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Request for Applications for Grants

Support to Improved Competitiveness of Dairy, Fruit and Vegetable, MAP, Beekeeping and Poultry Sectors

Basic dataReference Code: RFA 008-2018Title: Support to Improved Competitiveness of Dairy, Fruit and Vegetable, MAP, Beekeeping and Poultry SectorsLaunch Date: 09-07-2018Clarification requests deadline: 09-28-2018Application Submission deadline: 10-15-2018Application evaluation process: From 10-15 to 11-30-2018

USAID/Sweden Fostering Agricultural Markets Activity II, FARMA II (the Activity), a United States Agency for International Development (USAID) and the Government of Sweden-funded activity implemented by Cardno Emerging Markets USA, Ltd., is seeking applications from qualified, legally registered BiH non-profit, for-profit, and non-governmental organizations (NGOs) for a grant award to implement activities to Improve the Competitiveness of Dairy, Fruit and Vegetable, MAP, Beekeeping and Poultry Sectors.

The applications must be received no later than October 15, 2018. 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 and increased quality and trade standards.

The Project invites eligible producer organizations to attend an information session for this RFA which will be organized, as listed below (information about the exact locations for these info sessions will be communicated via project website):

Date Time LocationSeptembar 17, 2018 11:00 SarajevoSeptembar 20, 2018 12:00 MostarSeptember 21, 2018 11:00 BihacSeptember 25, 2018 11:00 TuzlaSeptembar 26, 2018 11:00 Banjaluka

Other locations and dates may be added to the list above, which will be communicated via press and on USAID/Sweden FARMA II website. Info sessions will also include training modules for interested applicants on “Tips to development of successful application”.

USAID/Sweden FARMA II

Any change of the times/locations and address details will be communicated via the 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 September 14, 2018 via email at [email protected]. Attendance at one of these information sessions is strongly recommended.

The grants will be awarded and implemented in accordance with U.S. government regulations governing grants under contracts and the FARMA II 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.

This RFA consists of the following sections:1. Section 1 – Funding Opportunity Description2. Section 2 – Award Information3. Section 3 – Eligibility Information4. Section 4 – Application and Submission Information5. Section 5 – Application Review Information6. Section 6 – Award and Administration Information7. Section 7 – Authority/Governing Regulations8. 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 project 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 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 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 or requests for clarifications concerning this RFA in writing via email at [email protected]. The deadline for receipt of requests for clarifications / explanations is September 28, 2018. 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 SarajevoFra Anđela Zvizdovića 1B/18

USAID/Sweden FARMA II78000 Banjaluka

Prvog Krajiškog korpusa bb

USAID/Sweden FARMA II75000 Tuzla,

Maršala Tita 34A/III

RFA-008-2017 – Improving the Competitiveness of the Poultry Sector

http://www.farmabih.ba/


In addition to mailing the applications to one of the above addresses, the applicants should submit applications electronically, via email at [email protected]. The Closing Date for Submission of Applications is October 15, 2018 and the Closing Time for Submission of Applications is 04:00 PM local BiH Time. Late applications will not be considered.



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 and is being implemented by Cardno Emerging Markets USA, Ltd. (Cardno). The purpose of 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.

Program Description:

I. Background on the specific grant activity

The multi-functionality of the dairy sector, associated with the provision of basic foods for consumers and raw materials for food-processing, as well as its contribution to rural development, biodiversity and employment, makes it a major sector of livestock production in BiH. In recent years, new economic and institutional realities, accompanied by the EU accession pressures, began to change the profile of the dairy sector. Small enterprises are unable to compete in the international markets and cannot effectively comply with the EU standards for food quality and safety, animal welfare and environmental protection. This could have serious socio-economic implications for many people, especially in the less developed regions of the country. The only way to remain competitive is to increase farm size, meet the required hygiene standards and/or to diversify into the production of value added products. It is expected that only large dairy processors will remain competitive in the long run. Small dairy processors are expected to remain competitive if they focus on niche products, such as specialty cheese production. During the last two years, FARMA II has highlighted various challenges, including the lack of compliance with structural and hygiene standards and implementation of HACCP based procedures in this small cheese processing companies. These weaknesses and main findings also apply to small-scale farmer’s production practices for quality standards, food safety and hygiene practices. In addition, farmers face problems with waste management, animal welfare, obsolete equipment, high costs of energy that influence their profit margins, etc. raw materials for food-processing, as well as its contribution to rural development, biodiversity and employment, makes it a major sector of livestock production in BiH.

