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Request for Application (RFA) Issuance Date: ....................................................19.09.2016 Deadline for Receipt of Questions: ..................05.10.2016 Closing Date/Time for Submission of Applications: .......................19.10.2016 SUBJECT: Request for Application (RFA) Number: RFA-004-2016 Support to Economic empowerment of women through value adding in MAP and Honey Sector USAID/Sweden Fostering Agricultural Markets Activity II (the Activity), a United States Agency for International Development (USAID) and the Government of Sweden-funded activity, is seeking applications from qualified, legally registered BiH non-profit, for-profit, and non- governmental organizations (NGOs) for a grant award to implement activities on Support to economic empowerment of women through value adding in MAP and honey sector. The applications must be received no later than 19.10.2016. Applicants must meet the requirements of eligibility for this Request for Applications (RFA). This RFA solicits grant applications to support sustainable economic growth, employment expansion, increased sales and exports, increased household incomes in Bosnia & Herzegovina and increased potential to meet EU standard requirements. The Project invites eligible producer organizations to submit applications for the Support to economic empowerment of women through value adding in MAP and honey sector. The Project invites eligible producer organizations to attend an information session for this RFA which will be organized on 06.10.2016 at 11:00 in Sarajevo (location will be determined later). Any change of the time/location will be communicated via project website, www.farmabih.ba and directly via email to registered participants. If interested to participate, please RSVP no later than 11:00 AM on 29.09.2016. Attendance at this session is strongly recommended. You are invited to submit an application for the Support to economic empowerment of women through value adding in MAP and honey sector. The grants will be awarded and implemented in accordance with U.S. government regulations governing grants under contracts and the Activity’s internal grant management policies. 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.

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Page 1: Request for Application (RFA) - FARMABIH.BA · oils, botanicals in cosmetics and toiletries has increased globally. But, most of MAPs based final products that are sold in BiH are

Request for Application (RFA)

Issuance Date: ....................................................19.09.2016

Deadline for Receipt of Questions: ..................05.10.2016

Closing Date/Time

for Submission of Applications: .......................19.10.2016

SUBJECT: Request for Application (RFA) Number: RFA-004-2016

Support to Economic empowerment of women

through value adding in MAP and Honey Sector

USAID/Sweden Fostering Agricultural Markets Activity II (the Activity), a United States Agency

for International Development (USAID) and the Government of Sweden-funded activity, is

seeking applications from qualified, legally registered BiH non-profit, for-profit, and non-

governmental organizations (NGOs) for a grant award to implement activities on Support to

economic empowerment of women through value adding in MAP and honey sector.

The applications must be received no later than 19.10.2016. Applicants must meet the

requirements of eligibility for this Request for Applications (RFA). This RFA solicits grant

applications to support sustainable economic growth, employment expansion, increased sales and

exports, increased household incomes in Bosnia & Herzegovina and increased potential to meet

EU standard requirements.

The Project invites eligible producer organizations to submit applications for the Support to

economic empowerment of women through value adding in MAP and honey sector.

The Project invites eligible producer organizations to attend an information session for this RFA

which will be organized on 06.10.2016 at 11:00 in Sarajevo (location will be determined later).

Any change of the time/location will be communicated via project website, www.farmabih.ba and

directly via email to registered participants. If interested to participate, please RSVP no later than

11:00 AM on 29.09.2016. Attendance at this session is strongly recommended.

You are invited to submit an application for the Support to economic empowerment of women

through value adding in MAP and honey sector. The grants will be awarded and implemented in

accordance with U.S. government regulations governing grants under contracts and the Activity’s

internal grant management policies.

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.

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USAID/Sweden FARMA II

RFA-004-2016 Support to women empowerment through value adding in MAP and honey sector Page 2

This RFA consists of the following sections:

1. Section 1 – Funding Opportunity Description

2. Section 2 – Award Information

3. Section 3 – Eligibility Information

4. Section 4 – Application and Submission Information

5. Section 5 – Application Review Information

6. Section 6 – Award and Administration Information

7. Section 7 – Authority/Governing Regulations

8. Section 8 – Annexes

Pursuant to 2 CFR 200 Subpart E and 2 CFR 700.13, 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

2 CFR 200 Subpart E for non-profit organizations and educational institutions, and the Federal

Acquisition Regulation (FAR) Part 31 for for-profit organizations), may be paid under the Award.

