USAID’s Avansa Agrikultura Project

                                                                     Request for Application (RFA)

Issuance Date:                                                                              September 4^th, 2018

Deadline for Receipt of Questions:                                         September 28^th, 2018

Closing Date/Time for Submission of Applications:           October 5^th, 2018

Informative Sessions Dates:                                                     Details to be announced through media, the tentative schedule is at the end of this RFA

SUBJECT:           Request for Application (RFA) Number: AID-472-C-15-00001-RFA-#009-Support Women Entrepreneurs Food Preservation

USAID’s Avansa Agrikultura Project in Timor-Leste is seeking applications from qualified, legally registered US and Timorese non-profit, for-profit, and non-governmental organizations (NGOs) for a grant agreement to support entrepreneurs or already established women owned businesses in small-scale food preservation.

The Successful Applicant will be responsible for ensuring achievement of specified grant objectives. Please refer to Section 1 – Funding Opportunity Description for a complete statement of goals and expected results.

This RFA consists of the following sections:

1.      Section 1 – Funding Opportunity Description

2.      Section 2 – Grant Award Information

3.      Section 3 – Eligibility Information

4.      Section 4 – Application and Submission Information

5.      Section 5 – Application Review Information

6.      Section 6 – Grant Award and Administration Information

7.      Section 7 – Annexes

Pursuant to 22 CFR 226.81, it is USAID policy not to award profit under assistance instruments. However, all reasonable, allocable and allowable expenses, both direct and indirect, which are related to the grant activity and are in accordance with applicable cost standards (22 CFR 226, 2 CFR 230 for non-profit organizations, the Federal Acquisition Regulation (FAR) Part 31 for for-profit organizations, and 2 CFR 220 for educational institutions), may be paid under the Grant.

Subject to the availability of funds, the Project intends to provide approximately US$ 30,000 in total funding to be allocated over a one-year period.  Maximum amount of a single grant to be awarded under this RFA is US$6,000.

The Project reserves the right to fund any or none of the applications submitted. Issuance of this RFA does not constitute a grant commitment on the part of the Project, nor does it commit the Project to pay for costs incurred in the preparation and submission of an application. Further, the Project reserves the right to reject any or all applications received if such action is considered to be in the best interest of the US Government. Applications are submitted at the risk of the Applicant; should circumstances prevent making a grant, all preparation and submission costs are at the Applicant’s expense.

Applicants should submit any questions concerning this RFA in writing to USAID’s Avansa Agrikultura Project Grants and Subcontracts Manager, electronically, via email at grants@avansaag.com . The deadline for receipt of requests for clarifications/explanations is September 28^th 2018. No questions will be accepted after this date.

Applicants should submit applications electronically, referencing RFA No. AID-472-C-15-00001-RFA-#009, via email at grants@avansaag.com . The Closing Date for Submission of Applications is October 5^th 2018 and the Closing Time for Submission of Applications is 17:00 hour’s local, Timor-Leste time. Applications that arrive after this deadline will not be considered.

Section 1 – Funding Opportunity Description

A. Background

The USAID’s Avansa Agrikultura Project in Timor-Leste is a horticulture value chain activity aimed at addressing the key challenges in rural poverty, natural resource degradation, and food insecurity and under nutrition. The value chain approach will be applied in achieving increased productivity along key horticulture value chains that include vegetables, fruits, and legumes. Through the promotion of sustainable production practices, increased functionality of farmer groups and associations, improved market linkages, and increased availability and access to quality agricultural inputs and services, including access to finance, the project will aim to stimulate and support increased economic activity and growth in targeted rural communities and districts.

The purpose of this RFA is to solicit applications to support the Project in the achievement of its program objectives, specifically to support entrepreneurs or already established women owned businesses in small-scale food preservation.

B. Program Description

B.I. Background on the specific grant activity

The World Food Program has found that despite development efforts, 40% of the population still live in poverty in Timor-Leste and malnutrition rates of the country among the highest in Asia.

According to the FAO and WHO, traditional food preservation practices can be used to increase and fortify a Timorese diet in the absence of markets and inadequate income.  The preservation practices can fill the nutrients gaps (vitamins and minerals) in a daily diet, as well during the lean or hungry season when farmers are waiting for maize or rice harvest.  It is believe that food preservation practices not only extend the lifespan of Timorese produce, but also promote food security and food variety for Timorese livelihoods.  On a national scale, food preservation practices could reduce the dependency of rural and urban populations on the costly imported foods, and create local business opportunities. 

USAID’s Avansa Agrikultura Project has observed while working with the farmers, excess fresh fruits and fresh vegetables produced are wasted when buyer only take certain quantity and there is a lack of storage facilities. There is also a lack of knowledge on how to produce value-added foods or food preservation techniques. The agribusiness survey conducted by the project in 2017 shows that about 31.71% farmers experience hunger at some point from December to May, especially during the heavy rains. The project wants to assist with increasing food security through food preservation techniques.