In the fruit and vegetable sector, there is a strong concentration on just a handful of crops, as the five major cultures (raspberries, apples, plums, pears and gherkins) account for 65% of the total sub-sector exports. For most other crops there is a lack of quantities of good quality produce that fulfill all market requirements. As a result, BiH producers are not able to have continuous



supply that is one of the conditions to be included and listed as a supplier in the large retail market networks. FARMA’s efforts concentrated on very high value, labor intensive crops that can be profitably grown on small land plots. While other crops are also supported, the primary effort to achieve the objective of increasing small farm profitability has been with berries. This involves increasing production, acreage and productivity, as well as introducing varieties that offer more options beyond freezing. In this sector FARMA II concentrated its activities in three segments: (1) Introducing new production technologies and standards in production and processing with focus on the production in protected spaces; (2) Introducing new berry varieties (and other related diversification efforts) to ensure the sector gains a competitive advantage in the long run; (3) Facilitating market linkages, through participation in fairs and direct contacts with potential buyers, to help POs access higher paying markets.

Vegetable production, except the one in protected area (greenhouses) has been reduced over the years. Sale of vegetables for fresh consumption is not completely organized and production surpluses from individual households in most of the cases are sold as fresh on local green markets. The only organized large scale production of vegetable is production of gherkins. Still there is a space for specialization of production and orientation to competitive produce and new product development for niche market.

The MAPs sector is characterized by collection and cultivation of different plants that are then purchased and processed by small companies into a wide variety of products, such as: essential oils, natural cosmetics, teas, tinctures, homeopathic remedies etc., or sold in bulk for export. The over harvesting of natural and wild resources and the limited production of value-added products represent key challenges in the MAPs sector. Raw materials from MAPs are in high demand yet many local MAP companies cannot obtain these raw materials locally and are forced to import plant material from other countries. Consequently, beside export promotion, FARMA II focused on interventions designed to facilitate cultivation of MAPs and value adding, which has the potential to generate additional income for rural households and small agribusinesses. This sector involves large number of women from remote rural areas of BiH who are involved in collection, cultivation and value adding.

The BiH beekeeping sector needs to be encouraged to promote a new and more ‘professional’ dynamism, expand production and increase the level of technical competency of new professional beekeepers and attract young people who are willing to enter into the beekeeping sector as a potentially lucrative business in order to accelerate its growth. Beekeeping is usually seen as a “business of old men” and this needs to be changed. The attractiveness of beekeeping for younger people may increase due to two factors: (1) if it is increasingly understood as a profitable business and (2) the promotion of more modern production techniques, production of honey based vaoue added products that can create a more positive and attractive image of beekeeping as an alternative agri-business opportunity.



