Post-monetization Assessment Request for Proposals

Job Description

Post-Monetization Assessment Request for Proposals

Cacao for Development, FY20 Food For Progress Colombia

Objective

The primary objective of the post-monetization market assessment is to review and analyze the effects of the monetization process conducted by Partners of the Americas (POA) in Colombia to determine its impact on local markets and commercial trade. Adverse impacts may include displacing commercial trade and discouraging local food production. POA intends to issue an RFP to identify a qualified, independent consultant or firm to conduct the stated assessment.

Contractor Tasks

The selected offeror will conduct an in-depth assessment on the impact of the monetization of Hard Red Winter Wheat on Colombia’s local economy. Additionally, the offeror will track and record local prices at regular intervals and at relevant marketing points monthly.

The evaluator should collect data from both primary and secondary sources of information through one year after the final monetization. The assessment should use a mixed-method approach that applies qualitative and quantitative techniques and triangulates information from different methods to enhance the reliability of the findings. The evaluator should use time series data and propose a methodology for examining price impacts, i.e. an event study.

The evaluator will travel to the monetization countries and within the countries as necessary to conduct field research and market analysis, including primary data gathering, interviews with market actors, etc. Due to the COVID-19 pandemic, travel might not be possible at the beginning of this assignment. If the evaluator is located outside of the sale countries, necessary arrangements should be made to be able to gather information remotely.

The assessment should seek to address the following key questions:

• To what extent did monetization affect local production and consumption in the short- (few months after monetization), medium-(1 year after monetization), and long-term (subsequent marketing year)?
• To what extent did monetization displace commercial trade in the short- medium-, and long-term?
• Are there any substitute commodities for the selected commodity? If so, did the monetization of the selected commodity impact production/marketing of substitute commodities?
• Were the timing and volume of the sale appropriate?
• Did sales occur as intended or was there a lag because of unforeseen conditions in the market?
• What were the initial PVO estimates for price and quantity? What were the actual prices and quantities of the commodities sold?
• To what extent was in-country storage utilization affected?
• Was the transportation infrastructure affected?
• Were buying patterns of local and international actors affected? If so, what was the magnitude and length of the change?
• Was there an effect on prices? If so at what level?
• What happened to local and international prices during this time period? (Sudden change higher or lower that was unusual)?
• Do price fluctuations follow global/regional patterns?
• Were there any other market factors that could have impacted prices during that time? (For example, adverse weather affecting production, the one corn processor had their mill damaged/prolonged power outage and stopped buying corn (which may cause lower local prices for farmers), etc.)
• Market information that would be helpful to discuss in the analysis would include the following:
• Market context – how the commodity is produced, consumed/processed, traded, marketed generally in the context of this country/region. This would also include a discussion of relevant country policies and regulations that impact the market dynamics of the commodity. Prices (in country- (ideally farm gate prices if the commodity or substitute commodity is produced locally, prices where the commodity is being used) and international) –if prices are in the local currency, there should be some discussion as to what is happening to the currency vs the U.S. dollar over the time period.
• Commodity supply and demand balance sheet for a few years prior and current year (i.e. similar to USDA’s PSD or Production, Supply, and Distribution) for the commodity and country. Evaluators may use USDA PSD balance sheets for a commodity and country if they are available. USDA PSD estimates should be cross checked with local market analysts and discrepancies should be noted and discussed in the Market Assessment. A supply and demand balance sheet include estimates for the following and balances (i.e. Supply equals Demand):
• Supply:
• Beginning stocks (this is different than storage capacity)
• Production (including estimates of acreage planted and harvested AND yield)
• Imports
• Demand:
• Consumption (human, for feeding animals (if applicable), residual)
• Exports
• Ending stocks

The selected consultant or firm may choose to refine these questions or propose new or alternative questions.

Period of Performance and Expected Due Dates

The period of performance for this consultancy will be approximately 12-15 months between August 2021 and October of 2022. At the end of the evaluation period, a post-monetization market assessment will be submitted, and the assessment lead will provide a briefing, if requested, to USDA.

The total level of effort required will be approximately 45 days of work over the evaluation period.