The project is also aware of traditional jarring occurring in the rural areas and would like to expand on that. Through the grants program we would like to help women, who are jarring already, to expand, create more employment opportunities, and increase their incomes. In addition, the grants will support women who are interested in starting a business in food preservation.

B.II. Goals and objectives of the activity

The goal of this Request for Applications (RFA) is to support women entrepreneurs to develop or expand their food jarring/drying businesses.

The objectives are:

1.      To support up to ten women to expand or develop food preservation businesses;

2.      Promote traditional jarring as a way to reduce hunger and increase food security;

3.      To create income-generating opportunities for women

By working toward fulfilling the above objectives, it is expected the grants will support the traditional Timorese jarring to fill the nutrient gaps during the lean or hungry season and reduce dependency  imported processed  while creating sustainable job opportunities for women. While also creating employment opportunities and increasing incomes of women-owned businesses.

B.III. Expected deliverables

1.      Applicants must participate in food jarring/food drying training that will be provided by the project.

2.      Those who attended the training will be eligible to apply for this grant.  

3.      Applicants are expected to submit their business plan and design on their product. If a product is already being produced the applicant will present sample of their products with the tested recipes.  The business plan must specify which product the applicant will jar or dry, expected costs, and who the market is. The plan should also include an assessment of which products they will jar based on what the market will demand, particularly will people in their area eat it.

The fresh fruits and vegetables jarring/drying can be in the forms of the following taste using seasonal/available fruits and vegetables:

a.      Sweet, sour, salty and/or spicy pickles

b.      Sweet and/o salty sauces

c.      Chutney (Molho)

d.      Relish (Salga)

e.      Dried products

It is expected that the grant recipient(s) will use the contribution grant offered to expedite all the activities base on the agreement. The grant recipient(s) are expected to:

1.      With support from the project, successful applicants will start-up and register their business, if this has not been done already.

2.      The grant recipient will be expected to participate in food preservation training prior to awarding this grant, and participate in other training programs the project is provided to improve their technical and business skills. The food preservation training will only be required if the applicant is not already working in this area.

B.IV. Expected results

Grant activity must contribute to fulfilment of the expected results listed below.

1.      Support up to ten new/established women-owned businesses to involve in food preservation.

2.      Support traditional Timorese jarring and drying as a viable food option during hunger season.

3.      Increase full-time and part-time employment for women in agribusiness.

4.      Increase income for households involved in the activity.

B.VI. Performance Monitoring Plan

Results of the activities (as per defined in the application and grant agreement) will be measured through regular monitoring and follow-up.  Grant recipient(s) will provide information needed for monitoring and evaluation purposes during and after activity implementation. USAID’s Avansa Agrikultura Project will treat as confidential any information that is determined sensitive in regards to competition.

Section 2 – Grant Award Information

Subject to the availability of funds, the Project intends to provide grants to be allocated over a twelve-month period. The anticipated period of performance of the grant is expected to be between September 2018 and July 2019. The Project anticipates awarding Fixed Amount Awards (FAA) under this RFA. Under the FAA, all payments will be fixed amount payable upon achievement of milestones/accomplishment of benchmarks, which will be defined in detail during grant agreement negotiations.

Section 3 – Eligibility Information

Eligible organizations shall be able to comply with and achieve the proposed Program Description, Tasks, and Results and have a satisfactory performance record and record of integrity and business ethics. Eligible organizations include legally registered US, Timorese non-for-profit, for-profit, and non-governmental organizations (NGOs).

Prior to the award of grant under this RFA, successful applicants will be required to sign a Certification Regarding Terrorist Financing certifying that the applicant’s organization does not provide and has never provided assistance to terrorists for terrorist activities. Successful applicants may also be required to sign other Certifications as applicable to the grant award. The Certifications are attached as Annex A of this RFA.

Ineligible organizations include:

·        Public International Organizations;

·        Entities that have misused USAID funds in the past, organizations that advocate, promote or espouse anti-democratic policies or illegal activities;

·        Political parties or institutions;

·        Organizations that intend to use the grant for religious objectives;

·        Organizations that are on the list of parties excluded from federal procurement and non-procurement programs or the United Nations Security Sanctions Committee.

Minimum qualifications for applicants to participate in this RFA include have knowledge about how to run a business and understand their market for their proposed product and participate in food preservation training provided by the project.

Contribution cost is required by the Project for this activity, and the amount of contribution cost proposed by grantees will be considered when evaluating the cost effectiveness of applications.

Contribution may include:

·        Project costs financed with cash or in-kind contributions, either provided by the grantee or other donors;

·        Unrecovered indirect costs;

·        Volunteer services furnished by professional and technical personnel, consultants, and other skilled and unskilled labor if the services are a necessary part of the grant activity. Rates for volunteer services will be consistent with those paid for similar work in the grantee’s organizations;

·        Donated supplies (such as expendable equipment, office supplies, etc.), non-expendable equipment, buildings, and land. Values for donated supplies, equipment, buildings and land will be reasonable and will not exceed their fair market value.