The Activity reserves the right to fund any or none of the applications submitted. Issuance of this

RFA does not constitute an award commitment on the part of the Activity, nor does it commit the

Activity to pay for costs incurred in the preparation and submission of an application. Further, the

Activity reserves the right to reject any or all applications received if such action is considered to

be in the best interest of the U.S. Government. Applications are submitted at the risk of the

Applicant; should circumstances prevent making an award, all preparation and submission costs

are at the Applicant’s expense.

Applicants should submit any questions concerning this RFA in writing via email at

[email protected]. The deadline for receipt of requests for clarifications / explanations is

05.10.2016. No questions will be accepted after this date.

Applicants should submit applications in writing to the one of following addresses:

USAID/Sweden FARMA II

71000 Sarajevo

Fra Anđela Zvizdovića 1B/18

USAID/Sweden FARMA II

78000 Banjaluka

Prvog Krajiškog korpusa bb

USAID/Sweden FARMA II

75000 Tuzla,

Maršala Tita 34A/III

USAID/Sweden FARMA II

88000 Mostar

Kneza M. Viševića Humskog 11

In addition applicants should submit applications electronically, via email at [email protected].

The Closing Date for Submission of Applications is 19.10.2016 and the Closing Time for

Submission of Applications is 04:00 PM local BiH Time. Late applications will not be

considered.

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USAID/Sweden FARMA II

RFA-004-2016 Support to women empowerment through value adding in MAP and honey sector Page 3

Section 1 – Funding Opportunity Description

Background: The USAID/Sweden Fostering Agricultural Markets Activity II (FARMA II) in BiH

is funded by the United States Agency for International Development (USAID) and the

Government of Sweden. The purpose of the USAID/Sweden FARMA II is to create agricultural

and agribusiness opportunities by assisting producer organizations to adopt EU and international

standards to produce new products and expand market access and to assist BiH to implement food

and agricultural regulations that meet international requirements. The Activity will create

agricultural and agribusiness economic opportunities for BiH citizens by assisting agricultural

producer organizations in adopting the European Union (EU) and international food standards and

new production techniques, producing new high value products, and expanding market access.

USAID/Sweden FARMA II’s methodology of working with private and public sector stakeholders

to identify market failures will ensure that the Activity team remains focused on addressing the

root problems inhibiting competitiveness. The project team will collaborate with numerous

partners and business development service providers (BDSPs) to build their capacity to introduce

ownership and provide sustainability within an indigenous ecosystem of BiH organizations.

Program Description:

Medicinal and Aromatic Plants (MAPs) sector in BiH is characterized by collection from the wild,

and recently, cultivation, with very little value adding. Most of MAPs that is collected or cultivated

in BiH is exported as raw material (dried and exported in bulk, essential oils are exported in big

barrels). Growing demand for natural cosmetics, demand for natural ingredients such as essential

oils, botanicals in cosmetics and toiletries has increased globally. But, most of MAPs based final

products that are sold in BiH are imported, while the quality is often questionable. Bosnia and

Herzegovina is following the world trends of increase in application of cosmetics based on natural

ingredients and growing demand for this type of cosmetics is evident. There is no exact statistics

on the value of imports or exports of natural ingredients based cosmetics. According to BIH

Foreign Trade Chamber, the total imports of cosmetics (synthetic and natural) in 2015 was valued

at over BAM 145,000,000, while the export value was less than BAM 700,000.

It is evident that there is a growing number of small producers of natural cosmetics, especially

young women, who produce different creams, soaps and other cosmetic items. This production is

mostly done at home, in a primitive way, while the sales channels are usually social networks,

green markets or local trade fairs. Nevertheless, they all have regular customers, although the

production level is quite low. As the production is mostly done at home, without registering a

business, these women are often not eligible to get a bank loan or any kind of support in order to

increase or improve the production.

To facilitate the involvement and professional development of women, the previous USAID/Sida

FARMA activity has developed programs specifically targeting women, including one that

supported women’s empowerment through MAP value adding. This program has supported two

small women led businesses through acquisition of small processing equipment, marketing and

promotion. The goal of this program was to encourage these women to start commercial production

in order to have sufficient quantity of products to access markets outside of their place of residence.

