Tender Title: Hiring a Consultant / Consultancy Firm to Conduct a Feasibility Study and Business Plan Development for a Maize Processing Unit and the Design and Development of a Detailed Bill of Quantities (BoQ) for Machinery and Equipment for the NYABICWAMBA Farmer’s Cooperative

Location: Eastern Province, Gatsibo District, Gatsibo Sector, Nyabicwamba Marshland

Client: DUHAMIC-ADRI

Deadline for submission of bids: October 25 ,2024

Bid submission Time: 02:00PM

Bid Opening Time: 02:30PM

Context and background

Brief description of Climate-Smart Agriculture Project

Since July 2024, DUHAMIC-ADRI has partnered with the United Nations High Commissioner for Refugees (UNHCR) through a signed Partnership Framework Agreement (PFA) to implement Phase II of the Climate-Smart Agriculture and Market Development for Enhancing Livelihoods of Refugees and their Host Communities in Rwanda.

 The Climate-Smart Agriculture initiative aims to improve food security and self-reliance for 2,036 beneficiaries (732 refugee and 1,304 host community households, including 1,091 women and 945 men). By 2026, this project will benefit over 7,851 family members through climate-smart agricultural practices and a market development approach.

Specifically, the partnership focuses on contributing to achieving the following outcomes of the project: Outcome 1: Increased Agricultural Productivity and Outcome 2: Increased Household Income.

Introduction

The Nyabicwamba Farmer’s Cooperative has identified a critical need for value addition to maize production in the region. Establishing a maize processing unit will enhance the cooperative's ability to process raw maize into finished products, creating market-ready products such as maize flour, bran, and other by-products. This concept note outlines the need for a feasibility study, the development of a business plan, and the detailed design of the processing unit with a comprehensive Bill of Quantities (BoQ) for machinery and industrial equipment.

Objectives

The main objectives of this study are:

• To conduct a comprehensive feasibility study to assess the viability of establishing a maize processing unit.
• To develop a business plan that will guide the operation and management of the processing unit.
• To design the maize processing unit layout, ensuring it meets the required standards and operational efficiency.
• To develop a detailed BoQ, including specifications for the necessary machinery, industrial equipment, and other infrastructural needs.

Justification

Nyabicwamba farmers face challenges in accessing markets and achieving fair prices for their maize due to limited value addition. By establishing a maize processing unit, the cooperative will:

• Increase the economic returns for farmers by offering processed maize products.
• Create jobs within the community.
• Strengthen the cooperative's bargaining power in the maize value chain.
• Improve food security by providing maize flour to local and regional markets.

A feasibility study will ensure that the maize processing unit is technically and financially viable. Additionally, the business plan will provide a roadmap for sustainable operations, while the design and BoQ will ensure proper budgeting and implementation of the necessary infrastructure and equipment.

Scope of Work

Feasibility Study

• Market analysis: Assessment of demand for processed maize products in the local and regional markets.
• Technical assessment: Evaluation of production capacity, processing technology, and industrial equipment needs.
• Financial analysis: Determining start-up costs, operational expenses, profit margins, and break-even analysis.
• Risk analysis: Identification of potential risks and mitigation strategies, including environmental and regulatory considerations.

Business Plan Development

• Market strategy: Define the target market, pricing strategy, distribution channels, and marketing plan.
• Operational plan: Develop a detailed operational plan outlining the production process, workforce requirements, and facility management and maintenance plan; compliance to different national standards for safety;
• Financial plan: A detailed financial projection covering capital investment, operational costs, revenue forecasts, and financing options.

Design and BoQ Development

• Processing unit layout: Design a layout for the maize processing unit that optimizes workflow, safety, and efficiency.
• Machinery and equipment: Identify and specify the types of industrial machinery required for maize processing, such as milling machines, grain cleaners, packaging machines, and other auxiliary equipment.
• BoQ: Develop a detailed Bill of Quantities, including costs for machinery, installation, infrastructure (electrical, water supply),

Expected Deliverables:

The consultancy firm/consultant is expected to deliver the following but not limited to:

• A detailed feasibility study report, assessing the technical, financial, and market viability of the maize processing unit;
• A comprehensive business plan to guide operations and ensure financial sustainability;
• A complete design and layout for the maize processing unit, with a detailed BoQ for all machinery, equipment, and infrastructure.

Required consultant qualification

This consultancy is open to individual National/ International or a team of expert consultants with special knowledge and research expertise in Market Systems Analysis, value chains and Livelihoods. The Consultant is expected to have the following experience and qualifications:

1. The team composition should have team leader having a minimum of a master’s degree in Rural Development, Nutrition, Food Science, Business Administration
2. Main key staff in construction of food processing plants, and installation of food processing machinery.
3. The provision of comprehensive CVs of team composition is required with their signed commitment to perform this task as the change of key staff will require the prior approval from DUHAMIC-ADRI.
4. The consultant or consultancy firm must have At least 5years of proven experience in market research, feasibility studies, business planning, and Food Systems sector.
5. Previous experience in conducting research and assessments, feasibility studies and developing marketing strategies and business plans.
6. Proficient user of English and Kinyarwanda
7. Strong analytical and report-writing skills with the ability to present complex information clearly and concisely.
8. Excellent communication and stakeholder engagement skills, with a proven ability to work with government bodies, private sector actors, and cooperatives.
9. Ability to work independently, meet tight deadlines, and deliver quality outputs.
10. Familiarity with the Rwandan food systems and understanding of local agricultural markets, including agribusiness SMEs.
11. Knowledge of Food Systems and demand in local and international markets is a plus.
12. Familiarity with sustainable agricultural practices and value chain development for high value crops is an added advantage.

