflecting low levels of resilience and wealth (asset accumulation) over time. A significant number of Ethiopians depend on humanitarian assistance, with an estimated 8 million requiring food aid in 202013 and another 8 million people receiving safety net transfers under the Productive Safety

Net Program (PSNP). Ethiopia has received an average of 700,000 tons of food aid per year for the past 15 years. Ethiopia is the largest recipient of emergency aid per capita in Africa.14 This significant presence of food aid not only reflects the difficulties of access to healthy diets, but also impacts market dynamics in food and agriculture systems.

Ethiopia’s food system is not well equipped to address the double burden of malnutrition or to adapt to shocks, stresses, or demographic shifts. Ethiopia’s Homegrown Economic Reform Agenda notes insufficient yields, inefficient provision of inputs and services, gaps and inefficiencies in market systems and logistics, and inadequate financial services as key challenges. Accordingly, Ethiopian government policies and programs call for food systems approaches that promote development of supply chains and food environments15 that serve dietary needs in an environmentally sustainable way.

Jessica Fanzo, Coral Rudie, Iman Sigman, Steven Grinspoon, Tim G Benton, Molly E Brown, Namukolo Covic, Kathleen Fitch, Christopher D Golden, Delia

Grace, Marie-France Hivert, Peter Huybers, Lindsay M Jaacks, William A Masters, Nicholas Nisbett, Ruth A Richardson, Chelsea R Singleton, Patrick Webb, Walter C Willett, Sustainable food systems and nutrition in the 21st century: a report from the 22nd annual Harvard Nutrition Obesity Symposium, The American

Journal of Clinical Nutrition, Volume 115, Issue 1, January 2022, Pages 18–33, https://doi.org/10.1093/ajcn/nqab315 Gebru, M., el al. (2018). Food systems for healthier diets in Ethiopia: Toward a research agenda. Washington, DC: International Food Policy Research Institute

(IFPRI), IFPRI Discussion Paper 1720, 51 p. https://hdl.handle.net/10568/98257. DOI: https://doi.org/10.2499/1032568455

Feed the Future Ethiopia Zone of Influence Population Based Survey

FAOSTAT

WFP, Fill the Nutrient Gap, https://www.wfp.org/publications/fill-nutrient-gap-ethiopia-summary-report-english

Hirvonen, Kalle and Abdulazize Wolle, Consumption, Production, Market Access And Affordability Of Nutritious Foods In Six Regions In Ethiopia, IFPRI, 2019.

2020 Humanitarian Response Plan

Kehler, Al. 2004. When will Ethiopia Stop asking for aid?, Humanitarian Practice Network.

The food environment is where consumers interact with the food system for the purpose of acquiring and eating foods. It includes physical places (e.g. stores) as well as social, economic, and cultural factors. Availability and affordability; safety, quality, and convenience; and advertising are all part of the food https://doi.org/10.1093/ajcn/nqab315 https://hdl.handle.net/10568/98257 https://doi.org/10.2499/1032568455 https://www.wfp.org/publications/fill-nutrient-gap-ethiopia-summary-report-english https://essp.ifpri.info/2019/11/11/consumption-production-market-access-and-affordability-of-nutritious-foods-in-six-regions-in-ethiopia/ https://odihpn.org/magazine/when-will-ethiopia-stop-asking-for-food-aid

Food safety is also a major challenge. In 2015, the WHO estimated that foodborne disease was responsible for 600 million illnesses and 420,000 premature deaths annually worldwide. This burden is disproportionately borne by poorer consumers in lower-income countries, which are reliant on informal markets with relatively poor infrastructure and weak food safety regulation and oversight. Moreover, foodborne disease has close links with nutrition, as the most nutritious foods are highly perishable and most susceptible to contamination.

Ethiopia’s food system is mostly rural and traditional. The country’s 12 million smallholder households account for an estimated 95 percent of national production. Holding one hectare on average, they rely on traditional, rainfed, subsistence-oriented, low-yield production systems to generate most of their income and to feed their families. On average, they consume close to 47 percent of their production and sell the rest.16

Over 70 percent of the country’s cropland is dedicated to cereal production. The more densely populated highlands, where rainfall is more predictable, constitute Ethiopia's breadbasket, producing 89 percent of total cereal production despite making up only 37 percent of the country’s landmass.

