Photo from USAID Feed the Future of a dairy farmer and a member of the USAID-supported Tebabren Dairy Cooperative 
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NEW: The USAID ATI Program held a Bidder’s Conference on Monday, July 24, for potential applicants to participate in an Information Session about the USAID SRO - Mauritania Milk and Animal Feed value chain opportunity. Questions and Answers from the Session are available here. A video recording of the Session is available here. 

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REQUEST FOR APPLICATIONS (RFA)

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FUNDING OPPORTUNITY FOR PRIVATE SECTOR GRANTS IN MAURITANIA

 

INNOVATIVE MARKET-LED APPROACHES TO ACCELERATE THE DEVELOPMENT OF THE MILK AND ANIMAL FEED VALUE CHAINS IN MAURITANIA

 

Name of Project:

USAID Africa Trade Investment: Food Security and Resilient Investment Opportunities

USAID

Sahel Regional Office

Reference Number:

RFA-02-Mauritania

Date of Issue:

June 21, 2023

Closing Date for Receipt of Applications:

August 11, 2023 CLOSED

Questions Submission Date

Submit your inquiry to RFA Questions. No later than: July 7, 2023

Question Response Date:

July 8-9 2023

 

OVERVIEW OF ATI

The USAID Africa Trade and Investment (ATI) program is designed to bolster the U.S. Government’s ability to boost trade and investment to, from, and within the African continent. The continent-wide program is USAID’s flagship effort in support of the Prosper Africa initiative and will expand and accelerate two-way trade and investment between African nations and the United States.

Driven by market demand, ATI embraces innovative approaches to achieve its goals. ATI is designed as a small, core set of centrally coordinated technical and institutional support activities, and a large, flexible performance-based subcontracting and grants-under-contract facility designed to support the needs and opportunities that USAID Missions and the private sector identify.

Following Russia’s invasion of Ukraine, USAID engaged ATI to facilitate private-sector partnerships that could rapidly scale access to and availability of agricultural inputs, technologies, and food in response to availability and price shocks across Africa.

PROGRAM DESCRIPTION

The Russia-Ukraine conflict continues to cause critical disruptions in food and agriculture value chains in the Sahel region. In Mauritania, food shortage and supply chain disruptions have caused unprecedented increases in food prices, further impacting the already high levels of food and nutrition insecurity. Given this situation, ATI seeks to identify innovative solutions in support of Mauritania’s milk and animal feed value chains.

Agriculture is the backbone of Mauritania’s economy. More than 40 percent of the population lives in rural areas, and an estimated 50 percent depends on agriculture for their income. Farming generates 25 per     cent of gross domestic product (GDP). The country produces enough red meat and fish for local consumption but imports 60 percent of other staple foodstuffs. Local food production is concentrated in a few value chains, including cereals (e.g., rice, maize, and sorghum), livestock (meat, milk, and feed/animal feed), vegetables, chicken, and dates. Livestock is the largest contributor to Mauritania’s food production, with meat and milk consumption being a major source of micronutrients. However, malnutrition rates are approaching or exceeding the emergency thresholds set by the World Health Organization and the country has made little progress to address low weight-for-height among children under five years of age.

Addressing the current high level of food and nutrition insecurity will require investing in local agribusinesses to increase productivity in key value chains. However, the financial sector is underdeveloped, with limited access to finance in the agriculture and food sectors. Currently, banks do not have appropriate agricultural lending products (i.e., agribusiness credit products, including their loan terms, grace and payback periods, and duration of the loans). The microfinance sector is relatively small, with a total credit stock in 2021 of about $19 million, and mostly focused on trade activities and consumer credit needs. Investments from international Development Finance Institutions (DFIs) have been sporadic, particularly for agriculture, due mostly to underwriting weak loans for the sake of reaching volume targets. Small private initiatives have very limited chances of receiving loans. In addition to limited opportunities to access finance, businesses lack training and technical expertise in financial, administrative and technical operations. 