Deliverables

• Monthly brief on market conditions in standard two-page format
• Baseline Colombia market profile, including:
• Supply and demand analysis for the specific commodity in Colombia
• Value chain analysis in terms of linkages between supply (domestic and imported) and end use
• Market Structure; a detailed evaluation of the concentration of market power in the sector
• Transportation
• Trade/regulatory dynamics
• Competing products
• Product quality - domestic and imported
• Initial Monetization Report

o Description of quantitative and qualitative data collection tools used

o Clean data sets

o Stand alone 3-page brief describing evaluation design, key findings

· Final Report and Presentation

o Final report including information in the first two deliverables, plus an overall final assessment, and additional observations in the market up to a year following the monetization

o Presentation of findings to USDA

Evaluation Criteria

Element

Points

Experience of the Firm and its Consultant/s in market analysis of agricultural commodities

20

Demonstrated experience in designing and conducting similar studies in development sector

25

Experience in working with US government monetization sales

15

Demonstrated experience and capacity to obtain relevant data and information in and about the target sale countries

20

Cost and value for money

20

Total Points

100

Payment and Resources

In addition to the fee paid to the selected consultant for services rendered, POA will cover the following costs:

• Assignment-related transportation costs
• Accommodations while on field assignment
• Meals and incidentals
• Costs related to the implementation of the assessment

POA intends to provide a fixed-price contract with payments made upon the full completion and acceptance of project deliverables.

Qualifications

Assessment leads submitting proposals should meet a minimum of the following qualifications:

• Master’s degree in economics, agribusiness, statistics, or related field
• Minimum of seven years of experience working on market assessments, market/trade analysis, and impact evaluation
• Familiarity with commodity monetization schemes preferred
• Experience with quantitative and qualitative data collections techniques
• Experience working with USG funded projects
• Experience in preparing high-quality evaluative reports for similar types of market assessments
• Self-starter, detail-oriented, thorough, and well organized
• Strong research and writing skills
• English and Spanish fluency required

Submission Instructions

Proposal Format

Technical proposal (10 page maximum) – The technical proposal should reflect how the offeror would carry out the indicated tasks and provide the required deliverables. The applicant should provide a detailed plan of specific activities and illustrative timetable for carrying out the assignment and data collection and analysis activities.

To apply, please submit a bid including:

· Organization (1 page maximum): The applicant shall provide summary of organizational capacity to conduct post-monetization evaluations. This section should also state the organizational legal status, type of ownership and management, overview of projects/services, and geographic scope.

· Team Composition (2 page maximum): The applicant shall list and briefly describe the name(s), qualifications and responsibilities of the staff proposed to work on the assignment. (CVs of proposed personnel should be included in an annex and not counted toward page limit).

· Experience (2 page maximum): Reference information for at least three organizations or individuals for which the offeror has successfully performed similar work. Where applicable, please note the contract, grant, or cooperative agreement to which the work applied, project value, description of assessment, and contact information.

· Approach and work plan (5 page maximum): Applicants should propose the main activities of the assignment, their content and duration, milestones (including interim approvals by POA), and delivery dates of the reports. The proposed work plan should be consistent with the technical approach and methodology, showing understanding of the SOW and ability to translate them into a feasible working plan.

Proposed budget: The applicant shall propose a realistic cost estimate for this assignment, including a line-item budget and budget narrative that justifies expenses. The budget shall include only those costs that can be directly attributed to the activities proposed (with explanation of line items).

Please submit a bid in the above format via email to the attention of:

Jane Haines, Senior Program Officer, Partners of the Americas
jhaines@partners.net

About the Organization

Introduction

Partners of the Americas is an international grassroots organization that connects individuals and organizations to serve and change lives through lasting partnerships in the Western Hemisphere.

POA’s five-year, $25.4 million United States Department of Agriculture (USDA) funded Cacao for Development project aims to strengthen the cacao value chain in Colombia and improve producer incomes through crop diversification. The project will use a landscape approach to promote diversified crop production and marketing models for 5,455 cacao producers and 47 producer organizations in the departments of Magdalena, Cesar, Antioquia, Cordoba, Caldas, Tolima, Huila, Santander, Cundinamarca, and Boyacá. Activities will lead to more diversified producer incomes, increased resilience, and long-term stability in cacao-based farming systems.

Per the Food For Progress funding mechanism, POA will complete a market sale (monetization) of US agricultural commodities in Colombia to fully fund project activities. POA completed its first monetization of 41,000 MT of Hard Red Winter Wheat in June 2021 at the port of Buenaventura, Colombia. POA anticipates monetizing a final 35,000 MT of Hard Red Winter Wheat in October 2021.

The United States Department of Agriculture requires that all implementing partners conduct a post-monetization market assessment to determine the impact of monetization sales on local markets and commercial trade.

More information