Request for Proposal
TRANSFORMING EASTERN INDIA’S ECONOMIES THROUGH INNOVATIVE RURAL
BUSINESS HUBS
I. Summary of Deadlines
Release of request for proposal
Confirmation of interest due by e-mail and
questions
Proposals due
Selection of short list
Conclusion of process
Contract letter issued
May 8, 2013
May 13, 2013
May 17, 2013
May 21, 2013
In May, 2013
In May, 2013
Note that CII reserves the right to modify this schedule as needed. All parties will be notified of any
changes simultaneously by email.
II. CII Statement of Business
The Confederation of Indian Industry (CII) works to create and sustain an environment conducive to the
growth of industry in India, partnering industry and government alike through advisory and consultative
processes.
CII is a non-government, not-for-profit, industry led and industry managed organisation, playing a
proactive role in India's development process. Founded over 117 years ago, it is India's premier business
association, with a direct membership of over 7100 organisations from the private as well as public
sectors, including SMEs and MNCs, and an indirect membership of over 90,000 companies from around
250 national and regional sectoral associations.
With 63 offices including 10 Centres of Excellence in India, and 7 overseas offices in Australia, China,
France, Singapore, South Africa, UK, and USA, as well as institutional partnerships with 223 counterpart
organisations in 90 countries, CII serves as a reference point for Indian industry and the international
business community.
III. Project Background
1
A. Project Background:
Project Name: Transforming Eastern India’s Economies through Innovative Rural Business Hubs
Timeline: November 1, 2012 to October 31, 2014
Development Partners: CII FACE and USAID
Objectives:
I. Improving market efficiency by generating procurement linkages within value chains.
II. Increase agriculture productivity by the increased use of agri-innovation including technology and
processes and service for improved management.
III. Human capacity to strengthen responses to market opportunities to improve market
Competitiveness
IV. Integration of stakeholders across the value chain will improve productivity and market development
(though Innovative business models and balanced market systems).
Background: The Confederation of Indian Industries - Food and Agriculture Center of Excellence (CIIFACE) has collaborated with the United States Agency for International Development (USAID) for a
period of two years to improve agricultural productivity and output in eastern India, through the
establishment of Rural Business Hubs (RBH).
The RBH envisioned in this activity, will function as a one-stop aggregation point for the integration of
all elements across a value chain. The RBH innovation concept implicitly recognizes that converged
amalgamation of linked activities require coordination to ultimately achieve sustainable impact. RBH’s
may manifest as physical, brick and mortar establishments in their deployment or virtual aggregation
points, using Information Communication Technologies (ICT). While RBH models exist in various
forms, common missing elements in all of them are value chain gaps like procurement linkages. Although
RBH models increase market access to quality-assured agri-inputs and contribute to market transparency,
they fall short of profitability and therefore are unsustainable unless new, innovative business models are
developed to better harness fragmented resources and address supply and demand issues across key value
chains.
CII FACE will strengthen the private sector role in catalyzing agriculture productivity while integrating
broader participation in select agriculture value chains in order to increase farm incomes through
inclusive economic growth.
Under this activity CII FACE will help improve productivity of small and medium landholders and
increase income levels through inclusive growth by taking successful market-driven RBH models and
innovations to scale. CII FACE will build upon the RBH investments established through the
Consultative Group for International Agriculture Research (CGIAR) Collaborative Research Support
Programs, foundations and donor groups to harness opportunities for growth such as in livestock,
aquaculture, horticulture and tree crops and other income support activities. These will be integrated with
agricultural best practices in terms of cultivation technologies, relevant and correct input supplies, critical
mass generated in terms of numbers of participant farmers and aggregated land holdings, optimal
utilization of agricultural infrastructures including financial support and market linkage with procurement
organizations
To accomplish this, CII FACE RBH will support the strengthening of value chain backward linkages to
farmers in order to improve farmer capacity and productivity. CII FACE RBH will also support the
strengthening of forward linkages to markets in order to improve post- harvest management including
food processing, wholesale and retail marketing and distribution systems. The key to this approach is the
identification of buyers to procure products identified, and specifically address top of the supply chain
2
requirements. This will require the identification of location-specific priority interventions, where each
hub will serve as the convening platform that brings together a mix of resources to address forward and
backward linkages. The mix of resources will be determined by the relative advantages and expertise
from both the private and public sectors to ensure the integration of the key components required for
creating an economical and sustainable value chain. This will include supply of agricultural inputs like
seed, fertilizer, pest management and mechanization, mechanization services, extension services, finance
and marketing services, agro-processing, and marketing and procurement systems
CII FACE RBH will develop business models to address gaps in the agriculture value chain within the
context of immature, developing and mature markets.