Despite these challenges, Mauritania has significant potential in the dairy sector across different regions where it could benefit from improved productivity, conservation, and distribution. Milk is used as a drink traditionally offered to welcome visitors or just as a refreshment. The per capita consumption of milk and milk products is particularly high in the country at 0.46 kg/day, which is almost four times the average per capita consumption in Sub-Saharan Africa. However, total milk production is only around 12,000MT per year, and a deficit of around 30,000MT is covered by imports. Increased milk consumption can contribute to addressing some of Mauritania’s pressing nutrition requirements. A small industrial sector already operates in the country, but it remains insufficient to cover the demand; hence, large quantities of dairy products (particularly long-term pasteurized milk) are imported every year.

Private sector actors are willing to increase their investment in milk and animal feed value chains, but they have identified increased access to financing and technical assistance training as the main requirements to improve operations, acquire equipment, and expand their activities.

About 80 percent of feedstuff needs for local livestock are met through imports, despite Mauritania’s extensive opportunities for cultivation of forage crops. In addition, local animal feed production can contribute to the development of semi-intensive livestock practices and improved production of meat and milk. Given that the livestock industry is the largest contributor to Mauritania’s food production, increasing access to affordable animal feed for local dairy farmers and livestock herders provides an opportunity to scale up production and contribute to address some of the country’s food security challenges.

FUNDING OPPORTUNITY

The USAID/Sahel Regional Office (SRO), USAID Mauritania and ATI will support private sector initiatives that provide inclusive and sustainable investment opportunities to address the urgent food security and nutrition needs of Mauritania. The main objective of this intervention is to contribute to the sustainable development of commercial milk and animal feed value chains to fulfill the local demand for safe, nutritious food. The criteria for impactful interventions include the following: 

  1. Urgency: private sector led interventions that can provide innovative ideas to address access, availability and affordability of milk and animal feed products.  
  2. Scalability: interventions that can show impact at scale with potential to increase milk and animal feed production while building resilient food systems.  
  3. Impact: interventions that support entrepreneurship, particularly among women and youth, with a high number of people able to improve their livelihoods and increasing food security across the country.
  4. USAID additionality: demonstrates value of USAID support in enabling a market-based approach that achieves intended outcomes.

Applicants are asked to demonstrate their understanding of one or both of milk and/animal feed value chains by proposing sound approaches and the expected impact of their proposed activity.

For the milk value chain, some illustrative activities include, but are not limited to:

  1. Support the development or expansion of milk collection centers in rural areas.
  1. Support the development of milk sourcing networks in Mauritania targeting smallholder farmers, particularly women and youth farmers.
  2. Improve the conservation and transportation of milk across the country and especially in rural areas.
  3. Increase climate-smart agriculture techniques in the milk value chain.
  4. Scale production to meet local demand for milk and dairy products.
  5. Provide training to smallholder farmers on milk handling.
  6. Support processing of milk into sustainable dairy products.
  7. Support the fortification of dairy products to increase nutritional benefits to the population, especially for children under 5.

For the animal feed value chain, some illustrative activities include, but not limited to:

  1. Expand animal feed production through growing different climate-     smart crop species using relay cropping for carbon accumulation that maintains a positive nitrogen balance.
  2. Improve transportation of local animal feed in the country to increase access for farmers.
  3. Increase climate-smart agriculture techniques and innovative climate-smart approaches in the animal feed value chain, such as effective use of water, composting & application of organic fertilizer, and integrated soil fertility management.

Prospective grantees may propose additional activities to promote food and nutrition security.

The application should indicate the following:

  • Level of scale/reach achievable (number of beneficiaries)
  • Ability to reach vulnerable populations, particularly women and youth
  • Ability to support smallholder farmers
Demonstrated co-investment by the organization

AWARD INFORMATION

Grant Size and Type: ATI will issue performance-based grants ranging from $100,000 to $500,000 to establish partnerships with firms meeting the objectives stated in the RFA. Grant sizes of smaller or larger amounts may be considered, should the proposed activity meet the objectives of the RFA.

Performance-Based Grants: The preferred performance-based grant will be a Fixed Amount Award (FAA) agreement under USAID rules. Payment under FAA grants are made upon accomplishment of predetermined results, referred to as milestones. Milestones are agreed upon between ATI and the partner prior to the grant being awarded.

