Terms of Reference – Consultancy Service for Conduct rapid market analysis and value chain for various agricultural and livestock products in Garissa

Country: Kenya

Organization: Islamic Relief

Closing date: 3 Aug 2023

Terms of Reference – Consultancy Service for Conduct rapid market analysis and value chain for various agricultural and livestock products in Garissa County.

Activity: Conducting Rapid market assessment/analysis and value chains for various agricultural and livestock products Garissa county.

Project: Strengthening Community Resilience and economic empowerment programme. (SHEEP)

Location: Garissa County

Duration: The assessment period is 30 days during this month including preparation, start-up meeting with IRK, field work, travel, and report writing.

Reporting to: Food Security and Livelihood Coordinator.

REF No. IRK/CO/SHEEP/CONS/RAPID MARKT ASSESSMENT/001/07/2023-RE-ADVERT

July, 2023

Activity: Consultancy Conduct rapid market analysis and value chain for various agricultural and livestock products Garissa County

Time: July 2023

Reporting to: Food Security and Livelihood Coordinator

1. Background

Islamic Relief Kenya (IRK) started operations in Kenya in 1993. Since then, IR has been providing humanitarian and development assistance to vulnerable communities. Over these years it has implemented various development and relief activities which have remarkably changed the lives of vulnerable and disadvantaged communities in Garissa, Wajir, Mandera, Kilifi, Marsabit and Kajiado Counties.

Currently IRK has a funding for a three-year project aimed at Strengthening Pastoralist Resilience to Climate Stress in the arid and semi-arid lands (ASAL) of Kenya. The programme is centered around 3 broad SDGs of: -

1. SDG 2 (Zero Hunger): the project seeks to address the prevailing problem of food insecurity with the target county of Garissa. The project will train the community on better and modern farming practices in the sectors of livestock keeping and small-scale farming hence promoting agro-pastoralism culture in the target communities.


2. SDG 6 (Clean Water and Sanitation): the project seeks to promote access to clean and safe water to the communities in Garissa County through the rehabilitation and solarization of boreholes, rehabilitation of dams, formation, and training of WRMCs and support to the relevant departments.


3. SDG 13 (Climate Action): the project seeks to strengthen understanding and uptake of policies promoting climate smart approaches collective approaches towards. The community in Garissa has for a long time suffered climatic shocks in form of drought, famine, and floods. The projects will ensure that the community are sensitized and accommodated in resilience activities and the department is supported especially in policy making and implementation.

2. Background of Garissa County

Garissa County has one of the biggest livestock markets in NorthEastern Kenya. The livestock traders interviewed by IRK field staff revealed the distance of the market from some of the sub-counties (Lagdera, Balambala, Ijara, part of Fafi and Hulugho) affect their already weakened livestock which are trucking for some days to access the market. In some situation, the livestock market is affected by the drought that pushed animals out of Garissa County, with some crossing the border to southern Somalia thus affecting the market by low volume of the animals. The few animals at the market yield a small amount of money due to poor body conditions of the animals and traders taking advantage of the dire situation of the livestock owners who need the cash during these periods.

According to the Chief Officer of the Livestock Production department of Garissa County, the provision of quality animal healthcare is constrained by a general lack of veterinary capacity in both supplies and limited number of veterinary staff in Lagdera, Balambala, Fafi, Hulugho and Ijara sub-Counties, thus leading to the department’s inability to respond in a timely manner when diseases strike. Mobile healthcare services are also absent. The veterinary services provided by the County government are very limited in view of existing veterinary needs across the whole of Garissa County. Inadequate budget, logistical problems, lack of basic veterinary equipment, shortage of trained personnel and low capacity of the veterinary section are the main sources of weakness of conventional veterinary services. The budget allocated for the veterinary section is expected to cover drugs, vaccines, and operational costs; however, the Chief Officer of the Livestock Production Department of Garissa County indicated that the allocated budget is often completely depleted before the second quarter of the fiscal year. In addition, veterinary clinics are suffering with lack of basic laboratory equipment and kits to diagnose specific cases at clinics or health posts, leading to diagnoses based on inspection of exhibited clinical signs.