IV. Overall Context and Purpose of RFP
Overall Objective: Strengthening value chain for selected commodity in the West Bengal, Orissa
and Bihar.
CII intends to partner with private, public players, financial institutions and NGOs under five main broad
activities as listed below to strengthen value chain, human capacities, establish procurement linkages,
improve productivity and promote innovations and use of technology.
1. Access to Markets:
Procurement Linkages: Establish procurement linkages to calibrate production in line with
demand and provide an opportunity for economic benefits for the local economy. For example
organisations that could provide support in post harvest systems with wholesale, retail
procurement and distribution systems
Input Supply: Input support from private sector will be in form of seeds, farm equipment,
fertilizers, agrochemicals, mechanisation, pesticides, irrigation, waste management and others.
The participating organisations are expected to help set up demo farms, outreach extension and
training for farmers.
2. Value chain assessment: Provide support in undertaking value chain assessments.
3. Technology Service: Facilitate introduction and adoption of innovations and technologies that
help improve productivity and farmer’s incomes. For example, use of technology for price
discovery, weather information and other similar such services. These services could include
setting up of ICT solutions, monitoring creation of demo farms, on farm productivity across the
value chain, productivity trainings and trainings to hub centres.
4. Extension and Capacity Building: Rural Business hubs will deploy innovation and innovative
sustainable business models to decrease opportunity cost that will result in increased productivity
as a result of better agriculture resource and management practices. For example organisation
who could provide FPO mobilization and need identification, training on productivity
improvement, harvesting methods, post harvest and waste reduction, weather and crop protection
etc.
5. Access to Finance: Provide access to finance to farmers for purchase of inputs and other related
services. For example, financial organisation who could conduct financial literacy training,
provide innovative credit instruments to farmers, includes purchase inputs, weather insurance ,
working capital requirement etc.
3
Interested organizations may submit proposals to contribute to ACTIVITY # 2 i.e. Baseline Study and
Supply Chain Assessment
NOTE: THIS RFP IS TO INVITE PROPOSALS FROM ORGANISATIONs WHO WOULD LIKE
TO BE A PART OF A CONSORTIUM TO CONTRIBUTE TO ACTIVITY NUMBER TWO i.e.
VALUE CHAIN ASSESSMENT. ORGANISATIONS HAVING EXPERIENCE IN
CONDUCTING VALUE CHAIN STUDIES ARE INVITED TO SUBMIT THEIR PROPOSALS
IV. Scope of Work and Deliverables – BASELINE STUDY AND SUPPLY CHAIN ASSESSMENT
A. Scope of Work:
Activity: Value Chain Analysis
Objective: Conduct value chain analysis for Banana and Vegetables value chain in West Bengal,
and Bihar respectively.
Timeline: Within two months from the time of agreement.
Area: North Eastern Region - West Bengal, and Bihar
Profile of Organizations: Research organization, educational institutions
Commodity: Being identified in each state through parallel process
Value Chain activities: The Value Chain analysis looks at the whole process of effective utilization of
resources to create a competitive advantage that would provide a lower cost and better improved profit
margin. Value addition tends to create the following:
 Identifying the specific commodities for value chain
 Economies of scale
 Capacity utilization
 Linkages among activities including vertical integration
 Learning process
 Interrelationships among business units
 Marketing outlets
Value chains encompass the full range of activities and services required to bring a product or service
from its conception to sale in its final markets—whether local, national, regional or global. Value chains
include input suppliers, producers, processors and buyers actively supported by a range of technical,
business and financial service providers.
The main purpose of this intervention is to carry out an analysis and assessment of potential value chains
and linkages in the agricultural and agro-based sector. This would create a platform for development of a
blue-print for strengthening of value chain from farm to fork activities.
Expected Role: The organization is expected to help us address the following questions and provide
information against required parameters under baseline section below to meet project results
4
1. Mapping the value chain





Mapping the value chain of existing private sector
Map backward linkages that are economically viable
Map Farmer organisation lead farmers, self-help groups, federations and societies
Map potential forward linkages to markets including post-harvest production and
processing services
Chain stakeholders: visualize the relations between actors and stakeholders:
i. Actors and their functions
ii. Supporters and their functions
iii. Influencers and their functions
iv. Disaggregated data of beneficiaries by male/female, small holder farmer vs.
wealthier medium sized farm holders
2. Bottlenecks along the value chain
Covering at least:
 What are the market opportunities? For which products and from which markets is there a
demand?