They were encouraged to exhibit at trade fairs in Sarajevo, which enabled their products to become

recognizable so it was easier for them to find buyers (shops). In this way they became independent

and sustainable producers who generate income for their families. Currently, the income they earn

is a way to reward their innovative and ground-breaking efforts and encourage them to take a more

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USAID/Sweden FARMA II

RFA-004-2016 Support to women empowerment through value adding in MAP and honey sector Page 4

active approach in creating a sustainable source of income for them and their families. This is an

excellent example how with small investment and innovative approach a small businesses could

be developed.

The purpose, goals and objectives of the activity

The purpose of the activity:

The purpose of this activity is to support women economic empowerment by promoting

entrepreneurship through value adding in MAPs and honey production with the ultimate goal to

create sustainable full time jobs for women living in both rural and urban areas. The purpose is

also to strengthen the MAPs and honey value chains by increasing the production of MAPs and

honey value added and final products.

The goals and objectives of the activities:

The ultimate goal of the activity is to create preconditions for economic empowerment of women

living in rural and urban areas which will lead to self-sustained full time employment. Main

objectives are listed below:

To support interventions in MAPs and Honey sectors which will lead to improved

production efficiency and profitability for women led producer organizations and

farmers;

Improved competitiveness of the MAP and honey sector in BiH by increasing the

production of value added and final products;

Improvement of marketing, packaging and branding of final products;

Introduction of new technologies to increase quality and improve productivity of existing

and new women led producer organizations, according to the Good Manufacturing

Practices;

Employment generation;

Promotion of cooperation and facilitation of business linkages with potential buyers;

Increased production of final MAP and honey based products to substitute imports, thus

increasing overall sector’s competitiveness with the goal to increase profitability and

income for rural and urban women;

Improvement of current production of value added and final MAPs and honey based

products by introducing better and more innovative technologies in order to increase

competitiveness of domestic products;

Initiation of activities to incorporate climate change adaptation and risk reduction

strategies into appropriate actions and promote environmental best practices;

USAID/Sweden FARMA II will continue supporting women empowerment efforts through

organizing trainings in cultivation of medicinal and aromatic plants, beekeeping as well as in

processing and value adding technologies.

I. Expected results

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It is expected that applicants will increase employment, productivity and profitability throughout

the value chain. Therefore, further increase in production of value added and final MAPs and

Honey based products in BiH is expected and in parallel new market opportunities explored in

order to secure safe placement of produced goods. However, ultimate results will encompass:

New investment in the MAPs and Honey value chain in BiH;

Applied new technologies that improve quality of value added and final products;

Empowerment of rural and urban women through creating conditions for full time

employment;

Fulfillment of market requirements through the increased number of implemented

standards and obtained certificates;

Improved final and value added product qualities;

Enhanced agricultural infrastructure in the MAPs and Honey value chain;

Formalization of the production through enhanced registration of women led businesses

and crafts organizations;

Increased domestic sales through formal channels of MAPs and Honey based natural

products;

Improved marketing, packaging and branding of final products, thus making them

competitive in the market;

Increased number of registered women led businesses. In cooperation with the government

institutions and/or local governments (where possible) to support selected women to apply

for and obtain subsidy for registration of craft organization and/or company and to apply

for subsidies for support in payment of fringe benefits during the startup period.

Government institutions that have such programs are entity and cantonal employment

bureaus, entity and Brcko District ministries of agriculture, Federation Ministry for

Veterans.

II. Illustrative activities

Target activities that will be supported with this RFA are described in the section below.

USAID/Sweden FARMA II will support funding of the activities that will strengthen the MAPs

and Honey sector in BiH by facilitating domestic production of high quality final and value added

products. Applicants may submit proposals that address one or several of the target activities

proposed below:

Using new, modern methods to improve production and quality of value added and final

MAPs and Honey based products, such as using of distillers, dry kilns, vacuum mixer,

packaging machines etc.;

Increase of current level of production and sales of value added and final products in the

domestic or international market and improvement of marketing technologies;

Support to women led businesses in introduction of new products and exploring new

markets;

Support to newly established women led producer organizations to increase production

and to improve processing technologies which will lead to import substitution and/or

increased exports;

Application of innovative and new management practices both in the production of value

added and final products, i.e. essential oils, drying of raw material, standardization of

production of creams, shampoos etc.;

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Support women led producer organizations to implement relevant international standards

and obtain relevant certification, thus expanding market opportunities;

Support activities that provide employment for large number of people especially women

and youth;

Increase of number of women led businesses that are selling their products through

formal sales channels;

Organization of promotional events or participation in the international fairs that will

increase the opportunities for increased sales;

Organization of study tour visits or educational activities that will improve processing

technologies.