Unlike male-headed pastoralist households, a majority of women-headed households have not adopted the coping mechanism of migrating with livestock, mainly due to physical barriers. Consequently, women-headed households have suffered a disproportionate loss of their stocks. Therefore, restocking of strategic dairy-yielding breeds and training on sustainable techniques for fodder production in the changing environmental conditions is pertinent to build capacities and improve food security. Moreover, the process of restocking needs to take into account the fact that many female-headed households lack the nucleus breeding stock, thus requiring special targeting.

Both the national government and other sources indicate that over 70% of the population in Garissa County is said to be living below the absolute poverty line while ground evidence seems to indicate that a large part of the population is disproportionately unsupported by the development processes in operation currently.

Despite the challenges, the social capital around the livestock economy among pastoralists is usually very high as a coping mechanism and remains one of the best options in initiating change and development. Islamic Relief Kenya Program has been working in Garissa County for many years undertaking humanitarian activities to address the various challenges and especially the frequent foods insecurity challenges using both short- and long-term strategic interventions. The SHEEP project proposes a shift in the mode of approach to the food insecurity challenge especially in such fragile environments. Using “market mechanism” type of interventions to slowly bring a more prominent role as a long-term developmental strategy. The market intervention aims at “using the markets to strengthen the local economy, to avoid distortion of the local economy and to enable the target communities to recover from the prolonged draught”.

Preliminary evidence and experiences gained from a number of ongoing projects and activities undertaken by IR Kenya Program in Garissa indicates that there is a strong relationship between Economic security and Food security. The SHEEP Project is expected to contribute to the improvement of local living conditions, access to basic services and in the long run act as a strategic DRR preparedness and resilience and mitigation. In Garissa County, the Livestock sub sector plays an important and pivotal role, both socially and economically. It provides a livelihood opportunity (as a source of food, income, employment) for households that directly depend on Livestock. One distinction of the sub sector is that it is an unstable livelihood option due to recurrent drought that affects most parts of the county where in most instances the dominant livestock sector suffers. Other factors compounding the problem include insecurity, natural resources degradation; natural resources competition which intensifies with time, rigid social cultural factors and the sector is still yet to fully recover from the recent drought effects From an economic point of view, the livestock sub sector supports a dominant industry which is interconnected with both the local, national, and regional economies through its various interconnected functions like Livestock trade, sale of by products like skins/hides, and milk through the Local traders agents and livestock transportation. The livestock sub sector and industry is contributing towards alleviating poverty in the local context through the creation of wealth, increasing employment opportunities and forming the basic framework in supporting other alternative livelihood options outside livestock. Indicators on the ground confirm the livestock sub sector has the potential to contribute more than it’s currently doing were it not for a number of challenges and constraints that national government, county government of Garissa and other agencies and donors seek to address.

IR Kenya Program is interested in undertaking a detailed value chain analysis of the key value chains in the Garissa County for the livestock sub sector, Agropastoral in order to generate Information for use in planning for strategic intervention for the SHEEP Project. This is expected to stimulate its potential in driving the social economic fabric of the county. IRK (in conjunction with other key partners) is interested in developing, designing, and advocating for key strategic interventions in the key sectors now and in the next three years.

The project is targeting Garissa County and intends to reach 25,000HHs in all the sectors.

1. 
   Project Outcomes
   

• Strengthened Community Resilience and Livelihood alternatives for climate adaptation


• Enhanced food security and increased income among the targeted population In Garissa County.


• Improved formal institutions responsiveness to the economic needs of youth and women in Garissa County.

1. 
   Objectives
   

The value chain analysis of the key sector will:

1. Inform IRK, the national government and county government on suitable market-based interventions in further stimulating development of the key sector as an engine of development.


2. Look at the economic viability of Abattoir market model in areas within Garissa County as key livestock market component in Garissa County.


3. Mapping out key market actors from production to the terminal markets based on the key value chains in each of the identified sectors in Garissa County such as. goat, cattle meat value chain and to a lesser extent camel and donkey value chains. The value chain for live camels should also be explored. Identifying the camel terminal markets in Kenya and the region and recommend on its viability and sustainability.