The BiH poultry sector has the potential to become the largest meat producing sector in BiH. More than 90% of poultry meat producers in BiH are small farmers, contractually engaged by large scale meat processing companies. Typically the contractual relationship between farmers and processing companies is based upon fattening services to be provided by small farmers using inputs provided by the company including day-old chicks, feeding concentrate and veterinary services. This contractual relationship can provide a secure annual income for small-scale farmers, as the number of broilers is usually agreed at the beginning of the year, so production is planned and relatively predicable. This way losses in production and lack of working capital can be minimized. This system has been in operation for many years in BiH. It means that the responsibilities for purchasing, marketing and sales of most poultry meat are concentrated in the hands of a small group of well-organized companies. Apart from this concentrated supply chain, approximately 10% of small farmers produce broilers independently and sell chicken meat directly on local markets. However, the existence of these small farmers is increasingly threatened by a lack of technical support, lack of stable working capital, limited access to veterinarian services and general challenges in meeting minimum quality and food safety standards and requirements. Consequently, these small farmers have relatively low profits and this prevents further growth and investments being made to improve their productivity and overall competitiveness. Around 70% of table egg production goes through organized cooperative systems similar to the chicken meat supply chains. There are four large egg producing and packaging companies. These cover most of the production of eggs in BiH. Approximately 30% of small farmers produce eggs outside of this vertically integrated system and sell their eggs directly from the farm or through green markets and small retail shops. However, many of these farms do not satisfy minimum quality or hygiene standards for egg production. Current export markets for BiH eggs are Serbia and Montenegro.

Similar to the dairy sector, various challenges, including the lack of compliance with structural and hygiene standards and implementation of HACCP based procedures in the processing companies, exist also in poultry sector. These weaknesses and main findings also apply to small-scale farmer’s production practices for quality standards, food safety and hygiene practices. In addition, farmers face problems with waste management, animal welfare, obsolete equipment, high costs of energy that influence their profit margins, etc.

II. Objectives of the RFAThe purpose of this activity is to support interventions in any one or all five sub-sectors which will lead to improved production efficiency and profitability both for producer organizations and farmers, increased diversification and the production of value added products, implementation of good agricultural practices and EU food safety standards, environmental compliance, improved



overall competitiveness of all participants of value chain, and improved access to local and international markets.

III. Expected results

Grants will be awarded for activities that will have the greatest contribution to increased competitiveness of the dairy, F&V, MAP, beekeeping and poultry sector through implementation of new technologies, diversification of production, and introduction of new value added products to the market, increased sales and exports, implementation of Good Agricultural Practices, introduction of food safety and / or quality standards, and other listed activities.

Grant applications will specify activity outputs and explain how and to what degree they are expected to generate these overall business results objectives. For each proposed activity, the applicant will also propose target indicators from the following areas:

Increased sales; Increased export; Increased production and potential for income generation; Improved diversification and value-adding; Increased access to international and/or domestic markets; Increased number of full time employees; Increased number of seasonal workers Increased number of small farmers and /or indirect employees as a result of activity

implementation; Introduction of new products to the market; Introduction of implementation of new technology as a result of grant activity; Increased area under cultivation; Increased level of processing; Increased level of involvement of youth and / or women, and / or persons with

disabilities; Increased yields and profitability due to the introduction of new crop varieties; Introduction of HACCP, GlobalGAP, GRASP, IFS, HALAL, Organic, PDO/PGI or

other relevant standards or management systems;

The applicant is expected to provide sufficient information to demonstrate how the improvement of production/processing technologies will increase the competitiveness of BiH POs on the international and local markets.

IV. Illustrative activities



Indicative activities that may be supported with this RFA are described below (NOTE: this should not be considered as an exhaustive list and applicants are encouraged to consider other relevant investments, provided they contribute to the specific objectives of this RFA):

The illustrative activities of this activity are divided among five agricultural subsectors and are listed below:

Dairy Sector: Provision of trainings for small dairy farmers and craft organizations in the value chain in

line with the EU best practices (productivity, milk hygiene, cheese production, environmental compliance and business improvement related trainings);

Introduction of new technologies to increase quality of existing dairy products; Improvement in dairy products diversification and value added, especially related to the

production of cheese; Introduction of quality standards in compliance to the EU requirements, including the

protection of geographic origin; Increased sales in the local market and increased export of dairy products; Promotion of traditional B&H cheese in the local and regional markets, through various

promotional events including cheese festivals.