In addition, USAID/Sweden FARMA II encourages applicants to consider and address in the

application necessary measures that proposes mitigation against environment and climate related

risks, as well as to pay attention to gender aspects and that higher number of total direct and indirect

beneficiaries are women and youth where possible. Also, as a minimum of quality standards

implementation requirements, the farm record keeping at the level of potential beneficiaries needs

to be promoted and implemented.

Women are encouraged to apply for and obtain subsidy for registration of craft organization and/or

company and to apply for subsidies for support in payment of fringe benefits during the startup

period. Government institutions that have such programs are entity and cantonal employment

bureaus, entity and Brcko District ministries of agriculture, Federation Ministry for Demobilized

Soldiers and War Veterans.

III. Performance Monitoring Plan

To track achievements of these grant awards, the Activity will measure progress against total

number of jobs created in assisted producer organizations in MAPs value chain, annual percent

change in sales and exports, number of farmers and POs who have applied new technologies or

management practices as a result of this grant award. In addition, the Activity will measure

improvement in management practices, farmers’ holdings implementing at least one strategy to

mitigate against climate-related risks as a result of this grant award. It is expected that applicants

will include the same set of indicators in their project to measure achievements that will be result

of this grant award. The participation of woman in the proposed activities is strongly encouraged,

it will be evaluated and tracked separately.

Section 2 – Award Information

Subject to the availability of funds, the Activity intends to provide grant funds to Support economic

empowerment of women through value adding in MAP and honey sector.

It is expected that grants for Support to economic empowerment of women through value adding

in MAP and honey sector will be allocated tentatively over a one-year period. The anticipated

period of performance of the grant is expected to be November 15, 2016 – November 15, 2017.

The Activity anticipates awarding standard grants under this RFA. The Activity’s grants shall not

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exceed 50,000 $ for a single award. For recently registered business the maximum grant amount

cannot exceed 6,000 $.

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.

Legally registered Bosnia & Herzegovina Organizations;

Non-profit/NGO, regional development agencies, public educational institutions (agricultural

faculties, institutes, extension services)

Commercial and/or for-profit organizations that understand that no profit or fee will be allowed

under the grant agreement;

Any legal entity which is registered either as a company or at a minimum as an agricultural

crafts organization; Entities registered through cooperation with the government institutions

and/or local governments (where possible) that were supported through subsidy program for

registration of craft organization and/or company and who were eligible to apply for subsidies

for support in payment of fringe benefits during the startup period. Government institutions

that have such programs are entity and cantonal employment bureaus, entity and Brcko District

ministries of agriculture, Federation Ministry for Veterans.

In some cases, BiH public educational entities may be eligible for grants. Grants to educational

entities will be used to provide in-kind assistance only. Under any grants awarded to public

educational entities, USAID/Sweden FARMA II will conduct all procurement on behalf of the

grantee and transfer the equipment as an in-kind donation. The government organizations

eligible would include agricultural institutes and university faculties.

Eligible organizations must also adhere to the following requirements:

Demonstrate an ability to contribute to the objectives of the USAID/Sweden FARMA II

project and perform the activities proposed in accordance with USAID policies and practices;

Display sound financial, administrative, and technical management in the form of a system of

controls that safeguards assets, protects against fraud and waste, and supports the achievement

of the award’s objectives;

Representatives of the organization must sign all mandatory certifications.

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 award. The Certifications are

attached as Annex A of this RFA.

Ineligible organizations include:

Entities that have misused USAID or the Government of Sweden funds in the past;

Organizations that advocate, promote or espouse anti-democratic policies or illegal

activities;

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Political parties or institutions;

Organizations that intend to use the grant for religious objectives;

Public International Organizations;

Government organizations and institutions;

Individuals.

Ineligible Expenses:

USAID/Sweden FARMA II grant funds may not be utilized for the following:

Profit

Military equipment

Surveillance equipment

Commodities and services for support of police and other law enforcement activities

Abortion equipment and services

Luxury goods and gambling equipment

Weather modification equipment

Private ceremonies, parties, celebrations, or "representation" expenses (entertainment

costs)

Purchases of restricted goods, such as certain agricultural commodities, motor vehicles,

pharmaceuticals, contraceptive products, pesticides, used equipment and fertilizers without

USAID’s Contracting Officer advance approval.