4. Identify potential secondary economic opportunities (livestock/agricultural value addition opportunities) for development that can be undertaken and exploited by women, as well as the youth and men who have” dropped out “from the pastoralist economy’ this should be explored and developed. The consultant should develop or borrow a working model for enabling these vulnerable groups to engage in meaningful business ventures.


5. Make a series of recommendation on maximizing the benefits to the producers and local traders (both formal and market enablers or broker) on opportunities in the Livestock/agricultural sub sectors the recommendation should be very practical and context specific. The recommendation made should be practical avoid pilots or experimental interventions for people whose poverty index is xxx%. A review of livestock marketing co-management model in the face of county government will also be considered (role of livestock market association need clarification)


6. Identify possible issues and strategies that can be used to undertake a successful policy and advocacy strategy in the project area on livestock issues.


7. Review Garissa County Livestock policy and provide a guided implementation matrix as an annex to the report


8. Analyze the potential key livestock value chain market and advice on:
   
   • Inform on the establishment of the optimum livestock reserves (statistics) at any given time, actual carrying capacity of pasture within the county based on production potential as a basis for developing a market development plan.
   
   
   • Livestock diseases affecting livestock marketing and their control
   
   
   • Existing comparative advantages for livestock keeping in Garissa.
   
   
   • Market information access in the terminal markets.
   
   
   • The potential secondary markets for the identified value chains and their segmentations.
   
   
   • Entry/Regulatory requirements for different types of livestock business.
   
   
   • Quality control and other market standards in operations. As a national government function, explore how best can it be done and adhered to in livestock value chains
   
   

The following are the terms of reference for the consultancy. Undertake a detailed market mapping and value chain analysis (VCA) of Garissa livestock sub sector by identifying:

• Key primary chain actors along the two key livestock value chain (Shoats and cattle): (from the Producers and inputs supply to the end consumers) identify who they are, possible numbers, their key functions, key operational challenges, and possible interventions. Included in the analysis of the primary actors indicate the changes in prices along the identified value chains together with the margins and other economic aspects like market share of the key product and its sub products transactions along the value chain. Also, it’s expected the consultant will evaluate the social aspects, such as participation and governance along the chain as well as identify the chain captain(s).


• Key chain supporters/support services (secondary actors) of the chain, their role, and services. Identify challenges experienced in offering/accessing their services. Identify gaps currently existing in-service provision and who can possibly provide such services.


• Examine the regulatory and policy framework that affect both the Garissa County livestock sub sector, and secondary markets, outlining the key provisions, level of implementation and the challenges involved in their implementations. The consultant will recommend strategies that will strengthen advocacy activities and maximize engagement with policy making processes, both locally and at national level.


• Analyze the overall business environment under which the livestock sub sector is operating in Garissa and link this to the national level. Provide SWOT analysis of livestock marketing structures In Garissa County and link to trans county value chains.


• Undertake a desktop research and advice on persons or institutions that will provide basic statistics on the potential of Garissa livestock sub sector: Annual production trends, volumes of trade from Garissa, end market quality requirements( exports, regional and national markets), possible market trends in livestock and its by products, major trends affecting the livestock industry and its by products , the production costs and the economic analysis of the livestock sub sector, pricing and packaging.

Undertake a comprehensive competitive (comparative) analysis of identified key value chains in Garissa versus other competitive production areas in livestock sub sector in Kenya. Identify key USP (unique selling points) of Garissa livestock sub sector key identified value chain products range and identify how local economy can take advantage of USP to compete with other regions in Kenya. In case where Garissa livestock products do not possess USP, advise on how Garissa can competitively market its key livestock products in identified key value chains.

1. 
   Scope of work
   

• Conduct a rapid market assessment to establish gaps, opportunities and strengths which will guide the trainings to be given to the farmers. This will inform us about the type of production, type of technology, type of market target, type of value chain available and other important support to the farmers.


• Carry out a value chain analysis to demonstrate financial viability for each product.


• Construct integrated value chains and describe strategic operations for each product; clearly showing production, marketing and processing steps, thereby identifying incentives for higher production, value addition and marketing.


