Palladium International

Business Advisory Service Providers

Palladium International

Job Description

April 1, 2021 Request for Proposal (RFP) RFP #: 217788-2021-03 BAS Providers RFP Issue Date: April 1, 2021 Feed The Future Ghana Mobilizing Finance in Agriculture (MFA) Closing Date and Time May 7, 2021, and 5:30 PM Contact Person Philip Djabatey Details for Submission GhanaMFA.Procurement@thepalladiumgroup.com As implementer for the Feed the Future Ghana Mobilizing Finance in Agriculture (MFA) activity, Palladium invites you to submit a proposal for the terms of reference below. Your proposal must be valid for the Validity Period.

Please submit your proposal in accordance with the Details for Submission above by the Closing Date and Time. This RFP in no way obligates Palladium to award a contract nor does it commit Palladium to pay any cost incurred in the preparation and submission of a proposal. Palladium bears no responsibility for data errors resulting from transmission or conversion processes.

I look forward to your response. If you have any queries, please do not hesitate to contact Philip Djabatey at+ 233 27 4350305 or by e-mail GhanaMFA.Procurement@thepalladiumgroup.com Yours sincerely, Dr. Victor Antwi Chief of Party Company Information

Palladium is a global leader in the Design, development and delivery of Positive Impact— the intentional creation of enduring social and economic value. We work with corporations, governments, foundations, investors, communities and civil society to formulate strategies and implement solutions that generate lasting social, environmental and financial benefits.

Project

The Feed the Future Ghana Mobilizing Finance in Agriculture (MFA) Activity is a $19 million, 4-year USAID Activity that aims to increase commercial financing availability for agriculture to facilitate capital investment and promote trade. MFA will leverage financial incentives to spur agricultural finance market behavior change and system reform, leading to more inclusive Economic Growth through agribusiness development.

Background

In order to unlock agricultural finance in Ghana, the Feed the Future Ghana Mobilizing Finance in Agriculture (MFA) Activity will facilitate transactions to drive capital investment and trade in selected value chains in Ghana: maize, soy, groundnuts, cowpea, shea, cashew, mango and other high value export crops. It will leverage performance-based incentives to enhance the capacity of Business Advisory Service Providers (BASPs) to close deals, as well as catalyse Financial Institutions’ (FIs) engagement with the target sector. Over the four-year period of performance (2020-2024), MFA will unlock $261 million in investment, in addition to spurring agricultural finance market behaviour change and system reform to drive sustainable agricultural lending and inclusive growth.

Purpose

MFA will engage BASPs to assist enterprises operating in Ghana to access business Advisory Services in order to obtain finance and investment, as a part of our effort to mobilize $261M in financing by October 2024.

This tender seeks to subcontract Business Advisory Service Providers (BASPs) under a Pay-for-Performance incentive program that encourages deeper engagement of M-SMiLEs in target the sectors within Ghana. To become eligible under this Tender, BASPs must demonstrate a track record of successfully assisting enterprises to secure financing (debt/equity/grants or other forms of financing) in the targeted sectors, as highlighted below. The objective is to create a vibrant network of BASPs competing to close capital and financing opportunities. Therefore, MFA intends to engage multiple BASPs through this procurement.

Sector and Geographic scope of the assignment

BASPs will be eligible to receive success fee commissions for facilitating finance and investment to M-SMILEs in the maize, soy, groundnut, cowpea, shea, cashew, mango and other high value export crops. Enterprises supported by BASPs to access finance and investment must be conducting business in the above listed value chains (VC). Examples of value chain actors eligible for support include input dealers, producers, processors, aggregators, storage service providers, traders, retailers, exporters, agriculture logistics firms, and technology providers.

There are three categories of transactions under this subcontract:
  1. Maize, soy, cowpea and groundnut value chain deals. BASPs may provide investment and credit facilitation services for a success fee commission for each transaction that supports USAID’s Feed the Future Initiative. Approved enterprises must be located within or must work with suppliers/producers located within the Feed the Future Ghana Zone of Influence’s (ZOI) 17[1] Districts across four regions (Northern, North East, Upper East, Upper West). The BASP’s client enterprise must be located in, selling to, or buying from any of these districts in the country to qualify for success fees.
  2. Trade acceleration value chain deals (High value export crops, including but not limited to Shea, Cashew and Mango). Diversification into higher-value crops of agricultural transformation that offers the potential to pull farm households by connecting them to more lucrative domestic and international markets and diversifying their incomes. Approved enterprises for the value chains within this section must be operational within Ghana.
Other high value crops not explicitly mentioned in this paragraph must be approved on a case-by-case basis by the MFA team before a BASP will qualify for success fee for facilitating finance and/or investment for an enterprise within those value chains.

  1. Cocoa deals. BASPs may provide investment facilitation services for the specific activities in the cocoa value chain related to cocoa tree planting and processing. Transactions supporting harvesting, collecting, or trading will not be eligible. For all cocoa deals, the BASP must seek approval from MFA before providing any services and MFA reserves the right to disqualify any transaction from being eligible in this value chain.
Type of Contract and Ceilings

The contracts that will result from this RFP will be Firm Fixed Price subcontracts. Selected BASPs will be subcontracted for an initial fee ceiling amount, up to a maximum of $80,000 USD, as determined at the time of contracting for the first year. MFA will reward high-performing BASPs with an increase to their subcontract ceilings. MFA will review the performance of the BASP every six months and evaluate whether an adjustment (increase or decrease) to the awarded ceiling is warranted. Any additional subcontract renewal ceilings will be based on historical performance via modification to the existing agreement.

Anticipated Contract Term

Subcontracts will be offered to approved applicants for a period of 12 months with the option for renewal based on performance and the availability of funding, at the sole discretion of the MFA team. Renewal, extensions, or modifications may be granted up to an additional 12 months, but not beyond October 26, 2024.

Timeline

Submissions for this program are due not later than May 7, 2021. Two weeks after the advertisement of the RFP, Palladium will hold an informational session for interested bidders. In this session, there will be a presentation with an overview of the program, instructions on how to apply and the evaluation methodology, and a chance for bidders to ask questions. Answers to questions will be circulated to all attendees as well as all contacts who have expressed interest in the RFP up until that date.

BASPs who will request and respond to the Full RFP by May 7, 2021, will have their proposal evaluated and successful candidates signed onto the MFA BAS Network by May 21, 2021. BASPs that do not meet the May 7, 2021 deadline may still be able to join the program through a separate rolling application.

The anticipated start date would be immediately after contract signature. **
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