Purchases of goods or services from countries or suppliers as may be identified by USAID's

consolidated list of debarred, suspended, or ineligible subcontractors, System for Award

Management (SAM) at https://www.sam.gov / or the U.S. Department of Treasury Office

of Foreign Assets Controls (OFAC)at http://sdnsearch.ofac.treas.gov/Default.aspx

Prior obligations of and/or, debts, fines, and penalties imposed on the Grantee.

Alcoholic beverages

Purchases or activities unnecessary to accomplish grant purposes as determined by the

USAID/Sweden FARMA II Project.

Second hand equipment

Section 4 – Application and Submission Information

Applicants should submit written applications to one of USAID/Sweden FARMA II offices and

electronically via email at [email protected]. The Closing Date for Submission of Applications

is October 19, 2016 and the Closing Time for Submission of Applications is 04:00 PM Local BiH

Time. Late applications will not be considered.

For each proposed activity, the applicant will also propose target indicators from the following

areas:

Increased sales and/or exports and potential for income generation;

Increased access to international and/or domestic markets;

Increased number of on-farm-employment and /or direct and seasonal employees as a

result of activity implementation;

Increased number of women participating in this program;

Introduction of new products and/or implementation of the new production technology;

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Increased yields and profitability due to the introduction of new crop varieties;

Introduction of international food safety standards or management systems;

Introduction of new crop or equipment insurance schemes;

Import substitution and/or increased export potential;

Implementation of measures to mitigate risk of climate change.

For the project to be funded by USAID/Sweden FARMA II it should include the following

elements, as relevant:

Readiness to introduce new production technologies and to demonstrate its advantages (if

any) to selected value chain participants;

Readiness to provide assistance to young farmers and/or women (for example, in the

form of training) to increase the production of target produce. This activity will

contribute to mitigation of market distortion.

Openness to show others in the industry new practices that have been implemented as a

result of the project. This activity will contribute to mitigation of market distortion.

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 25 pages in length. The applicant is expected to

demonstrate the following in the application:

Consistency with Project’s objectives: The applicant’s proposed results clearly feed into the

Activity’s performance management plan. The proposed indicators are objectively measurable,

clear and relevant to the Activity and the methodology for measuring results of the program is

appropriate and efficient. The proposed activities are consistent with and will contribute to

achieving the objectives stated in the RFA.

Feasibility of design. The proposed methodology reflects an understanding of the RFA’s program

description and scope of work. The designed interventions are appropriate and the

results/milestones are concrete and achievable. The implementation plan includes tasks/activities

that are clearly described and organized in a sequential and logical order; the proposed timelines

allow for the maximization of resources and time, and they are clearly assigned to personnel

Market Distortion. The proposed activity clearly defines how the potential market distortion will

be mitigated. The applicant is expected to demonstrate their readiness to mitigate the potential

market distortion which may occur because of financial assistance paid to the business giving the

business a competitive advantage over the similar businesses within the value chain.

USAID/Sweden FARMA II ensures clear, transparent and competitive procedures for grants and

one of the key considerations includes market distortion. Applications will be assessed and

approved with a goal to avoid market distortion or favoring one producer, business group or

interest over another. In improving the competitiveness of this sector, grants will foster a level

playing field for competing and complementary producer organizations in the same value chain.

Sustainability/financial self-reliance. Proposals will be evaluated regarding the extent to which

the funded activity will result in building and strengthening the capacity of the local organizations,

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and whether the activity itself is sustainable or will stimulate the economic sustainability of the

organization. The required cost share is minimum 50% of the total investment costs. The proposed

cost share elements are relevant to the objectives of the program and demonstrate the

organization’s commitment in investing resources in the program. The application includes a

logical and feasible proposal describing how the cost share commitments will be met. If program

income is expected: The proposal for collecting program income is efficient and realistic.

Gender Equality. Proposals will be evaluated regarding the extent to which the funded activity

will result in improving gender inequality within USAID/Sweden FARMA II supported sub

sectors and components. In line with USAID’s Gender Equality and Female Empowerment Policy

and the Swedish Government’s Policy for Gender Equality and the Rights and Role of Women in

Sweden’s International Development Cooperation, USAID/Sweden FARMA II small grants will

support opportunities to empower, motivate and activate men and women to mitigate gender

inequalities within the USAID/Sweden FARMA II supported value chains. Given that the situation

differs in different value chains and local contexts, the USAID/Sweden FARMA II small grants

fund will serve as a tool for substantial women’s empowerment and mitigation of gender

inequality.