Ethiopia is home to some of the largest stocks of various livestock species in the world.17 Livestock18 perform multiple functions in the rural household economy. Besides employment, livestock provides protein rich food by transforming grasses into high-nutrient dense foods, income for everyday expenses and social obligations, near liquid assets, a store of wealth for savings, manure for crop production and soil fertility, and transport.19 While growth in the livestock sector has been slower than other sectors, it represents 35 percent of agriculture GDP and has great growth potential if barriers to productivity can be overcome.20

Sustainable forage production is inadequate, which exacerbates land degradation and limits productivity, quality, and incomes.

In addition to cereals and livestock, Ethiopia has a favorable and diverse agro-ecology for legumes and horticulture production. Legumes account for about 13 percent of cultivated land, 15 percent of protein intake, and provide multiple benefits (incomes, exports, soil fertility and conservation, livestock feed, and fuel). While production has increased by nearly 72 percent over the last 20 years, productivity and overall production of legumes in Ethiopia is still below potential.21 The majority of Ethiopia’s horticultural production comes from smallholders and yields remain low. Both men and women cultivate fruits, vegetables, roots and tubers, however their harvesting, post-harvest processing, and marketing is mostly done by women. Despite historically low investment levels, horticulture production and exports are on the rise and represent a significant area of potential growth.22

Low yield production systems (e.g., cereal, livestock, and horticulture) are not environmentally or economically sustainable. They drive extensification that degrades land, depletes the soil, reduces smallholder incomes, and reduces efficiency and profits across the market systems. Importantly, such low-productivity systems also both contribute to and are further exacerbated by the increasingly severe impacts of a changing climate.

environment. The food environment affects diets by influencing the way people access foods. For more information, see (1) the Food Systems Dashboard, (2)

Global Panel on Agriculture and Food Systems for Nutrition. 2016. Food systems and diets: Facing the challenges of the 21st century. London, UK, (3) HLPE.

2017. Nutrition and food systems. A report by the High Level Panel of Experts on Food Security and Nutrition of the Committee on World Food Security, Rome, and (4) Turner. 2018. Concepts and critical perspectives for food environment research: A global framework with implications for action in low- and middle-income countries.

Gebru, M., el al. (2018). Food systems for healthier diets in Ethiopia: Toward a research agenda. Washington, DC: International Food Policy Research Institute

(IFPRI), IFPRI Discussion Paper 1720, 51 p. https://hdl.handle.net/10568/98257. DOI: https://doi.org/10.2499/1032568455

Dorosh, Paul A. and Bart Minten. Ethiopia's Agrifood System: Past Trends, Present Challenges, And Future Scenarios, Chapter 5. 2020, International Food

Policy Research Institute (IFPRI).

https://agrilinks.org/post/livestock-integral-component-sustainable-food-systems

CTA, 2021, The Role of Livestock in Developing Communities: Enhancing Multifunctionality, Frans Swanepoel, Aldo Stroebel and Siboniso Moyo.

Aleme Asresie and Lemma Zemedu, 2015, Contribution of Livestock Sector in Ethiopian Economy: A Review.

Kebede, Erana (2020) Grain legumes production and productivity in Ethiopian smallholder agricultural system, contribution to livelihoods and the way forward, Cogent Food & Agriculture, 6:1. https://doi.org/10.1080/23311932.2020.1722353

Dube, Ahmed K., Burhan Ozkan, and Ramu Govindasamy. 2018. "Analyzing the Export Performance of the Horticultural Sub-Sector in Ethiopia: ARDL