Contribution cost must meet the following criteria:

·        Verifiable from the grantee’s records;

·        Not included as contributions for the any US Government project or program;

·        Necessary and reasonable for the accomplishment of grant objectives;

·        Allowable under the applicable cost principles;

·        Not paid by the Federal Government under another grant;

·        Provided for in the approved budget.

Program income is defined as gross income earned by the grantee that is directly generated by a supported activity or earned as a results of a grant award. Program income includes, but it is not limited to, income from fees for services performed, the use or rental of property, including equipment, acquired under the grant agreement; the sale of commodities or items produced under the grant agreement, and interest on loans made with grant funds.

In the event that a grant activity result in program income earned during the period of performance of the grant, it will be retained by the grantee but must be used in one of the following ways:

a)      Added to the grant budget and used to further the grant objectives (this does not apply for any for-profit grantees);

b)      Used to finance the grantee’s contribution cost requirements; or

c)      Deducted from the total grant allowable cost on which the Federal share of costs is based

If program income is used based on a. and/or b. above, any program income in excess of the amounts that were used towards a. and/ or b. shall be used in accordance with c. above. Grantees will have no obligation to the US Government regarding program income earned after the end of the grant period of performance. Grantees also have no obligation to the US Government with respect to program income earned from license fees and royalties for copyrighted materials, patents, patent applications, trademarks, and inventions produced under a grant.

Environmental Compliance

The USAID’s Avansa Agrikultura Project will consider all potential environmental implications of proposed grant activities.

All applications must also meet and adhere to project environmental compliance requirements, which will be considered as part of the evaluation of the proposal, and during implementation. Proposals that will risk and adverse impact on the environment will not be considered without mitigation plans, and must be done in accordance with USAID’s Avansa Agrikultura Project Environmental Monitoring and Mitigation Plans.

Section 4 – Application and Submission Information

Applicants should submit applications electronically, referencing RFA No. AID-472-C-15-00001-RFA-#009, via email at grants@avansaag.com . The closing date for submission of applications is October 5^th, 2018 and the closing time for submission of applications is 17:00 hour’s local, Timor-Leste time. Late applications will not be considered.

All applications in response to this RFA shall consist of a technical proposal and a budget proposal. The technical proposal must be no longer than 10 pages in length. Pages submitted in excess of 10 pages will not be reviewed. The budget proposal shall be submitted as a separate file from the technical proposal. The required format for applications is included as Annex B - Full Application Format and Budget Format.

Section 5 – Application Review Information

Applications will be evaluated in accordance with the criteria set forth below. The criteria have been tailored to the requirements of this RFA. Applications should note that these criteria serve to: (a) identify the significant matters which Applicants should address in their applications; and (b) set the standard against which all applications will be evaluated.

To the extent necessary, the Project may request clarification and supplemental materials from Applicants whose applications have a reasonable chance of being selected for grant award. The entry into discussion is to be viewed as part of the evaluation process and shall not be deemed as indicative of a decision or commitment upon the part of the Project to make a grant award to the applicants with whom discussions are being held.

Applications will be evaluated by the Grants Selection Committee on the basis of 100 possible points. The weighting of various sections will be as follows:

1.       Understanding of the Key Issues (30 points): Does the applicant demonstrate a clear understanding of how to run a business?  Does the applicant have a creative business idea related to food preservation and understand who their market is?

2.       Grant Activity Goals and Objectives (20 points): Is the overall goal of the proposed grant activity clearly stated and achievable?

3.       Outcomes / Expected Results (15 points): Do the expected results of the proposed grant activities relate to the key issues and overall grant objective? Are anticipated results directly linked to a specific objective?

4.       Staffing/Management Plan (20 points): Does the proposed staffing/management plan reflect the personnel/management needs of the grant activity? Does the applicant propose personnel with experience and skills necessary to successfully implement the proposed activities?

5.       Cost Realism (15 points): Is the proposed budget realistic, well-thought out, and in-line with the proposed activities? Are the proposed costs reasonable, allowable and allocable to the grant? Is the grantee contributing cost-share and to what extent?

The selection of the Applicant for award will be made by the Project’s Grants Steering Committee (GSC). Prior to the award of any resultant grant agreement, the Project must obtain prior approval from USAID.

Section 6 – gRANT Award and Administration Information

Successful applicant(s) will receive written notice from the Grants and Subcontracts Manager informing the applicant(s) that the Project either intends to award a grant to the applicant without negotiation, or that the Project intends to engage the applicant(s) in further negotiations with respect to a potential grant award. Negotiations conducted after the receipt of an application do not constitute an obligation on the part of the Project to award a grant. Unsuccessful applicants will be notified in writing by the Grants and Subcontracts Manager.

Any resultant award will be subject to the terms and conditions of the Prime Contract for the USAID’s Avansa Agrikultura Project, 22 CFR 226 and the Standard Provisions for U.S. Non-governmental Recipients and for Non-U.S. Non-governmental Recipients.

Section 7: Annexes

Annex A:              Certifications

Annex B:              Full Application Format and Budget Format

Annex C:              Survey on Ensuring Equal Opportunity for Applicants

Grants Team

USAID’s Avansa Agrikultura Project

Email: grants@avansaag.com