• Identify opportunities for –and constraints against-enhancing each sub sectors’ growth in terms of higher production, value addition and marketing. The focus is mainly on meeting domestic demands in the short term. Our grower and public private partnership options shall also be elaborated upon.


• Analyze the supply and demand of agricultural products and traders in Garissa County.


• Conduct market assessment for the agricultural producers and traders to determine their customers, markets, and product niche.


• Identify any gaps including regulatory frameworks affecting producers and consumers’ safety.


• Mapping out the current state of play in the market with respect to local skills marketing channels, buyer requirements and opportunities.


• To ascertain different products farmers are producing and seasonality production calendar.


• Establishing the source routes of the products, their quality and quantity and seasonality of their supply


• Identify marketing outlets and trading potential in Garissa County.

1. 
   The consultant will be tasked with:
   

To develop a comprehensive market assessment report and value chain analysis report for each product picked (maximum 3 products) within the agreed timeline.

1. 
   Delivery Strategy
   

The consultant conducting the assessment is expected to utilize methodologies well aligned with the tasks at hand. The methodology will involve collection of primary data from pre-identified producers, cooperatives and GSLA groups. Additionally, as the assessment is market and end user oriented with special focus on commercial viability and gaps, meeting with the following is expected.

 Agricultural producers e.g. farmers, beehive groups, livestock Groups.

 GSLA groups/traders.

 Cooperative societies and value chain Actors.

 Consumers e.g. retailers and wholesalers.

1. 
   Expected Output and Deliverables
   

Expected outputs.

iv. Develop marketing plan for the agricultural products.

v. Analyze constraints and opportunities in the selected value chains and recommend value chains development strategies.

vi. Profile markets for value chain products.

vii. Submission of final assessment report for approval by IRK.

viii. Delivery of the hard and soft copies of the assessment to IRK.

1. 
   

   Key Deliverables

   
   
   1. 
      
      1. The assessment must identify potential productivity and competitiveness improvements that is also related to entrepreneurship and employment.
      
      
      2. An inception report (maximum 5 pages) outlining approach/methodology and execution programme/timetable. This report shall be submitted for review and approval by IRK 2 days after the signing of the contract, but before commencement of the work.
      
      
      3. Data collection tools which shall be submitted within 2 days after acceptance of methodology for review and approval by IRK.
      
      
      4. Draft VCA report which shall be submitted within 5 days after completion of field work
      
      
      5. Presentation of the key findings to stakeholders.
      
      
      6. Final report which shall be submitted within 5 days after stakeholders’ dissemination workshop and shall incorporate both IRK and stakeholders’ inputs.
      
      
   
   


2. 
   

   Timeframe

   
   

The duration of the assignment will be a maximum of 30 days.

Assignment Period

The consultant shall consult and coordinate with the project team to accomplish the assignment successfully. The Consultant is expected to deliver the assignment within the given time unless otherwise adjusted by IRK in writing.

Qualifications and experience requirement of a consultant

CONSULTANT/TEAM QUALIFICATIONS

The consultancy team must be multidisciplinary (with one of the key consultants with livestock industry background) as the analysis is an opportunity to set overall direction of the proposed program. At the minimum, the consultant(s) must possess the following:

1. 
   At least a master’s degree in business related disciplines, development studies or Agri based economics, with a minimum of 5 years demonstrated experience in agribusiness research and/or practice with good understanding of value chain development.
   


2. 
   Demonstrate a good understanding of the Arid and Semi-Arid Areas (ASALs) with practical working experience or research/surveys in such environments.
   


3. 
   Experience of effective interaction with local and national institutions, government departments, and business service providers.
   