Although the FAA is the preferred grant mechanism under this APS, ATI will conduct capacity
assessments of all potential grantees in which their mode of award will be determined based on the
financial and administrative capabilities of the applicant. Other modalities of awards may include an in-
kind grant, standard grant, simplified grant, or a combination of FAA and in-kind grants, but this is
dependent on ATI’s determination of the potential grantee’s capacity.

If ATI’s assessment identifies weaknesses or deficiencies that call into question the applicant’s ability to
manage the award, ATI may elect to remove the applicant from consideration under this funding
opportunity or select a mechanism more appropriate for the applicant’s current financial, administrative
and operational capacity. The applicant will agree to the metrics and verification methods of awards
during the development of the full application, giving latitude to the partner on how it will accomplish
the agreed objectives. DAI reserves the right to fund any or none of the applications submitted.

Performance Period: The performance period of grants will be no more than 12 months.
In response to this solicitation, potential grantees may propose their own alternate timelines, work plans, and level of effort associated with the various components of the activity in line with their proposed approach.
 
Place of Performance: The place of performance is Mauritania.
Potential grantees should provide details on their justification for targeting and approach to working in relevant areas of the country as the activity requires. The selected firm(s) will report to the ATI team based in Nairobi, Kenya in coordination with the USAID Sahel Regional Office and USAID Mauritania.

 

EVALUATION CRITERIA

Applications submitted in response to this RFA must include the following information in line with ATI Objectives via the application form:

1) Project Description: Through direct grants to the private sector, ATI will support the sustainable development of the commercial milk and animal feed value chains to fulfill local demand for safe, nutritious food. Innovative and effective approaches for bolstering the milk and animal feed value chains are encouraged, including production, transportation and conservation, as relevant. Reaching diverse geographic zones in Mauritania that serve disadvantaged groups, including women and youth, is a priority. As highlighted above, illustrative activities could include expanding access to and production of animal feed using local inputs through funding the development of pilot testing projects or increasing milk collection networks across Mauritania.                                                              .

The applicant must provide a detailed description of the project, specifying its goal, activities, and results. These should be in line with the overall objective of the grant. Sections should be structured as follows: detailed description of purpose/summary, background, project goals, and detailed description of anticipated activities/outcomes.

2) Monitoring (Results and Benchmarks):ATI will provide small grants to support the milk and animal feed value chains as stated in the funding opportunity section. Selected partners are required to demonstrate how their interventions will contribute to achieving the objectives of this activity including the goal of increasing food security in the country. The applicant should define, to the maximum extent possible at the application stage, results, and benchmarks for monitoring the performance towards attainment of program objectives. The selected applicant must include the following indicators to track performance:

  • Number of individuals participating in USG food security programs, disaggregated by age and gender
  • Number of supported firms reporting improved business performance

Please explain how your organization will monitor the implementation and performance of the project and indicate additional indicators per activity that will be used to assess the progress and performance of the project, and the achievement of the expected results.

ATI will work closely with the selected private sector partner to develop a Monitoring, Evaluation and Learning (MEL) plan following existing ATI and USAID requirements for this grant. ATI will also work with the partner to use USAID’s Collaboration, Learning and Adaptation (CLA) approach to address implementation of activities and to measure results. The partners will be required to maintain all relevant data and report results on a quarterly basis as agreed with ATI. ATI will conduct data quality assessments, as necessary. The private sector partners must be willing to share results for at least a six-month period following the completion of their grant implementation for ATI and USAID to evaluate the results of this intervention.

3) Sustainability: The applicant should describe how the project, or its benefits will continue after grant funding ends. What measures are being put in place to ensure sustainability?

4) Organizational Capability: The application shall include information that demonstrates the applicant's expertise and ability to meet or exceed the goals of this program.

Organizational capacity should include information on sound management systems, with regards to financial, administration, internal policies and procedures and controls that safeguard against fraud, abuse, and waste.

5) Personnel: The applicant should propose up to three key personnel and give a description of their roles and responsibilities. Each applicant demonstrates the key personnel’s ability to perform the duties outlined in the program description/statement of work and in accordance with the applicant’s approach. ATI will evaluate the CV to determine the individual’s knowledge, skills and abilities. Key personnel are those critical of implementation only and do not include administrative or support staff.