Environmental consideration. For assistance provided under this SOW sub-contractor will

comply with USAID environmental requirements in accordance with CFR 216, namely the

USAID/Sweden FARMA II-approved Initial Environmental Examination and the USAID/Sweden

FARMA II-approved Programmatic Environmental Assessment (PEA) and the Pesticide

Evaluation Report and Safer Use Action Plan (PERSUAP), as directed by USAID/Sweden

FARMA II. Specifically, any technical assistance (TA) must comply with the following:

1. USAID/Sweden FARMA II Programmatic Environmental Assessment (PEA), Section

7.3.1. (b), where all TA must promote Good Agricultural Practices (GAP’s),

2. All pest management advices must comply with USAID/Sweden FARMA’s II approved

Pesticide Evaluation Report and Safer Use Action Plan (PERSUAP). Only pesticides

approved in the PERSUAP may be used and recommended during training events,

including any written material prepared by the implementer. It is USAID policy that all

pest management advices must follow the principles of Integrated Pest Management

(IPM). The approved pesticide list, in addition to the full PERSUAP, will be provided to

the selected implementer prior to the signing of the contract and shall be fully complied

with.

In addition, USAID/Sweden FARMA II encourages applicants to consider and address in

the application necessary measures that proposes mitigation against environment and

climate related risks.

Desired Results. Grants will be awarded for activities that will have the greatest contribution to

increased competitiveness of the MAPs sector through implementation of new technologies, Good

Agricultural Practices, introduction of new products to the market, increased sales and exports,

increased on-farm and direct employment, climate change adaptation and risk reduction and

promote environmental best practices. Grant applications will specify activity outputs and explain

how and to what degree they are expected to generate these overall business results objectives.

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Application Process

All interested parties can apply for possible support from USAID/Sweden FARMA II’s Grant

Fund for above mentioned activities. In addition to the above project specific criteria, all

applicants must meet the following conditions:

1. Maximum amount requested from USAID/Sweden FARMA II should not exceed

50,000 $.

2. Maximum amount for recently registered businesses cannot exceed 6,000 $

3. USAID/Sweden FARMA II participation should be 50% or less of the cost of the

entire project

4. Used equipment CANNOT be financed.

5. The PO must also submit balance sheets and income statements (or other relevant

financial data) for the last year, with evidence of successful business operation

6. USAID/Sweden FARMA II funds will be reimbursed to the applicant only after the

purchase and installation of equipment and after the submission of all required

documentation such as invoices, receipts etc. For the fixed amount awards

USAID/Sweden FARMA II funds will be reimbursed only after specific

deliverable/milestone has been achieved.

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 Activity may request clarification and supplemental materials from

Applicants whose applications have a reasonable chance of being selected for 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 an award to the

Applicants with whom discussions are being held.

The following evaluation criteria will be used in this RFA will:

1. Consistency with USAID/Sweden FARMA II objectives and overall project goals: especially

introducing new technologies to increase client sales and jobs.

2. Activity’s contribution to increased sales, exports, employment, and investment.

3. Sector-specific technical criteria

4. Results to be achieved: Are the results to be achieved linked to the grant objective

5. Compatibility with EU accession requirements. Compatibility with Section 613 of the US FY

08 Appropriations Act. USAID/Sweden FARMA II aims to increase exports in targeted

agriculture and food sub-sectors and facilitate partnerships with existing and new foreign

investors, it is not expected that investments and export promotion assistance under

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USAID/Sweden FARMA II will adversely impact US companies or jobs since the majority of

BiH agricultural and food exporters and investors are regional and EU-based, a negligible share

of their products are exported to the US, and no US jobs loss is anticipated as a result of

USAID/Sweden FARMA activities.

6. Feasibility of design and approach: the quality and feasibility of the application in terms of the

appropriateness of the proposed technology and innovativeness; proposed mechanisms for

monitoring and evaluation with objectively measurable indicators will also be appraised.