Fruit and Vegetable Sector (F&V): Provision of trainings for small farmers and craft organizations in the value chain in line

with the EU best practices (productivity, plant protection, environmental compliance and business improvement related trainings);

Introducing new crops (diversification) and better and more productive varieties of fruit and vegetables that are required by the foreign markets and have more potential for export, with a strong focus on table varieties (for the fresh market), higher yielding and early/late season varieties / primocane and floricane types;

Introduction of new technologies to increase quality and improve productivity of existing and new farmers and producer organizations; including the production on substrates and production in protected spaces;

Support to Value adding activities along the value chain, including on-farm cooling for products targeting the fresh market;

Introduction of quality standards in accordance to the EU and other international requirements;

Support production concepts tailored to respond towards changing climatic conditions (production in protected areas incl. high tunnels, anti-hail nets, installation of drip irrigation systems, mulch, etc.);

Facilitating the export of fresh products and value added products to the EU and other international markets; Support to trade missions, B2B meetings and international trade fair participation;



Medicinal and Aromatic Plants (MAPs) Sector: Increased cultivation of MAPs to provide greater control over the quality and quantity of

plant materials which is in constant deficit at the local and international market; Increased competitiveness of MAP products by improving production processes in order

to reduce costs and improve product quality; Production diversification and increased production of value-added products; including

for example small packaging of dried wild mushrooms, natural cosmetics, etc.; Increased domestic sales and export of MAP value added products; Innovative approaches engaging youth, that will lead to increased productivity and

profitability; Provision of trainings for small farmers and collectors on sustainable collection from the

wild and cultivation of MAPs in line with the EU best practices ( products diversification, value adding through processing of MAPs and environmental compliance);

Preservation of wild plants through increased cultivation and sustainable collection;

Beekeeping Sector Promotional campaigns to increase consumer awareness on good quality local honey; Increased number of professional legally registered beekeepers; Increased yield per beehive and consequently increased production of honey and

apicultural by-products; Implementation of organic and Good Beekeeping Practices, production traceability and

ultimately adoption of EU standards requirements Production diversification (pollen, propolis, royal jelly, bee venom, bee bread, etc.) and

increased production of value-added products; Increased domestic sales and export of honey value added products; Innovative approaches engaging youth, that will lead to increased productivity and

profitability;

Poultry Sector Introduce diversified and/or value added products for the domestic market (such as

BBQ / marinated chicken, turkey meat, etc.) Support various promotional activities in the poultry sector, for example for increasing

the consumption of chicken meat during the winter period or for competing against red meat.

Improve the quality and hygiene standards in the poultry sector to meet EU market standards and requirements;



Promote environmentally sustainable and more efficient poultry farming by introduction of improved technologies and innovations and compliance with the Code of Good Agricultural and Environmental Practices and EU Nitrates Directive

Cross-cutting (all listed subsectors) Technical assistance, including advisory and business development services provided by

local, regional or international consultants or consulting companies; In-country, regional or international study tours for registered POs; Improved marketing, packaging and branding of final products; Product quality analysis and registration, in order to legally enter formal distribution

channels; Improved distribution and promotion – business to business missions, in bound trade

missions, local, regional and international trade fairs; promotional catalogues; Support to development of short distribution channels, including online platforms for

distribution, pop-up stands and other relevant methods for reaching the consumers; Promotion / market access: Implementation of promotional activities or campaigns at

local or international markets;

NOTE: FARMA II encourages applicants to consider and address in the application necessary measures that propose mitigation against environment and climate related risks, as well as to pay attention to the inclusion of women, youth and vulnerable groups, where ever possible.

V. Performance Monitoring To track achievements of these grant awards, the project will measure progress against: number of full time jobs created in assisted producer organizations, annual percent changes in sales and exports; number of producer organizations implementing international quality standards, and POs who have applied new technologies and/or improved management practices 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 as a result of this grant award. The level of participation of woman and young people in the proposed activities will also be monitored and evaluated.