 What are the key bottlenecks preventing strengthening of value chain?
 Are these bottlenecks critical? Can these bottelnecks be addressed in a reasonable
timeframe?
 What bottlenecks can be solved by CII FACE? What are the resource requirements to
address these bottlenecks?
 Summary: What are the main constraints (cluster constraints to max 8 key issues)?
3. Baseline information
The key results that project is committed to deliver are:
 Increased net incomes (on and off farm) for households engaged in the target value added
market chains
 Increased productivity and decreased opportunity cost for improved productivity as a
result of better agriculture resource and management practices
 Decreased post harvest losses for targeted value chain
 Increased application of post harvest market information.
 Access to financial and risk management products by household in target population
Baseline study will collect information on following suggested parameters but not limited to only
these one. The questionnaire can be finalized after the finalization of agreement with the agency






5
(Estimated) number of farmers active in the chain/product groups
Estimated income levels
(Estimated) value addition activities at each step of the value chain
Current productivity volumes and amounts for the selected value chain
Post Harvest loses
Trends in supply and demand
 Data on exiting vs. required financial assistance and actors

4. Deliverables:
What steps are needed to ensure that the value chain performs well?








Proposed CII activities to support value chain for selected commodity.
How much increase in income is expected to result from the CII FACE intervention
(target and attribution estimation)?
How much increase in productivity is expected to result from the CII FACE intervention
How much decrease in post harvest loses is expected to result from CII FACE
interventions
What are the kind of financial instruments and risk management strategies are required to
ensure strengthening of value chain
What are opportunities for synergies due to integrated approach/alliances with other
organisations actively supporting that value chain?
Risk analysis
Baseline study results with suggested indicators for measuring the outcome after two
years of the project
Responsibilities of the Bidder
The chosen contractor will be responsible for organizing and managing the logistics of conducting the
fieldwork, including the provisioning of a team of interviewers capable of administering the
questionnaires in local language; the provision of transport and lodging of the teams of interviewers
during the field work; processing, conducting basic analysis and presenting in a packaged report to CII
FACE for further analysis and reporting. The interviewers and their supervisors should be able to
communicate fluently in (local language). All interviewers need to be able to read and write in local
language as well.
The bidder need to specify survey methods along with details of the sample for each survey instrument which they
usually consider appropriate.
Responsibilities of CII FACE:
1. CII FACE will provide overall management, technical inputs as and when required, particularly in the
areas of finalizing the study instrument, and guiding the analysis and baseline study at several points.
2. Provide a list of and a map of project sites in three regions
3. Provide introduction of field investigators to the sites, and on-site support to them through CII FACE
field offices.
V. Costs
Provide itemized costs for the total scope of this project, based on the scope of work and deliverables
outlined in Section IV.
The final scope of work may be subject to negotiation; however, bidder selection will be made against the
original scope of work. Bids should follow the following budget format: (change, add, or delete items in
the list as required.)
6
A line item budget, in Indian rupees, is to be presented with Unit Rates, Person Days and Timelines as per
the sample budget format attached, showing anticipated costs of the proposed research activities. All
projected costs must be in accordance with the organization’s standard practices and policies.
Table 1: Sample Form for Budget Details by Line Item
Sr. No
1.
Particulars
Personnel Costs
Unit
# of Units
Rate
Amount
Cost/activity/ for person
(specify daily rate X # days)
Others (specify)
Sub-total
2.
Travel and Transportation
Mode/# and cost per trip
Local expenses
Others (specify)
Sub-total
Training of Field Teams for Data
Collection
# Interviewers X rate per day during training
Venue hiring/food and drink costs
Vehicle hire
Per diems
Others (specify)
Sub-total
Data Collection and De-briefing in the
Field
3.
4.
Sub-total
Any other
6.
Sub-total
Tax
GRAND TOTAL
Offers may include additional line items as and where necessary, and with appropriate justification in
the Budget Notes.
7
VI. Overall Qualifications
Provide information on your overall qualifications, including
 Profile of relevant corporate qualifications.
 Professional expertise with qualitative and quantitative aspects of value chain and baseline
analysis.