4. 
   Be conversant with current business models and practice around livestock sub-sector in the region.
   


5. 
   Practical application of cross cutting themes like gender mainstreaming, and gender competence, M&E, Advocacy.
   


6. 
   Good spoken and written communication skills in English and Swahili.
   


7. 
   Proven experience of using participatory tools and methodology.
   


8. 
   Excellent analytical and report writing skills.
   

Past experiences working on livestock sub sector value chain development will be an added advantage

Firms or consultant(s) who KNOW that they meet the requirements should submit a maximum of 10 paged expression of interest, which should include the following:

1. 
   A suitability statement, including commitment to availability for the entire assignment.
   


2. 
   A brief statement on the proposed study methodology including a detailed work plan.
   


3. 
   A detailed financial proposal, including daily cost per major activity.
   


4. 
   Updated CV that clearly spells out qualifications and experience for key consultant(s). (Annexed and are not part of statement of Expression of Interest in 2 above)
   


5. 
   Contacts of 3 organizations that have recently (preferably last 3 years) contracted the firm/consultant(s) to carry out relevant research/ survey or related work.
   


6. Selection Criteria

The selection of the consultant will be made through collecting individual proposals from eligible consultants. The quality of proposals, relevant working experience, qualification/background, relevant documents, and competitive budget will be considered for review and evaluation. The standard procurement rules of Islamic Relief Kenya will be followed strictly during selection.

1. Application process

The applicant shall submit an expression of interest detailing how he/she will carry out the task. The following are required to be submitted by the applicant:

• Suitability statement showing commitment and required skills to carry out the assignment.


• Financial proposal on the cost of production of the materials.


• Work plans showing timelines of the assignment.

1. Bid Documents

Mandatory Documents Required: -

• Copy of ID of the consultant


• Company Certificate of incorporation


• County Business permit/License


• Valid Tax Compliance certificate


• Company PIN certificate


• Updated CV for the lead consultant / key personnel


• Documented similar work done

NB: - Bidders to ensure conformance to the requirement.

1. Bid Currencies

The bids prices shall be quoted in Kenya Shillings (KES).

Total bid cost shall be inclusive of the following.

• Professional fees


• Data collection


• Report writing, presentation and submission


• Transport and all other related expenditures


• Applicable GOK taxes

1. IRK’s right to accept any bid and/or reject any or all bids

IRK reserves the right to accept any bid and to annul the bidding processes and reject all bids at any time prior to award of consultancy contract, without, thereby incurring any liability to the affected bidder or bidders or any obligation to inform the affected bidder or bidders on the grounds of its action.

1. Evaluation

• IRK will examine the prequalification documents to determine completeness, general orderliness, sufficiency in responsiveness and bid


• The potential consultant shall not contact IRK on matters relating to their bid from the time of opening to completion and official communication sent to them. Any effort by the potential supplier to influence IRK in the evaluation shall result in disqualification.


• Prequalification will be based on meeting the minimum criteria regarding the applicant’s legal status, general and particular experience, personnel, and responsiveness


• Due diligence will be undertaken, and any bidder found to be in breach and has provided false information will be disqualified.

1. Employment of Minors

The consultant shall not employ children in executing the contract. The consultant shall observe international conventions relating to child labor namely the UN Convention No.182 on worst forms of child labor and convention No. 138 on the minimum age for admission to employment.

1. Criminal Act

The consultant undertakes to comply with all applicable laws and to ensure that it does not engage in any kind of criminal activity including but not limited to bribery, fraud, corruption, terrorism and to maintain ethical business practices as well as not to commit any Prohibited Acts defined as: -

• To offer, promise or give any person a financial or other advantage.


• To request, agree to receive or accept any financial or other advantage not expressly provided for as an inducement or a reward for the performance of any function or activity in connection with this Agreement.

And/or

Provided for as an inducement or a reward for the performance of any function or activity in connection with this Agreement.

1. Budget and payment modality

The payment on the awarded contract will be made against outputs and on submission of assessment report. Upon approval of the stated deliverables Islamic Relief Kenya shall process payments for the service provider.

The total budget for this assignment includes expert’s fee, material development cost, draft and final design, review facilitation, printing, and binding.

1. Responsibilities of Islamic Relief Project team

The project team shall organize, monitor, supervise the work, review progress of the work, provide regular technical support and feedback and provide support for engaging stakeholders and constituents as required. They will provide necessary technical assistance for the planning and implementation process. The project team will also establish links with the ministry of cooperative trade and enterprise development and other partners to help provide assistance as required.