Section 2 – Award Information

Subject to the availability of funds, the project intends to provide grant funds to support to Improved Competitiveness of Dairy, Fruit and Vegetable, MAP, Beekeeping and Poultry Sectors.It is expected that grants will be allocated over a one-year period. Therefore the anticipated period of performance of the grant is expected to be from December 31, 2018 to December 31, 2019. FARMA II anticipates awarding standard grants and or fixed amount award under this RFA. Grants shall not exceed $50,000 for a single award. For legally registered start-up



businesses (in business for less than 2 years) single grant award shall not exceed 10,000 $. The total grant fund is approximately 200,000 $.Section 3 – Eligibility Information Eligible organizations shall be required to comply with the proposed Program Description, Tasks, and Results and have a satisfactory performance record and record of integrity and business ethics. Minimum eligibility requirements are as follows:

A. Be registered private company or cooperative engaged in the production or processing of milk, dairy products, fruit and vegetables, MAPs and/or honey, poultry products with at least 5 years of experience in this sector (and with verified financial statements for the last three years); Priority will be given to applicants that have an average turnover of maximum 1.5 million BAM annually over the last three ( 2015, 2016, 2017) and have steady growth in sales of minimum 30% in 2017 compared to 2014;ORBe other registered organizations that are service providers (NGOs, association etc) to POs which are engaged in the production or processing of milk, dairy products, fruit and vegetables, MAPs, poultry products and/or honey; These service providers must prove to have experience to implement one or more illustrative activities described in this RFA and must show sound financial records for the last three years;ORBe start-up agribusinesses that have been legally registered for more than one year and have sufficient equity to cost share proposed activity; these start-up agribusinesses must have positive financial record for at least one year (2017);

B. Accept to fully comply with FARMA II environmental requirements, which will be communicated to the selected grantee.

C. Be able to provide a cost share in this activity of at least 50%;

In addition to the above criteria, all applicants are required to address the potential market distortion by proposing activities that will benefit the entire value chain or subsector. The applicant must demonstrate its readiness to mitigate the potential market distortion by measures that will benefit small farmers to have a larger social impact or multiple POs which lead to the development of the sector or the value chain.

FARMA II project 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.

Eligible organizations must also adhere to the following requirements:



Demonstrate an ability to contribute to the objectives of the 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, protect against fraud and waste, and support the achievement of the grant objectives;

Have a current and active bank account, or commit to open and responsibly manage one as a condition of award;

Provide goods/services within normal business operations; Operate in a competitive environment and verify the fair market value of goods or services; Representatives of the organization must sign all mandatory certifications. Prior to the award of any 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; Political parties or institutions; Organizations that intend to use the grant for religious objectives; Public International Organizations; Government organizations and institutions; Individuals.

Ineligible Expenses: FARMA grant funds may not be utilized for the following:

Exclusively for profit making activities where no other benefits will accrue from the grant

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

FARMA Project. Second hand equipment

Additional Eligibility Criteria for this RFA are defined as follows: Producer organizations that have already benefited from grant award in FARMA II and/or in

any previous USAID and the Government of Sweden program may apply for this grant award only to co-finance activities and not to directly benefit from grant. These organizations should include a number of small farmers and/or craft organizations that will directly benefit from this grant award. FARMA II Technical Team will supervise and monitor grant implementation following the precise list of farmers and/or other beneficiaries submitted by the applicant that are willing to participate in this activity.

Section 4 – Application and Submission InformationApplicants should submit written applications via email at [email protected]. The Closing Date for Submission of Applications is October 15, 2018 and the Closing Time for Submission of Applications is 04:00 PM Local BiH Time. Late and/or incomplete 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 full time on-farm-employment and seasonal employees as a result of

activity implementation; Increased number of women and youth and persons with disabilities participating in this

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


http://sdnsearch.ofac.treas.gov/Default.aspx


Increased yields and productivity; Introduction of international food safety standards or management systems; 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 20 pages in length. The applicant is expected to demonstrate the following in the application: a) Consistency with RFA and FARMA II project objectives: The proposed activities are

consistent with and will contribute to achieving the objectives stated in the RFA and of FARMA II. The proposed indicators are objectively measurable, clear and relevant and the methodology for measuring results of the project are appropriate and efficient.