Bound Test Cointegration Analysis" Horticulturae 4, no. 4: 34. https://doi.org/10.3390/horticulturae4040034 https://foodsystemsdashboard.org/ http://ebrary.ifpri.org/utils/getfile/collection/p15738coll5/id/5516/filename/5517.pdf http://www.fao.org/3/i7846e/i7846e.pdf https://www.sciencedirect.com/science/article/pii/S2211912418300154 https://www.sciencedirect.com/science/article/pii/S2211912418300154 https://hdl.handle.net/10568/98257 https://doi.org/10.2499/1032568455 https://doi.org/10.2499/9780896296916 https://agrilinks.org/post/livestock-integral-component-sustainable-food-systems https://cgspace.cgiar.org/bitstream/handle/10568/3003/roleLivestockFarming.pdf?sequence=1 https://www.iiste.org/Journals/index.php/ALST/article/viewFile/19767/20040#:~:text=Livestock%20contribute%2015%20to17%20percent,et%20al.%2C%202003 https://doi.org/10.1080/23311932.2020.1722353 https://doi.org/10.3390/horticulturae4040034

Smallholder productivity is constrained by many factors. First, access to inputs, technologies and innovation is inadequate. Despite being the largest in Africa, the public agriculture extension system is overburdened, poorly equipped to deliver the required services, and disconnected from private sector partnership and market opportunities. The effectiveness of research and development is limited due to inadequate levels of sustained investment, low private sector engagement, and weak linkages between producers, extension agents, and knowledge centers. Inefficient input markets (particularly for seed, fertilizer, and feed) and restrictive land tenure policy limit producer ability to access the right technologies and to make the best production decisions aligned with their comparative advantage and sound natural resource management (considering agroecological and market conditions and individual skills, resources, and aspirations). However, new laws which have been adopted and are in development offer opportunities for leasing and larger-scale cooperative efforts. Access to other key services and equipment (breeding and veterinary services, pest and soil management, irrigation, mechanization, and labor-saving technologies) remains very low, largely due to policies that constrain private sector investment.

Weak market systems also constrain productivity. Poorly developed value chains and market infrastructure, weak integration of producers with central markets, and poor and inflexible credit markets prevent producers from realizing their full productivity potential.23 Supply chains are short, resulting in many local, fragmented markets. Value-added processing is low, representing only one percent of agricultural exports.24 The lack of refrigeration, storage facilities, and processing capacity results in large food losses for some crops, making producers less likely to diversify into perishable foods, and limits product diversity, availability of storable foods, and food safety measures. The quantity and diversity of foods available varies seasonally, often with a pronounced lean season. Seasonal price swings tend to be large. Rural non-farm employment opportunities (e.g., sales of agricultural inputs, basic food processing, small-scale trading, and storage) are growing but slowly, and remain limited. In addition to the constraints listed above, insufficient food quality and safety standards and regulatory capacity further limit producer capacity to capture high value markets or to safeguard the health of the population.

Food environments influence consumer access and choice. Food is mainly sold in informal market outlets, including independently-owned small shops, street vendors, and central/district markets. While significant investments in roads and other physical infrastructure have been made in recent years, road infrastructure and access to markets and urban centers is more limited in the lowlands than the highlands, taking six hours on average to reach the nearest city as opposed to three hours in the highlands. Evidence from other African countries has shown that access to food markets was more important for dietary diversity than diverse farm production.25 Supermarkets are rare outside of Addis Ababa, though they are beginning to grow in number along with fast food chains. Ethiopia has adopted mandatory or voluntary fortification guidelines for iodized salt, wheat and edible oils in order to improve the supply of micronutrients in the diet.

The challenging business environment constraints innovation. A lack of general business development services, access to finance26, business-promoting policy and small and medium enterprise (SME) business capacities also limits food and agriculture entrepreneurs’ ability to identify, develop, and market products and services that respond to the population’s current dietary needs, daily realities, and aspirations while promoting healthy diets, including consideration of economic, time, and mobility constraints, fasting requirements, and socio-cultural values and traditions. Limited business development capacity and support also leave firms unable to adapt and innovate their products and service models to meet changing consumer demands due to lifestyle changes such as urbanization and income growth. Given current gender roles, food products and services that facilitate women’s ability to both nourish the family and pursue economic or other civic endeavors are limited.