1. Expressions of Interest/Bidding Process

• Interested persons are requested to submit their financial proposals and IRK will provide venue, stationeries, and accommodation. The consultant will be paid upon completion of the deliverables as detailed below:


• The interested organizations/Firms or Individuals are requested to submit their proposals in hard copies on or before 7th August 2023 at 11:00 am in our Nairobi Office Tender Box.Submission of interest

1. Submission of interest

Interested and eligible individuals/Firms with sound capacity, relevant experience in similar assignment and duly registered with relevant professional bodies are invited to apply and submit their dated, stamped, signed bids and submitted in sealed envelopes clearly marked with tender reference number on or before Thursday 2.00 Pm on 3rd August 2023. The envelope shall be dropped in the tender box in the reception addressed to;

Procurement Committee

Islamic Relief Kenya

Kirichwa Road, off Ngong Road

P.O. Box 417 - 00202 (KNH)

a) MANDATORY REQUIREMENTS

S No.

Description

Weighting in

Mandatory Evaluation

Pass -5 Fail -1

1

Certificate of incorporation

PASS/FAIL

2

Registration with the county government/valid business permit

PASS/FAIL

3

Active KRA PIN

PASS/FAIL

4

Valid Tax compliance

PASS/FAIL

5

Copy of ID/Passport for Company Owner/Director

PASS/FAIL

6.

CR12

PASS/FAIL

7.

Fully filed tender dossier

PASS/FAIL

8

Serialization using tab machine

Pass/FAIL

Total

PASS/FAIL

NB:

▪ Bids lacking any of the documents listed as Mandatory will lead to automatic disqualification and shall Not be considered for both technical and financial evaluation.

b) TECHNICAL ANALYSIS

No.

Description

Score

1

Brief Company Profile with verifiable physical location/address

20

2

Evidence of Past Experience in similar work done the past three years (Minimum three signed & stamped contracts/LPOs)

20

3

Cv for the lead technical person

10

4

Detailed workplan

10

5

Number of years in operation (at least 5years of existence)

20

6

List of Referees with their contact details (Name, telephone number, Email, location, and Organization)

10

7

Tender Envelopes Sealed, clearly marked with company details & stamped

10

Total

100

PASS MARK – 80%

NB: Bids that will not score 80% and above in the technical analysis will automatically be disqualified and shall not be considered for financial evaluation.

Tender Schedule

Task

Date

Advertising of Tender: 24th July 2023

Closing of Tender: 7th August 2023 at 11:00 am

Opening of Tender: 7th August 2023

Evaluation: 8th August 2023

Award: 10th August 2023

Note: Tenders will be opened immediately after the deadline date and time specified above. Tenders will be publicly opened in the presence of the Tenderers' designated representatives who choose to attend at the address below

The subject of the email must indicate the tender title, tender reference, and Location quoted as follows.

Note: IRK reserves the right to extend the tender publication period, revise the opening and evaluation and period.

Tender Title: Consultancy Service for Conduct rapid market analysis and value chain for various agricultural and livestock products Garissa County.

Location quoted for: As per attached tender reference table.

MANDATORY QUESTIONAIRE

A: Organization and Contact Details

Full Name of Organization

Date of Registration

Registration Certificate Number

Street

Road

Address

Code

Town

Email

Telephone No.

PIN No.

Name of Parent Company

Type of Organization

A Public Limited

Company

A Limited Company

A Limited Liability Partnership

Other Partnership

Sole Trader

Other (Please Specify)

Name of Owners

Name

ID/Passport No.

Nationality

DETAILS FOR CONTACT PERSON

Contact details for enquiries about this PQQ/Business Issues

Name of Staff

Address

Post Code

Town

Phone

Mobile

Email

2.5

Stamp:

How to apply

Submission of interest

Interested and eligible individuals/Firms with sound capacity, relevant experience in similar assignment and duly registered with relevant professional bodies are invited to apply and submit their dated, stamped, signed bids and submitted in sealed envelopes clearly marked with tender reference number on or before Thursday 2.00 Pm on 3rd August 2023. The envelope shall be dropped in the tender box in the reception addressed to;

Procurement Committee

Islamic Relief Kenya

Kirichwa Road, off Ngong Road

P.O. Box 417 - 00202 (KNH)