6) Past Performance: Applicants must present evidence of their experience in undertaking similar activities. Applicants may include descriptions of two (projects or other similar activities). ATI will request references that should include clients’ names and telephone numbers.

7) Budget: All proposals must include a completed budget in US dollars.

8) Milestones: the application must contain a table with milestones that the private sector partner and ATI will track during the implementation of this program.

The applications will be evaluated according to the evaluation criteria set forth below. To the extent necessary (if the award is not made based on initial applications), negotiations may be conducted with each applicant whose application, after discussion and negotiation, has a reasonable chance of being selected for award.  Award will be made to responsible applicants whose applications offer the best value.

Awards will be made based on the ranking of applications by the review panel according to the evaluation criteria and scoring system identified below:

Urgency Private sector led interventions that can provide innovative ideas to address access, availability and affordability of milk and animal feed products. (30%)

Scalability: Interventions that can show impact at scale with potential to increase milk and animal feed production while building resilient food systems. (20%)

Impact: Interventions that support entrepreneurship particularly among women and youth with high number of people able to improve their livelihoods and increasing food security across the country. (30%)

Additionality: Interventions that demonstrate value of USAID support in enabling market-based approaches that achieve intended outcomes. (20%)

APPLICATION PROCESS

Who Can Apply for the grant?

Eligible applicants:

  • Applicants must demonstrate that it falls into one of the grantee categories below:
    • Private Sector Companies – local (within Mauritania) and international firms (outside of Mauritania). International firms must demonstrate a clear understanding of Mauritania’s local context and must demonstrate existing relationships with relevant local stakeholders. Mauritanian firms will be given preference in the selection process.
    • Foreign Organizations (referred to as non-U.S. NGOs): either nonprofit or for-profit organizations that meet the definition in 2 CFR 200.47. 
    • Non-profit Organizations: organizations that meet the definition of 2 CFR 200.70.
  • In addition, an applicant must be organized under the laws of the country in which it has its principal place of business or operations in.

Ineligible applicants:

  • Any organization not legally organized under the laws of the country in which it has its principal place of business or operations in;
  • Any entity listed in the U.S. government Excluded Parties List;
  • Any entity unable to obtain a Unique Entity Identification Number (UEI); **
  • Any entity excluded in the US Government System for Award Management;
  • Any Government Entity;
  • Any Public International Organization (PIO);
  • Any entity affiliated with DAI or ATI directors, officers, or employees;
  • Any projects involving involuntary resettlement, child labor, or significant environmental impacts;
  • Any military organization;
  • Any political party organization;
  • Any entity focused solely on religious activities;
  • Any labor unions; and,
  • Any individuals.

Application Submission Instructions & Deadline

Application

Application documents must include the following

  • Complete Annex A. Application Form. This annex asks for information on the project description, applicant leverage (as applicable), monitoring and results, and other activity information. Responses should be specific, complete, and presented concisely.
  • Complete Annex B. Work Plan. The implementation plan should be detailed and include tasks, outputs, partners, and responsible persons. It may be no more than three years or extend past March 2026. Monitoring and evaluation efforts must also be included.
  • Complete Annex C. Budget and Budget Notes. In the budget, request and explain the key cost items required for the support. Full instructions on budgeting are found in the annex to the first tab called Budget Instructions. You must submit cost verification documents for each budget line item to demonstrate that the amount you budgeted is based on actual cost or market price.
  • Complete Annex D. Milestone Table. The Activity recommends a fixed amount award (FAA) as the best grant mechanism per the anticipated program description. This means you will be paid an agreed-upon amount for completed milestones. This annex asks you to propose those milestones, means of verification, due dates, and amount per milestone.

Applications must be submitted in English. Applicants can use any translation tool or service of their preference. Applicants will not be evaluated on the quality of the translation.

Page Limitation: Applications should be specific, complete, presented concisely and shall not exceed 10 pages (exclusive of annexes).

 In accordance with ADS303.6, DAI is required to establish the applicant organization’s nationality to determine its eligibility to receive the requested grant. Complet Appendix A. Grantee Nationality Self Certification Form.