Dorosh, Paul A. and Bart Minten. Ethiopia's Agrifood System: Past Trends, Present Challenges, And Future Scenarios, Chapter 5. 2020, International Food

Policy Research Institute (IFPRI).

Heinz Strubenhoff, February, 2021, FUTURE DEVELOPMENT, Can agriculture be Ethiopia’s growth engine?

Koppmair, Stefan, Menale Kassie, and Matin Qaim, September 2016, Farm production, market access and dietary diversity in Malawi.

Making Finance Work for Food: Financing the Transition to a Sustainable Food System, Finance for Biodiversity Initiative, https://www.f4b-initiative.net/ https://doi.org/10.2499/9780896296916 https://www.brookings.edu/blog/future-development/2021/02/24/can-agriculture-be-ethiopias-growth-engine/ https://www.cambridge.org/core/journals/public-health-nutrition/article/farm-production-market-access-and-dietary-diversity-in-malawi/A1EA7FB534991ADF4787CB73556AF34A https://www.f4b-initiative.net/post/reshape-global-finance-to-support-inevitable-transition-to-sustainable-food-system https://www.f4b-initiative.net/

Women and youth face disproportionate challenges in all of the aforementioned areas and have not benefited equitably thus far from agricultural growth. They experience lower access to productive resources

(particularly land and water), finance, inputs, training, nutritious foods, and are under-represented as business leaders and owners in trade and processing enterprises. Both women and youth in Ethiopia have a lower decision making role in land and other natural resources’ governance.27

Increasing food systems health and resilience is key.28 The gaps and constraints in Ethiopia’s food and agriculture systems not only restrict its ability to improve access to healthy diets and drive inclusive economic growth. They also limit resilience to shocks and stressors in the natural environment, market, and political contexts. Ethiopia faces cyclical droughts and is highly susceptible to climate-related weather events, which significantly affect crop and livestock production while impairing transport for inputs and outputs. It faces high risk of volatility in export markets, given that the overwhelming majority of agricultural exports are primary agricultural commodities, with such volatility also affecting regional import and export markets, and thus domestic food supply. Internal conflict and health shocks, such as the COVID-19 pandemic, impact market functioning and access to various degrees.

Feed the Future programming in Ethiopia to date has made significant contributions to advance agricultural development, food security, and improved nutrition outcomes. In particular, past and current activities have demonstrated successful models for increasing and leveraging private sector investment and expertise to increase smallholder productivity and to become more resilient to climate change29 impacts. They have also demonstrated effective models for increasing awareness of and desire to consume a healthy diet.

However, progress has been hindered by low year-round availability and affordability of nutritious foods.

Increased consumption of healthy diets to date has been marginal, seasonal, and largely limited to farm households capable of diversifying their own production. Even these farm households cite lack of income or high cost as barriers to regular consumption of healthy diets.

FAST builds on the foundational work of prior programs, but reorients to a food systems lens that more intentionally seeks impact on access to healthy diets through climate-smart, agriculture-led growth through the use of the market systems approach.

C.4 DEVELOPMENT HYPOTHESIS

C.4.1 Theory of Change

The Activity purpose above and the results described below are based on the following theory of change:

If food and agriculture supply is better aligned with market demand;

If food safety and quality are increased;

If enterprise growth and employment in the food and agriculture sectors are increased; and

If partnership between public and private sectors to advance key social priorities is increased;

Then incomes for men and women will increase and the availability, affordability, convenience, and desirability of safe, diverse, nutritious foods will increase, Thereby increasing access to healthy diets, particularly among women and children.

Further, Ethiopia’s food and agriculture systems will be more competitive, inclusive, resilient, and sustainable.

For more information, see “Gender Analysis: Private Enterprise Project” (https://pdf.usaid.gov/pdf_docs/PA00WPCB.pdf); FTF Ethiopia Value Chain Activity

“Gender and Youth Action Plan” (https://banyanglobal.com/wp-content/uploads/2019/08/Gender-and-Youth-Action-Plan.pdf); and “Gender Analysis: Ethiopian Youth Empowerment Project” (https://pdf.usaid.gov/pdf_docs/PA00WPCD.pdf).