Application Requirements:

1. A detailed cover letter to the Executive Secretary of DUHAMIC-ADRI; expressing the consultant's interest in the assignment and summarizing relevant expertise and experience. The letter should clearly indicate availability to complete the consultancy within the specified timeline.
2. A comprehensive CV detailing education background, work experience, relevant publications or projects completed, and a list of Food Systems-related consultancies previously undertaken.
3. A technical proposal that outlines the consultant’s understanding of the assignment, approach and methodology to be used for conducting the feasibility and market study and developing the business plan.
4. Proposed timeline for completing the feasibility and market study and business plan.
5. Three Certificates of Good completion of previous consultancies with their contracts particularly in Development of Market strategy, Feasibility Studyand Business Planning Development
6. Contact details of three professional references who can attest to the consultant's experience and expertise in similar assignments.
7. A detailed financial proposal that includes consultancy fees, travel costs, and any other anticipated expenses. The financial proposal should be clearly itemized.

The consulting firm/consultant has to submit the following administration documents:

• A cover letter addressed to DUHAMIC-ADRI Executive Secretary
• A Valid RRA Tax Clearance Certificate,
• A Valid RSSB Contribution Clearance Certificate,
• A Good Standing Certificate issued by RDB
• RDB Registration Certificate
• A VAT Registration Certificate
• A Proof of using EBM

Evaluation Criteria

Timeline

The assignment is expected to be completed within 30 calendar days, with the following key milestones:

• Feasibility Study: 15 days
• Business Plan Development: 10 days
• Design and BoQ Development: 5 days

Monitoring and evaluation

Mechanisms for monitoring progress and evaluating the consultant's performance will be established, ensuring adherence to timelines and quality standards. Any deviations from the work plan or challenges encountered will be addressed in a timely manner.

The consultant's performance will be evaluated based on the quality and timeliness of deliverables, adherence to the proposed methodology, and effectiveness in meeting the project objectives. Feedback from project stakeholders will also be considered in the evaluation process.

Ethical considerations

The consultant is expected to adhere to ethical principles and guidelines throughout the duration of the consultancy, ensuring the confidentiality, integrity, and respect of all stakeholders involved.

Confidentiality and data protection measures

All data collected during the consultancy will be handled with strict confidentiality and used solely for the purposes of the study. Any sensitive information obtained will be anonymized and stored securely to prevent unauthorized access.

Safeguarding and Anti-Corruption clauses

The Consultant will be responsible to observe and respect the DUHAMIC-ADRI code of conduct, ethical, protection and safeguarding policies and will hire and retreat with dignity, transparency and equity all staff and team members in different levels including business mentors and coaches.

DUHAMIC-ADRI treat all people with dignity and respect and takes a zero tolerance on harassment, harm, sexual-abuse, exploitation, child labor, and human trafficking and any other conduct that is discriminatory or disrespectful to others. DUHAMIC-ADRI don’t tolerate any form of corruption.

During the execution of this contract, the Consultant and its staff will be bounded by DUHAMIC-ADRI Values and approved polices where among them are the following:

• DUHAMIC-ADRI Safeguarding and Child protection policy
• DUHAMIC-ADRI Prevention of Sexual Harassment, Exploitation and Abuse at work policy.
• DUHAMIC-ADRI Gender and non-discrimination policy.

Moreover, the Consultant has to ensure the regular payment of its staff to avoid complaints and the negative side effect for DUHAMIC-ADRI image and its partners. DUHAMIC-ADRI will have rights and responsibilities to monitor and crosscheck if the terms and conditions for the consultancy team members are followed and mutually respected.

At any time DUHAMIC-ADRI has the rights to check whether the organization/company complies with the safeguarding and protection procedures and take an appropriate action.

Communication protocols

Regular communication between the consultant and the project team will be maintained through email, phone calls, and virtual meetings as necessary. Any changes to the work plan or unforeseen issues should be communicated promptly to ensure timely resolution.

Coordination with project stakeholders

The consultant will coordinate closely with project stakeholders, including government agencies, local communities, and partner organizations, to ensure their active participation and buy-in throughout the consultancy process.

Submission of applications

Interested firms/consultants with relevant experiences and who meet the above criteria should submit their technical proposal with their proposed methodology of implementing the assignment, experiences and three referees, work plan, and CVs of the Technical Team; a financial proposal detailing the professional fees, reimbursable, and VAT;

Submission Requirements:

• Bidders are required to submit their offers in one main sealed envelope. This main envelope must contain two separate sealed envelopes:
  1. Envelope A: Technical Proposal
  2. Envelope B: Financial Proposal

Submission deadline is October 25, 2024 at DUHAMIC-ADRI Head Office located in Niboye Sector-Kicukiro District at 02:00PM

Opening of Proposals:

Technical Proposal Opening:

The technical proposals (Envelope A) will be opened first in a public session on October 25,2024at DUHAMIC-ADRI Office at 02:30PM

• During this session, only the technical proposals will be evaluated based on the criteria outlined in the bid documents and the financial proposal will remain sealed and returned in the bid submission box

Financial Proposal Opening:

• Only bidders whose technical proposals meet the required standards and are shortlisted will be invited to the opening of the financial proposals (Envelope B).
• The financial proposals of the shortlisted bidders will be opened in a separate public session. The date and time of the financial proposal opening will be communicated to the shortlisted bidders.
• Bidders not shortlisted in the technical evaluation will not have their financial proposals opened, and their financial proposals will be returned unopened.

Confidentiality:

All information provided by bidders will be treated as confidential. The procurement process will be conducted in a transparent manner to ensure fairness and competitiveness.