Submission Instructions:

To apply for funding interested applicants must submit all applications (including all annexes) via the RFA-02-Mauritania (Application Submission)

Late Applications 

All applications received by the deadline will be reviewed for responsiveness and programmatic merit according to the specifications outlined in these guidelines and the application format.  Applications which are submitted late or are incomplete run the risk of not being considered in the review process.

AWARD AND ADMINISTRATION INFORMATION

1. Award Determination
 
ATI reserves the right to reject any or all applications at any point during the co-design and pre-award
risk assessment phase. USAID may also approve or reject applications submitted to them for review and
approval.
 
Issuance of this RFA does not constitute an award commitment on the part of ATI, nor does it commit
ATI to pay for costs incurred in the preparation and submission of an application. Applications are
submitted at the risk and the cost of the applicant.
 
2. Award and Administration Information

Please note that while the Grants Team will explain rules and requirements to each awardee, the
following award requirements will apply:

a) Administration of Award

Awards to U.S. organizations will be administered in accordance with 2 CFR 200 Subpart E, ADS 303 and
USAID Standard Provisions for U.S. non-governmental organizations. For non-U.S. organizations, USAID
Standard Provisions for non-U.S. non-governmental organizations apply. Applicants may obtain copies of
the referenced material at the following websites:

b) Important USAID Compliance Information

  • Certifications, Assurances, Other Statements of the Recipient and Solicitation Standard Provisions - In accordance with ADS 303.3.8, ATI will require awarded grant partners to submit signed copies of required certifications and assurances. ADS 303 may be found at the following website: usaid.gov/sites/default/files/documents/303.pdf.
  • Unique Entity ID (SAM) - Effective April 4, 2022, entities doing business with the federal government will use the Unique Entity Identifier (SAM) created in (sam.gov). The Unique Entity ID (SAM) is a 12-character alphanumeric value managed, granted, and owned by the U.S. government. This allows the government to streamline the entity identification and validation process, making it easier and less burdensome for entities to do business with the federal government. All foreign organizations which receive a grant with a value of USD 25,000 and above and all U.S. organizations which receive a grant of any value are required to obtain a Unique Entity ID (SAM) and complete full www.sam.gov registration. Organizations are exempt from this requirement if the gross income received from all sources in the previous tax year was under USD 300,000. DAI requires that grant applicants sign the self-certification statement if the applicant claims exemption for this reason.
  • Branding and Marking - All USAID-sponsored assistance awards are required to adhere to branding and marking requirements in accordance with ADS 320. ADS 320 may be found at the following website: https://www.usaid.gov/about-us/agency-policy/series-300/320. ATI’s Branding and Marking Plan allows for co-branding with the grantee and USAID. The Activity must approve all communications materials produced under this grant before printing or publication. Grantees must follow the guidelines set forth in the USAID Graphic Standards Manual and accompanying Prosper Africa Graphic Standards Manual: USAID Graphic Standards Manual and Partner Co-Branding Guide | Branding | U.S. Agency for International Development and Prosper Africa Graphic Standards Manual | Prosper Africa | U.S. Agency for International Development (usaid.gov)
  • Environmental Procedures - The impact of USAID’s activities on the environment and environmental sustainability must be a central consideration when designing and implementing an activity. Potential environmental impacts of the grant must be identified prior to a final decision to proceed and appropriate environmental safeguards must be adopted for all activities The grantee must comply with host country environmental regulations unless otherwise directed in writing by USAID. In case of conflict between the host country and USAID regulations, the latter will govern. No activity funded under this grant will be implemented unless an environmental threshold determination, as defined by 22 CFR 216, has been reached for the grant, is properly documented, and signed by the Bureau Environmental Officer (BEO). ADS 200 may be found at the following website: https://www.usaid.gov/environmental-procedures/laws-regulations-policies/22-cfr-216
  • Reporting Requirements - Project implementation reporting will be determined based on the planned activities and the delineation of roles and responsibilities. There will be milestone reporting, quarterly progress reports, environmental reporting, and a final grant report. A Performance Monitoring and Evaluation Plan with indicators and targets will also be agreed upon. Grant recipients will be expected to facilitate monitoring during and beyond the life of the grant through June 2026 by making relevant information available to ATI staff.