See (1): Jessica Fanzo, et al, Sustainable food systems and nutrition in the 21st century: a report from the 22nd annual Harvard Nutrition Obesity Symposium, The American Journal of Clinical Nutrition, Volume 115, Issue 1, January 2022, Pages 18–33, https://doi.org/10.1093/ajcn/nqab315; and (2): FAO. 2021. The

State of Food and Agriculture 2021. Making agrifood systems more resilient to shocks and stresses. Rome, FAO. https://doi.org/10.4060/cb4476en

USAID Climate Change Strategy 2022-2030, Official Draft https://pdf.usaid.gov/pdf_docs/PA00WPCB.pdf https://banyanglobal.com/wp-content/uploads/2019/08/Gender-and-Youth-Action-Plan.pdf https://pdf.usaid.gov/pdf_docs/PA00WPCD.pdf https://doi.org/10.1093/ajcn/nqab315 https://doi.org/10.4060/cb4476en https://www.usaid.gov/sites/default/files/documents/USAID-Climate-Change-Strategy-2022-2030-Offical-Draft.pdf

Over time, these outcomes will contribute to improved child development and lifelong productivity as well as to broader and more resilient economic transformation, prosperity, and equity.

C.4.2 Assumptions

Underlying the development hypothesis and intended results are a number of assumptions as outlined below.

These assumptions articulate factors that are critical to the theory of change such that the Contractor will be able to effectively program around this context to achieve the expected results.

● While internal conflict may continue, sufficient levels of stability will be maintained in the country, and in sufficient target geographies, to permit successful operations.

● COVID-19 will continue to impact the operating environment for years, but will not result in extensive market shutdowns.

● National scale market disruption is avoided, and there are sufficient market incentives to leverage.

● Agribusinesses want to grow and expand their reach.

C.4.3 Logic Model

The activity logic model recognizes that food and agriculture systems are complex adaptive systems that do not lend themselves to linear cause and effect models. Therefore, this logic model presents Intermediate Results (IRs) and Sub-intermediate Results (SIRs) as groups that in combination support the level above them, without explicit one-to-one causal relationships. Indeed, there are also feedback loops from IRs that also serve to advance SubIRs. As an example, there is a feedback loop where increased employment (SIR3) increases incomes (IR2), which can then serve as start-up capital to increase enterprise growth (SIR3). Guiding principles (see Section C.7) inform approaches to achieving all IRs and SIRs, including market systems facilitation, private sector engagement, gender equality, social inclusion, environmental sustainability, resilience building, and conflict sensitivity.

Figure 1: FAST Logic Model

C.5 EXPECTED RESULTS

The overall goal (or “purpose”) of FAST is to increase access to healthy diets, particularly for women and children, by improving competitiveness, inclusiveness, and resilience of the food and agriculture systems.

To accomplish this, FAST has three intermediate results (IRs), as described below. In order to succeed in delivering results across these IRs, the Activity must apply a market systems development approach, working to identify and minimize the root causes of current market failures, and to create incentives for existing market actors (such as agribusinesses, service providers, and financial institutions) to invest in developing solutions which will be sustained after the period of performance ends.

C.5.1 Intermediate Results

To achieve the activity objective, FAST will seek to improve all four dimensions of the food environment:

availability (IR1), affordability (primarily through increased purchasing power via increased incomes) (IR2), and convenience and desirability (IR3). Each of these IRs is described below.

IR 1: Increased availability of safe, diverse, nutritious foods

Increased availability of the foods needed for a healthy, productive life is a prerequisite to increasing access to healthy diets. FAST will employ a systems approach to increase availability30 of these foods year round in the FTF ZOI. Considering that very few households currently consume a healthy diet, households will need to increase the proportion of food acquired via purchase to meet dietary needs. Systems for tracking availability in local markets throughout the year are important to assess progress.