7. Management and programmatic capacity: evidence of the capability to undertake and

accomplish the proposed activities. The appraisal will be based on the background,

qualifications, reputation, appropriateness and skills of its key personnel, and the reputation,

and achievements of the organization in the past.

8. Potential for scaling up/replication

9. Potential for mitigation of possible market distortion: evidence of the applicant’s capability to

craft solutions that make the value of the activity higher than the cost of the activity. Provides

reasonable explanation on how the benefit received from the project contributes to the broader

farmers’ community.

10. Budget: the degree to which budgeting is clear and reasonable and reflects best use of

organizational and grant resources; Provides reasonable cost share consistent with the nature

of the proposed activity and the applicant’s ability to contribute and leverage funds to the

greatest extent possible; All members of the TEC committee will review the budget in detail

making sure that the proposed costs make technical sense, are directly linked to an activity,

and are reasonable and necessary costs.

11. Gender and youth awareness: the extent to which the funded activity includes a gender and

youth component or represents a strong commitment to women and youth as beneficiaries.

12. Environmental Compliance: addressing climate change adaptation and risk reduction strategies

into appropriate activities and promotion environmental best practices

The selection of the Applicant for award will be made by the Activity’s Grant Selection Committee

(GSC). Prior to the award of any resultant grant agreement, the Project must obtain prior approval

from USAID.

Section 6 – Award and Administration Information

Successful applicant(s) will receive written notice from the DCOP/Grants Manager informing the

applicant(s) that the Activity either intends to award a grant to the applicant without negotiation,

or that the Activity 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 DCOP/Grants Manager.

Any resultant award will be subject to the terms and conditions of the Prime Contract for the

USAID/Sweden Fostering Agricultural Markets Activity II (FARMA II), 2 CFR 200 Standard

Provisions for Non-U.S. Non-governmental Recipients.

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Issuance of this RFA does not constitute an award commitment on the part of the Activity or the

U.S. Government, nor does it commit the Activity or the U.S. Government to pay for costs incurred

in the preparation and submission of an application.

Funding

All grants will be negotiated, denominated and funded in Bosnian Marks (BAM). Payments will

either be made on a reimbursement basis in tranches corresponding to achievement of agreed

upon milestones or directly to vendor’s account after the completion of services or upon delivery

of equipment. The decision will be made by USAID/Sweden FARMA II as part of an eventual

analysis of the Applicant’s organizational capability to manage grant funds.

All costs funded by the grant must be allowable, allocable and reasonable. A cost-sharing

element from the applicant and/or an approved third party must be contributed to the grant

activity.

Grant applications must be supported by a detailed and realistic budget as described in Annex B.

Section 7 – Authority/Governing Regulations

USAID/Sweden FARMA II grants to non-U.S. organizations adhere to guidance provided under

USAID’s Automated Directive System (ADS), Section 302.3.5.6, “Grants Under Contracts,” ADS

Chapter 303, “Grants and Cooperative Agreements to Non-Governmental Organizations,” and

within the terms of the USAID Standard Provisions applicable to Non-U.S. Non-Governmental

Recipients. These provisions can also be accessed through the USAID external website at

http://transition.usaid.gov/policy/ads/300/303.pdf.

ADS 303 references three additional regulatory documents:

A. 22 CFR 226 Administration of Assistance Awards to U.S. Non-Governmental Organizations

B. OMB Circular A-122: Cost Principles for Nonprofit Organizations

C. FAR 31.2 Cost principles for Commercial Organizations

D. OMB Circular A-133: Audits of States, Local Governments, and Nonprofit Organizations

Full text of these circulars can be found at http://www.whitehouse.gov/omb/circulars/.

USAID/Sweden FARMA II is required to ensure that all organizations receiving USAID grant

funds comply with the guidance found in these circulars, as applicable to the respective terms and

conditions of their grant awards.

Issuance of this RFA does not constitute an award commitment on the part of USAID/Sweden

FARMA II, nor does it commit USAID/Sweden FARMA II to pay for costs incurred in the

preparation and submission of an application. Further, USAID/Sweden FARMA II reserves the

right to reject any or all applications received. All application preparation and submission costs

are at the applicant's expense and risk. Awards are subject to availability of funds.

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Section 8: Annexes

Annex A: Certifications

Annex B: Full Application Format and Budget Format

Annex C: Survey on Ensuring Equal Opportunity for Applicants

Annex D: Environmental Self-Screening Form