  • Payments and Use of Funds - The Activity will make grant payments in local currency. The grant recipient must use the funds provided exclusively for activities specified in the Program Description. Diversion of grant funds to other uses will result in the cancellation of award and retrieval of funds disbursed to the grant recipient.
  • Permitted Uses of Program Income - The grantee will be expected to account for program income in accordance with 2 CFR 200.307. In accordance with 2 CFR 200.307 (e)(2), program income earned under this award will be added to funds committed by ATI and the recipient to the project or program and used to further eligible project or program objectives. Additionally, in accordance with 2 CFR 200.307(e)(3), program income may be used to finance the non-Federal share of the project or objectives.
  • Prohibited Countries - The US Government does not do business with, i.e., purchase goods or services from, prohibited source, nationality, and country of origin. The current list of countries under comprehensive sanctions include Cuba, Iran, North Korea, and Syria.
  • Ineligible Goods, Restrictions, and Unallowable Costs - The grant funds provided under the terms of this agreement must not be used to finance any of the following:
    • Goods or services which are to be used primarily to meet military requirements or to support police or other law enforcement activities,
    • Surveillance equipment,
    • Equipment, research and/or services related to involuntary sterilization or the performance of abortion as a method of family planning,
    • Gambling equipment, supplies for gambling facilities or any hotels, casinos or accommodations in which gambling facilities are or are planned to be located,
    • Activities which significantly degrade national parks or similar protected areas or introduce exotic plants or animals into such areas, or
    • Establishment or development of any export processing zone or designated area where the labor, environmental, tax, tariff, and/or safety laws of the country in which such activity takes place would not apply.
    • Pharmaceuticals or pesticides (may be allowable with written approval)
    • Logging equipment,
    • Luxury goods (including alcoholic beverages and jewelry),
    • Establishing or expanding any enterprise that will export raw materials that are likely to be in surplus in world markets at the time such production becomes effective and that are likely to cause substantial injury to U.S. producers,
    • Activities which would result in the loss of forest lands due to livestock rearing, road construction or maintenance, colonization of forest lands or construction of dams or other water control structures,
    • Activities which are likely to have a significant adverse effect on the environment, including any of the following (to the extent such activities are likely to have a significant adverse impact on the environment):
      • Activities which may lead to degrading the quality or renewability of natural resources;
      • Activities which may lead to degrading the presence or health of threatened ecosystems or biodiversity;
      • Activities which may lead to degrading long-term viability of agricultural or forestry production (including through use of pesticides);
      • Activities which may lead to degrading community and social systems, including potable water supply, land administration, community health and well-being or social harmony.
    • Activities which are likely to involve the loss of jobs in the United States due to the relocation or expansion outside of the United States of an enterprise located in the United States, or
    • Activities which the Grantee is aware are reasonably likely to contribute to the violation of internationally or locally recognized rights of workers,
    • Bad debts
    • Contributions or donations
    • Deferred Research and Development Costs
    • Entertainment costs or lobbying costs
    • Fines or penalties
    • Goodwill
    • Interest (Interest on taxes, issuing stock rights, Cost of financing or refinancing capital)
    • Public Relations and Advertising Costs
    • Company holiday parties or picnics
    • Taxes (such as income/profit tax) and PROFIT
    • Bribes
    • Goods or services from vendors or individuals with active exclusions on SAM.gov
    • Goods or services with source, origin, transported through, or nationality from a Prohibited Country – currently Iran, North Korea, Syria, and Cuba.
    • Costs that are being paid for by another donor or funding source, including other US government funding, (i.e., disproportion allocation of costs amongst multiple donors)
    • Costs purchased from vendors, employees, or other sources with Conflicts of Interest.
    • Payments to government officials

Issuance of this RFA does not constitute an award commitment on the part of ATI, nor does it commit ATI to pay for costs incurred in the preparation and submission of an application.  Further, ATI reserves the right to reject any or all applications received.  Applications are submitted at the risk of the applicant.  All preparation and submission costs are at the applicant's expense.