b) Feasibility of design: The proposed methodology reflects an understanding of the RFA description and scope. 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 are clearly assigned to personnel

c) Market Distortion: The proposed activity clearly defines how any potential market distortion caused by the award of the grant will be mitigated by the applicant. The applicant is required to demonstrate their readiness to mitigate any potential market distortion which may occur due to the financial assistance provided to the business which may give the business a competitive advantage over similar businesses within the value chain. This should include (but is not limited to) proposed actions to be undertaken that will ensure that the actual cost of the investment result in greater increased direct and indirect value and benefits both for the organization and other beneficiary groups and/or the wider agricultural or rural community within which the investments will take place e.g. such as any linked community social infrastructure, training or similar ‘public goods’ (i.e. socio-economic, non-commercial benefits).

d) 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, 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 then the proposals for collecting program income should be efficient and realistic.

e) Gender Equality: Proposals will be evaluated regarding the extent to which the funded activity will result in improving gender equality. 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, FARMA II small grants will support opportunities to empower, motivate and activate men and women to mitigate against any gender inequalities.

f) Environmental considerations: For applicant will comply with USAID environmental requirements in accordance with CFR 216, namely the FARMA II approved Initial Environmental Examination and the FARMA II approved Programmatic Environmental Assessment (PEA) and the Pesticide Evaluation Report and Safer Use Action Plan (PERSUAP). Specifically, this must comply with the following:1. 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 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).

3. 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.

g) Desired Results: Grants will be awarded for activities that will have the greatest contribution to increased competitiveness of the poultry sector through implementation of new technologies, Good Agricultural Practices, 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 all defined results.

Application ProcessAll eligible, interested parties may apply for support as defined in this RFA. All applications must meet the following minimum conditions:

1. Maximum amount requested from USAID/Sweden FARMA II should not exceed 50,000 $ for profit and nonprofit organizations. For start-up producer organizations this amount should not exceed 10,000$ for single award.

2. FARMA II participation should be 50% or less of the cost of the entire project3. Used equipment CANNOT be financed.



4. The applicant must also submit balance sheets and income statements (or other relevant financial data) for the last 3 years, with evidence of successful business operation; Startup companies must submit financial records for at least one year of successful operations

5. FARMA II funds will be reimbursed to the applicant or paid directly to the vendor only after the purchase and installation of equipment or after delivery of specific service and after the submission of all required documentation such as invoices, receipts etc. For the fixed amount awards FARMA II funds will be reimbursed only after specific deliverable/milestone has been achieved.

6. The required format for applications is included as Annex B - Full Application Format and Budget

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 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 FARMA II objectives, results and performance indicators: This should

ensure a particular focus upon increases in sales, exports, employment (particularly of young people and women) and investment attraction.

2. Complies with sector-specific technical criteria 3. Results to be achieved: Are the results to be achieved linked to the grant objective and how

these will be measured and reported 4. Compatibility with EU accession requirements. 5. Compatibility with Section 613 of the US FY 08 Appropriations Act: 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 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 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.

8. Potential for scaling up/replication 9. Potential for mitigation of possible market distortion: evidence of the applicant’s capability

to offer practical solutions that ensure the added value achieved by the activity is higher than the actual cost of the activity/investment. Provides reasonable explanation on how the benefit received from the project contributes to the broader agriculture and rural 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 a FARMA II appointed 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 InformationSuccessful 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.Issuance of this RFA does not constitute an award commitment on the part of the project 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 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 RegulationsFARMA 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 OrganizationsB. OMB Circular A-122: Cost Principles for Nonprofit OrganizationsC. FAR 31.2 Cost principles for Commercial OrganizationsD. 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/. 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 FARMA II, nor does it commit FARMA II to pay for costs incurred in the preparation and submission of an application. Further, 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. Section 8: AnnexesAnnex A: Certifications Annex B: Full Application Format and Budget Format (included in the Grant Application Form)Annex C: Survey on Ensuring Equal Opportunity for Applicants


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