Pre-solicitation Notice - USAID Kenya Feed the Future Private Sector Activity   4

Pre-Solicitation Notice

Issuance Date: August 14, 2023

To: All Interested Offerors

Subject: Intent to issue a Request for Proposals (RFP) entitled USAID Kenya Feed the Future Private Sector Activity

Notice ID (RFP No): 72061523R00012

NAICS Code: 541990 All Other Professional, Scientific, and Technical Services

The purpose of this Notice is to comply with the requirements of FAR 5.2 - Synopsis of Proposed Contract Actions. This is NOT a Request for Proposals (RFP) and in no way obligates the United States Government to issue an RFP and/or award a contract. When the solicitation is issued, all necessary information will be supplied at the time it is posted at www.sam.gov. Interested parties are advised to periodically monitor the above website and solicitation number for updates on this potential opportunity.

The United States Agency for International Development (USAID) Kenya and East Africa intends to issue a Request for Proposal (RFP) entitled USAID Kenya Feed the Future Private Sector Activity seeking qualified offerors to provide services for a five-year contract.

The overall goals of the Activity are to create jobs, particularly for women and youth, increase incomes and accelerate inclusive, climate-resilient, and sustainable economic growth through private sector partnerships. The Activity will focus on increasing investment into targeted sectors in Kenya through partnerships with growth-oriented, formal private-sector firms. The Activity will support partnerships in the agriculture sector (with processors, off-takers, input and logistics providers, and other market actors) and in the health sector. The Activity will also be able to work in other sectors. It is currently estimated that 70% of the funding will be for agriculture and 30% will be for health and other sectors.

The purpose of the Activity is to support firms to expand investments and operations, increase sales and exports, and create significant numbers of new jobs. In the agriculture sector, the Activity will have two primary foci: 1) attracting new investments in agricultural processing, value-addition, inputs and storage; and 2) establishing or expanding structured out grower schemes for smallholder farmers around targeted lead firms with clear contracts and access to technical assistance and inputs and/or financing. In the health sector, the Activity will focus on attracting new investments to improve access to health products, information and services.

This Activity will provide greater flexibility and a full range of tools to support firms in various stages of growth to expand. It will bring together tools utilized in traditional private-sector development activities (such as grants and technical assistance) with tools used to mobilize finance and investment in a blended finance approach. In the agriculture sector, the Activity will prioritize partnerships that have the greatest potential to create jobs - particularly for women and youth - increase income, and contribute to inclusive, climate-resilient, and sustainable agriculture-led growth and poverty reduction in the FTF Zone of Influence (ZOI). It will also have flexibility to pursue strategic opportunities outside of the ZOI when those investments support the development and growth of sectors linked to the ZOI.

Under previous USAID Kenya FTF activities, various types of firm-level support were provided in select value chains in the ZOI. While these efforts have improved the economic circumstances of beneficiaries, they were not able to achieve impacts at scale. Lessons learned from these activities and from broader discussions with the private sector suggest that a broader array of tools and flexibility is needed to seize higher-impact opportunities with a range of firms for larger scale job creation and poverty reduction impacts.

This activity will build on previous and current USAID programming in Kenya, including Kenya Investment Mechanism (KIM), Kenya Crops and Dairy Market Systems (KCDMS), Livestock Market Systems (LMS), WASHFIN and other relevant programs, including health programs. It will complement other USAID activities by unlocking capital and facilitating transactions that create private sector employment opportunities, particularly for youth, women, and the poor. Positive economic spillovers for other sectors are anticipated to occur as households earn more money, thereby gaining purchasing power. This spillover will increase access to income, enable improved food security, nutrition and resilience, and contribute to poverty reduction.

The duration of the contract period is anticipated to be five years and will be performed in Kenya. Except for the above information, no additional information regarding this planned solicitation is available at this time. All necessary information will be supplied at the time the solicitation is issued. USAID will not respond to any questions or requests for information until the solicitation is issued.

USAID will not accept applications prior to issuance of the solicitation. Issuance of the pre-solicitation notice and any subsequent RFP does not constitute an award commitment on the part of USAID, nor does it commit USAID to pay for any costs incurred in the preparation and submission of any application.