 Qualifications of key members of the proposed project team (attach CVs and provide details of
back-up/standby teams).
 Number of years in business.
 If your company has more than one location, please indicate these qualifications for the site that
is responding.
VII. Proposal Evaluation Criteria
The following is a list of significant criteria against which proposals will be assessed. The criteria are
listed in order of priority, however they are not weighted.
CII FACE anticipates issuing a firm fixed-price sub-agreement to the offeror whose proposal is most
advantageous and cost-effective. A fixed-price contract calls for one price, not subject to any adjustment
based on the offeror’s cost experience in performance of the contract. This fixed-price is established at
the outset, when the contract is negotiated and signed. Proposals will first be evaluated from a technical
standpoint. Those proposals that are considered to be technically acceptable shall then be evaluated in
terms of cost. Each technical proposal will be evaluated based on evidence of the following items:
CRITERIA
TECHNICAL CRITERIA (35 points)
Proposals reflects understanding of project and the scope of work in the RFP
Proposal illustrates knowledge of value chain analysis and baseline survey methods
along with details of the sample for each survey instrument which is usually considered
appropriate
Clearly demonstrates knowledge and understanding of the value chain analysis and
baseline questions and objectives across the value chain and can justify the selected
methodology for meeting the stated objective(s) as outlined in the SOW
Experience conducting value chain analysis and baseline studies quantitative and
qualitative analysis
Sub Total
QUALIFICATIONS and EXPERIENCE (30 points)
Qualifications and Experience of the project team
Experience of the organization in similar work
Experience of working in East India and working experience with other value chain
players
Sub Total
WORK PLAN (20 points)
Clear outline of steps and activities to achieve deliverables
Having required personnel on the team
8
Scores
8
8
9
10
35
10
10
10
30
7
6
Capacity to perform the work within the desired timeline
Sub Total
COST (15 points)
Appropriateness of the budget to the plan suggested vis-à-vis institution/staff experience
and qualification
Sub Total
GRAND TOTAL
7
20
15
15
100
Note: CII reserves the right to include additional criteria.
VIII. Instructions for Responding
A. CII contacts:
Procurement Contact: Tarun Tandon (tarun.tandon@cii.in)
Technical/Program Contact: Meetu Kapur (meetu.kapur@cii.in)
D. Proposals due: May 17, 2013
Completed proposals in the format below should be submitted by email to the contacts listed above. The
subject line of the email should read: Transforming Eastern India’s Economies Through Innovative
Rural Business Hubs






Organization Description
Period of Performance
Methodology of contribution to the objectives as outlines in section IV
Work plan and deliverables
Manpower required to conduct the value chain analysis and baseline study
Budget including contributions (in cash or kind)
E. Selection of short-list
CII reserves the right to select a short list from the bids received. CII has the option to interview and
discuss specific details with those agencies who are on the short-list.
F. Conclusion of process
Applicants will be notified of CII’s decision in May 2013. Final award is subject to the terms and
conditions included in this solicitation, as well as successful final negotiations of all applicable terms and
conditions affecting this work.
IX. Terms and Conditions of the Solicitation
A. Notice of non-binding solicitation
CII reserves the right to reject any and all bids received in response to this solicitation, and is in no way
bound to accept any proposal. All the work produced under this RFP will be sole property of CII FACE.
B. Data
All the raw and final data collected by the organization will be handed over to CII FACE in soft and hard
copies.
9
C. Confidentiality
All information provided by CII as part of this solicitation must be treated as confidential.
Proposals, discussions, and all information received in response to this solicitation will be held as strictly
confidential, except as otherwise noted.
D. Communication
All communications regarding this solicitation shall be directed to appropriate parties at CII indicated in
Section VIII. A. Contacting third parties involved in the project, the review panel, or any other party may
be considered a conflict of interest, and could result in disqualification of the proposal.
E. Acceptance
Acceptance of a proposal does not imply acceptance of its terms and conditions. CII reserves the option to
negotiate on the final terms and conditions. We additionally reserve the right to negotiate the substance of
the finalists’ proposals, as well as the option of accepting partial components of a proposal if appropriate.
F. Right to final negotiations
CII reserves the option to negotiate on the final costs and final scope of work.
G. Third-party limitations
CII does not represent, warrant, or act as an agent for any third party as a result of this solicitation. This
solicitation does not authorize any third party to bind or commit CII in any way without our express
written consent.
10